1 MHSW Product Stewardship in Ontario Product Care’s Industry Stewardship Plans MWA Spring Workshop - Hockley Valley Resort May 14, 2014 Delphine Lagourgue, Ontario Program Director, Product Care Association

About Product Care Association (PCA) Federal Non-profit Product Stewardship Association Started 20 years ago in British Columbia Program members are the ‘producers’ of legislated products – manufacturers, retailers, and distributors Develops, implements and manages 14 product stewardship programs in 8 provinces in response to regulation, on behalf of industry

PCA is seeking approval for two Industry Stewardship Plans (ISPs) pursuant to section 34 of the Waste Diversion Act, 2002 for: Pesticides, Solvents, and Fertilizers (PSF) Paint and Coatings Both plans were submitted September 9, 2013 to WDO. ISPs now being revised based on feedback received during consultations. Ontario Industry Stewardship Plans (ISPs)

Letters of Intent Received Current Level of Steward Support (by volume in kg) Pesticides1092% Solvents2451% Fertilizers689% Paint2990% Total6988%* * Weighted Average ISP Support from PSF and Paint Stewards Support received from the Canadian Paint and Coating Association (CPCA) and the Canadian Consumer Specialty Products Association (CCSPA). Letters of intent from stewards continue to be received

It is the intention of PCA to maintain important elements of the existing MHSW program operations for the ISP products in order to achieve a smooth transition, including: Municipal compensation: Assume all existing municipal collection site agreements and municipal compensation models for the ISP products. Collection, transportation and processing standards: PCA intends to adopt the current collection, transportation and processing standards as developed by SO. Collection System: Maintain the existing municipal and return to retail collection systems, including municipal /service provider relationships. Labpack methodology. PCA will continue to use the current methodology for PSF products. Incentive payment model (MDT&PIP) for transportation and processing of depot collected paint will be continued and all SO approved service providers will be carried over into the ISP system. Overview of Product Care’s ISPs

Municipal Outreach RPWCO – PCA presented on October 28, 2013 and March 18. MWA (PCA has joined MWA MHSW committee) May 2013 Annual meeting October 9, 2013 MHSW committee meeting October 19, 2013 general meeting (Barrie) March 19, 2014 update provided JAMTAG at AMO office – PCA presented on November 4, 2013 SO/PCA joint communication to municipalities on December 3, 2013 In person meetings: GuelphCounty of PeterboroughCity of London Halton RegionPeel RegionMunicipality Thames Centre York Region Durham RegionTownship of Malahide City of PeterboroughNorthumberland CountyDufferin County City of BarrieSimcoe CountyBlue Mountains City of OrilliaDistrict of Muskoka

The current MHSW contract with SO specifies: Hourly rate for depot collection Cost sharing for commingled products (PS&F) Tonnage rate for event collection Proposed transition by PCA: PCA takes over MHSW contract obligations for ISP products As a result, PCA pays municipality: 81.7% of hourly depot rate Share of commingled product costs for ISP products Agreed event tonnage rate for ISP products The Municipal MHSW Agreements

Compensation model for municipal MHSW Collection Depot Collection System Event All costs Collection $Transportation/Process $ Paint ISP hourly rate 81.7%* ISP pays service providers directly by incentive system ISP pays muni specified $/tonne regardless of product PS&F ISP ISP pays muni % share of actual costs (products are commingled with non MHSW Phase 1 products) Other phase 1 products remaining in IFO hourly rate 18.3% SO pays service providers by incentive system SO pays specified $/tonne *paint 75.9%, solvents 5.3%, pesticides 0.3% and fertilizers 0.2%

PCA intends to: Replicate, improve and simplify if possible, the data entry systems used by Municipalities. Reduce the turnaround time between claim submission and payment and offer electronic fund transfer payment. Consult with municipalities to review required supporting documentation. Collaborate with Municipalities, WDO and other IFO/ISO to agree on a common data upload format. Municipal Reporting / Claims

PCA plans to work with AMO, RPWCO, MWA to reach all ON Municipalities Transition period communications and consultations with municipalities through monthly meetings and webinars: Pre-effective date Continue consultation with municipalities on supply chain transition Review documentation to transfer municipal contract obligations to PCA Development of reporting and claims system Analysis of supporting documentation requirements Month 1 Distribute documentation for transfer of municipal contract obligations Ongoing development of reporting and claims system Month 2 Review of proposed reporting and claims system and supporting documentation requirements Consult on supply chain transfer steps Month 3 Complete preparation for ISP effective date including: Reporting system registration and testing Other transition step requirements Consultation During Transition

WDO completes review of current submissions relating to PCA ISPs. PCA revises and finalizes updated ISPs following Webinar #3 including Transition Plan based on WDO Transition Plan Guide. ISPs considered by WDO Board (WDO Board date unknown). If ISPs are approved, WDO sets an effective date. Not less than 3 months between approval and implementation date. Implementation Timing

A commitment to easing the transition by offering: No change to municipal MHSW compensation. No changes to the municipality - service provider relationship. Work closely with municipalities and their associations through a transition committee. A commitment to optimizing the program by offering: Ongoing consultations to improve efficiencies and overall program operations. Continuous improvements and simplification regarding claims submission, reporting, supporting documentation and promptness of payments. Direct, personal support and an openness to supporting new innovations. Transparency and fairness in all program operations. Summary

Thank You Further Questions? Please contact PCA: Delphine Lagourgue: