Internal Workings of Existing TPO

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• Internal Workings of Existing TPOs
• Product Care
• Creating a national program ---
• one province at a time
• Mark Kurschner Product Care Association

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About Product Care Association

• Overview
• Certain provinces have regulations requiring
  producers of designated materials to have a
  consumer take back system
• PCA is an association of producers
• Producers (or sometimes retailers) pay PCA fees
• PCA manages paint and HHW stewardship programs

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About Product Care Association

• Multi material
• Multi provincial
• British Columbia paint (1994), flammables,
  pesticides and gasoline (1997)
• Nova Scotia paint (2002)
• Saskatchewan paint (2006)
• more provinces in development

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About Product Care Association

• not-for-profit
• gt100 Industry members
• Membership divided into sectors by material type
• Board of 10 members, industry only, sector
  appointed

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What is HSW?
Paint is the predominant material in the
Household Special Waste group (excluding oil,
batteries)

Paint
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How the program works

• BC Program
• admin./finance
• collection
• transportation
• processing
• recycling/disposal
• communications

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• BC Program
• admin./finance
• collection
• transportation
• processing
• recycling/disposal
• communications

• Members are manufacturers, major retailers (brand
  owners and first importers)
• Members report sales to PCA and pay eco fees
  based on material and container size (e.g 0.40
  for gallon of paint)
• Members are subject to audit
• Risk management is managed through insurance,
  reserve funds and good operating practices

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• BC Program
• admin./finance
• collection
• transportation
• processing
• recycling/disposal
• communications

• depot system 120 locations, mixture of
  contracted municipal, non-profit and private
  sites.
• Program supplies collection bins.
• Paint exchange program.

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• BC Program
• admin./finance
• collection
• transportation
• processing
• recycling/disposal
• communications

Contracted trucks visit depots, dropping empty
bins, pick up full bins and bring to central
facility
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• BC Program
• admin./finance
• collection
• transportation
• processing
• recycling/disposal
• communications

PCA manages the sorting and bulking facility,
serving entire province of 4 million people
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• BC Program
• admin./finance
• collection
• transportation
• processing
• recycling/disposal
• communications

Bulked materials are shipped for recycling,
reuse, disposal to approved contractors
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• BC Program
• admin./finance
• collection
• transportation
• processing
• recycling/disposal
• communications

• Consumer brochures
• via 4000 retailers
• via municipal distribution
• recycling hotline
• web page.
• The message to consumers
• Buy what you need
• Use what you buy
• Dispose responsibly
• Objective Reduce leftovers to 0 while
  increasing recovery to 100

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• Stewardship in Canada
• Beverage container programs
• Industry managed (BC, AB, QC, NB)
• Govt agency managed (SK, NF, NS)
• Voluntary programs (AB dairy, SK dairy)
• Packaging/papers industry managed (ON, QC
  pending)
• Used Oil industry managed (BC, AB, SK, MB, QC)
• Tires retailer/govt managed (all provs.
  except ON)
• Paint/HHW (BC, QC, NS) industry managed
• Ewaste (AB) ARMA manages
• Pharmaceuticals (BC, AB) industry
• Car batteries (BC, PEI) govt managed
• Rechargeable batteries voluntary program

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Stewardship Programs in Canada
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Internal Workings of Existing TPOs

• Factors influencing TPO structure
• Who regulates? Federal or provincial
  jurisdiction
• Product Type and product definition
• Who is the Obligated party manufacturer,
  distributor, retailer, or ?
• Regulatory design
• Government role vs. industry role
• Enforcement system

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Regulatory Jurisdiction

• The challenge
• In Canada, provinces have jurisdiction over waste
  management
• Individual provinces pass regulations
• Results in patchwork/checkerboard
• Creates efficiency/compliance challenges for
  industry

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Regulatory Jurisdiction

• Regulations vary in each province by
• Product definition
• Definition of obligated party
• Establishment of a multi material or supervisory
  board
• role of govt, role of industry in managing
  program
• Other
• Municipal role, if any
• Stipulations re board composition (e.g municipal
  or NGOs)
• Requirements to use certain infrastructure (e.g.
  existing depot system)
• Product management (e.g. processor must be in the
  province, no incineration etc.)

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Product Type and product definition

• Product type influences program design
• Tires, used oil, car batteries ? return to retail
  works well
• Paint/HHW/ewaste ? depot system works well

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Product definition

• Harmonized product definition (across
  jurisdictions) essential for ease of compliance
  and administration
• Then producer administers same list of products
  in every jurisdiction
• In Canada, a standard for definition of HHW has
  now been developed, CSA Z752, can be referenced
  in regulatory definitions

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Who is the Obligated party (to pay fees)?

• Distribution hierarchy approach Manufacturer,
  but if not in jurisdiction, then brandowner, if
  not then distributor, if not then retailer
• Variation First importer/seller approach
• Variation let industry program decide via
  rules, obligated party must have a commercial
  connection
• Retailer via tax return

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• Some categories of regulatory design
• File approved program(s) otherwise return to
  retail
• BC, QC, NS for paint
• File an approved program (individually or
  collectively)
• No fees stipulated in regn, but fees paid to
  association
• Prescribed default reqs return to retail (or
  near retail) must meet minimum prescribed
  standards, may be required to accept all brands
  (what about mail order/internet sales?), must
  manage collected material and report.
• One mandated program only (AB, ON)
• all producers must pay fees to approved program
  whether or not a member (in Ont. have option of
  Independent Stewardship Program)
• Special tax collected at retail - Govt managed
• Used tire programs, battery programs

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• What is the Government role, what is the industry
  role?
• Variations
• Govt supervisory role, Industry funds and
  operates program, govt enforces compliance (e.g.
  BC paint program, used oil programs)
• Govt establishes multi material board to
  supervise, industry funds and operates programs,
  govt enforces (e.g. Ontario blue box)
• Govt establishes govt agency to operate
  programs, industry funds, govt enforces (e.g. SK
  and NF beverage container programs)
• Govt collects retail tax to fund program,
  manages program by contract (all tire and battery
  programs)

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Who enforces?

• In approved program approach, the issue of
  payment is between the program and its members,
  however non members subject to prosecution by
  govt for non compliance with regn
• In one program approach, govt has greater role
  in enforcement for any non payers
• Related questions
• Is the producer in the jurisdiction?
• Can the regn be enforced outside of the
  jurisdn?
• What presence in the jurisdiction is needed?
  Building? Address? Sales representative?

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Industry wish list to govt

• Harmonize definitions/regulations with other
  provs.
• let industry manage the program, govts role is
  to regulate/supervise
• Limit the role of multi material boards
  supervise not operate
• Do combine requirement for local economic
  development (e.g. mandatory in-province
  processing)
• Modify related waste management regulations e.g.
  transportation of dangerous goods, to allow
  programs to operate efficiently
• Encourage municipal collection role, gives
  citizens one stop, the infrastructure is often
  already there
• Encourage municipalities to allow depots outside
  of industrial zones
• Dont worry about the finances industry itself
  does not want high fees or cross subsidization
• Do not impose requirement for multi stakeholder
  board composition, boards are for managing, not
  for consultation
• Provide effective enforcement system

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Summary of Product Cares approach as a TPO

• provide universal adaptor and one stop for
  members.
• Strive for harmonized fees, product lists, common
  audits.
• Adapt to existing infrastructure where possible
• Actively manage programs to achieve efficiencies
• In-source, out-source services where beneficial
• Multi sector governance model
• Centralized administration
• Work with other programs to achieve synergies

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• Program Performance in BC program
• Industry management leads to program efficiency
• In BC paint/HHW program
• Volumes have increased steadily
• Per unit and total program costs have decreased
• Eco fees have never increased and have reduced in
  many categories

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Thank you !!

• Contact info.
• Mark Kurschner
• Product Care Association
• 604 592 2972 x 201
• mark_at_productcare.org