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

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