Liquor and Wine Container Deposit/Return By-law

The Works and Utilities Committee recommends:

(1)the adoption of the report dated January 5, 1999, from the Commissioner of Works and Emergency Services;

(2)that the Minister of the Environment be requested to provide the City of Toronto with the $1.0million previously offered, in order to assist the City in its disposal of the continued flow of Liquor Control Board of Ontario (LCBO) bottles in the Blue Boxes; and

(3)that the Federal and Provincial Governments be again requested to review packaging legislation in order for the City to achieve its waste reduction targets.

The Works and Utilities Committee reports, for the information of Council, having:

(1)adopted the following recommendation embodied in the submission from the Toronto Environmental Alliance, with a request that the Commissioner of Works and Emergency Services submit a report thereon to the next meeting of the Committee, scheduled to be held on February 10, 1999:

"That the Works and Utilities Committee direct the Works and Emergency Services Department to meet with Toronto Environmental Alliance, Canadian Bottle Recycling Inc., and r/Works to investigate the possibility of a permanent bottle collection program.";

(2)requested the Commissioner of Works and Emergency Services to submit a report to the next meeting of the Committee on:

(i)all the costs the City of Toronto incurs when handling wine and liquor bottles sold by the LCBO;

(ii)the feasibility of allocating a portion of the funds set aside for deposit/return publicity to support the initiatives being recommended by the Toronto Environmental Alliance; and

(iii)the advertising budget that would be required to bring the issue of deposit/return to the public's attention; and

(3)requested the Commissioner of Works and Emergency Services to contact Brewers' Retail and Molson Breweries with any suggestions on how to reduce waste on a voluntary basis.

The Works and Utilities Committee submits the following report (January 5, 1999) from the Commissioner of Works and Emergency Services:

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 the 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 $4.0 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 $1.0 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 the Environment's Blue Box funding plan and report back to the 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 licensing. 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 $4.0 million in annual funding in 1998 and 1999, of which Toronto is expected to be eligible for approximately $1.0 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 licensing. 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.

________

The Works and Utilities Committee reports, for the information of Council, having also had before it during consideration of the foregoing matter the following communications, a copy of which has been forwarded to all Members of Council and which is on file in the office of the City Clerk:

(i)(December 18, 1998) from the Minister of Municipal Affairs and Housing forwarding a copy of the amendment to the regulation under the Municipal Act with regard to municipal powers concerning alcoholic beverage containers; advising that the Liquor Control Board of Ontario is contributing $4.0 million to assist municipalities with the cost of recycling wine and liquor containers; and reviewing other steps in the government's waste diversion plan;

(ii)(January 12, 1999) from Mr. Joseph P. Hruska, Vice President, Municipal Development, CSR: Corporations Supporting Recycling, expressing support for the recommendation to repeal By-law No. 448-1998; and

(iii)(undated) from the Toronto Environmental Alliance (TEA), outlining a proposal for the implementation of a cost-effective bottle collection program based on a bottle drive that took place in December 1998; submitting an information brief on "r/Works", a coalition of groups working in partnership with people who experience long-term poverty, in the area of recycling; and recommending that the Works and Utilities Committee direct the Works and Emergency Services Department to meet with Toronto Environmental Alliance, Canadian Bottle Recycling Inc., and r/Works to investigate the possibility of a permanent bottle collection program.

Mr. Gord Perks, Toronto Environmental Alliance appeared before the Works and Utilities Committee in connection with the foregoing matter.