Beverage Container Recovery in Ontario: Achieving Greater Performance and Sustainability

Transcription

1 Beverage Container Recovery in Ontario: Achieving Greater Performance and Sustainability Draft CBCRA Industry Stewardship Plan for Submission to Waste Diversion Ontario September 5, 2013 i

2 Table of Contents 1 Glossary of Key Terms and Acronyms Key Terms Acronyms Introduction The Need Program Objectives CBCRA Program Benefits Designated Materials Overview of Used Beverage Container Recycling at Home Overview of Used Beverage Container Recovery Away From Home Ontario s Overall Beverage Container Generation and Recovery Program Design Materials Management At Home Collection Channel Northern and First Nations Communities Municipal Support Payments Technical Support Away from Home Collection Channel Service Providers CBCRA Integration Payment CBCRA Events Team Schools and Post-Secondary Education Institutions End-markets Communications, Promotion and Education Current State of Awareness Extensive, Dynamic and Integrated P&E and Communications P&E Implementation Plan P&E Anti-Litter Campaign ii

3 5.5 Research and Development Financial and Human Resources Summary Program Costs Elements and Fee Setting Methodology Program Performance Annual Collection Targets Performance Measurement and Reporting System Program Governance Model Transition Plan Roles and Responsibilities Appendices Appendix A: Current CBCRA Participants in the CBCRA Manitoba Program Appendix B: Draft ISP Participant Agreement Appendix C: Letter of Intent to participate in the ISP Appendix D: Key Stakeholders and Program Participants Potentially Impacted Appendix E: P&E Implementation Plan List of Tables Table 1: Baseline beverage container generation and five year generation projections... 8 Table 2: Residential beverage container and secondary beverage packaging recovery performance Table 3: Estimated away from home beverage container recovery performance Table 4: Ontario s used beverage container and residential secondary beverage packaging recovery performance Table 5: Year One CBCRA budget Table 6: Baseline beverage container and secondary beverage packaging generation and recycling performance Table 7: Five year recovery targets iii

4 1 Glossary of Key Terms and Acronyms 1.1 Key Terms Away From Home Generation Away From Home Recovery Available for Collection Blue Box Program Plan (BBPP) Collection Channel Diversion Generation Industrial, Commercial & Institutional (IC&I) Industry Producer Responsibility (IPR) Marketing Material Consolidation Public Spaces Recovery Refers to materials generated in away from home (non-residential) locations such as offices, events, shopping malls, businesses etc. Refers to materials collected for recycling in away from home (nonresidential) locations such as offices, events, shopping malls, businesses etc. Refers to the total quantity of material available to recover through a given collection segment. Refers to the Program Plan created by Stewardship Ontario and approved by the Ministry of Environment that guides the operation of the Blue Box recycling system. Refers to a discrete set of sites that share characteristics and similar recycling profiles. Examples of different collection segments are parks, restaurants, convenience stores, and government buildings. See Recovery below. Refers to the total quantity of material sold into market. Refers to sites that are operated by an industrial, commercial or institutional entity. Examples include office buildings, arenas, restaurants, hospitals and transit hubs. Refers to Individual Producer Responsibility (IPR), where financial responsibility and liability for responsible end-of-life management of products lies with the individual companies/producers who create these products, or import them into Ontario. Refers to the shipping of processed used beverage containers to a downstream market at either a positive or negative value. Refers to specific points where collected used beverage containers are consolidated with other used beverage containers prior to further processing. Refers to sites that are open to the public, and typically managed by or on behalf of the government. Examples include parks, sidewalks, and fairgrounds. Refers to the proper disposal and collection of waste material for recycling. May also be referred to as diversion and is used consistently throughout the document to mean the collection of used beverage containers. 1

5 Recycling Collection Unit Secondary Beverage Packaging Service Provider Steward or Industry Stewards A container in which recyclables are placed for recycling. This includes residential Blue Boxes, barrel containers, customs bins, and carts amongst others. Recycling Collection Units can be used in residential or away from home locations. Refers to packaging used to provide beverage containers to consumers including boxes, trays, neck ring carriers, closures and overwrap. Secondary beverage packaging in this Plan refers only to secondary beverage packaging in the residential stream. Refers to a company that a municipality, business, or event has engaged to provide recycling services. May include collection sites, haulers, recyclers, etc. Individual obligated brand owner or first importer of products into the Ontario marketplace (considered the producer in Extended Producer Responsibility - EPR). Source: WDO s ISP Procedures, Appendix A. Used Beverage Containers WDO Datacall Refers to sealed ready to serve beverage containers after the contents have been consumed and the container is ready for disposal. Sealed beverage containers do not include any open cups e.g. used to serve soft drinks or coffee. Waste Diversion Ontario Datacall is a Municipal Datacall which is an annual survey of Ontario municipalities, and associations representing municipalities, to compile tonnage data on the quantity of materials diverted and disposed as well as to compile cost data for certain diversion programs, such as collection, processing and marketing of residential Blue Box materials. 1.2 Acronyms AMO B2B CARI CBA CBCRA CFIB CofA CRF HDPE IC&I Association of Municipalities of Ontario Business-to-Business Canadian Association of Recycling Industries Canadian Beverage Association Canadian Beverage Container Recycling Association Canadian Federation of Independent Business Certificate of Approval Container Recycling Fee High-Density Polyethylene Industrial, Commercial & Institutional 2

6 IFO ISO ISP MMSM MOE MRF MTS MWA NGO OFNTSC OWMA POS PET P&E RCO R&D RCC SO Industry Funded Organization Industry Stewardship Organization Industry Stewardship Plan Multi-Material Stewardship Manitoba Ministry of Environment Materials Recovery Facility Material Tracking System Municipal Waste Association Non-Governmental Organization Ontario First Nations Technical Services Corporation Ontario Waste Management Association Point-of-Sale Polyethylene Terephthalate Promotion & Education Recycling Council of Ontario Research & Development Retail Council of Canada Stewardship Ontario WDA Waste Diversion Act, 2002 WDO Waste Diversion Ontario 3

7 2 Introduction In accordance with the Waste Diversion Act, 2002 (WDA) and Waste Diversion Ontario s (WDO) Procedures for Industry Stewardship Plans, the Canadian Beverage Container Recycling Association (CBCRA) is submitting this Ontario Industry Stewardship Plan (ISP) on behalf of stewards who produce, import and distribute non-alcoholic beverage products in Ontario. CBCRA will be responsible for the management of used non-alcoholic, non-dairy beverage containers in all collection channels in Ontario. CBCRA was incorporated without share capital under Part II of the Canada Corporations Act. CBCRA s objective is to carry on its operations without pecuniary gain to its members, and any profits or other accretions to CBCRA are to be used in promoting its objectives. For income tax purposes, CBCRA qualifies as a not-for-profit organization which is exempt from income tax under Section 149(1)(l) of the Income Tax Act While CBCRA has an office in Toronto, the organization also has extensive experience with the successful recovery of used beverage containers in Manitoba, which is directly applicable to Ontario. CBCRA was founded by beverage producers and distributors in April 2010 to respond to and achieve the Government of Manitoba s mandated target of recovering 75 per cent of all beverage containers sold in that province. The proposed ISP will represent stewards who produce, import and distribute non-alcoholic, non-dairy beverage products in Ontario. It will therefore represent beverage companies that produce and package the following beverage products: Soft drinks; Water; Juice; Energy drinks; Sports drinks; and Iced teas. This ISP does not represent the producers of the following beverage products: dairy, alcohol or meal-replacement products. All CBCRA stewards participating in Ontario will be listed on a newly created public CBCRA website. CBCRA will also publish registration, reporting, CBCRA Program rules and other information on its website. The WDA was established to promote the reduction, reuse and recycling of waste materials generated in Ontario. Under Section 25 (5) the Minister of Environment requested a waste diversion program for Blue Box Waste be developed for payments to municipalities equaling 50 per cent of the total net costs incurred by those municipalities as a result of the program, which is managed by Stewardship Ontario (SO). Ontario Regulation 273/02 made under the WDA defines Blue Box Waste as waste that consists of glass, metal, paper, plastics, textiles or any combination of these materials. As such, members of the ISP have been designated as stewards under the WDO approved Blue Box Program Plan for all designated Blue Box Waste supplied into households in Ontario. Through this ISP, the participating stewards are seeking exemption from Section 31 (1) of the WDA. 4

8 CBCRA is committed to the continued support of the WDA objectives and seeks to increase the recycling performance of used non-alcoholic beverage containers through this ISP. Where the Blue Box Program Plan (BBPP) focuses on residentially-generated Blue Box Waste, this ISP proposes a broader focus to include beverage container recovery wherever generated - at home and away from home. The proposed duration of the ISP is five years, consistent with the WDO-approved BBPP. The approved ISP will be managed by CBCRA and its Ontario based contracted service provider, Reclay StewardEdge, and will seek to achieve an overall 75 per cent beverage container recycling target within five years of launch. To support all elements of the CBCRA Program, enhanced promotion and education (P&E) and other targeted recovery program elements will be a key factor in its success and will help to ensure increased used beverage container recovery across the province. CBCRA will work in close cooperation with the operators of the BBPP and other key stakeholders to build on the current residential Blue Box program and away from home collection programs that will set new performance standards for voluntary recycling programs. All of the ISP-designated materials are accepted as recyclable materials for the purposes of handling and transportation under existing Ontario 3R regulations, and are widely collected and processed as recyclable materials by municipalities and private service providers. CBCRA is not aware of any other relevant legislation or regulations that would impact on the proposed program. Beverage stewards currently subscribed to CBCRA for its program in Manitoba represent more than 95 per cent of all non-alcoholic, non-dairy beverage containers sold in that province. It is anticipated that most, if not all, of these stewards that sell products into Ontario will also subscribe to CBCRA s program in Ontario. Any and all non-alcoholic and non-dairy beverage stewards supplying these products in Ontario are also welcome to join the ISP in the future, under the same terms and conditions as the initial stewards. 2.1 The Need Many CBCRA members have been actively involved with Stewardship Ontario and have played a key role during its formative stages. CBCRA commends Stewardship Ontario for its successes in growing and stabilizing the Blue Box Program across municipalities in Ontario. However, Stewardship Ontario s mandate focuses on residential packaging and printed paper only and, as such, does not address the wider concerns and requirements of CBCRA members to improve the recovery performance of beverage container recovery across the province. Other motivations for the development of this ISP include, but are not limited to, the following: Current recovery rates for the residential stream are flat and lower than CBCRA wishes; CBCRA is committed to the continued support of the Waste Diversion Act, 2002 (WDA) objectives and seeks to increase the recycling performance of used non-alcoholic and non-dairy beverage containers through the ISP; Where the current system focuses on residentially-generated Blue Box Waste, the ISP will take a broader focus and include used beverage container recovery wherever generated - at home and away from home; Consumption of beverages away from home is increasing and increased effort is required to increase used beverage container recycling in this channel; 5

9 A desire to harmonize with other beverage industry program standards and approaches in other provinces; The ISP will build on CBCRA s experience in operating a used beverage container recovery program in Manitoba; Preparing the industry for anticipated changes to WDA in the near future; Improved effectiveness and efficiency. 2.2 Program Objectives Increased diversion of used beverage containers from disposal across Ontario The CBCRA Program will seek to achieve an overall 75 per cent used beverage container recycling target within five years of launch through improved public education and awareness and other targeted motivational efforts, and by increasing the opportunities to collect and recycle used beverage containers wherever they are consumed and disposed. This will require the Program to continuously improve consumer accessibility to recycling in multi-family as well as single-family housing dwellings, and in away from home locations. Littering of used beverage containers should also be reduced. Through increased public education and awareness about the benefits of recycling used beverage containers and increased accessibility to public space recycling collection, CBCRA is committed to reducing the amount of used beverage container litter across the province. Through this initiative CBCRA will establish a current baseline of littered containers, implement a multi-year litter reduction educational campaign and track and report on reduction performance. Accurate, province-wide tracking of used beverage container recovery Currently there is no agency or tracking system in place to monitor the true recycling rate for used beverage containers across the province. Used beverage container recovery rates reported by WDO and SO reflect only those collected under the BBPP. CBCRA will build and make available to stakeholders a comprehensive database on the generation and recovery performance of beverage containers generated away from home. This will be combined with more detailed data on used beverage container recovery from the residential waste stream which will allow all stakeholders to monitor the true recycling rate for used beverage containers in Ontario. Effective and efficient program delivery In order to deliver an effective and cost-efficient program, CBCRA will place significant emphasis on: Leveraging existing resources CBCRA will build on and enhance relationships with existing stakeholders, and further leverage existing efforts and resources to ensure a cost-efficient program. CBCRA will work with established waste management service providers and municipalities that are already collecting and recycling used beverage containers to expand these services and to improve used beverage container recovery performance. Making strategic investments to overcome known barriers to improved performance Limited access to recycling services in some regions of the province high contamination rates and vandalism of recycling bins, are the most significant barriers to improved away from home recycling performance. CBCRA will prioritize investments to increase 6

10 opportunities to recycle, increase awareness while continuously improving the quality of recovered material. Equitable and transparent funding In Year One, CBCRA participants will be charged a container recycling fee (CRF) for each container supplied into the Ontario market to finance the costs associated with the Program. The funds generated will be used exclusively to finance all CBCRA program start-up, communication and education directed to consumers, operating and management costs in the Province of Ontario. CBCRA will closely monitor and assess the costs associated with managing each of the packaging materials managed under the first two years of the program and in no later than Year Three of the program will modify the CRF to reflect the costs incurred to manage each specific packaging type as follows: Annual fee setting and review As a not-for-profit organization, CBCRA will ensure sufficient cash flows to maintain program operations which recognize key program timing and seasonality issues. All CRFs collected within the Ontario ISP, will remain in Ontario. During its first year of operation, CBCRA will initiate activity-based costing by material stream for the away from home stream. This will allow for material specific fee setting in future years that reflects the away from home costs in addition to the material-specific Blue Box fees. Based upon Ontario specific operating experience and planned program investments, CBCRA will re-assess the amount of the CRF on an annual basis. Participants will be notified of any changes in the CRF at least 90 calendar days prior to any CRF changes. 2.3 CBCRA Program Benefits The CBCRA Program will provide significant benefits for Ontario:: Increased used beverage container recovery across the province; Increased revenues for municipalities, waste management companies and recyclers as a result of increased recovery of aluminum and PET; Increased overall recovery of other packaging and printed papers resulting from the halo effect created by the comprehensive CBCRA Program P&E; Positive effect on provincial economy through creation of direct and indirect employment resulting from program expenditures; Increased business opportunities for waste haulers and recyclers through increased service locations and volumes of recovered materials; Reduction of litter as a result of the Program s anti-litter campaign and increased used beverage container recycling accessibility; Demonstrated industry leadership to increase recycling in the IC&I sector as well as from households; Harmonization with other provincial programs and simplified reporting for participating stewards. 7

11 3 Designated Materials The CBCRA Program will include all non-alcoholic, non-dairy beverage containers supplied into the Ontario market by the participating CBCRA stewards. Specifically, this includes all consumer primary beverage container packaging including PET, HDPE, glass, metal, polycoated cartons, and pouches. The Program will also continue to pay fees to Stewardship Ontario for secondary beverage packaging currently managed under the BBPP including boxes, trays, neck ring carriers and overwrap. Given that it is not practical to exclude similar materials from non-participating stewards, the CBCRA ISP material management system will also manage similar beverage container materials supplied into the Ontario market by parties that are not participants in the ISP. Beverages are consumed almost everywhere; at home, in foodservice establishments, recreational facilities, places of business, public gatherings, events and while on-the-go whether commuting in a vehicle or while walking. Therefore, used beverage containers are generated in almost every household in the province and in many locations outside of the home. For the purpose of this ISP, the generation and flow of beverage container packaging can be simplified to two main categories: 1) From households: where the used beverage container and secondary beverage packaging is available for collection through municipally-managed recycling programs. CBCRA will enter into an agreement with Stewardship Ontario and WDO to pay material-specific fees applicable to management of the beverage containers and related secondary beverage packaging managed under the Blue Box Program Plan. In addition, CBCRA will directly manage additional initiatives and programs to promote higher capture rates of used beverage containers than are currently being achieved under the BBPP. 2) Away from home: including but not limited to industrial, commercial and institutional (IC&I) locations, public buildings, for example arenas, pools, and outdoor public spaces such as a parks, streetscapes or community and outdoor events. CBCRA will directly manage a comprehensive, province-wide program to recover used beverage containers from all of these channels. Beverage products included in this ISP are distributed to every region of Ontario through hundreds of thousands of sales points including: Thousands of retail stores; Thousands of vending machines; Tens of thousands of restaurants, bars, cafeterias, and vendors in offices, institutions, factories, sports and entertainment facilities; and Through public festivals and events held across the province. The estimated generation of used beverage containers and their associated secondary packaging (boxes, overwraps, neck-rings, etc.) for the baseline year and the first five years from CBCRA Program launch are presented in the table below: Table 1: Baseline beverage container generation and five year generation projections 8

12 Consumption Channel Baseline Generation (Tonnes) Year One Generation (Tonnes) Year Two Generation (Tonnes) Year Three Generation (Tonnes) Year Four Generation (Tonnes) Year Five Generation (Tonnes) At Home 63,200 65,400 67,600 69,900 72,300 74,700 Away from Home 15,400 15,900 16,500 17,000 17,600 18,200 Total Containers 78,600 81,300 84,100 86,900 89,900 92,900 Secondary Beverage Packaging in the Residential Sector 18,300 18,900 19,600 20,300 20,900 21,700 Total Beverage Related Packaging 96, , , , , ,600 CBCRA has operated a similar program in Manitoba since Stewards are required to submit data on all quantities of packaging supplied into the Manitoba market and the efficacy of this data is verified through reviews of reported data and a third party verification process managed by CBCRA s auditors, Price Waterhouse Coopers. The majority of ISP stewards operate in both Manitoba and Ontario and for initial planning purposes; we assume that per capita generation is similar in the two provinces. The generation data within Table 1 is based on supplied to the market data reported to CBCRA in Manitoba for 2012 and extrapolated to the Ontario population. The percentage of material generated at home versus away from home is based on an IPSOS study conducted in Ontario in 2012 by the beverage industry. For the purposes of initial ISP planning, it is assumed that there is a one-to-one ratio between the quantity available for collection and the quantity supplied into the marketplace by the CBCRA stewards. Therefore, Table 1 shows both the quantity of material entering the marketplace and the quantity available for collection. 3.1 Overview of Used Beverage Container Recycling at Home The largest volumes of beverage containers are generated at home where comprehensive systems are in place across Ontario to collect and recycle the used beverage containers and secondary beverage packaging. However, there is growing evidence through research that consumer habits are changing and a growing volume of beverage containers are consumed and available for collection away from home. The away from home systems for collecting and recycling used beverage containers are less accessible and less comprehensive and involve more complex arrangements than residential collection systems. At home, recycling typically involves a consumer s local municipality providing a long standing, consistent and relatively simple collection program operated directly or through a contracted service provider. Financial responsibility for these programs is currently shared between municipalities and Stewardship Ontario, acting on behalf of stewards. 9

13 In 2011, according to the WDO 3Rs Datacall, there were 231 municipal (including First Nations) residential Blue Box Programs serving 394 of the 444 municipalities (including 19 First Nations) in Ontario. 1 These 231 municipal residential Blue Box Programs provide services to just over 5 million households (5,013,181), with 4,808,387 single and multi-family households receiving curbside collection services. Additionally, these households may also have access to depot recycling services. Of the total number of households with recycling service, 204,794 households are provided with access to depot recycling only by their municipality. 2 There is an increasing trend towards multi-family buildings receiving direct commercial waste and recycling services. For example, in 2008 Toronto provided recycling service to approximately 95 per cent of the multi-family building units and in 2011 this decreased to approximately 85 per cent of multi-family units. 3 This has largely been a result of a new volumebased rate structure and different service levels that were introduced by Toronto in An estimated 27 per cent of the 5 million households assumed to be receiving recycling collection services are multi-family households. Recycling tonnage information from these premises is generally not available to municipalities as private contracts are arranged between the property management company and the contractor. Therefore, tonnage from multi-family household dwellings is often not reported through the WDO Datacall process. The following table presents a summary of the projected beverage container generation and recovery for Ontario. The material-specific recovery rates are based on published information from Stewardship Ontario that have been applied to the projected generation of beverage containers available for collection from at home residential sources. Table 2: Residential beverage container and secondary beverage packaging recovery performance Consumption at home Generation (tonnes) BASELINE Recovery (tonnes) Aluminum Cans 18,892 8,199 43% PET 28,304 14,718 52% HDPE 1, % Other Rigid Plastics % Flexible Plastics % Glass 7,176 6,272 87% Ferrous % Aseptic Containers 4, % Gable Top Cartons 2, % All Beverage Containers 63,212 31,423 50% SECONDARY BEVERAGE PACKAGING IN THE RESIDENTIAL STREAM Recovery Rate (%) Discussion with Renee Dello, City of Toronto, August 14,

14 Consumption at home Generation (tonnes) BASELINE Recovery (tonnes) Cardboard 6,550 5,620 86% Paperboard 9,488 4,127 44% Plastic Wrap 2, % Hi-Cone % Total Secondary Beverage Packaging in Residential Stream 18,326 9,939 54% TOTALS 81,539 41,362 51% Recovery Rate (%) 3.2 Overview of Used Beverage Container Recovery Away From Home Waste and recycling collection and management services for commercial buildings, events, hospitals, and universities (away from home locations), are generally contracted to private sector service providers. However, there is little information available for the total number of IC&I establishments across Ontario that are participating in used beverage container recycling programs. The reasons for this include: There is no single provincial or municipal authority that oversee diversion performance from the IC&I sector; There are no regulatory requirements for companies providing waste and recycling collection and processing services to track and report volumes handled to the government or the WDO; Ontario Regulation 102/94 requires selected IC&I facilities such as shopping malls, office buildings, hotels, educational institutions and manufacturing facilities to conduct Waste Audits and Waste Reduction Work Plans. 4 While the Regulation has been in place for many years, there are no published results or performance measures in relation to its effectiveness; Approved waste management facilities can be required under their Certificate of Approval (CofA) to report volumes received and processed to the Ministry of Environment (MOE). However, this rarely happens in practice and any information reported is not consolidated. Due to the lack of data available for the away from home recovery information the estimates in Table 3 below are made on the basis of an IPSOS study conducted in Ontario in

15 Table 3: Estimated away from home beverage container recovery performance Consumption BASELINE Generation (tonnes) Recovery (tonnes) Aluminum Cans 4,723 1,322 28% PET 6,759 1,893 28% HDPE % Other Rigid Plastics % Flexible Plastics % Glass 2, % Ferrous % Aseptic Containers 1, % Gable Top Cartons % All Beverage Containers 15,408 3,981 26% Recovery Rate (%) 3.3 Ontario s Overall Beverage Container Generation and Recovery Ontario s residential and away from home used beverage container and secondary beverage packaging recovery performance is presented below in Table 4. The recovery rates within Table 4 show that based on the current recycling systems in place, Ontario is only achieving a 45 per cent recovery rate for beverage containers when the secondary beverage packaging from the residential sector is included the recovery rate is 47 per cent. CBCRA has set a 75 per cent recovery target within five years of Program launch. 12

16 Table 4: Ontario s used beverage container and residential secondary beverage packaging recovery performance TOTALS BASELINE Generation (tonnes) Recovery (tonnes) Recovery Rate (%) Aluminum Cans 23,615 9,522 40% PET 35,063 16,611 47% HDPE 1, % Other Rigid Plastics % Flexible Plastics % Glass 9,199 6,838 74% Ferrous % Aseptic Containers 5, % Gable Top Cartons 2, % All Beverage Containers 78,620 35,403 45% SECONDARY BEVERAGE PACKAGING IN THE RESIDENTIAL SECTOR Cardboard 6,550 5,620 86% Paperboard 9,488 4,127 44% Plastic Wrap 2, % Hi-Cone % All Secondary Beverage Packaging 18,326 9,939 54% TOTALS 96,946 45,343 47% 13

17 4 Program Design This section includes a description of key components of the Program design including how materials are managed, recovery at home, away from home and in Northern and First Nation communities. It also describes the technical support that CBCRA will provide, the payments to service providers to report on collected tonnes, the recovery infrastructure, Event Teams and School programs as well as the material end markets. Once this Plan is approved, a detailed Implementation Plan will be prepared and updated on an annual basis. 4.1 Materials Management Collected packaging materials will be managed primarily through existing materials recycling systems. The Canadian beverage industry is already a leader in the selection and use of recyclable materials and in minimizing the quantities of packaging materials used to deliver its products. ISP participants consider these to be issues on which they already compete, while establishing effective and efficient collection and recycling systems for used beverage containers requires industry-wide coordination, given the impracticability of collecting individual company brands. For beverage containers generated in households, the CBCRA Program will continue to support and enhance the recovery of used beverage containers and secondary beverage packaging materials from households through the existing province-wide, municipal residential collection system. Enhancements will include additional research and development activities and extensive promotion and education campaigns that are outlined below. This system and the associated participants (such as transporters, consolidators and processors) will continue to operate within existing industry and program standards. For beverage containers generated away from home, CBCRA will implement a comprehensive program that will: Maximise the use of existing infrastructure and service providers already providing recycling and waste management services throughout the province; and Provide new opportunities to recycle used beverage containers where gaps exist and consumers do not currently have convenient opportunities to recycle. A key consideration of the CBCRA program design is to seek to provide a comprehensive, province-wide recycling system which is effective, cost-efficient and which affects the marketplace in a fair manner. Therefore: CBCRA will not set-up a separate residential collection system and it will not encroach on existing business relationships within the IC&I sector. Instead it will maximize use of the residential and existing IC&I arrangements already established. The existing system and the associated stakeholders (such as transporters, consolidators and processors) will continue to operate within existing standards. Similarly, the most effective and efficient way to collect used beverage containers from households is through the existing Blue Box system; Where needed, for example, at sporting, entertainment or other publicly accessible events or to expand collection in underserviced IC&I facilities, the CBCRA Program will link these facilities or events with a list of potential registered service providers. These service providers, transporters, consolidators and processors will include private, public and not-for-profit organizations; 14

18 Should the CBCRA Program at any point need to arrange for recycling services directly, CBCRA will involve service providers through a competitive bidding process. CBCRA will develop operating standards for service providers (including transporters, consolidators and processors) contracted directly by CBCRA. All registered service providers will be required to report collected and marketed tonnages to CBCRA. CBCRA will invite all potential service providers to register with CBCRA. The key conditions for becoming a registered or approved service provider include a commitment to the standards set out by CBCRA as well as a willingness to report to CBCRA the collected tonnes of beverage containers. 4.2 At Home Collection Channel The largest volumes of used beverage containers are generated at home where comprehensive systems are already in place across Ontario to collect and recycle used beverage containers and secondary beverage packaging. At-home recycling typically involves a consumer s local municipality providing a long standing, consistent and relatively simple collection program operated directly or through a contracted service provider. Financial responsibility for these programs is shared between municipalities and Stewardship Ontario acting on behalf of stewards. CBCRA will pay the material-specific fees set by Stewardship Ontario, for the services it provides for the management of used beverage containers and secondary beverage packaging from households. CBCRA will also promote higher rates of collection of used beverage containers consumed at home by directly providing additional services (beyond those currently provided by Stewardship Ontario) including the following key elements: Provision of technical services to increase diversion rates; Research and development support to better understand: current beverage container recycling rates; the barriers to increased collection and recovery; and how they can be overcome; Increased spend on extensive, continuous earned and paid media communications and education activities across the province directed at residents to encourage increased use of the existing municipal Blue Box system. This will include annual P&E mass media campaigns specifically to promote increased collection and recycling performance from the residential sector. The level of mass media expenditure for recycling will be unparalleled in the province and will benefit all municipalities in Ontario through higher recycling participation and capture performance for all materials, from all households; details of the plan can be found in section 5. The core messages of the CBCRA campaign will be developed based on Ontario specific consumer qualitative and quantitative market research. Dedicated support for hard to reach communities such as those based in northern Ontario or within First Nation communities. CBCRA will develop and implement initiatives in conjunction with the Ontario Ministry of Aboriginal Affairs and First Nations groups as appropriate to support Northern communities. 4.3 Northern and First Nations Communities CBCRA will develop and implement initiatives to support Northern communities to enhance recycling programs put in place by SO to ensure the capture of used beverage containers. CBCRA will also work with the Ontario Ministry of Aboriginal Affairs and First Nation groups to develop and implement initiatives for First Nation communities across Ontario. Activities may 15

19 include undertaking an inventory and assessment of recycling across First Nation communities throughout Ontario. The inventory will look at current service levels to determine current levels of recycling and waste management practices and to assess gaps and potential opportunities to collect or enhance collection services for used beverage containers. 4.4 Municipal Support Payments Under the Program CBCRA will assume responsibility, on behalf of its participating stewards for payment of material specific fees set by SO for the management of used beverage containers and secondary beverage packaging under the BBPP. CBCRA supports the continuation of funding to municipalities for CBCRA used beverage containers and secondary beverage packaging within the approved BBPP. The CBCRA Program will use the existing Blue Box municipal collection and processing infrastructure and therefore will continue to make fee payments as required to Stewardship Ontario. Both parties will need to cooperate and work together on issues such as allocating the percentage of material streams that are associated with CBCRA stewards and potentially non- CBCRA beverage stewards. CBCRA will dedicate funds towards future joint studies and assessment work that have traditionally been conducted solely by Stewardship Ontario. This includes, but is not limited to, waste audits, Material Recovery Facility (MRF) audits and cost allocation work. This level of research requires the involvement and support of the municipal partners. CBCRA and Stewardship Ontario will benefit from CBCRA participation in existing communication and committee processes and systems that have been established. 4.5 Technical Support CBCRA will provide additional technical support to municipalities as appropriate to enhance used beverage container collection and processing. This enhanced support will increase capture of used beverage containers and reduce material loss in processing. Technical support will include a focus on helping known problem locations increase their recycling tonnage, for example in multi-family household buildings. A gap analysis of the current recycling services and support provided for multi-family household buildings will be undertaken to benchmark the current situation and to identify improvements to make progress towards the 75 per cent recycling target. A successful analysis will require co-operative relationships with Stewardship Ontario, municipalities and service providers. Other support that CBCRA will provide includes technical reviews of sorting and marketing practices to identify practices to improve collection rates and to ensure maximum recovery. The Program will support ongoing technical research such as conducting composition analyses of collected materials and bale audits at MRFs, to ensure accurate and updated information on the quantity of used beverage container and secondary beverage packaging found in Blue Box programs. 4.6 Away from Home Collection Channel A key focus of the CBCRA Program is to increase the support provided for used beverage container recovery in away from home locations. CBCRA has several years experience in the design, implementation and operation of away from home used beverage container recovery in 16

20 Manitoba. It will build on this experience to ensure best-in-class programs will be designed and implemented in Ontario. Data on the current recovery performance of this sector is very limited. CBCRA s initial priority will be to establish baseline recovery data from different away from home sectors: public buildings, events, public spaces, streetscapes, etc. This information will be used to establish realistic and relevant improvements to infrastructure, P&E, signage and accessibility to increase the recycling rates of used beverage containers. Locations and type of collection site operator CBCRA will increase infrastructure and accessibility at away from home locations. This will include both permanent and temporary locations and will include but will not be limited to the following types of locations: Municipal streetscapes; Municipal, federal and provincial parks; Municipal public buildings, arenas, pools, etc.; Transportation systems and hubs; Shopping malls; Hospitals and institutions; Restaurants, banquet halls, conference centres; Hotels and motels; Tourist attractions; Commercial, Federal, and Provincial Office buildings; Events; and Schools, universities, colleges and any other educational facilities. Collection site operators will include municipalities, institutions, commercial and industrial building managers. Collection location standards CBCRA will educate new collection site managers as to the minimum standards by which collected containers must be managed. All collection locations will be required to sign an agreement with CBCRA, including a commitment to collect the used beverage containers and provide them to a registered recycler/service provider. Collection locations in areas where beverage containers are sold CBCRA will prioritize increasing infrastructure in collection location areas in and near where used beverage containers are generated and consumed. For example, working with municipalities and their service providers to identify the best locations to site bins to service nearby retail outlets and foodservice establishments. Acceptance/ collection of designated products from non-cbcra stewards If similar used beverage containers from non-participating stewards or similar container types from dairy, alcohol or meal-replacement beverage products enter into the CBCRA away from home collection channel, CBCRA will accept and manage this material. Through the use of effective signage, CBCRA will seek to minimize the amounts of non-cbcra participant material 17

21 collected in the away from home channels. CBCRA will also conduct waste audits to monitor the amount of non-cbcra materials collected in the away from home channels. Provincial Parks/ Conservation Authority Program Provincial Parks and Conservation Ontario are desired partners for CBCRA to work with to assess and improve used beverage container recycling facilities in parks across Ontario thereby increasing used beverage container collection and reducing litter. Working in partnership with these organizations and others such as Ontario Parks and Tourism Ontario, visitor number information will be gathered; additionally waste audits and litter studies will also be conducted. Streetscape Locations Current streetscape recycling infrastructure on municipal sidewalks will be evaluated for effectiveness regarding recovery, contamination reduction and signage. Presently, streetscape recycling services vary depending on the municipality. Providing permanent streetscape recycling bins for used beverage containers to municipalities will offer the possibility of a standardized streetscape service throughout Ontario thereby increasing access and consistent messaging. Studies, including waste audits, will identify the composition and volumes of used beverage containers that are collected at specific sites, what currently happens to these containers and whether or not there are more efficient ways of handling these materials. Transportation Systems and Hubs Ensuring that public transportation systems have a standardised used beverage container recycling system is important for good recycling behaviour and increased recycling rates. Waste audits, litter audits and patronage information will be gathered by working in partnership with transit systems and their service providers to ensure that recycling receptacles and signage are effective. Other Outdoor Locations A variety of other outdoor away from home locations exist and the Program will work with service providers and other partners to ensure that public and private outdoor locations such as trailer parks, golf courses, recreational centres and theme parks have recycling bins in place. Additionally, CBCRA will gather data on accessibility and recovery from these locations. Indoor Locations- Leading Commercial Owners/ Managers The Program will work with IC&I organizations such as building owners, property and facilities managers of shopping malls, hospitals and other institutions, to implement used beverage container bins at these facilities. CBCRA will not prioritize supplying recycling bins to private properties that are already serviced by service providers, as CBCRA s intent is not to encroach on previously established business arrangements. However, if properties or service providers do contact CBCRA for advice or equipment, then the Program will provide free bins and signage as required. Special Events Current data on recycling rates for used beverage containers collected at festivals and events is 18

22 very limited. Therefore, a main objective of the CBCRA Events Team (please see Events Team section 4.9 for further information) will be to gather data for used beverage containers collected at festivals and events. This data will be used to help improve understanding of away from home used beverage container recycling rates and behaviours. Data will be gathered through several methods: Waste audits conducted by the CBCRA Waste Audit Team at various events and festivals across Ontario; Tonnage data from used beverage containers collected in CBCRA temporary recycling collection units provided at events and festivals; Surveys administered by the CBCRA Events Team to event hosts and festival organizers to find out more about the waste management systems they currently use; In-person surveys administered by the CBCRA Events Team to members of the public attending festivals and events to find out further information about their away from home used beverage container recycling habits; Data submitted by service providers that service events and festivals; and Explore working with Recycling Council of Ontario to gather data from events and the IC&I sector. After collecting this information during the first year of the Program, data will be analyzed and the appropriate targets set for Year Two and the applicable actions put in place so that the Events Team s activities can help to achieve these targets. The following types of organizations will also be targeted by the Events Team to work with: Concert and music festival organizers, such as Live Nation; Municipalities, such as the City of Toronto, which has an extensive year-round festival schedule; Tourism Ontario, which has extensive year round festivals; First Nation communities, such as First Nation events; Sporting events, such as marathons, triathlons and charity walks. Possible partners could include The Running Room or the Toronto Women s Run Series; Small community or religious group organizations, such as church or mosque events, or Chinese community events to ensure recycling facilities are in place. To ensure these partnerships work smoothly, the organizations contracted service providers will be informed of any special projects to ensure their cooperation. 4.7 Service Providers Service providers are a key component to the success of the Program. Municipalities, government buildings, events and other away from home locations will contract with service providers for the collection of used beverage containers. The additional collection locations and increased volumes will result in additional business for these companies should they choose to embrace this opportunity. Additionally, service providers will gain financially through participation in the CBCRA Integration Payment initiative. 4.8 CBCRA Integration Payment Municipalities provide away from home recycling collection services for a range of municipal facilities (such as city halls and administration offices, fire halls, police stations etc.), public 19

23 space locations (such as parks, baseball and soccer fields) and public streetscapes and also some public and private schools. The current WDO 3Rs Datacall reporting procedures requires municipalities to deduct certain IC&I volumes from their report. These volumes do not qualify for Stewardship Ontario funding. Therefore, used beverage containers recovered by municipalities from these generators and not reported are not being included in province-wide recycling calculations. CBCRA wants to ensure that Ontario recovery performance data can be accurately compared to other jurisdictions across Canada. CBCRA will therefore establish a reporting process for used beverage containers collected in the away from home sector by service providers, municipalities and scrap metal dealers/brokers. This will enable existing and new IC&I collection accessibility and recovery information to be integrated into the CBCRA Integration Payment initiative. Approved Program service providers will receive a financial incentive for reporting accessibility information relating to customer type on an annual basis and for reporting beverage container weights per material type on a quarterly basis. This payment will cover the administrative costs of collating and submitting data to CBCRA. The financial incentive will not, however, cover any costs relating to the operational activities such as the actual collection of used beverage containers. The incentive is intended to compensate service providers for the time and effort in tracking and reporting the accessibility, collection and recycling performance of used beverage containers they are currently managing. The first year of the CBCRA Integration Payment initiative will be dedicated to establishing baseline data. CBCRA will then be better able to: Identify current recovery rates in the IC&I sector; Set specific recovery performance goals for the IC&I sector; and Refine a targeted approach to provide support where necessary to ensure these goals are achieved. CBCRA s aim is not to encroach on the established business arrangements of service providers with their existing or future commercial customers. Instead it will work with service providers cooperatively to aggregate service and collection performance data. The CBCRA Integration Payment initiative will focus on working with registered service providers, such as processors, waste haulers, recycling processors/brokers and scrap metal dealers. To be eligible for this part of the CBCRA Program, service providers will need to register with CBCRA which includes a commitment to meeting CBCRA standards for service providers as well as reporting beverage container collection data to CBCRA. Once approved through a site visit, the service provider will sign an agreement stating they will submit used beverage container recycling data on a quarterly and annual basis through the program s webbased material tracking system (MTS), and agree to a standard of care which includes that all recyclable used beverage containers collected will be recycled. To encourage service providers to register, CBCRA will offer a sign-up bonus during the first six months. In return the CBCRA approved service providers will: Receive financial compensation for information provided; Be able to access additional P&E support materials as well as free beverage container bins to use and provide to their customers and events; and Be recognized as a preferred service provider to CBCRA. Scrap Metal Dealers There is a well-established scrap metal industry across Ontario that handles scrap ferrous and non-ferrous metals. The Canadian Association of Recycling Industries (CARI) has over

24 Ontario based members. Many of the scrap metal companies collect used aluminum beverage cans from businesses and the public for their high scrap value. The aluminum cans represent a very small fraction of the total material they receive. However, if economically feasible, the cans are separated from other aluminum scrap, baled or densified separately and sold to aluminum can brokers and consolidators before being recycled into a new aluminum can. If not feasible, the aluminum cans are mixed with other forms of aluminum scrap and sold into the secondary aluminum scrap markets. CBCRA will support scrap metal companies to maximize the value of aluminum cans. Scrap metal dealers are eligible to receive the CBCRA Integration Payment initiative for reporting their used beverage container information. 4.9 CBCRA Events Team CBCRA will establish an Events Team to raise used beverage container recycling awareness at events and festivals within Ontario. The team will have the following functions: Educate the public on: o the benefits of recycling and what the materials are transformed into o how to use the recycling receptacles properly at events and festivals; and o why recycling is important; Train event hosts and festival organizers about how to set-up and efficiently use CBCRA temporary and permanent bins so that they can operate these in the future without the presence of the Events Team onsite during the event or festival; Raise general awareness of the CBCRA including with municipal politicians and staff that attend these events; and Survey current festival and event organizers to establish information about their current recycling systems. During Year One of the Program, the Events Team will attend approximately 500 event days in Ontario for the purposes of raising awareness, educating event and festival organizers and collecting data through waste audits and surveys. Events will be prioritized based on: Expected event attendance numbers; Whether beverages are sold at the event; and Event location. Events will include those that have no previous used beverage container recycling as well as those with established recycling systems in order to improve recovery performance. The temporary beverage container recycling collection units provided to events and festivals will display CBCRA branding and recycling messages Schools and Post-Secondary Education Institutions The CBCRA Program is committed to providing used beverage container recycling support to schools and institutions of higher education. Children and youth are an important audience that will influence recycling and anti-litter attitudes in the broader public in the future. The objective of providing this support is to: Develop good recycling habits and attitudes in children and youth Increase used beverage container recovery in these away from home locations; Promote the diversion of used beverage containers and provide anti-litter messaging; 21

25 Gather composition and collection data from these locations; and Raise awareness of the importance of used beverage container recycling within schools and post-secondary education communities. These objectives will be achieved through: Assessing campus and school bin and signage infrastructure; Providing bins and signage where needed; Campus and school collection challenges; Used beverage container recycling educational presentations and activities; and Data from CBCRA approved service providers through the CBCRA Integration Payment initiative. Please see section 4.8 for further information. Collection Competition The wide range of institutions that will be able to take part in the challenges, such as schools and community centres, will help to ensure that Ontario children and youth are able to become involved with the CBCRA Program and will be motivated to recycle their used beverage containers at school or campus, at home and on-the-go. These projects will increase used beverage container recovery and increase awareness within a target audience, along with providing used beverage container recycling data for schools and universities. Such projects will involve establishing challenges between local schools or between school boards across Ontario, whereby the winning schools will, for example, collect the highest tonnage of used beverage containers and have the lowest contamination rates. Suitable prizes, such as money towards educational prizes, will be presented to high performing schools. CBCRA will provide support to encourage schools to take part in the challenges such as: The provision of CBCRA recycling bins to schools and school boards as required; P&E materials to advertise the challenge within the school and local community; Advice and support where needed; and Assistance contacting approved CBCRA service providers. After the challenges and competitions have taken place CBCRA will maintain relationships with participating schools and campuses to ensure they maintain their used beverage container recycling programs over the long-term. Event and Education Team Support The Events and Education Team will assess the bins and signage infrastructure and provide engaging educational support. These two elements of support will be provided as follows: Infrastructure assessment This support will be available to both institutions that currently recycle used beverage containers and those who do not yet recycle used beverage containers. The team will visit the institution, map existing recycling receptacles locations, assess signage and conduct a waste audit at select facilities. After the assessment of current recycling infrastructure is completed an infrastructure improvement plan will be developed in collaboration with the institution. The Events and Education Team will follow up with the institution to ensure the plan is implemented and will conduct a follow-up audit at select institutions once the changes have been put in place to measure success. 22

26 The Events and Education Team will ensure the school s existing service provider is engaged with the assessment and will encourage cooperation between all parties. For institutions without a used beverage container recycling collection service in place, the Events and Education Team will visit the institution and design a beverage container receptacles location plan and provide CBCRA branded signage and instructions for the receptacles. The Events and Education Team will also provide a list of CBCRAapproved service providers and recommend the appropriate receptacles. The Events and Education Team will provide ongoing support, where necessary, during the implementation of the plan. Waste audits will be provided at select institutions and the results applied to other similar institutions. Educational Support The Events and Education Team will also provide used beverage container recycling educational presentations and activities to schools and post-secondary educational institutions. The Events and Education Team will provide presentations to any audience from Kindergarten to university-level students and these presentations will include topics such as: Why we should recycle; What can be recycled; Where we can recycle; Why littering in general is bad for their community; and How to encourage others to recycle. Other activities organized by the Events and Education Team will include getting students of the appropriate age to take part or witness waste audits, organize schoolwide competitions to design posters to encourage students to recycle their used beverage containers, plus organizing educational trips to recycling facilities such as MRFs for students at institutions of higher education. The Events and Education Team will encourage institutions to sign up for both elements of support as these elements complement each other and will feed into each other s success End-markets CBCRA will use existing, well established end-markets for all used beverage container and secondary beverage packaging that is collected. There is adequate Canadian, North American and international markets available for recovered PET, HDPE, aluminum, steel, plastic film and paper packaging which constitute over 99 per cent of the materials that will be recovered. The end market uses for beverage container materials are mature and well established. Some examples of what the material collected will be manufactured into are: Aluminum beverage cans will be recycled primarily into aluminum beverage cans; Steel beverage cans will be made into steel beverage cans or other steel products; Glass bottles will be manufactured into glass bottles or used in fibreglass or construction applications; 23

27 PET bottles will be manufactured into PET bottles or other PET fibre products such as fabrics and carpet. 24

28 5 Communications, Promotion and Education 5.1 Current State of Awareness While over 95 per cent of the citizens of Ontario have access to residential recycling collection services, the current residential used beverage container recovery rate is still relatively low. A greatly enhanced and focused communications, promotion and education campaign is required to increase recovery performance. The observed low participation rates and high contamination levels in away from home collection indicates a great need for P&E to increase both the levels of awareness and education regarding what materials are included in used beverage container recycling. 5.2 Extensive, Dynamic and Integrated P&E and Communications CBCRA Program s Promotion and Education (P&E) support will be extensive, dynamic and integrated. Every element within the overall Program will need the support of P&E to ensure success. This support will raise awareness of used beverage container recycling, the CBCRA Program and ultimately drive an increase in used beverage container recovery. Therefore, CBCRA s annual P&E budget will total more than $7 million which is a dramatic increase in P&E when compared to the current amount spent by municipal Blue Box Programs for all Blue Box materials combined. The P&E support will be designed to help the Program achieve its recovery target. The CBCRA Program will conduct an extensive P&E support development stage, which will include significant and substantial consumer research and consultation to ensure that the P&E provided is effective in raising awareness and driving recovery using both traditional mass media as well as social media. It will integrate sustained outreach measures to connect with all CBCRA Program stakeholders in an ongoing and meaningful way to ensure their support and commitment. In terms of municipal support, CBCRA will raise awareness and educate members of the public via mass media, will advertise the CBCRA program within municipal print and electronic calendars and other publications provide camera ready materials and provide P&E support for campus and school collection challenges. CBCRA will also undertake an aggressive social media campaign involving: on-packaging campaigns and contests. CBCRA will explore the integration of mobile bar scan apps for use in conjunction with social media. 5.3 P&E Implementation Plan CBCRA s P&E Implementation Plan will be comprehensive, iterative and intelligent. It builds on promotion and education recycling best practices, along with ensuring that the P&E provided makes use of the latest communication channels such as social media. The CBCRA Program will establish a powerful brand identity. It will benefit from a strong dynamic public website designed to educate and engage members of the public and businesses about why and how to participate, as well as a stakeholder website with key information for Program partners (stewards, municipalities, service providers etc.). Key elements of the P&E Implementation Plan include: Communication with WDO, MOE, municipalities and Stewardship Ontario; Ongoing open communication via in person and virtual meetings; Performance and status updates, annual reports; and Open communication with Stewardship Ontario throughout CBCRA Program development, launch and implementation. 25

29 Public Promotion and Education Social media outreach, profiling and digital advertising, public website, support for mobile apps, direct communications, network marketing with the public, support for municipal and community collection activities (in-person plus hard and electronic materials); Mass media campaign to include advertising through TV, radio, movie theatres with some print support, all integrated with digital campaign tactics; Media relations especially at Program launch to ensure clarity as the Program takes effect; and Campaign to explain and introduce changes in services or funding that may affect the public Partner Marketing and Promotional Support to Incentivize Excellence P&E resources delivered in support of and through the CBCRA Integration Payment initiative; Customer service support for P&E; and Support for and provision or addition to digital and social media assets. Support and Communication with Stewards and Retailers Electronic and print notification, online and phone support, web and print based; materials for steward-based messaging with ongoing access to essential information and opportunities to provide comment through all phases of implementation. Operational P&E Support for residential recycling collection units, P&E at depots and away from home locations, festivals and events, and IC&I collection activities. The P&E Implementation Plan has been outlined in Appendix I. 5.4 P&E Anti-Litter Campaign The P&E anti-litter campaign will be focused on reducing the amount of used beverage containers discarded as litter across the province. This multi-faceted campaign will involve research such as litter audits, consumer research, review of best practices and then the development of litter abatement messaging. Anti-litter messaging will be placed on recycling bins and other media such as television and radio advertisements will be used to encourage the public to recycle their used beverage containers and avoid littering. Other activities involved in this campaign will include municipal clean-up days sponsored by CBCRA. These activities will increase public awareness about the benefits of recycling used beverage containers, and help to reduce used beverage containers improperly discarded as litter. 5.5 Research and Development Before providing new CBCRA recycling collection units for use at permanent and temporary locations, research will be conducted on current best practice regarding receptacle design, size, placement and branding (drawing from studies, experience in Manitoba and field research in Ontario). This R&D investment is crucial to ensure that CBCRA recycling receptacles and signage are sited at optimal locations to ensure high collection rates and avoid risks such as vandalism. 26

30 Additionally, the design and size of the receptacle must encourage people to recycle, supported by CBCRA s clear, cohesive recycling messaging. Possible R&D activities include: A gap analysis of the current recycling services and support provided for multi-family household buildings will be undertaken to investigate the current situation, and to determine what can be improved. The analysis will require cooperative relationships with municipalities and service providers for success. Market research and pilot studies to identify attitudinal and physical barriers to recycling; CBCRA will also undertake technical reviews of existing Ontario MRF sorting practices to identify ways to improve recovery levels to ensure maximum reclamation; This includes support in the marketing of processed materials or processing residue audits to determine quantities of recyclable materials being lost in residue. The Program will maintain a technical research component in subsequent years of the program, including conducting composition analyses of collected materials and bale audits at MRFs, to ensure accurate and updated information on the quantity of used beverage containers found in Blue Box Programs; and CBCRA will ensure that any bin infrastructure provided is manufactured with a high level of recycled material as is currently the practice in CBCRA s program in Manitoba. 5.6 Financial and Human Resources Summary CBCRA is committed to managing an effective and efficient program that will seek to achieve a recovery rate of 75 per cent for non-alcoholic used beverage containers within five years of program launch. Based upon CBCRA s three years of operation in Manitoba and the Program activities set out in this ISP, CBCRA anticipates that the Program will require 15 full-time contracted employees with an additional 20 summer event staff and additional resources for specialty areas. CBCRA intends to contract with Reclay StewardEdge to provide all operational staff needed to implement all program elements set out in this ISP. The financing mechanism to support this level of effort in Year One and Year Two of the program will be a container recycling fee (CRF) per sealed beverage container supplied for sale in the Province of Ontario, regardless of size of container. In subsequent years of the program, a material specific fee per container type will be established, reflecting the actual costs incurred by each container material type and size and the continuing level of effort that will be required to meet the programs performance targets. This approach includes: The need to gather and assess detailed data on current used beverage container recycling rates across the province (IC&I as well as residential); Ground-truthing of key planning assumptions on current recycling rates; payment rates required to gain participation of service providers in the CBCRA Integration Payment initiative; Ontario specific research required to finalize equipment purchases, service contracts, P&E messaging, etc.; The need for detailed operational planning based on pilot projects and field research to be completed in the first year of the program; Need to verify true costs to manage individual container material types across the full range of recovery channels; and Detailed planning and contracting for services that can only be completed upon approval of this ISP. 27

31 The CBCRA Program budget for the first year of operations is presented in Table 5 below: Table 5: Year One CBCRA budget Budget Category Sub-Category Year 1 Budget Promotion, Education & Awareness ISP Development, Consultation and Implementation Public opinion surveys - support design/advocacy work $400,000 $200,000 Start-up creative & public space focus groups $250,000 Municipal support (calendars, art work, events, schools) Away from home support (signage, P&E support to service providers, swag) $1,300,000 $700,000 Project launch activities $300,000 Mass media $7,000,000 Social media, promotions, incentives/bar code scan app $300,000 Litter abatement and education campaign $2,000,000 Municipal Investment Municipal Blue Box funding support $7,000,000 Research & Development /technical studies/contract support $130,000 Northern and First Nations communities $500,000 Away from Home CBCRA Integration Payment Initiative $2,300,000 Provincial park/conservation authority program $600,000 Campus and schools challenge and Events Team Support Capital for bins for municipal/ IC&I facilities; events; public space $2,400,000 $4,500,000 Program Management Program management $2,700,000 Miscellaneous hard costs (travel, accommodations) $200,000 Legal and professional services, WDO costs $200,000 Total $32,980,000 28

32 5.7 Program Costs Elements and Fee Setting Methodology In order to assist ISP stewards to report on their sales into Ontario and to contribute the CRF, CBCRA has developed a web-based reporting system. The revenue from the CRF will be used solely to cover the cost of used beverage container management in Ontario, through all collection channels including the residential collection program administered by Stewardship Ontario, as well as financing R&D, detailed program design, P&E, and program operations. CBCRA will undertake a cost allocation study over the first two years of the program to determine the relative costs of collecting and processing different types and sizes of used beverage containers from households and from away from home collection points in order to arrive at differentiated costs for each container type and size. This data will be used to set the CRF rate for subsequent years. Given the time required for program start-up, data collection and analysis and consultation on the fee-setting methodology and proposed fee rates, it is expected that differential CRFs will come into effect no later than year 3 of the program. When CBCRA transitions to differential CRFs, it is anticipated that fee-setting will be based on a three-step methodology that will calculate an individual CRF for each material grouping. WDO will be consulted at least three months in advance of any changes to the CRF. CBCRA will provide to WDO each year a communications plan that will support transition to any new fee rates. 29

33 6 Program Performance CBCRA will seek to achieve a 75 per cent recovery rate for all containers supplied into the Ontario market by its members by the end of the fifth full year after program launch. Although there remain considerable unknowns about Ontario s current recycling performance and what will be required to achieve this ambitious goal, CBCRA has prepared preliminary annual performance targets consistent with WDO procedures for ISPs. 6.1 Annual Collection Targets Reduction Estimates The beverage industry is a leader in the light-weighting of beverage containers driven by technological advances and pressures for cost reduction. Detailed data is available on the light weighting of PET and aluminum cans in particular but this data is not directly relevant to this submission. This is a key area in which individual companies compete and CBCRA does not see a role for itself in the area of reduction. Reuse Targets Similarly, decisions on the use of reusable primary or secondary beverage packaging are made by individual beverage producers and this consideration is not included in the ISP submission. Accessibility Targets Away from home recovery performance will be closely linked to accessibility. CBCRA will measure and monitor away from home accessibility and will establish a baseline related to the current away from home recovery stream in order to set appropriate accessibility targets. CBCRA will then establish annual targets for each type of away from home area and will ensure areas that lack accessibility receive the appropriate infrastructure to achieve the accessibility targets. Recycling Targets The methodology used for calculating recycling efficiency rates will be the same as that used for the Blue Box Program Plan. Recovery Targets Current generation and recovery tonnage in residential and away from home locations is presented in the table below: 30

34 Table 6: Baseline beverage container and secondary beverage packaging generation and recycling performance Consumption Channel Generation Recycling Recycling % At Home 63,200 31,400 50% Away from Home 15,400 4,000* 26%* Total Beverage Containers 78,600 35,400 45% Secondary Beverage Packaging in Residential and Blue Box 22,900 11,500 50% Total Beverage Packaging 101,500 47,000 46% *Currently no entity is measuring the amount of used beverage container recycling from away from home channels. Therefore the estimated range is between 15 per cent and 30 per cent based on the findings from an IPSOS research study conducted in To support achievement of the overall 75 per cent five year recovery target, CBCRA has set recovery targets for each of the first five years following program implementation. Table 7: Five year recovery targets Consumption Channel Year One Recovery Year Two Recovery Year Three Recovery Year Four Recovery Year Five Recovery At Home 56% 63% 69% 76% 82% Away from Home 30% 33% 35% 40% 44% Totals 51% 57% 63% 69% 75% Secondary Beverage Packaging in Residential and Blue Box 55% 60% 65% 70% 74% Total Beverage Packaging 52% 58% 63% 69% 75% Assumptions: recycling targets for the residential and IC&I Sector are based on anticipated recovery rates required to reach an overall recovery rate of 75 per cent in Year 5 of the Program. The quantities of materials collected will be monitored through CBCRA s internal audit program (please see Section Performance Measurement and Reporting System for further information). CBCRA will monitor recovery rates by sectors (residential, IC&I, public spaces, etc.) and will take remedial action such as increasing P&E, increasing accessibility and increase communication with service providers to ensure the Program reaches its overall target. Other performance targets During Year One of the Program, the Events Team will attend approximately 500 event days in Ontario for the purpose of raising awareness, educating event and festival organizers and collecting data through waste audits and surveys. All events attended will be recorded in CBCRA s internal events database for benchmarking and comparison. 31

35 7 Performance Measurement and Reporting System A formal reporting protocol will be established with the WDO based on the Plan Agreement between WDO and CBCRA. External reporting As part of this formal reporting process to the WDO, audited financial statements and annual generation and recovery reports will be submitted consistent with the timelines required for the WDO under the WDA. CBCRA s auditors, Price Waterhouse Coopers, will conduct an annual financial audit. A third party firm will be contracted to perform any required non-financial or operational audits (such as for collectors and processors). The annual report will include Key Performance Indicators and plan update information as per the WDO Plan Agreement. CBCRA will also provide the WDO with annual updates of the overall diversion performance of the CBCRA Program as well as quarterly updates of sector specific areas, for example, events, parks, streetscape, etc. CBCRA will implement a rigorous internal auditing program. To ensure accurate generation information, the audit program will verify that CBCRA Stewards report all of their beverage containers and secondary beverage packaging accurately by material type, size and units. Generation data supplied to CBCRA by individual companies will be kept confidential but aggregated data will be provided to the WDO on a quarterly and annual basis. Although CBCRA will rely on some external sources of data, e.g. from Stewardship Ontario, on materials collected for recycling, CBCRA will also implement its own waste audits as part of the internal auditing program. The waste audits will follow a robust sampling program, and will include each appropriate material category (PET, glass, etc.). They will be undertaken separately for used beverage containers collected from away from home and at home locations. Additionally, the recovered used beverage containers will be tracked at the processor/broker stage. The results will be reported out to WDO and other stakeholders. All of the recovery data will be made public to ensure transparency. Annual Report A formal reporting process between CBCRA and Waste Diversion Ontario (WDO) will be established in the Program Agreement including submission of audited financial statements and annual program reports. Each Annual Report will include: Information about CBCRA s operation during the previous year, including information related to all Key Performance Indicators; An assessment of CBCRA s performance in comparison to the Key Performance Indicators; Steps to be taken by CBCRA if Key Performance Indicators have not been met; and An audited statement confirming the accuracy of the following prior year data: 32

36 o o o o Quantities of designated material collected by channel; Quantities of designated material recycled; Quantities of recycling rates and residue rates at select processors and end markets; and An audited financial statement for the previous year. Each Annual Report will be signed by CBCRA s Executive Director, Chairman or Treasurer and an accredited professional such as a Chartered Accountant verifying the accuracy of the information submitted. 7.1 Program Governance Model CBCRA Board of Directors The CBCRA Board is governed by it Directors: Canadian Beverage Association; Canadian Bottled Water Association; Cott Beverages; Retail Council of Canada; A. Lassonde; Saputo. The CBCRA Board Directors have collective historic and current experience on the following beverage and packaging stewardship boards: Canadian Beverage Container Recycling Association (CBCRA) Manitoba; Encorp Pacific; Encorp Atlantic; Alberta Beverage Container Recycling Corporation (ABCRC); Beverage Container Management Board (BCMB) Alberta; Multi-Material Stewardship Manitoba (MMSM); Stewardship Ontario. Working Committees The CBCRA Board has established several working committees to enable the Board to better perform its duties. A committee may involve board members only or can be a combination of board and external members with a particular expertise, such as financial or communications capabilities. Current committees include: Communications Committee; Governance Committee; and Audit Committee. Advisory Committees CBCRA will also establish an Advisory Committee in Ontario that will assist the board in program design, evaluation and continuous improvement. The Advisory Committee will provide a link to local stakeholders and ensure that the Board is informed about local issues as they arise. The Advisory Committee members may include: Service providers (waste haulers, recyclers); Municipal affairs (municipal representatives); and Events and facilities (property managers, event organizers, etc.). 33

37 8 Transition Plan CBCRA will work closely with Stewardship Ontario to ensure the transition process is smooth for all affected stewards and for Ontarians, in general. This will include understanding and agreeing to the portion of obligated packaging associated with the stewards represented under the CBCRA Program and any that remain with Stewardship Ontario. After the transition, both Programs will continue to work co-operatively with each other to fulfil their similar mandates to the municipalities and residents of Ontario. Therefore, potential opportunities to partner and use existing structures, relationships, communication strategies and technical support will be explored. In accordance with WDO s Procedures for Industry Stewardship Plans (check list C, 22) the following will be undertaken by CBCRA: Promotion and education (P&E) CBCRA s P&E activities include activities prior to and following Program launch. The P&E will help educate consumers of beverages about how and where they will be able to recycle their containers and also includes a description of how CBCRA will mitigate any potential generator confusion that might result from the operation of both CBCRA and Stewardship Ontario Programs. Quantity of Materials during Transition Period CBCRA has estimated the total quantity of ISP steward materials in the residential and nonresidential sectors to be approximately 97,700 tonnes. At this time the CBCRA Program as outlined represents all current CBCRA participants in the Manitoba program that also supply beverage containers into Ontario. While companies representing approximately 70 per cent of the total volume of beverage containers have already indicated they wish to subscribe to CBCRA s proposed Ontario program, the remaining participants still need to be informed of this option. (A list of current CBCRA participants and potential participants in a CBCRA Ontario ISP are attached as an appendix). The packaging from these beverage companies represents a large percentage, but not all of the primary and secondary beverage packaging distributed in Ontario. Transition Requirements with Service Providers The CBCRA Program is complementary to and will use some of the same collection, transportation and processing systems and infrastructure already in place for Ontario Blue Box programs. Therefore, there will be no changes to collection systems serving households. There will, however, be a significant increase in opportunities to recycle used beverage containers away from home. There will be no contractual transitions with service providers. CBCRA will not encroach on any current business arrangements and therefore there will be no transitions required. As the CBCRA ISP has been developed in consideration of existing business arrangements, there should be little or no disruption in the marketplace. However, where new service provider arrangements are required, e.g. used beverage container recycling collection units to be sourced and supplied for CBCRA events, new service provider arrangements will be sought through a competitive bidding process. Other new business arrangements also include 34

38 contractors supplying promotion and education services and waste audits, which will also be sought following a competitive bidding process. 35

39 9 Roles and Responsibilities Each of the stakeholders listed below plays a key role and has certain responsibilities within the ISP recovery system: CBCRA The Plan Agreement signed by CBCRA and WDO will specify the roles and responsibilities of the parties. This will include at a minimum CBCRA s responsibility to design the ISP, implement it once approved, operate the program in a fair and transparent manner, achieve the program targets and submit required program data to WDO. Additional specific CBCRA roles and responsibilities include: Commission third party consumer research that will then inform and shape the P&E communications; Implement a province-wide P&E program; Ensure open, clear and regular communications especially with Stewardship Ontario as the Blue Box Program IFO, WDO, MOE, and municipalities and service providers; Report regularly to the public; Initiate as required the dispute resolution mechanism contained within the draft Participant Agreement in Appendix B; Operate the Program according to the commitments within the ISP, including payment of material-specific fees set by Stewardship Ontario; Meet the ISP targets agreed with WDO; Provide required program financing as outlined in the ISP; and Continually innovate to improve the used beverage containers recovery rate. Beverage Stewards Beverage stewards that are participants in CBCRA are responsible to: Report monthly and pay to CBCRA the CRF for each sealed beverage container supplied into the Ontario marketplace; Comply with the agreement between CBCRA and the steward; and Support the purpose and activities of CBCRA. Retailers Retailers often have two roles, that of retailers selling to consumers as well as being stewards that may sell private label beverages. Retailer responsibilities can include: Inform consumers at Point-of-Sale (POS) about recycling possibilities for the containers they purchase; Communicate with consumers the benefits of recycling; and Work with CBCRA to develop and implement program POS materials. Waste Diversion Ontario (WDO) WDO s role is to oversee the implementation and operation of the ISP. Its responsibilities include: Communicate with the ISO operator about developments, challenges or program accolades the WDO may be aware of; Monitor the progress of the ISO against the goals set out in the Plan; Report to the MOE and other stakeholders on ISO progress; and Establish a Program Agreement between the ISO and WDO that will govern all program performance, reporting and operational requirements. 36

40 Stewardship Ontario As the designated IFO for the approved Blue Box Program Plan Stewardship Ontario s responsibilities include: Invoice participating stewards for the material specific fees related to management packaging managed under the BBPP and provide a a copy of the invoices to CBCRA. These invoices will be paid by CBCRA.; Regular communication with CBCRA on all relevant issues related to beverage containers, Blue Box costs and performance, etc.; Report to CBCRA data on the recovery and recycling rate of used beverage container and secondary beverage packaging materials included in the ISP and the costs of managing these materials through the BBPP; Coordinate with CBCRA and municipalities on P&E program initiatives related to beverage containers; and Partner with CBCRA as mutually agreed on waste audits, activity based costing and other shared task areas. Ontario Municipalities Ontario municipalities play a key role in residential and away from home in selecting and contracting with the service provider of their choice or providing the service directly. Ontario municipalities responsibilities include: Ensure that the service provider they engage is either a registered service provider and/or brings the materials to a registered service provider; Work with CBCRA to integrate and disseminate CBCRA P&E materials to its residents; and Work with CBCRA to implement used beverage container recycling bins at all of its municipally controlled away from home locations. Provincial Government Agencies Provincial government agencies can support the program by: Work with CBCRA through Tourism Ontario, Government Services, Ministry of Transportation; etc. and other provincially supported agencies; to implement recycling bins in all parks, government buildings; publicly accessible spaces; etc.; and Collaborate with CBCRA through the Ministry of Aboriginal Affairs to improve used beverage container recycling on First Nations. Non-Government Organizations (NGOs) The Recycling Council of Ontario (RCO) will be requested to review and provide advice on the program design and to help amplify key program elements. Responsibilities could include: Integrate CBCRA program information into its ongoing education and communications campaigns; Provide feedback to CBCRA on comments and concerns received from RCO members, consumers and other stakeholders; and Identify opportunities for synergies with its ongoing IC&I recycling initiatives. 37

41 Recyclers and Waste Management Service Providers Waste management and recycling service providers will have an important and expanded role servicing municipalities and existing and new away from home collection locations. Their responsibilities will include: Participate with the Program Integration Payment initiative to report on all used beverage container materials collected; Ensure that all recovered material collected is recycled; and Provide good service to all of their municipal and away from home customers. Program Partners (IC&I, Events), The role of Program Partners, (businesses, facilities, events, etc.) that implement used beverage container recycling bins is to enter into agreements with CBCRA to ensure the proper implementation and management of these bins. Their responsibilities as part of an agreement include: Ensure that all bins are serviced by either their own staff or contractors; Communicate with CBCRA about any problems they are having with the bins; and Ensure signage remains in place and that bins are replaced (at no cost to the Program Partner) if damaged. Public Consumers and the public play a very important role with their active participation in separating and placing their used beverage containers into appropriate recycling bins wherever they live, work and play. Their responsibilities include: Ensure that used beverage containers are deposited in the appropriate recycling collection channel and not littered or disposed as waste. 38

42 Appendices Appendix A: Current CBCRA Participants in the CBCRA Manitoba Program Company Resident in Ontario Company Resident in Ontario A. Lassonde Inc. yes Leading Brands of Canada, Inc. no Amway Canada Corporation no Wm.Bolthouse Farms Inc. yes Calkins & Burke Ltd no Tree of Life Canada ULC yes Canada Safeway Limited yes Shoppers Drug Mart Inc. yes Canadian Tire yes QPRO Canada Inc. yes Coca-Cola Refreshments Canada Company yes Sky Blue Water Inc. no Cott Beverage yes Kohl & Frish Ltd. yes Distribution Missum Inc. yes Sunrise Markets Inc. dba Sunrise Soya Foods yes Federated Co-Operatives Limited no CanAqua Inc no ID Foods Corporation yes McKesson Canada yes Loblaw Companies Ltd yes Arctic Glacier Canada Inc. yes Malinda Distributors Inc no Prism Distributions Inc. no The Minute Maid Company of Canada Inc. yes Dewpoint Bottling Company Ltd. yes Nestle Waters Canada yes Wal-mart Canada Corp. yes P.A. Bottlers Ltd. no Hudson's Bay Company yes P.A. Fine Foods & Distributors no White Dove Water Company & Laundromat no Pepsi Bottling Group Canada yes The North West Company yes Saputo Dairy Products Canada G.P. yes JFC International, Inc. yes Star Marketing Ltd. no Sysco Food Service, Winnipeg yes Sun-Rype Products Ltd. yes Keewatin Air LP no The TDL Group Corp yes Sobeys Capital Incorporated yes Unisource Canada Inc. yes Campbell Company Of Canada yes Arctic Beverages Limited no Philippine Fruit Corporation no RW Packaging Ltd. no London Drugs Limited no Elco Fine Foods Inc. yes RAGE Beverages Inc. no Edoko Food Importers Ltd. no IKEA Canada Limited Partnership yes Costco Wholesale Canada Ltd. yes Inform Brokerage Inc. no Canada Dry Mott's Inc. yes Red River Equipment (2007) Inc. no Maverick Brands, LLC no Whistler Water Inc. no Principal Sales Inc. no Red Bull yes CBCRA has already received Letters of Intent from some of the companies above and will continue to receive these during the Consultation process. CBCRA and WDO will be maintaining an updated list throughout the Consultation period. 39

43 Appendix B: Draft ISP Participant Agreement Participants Registration Agreement This Participants Registration Agreement (the Agreement ) is entered into on the year 20. of BETWEEN Canadian Beverage Container Recycling Association, an industry-funded, not-for-profit, corporation ( CBCRA ) AND INSERT ( Participant ) WHEREAS A. CBCRA was formed by beverage companies to facilitate increased recovery of beverage containers including an increased recovery through the Blue Box or residential recycling as well as an increased focus on away from home recycling and beverage container market development to assist Participant with meeting the beverage container waste diversion objectives of The Waste Diversion Act 2002 (WDA) (Ontario) and B. The Participant is a Steward of beverage container related material and wishes to enrol as a participant of CBCRA. C. The Participant has read and understands CBCRA s Rules for Obligated Stewards (attached to this Agreement) In consideration of the mutual promises contained in this Agreement and other good and valuable consideration, the receipt of which is hereby acknowledged by each party hereto, the parties agree as follows: 1. INTERPRETATION 1.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario, and subject to Article 6, the parties to this Agreement submit to the exclusive jurisdiction of the Courts of the Province of Ontario. 1.2 Headings and References. The headings in this Agreement shall not affect the interpretation of this Agreement. 40

44 1.3 References. Unless otherwise stated, a reference herein to a numbered or lettered article, section, subsection, clause or schedule refers to the article, section, subsection, clause or schedule bearing that number or letter in this Agreement. A reference to this Agreement means this Agreement together with any amendments thereof or Schedules attached. 1.4 Severability. Should any provision of this Agreement be void or unenforceable it shall be severed from this Agreement and the remainder of this Agreement shall remain in full force and effect and shall be interpreted and construed as if the stricken provision had never formed part of this Agreement. 1.5 Recitals. The recitals hereinbefore contained are true and correct and form an integral part of this Agreement. 2. CONFIDENTIALITY 2.1 CBRCA acknowledges and agrees that certain information made available to it from time to time in accordance with this Agreement by the Participant is confidential in nature. For the purposes of this Agreement, confidential information ( Confidential Information ) means information received by or made available to CBCRA, its agents or personnel that: (i) is not generally known in the industry in which the Participant is engaged; (ii) is personal information within the meaning of the Personal Information Protection and Electronic Documents Act (Canada), as amended from time to time, and any other applicable law now in force or that may in the future come into force governing the collection, use, disclosure and protection of personal information applicable to either party or to any information collected, used or disclosed in the course of the Participant s participation under the terms of this Agreement; (iii) would logically be considered confidential and/or proprietary; (iv) would do the Participant harm if divulged; or (v) is marked Confidential or Proprietary, and shall include all reporting documentation provided by the Participant in accordance with this Agreement. 2.2 CBCRA agrees: i) to hold the Confidential Information in confidence by using the same degree of care to safeguard such Confidential Information as it uses to protect its own information of like character, but in no event less than a reasonable degree of care; ii) to limit disclosure of the Confidential Information to its employees, agents or subcontractors having a need to know the Confidential Information for the purposes of this Agreement; iii) not to directly or indirectly disclose any Confidential Information to any third party unless and only to the extent required by any judicial or governmental request, requirement or order; provided that CBCRA will take reasonable steps to give the Participant sufficient prior notice in order to contest such request, requirement or order by notifying the Participant of such request; iv) to use the Confidential Information solely and exclusively in accordance with the terms of this Agreement; v) not remove or obscure proprietary rights notices that appear on Confidential Information and copies thereof; and iv) advise Participant promptly in writing of any unauthorized disclosure or use of Confidential Information. CBCRA shall cause its agents, subcontractors and employees to whom it may be permitted to disclose or 41

45 provide any such Confidential Information to comply with the provisions of this Section 2. Upon termination of this Agreement, CBCRA shall return or destroy all Confidential Information as directed by the Participant, provided however, CBCRA shall be permitted to retain such Confidential Information as required by applicable law, solely for as long as such Confidential Information is required to be retained pursuant to such applicable law. 2.3 The information reported by the Participant in accordance with Section 4.1 shall only be released to other CBCRA Participants or otherwise in an aggregate form and where the Participant cannot be identified. 2.4 The provisions of this Section 2 shall survive and remain in full force and effect following any termination or expiry of this Agreement. 3. TERM 3.1 This Agreement shall commence on the date set forth above and, subject to earlier termination as provided for in this Agreement, continue in effect for a term of one year, terminating on December 31, 2014 (the Term ). The initial Term shall thereafter automatically renew for additional one (1) year periods (the initial Term and any renewal thereof being collectively referred to herein as the Term ) unless the Participant terminates this Agreement by no less than ninety (90) days written notice prior to the end of the then current Term, or CBCRA terminates this Agreement by no less than ninety (90) days written notice prior to the end of the then current Term. 3.2 The rights and remedies in this Section 3 are cumulative and in addition to any other right or remedy available under this Agreement, at law or equity. 4. PAYMENT 4.1 Within the first 20 days of the end of the month, the Participant shall report the number of applicable single use ready to serve beverage containers (each, a Beverage Container ) Supplied in Ontario in the previous month. For the purposes of this Agreement, Beverage Containers shall not include containers for which a refundable deposit is payable when the goods are Supplied (as such term is defined in the Act). 4.2 Subject to Sections 4.3 and 4.5 below, the Participant shall pay a container recycling fee ( CRF ) for each Beverage Container sold in Ontario in the previous month by the 20th of the then current month. 4.3 The Participant will notify CBCRA of the Participant s obligation to Stewardship Ontario ( SO ) for the cost of managing beverage containers within the residential collection program. 4.4 CBCRA commits to paying the Participant s obligation to SO on a timely basis as per a payment schedule mutually agreed to by CBCRA and SO. 42

46 4.5 CBCRA may adjust the CRF at its discretion, provided however, CBCRA will endeavour to make any adjustments on an annual basis and to have such adjustments be effective on February 1 of the year in which an adjustment is to be effective. Notwithstanding the foregoing, an adjustment of the CRF shall not be effective until 90 days after the date upon which the Participant receives written notice of such adjustment, provided however, the parties may agree to any other effective date in respect of such adjustment. 4.6 The CBCRA covenants and agrees to use all CRF payments made by the Participant solely and exclusively for the purposes set out in Recital A hereof. Any other use of such funds shall require the express written consent of the Participant. 5. TERMINATION 5.1 Default Termination. If a party (the Defaulting Party ) breaches any term or condition of this Agreement, the other party may deliver notice of the breach to the Defaulting Party. In the event the breach is not cured within seven (7) days of such notice, the party having delivered such notice may terminate this Agreement on notice to the Defaulting Party. 5.2 Other Termination. Unless the parties agree otherwise, this Agreement will terminate automatically if: (i) either party (in this Section, an Insolvent Party ) makes an assignment for the benefit of its creditors, consents to the appointment of a receiver for all or substantially all of the property of the Insolvent Party, files a petition in bankruptcy or for a reorganization under the appropriate bankruptcy legislation, or is adjudicated bankrupt or insolvent; (ii) if a court order is entered, without the consent of the Insolvent Party, appointing a receiver or trustee for all or substantially all of the property of the Insolvent Party, or approving a petition in bankruptcy or for a reorganization pursuant to the appropriate bankruptcy legislation or for any other judicial modification or alteration of the rights of creditors of the Insolvent Party; or (iii) CBCRA breaches its obligations in Section 2 and 4.6 hereof. 5.3 Upon the effective date of termination of this Agreement, CBCRA will inform the WDO that the Agreement between the Participant and the CBCRA has been terminated. 6. Resolution Negotiation. 6.1 In the event of a dispute or difference between the parties arising out of or in connection with this Agreement or in respect of any defined legal relationship associated with it or derived from it including the formation or enforceability of this Agreement or any failure to reach agreement where an agreement is required (a "Dispute"), the parties shall make all reasonable efforts to resolve the Dispute by amicable negotiations. In this regard each party shall promptly set forth in writing to the other party the basis of the Dispute in reasonable detail and appoint a designated representative having authority to resolve and settle such Dispute. The designated representatives shall meet as often as the parties reasonably deem appropriate to discuss the Dispute and attempt to resolve the dispute without the necessity of mediation pursuant to Section Formal 43

47 proceedings under Section 6.2 may not be commenced until the earlier of (i) the time when the parties conclude in good faith that amicable resolution of the Dispute does not appear likely or (ii) the expiration of fourteen (14) days following the date on which the Dispute was first set forth in writing in accordance with this Section If a Dispute is not resolved pursuant to the informal dispute mechanism in Section 6.1, a party may deliver written notice (a Mediation Notice ) to the other party requiring the Dispute go to mediation, in which case the parties shall attempt to appoint a mutually acceptable mediator within 14 days of delivery of the Mediation Notice. (a) Participation in Mediation. If the parties agree on a mediator they shall participate in good faith in the mediation and related negotiations for a period of at least 30 days. (b) Costs of Mediation. The parties will bear their own mediation costs, and shall share equally the mediator s costs. 6.3 The parties agree that the existence of a Dispute, any efforts or proceedings to resolve a Dispute, whether informal or pursuant to mediation, and any rulings or decisions issued by the mediator pursuant to Section 06.2, shall be held in confidence, shall be treated as compromise and settlement negotiations under applicable evidence rules, and shall be governed as Confidential Information by the terms and conditions of Section Notwithstanding any other provision of this Agreement, a party may apply for and receive interim or injunctive relief from a court of competent jurisdiction (whether as a temporary restraining order, preliminary injunction or otherwise) or specific performance at any time. 6.5 This Section 6 shall not be construed to prevent a party from instituting, and a party is authorized to institute, formal court proceedings, earlier to avoid the expiration of any applicable limitations period. 6.6 The parties agree to continue performing their obligations hereunder while the Dispute is being resolved as provided in this Section 6, unless and until the Dispute is resolved or until this Agreement is terminated. The time frame for a party to cure any breach of the terms of this Agreement shall not be delayed or suspended pending the resolution of any Dispute hereunder. 7. General 7.1 Recitals: The recitals hereinbefore contained are true and correct and form an integral part of this Agreement. 7.2 Counterparts: This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same agreement. Any counterpart signature transmitted by facsimile or by sending a scanned copy by electronic mail or similar electronic transmission shall be deemed an original signature. 44

48 7.3 Further Assurances: The parties hereby agree from time to time to execute such further or other documents (whether under corporate seal or otherwise) and do all such other acts and things as may be necessary or desirable to give effect to the terms of this Agreement and to carry out and effectuate the provisions hereof. 7.4 Severability: If for any reason any term, covenant or condition of this Agreement, or the application thereof to any person or circumstance, is to any extent held or rendered invalid, unenforceable or illegal, then such term, covenant or condition (a) shall be deemed to be independent of the remainder of the Agreement and severable and divisible therefrom, and its invalidity, unenforceability or illegality shall not affect, impair or invalidate the remainder of the Agreement or any part thereof; and (b) shall continue to be applicable to and enforceable to the fullest extent permitted by law against any person and circumstance other than those to which it has been held or rendered invalid, unenforceable or illegal. 7.5 No Waiver: No condoning or waiver by a party of any default or breach by the other party at any time or times in respect of any of the obligations, terms, covenants and conditions contained in this Agreement to be performed or observed by the breaching party shall be deemed or construed to operate as a waiver of the non-breaching party s rights under this Agreement in respect of any continuing or subsequent default or breach nor so as to defeat or affect in any way the rights and remedies of such party under this Agreement in respect of any such continuing or subsequent default or breach. Unless expressly waived in writing, the failure of a party to insist in any one or more cases upon the strict performance of any of the obligations, terms, covenants and conditions contained in this Agreement to be performed or observed by the breaching party shall not be deemed or construed to operate as a waiver for the future strict performance or observance of such agreements, terms, covenants and conditions. 7.6 Interpretation. If any payment is required to be made or other action is required to be taken pursuant to this Agreement on a day which is not a business day (defined as any day of the week other than Saturday, Sunday or a statutory holiday in the Province of Ontario), then such payment or action shall be made or taken on the next business day. The term including means including, without limitation and include and includes shall have corresponding meanings. The wording of this Agreement shall be deemed to be mutually chosen by the parties and no rule of strict construction shall be applied against any party. 7.7 Language: The parties acknowledge and agree that they have required that this Agreement be prepared in the English language. Les parties reconnaissent avoir exigé que les présentes soient rédigées en langue anglaise. 7.8 Currency: All references herein to currency are to Canadian currency and all payments shall be made in Canadian currency. 7.9 Time of Essence: Time is of the essence of this Agreement and every part hereof Entire Agreement: This Agreement constitutes the entire agreement between the parties regarding the subject matter hereof. It is understood and agreed that there are no agreements, conditions, warranties, terms, representations or 45

49 arrangements, oral or written, statutory or otherwise, other than those contained herein, and that all prior conversations, understandings, arrangements, statements, communications or agreements, oral or written, with respect to this Agreement are hereby superseded. No change, amendment or supplement to any provision of this Agreement shall be binding unless it is in writing and signed all of the parties hereto. IN WITNESS WHEREOF this Agreement is deemed to have taken effect as of the day and year written above: Canadian Beverage Container Recycling Association Authorized Signatory Witness Print Name Print Name Title Title Date Date INSERT Authorized Signatory Witness Print Name Print Name Title Title Date Date 46

50 Participants Registration Form Business Name: Business Address: Street City Country Province/State Postal/Zip Code Phone Number: ( ) Fax Number: Contact Name: Position: Contact Address: Street City Country Province/State Postal/Zip Code Phone Number: ( ) Signature: Date: Month Day Year Contact Address: Street City Country Province/State Postal/Zip Code 47

51 Appendix C: Letter of Intent to participate in the ISP May 13, 2013 Waste Diversion Ontario Att. Michael Scott 4711 Yonge Street, Suite 1102, Toronto, ON M2N 6K8 Dear Mr. Scott: Re: Submission of an Industry Stewardship Plan Proposal with respect to beverage container related packaging We are an association representing brand owners and first importers into Ontario of beverage related packaging. This letter will confirm that it is our intent to enter into discussions with WDO regarding this ISP. It is our intent to prepare and submit an ISP Proposal for WDO s review and approval. We anticipate being able to submit the ISP proposal on or around May 31, We have already signed a Non-Disclosure Agreement (NDA) with you to cover items discussed or data shared through this process. Yours very truly, John Challinor II Chairman CBCRA [email protected] 48

52 Appendix D: Key Stakeholders and Program Participants Potentially Impacted The following list represents the main stakeholders who will be potentially impacted by the CBCRA ISP: Beverage Companies Beverage companies that are proponents of the CBCRA ISP will be kept closely informed of the ISP s progress. Beverage companies that are not stewards of the CBCRA ISP will be kept informed of the ISP s progress and will be welcomed to join prior to submission. Any other beverage steward who wants to sign on under the terms of the ISP will be welcomed. Retailers Retailers that are CBCRA ISP stewards will be kept closely informed of the ISP s progress, and any retailers that are not CBCRA ISP stewards will be kept actively informed of the ISP s progress. Additionally, in order to ensure that the appropriate and accurate message is communicated to the consumer, CBCRA will work with retailers and retail industry groups, such as the Retail Council of Canada (RCC), to educate retailers and provide them with Point-of-Sale (POS) educational materials to make available to consumers. Waste Diversion Ontario (WDO) WDO will be kept up-to-date through regularly scheduled meetings, the submission of annual reports and audited financial statements from CBCRA. A formal reporting process and program agreement between CBCRA and WDO will be developed and executed. Ontario Municipalities CBCRA is committed to forming strong working partnerships with Ontario s municipalities. These partnerships will be critical for the success of the program as municipal reach, in terms of operations and influence, extends into both the residential and away from home beverage container collection streams. This reach will therefore be pivotal in achieving the ISP s targets. CBCRA will work with municipal industry groups including organizations such as the Association of Municipalities of Ontario (AMO) and the Municipal Waste Association (MWA), to ensure that the municipal sector receives effective ISP updates. Provincial Government and Government Groups CBCRA will ensure that the MOE is kept up-to-date on its activities, and regular meetings are proposed during ISP approval and start-up stages to ensure clear and consistent communication among all parties. CBCRA will look to partner with various provincial departments and agencies on special projects that focus on recovering beverage containers including: Aboriginal Affairs to conduct an inventory and assess recycling on First Nations reserves throughout Ontario; Ontario Parks to inventory provincial parks to ensure they have adequate beverage container recycling equipment and services; 49

53 Tourism Ontario ensure provincial facilities and parks commissions have adequate beverage container recycling services; Festivals Ontario to expand recycling support to festivals and events; GO Transit recycling of beverage containers throughout regional transit service; Government Services - ensure all provincial offices and facilities have adequate beverage container recycling services. Stewardship Ontario The objective of the CBCRA Program is to complement the recycling efforts across Ontario, and in particular the municipal Blue Box Program operated by Stewardship Ontario. CBCRA will also work closely with Stewardship Ontario to ensure the transition process is smooth for all affected stewards. After the transition, both programs will be working cooperatively with each other to fulfill their similar mandates. Non-Government Organizations (NGOs) The RCO is the most active NGO in the waste and recycling field. CBCRA will look for opportunities to partner with the RCO in a number of areas including promotion and education of consumers and business. The RCO is now working on a certification program that will help collect accurate generation, disposal and diversion data, benchmark for festivals and events and recognize best practices. The RCO has worked with a number of festival and event organizations and has found that the capture and diversion rates of beverage containers ranges from very low to high. Under the Program, CBCRA will look for opportunities to work with the RCO to improve waste recycling diversion initiatives at festivals and events across Ontario. Recyclers and Waste Management Service Providers CBCRA will establish a CBCRA Integration Payment initiative that will incentivize recycler and waste management companies, such as scrap metal dealers and haulers, to register with CBCRA. These types of organizations are an important source of information for beverage containers collected in the away from home IC&I stream. Working with these service providers will help establish baseline recovery performance figures for the away from home IC&I sector and provide further information about end markets. CBCRA will reach out to Ontario Waste Management Association (OWMA) to publicize key elements of the plan to their membership, such as the CBCRA Integration Payment initiative, to ensure that the association s members are aware of the opportunities the ISP makes available to them. Property Owners and Managers CBCRA will work with IC&I organizations such as building owners, property and facilities managers, along with shopping malls and universities, to supply at no cost, away from home beverage container recycling receptacles at indoor and outdoor locations. Public CBCRA will prioritize effective communication with the public to ensure that the Program achieves its beverage container recovery target within five years of launch. To ensure public beverage container recycling awareness is raised, a substantial part of the Program s budget will be allocated towards Promotional and Educational (P&E) efforts. The P&E component of the Program will implement a multimedia campaign to reach out to Ontarians. POS material will be developed to explain the purpose of the organization, the nature of the CRF and the process by which the containers purchased are recycled. 50

54 Appendix E: P&E Implementation Plan The P&E Implementation Plan is divided into the following phases: Phase 1: pre-launch (ISP approval to Program launch) Phase 2: launch Phase 3: implementation. Each of these phases is summarized within the tables below. A detailed communications plan will be developed for each phase during CBCRA Program development. Phase 1: Pre-Launch In the period between ISP approval and Program launch, CBCRA will implement their iterative P&E plan. The activities within the plan are designed to prevent any confusion among stakeholders as the new Program comes on-stream and to ensure continuous and efficient delivery of services throughout the transition period. Stakeholder Objective Tactic WDO, IFO, MOE Maintain open dialogue to establish launch activities, P&E plans and prepare to meet Program objectives Regular and as needed meetings and document sharing Stewards Work with Stewardship Ontario to streamline P&E and co-ordinate comprehensive and consistent messaging for transition program Notification of upcoming Program changes, changes to reporting and other logistical issues Provide clear messaging regarding container recycling fee in relation to steward activities/fees/charges Formal notification of obligation under new Program Communicate any changes to reporting for beverage containers as needed Profile beverage industry recycling leadership via earned media, social media etc. Expand internal Program website; include steward specific content Assess and integrate other social media business-t-business (B2B) tactics such as LinkedIn/Twitter for steward updates and thought leadership Provide steward-directed messaging through existing IFO Direct steward e-blasts for all time-sensitive content Provide content for industry association newsletters, newsfeeds, websites Meetings if/as needed with steward/ steward groups (in person and virtual) Program specific formal 51

55 Stakeholder Objective Tactic notification by registered mail Customer service, hot-desk and online chat support to prevent confusion in reporting/ obligations in transition period Municipalities Provide early information about new Program, changes and payment structure Encourage feedback from municipalities and municipal organizations about how best to support increased recovery through municipal challenges with P&E resources Set-up partnerships for delivery of services and communicating best practices (e.g. with MWA, etc.) Provide clear messaging for municipalities/municipal staff regarding CRF and what it means for the Program, staff, residents Establish feedback loop to ensure early warning of any issues/better practices for steward activities Expand internal Program website with dedicated municipal partner pages including start-up information and resources for municipal collectors/ diversion programs Provide new resources (including P&E) to expand public spaces recycling in municipal programs; include support for festivals and events, social media and other awareness/engagement activities (contests etc.), mobile device info etc. plus basic Program assets such as website content, banner ads, bin labels and more Develop municipal partnership program with certification and P&E assets for municipalities through marketing resource portal; include digital/social media/electronic and other resources (e.g. mobile content/app(s), program guides, web and calendar content etc.) Recyclers and waste management organizations Encourage understanding of opportunities and affiliation with new Program Develop sales kit to bring recyclers and waste management companies on board Expand website with specific pages/content for this group Establish partner marketing program with and for service providers Provide information, event street teams with contests, promotions etc. for IC&I building users with social media integration and other promotional support 52

56 Stakeholder Objective Tactic Retailers Provide information to keep retail sector up to date on Program development Provide vital information well in advance of and through implementation of CRF, if applicable Maintain ongoing communication with retail sector representatives to obtain feedback on Program implementation strategies Private meetings (in person and virtual) with Retail Council of Canada (RCC), Canadian Federation of Independent Business (CFIB) and others Meetings with individual retail partners Targeted e-blasts on specific issues Include retail communications options (such as POS) in residential/ic&i market research (see below) Develop content for retail partner publications Establish ongoing feedback loop (retailer webpage on internal site, web-based form or other) Public/media Build on existing market research to further heighten recycling awareness (currently at ~90%); to define key messages for new promotions and preferred tactics for Program launch Define how best to communicate Program change (relative to current IFO) and new features such as CRF Retailer staff training and POS materials regarding CRF and Program engagement tactics such as digital and physical contests and other promotions Conduct qualitative/quantitative research Develop Program launch campaign for residents and IC&I generators Mass media campaign(s) TV, radio, digital advertising Increase awareness, engage and educate via social media, variety of contests through social media platforms, school programs, events, promotions etc. 53

57 Phase 2: Launch The CBCRA Program will launch with comprehensive P&E support to educate the public, municipalities and IC&I stakeholders about the Program, what it means to them and how they can participate fully. The will include new Program branding supported by an integrated communications campaign, and widespread P&E about the CRF will be distributed. In addition to providing Program information, the launch will be designed to prevent any confusion that may arise from the separation of the Program from the existing IFO program. The launch activities will set the stage for long term success and support of increased recovery of beverage containers from all sectors. Stakeholder Objective Tactic WDO, IFO, MOE Maintain open dialogue to establish launch activities, P&E plans and prepare to meet Program objectives Regular and as needed meetings and document sharing Documentation and program updates to be defined with WDO, MOE Stewards Ongoing focus on how to fulfill obligations under new Program Maintain positive relationship with stewards Maintain/expand on pre-launch tactics Provide messaging for stewards to educate customers on ON recycling opportunities May include social media tactics (such as sample tweets, photos, recycling video for postings), program identifiers for recycling container units and other tactics Municipalities Provide comprehensive Program information to ensure that all municipal staff are aware of CBCRA Program launch and how it might affect their programs and services to residents Develop steward recognition program Continue outreach with municipalities through AMO, MWA, OFNTSC and through direct project contact with municipal solid waste and recycling staff P&E assets may include: Website, calendar and mobile device app(s) Fact sheets, news release, radio scripts, ad template Briefing information for key municipal stakeholders (such as councilors) Presentation(s) at key municipal conference(s) such as MWA, AMO E-blast to municipal recycling program staff CBCRA Program-branded small business collection containers 54

58 Stakeholder Objective Tactic Recyclers and waste management organizations Offer comprehensive information about how & why to take part Property owners and managers Retailers Public/media Provide P&E support materials for clients, including multi-family buildings Educate about value of and opportunities for recycling beverage containers from private and sector facilities Develop recycling starter kit for property managers Provide information for retailers to educate staff about CRF prior to and through CBCRA Program launch Inform public about new Program, implementation, application and use of the new CRF, expanded public spaces recycling opportunities and continuing need to recycle at home and work Set up and pilot P&E elements for CBCRA Integration Payment including material assets and delivery system Joint-branding for IC&I recycling collection units Meetings with property management organizations (individually or at conferences) Starter kit may feature recycling guide and other electronic resources (such as elevator advertising frames, web content, printable labels for bins etc.) Online, print, POS and other tactics to be defined with retail partners Online or in person training for retail staff if/as warranted Integrated campaign to include: CBCRA Program launch event (or events) Mass media tactics featuring print, electronic, social and earned media Communications via public spaces recycling containers and on-site messaging/signage Province-wide outreach to all residents Variety of contests through social media platforms. 55

59 Phase 3: Year 1 Roll-Out During the first year of implementation the tactics described within the table below will be used. However, actual objectives and tactics will be refined based on ongoing research and consultation with stakeholders. Year 1 activities will build on activities initiated within Phase 1 and 2. Stakeholder Objective Tactic WDO, IFO, MOE Maintain open dialogue to establish launch activities, P&E plans and prepare to Performance report Annual report meet Program objectives Stewards Consultation on Program updates as needed Ongoing website updates with news feed for stewards and e-blasts on Program updates Program management support Notification through steward reporting system New content for steward messaging to customers/public Steward showcase awards Success dashboard reporting Municipalities Recyclers and waste management organizations CBCRA P&E support for province-wide municipal recycling partners Consultation & outreach on program updates as needed Consultation on Program updates as needed Service provider P&E Continue outreach with municipalities through key organizations and direct project contact with municipal solid waste and recycling staff E-blast/social media updates on communications best practices for ISP enhancement Provide fresh content for P&E assets Provide progress reports for municipalities and for municipal outreach to residents, councils and businesses (social media delivery) Delivery & management of P&E components for municipal support Online or in person training if/as needed or municipal staff on public spaces recycling or other aspects of Program, offered by CBCRA alone or jointly with other industry organization(s) Messaging through Materials Tracking System (MTS) Content updates for 56

60 Stakeholder Objective Tactic support marketing/communications E-blast and web-based information for sales materials P&E assets for fundraising drives Service provider marketing/promo program Certification program Content for marketing/communications Website: dedicated page on public website; showcase support Retailers Property owners and managers Public/media Maintain current information on all facets of the Program Equip retailers to respond to consumer enquiries Issue management if/as needed P&E support to be expanded from launch to meet demand Adjust public P&E as needed to drive up recovery, promote preferred recycling behaviours and manage issues Virtual/in person meetings as needed Regular Program updates via website and other social media POS material updates/expansion if/as needed Media relations support if/as needed To be developed based on need as defined through Program implementation Innovative integration of diverse media may include: Continued roll out of province-wide mass media campaign Promotion at festivals and events through CBCRA Events Team Social media support via Facebook/public webpage, contests offered through social media platforms School recovery and other targeted local P&E campaigns Northern and rural P&E initiatives Other tactics to be determined. 57