Resource Recovery and Circular Economy Act, 2016 New Producer Responsibility Framework

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1 Resource Recovery and Circular Economy Act, 2016 New Producer Responsibility Framework Resource Recovery Policy Branch Ministry of the Environment and Climate Change April/May 2017 Stakeholder Consultation Sessions

2 Purpose Outline the scope of the new producer responsibility framework and regulation making powers under Part IV of the Resource Recovery and Circular Economy Act, 2016 (RRCEA). Gather feedback and information from stakeholders who will be impacted by the new RRCEA regulation for used tires. 2

3 Ontario s New Framework WASTE FREE ONTARIO FRAMEWORK WASTE FREE ONTARIO STRATEGY Identify goals Identify actions to increase diversion Identify available tools (e.g., RRCEA, WDTA, EPA, voluntary programs and initiatives) Identify performance measures RESOURCE RECOVERY AND CIRCULAR ECONOMY ACT Establish provincial interest Establish new producer responsibility framework Establish the Resource Productivity and Recovery Authority with accountability WASTE DIVERSION TRANSITION ACT Govern the operation of programs and their wind-up Govern the wind-up of Industry Funding Organizations (IFOs) 3

4 Transition Process Transition includes two concurrent steps: 1. Winding up the existing waste diversion programs and Industry Funding Organizations (IFOs) under the Waste Diversion Transition Act, 2016 (WDTA). 2. Putting in place regulations under the Resource Recovery and Circular Economy Act, 2016 (RRCEA) to make producers fully responsible. The new producer responsibility regulations will be fully implemented on the day each of the existing waste diversion programs wind-up. 4

5 Objective and Principles Objective: Tires are properly managed and diverted to: Improve environmental protection and human health. Drive Ontario s economic growth and job creation through resource recovery. Grow a circular economy that maximizes the recovery of resources. Reduce greenhouse gases (GHGs). Principles: Establish an outcomes based approach that enables producers and others to meet their obligations in a cost effective and efficient manner. Set resource recovery and waste reduction requirements to reduce the amount of waste generated and disposed. Provide convenient and accessible resource recovery services across Ontario. Support a level playing field for all participants that allows businesses to compete in an open and fair marketplace. 5

6 Key Pillars of the Framework Part IV, RRCEA Resource Recovery and Waste Reduction Responsibilities Producers are accountable for recovering resources and reducing waste associated with their products and packaging sold or made available in Ontario, in an efficient and effective manner. Government designates the material to be collected and managed (e.g., product, product packaging or convenience and transport packaging). Government defines who the producer is for a designated product or packaging (e.g., brand holder, person with a commercial connection to the designated material). Government sets requirements that producers and others (who engage in resource recovery and waste reduction activities) must meet. Producers choose how best to meet the requirements on their own or by joining with others to obtain services for the collection and management of the materials. Authority undertakes compliance and enforcement by using a full suite of tools to ensure obligations are met. Non-compliance may be subject to consequences. 6

7 Key Requirements and Responsibilities Part IV Requirements Registering with the Authority through Registry Producers Brand holders and other persons (e.g., importer, wholesaler, lessor or retailer) with a commercial connection to a designated material Register and keep registration up to date Reducing waste Design materials to reduce waste generation and recover resources at their end-of-life Setting up a collection system Establish and operate a collection system Managing a collected material Establish and operate a system to manage the designated material Providing promotion and education (P&E) Reporting, auditing and record keeping Implement P&E program to increase collection, reuse, recycling and recovery of material Maintain & store documents/data, audit results, and report annually to Authority Others Producer responsibility organizations, service providers, municipalities and other persons engaged in a resource recovery and waste reduction activity Register and keep registration up to date X X X Implement P&E program to increase collection, reuse, recycling and recovery of material Maintain & store documents/data and report annually to Authority 7

8 Complementary Requirements and Tools RRCEA requirements that could support the producer responsibility framework: Include dispute resolution provisions in agreements between producers and others regarding services to collect and manage designated materials. Impose a sales ban on designated materials in extraordinary circumstances. Prepare a policy statement to further resource recovery or waste reduction. EPA requirements that could support the producer responsibility framework: Impose disposal bans on materials designated under Part IV of the RRCEA. Exempt low risk activities from approvals and administrative requirements. Register medium risk activities on environmental activity & sector registry (EASR). 8

9 Key Element Designating Materials Regulations can designate a class of materials that producers would be responsible to manage for the purpose of resource recovery and waste reduction. A class of materials can be any combination of a product, primary packaging associated with a product, convenience packaging or transport packaging. Before Waste materials managed through the waste diversion program are designated and defined by regulation IFOs are responsible for managing these materials in accordance with the program plan New framework Classes of materials to be designated through regulations under Part IV of the RRCEA Individual producers could be responsible for one or more materials in a designated class or can have multiple producers responsible for one or more materials in a designated class 9

10 Key Element Defining Responsible Persons Regulations can identify the producers responsible for carrying out the requirements for a designated class of materials. Could be a brand holder or person who has a commercial connection to a class of materials. Commercial connection includes importing, wholesaling, leasing, retailing or distributing a product in a designated class, or other prescribed criteria (e.g., original equipment manufacturers, e-tailers). Before Stewards that are resident in Ontario pay fees to the IFO who is responsible for managing the waste materials No other obligations on stewards New framework Producers are responsible for collecting and managing the designated class of materials 10

11 Key Element Collection and Management of Materials Regulations can require producers to establish and operate a collection and management system for one or more designated materials. Producers can choose to do this themselves or hire others to obtain services. Before Program plan was developed by the IFO and Authority Plan outlined collection and management methods, and set targets for collection and management of materials Collected materials had to be reused or recycled; no other requirements under the WDTA New framework Requirements under the RRCEA could prescribe: o collection, convenience and accessibility standards o reuse, recycling and management standards Can be geographic based (urban/rural, north/south) 11

12 Key Element Promotion and Education Regulations can require producers to implement a promotion and education (P&E) program related to the collection and management of a designated material. Others performing activities related to resource recovery and waste reduction can be required to implement a P&E program to support the collection of a designated material. Before Waste diversion program could voluntarily include educational and public awareness activities New framework Specific P&E requirements could be prescribed to increase the collection, reuse, recycling or recovery of designated materials 12

13 Key Element Registration Requirements Regulations can identify who needs to register and what type of information needs to be included in the registration. Registry would be used to collect data/information, help ensure transparency and facilitate compliance and enforcement activities. Before No requirements for a public registry Stewards are required to register with the IFO Most information not readily available to stakeholders/public New framework Authority sets up and operates Registry for data clearinghouse and compliance and enforcement activities and duties Producers and persons engaged in resource recovery and waste reduction activities could be required to register Registry to act as a conduit for public access to information 13

14 Key Element Reporting, Auditing and Record Keeping Regulations can require producers and others to create, maintain and store documents and data and submit them to the Authority. Audits could be required to be submitted to the Authority to verify compliance. Others performing resource recovery and waste reduction activities can be required to submit annual reports related to those activities. Before IFO required to keep records, prepare and submit an annual report to the Authority and post the report on their website Stewards and service providers required to keep records New framework Reporting and record keeping requirements may apply to producers and persons engaged in resource recovery and waste reduction activities Audit requirements for producers may apply to collection, management and P&E activities 14

15 Key Element Waste Reduction and Product Design Changes Requirements can deal with wastes generated during production and at the end of a product/packaging s life to affect changes in product design. Before Could not impose waste reduction obligations on stewards Limited ability to affect design change New framework Waste reduction responsibilities could require producers to meet prescribed standards that promote the 3Rs, including reducing waste, increasing reuse & recycling, reducing hazardous materials and increasing recycled content Collection, management and P&E requirements could be altered as an incentive for producers to meet a prescribed design standard (e.g., design for environment) 15

16 Discussion Questions Designating Materials Should the list of tire types included in the existing program be expanded? Defining Responsible Persons Is the current hierarchy for the used tires program appropriate/practical for the new producer responsibility framework? Is there a need to exempt small businesses from the producer responsibility requirements and, if so, what threshold is appropriate? Collection and Management Convenience and accessibility requirements help ensure that all Ontarians have access to collection services for all tire types. What should these requirements be and would they differ based on urban/rural and north/south factors? Does the processing industry in Ontario have the capability and capacity to process all tire types into materials that can be used in higher valued end-markets? How can producer obligations drive the materials to these higher valued endmarkets? 16

17 Discussion Questions Promotion and Education What are the key elements of a successful promotion and education program (e.g., information on how to participate, who is providing this service, how the collected tires are managed at their end-of-life, etc.)? Who is best suited to provide this and how? Registration, Reporting, Auditing and Record Keeping Who, beyond producers, should be subject to registration, reporting, auditing and record keeping requirements? What information should be required as part of registration, reporting, auditing and record keeping in order to support the Authority s compliance/enforcement activities and data clearinghouse function so that a level playing field and transparency are achieved? Waste Reduction & Product Design How could the regulation encourage producers to make design changes that support resource recovery and waste reduction? Are there barriers that may affect the implementation of these design changes? 17

18 Appendix Reference Materials Key tire types included in the used tire program 1. On-road passenger, light truck tires 2. On-road medium truck tires 3. Off-road tires Some tire types are excluded (bike, personal mobility and commercial aircraft). Hierarchy of key stewards in the used tire program 1. Original equipment manufacturer (OEM) 2. Brand holder (resident in Ontario) 3. First importer (including distributor) 18