January 5, 1999
To:Works and Utilities Committee
From:Barry Gutteridge
Commissioner of Works and Emergency Services
Subject:Liquor and Wine Container Deposit/Return By-law
Purpose:
The purpose of this report is to provide information on the Ontario government's regulation
amending Regulation 27/96 made under the Municipal Act which effectively blocks the City's
deposit/return by-law for liquor and wine containers.
Funding Sources, Financial Implications and Impact Statement:
The Ministry of Environment (MOE) has indicated that if Toronto repeals its deposit/return
by-law before March 31, 1999, the City will be eligible to receive its share of the $4 million in
annual Blue Box Program funding committed by the Liquor Control Board of Ontario for
1998 and 1999. Toronto's share of the funding is estimated to be approximately $1 million per
year. The City will also be eligible to receive additional industry funding for recycling,
centralized composting and household hazardous waste depots in 1999.
Recommendations:
It is recommended that:
(1)City Council repeal By-law No. 448-1998, being the licensing by-law imposing the
deposit/return requirement on liquor and wine vendors, given the enactment of the regulation
amending Ontario Regulation 27/96;
(2)the Commissioner of Works and Emergency Services be authorized to review the
eligibility criteria and funding commitment related to the Ministry of Environment's Blue Box
funding plan and report back to Works and Utilities Committee; and
(3)the City Solicitor be authorized to introduce the necessary Bill to effect the foregoing
repeal.
Council Reference/Background/History:
At its meeting on July 8, 1998, Toronto Council adopted By-law No. 448-1998 licensing all
liquor and wine retail outlets in the City effective January 1, 1999, and requiring them to
implement a deposit/return system for liquor and wine containers as a condition of licencing.
Staff have estimated that removing liquor and wine bottles from the Blue Box and the garbage
would save the City approximately $1.0 million per year in operating costs.
Discussion and Justification:
On October 7, 1998, the MOE announced a voluntary industry funding plan for Blue Box
Programs and other 3Rs initiatives. The Liquor Control Board of Ontario (LCBO) has
committed $4 million in annual funding in 1998 and 1999, of which Toronto is expected to be
eligible for approximately $1 million per year. The MOE is also negotiating with other
industry sectors to obtain additional voluntary funding for Blue Box Programs, as well as for
centralized composting and household hazardous waste depots.
The Minister of the Environment has indicated that he expects industry funding to cover 50
percent of net Blue Box Program costs by the year 2000. The Minister has also stated that in
order to be eligible for any funding, Toronto would have to repeal its deposit/return by-law.
On December 18, 1998, the Minister of Municipal Affairs and Housing filed a regulation to
amend Regulation 27/96 made under the Municipal Act to state that municipalities do not
have the power to impose a deposit/return system on liquor and wine retail outlets as a
condition of licencing. Specifically, Ontario Regulation 27/96 was amended by adding the
following section:
"6.A municipality, including a regional municipality, does not have the power under any Act
to impose, as a requirement of obtaining, continuing to hold or renewing a licence, any
condition respecting containers for alcoholic beverages, including a condition requiring the
vendor of alcoholic beverages to establish, operate or maintain a system or facilities for the
return of containers for alcoholic beverages."
Furthermore, the MOE has informed staff that the City of Toronto must repeal its deposit
return by-law in advance of March 31, 1999, in order to be eligible for the LCBO's 1998 Blue
Box funding, which expires as of that date. This requirement is apparently part of the MOE's
eligibility criteria for Blue Box funding. A letter from the MOE specifying the funding
commitment and funding eligibility criteria is expected some time in January 1999.
Conclusions:
The Minister of Municipal Affairs and Housing has made a regulation effectively blocking the
City of Toronto's deposit/return by-law for liquor and wine containers. If the City repeals
By-law No. 448-1998 before March 31, 1999, it will be eligible for LCBO Blue Box funding
of approximately $1.0 million for 1998. In 1999, an additional approximately $1.0 million in
LCBO funding will be available to Toronto, plus a yet to be determined amount of funding
from other industry sectors for Blue Box recycling, centralized composting projects and
household hazardous waste depots. Given that the only municipal objective behind the
licensing of vendors of liquor and wine beverages has been foreclosed, it is appropriate that
By-law No. 448-1998 be repealed.
Contact Names:
Andrew Pollock
Director - SWM Policy and Planning
Solid Waste Management Services
Works and Emergency Services
Phone: 392-4715
Fax: 392-4754
E-mail: andy_pollock@metrodesk.metrotor.on.ca
Angelos BacopoulosBarry H. Gutteridge
General ManagerCommissioner
Solid Waste Management ServicesWorks & Emergency Services
CAP:ag/kl/swm - Liq2con.rev
