Toronto City Hall
100 Queen Street West
Toronto, Ontario
Canada M5H 2N2
January 28, 1998
To: Works and Utilities Committee
From: M.A. Price
Interim Functional Lead for Solid Waste Management
Subject: Deposit/Return System for Wine and Spirit Containers in the City of Toronto and Implications of Withdrawing Collection of These Materials in the Blue Box Program
Purpose:
To provide information on the issues of product stewardship, deposit return for beverage containers and funding of the blue box program.
Funding Sources, Financial Implications and Impact Statement:
No financial implications will result from the approval of the recommendation in this report.
Recommendation:
That this report be received for information.
Council Reference/Background/History:
At its meeting of January 14, 1998, your Committee requested that a report be submitted on:
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(i) the implementation of a deposit/return system for all beverage, wine and spirit containers in the City of Toronto; and
(ii) the implications of withdrawing the collection of such materials from the Blue Box Program; and
provide to Members of the Committee all available material from the Recycling Council of Ontario stewardship process.@
At its meeting of December 10 and 18, 1997, the Metropolitan Toronto Council adopted the recommendation of the Environment and Public Space Committee:
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(1) That in addition to the Council direction to staff of September 29, 1997, by the adoption of Clause No. 4 of Report No. 12 of The Environment and Public Space Committee, as amended, the Commissioner of Works develop a plan to mandate a deposit/return system being established for wine and spirit beverage containers sold in the new City of Toronto;
(2) that the Solicitor, in consultation with the Commissioner of Works, report on any legal remedies that may be used to help establish a deposit/return system for wine and spirit beverage containers sold in the new City of Toronto; and
(3) that the Commissioner of Works= and Solicitors= reports be presented to the appropriate Committee of the new City of Toronto Council at the first available opportunity.@
(Clause 2 contained in Report No. 13 of The Environment and Public Space Committee, adopted by Metro Council at its meeting of December 10 and 18, 1997.)
At its meeting of September 22 and 23, 1997, in considering Clause 97 contained in Report No. 11 of the City Services Committee, the former City of Toronto Council:
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1. Requested that the Commissioner of City Works Services, in consultation with the Metro Commissioner of Works and other area municipality Works Commissioners, determine the full system costs for managing non-refundable alcoholic and non-alcoholic beverage containers in the municipal solid waste stream, including the costs associated with garbage and recyclable material collection, transfer, marketing, and disposal of non-recovered beverage containers for the consideration of the Council of the new City of Toronto.
- Endorsed, in principle, the action taken by North York City Council, supported the extension of the North York By-law to all beverage containers, and deferred passage of a by-law to impose recycling/disposal charges upon the retailers and producers of all beverage containers for the consideration of the new City of Toronto=s Council in 1998 and, in the meantime, instructed the appropriate City staff to consult with staff of the other Area Municipalities and Metro with respect to determining the costs of collection and disposal and monitoring the operation of any municipal by-laws coming into force before the end of 1998.@
Comments and/or Discussion and/or Justification:
Product Stewardship and Provincial Legislation
The issues of deposit return and product stewardship are under intensive review at this time, as follows:
1. The Recycling Council of Ontario (RCO) is conducting a consultation process and will make recommendations to the Minister of the Environment in April 1998 regarding the appropriate procedures for deposit return and blue box funding. The Minister has also asked the RCO for an interim summary of policy options prior to the submission of its final recommendations. The draft RCO summary of policy options, which is about to be submitted for consideration by the Minister is attached as Appendix A.
2. The Association of Municipal Recycling Co-ordinators (AMRC) is carrying out a municipal consultation process in January and February 1998 on product stewardship and will provide input into the RCO process. The AMRC has adopted the interim position on recycling funding which is attached as Appendix B. Staff of the City of Toronto were directly involved in formatting this interim position which seeks to create a relatively simple method for providing immediate funding for municipal recycling operations, while permitting the opportunity to develop longer term approaches to product stewardship. The draft interim position is consistent with the positions taken previously by the former area municipality Councils and the former Metro Toronto Council on recycling funding.
3. The AMRC, in conjunction with Mayor Lastman=s office, will hold a forum on deposit return for LCBO and wine containers at the North York Civic Centre tentatively scheduled for February 19 or 20, 1998. The results of this forum will be used in providing input to the RCO consultation process.
The above process should provide information which will assist the Minister of the Environment in identifying any appropriate changes to current Provincial deposit return legislation and methods of blue box funding.
City of Toronto Analysis Process
The Waste Management Team is currently assessing, in detail, information developed by the previous seven municipalities regarding the issues of product stewardship, blue box funding and beverage container deposit return so as to develop a consistent set of data that reflects information within the new City of Toronto. This process, including the preparation of a detailed response to all of the requests for reports referenced above, is expected to be completed for consideration by your Committee at its meeting in March 1998. At that time, preliminary policy options on these issues from the RCO process should also be available.
Available Information on the RCO Product Stewardship Process
A summary of the RCO product stewardship consultation process is attached to this report as Appendix C. As noted above, Appendix A provides an interim summary of policy options which, at the request of the Minister of the Environment, are being provided to the Minister in February 1998. Appendix B is a copy of the AMRC=s interim position on recycling program funding.
Conclusions:
The requests for information by your Committee and the former Metro and City Councils involve the assessment of complex financial and operational issues. It is the opinion of the members of the Waste Management Team that the best possible information can only be provided to your Committee after appropriate detailed analysis and consideration of the information developed in the RCO and AMRC consultation process. This information will be provided to your Committee at its March 25, 1998 meeting.
Contact Name and Telephone Number:
John Warren
Director of Operations and Sanitation
City Works Services Department
Toronto Community Council Area
Phone: (416) 392-1846
Fax: (416) 392-0396
E-Mail: jwarren@city.toronto.on.ca
Michael A. Price
Interim Functional Lead for Solid Waste Management
Barry H. Gutteridge
Acting Executive Commissioner
:kl (p:\1998\ug\cws\san\wu98001.san) - bmk
Appendix A: Draft Summary of Recycling Funding Options to Be Submitted to the Minister of the Environment by the Recycling Council of Ontario, Recycling Funding Consultation Workshops, January 1998 - AMRC
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Waste Management Roles & Responsibilities Process
Four funding options:
1. Recycling paid through property taxes/user fees
- through taxes
- through user fees on garbage
- through user fees on recycling
2. Levy on designated packages or non-durable Products
- at point of sale
- fee per unit pad by brand owners
3. Levy on industry users
- voluntary contributions
- mandated by backdrop regulations
4. Industry funds and operates recycling system
- curbside recycling system
- return to retail or return to depot system (deposit return)@
Appendix B - Draft Interim Funding Position for Recycling Programs Prepared by the Association of Municipal Recycling Co-ordinators
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(The following was developed by a working group of Ontario municipal waste management officials representing the Toronto area municipalities, four regions and several other municipalities.)
1. Ontario municipalities support the concept of product stewardship by which producers/importers/retailers of non-durable products and packaging bear responsibility for the cost of municipal waste management systems which handle those materials.
2. On an interim basis, effective January 1, 1998, producers/importers/retailers of non-durable products and packaging collected in municipal recycling programs in Ontario agree to pay municipalities, one half of the total cost of those programs, net of material revenues, subject to the following:
- On an interim basis, for 1998 and 1999, the total net cost of all municipal recycling programs in Ontario is assumed to be $50 million per year, and the total amount of waste diverted under such programs is assumed to be 500,000 tonnes per year. The average net cost (without prejudice to future discussion about costs) is therefore assumed to be $50.00/tonne.
- For 1998 and 1999, funds will be distributed by industry, through an organization set up for that purpose, to municipalities, through an organization set up for the purpose, on the basis of $50 per tonne.
- All producers/importers/retailers of non-durable products and packaging collected in the municipal recycling programs will be required to contribute to the fund from which Ontario municipalities will be paid.
- The Government of Ontario will enact the necessary regulation and/or legislation to effect the foregoing.
3. The goal of Ontario municipalities is to achieve by the year 2000 a full sustainable waste management system, where those parties who benefit from the material are responsible for its management. Therefore, municipalities and producers will meet in good faith during the period of this interim agreement to reach an agreement for a fully sustainable waste management system, and the parties agree that time is of the essence.@
