July 15 Public Consultation
Webcast & Round Table
Slide 1
Consultation Process
• Issues identified in approved Blue Box
Program Plan (BBPP)
– Revising the governance structure
– Market development
• Two phases
Slide 2
Consultation Process: Phase 1
Webcast &
Round Table
Consultation
Stewards &
Stakeholders
Slide 3
Consultation Process: Phase 2
Considering Options
• Seek opinions on issues in approved BBPP only
• Timing of “enhancements” requested by
Minister; potential impact on fees unknown
Slide 4
Preliminary Steward Fees 2005
• At August 25 open consultation– will also present preliminary
stewardship fees for 2005 &
– basis for calculating those fees
Slide 5
Phase 1 Objectives
• Solicit feedback early in process
• Build on lessons learned from implementation
of BBPP
Slide 6
Today’s Agenda
1. Welcome
2. Topic #1: Governance, Derek Stephenson
3. Topic #2: Market Development, Geoff Love
4. Questions/comments from webcast participants
5. Break (webcast ends approximately 11 a.m.)
6. Round Table #1, One hour
7. Break – food available for working lunch
8. Round Table #2, One hour
9. Closing remarks (approximately 2 p.m.)
Slide 7
Format
• Webcast participants - handling questions
• Moving to ‘Round Tables’ - option
Slide 8
Derek Stephenson
Revising the Governance
Structure
Slide 9
Presentation Overview
• Review current Board of Directors
• What current BBPP includes
• Steward registration update
• Issues to consider
• Options for discussion only
• Next steps
Slide 10
Board of Directors
• Food & consumer products manufacturers
• Non-alcoholic beverage manufacturers
• Grocery distributors
• General merchandise retailers
• Newspaper publishers
• Paint manufacturers & consumer & chemical product
manufacturers
• Retailer of alcoholic beverages
• Stewardship Ontario CEO
Slide 11
Future Governance Model
Approved BBPP states that the founding Board
would expand to:
• up to 20 seats
• up to 7 additional sectors
Number of industry sectors will be determined
when total members & proportion of total annual
fees contributed by each sector is known
Slide 12
Future Governance Model
Additional sectors may include:
• Electronic & electrical products
• Toys & sporting goods
• Non-prescription pharmaceuticals
• Quick service food
• Importers
• Distributors
• Hardware & automotive
Slide 13
Initial Criteria for Eligibility
• Generate designated
Blue Box wastes
• Other companies with
commercial connections
to Blue Box wastes
• Other persons with an
interest in corporation’s
activities
As agreed by
Stewardship
Ontario’s Board
of Directors
Slide 14
Additional Considerations for
Board of Directors
• Configuration & voting representation would
consider financial contributions of each sector
to Stewardship Ontario
• Board decisions will require majority vote &
approval of minimum number of sectors
• Stewardship Ontario will review size &
composition of Board annually
Slide 15
Registration Status Report
• 1384 registered Stewards
Current to
July 8, 2004
• 443 registrants have not yet filed reports
• 2,000 (estimated) additional potential
Stewards identified & not yet registered
• 350 registered Stewards; represent 97% of
reported levies owing
• 591 other registered Stewards account for
remaining 3% of fees to date
Slide 16
Financial Contribution by Sector
Printed Media
0.3%
Consumable
Products
Manufacturers
& Distributors
45.6%
Other
Services
0.9%
Durable
Products
Manufacturers
& Distributors
3.9%
LCBO
14.0%
Retailers &
Distributors
35.3%
Slide 17
Some Issues to be Considered
1. Is Board representation by sector
appropriate?
2. Are membership criteria correct?
3. Restructure only when full membership
composition known?
4. Review annually or less often?
Slide 18
Today’s Discussion
Three possible options:
1. Maintain current sectoral representation
2. Expand Board to between 12 & 15
members, including Non-Stewards
3. Expand Board to 20 members, including
Non-Stewards
Slide 19
Please Note
• Options are for discussion only
• Options not reviewed by Stewardship Ontario
Governance Committee or Board
• Comments on other alternatives welcome
Slide 20
Option 1
Continue with current Board
composition with voting rights tied to
financial contribution
Slide 21
Option 1 (cont’d)
• Maintain current Board sectors with voting
rights allocated on reported financial
contributions
• Representation from other stakeholders
(material suppliers, NGO) could be
considered (non-voting)
Slide 22
Option 1 Analysis
• PROS:
– Voting reflects financial contribution
– Easy transition from current Board
• CONS:
–
–
–
–
‘Strong get stronger’
Not seen as ‘inclusive’
No direct representation from other key stakeholders
Major generators of Blue Box materials (i.e., newspapers)
get relatively small representation
– Sectors on current Board represent approximately 91% of
fees contributed and 88% of tonnes reported
Slide 23
Option 2
Increase Board of Directors to
between 12 &15 seats
Slide 24
Option 2 (cont’d)
• Add sectors to existing Board & add nonsteward representation:
– 3 to 5 more contributing sectors (based on
financial contribution)
– 1 to 2 AMO or NGO
Slide 25
Option 2 Analysis
• PROS:
– Wider steward representation
– Greater transparency by including Non-Stewards
– Introduces ‘fresh blood’
• CONS:
– Voting may not fully represent financial contribution
– Increased size may encumber decision making
– Some obligated industry sectors may not feel represented
Slide 26
Option 3
Increase Board seats to 20
Slide 27
Option 3 (cont’d)
• Allocate 70% of Board (14 seats) on basis of
payments in, with:
– 20% (4 seats) to material suppliers
– 10% (2 seats) to AMO/NGO
Slide 28
Option 3 Analysis
• PROS:
– Protects relationship to payment in
– Includes material suppliers & other stakeholders
– Greater transparency & political comfort
• CONS:
– Not purely ‘pay as you play’
– Some stakeholders oppose key elements of BBPP
– Increased size, strategic differences complicate decision
making
Slide 29
Next Steps – Summer 2004
• July 23 – Post draft report on comments received
today & preliminary recommendations
• Aug. 6 – Closing date for comments on draft report
• Week of Aug. 15 – Stewardship Ontario Governance
Committee to review draft report; post preferred
option(s)
• Aug. 25 – Webcast & public consultation on options
Slide 30
Next Steps – Fall 2004 & Beyond
• Early September – Governance Committee
to review comments; recommendations to
Stewardship Ontario Board of Directors
• September/October – Recommendations to
WDO Board of Directors
• Selected governance model takes effect by
next Annual General Meeting (June 2005)
Slide 31
Your comments, please!
Slide 32
Geoff Love
Market Development
Slide 33
Overview of Market Development
1. Approved BBPP on market development
2. Market development progress; where we
are relative to BBPP targets
3. Your thoughts on how to proceed on market
development
Slide 34
Market Development & Targets
The program will:
• Include targets for overall
quantity of Blue Box waste to
be diverted …, & material
specific targets for Blue Box
waste to be captured …;
• Include a plan, with funding
provisions, outlining activities
to develop & promote
products that result …
From Minister of
Environment’s
September 2002
request for Blue
Box Waste
Diversion Program
Slide 35
BBPP Market Development
Three core elements in market development
strategy in approved BBPP:
1. Public-private Green Procurement
initiative
2. Targeted Market Development Investment
program for recycled glass
3. Market Development Plans for others as
needed to meet targets
Slide 36
Market Development Goals
1. Support developing capacity to use all
recovered Blue Box materials.
2. Promote enhancement of recovered material
value.
3. Enhance material recovery to meet targets
(where markets are the barrier).
4. Reduce overall Blue Box Program costs.
Slide 37
Market Development Principles
Guiding principles:
1. Stewardship Ontario to invest in market
development in partnership with others.
2. Stewardship Ontario’s investments to be
linked to material specific targets;
– support end markets for targeted tonnes at
next least cost.
Slide 38
Principles (con’t)
3. Avoid cross-subsidizing material-specific
market development.
4. Implement a Request for Proposal/
competitive bid process to allocate
market development funds.
Slide 39
Glass Market Development
Investment Program
1. Implementation Projects: longer term
– Up to $2 M (from glass Stewards) for 2004/05
– REOI posted on website (7 responses)
– MacViro retained to review & evaluate REOIs
– Initiating meetings with GTA municipalities,
re: mixed glass tonnes
– Detailed RFP for qualified applicants (fall/winter)
Slide 40
Glass (con’t)
2. Glass Business Planning/Feasibility Study:
nearer term
– $500K business planning & feasibility study fund
to support projects up to $25K (matching funding
basis)
– ReMM retained to help develop funding
guidelines & identify priority projects (increased
tonnes and/or reduced costs)
– Plan to post guidelines - late July; first project
funds expected in fall 2004
Slide 41
Green Procurement Update
• Program Goal: demand pull for Blue Box
materials (reduce costs)
• Initial design considerations (from BBPP):
– Voluntary; not labeling driven
– Public-private joint initiative; not to re-invent wheel
– Results driven
– Consider codes/best practice promotion approach
Slide 42
Green Procurement Update (con’t)
• “Visioning” workshop: June 22
– 4 expert speakers
– Technical exchange with London Remade, re:
lessons learned from Green Procurement program
– Workshop report on website (July 19)
• Green Procurement Business Plan to
Stewardship Ontario Board, mid September
Slide 43
Market Development: Others
• Market development investments tied to
material specific targets (5 year program)
• WDO’s Cost Effectiveness Committee report
recommended considering future market
development activities (not yet approved)
Slide 44
WDO’s Cost Effectiveness
Committee Considerations
1. Prepare/adopt green procurement protocols
2. Assess additional market development
levies to support low revenue materials
3. Analyze alternative glass markets/
investigate glass colour sorting technologies
4. Investigate including composite cans/
expand polycoat materials
Slide 45
Cost Effectiveness
Considerations (cont’d)
5. Start cost & quality analysis; single stream
recycling
6. Assess impact of increasing recovery of
“other household papers” on paper markets
7. Investigate cooperative marketing service
8. Implement mixed plastic & plastic film RFQs
Slide 46
Current Recovery Rates
2001
2002
Projected
Generation
Actual
Reported
Recovery
Estimated
Recovery
Rate
Projected
Generation
Actual
Reported
Recovery
Estimated
Recovery
Rate
(tonnes)
(tonnes)
(%)
(tonnes)
(tonnes)
(%)
(tonnes)
(%)
724,100
391,435
54.1%
732,000
409,754
56.0%
18,319
4.7%
Paper Packaging Total
325,400
134,822
41.4%
332,300
134,980
40.6%
158
0.1%
Plastics Total
232,200
26,989
11.6%
238,700
31,928
13.4%
4,939
18.3%
Steel Total
67,900
32,582
48.0%
69,100
33,472
48.4%
890
2.7%
Aluminum Total
28,100
10,875
38.7%
27,000
10,776
39.9%
(99) -0.9%
Glass Total
176,300
102,552
58.2%
179,400
106,097
59.1%
3,545
3.5%
PACKAGING TOTAL
829,900
307,820
37.1%
846,500
317,253
37.5%
9,433
3.1%
1,554,000
699,255
45.0%
1,578,500
727,007
46.1%
27,752
4.0%
Material
Change 2001 2002
PRINTED PAPER
Printed Paper Total
PACKAGING
TOTALS
Similar increase indicated from 2003 Datacall
Slide 47
2006 Target Recovery (50%)
2006
Material
Proposed
Target
Recovery
Proposed
Target
Recovery
Rate
(tonnes)
(%)
(tonnes)
(%)
60.1%
56,746
13.8%
Increase in
Recovery over 2002
PRINTED PAPER
Printed Paper Total
466,500
PACKAGING
168,600
47.9%
33,620
24.9%
Plastics Total
36,900
14.6%
4,972
15.6%
Steel Total
43,100
58.8%
9,628
28.8%
Aluminum Total
14,000
49.0%
3,224
29.9%
Glass Total
142,600
75.0%
36,503
34.4%
PACKAGING TOTAL
405,200
45.2%
87,947
27.7%
TOTALS
871,700
52.1%
144,693
19.9%
Paper Packaging Total
Total
Increase:
~ 20% over
2002
Slide 48
Annual Increase to Reach 50%
2006
Proposed
Target
Recovery
Proposed
Target
Recovery
Rate
(tonnes)
(%)
(tonnes)
(%)
466,500
60.1%
14,300
3.5%
168,600
47.9%
8,400
6.2%
Plastics Total
36,900
14.6%
1,300
4.1%
Steel Total
43,100
58.8%
2,500
7.5%
Aluminum Total
14,000
49.0%
800
7.4%
Glass Total
142,600
75.0%
9,100
8.6%
PACKAGING TOTAL
405,200
45.2%
22,100
7.0%
TOTALS
871,700
52.1%
36,400
5.0%
Material
Annual Increase
in Recovery over
2002
PRINTED PAPER
Printed Paper Total
PACKAGING
Paper Packaging Total
Annual
increase
similar to
recent years
•2001 to 2002
•2002 to 2003
Slide 49
50% Recovery by 2006
900,000
800,000
700,000
glass
aluminum
steel
plastics
paper packaging
printed paper
600,000
500,000
400,000
300,000
200,000
100,000
0
2001
2002
2003
2004
2005
2006
Similar increase to 2003 Datacall
Slide 50
Stewards’ Reports & Generation Estimates
Material
Newsprint
Catalogues & Magazines
Other Printed Paper
Corrugated Cardboard
Boxboard
Laminants
Plastic Film
Steel
Aluminum
Non-LCBO Glass
LCBO Glass
Steward Reports
Compared to BBPP
Generation Estimates
Low
High
Low
Low
High
Low
Low
Slightly High
Slightly High
Low
High
• Registration of
Stewards &
verification of
reports ongoing
• Revisions only if
Stewards reports
substantially
complete and/or
supported by
waste audits
Slide 51
Some issues to consider…
Slide 52
Market Development Required?
• Are additional market development initiatives
required to meet material specific recycling
targets & to improve material revenues?
Considering:
– increases in recovery required (5% per year)
– recent increases in recovery
– current & projected market capacity
– trends in management, e.g., greater commingling
Slide 53
If additional Market Development …
What Strategies?
• Green procurement?
• Cooperative marketing?
• What materials are a priority & what are the next
steps?
– Plastics?
• Focus on all bottles only or include other plastic packaging?
– Other paper?
– Glass - are current initiatives enough?
– Metals?
Slide 54
Your comments, please!
Slide 55
Comments & questions
for Webcast participants
email: [email protected]
Slide 56
Round Table Discussion
•
Options
1. Breakout to 2 one-hour Round Table discussions
2. Open, full audience discussion on both issues
Slide 57
THANK YOU!
See you at the August 25
Consultation on Options
Slide 58