Amendments to the Transitional Operating Agreement between the Minister of the Environment, Conservation and Parks and the Resource Productivity and Recovery Authority

ERO number
019-2886
Notice type
Regulation
Act
Resource Recovery and Circular Economy Act, 2016
Posted by
Ministry of the Environment, Conservation and Parks
Notice stage
Decision
Decision posted
Comment period
February 12, 2021 - March 29, 2021 (45 days) Closed
Last updated

This consultation was open from:
February 12, 2021
to March 29, 2021

Decision summary

We finalized the amended and restated Operating Agreement between the Minister of the Environment, Conservation and Parks and the Resource Productivity and Recovery Authority. The amendments will help ensure transparent and effective oversight for Ontario’s producer responsibility model and will address necessary administrative changes.

Decision details

Ontario is making changes to the Operating Agreement between the Minister and the Resource Productivity and Recovery Authority (RPRA) to ensure that RPRA provides transparent and effective oversight for our producer responsibility model.

The amended and restated Operating Agreement (OA) came into effect on April 23, 2021.

The ministry considered all comments received and proceeded with the proposed amendments identified in the proposal notice as well as minor administrative changes. These changes will:

  1. Ensure transparent and effective oversight for Ontario’s producer responsibility model
  2. Address administrative changes

1. Changes for enhanced oversight

To achieve transparent and effective oversight, the OA includes amendments that will:

  • increase ministerial oversight of RPRA
  • enable industry input into RPRA’s business planning process
  • improve RPRA’s financial transparency
  • further define RPRA’s functions
  • ensure data privacy

2. Administrative changes

The OA contains the following types of administrative changes:

  • removing out-of-date terms and phrases
  • adding clarification
  • improving operational flexibility

Read the amended and restated Operating Agreement 

Comments received

Through the registry

6

By email

5

By mail

0
View comments submitted through the registry

Effects of consultation

What we heard

The ministry received eleven submissions from municipalities, industry associations that represent producers, service providers and non-governmental organizations:

  • industry associations that represent producers generally supported the proposed amendments to increase ministry oversight, enhance financial transparency and increase industry input
    • some associations made additional recommendations to further restrict RPRA’s role and budget
  • municipalities, service providers and non-governmental organizations support RPRA being a well-resourced, independent authority
    • some do not support proposed amendments that could interfere with RPRA’s ability to manage effective compliance and enforcement or that would increase the role of industry in RPRA’s business planning process

The ministry considered all comments received and made minor administrative changes to the Operating Agreement to ensure consistency and provide clarification.

The ministry did not implement the other recommendations provided by stakeholders because:

  • the suggestions were outside of the scope of the Operating Agreement and/or would require legislative changes
  • the suggestions were already addressed either in the Operating Agreement or through other channels (e.g. Minister’s direction or legislation)
  • the suggestions were not aligned with the ministry’s policy objectives under the Waste-Free Ontario Act, 2016

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Original proposal

ERO number
019-2886
Notice type
Regulation
Act
Resource Recovery and Circular Economy Act, 2016
Posted by
Ministry of the Environment, Conservation and Parks
Proposal posted

Comment period

February 12, 2021 - March 29, 2021 (45 days)

Proposal details

Background

On March 27, 2017, the Minister entered into the Transitional Operating Agreement (TOA) with the Resource Productivity and Recovery Authority (RPRA). This is required under the Resource Recovery and Circular Economy Act, 2016 (RRCEA).

The operating agreement sets out matters relating to RPRA’s carrying out of its objectives, including its governance and operations, such as,

  • setting out the accountability framework between the Minister and RPRA
  • clarifying the administrative, financial, working and reporting relationships between the ministry and RPRA
  • clarifying the roles, duties and responsibilities of the Minister and RPRA in relation to the RRCEA and the Waste Diversion Transition Act, 2016 (WDTA)
  • promoting openness and transparency to serve the public interest

The RRCEA also requires that the Minister and the RPRA board of directors (“board”) review the TOA within one year of the full 11-member board being in place and determine whether amendments are needed. Prior to November 1, 2018, it was determined that amendments to the TOA were required. Once amended, the TOA will be restated as the “Operating Agreement”.

Proposed changes to the Transitional Operating Agreement

Through our review of the TOA, the ministry and RPRA determined that two types of amendments are required to:

  1. Ensure a transparent and effective oversight regime for producer responsibility in Ontario
  2. Address necessary administrative changes

1. Proposed changes for enhanced oversight

In order to achieve the following objectives, the ministry is proposing the following types of amendments:

  • increasing ministerial oversight through activities such as establishing formal quarterly reporting (see new proposed section 9.11 in the attached document) and requiring more time for the ministry to review key planning documents (see proposed edits to section 9.1)

  • increasing industry input by establishing advisory councils (see new proposed section 9.8 in the attached document) and updating board qualifications to include industry-related skills, but not allowing direct representation of regulated parties (see proposed edits to section 7.1 in the attached document)

  • improving financial transparency through the following types of requirements:
    • RPRA to disclose compensation of its board and specific employees (see new proposed section 9.9 in the attached document)
    • RPRA to provide summaries related to procurement decisions (see new proposed section 9.10 in the attached document)
    • RPRA to identify in their annual report the amounts drawn on loans and credit facilities, and their purposes (see proposed edits to section 2.5 of Schedule D in the attached document)
    • RPRA to demonstrate they have taken a cost-efficient and cost-effective approach to deliver on their mandate (see proposed edits to section 1.5 of Schedule D in the attached document)
    • RPRA to provide updates on its fee-setting approach (see new proposed section 10.4 and proposed edits to Schedule A in the attached document)

  • defining RPRA’s functions by clarifying that RPRA shall not carry out any activities other than those within its mandate (see new proposed section 4.2 in the attached document)

  • ensuring data privacy by strengthening language in the operating agreement (see proposed edits to sections 6.2, 11.2 and Schedule B in the attached document)

2. Proposed administrative changes

The ministry is proposing the following types of administrative changes:

  • removing out-of-date and transitional provisions, such as references to the “transitional” operating agreement and “initial” board

  • adding clarification to the agreement through new provisions that relate to RPRA establishing memoranda of understanding with other program areas within the ministry

  • improving operational flexibility through changes such as removing the requirement that RPRA publicly post all compliance and enforcement policies and guidelines which could reveal internal processes and strategies and may be inappropriate to post publicly as they could impede effective compliance and enforcement

Read the restated Operating Agreement with proposed changes.

Background information on the role of RPRA

The RRCEA overhauled Waste Diversion Ontario (WDO) – the former oversight body under the Waste Diversion Act, 2002 – to become RPRA. RPRA is a non-Crown, not-for-profit organization that is responsible for:

  • providing effective oversight
  • developing and operating a data clearinghouse
  • undertaking compliance and enforcement related to the producer responsibility regime under the RRCEA
  • undertaking oversight, compliance and enforcement related to existing waste diversion programs and their wind up under the WDTA

Supporting materials

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Comment

Commenting is now closed.

This consultation was open from February 12, 2021
to March 29, 2021

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