STAFF REPORT
November 16, 1999
To: Works Committee
From: Barry H. Gutteridge, Commissioner, Works and Emergency Services
Subject: Waste Diversion Organization and Blue Box Funding
Purpose:
To provide information on the newly formed Waste Diversion Organization (WDO) and the funding that will be available
through the WDO for municipal Blue Box programs and other waste diversion initiatives.
Financial Implications and Impact Statement:
It is expected that funding from the WDO for Toronto's Blue Box glass costs will be approximately $1 million for each of
1999 and 2000. Toronto's portion of WDO funding for organic waste diversion, household hazardous waste depots, and
3Rs program advertising is projected to be approximately $1 million in 2000.
Recommendation:
It is recommended that this report be received for information.
Background:
At a Waste Reduction Week industry breakfast on November 3, 1999, Environment Minister Tony Clement announced the
formation of the Waste Diversion Organization (WDO), a partnership of government, municipalities and industry to help
fund municipal Blue Box programs and other waste diversion initiatives.
Works Committee, at its meeting on November 3, 1999, requested the Commissioner of Works and Emergency Services to
report back to the next meeting of the Committee on:
(1) the implications of the announcement that morning by the Minister of the Environment with respect to the Waste
Diversion Office (WDO); and
(2) any potential industrial/municipal product stewardship partnership arrangements being considered for household
hazardous waste, and how these may be dealt with by the WDO.
Discussions:
In his speech, the Minister stated that the WDO is based on a one year voluntary Memorandum of Understanding (MOU)
with industry members, who have committed $14.5 million to develop, implement and fund municipal waste diversion
programs.
Under the terms of the MOU, the WDO will undertake the following initiatives in 1999 and 2000:
· fund Blue Box costs related to wine and liquor glass containers ($8 million);
· increase diversion of organic wastes (as much as $2 million);
· establish additional depots for municipal household hazardous wastes (as much as $ 1 million);
· improve the efficiency and effectiveness of Blue Box programs (as much as $2 million);
· inform the public about waste management activities, with municipalities receiving free advertising space in daily
newspapers ($1 million).
The WDO will have a 12 member board of directors with representation from the following sectors:
· 4 members, including the chair, will come from the food and consumer products sectors, represented by Corporations
Supporting Recycling (CSR). CSR is contributing $4 million to the WDO and is providing administrative, technical and
executive support to the WDO for one year.
· 4 members from the municipal sector, represented by the Association of Municipalities of Ontario (AMO).
· 1 member from the Liquor Control Board of Ontario (LCBO), which is providing $9 million. This is the remainder of the
$13 million in Blue Box glass funding previously announced by Minister Sterling in October 1998.
· 1 member from the Canadian Newspaper Association, which is providing $1 million of free advertising space.
· 1 member representing both the Canadian Manufacturers of Chemical Specialities Association and the Canadian Paint
and Coatings Association, which are jointly contributing $500,000.
· 1 member from the Recycling Council of Ontario.
· 1 member from the Ministry of the Environment (MOE), a non-voting member.
All members other than the MOE member will have one vote in WDO decisions, except the chair who will have two votes.
According to the Minister, a key objective of the organization is to develop a sustainable funding formula to cover up to 50
percent of net operating costs for municipal Blue Box programs, and to continue other waste diversion programs.
The MOU also calls for the WDO to design, and develop options for funding a household hazardous waste management
depot program.
Although approximately a year behind schedule, the WDO announcement is a significant step forward in implementing
extended producer responsibility in Ontario. However, the minority position of municipalities on the WDO board and the
short term, voluntary nature of the industry commitment are major concerns. AMO must ensure that strong, knowledgeable
representatives are appointed (with at least one from the City of Toronto) to ensure that funding is distributed in a fair and
equitable manner, and that a long term sustainable funding formula is developed.
Based on the precedent established with the distribution of LCBO Blue Box glass funding for 1998, in which Toronto
received $950,000 of the $4 million in available funds, it is expected that Toronto will receive approximately $1 million in
Blue Box glass funding in each of 1999 and 2000.
It is also projected that Toronto will receive one quarter of the funding for organics waste diversion, household hazardous
waste depots and free advertising space, which would total about $1 million.
Conclusions:
The formation of the WDO is a first step towards meaningful extended producer responsibility in Ontario. Strong
municipal representation on the WDO board will be critical in order to ensure an effective long term funding strategy for
municipal waste diversion programs is developed.
Contact:
Andrew Pollock
Director, Policy and Planning
Solid Waste Management Services
Works and Emergency Services
Metro Hall, 19th Floor
Phone: 392-4715
Fax: 392-4754
E-mail: apolloc@toronto.on.ca
Angelos Bacopoulos
General Manager
Solid Waste Management Services
Barry H. Gutteridge
Commissioner
Works and Emergency Services
CAP:RS
(wdo)
