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Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

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Page 1: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led
Page 2: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Northwest Product Stewardship Council Delegation

October 2, 2007Northview Golf & Country Club

6857 168th Street Surrey, British Columbia

Industry-Led StewardshipBC Government’s Approach

Kris OrdManager Community Waste SectionBC Ministry of Environment

Page 3: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

• Ministry’s role & regulatory framework– Outline the model, regulation and process

• Why this Policy Approach?– Key drivers

• National Overview• Current BC Programs

– Stewardship Program Expenditures– Environmental Results

• Future Direction on Process & Product Selection– What’s next in B.C. ?– Candidate Product List

• Questions?

Presentation Overview

Page 4: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Facts about British Columbia• Located on the west coast of Canada

• Population is 4.3 million (Canada’s total population is about the same as California’s)

• 3rd largest province in Canada

• Produces about 12% of the country's total GDP

• Future host of 2010 Olympic and Paralympics Winter Games

Page 5: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Ministry of Environment’s Role…

Ministry provides leadership in environmental management through:

• legislation,

• programs, and

• compliance activities.

Page 6: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Our Policy for Industry-led Product Stewardship

• Based on OECD’s Extended Producer Responsibility (EPR) model…

“A management system based on industry and consumers taking life-cycle responsibility for the products they produce and use”

• Shift away from government-managed, taxpayer-financed waste management programs

Page 7: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Life Cycle PerspectiveScope of conventional producer responsibility

Scope of extended producer responsibility

Design

Manufacturing

Distribution

Waste Mngt

Use

Producer: manufacturer/brandowner, first importer

Slide courtesy of Karen Asp, Gartner Lee

Page 8: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Recycling Regulation (2004)• Results based regulation

• Provides producers with flexibility to meet environmental outcomes

• Industry must consult with stakeholder on their plan

Page 9: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Why We Do It This Way• In line with government direction - move towards results-based

legislation

• Focus on environmental outcomes not operations

• Create level playing field

• Provide flexibility in planning – one size doesn’t fit all

• Ensure transparency – require public consultation and annual reports on operational and financial aspects

• Provide flexibility for producers – their design or option to follow prescriptive Part 3 section

• Ensure everyone has input through public consultation

Page 10: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Key Drivers• Premier’s and Cabinet’s direction/goals

• Input from ENGOs, local governments and industry

• Willingness of industry

• Federal EPR initiatives – Canadian Council of Ministers of the Environment (CCME) EPR Task Force

• Other jurisdictional initiatives

• Toxicity

• Volume

• GHG Reductions

Page 11: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

National Overview

• Across Canada… – BC leads the way with now 9 programs.– Alberta and Saskatchewan have 6– Ontario and Manitoba have ambitious agendas

• CCME Extended Producer Responsibility Task Group– Action Plan for EPR

– Packaging

Page 12: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Current Programs1. Batteries (gov’t program)

2. Beverage Containers

3. Pharmaceuticals

4. Paint

5. Pesticides

6. Gasoline,

7. Solvents and flammable liquids

8. Tires

9. Used Oil, Containers and Filters

10. Electronics

Page 13: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Batteries• Not regulated under the Recycling Regulation but

under the Hazardous Waste Regulation• Products include vehicle lead acid batteries• Administered by BC Government• Recovery rates – 98%,

(high recovery driven by high metal prices)

Page 14: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Beverage Containers• Products include alcoholic and non-alcoholic beverage containers • Deposit-refund system• Overall high recovery rates – 84% for 2005 – 2006• Agencies Responsible

– Encorp. Pacific http://www.encorpinc.com/cfm/index.cfm– Brews Distributing Limited http://www.brewers.ca/

Cool Facts about Beverage Container Recycling• 50 % aluminium from cans is recycled at least once• 14 recycled PET bottles = 1extra large T-Shirt• 3700 recycled two litre beverage containers = 150 fleece shirts = one barrel of oil saved

Page 15: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Electronics• Products include computers (and peripherals), desktop

printers and televisions• Agency responsible – Electronic Product Association of BC

Status http://www.epsc.ca/Program Operations – Under Contract with Encorp. Pacific

– Regulated in February 2006– New plan submitted February 2007– Program Implemented August 2007

• Recovery rates – to be determined…

Page 16: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Paint – Product Care• Products include latex, oil and solvent-based paints and

stains for commercial and household use• Agency responsible - Product Care Association http://

www.productcare.org/

• Status – revised plan approved July 16, 2007

• 2005 recovery rates – – Paint – 2,164,042 L– Aerosols – 17,360 L

Page 17: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Paint – Tree Marking

• Products include paints and stains in aerosol containers but not industrial, automotive or marine anti-fouling applications

• Agency responsible Tree-Marking Paint Stewardship Association (TSA)http://www.treepaint.ca/

• Status – submitted revised plan for approval• 2005 recovery rates –

– 141,121 containers processed

Page 18: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Pharmaceuticals• Products include all unused or expired drugs as

defined in the Food and Drugs Act (Canada)• Agency responsible – Post-Consumer

Pharmaceutical Stewardship Associationhttp://www.medicationsreturn.ca/home_en.php

• Status – submitted revised plan for approval• 2005 recovery rates –

– Over 80% pharmacies participating– 18,012 kg unused medications collected

Page 19: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Residuals• Products include pesticides, gasoline, solvent and

flammable liquids• Agency responsible – Product Care Association

http://www.productcare.org/

• Status – revised plan approved July 16, 2007 • 2005 recovery rates –

– Flammable liquids/gasoline – 54,386 L– Pesticides – 7,656 L

Page 20: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Tires • Products include pneumatic or solid tires designed for use

on a motor vehicle, farm tractor, trailer or other equipment• Agency responsible – Tires Stewardship BC

www.tirestewardshipbc.ca

• Status– New plan approved September 2006– Program implemented January 2007

(transfers government program to industry)

• Recovery rates – over 90%

Page 21: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Used Oil, Filters and Containers

• Products include lubricating oil, oil filters and the empty oil containers

• Agency responsible – BC Used Oil Management Associationhttp://www.usedoilrecycling.com/en/province.aspx?prov=2

• Status – revised plan due October 2007• 2005 recovery rates –

– Oil – 73%– Filters – 81%– Containers – 51%

Page 22: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Stewardship Program Expenditures – Saves Govt $

Province-wide Program 2005 Expenditures ($)

Beverage containers – non-alcohol $ 55,676,237

Electronics no data yet

Paint, Gasoline, Pesticides, Solvents & Flammable Liquids

$ 4,527,517

Pharmaceuticals $ 225,000

Tires no data yet

Used Oil, Containers & Filters $ 876,662

Total $ 61,305,416

Page 23: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Environmental Results

• In 2005, some of what was diverted from the landfill includes…– 772 million non-alcohol beverage containers

– 3.8 million tires

– 48 Million litres of oil

Page 24: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Vision for EPR Future

• Our Ministry goal is to add two new products to the Recycling Regulation every three years

• Work with other jurisdictions to harmonize EPR programs

• Work with producers to foster design for the environment and reduce GHG emissions

Page 25: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

How Are New Products Added

1. Scoping phase - research

2. Policy intentions paper phase – develop, consult on and finalize policy

3. Drafting phase – draft legislation

4. Implementation phase – training, guidelines etc

Page 26: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

What’s Next in BC

• Ministry Service Plan - add two new product categories every three years.

• Select two products from candidate list • Fall 2007 - Release a policy intentions paper for public

consultation on the selected products • Spring of 2008 - prepare amendment to the Recycling

Regulation for government consideration • 2009 - Industry will develop a plan and launch program.

Page 27: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Candidate List of ProductsNew Product Categories• Antifreeze and hydraulic fluid• Batteries (alkaline, lithium, lead acid, etc)• Light Bulbs (fluorescent, incandescent, LED, etc.)• Mercury containing products (switches, thermometers, thermostats,

medical equip., etc) • Packaging (paper, plastic, metal, glass)**• White goods (fridge, stove, cfc containing, etc.)• Pool and photographic chemicals• Furniture and textiles• Construction and demolition waste• Automobiles**phased approach

Page 28: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Candidate List of Products (2)Expand Existing Product Categories• Electronics **• Paint • Pesticides • Solvents and other flammables • Pharmaceuticals

**phased approach

Page 29: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Kris Ord Manager, Community Waste [email protected]

David Lawes Tires, Electronics, CCME Packaging

[email protected]

Bob Paul Waste Reduction Initiatives [email protected]

Lyn Smirl Batteries, Oil, Tree-Marking Paint

[email protected]

Jenn Wilson Beverage Containers, Pharmaceuticals, Product Care (paint and residuals)

[email protected]

Our Product Stewardship Team

Page 30: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Thank you … Any Questions?

Page 31: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Beverage Containers • Regulatory requirements - Schedule 1 of Recycling Regulation• Definition of beverage exempts milk/substitutes• Minimum Deposit/Refund legislated:

1L or less non-alcoholic beverages - 5 cents1L or less alcoholic beverages -10 centsMore than 1L for any beverage - 20 cents

• Return-to-Retail limit of 24 containers/person/day of containers sold• Annual report requires independently audited financial statements

for:• revenues and expenditures associated with visible fees, and • all deposits/refunds paid

• Regulation states a 75% recovery rate for beverage containers

Page 32: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Stewardship Agencies

• Encorp manages LDB containers under contract• LDB in process of transitioning producer responsibility to the

remaining stewardship agencies

Stewardship Agency

Containers Managed Approx.Market Share

2005 Recovery Rate

Encorp Pacific (Canada)

all non-alcoholic beverage containers 60% 73%

Liquor Distribution Branch (LDB)

wine, spirit, non-refillable beer, cider and cooler containers

10% 89%

Brewers Distributors Ltd. (BDL)

refillable glass bottles and aluminum cans for domestic beer, ciders and coolers

30% 93%

Page 33: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Collection System

• Consumers have choice of retail, depots or blue box/bag (forgo refund)

• Stewardship plan identifies container redemption facilities• Encorp - 170 licensed depots (some also pick up from retailers)• LDB – retail stores (government liquor stores are transitioning to

24/person/day) and contracts with Encorp depots• BDL – retail stores and contracts with a few Encorp depots

Page 34: Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led

Fees and Deposits

• Three sources of revenue by category:– Sale of recovered materials– Unredeemed deposits– Visible container recycling fee (CRF), if revenue from first two

sources is not enough to pay costs• Producers pay deposits and CRF to agencies, pass on to retailers,

who recover from consumers