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HomeMy WebLinkAboutWD-63-94-~ THS REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# M~(o<(,C Res. # G P ~ - ~ 14 -`~ %. Date: DECEMBER 12, 1994 By-Law # Report #: tines- _-~-cn File #: ~.OL Subject: CANADIAN INDIISTRY PACKAGING STEWARDSHIP INITIATIVE (CIPSI) Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following:. 1. THAT Report WD-63-94 be received; 2. THAT the Minister of Environment and Energy be advised that the Municipality of Clarington endorses the resolution adopted by the Association of Municipalities of Ontario as detailed on Attachment No. 1 to Report WD-63-94; 3. THAT a copy of Report WD-63-94 be forwarded to the Minister of Environment and Energy and the President of the Association of Municipalities of Ontario, Mr. A. Gretzinger; and 4. THAT Mr. Gretzinger be advised of Council's decision. REPORT 1.0 ATTACHMENTS No. 1: Municipal Engineers Association's Position on CIPSI 2.0 BACRGROIIND 2.1 At a meeting held on July 4, 1994, Council passed Resolution #GPA-466-94: "THAT the Director of Public Works contact a _ 1U15 o.P. ~®: ~.~.. REPORT NO.: WD-63-94 PAGE 2 "THAT the Director of Public Works contact a representative from the Ministry of Municipal Affairs pertaining to the CIPSI Program with the view of the Municipality providing input and the possibility of a meeting being held within the Municipality of Clarington". 2.0 REVIEW AND COMMENT 2.1 Request by Council to Contact the Minister of Municipal Affairs The Minister of Municipal Affairs has not been contacted because it was felt that this issue should be dealt with. by the Minister of Environment and Energy. 2.2 Position Taken By the Municipal Engineers Association (MEA1 and the Association of Municipalities of Ontario (A.M.O.3 The Municipal Engineers Association endorses the resolution of the Association of Municipalities of Ontario and recommends .that the Municipalities adopt the resolution drafted by the Association of Municipalities of Ontario. Respectfully submitted, Walter A. Evans, P.Eng. Director of Public Works Reviewed by, W. H. S ockwell Chief Administrative Officer WAE*ph December 5, 1994 Attachment pc: Minister of Environment and Energy 7 Overlea Boulevard, 5th Floor Toronto, Ontario M4H lA8 1016 REPORT NO.: WD-63-94 PAGE 3 pc: Alf Gretzinger, P.Eng. President Municipal Engineers Association l00 Wellington Square Brantford, Ontario N3T 2M3 ~a~~ OFFICE OF: Aif Gretzinger, P. Eng., PRESIDENT 100 Wellington Sq., Brantford, OnL, N3T 2M3 Telephone: 519 759-1350 Fax 519 754-0724 MEA POSITION PAPER ON AMO`S DRAFT POSITION ON THE PROPOSAL BY THE CANADIAN INDUSTRY PACKAGING STEWARDSHIP INITIATIVE (CIPSI) For several years, many Ontario Municipalities, the Association of Municipal Recycling Co-Ordinators, and AMO, the Association of Municipalities of Ontario, have been pressuring the Province to introduce a funding model for the "Blue Box Program" which would lessen the burden on the Municipal taxpayer and shift more of the responsibility to the packaging industry. During 1993, representatives from these groups met with the Provincial Government and packaging industry representatives to discuss future funding arrangements for the packaging component of Municipal Blue Box Programs. The discussions focused on the potential of a proposal prepared by the packaged goods industry, the Canadian Industry Packaging Stewardship Initiative (CIPSI). While far from perfect, it is generally felt that the CIPSI proposal is an appropriate next step in the evolution of Ontario's Blue Box recycling system. WHAT IS CIPSI? The Canadian Industry Packaging Stewardship Initiative (CIPSI) is a proposal which has been brought forward by industry in consultation with the Ministry of Environment and Energy and selected Municipal representatives. The Municipal representatives included individuals who were members of both the Association of Municipalities of Ontario (AMO) and the Association of Recycling Co-Ordinators. It is MEA's position that this initiative is intended to avoid regulations that would otherwise have been imposed by the Province. Notwithstanding, in principle, it has the potential to improve the financial .stability of Municipal recycling systems and create more markets for recycled materials. Economic incentives for industry to reduce and reuse its packaging are provided in the proposal. Municipal Engineers Association ATTACHMENT N0. 1 '~ ~'~ ~ WD-63-94 -2- CIPSI's sponsors are a coalition of Associations representing Canada's major packaged goods and other related industries, including brand owners, material suppliers, distributors and retailers. Seven industry Associations are sponsoring the initiative: Canadian Council of Grocery Distributors (CCGD), Canadian Federation of Independent Grocers (CFIG), Canadian Soft Drink Association (CSDA), Environment and Plastic. Institute of Canada (EPIC), Grocery Products Manufacturers of Canada (GPMC), Packaging Association of Canada (PAC) and the Retail Council of Canada. The overall objective of the proposal is to support the Ontario Government's target of at least SOo diversion by the year 2000. It asserts that "brand owners" are responsible for packaging stewardship in the private sector because it is brand owners who determine the packaging type and design. When the brand owner is not located in Ontario, the stewardship responsibility would fall on the first company in the Province to sell the packaged product. All packaged goods industries must demonstrate a commitment to packaging stewardship. This would be ensured through a "backdrop regulation". The regulation would require that all who are responsible for introducing packaging to the marketplace take action to divert packaging from disposal, through reuse or recycling. Two options would be available: management through a reuse or recycling program other than the Blue Box, or provision of financial support to the Blue Box programs by joining CIPSI. IMPLEMENTATION Within three months of the promulgation of the backdrop regulation an Ontario based organization would be established and a Board of Directors appointed. The organization will then be referred to as CIPSO, the Canadian Industry Packaging Stewardship Organization. The Board would be responsible for ensuring that the mandate of CIPSO is carried out. This includes but is not limited to: raising funds to cover payments to Municipalities, processing of those payments, funding research and market development for recovered packaging materials and materials not currently collected, and encouraging packaging reduction through incentives and liaison with Municipalities, etc. PAYMENTS TO MUNICIPALITIES CIPSO's goal is to make payments to Municipalities based on the true cost of recycling packaging material. In order to reach that goal, a two phase approach to implementation is proposed. At .the beginning of Phase I, an audit process would be initiated to 1()19 -3- determine a representative cost for the collection and processing of packaging waste. During Phase I, CIPSO would pay Municipalities $65.00 per tonne for all "qualifying" packaging materials. "Qualifying" material includes all final consumer packaging collected in Ontario and shipped for recycling. Before any new packaging material is eligible for industry funding, MOEE and CIPSO must agree that a long-term secondary market exists. The payment to Municipalities is industry's assessment of their share of costs. This "top-up" is payed only when the packaging material is collected and processed in the Blue Box program. In Phase 2, it is proposed that the Municipal share be held to one- third of the gross cost to effectively manage packaging. CIPSO would pay Municipalities for each packaging material collected in the Blue Box program. The principles of the proposal do not adequately address Municipal objectives. The other 2R's of the 3R hierarchy (Reduce, Reuse) were not mentioned and we would like to see them specifically addressed. CIPSI deals only with packaging stewardship. Hence, there is no diversion support funding for many products that are commonly used and purchased and that are easily recyclable. Newspapers and magazines are prime examples. If the Province's ambitious goals year 2000 are to be met, it will all consumer products, not just of achieving 50o diversion by the necessitate a program that involves selected packaging materials. SU[~IIv1ARY While MEA welcomes the CIPSI initiative and supports, in principle, AMO's position (see attached document from AMO), it is important to note that it is only a partial solution for Blue Box funding. Currently, CIPSI eligible packaging only comprises about 25g to 40~ of curbside recycling programs. Therefore, Municipalities would only receive CIPSI funding on that percentage. Further, should the Province elect to discontinue their funding once CIPSI is operational, Municipalities would be left to totally fund the remainder of the Blue Box programs. MEA believes that stewardship means full responsibility and that this proposal should be developed as part of a comprehensive plan in which the manufacturing industry becomes fully responsible for the funding and recovery of all legislated or practically recoverable materials, including fibres. While fibres constitute approximately 70~ of the material we collect by weight, the newspaper industry is 1020 -4- not a member of CIPSI. Notwithstanding, this material is legislated and must be collected. RECOMt~1ENDATION We would, therefore, recommend that Municipalities adopt the following resolution as drafted by AMO: "WHEREAS packaging industry representatives through the Canadian Industry Packaging Stewardship Initiative (CIPSI) have made a proposal for funding packaging recycling in Ontario; WHEREAS CIPSI and the Ontario Ministry of the Environment and Energy (MOEE) have negotiated elements of this proposal and released it for public consultation; WHEREAS discussions were held with Municipal representatives during the development of the proposal, the Municipal sector was not formally involved in negotiating its elements; WHEREAS AMO has prepared a draft Municipal position on the proposal in its paper. The Funding of Packaging Recycling in Ontario: AMO's Draft Position on the Proposal by the Canadian Industry Packaging Stewardship Initiative (CIPSI) which increases CIPSI's share from $65.00/tonne to $100.00/tonne; WHEREAS AMO's draft position supports moving ahead with this initiative as the initial step towards comprehensive funding arrangements for all materials collected in Ontario's Municipally sponsored recycling programs; WHEREAS the Association is prepared to enter into negotiations on these future funding arrangements with the Ministry of the Environment and Energy (MOEE), AMO, CIPSI and representatives of the paper fibre industry; WHEREAS AMO's draft position identifies 25 elements of the proposal requiring negotiation between the three parties of which we agree to; save item #7; Item #7 deals with the Municipal share of the cost sharing formula. AMO has taken the position that Municipalities will be paid only for the costs of operating an "efficient" program. What constitutes an "efficient" program is difficult to define as this is unique to each Municipality. A number of factors affect collection costs such as population densities as well as distance from markets. Instead, a list of criteria should be devised for Municipalities to satisfy in order to obtain the funding. It is also proposed that the Municipal . 1021 -5- share be capped at 1/3 of gross costs; THEREFORE BE IT RESOLVED that Council supports the draft position put forward in AMO's paper and supports AMO in its negotiations on long-term funding arrangements for Municipally sponsored multi- material recycling programs. , ;, ~r i i/ A~ Gretzinger, P.Eng., President, AMO. tU22