WorkshopWebcast

1
Workshop/Webcast 3 Municipal Hazardous or
Special Waste Program Plan Development Process

• March 22, 2007

2
Welcome

• In person 60 in room
• Webcast audience 100
• slides advance automatically
• enlarge slide
• email box for questions/comments left of slide
  screen
• use any time
• please include name affiliation
• Archived webcast available

3
Todays Agenda - First Half

• Where we are in plan development process
• Summary of comments received
• Product specific summaries
• Targetsaccessibility collection
• QA
• Break (about 310, 20 minutes)

4
Todays Agenda - Second Half

• Municipal input comments
• Costs economic impact
• Preliminary fee-setting framework
• QA
• Next steps
• Adjourn (about 500 p.m.)

5
Update on Status of MHSW Plan Development Process

• Derek Stephenson

6
Observations About Plan Development Process to
Date (1)

• March 12 preliminary plan reflects
• baseline information
• current views on how plan should be shaped
• Allows stakeholders opportunity to improve on
  work done to date
• But now..
• must confirm BEST available data for Year 1
• fee rates must be specified in plan

7
Observations About Plan Development Process to
Date (2)

• Municipalities want more specificity
• immediate shift from disposal
• details of 5-year plan
• Stewardsbroadly accepting
• focused on whats expected of them
• costs
• Plan approval depends on
• all requirements of WDA Ministers letter
• defensible Year 1 cost data
• costs are fairly allocated

8
Observations About Plan Development Process to
Date (3)

• Comments importantMarch 29, 4 p.m.
• look to you to help improve Year 1 planning
  estimates
• Plan will make 5-year projections, but
• best estimates aspirational goals
• will be better informed after plan approved
  implementation begun
• will have stewards reports on actual sales
• agreements negotiated with municipalities
• complete assessments of barriers
• investment costs defined built in

9
Consultation Plan Development (1)
10
Consultation Plan Development (2)
11
Workshops 1 2 Submissions Received

• Stewards (Phase 1 other) 12
• Industry Trade Associations 4
• Municipalities 3
• Service providers 2
• No affiliation mentioned 2
• Total 24

17 received via email 7 via online survey
one stakeholder expanded on survey
12
Workshop 2 Comments by Issue (1)
13
Workshop 2 Comments by Issue (2)
14
Workshop 2 Comments by Issue (3)
15
Workshop 2 Comments by Issue (4)
16
March 12 Plan Submissions Received to Date

• End Market 1
• Municipalities AMRC 3
• Industry association 1
• ENGOs 6
• Total 11

All comments received via email
Continue to submit comments, please!
17
March 12 Plan Comments by Issue (1)
18
March 12 Plan Comments by Issue (2)
19
March 12 Plan Comments by Issue (3)
20
March 12 Plan Comments by Issue (4)
21
March 12 Plan Comments by Issue (5)
22
March 12 Plan Comments by Issue (6)
23
Updates on Status Changes to Product Specific
Summaries

• Mark Kurschner Gordon Day

24
Paint Coatings (1)

• Update
• verifying recovery rate
• small quantity Industrial, Commercial
  Institutional (ICI) volumes not quantified
• Collection Diversion
• primarily municipal collection, highest volume,
  most commonly collected product
• paint recycler in Ontario
• need 3Rs solution for some container types

25
Paint Coatings (2)

• Issues
• verifying collection rate
• managing ICI products
• regulatory potential liability issues re reuse
  
• potential for return to retail
• plastic container recycling
• reduce leftover quantity

26
Paint Coatings (3)

• RD Investments
• develop other recycling options (e.g. latex in
  concrete study at University of Western Ontario)
• analyze recycling potential for ICI products
• develop container recycling options
• logistical solutions if municipalities no longer
  densify by bulking
• promotion of BUD message to consumers
  retailers, buy what you need, use what you buy,
  dispose responsibly

27
Oil Filters (1)

• Update
• industry consensus to target all automotive oil
  filters, Do-It-Yourself (DIY) Do-It-For-Me
  (DIFM), not just residential small ICI
• hauler incentive system proposed as in other oil
  material programs
• Collection Diversion
• collection primarily via participating auto
  service providers, also participating
  municipalities
• haulers processors present in Ontario, need to
  examine capacity

28
Oil Filters (2)

• Issues
• modifying established hauler incentive system to
  cover only filters containers
• verifying processing capacity

29
Oil Filters (3)

• RD Investments
• analyze existing system infrastructure
• design of hauler incentive system
• including establishment of functional regions
• recruiting collection sites
• educating DIYs to use new system

30
Oil Containers (1)

• Update
• industry consensus to target all lubricating oil
  containers, DIY DIFM, not just residential
  small ICI
• hauler incentive system proposed, e.g. as in
  other provinces
• end market recycler incentive possibly required
• Collection Diversion
• collection primarily via participating auto
  service providers participating municipalities
  
• processing technology exists in other provinces,
  needs development in Ontario

31
Oil Containers (2)

• Issues
• modifying established hauler incentive system to
  cover only filters containers
• challenge to municipalities where fluid oil not
  included
• establishing container recycling
  technology/capacity in Ontario

32
Oil Containers (3)

• RD Investments
• container recycling capacity
• design of hauler incentive system
• including establishment of functional regions
• recruiting collection sites
• educating DIYs DIFMs to use new system

33
Antifreeze (1)

• Update
• discussion within industryshould program go
  beyond mandated residential small ICI
• new approach targets packaged antifreeze
  onlyexceeds ministers mandate, but does not
  disrupt established bulk antifreeze programs
• hauler incentive system under consideration
• Collection Diversion
• collection primarily via participating auto
  service providers participating municipalities
  
• processing technology capacity exist in Ontario
  for fluid, capacity needs confirmation
• processing for antifreeze containers needs
  development

34
Antifreeze (2)

• Issues
• confirming consensus on new approach targeting
  packaged antifreeze only
• designing hauler incentive system
• quantifying packaged-only generation
• confirming recycling capacity
• confirm reuse options (on site reprocessing)

35
Antifreeze (3)

• RD Investments
• analyze existing system infrastructure
• design of hauler incentive system
• including establishment of functional regions
• recruiting collection sites
• educate DIYs to use new system

36
Dry Cell Batteries (1)

• Update
• limited information about end-of-life
  management Mercury (Hg) percentage
• Collection Diversion
• processor in Ontario
• not current destination for collected batteries
• industry to assess all options
• collected through municipal system
• explore opportunities for other options

37
Dry Cell Batteries (2)

• Issues
• batteries containing Hg pose greatest challenge
• additional costs to all batteries
• expand collection opportunities when
  infrastructure available
• targets a struggle
• European Union (EU) directive target used as
  place-holder in draft

38
Dry Cell Batteries (3)

• RD Investments
• need to assess available for collection rate
• need to analyze Hg levels in battery stream
• pilot collection options
• develop recycling processing standard
• tender for processing
• scale up collection

39
Pressurized Containers (1)

• Update
• new recovery information from Parks Ontario
• Collection Diversion
• refillables collected outside municipal system
• hundreds of return outlets
• high return recycling rate precise rate
  uncertain
• non-refillables (NR) collected municipal
  Ontario Parks
• once evacuated, cylinder recycled

40
Pressurized Containers (2)

• Issues
• high recovery for refillables
• need to quantify
• collection network for NR cylinders
• municipalities, parks
• build on existing propane infrastructure
• developing infrastructure for NR cylinders

41
Pressurized Containers (3)

• RD Investments
• expand collection of NR containers at exchange
  sites
• build on success of refillables
• viability of evacuating NR containers at point of
  collection to remove potential hazard costs

42
Fertilizers (1)

• Update
• treated separately from pesticides in program
  plan
• definition requires further clarification
• Collection Diversion
• collected through current municipal system
• cannot be recycled collection equals disposed
• on-site reuse possible option

43
Fertilizers (2)

• Issues
• fertilizers consumabledifficult to define
  quantity available for collection
• using industry collection sales data for retail
  fertilizers only
• what quantity of fertilizers captured in
  definition?
• reduction targets 5-year sales projections

44
Fertilizers (3)

• RD Investments
• to reduce amount of fertilizers managed through
  municipal depots
• to develop recycling options for plastic
  fertilizer containers
• Integrated Pest Management (IPM) strategies

45
Pesticides (1)

• Update
• pesticides separated from fertilizers for program
  plan
• Collection Diversion
• domestic pesticides collected through current
  municipal system
• commercial agricultural pesticides included in
  definition
• separate systems in place

46
Pesticides (2)

• Issues
• pesticides consumabledifficult to define
  quantity available for collection
• using extrapolated collection sales data from
  other programs for domestic pesticides only
• quantity of pesticides captured in current
  definition
• reduction targets 5-year sales projections

47
Pesticides (3)

• RD Investments
• to assess viability of alternatives to landfill
• to develop recycling options for plastic
  pesticide containers
• Integrated Pest Management (IPM) strategies

48
Solvents (1)

• Update
• sales volumes are hydrocarbon
  halogenated-hydrocarbon based products sold into
  the retail/mass merchandiser market
• Collection Diversion
• solvents collected through current municipal
  system
• solvent can be recycled if non-contaminated

49
Solvents (2)

• Issues
• solvents consumabledifficult to define
  quantity available for collection
• does not match with other provincial program
• quantity of solvent captured in current
  definition
• wide range of companies may be covered
• reduction targets 5-year sales projections

50
Solvents (3)

• RD Investments
• develop processes to produce good quality
  recyclable waste streams
• education focused on using product up
• education on improved storage practices to reduce
  leakage evaporation

51
Targets Accessibility Collection

• Mark Kurschner

52
Targets Accessibility Collection (1)

• Ministers letter
• requires methodology for expanding and
  improving the existing collection and diversion
  infrastructure for municipal hazardous or special
  waste to meet the capture and accessibility
  targets
• expand accessibility including urban, rural,
  northern
• methodology to define accessibility targets
• consider capital costs to meet targets

53
Targets Accessibility Collection (2)

• Improved accessibility should result in increased
  collection
• Accessibility measures
• proximity/travel time
• frequency/duration/capacity of events
• program awareness
• increased collection of Phase 1 materials

54
Targets Accessibility Collection (3)

• Increasing accessibility Year 1
• PE plan developed to increase awareness
• existing municipal programs encourage doubling
  of existing events expansion of depot hours
• other municipalities encourage 2 events per year
• provide financial incentives to encourage
  industry take back programs

55
Targets Accessibility Collection (4)

• During Year 1, begin effectiveness analysis to
  plan for subsequent years
• compare events to depots
• relative contribution to collection targets
• relative cost to operate
• examine industry take back program
• number of programs
• contribution to collection targets
• analyze materials managed per household served
• Improve methodology based on results
• Analyze capital costs for depot development
  infrastructure

56
Targets Accessibility Collection (5)

• Increased accessibility, PE intended to increase
  collection rate
• by increasing amount collected through municipal
  industry collection systems
• and/or by reducing amount available (for some
  products)
• Collection targets
• to improve amount collected compared to
  available for collection (not volumes
  generated)
• Diversion targets
• to improve amount diverted to reuse recycling
  options instead of disposal methods

57
Targets of Available for Collection
58
Targets Accessibility Collection (6)

• Targets will be adjusted as program progresses
• amount generated will become more reliable as
  stewards reports received
• amount collected diverted will be captured
  through WDO Datacall MHSW program tracking

59
Small Quantity Waste from ICI (1)

• Means MHSW waste from businesses
• where not required to submit generator
  registration report under Reg. 347
• not to return more than 100 kg MHSW per month
• Existing Reg. 347 exemptions considered
• residential waste
• small quantity exemptions vary by product,
  usually maximum of 5-25 kg per month or
  accumulated on-site
• waste from servicing motor vehicles subject to
  conditions
• DIY waste antifreeze, lubricant, oil filters to
  selected waste depots subject to conditions

60
Small Quantity Waste from ICI (2)

• Issues
• ability of small quantity generator (SQG) to
  transport waste due to Reg. 347 requirements
  TDGR
• ability of municipal collection sites to receive
  MHSW from SQG due to limitations in Certificates
  of Approval
• ability of other collection sites to accept waste
  from SQG under Reg. 347 where specific exemptions
  do not exist
• method of identifying bona fide SQGs,
  verification/tracking system may be required

61
Small Quantity Waste from ICI (3)

• Possible solutions
• municipalities service providers apply to
  change Certificates of Approval (C of A) on
  voluntary basis (precedent Peel Region)
• apply for blanket C of A to cover MHSW from SQGs
  (precedent Rechargeable Battery)
• exemption by Rule under Reg. 347 seek
  additional exemptions (precedent auto service
  centres)
• await proposed streamlining changes to Reg. 347
  initiated in 2006
• develop verification/tracking system

62
Small Quantity Waste from ICI (4)

• Next steps
• continue consultation
• with Ministry of Environment (MOE),
  municipalities service providers to identify
  best course of action to resolve regulatory
  issues
• with industry collection site operators to
  develop effective SQG verification/tracking
  system
• process to develop solutions underway will
  continue after program start date

63
Questions Answers

• Use question/comment box, left of this screen

64
Break
65
Welcome Back!
66
Coming up

• Municipal input comments
• Estimating costs economic impacts
• Preliminary fee-setting framework
• QA
• Next steps

Reminder please send in questions comments
67
Municipal Input Comments

• Joseph Hall

68
Overview

• General
• PE
• ICI small quantity generators
• RD market development
• Infrastructure accessibility
• Collection diversion targets
• Opportunities next steps

69
General (1)

• Plan Development
• fast pace, complicated, iterative
• Municipalities
• support initiative
• Extended Producer Responsibility (EPR) components
  evident
• encourage more EPR

70
General (2)

• Plan approach
• dealing with unknowns
• ICI generation, PE effect on collection
• restructure plan layout to reflect a project
  management approach

71
Promotion Education (1)

• Plan states PE outline in draft to be replaced
• communications program plan to be developed
• implementation work plan
• RD, using market target audience research

72
Promotion Education (2)

• PE outline very general
• PE Strategic Plan will be more effective with
• fixed review periods revision schedule
• clear objectives goals
• measurement tools linked to collection targets
• monitoring reporting protocols
• corrective actions

73
ICI Small Quantity Generators (1)

• Good summary of challenges of current system to
  service ICI sector
• Options fall short of dealing with problem
• Recommend MOE allocate staff financial
  resources to develop timely C of A review
  solutions

74
ICI Small Quantity Generators (2)

• Plan must set out ICI SQG
• objectives goals
• risk areas issues of concern (e.g. unknown
  quantities regulatory route)
• time frames deliverables
• protocols measurement, monitoring, reporting,
  corrective actions

75
RD Market Development (1)

• Good concepts identified
• Need to identify diversion targetskey assessment
  criteria
• Current MHSW infrastructure disposal-based
• Need to draw on experience from other provinces
  global initiatives

76
RD Market Development (2)

• Current service providers need to be engaged in
  processcan be part of solution
• Define new market system by bringing in existing
  technologies to manage MHSW to higher established
  standards

77
Infrastructure Accessibility (1)

• Good summary of existing status
• Plan mentions 3Rs options available for most
  Phase 1 materials
• outlined in material profiles
• Plan states disposal in early years likely to
  be relied uponmove quickly to other options
• 3Rs options are available

78
Infrastructure Accessibility (2)

• Multi-year plan proposed to expand improve
  collection diversion
• Details available for Year 1 only
• Collection targets defined as goal objective
• diversion targets required

79
Infrastructure Accessibility (3)

• PE awareness plan developed in Year 1need it
  before commencement date
• Year 1 expansion based on municipalities
  investing disposal savings into collection
• Double events extended hours increase
  collection costsis this effective diversion?

80
Infrastructure Accessibility (4)

• Take-back programs identifiedplan should
  emphasize encourage more
• supported by municipalities
• Better define evaluation frequency to enable plan
  to adapt meet identified targets

81
Collection Diversion Targets

• Year 5 targets shownneed to identify annual
  steps
• Do-It-Yourself (DIY) Do-It-For-Me (DIFM) exceed
  Ministers request
• targets entire MHSW stream on some materials
• this is good, however
• Raises questions on evaluation parameters
  diversion assessment of all Ontarians SQG
  ICI streams

82
Performance Tracking

• Year to year comparison in plan
• Need protocols to gather data on-line to
  evaluate rapidly accurately program performance
  
• monthly or quarterly assessments
• Will lead to
• quicker program roll out
• quicker achievement of targets

83
Material-Specific Plans

• Comments made via consultation process
• Primary concern is exclusion of some materials
  containers from definition
• Will monitor plan development for changes
  answers to concerns

84
Opportunities Next Steps (1)

• Municipalities
• appreciate opportunity to be at table to
  formulate first EPR-based functional split plan
• will seriously consider using savings for
  investment into program expansion
• are committed to making this work for all
  Ontarians

85
Opportunities Next Steps (2)

• Industry
• has opportunity to clean Ontario Homes of MHSW
• MHSW Plan will definitely improve our environment
• Next Steps
• work together to get approvable, workable
  measurable plan

86
Thank you

• Joseph Hall
• General Manager
• Ottawa Valley Waste Recovery Centre
• jhall_at_ovwrc.com
• 613-732-9285
• www.ovwrc.com

87
Estimating Costs Economic Impacts

• Derek Stephenson

88
Cost Estimates Data Collection

• Municipalities
• all surveyed for net program cost, contract cost
  promotional costs 88 provided data
• selection surveyed for contract data, material
  activity- specific pricing some data provided
• Service providers
• surveyed for materials collected, source
  processing capacity, pricing by material
• limited response very limited pricing data

89
Municipal Channel Current Cost (1)

• Total operating cost of existing system (all
  activities, all materials) 15M
• 88 of programs responded, estimates for 12
• Based on programs that provided detailed
  information
• 25-50 of current operating cost is for
  collection
• majority of cost is for Phase 1 materials (some
  cross-subsidization)
• disposal costs are greatest

90
Municipal Channel Current Cost (2)

• Event days
• flat rate for set up 1,000-5,000
• material-specific pricing for packing, bulking,
  transport recycling/disposal
• combined handling recycling/disposal costs
  typically 40-200/lab pack
• Permanent depots
• range of operating costs reflect infrastructure
  materials collected 600-2,500/tonne
• capital cost estimates being developed

91
Municipal Channel Accessibility

• Anticipated events facilities
• events additional in current locations, new in
  under-serviced areas
• depots needs assessment in first program year
  with support to programs with existing council
  approval
• Develop cost estimate for increased accessibility
• event cost set-up, post-collection operations,
  transportation, recycling/disposal, capital
  (vehicles)
• depot capital, operation

92
Non-Municipal Channel

• Barriers opportunities to reach targets being
  identified as part of industry sector
  consultations summarized in profiles
• Estimates of investments to support required
  activities will be developed
• incentives to service providers to increase the
  accessibility quantities returned through
  existing channels
• RD required to foster growth of new channels
• investments to increase diversion of materials
  collected through these channels

93
Assessing Economic Impacts
94
Total Program Cost Comparisons Current System
vs. Year 1 Projections
Where this information is available or can be
approximated in the draft Program Plan
95
Year 1 5 Key Program Element Cost Projections
96
Examples of Product-Specific Cost Impacts
97
Preliminary Fee-Setting Framework

• Guy Perry

98
Guiding Principles

• Fee-setting begins with cost to manage each
  material under program
• determined by transparent cost allocation
  methodology
• Material specific fees may be modified to achieve
  
• overall MHSW program policy goals
• material-specific policy goals including
  achieving accessibility targets, collection,
  recovery diversion from landfill
• Assess Stewardship Ontario common shared costs
  across all stewards in fair transparent manner

99
Context

• Must meet legal policy objectives in WDA
  Ministers program request letter
• fees reflect program cost
• need for material specific targets performance
  measures
• accessibility, collection, diversion
• need for investments to reach targets
• Differs from Blue Box Program other MHSW
  programs
• no overall combined target, e.g. 60 for Blue Box
  materials
• little investment in 3Rs infrastructure to date
• Data time limitations for needs assessment

100
Implications for Fees

• Fees for each material will have
• portion of common or shared costs
• material-specific cost to manage
• investments required to meet material-specific
  targets
• No need to transfer cost from one or more
  materials to others to meet policy objectives
• managed through investments in RD, capital, PE
  to meet policy objectives
• may consider differences in management cost
  within material groups

101
Two-Stage Approach

• Stage 1
• Methodology for setting material specific fees to
  be defined for first two years of program
• Based on best available data
• Year 1 agreements for
• common shared cost allocations
• fee for service arrangements with municipalities
• allocation of cost elements for municipal
  channels
• material-specific costs for non-municipal
  channels
• material-specific investments in diversion
  infrastructure

102
Stage 1 Year 2

• Same methodology with refinements based on
• Stewards Reports received during Year 1
• fee for service arrangements with municipalities
• contracts with service providers
• detailed cost allocation work

103
Stage Two

• Review fee-setting methodology
• If revisions required, would constitute a
  material change to approved plan
• subject to consultation,
• approval by WDO Minister of the Environment
• Based on
• verified cost data
• Stewards Reports
• contracts with service providers
• tracking systems data

104
(No Transcript)
105
Allocating Common Shared Costs

• Range of options considered
• Preferred Option
• 50 of total shared equally by each material
  group
• equal cost ( ) for each material group
• 50 of total proportional to direct cost

106
Allocating Cost through Municipal Channels

• Post collection cost
• Fee for service agreements with municipalities in
  Year 1
• Direct contracts with service providers over time
• Contracts itemize material-specific prices
• No need for detailed allocation methodology
• Some materials managed together costs need to
  be separated
• physical management or composition audits
• account for different treatment or disposal costs

107
Allocating Other Management Costs

• Non-Municipal Channels
• Dedicated to one material costs separate
• Investments to meet targets
• Material-specific, e.g.
• PE
• recycling technology capacity development
• No need for detailed allocation methodology
• Appropriate allocation methodology when costs
  address more than one material

108
Final Fee Rates

• For each material
• Sum each cost element
• Divide total fees by appropriate physical unit to
  get a fee rate, i.e. per unit or volume
• Preferred option
• likely some measure of quantity volume format

109
Questions Answers

• Use question/comment box, left of this screen

110
Next Steps

• Derek Stephenson

111
Milestones
112
Consultation Process

• We want your views!
• Please email questions comments to
• comments_at_stewardshipontario.ca
• by
• 400 p.m
• Thursday, March 29

113
Meeting Adjourned