HomeMy WebLinkAboutPeel Region - Waste Management Agenda Nov 30, 2017DATE:
TIME:
THE REGIONAL MUNICIPALITY OF PEEL
WASTE MANAGEMENT STRATEGIC ADVISORY COMMITTEE
AGENDA
Thursday, November 30, 2017
11:00 AM — 1:00 PM
LOCATION: Regional Council Chamber, 5th Floor
Regional Administrative Headquarters
10 Peel Centre Drive, Suite A
Brampton, Ontario
WMSAC - 4/2017
MEMBERS: F. Dale; A. Groves; J. Innis; J. Kovac; M. Mahoney; M. Palleschi; C.
Parrish; K. Ras; R. Starr
Chaired by Councillor M. Palleschi or Vice -Chair Councillor J. Innis
1. DECLARATIONS OF CONFLICT OF INTEREST
2. APPROVAL OF AGENDA
3. DELEGATIONS
4. REPORTS
4.1. Roadmap to a Circular Economy in the Region of Peel (A copy of the "Roadmap
to a Circular Economy in the Region of Peel 2018-2041 Report" is available
from the Office of the Regional Clerk for viewing)
Presentation by Norman Lee, Director, Waste Management
4.2. Update on the Transition of the Blue Box Program and Used Tires Program to Full
Producer Responsibility (For information)
4.3. Update on the Province Food and Organic Waste Framework (For information)
4.4. Strategic Terms for the Anaerobic Digestion Facility Project
5. COMMUNICATIONS
6. IN CAMERA MATTERS
WMSAC-4/2017
-2- Thursday, November 30, 2017
7. OTHER BUSINESS
8. NEXT MEETING
Thursday, February 1, 2018, 1:00 p.m. — 3:00 p.m.
Regional Administrative Headquarters
Council Chamber, 5th Floor
10 Peel Centre Drive, Suite A
Brampton, Ontario
9. ADJOURNMENT
4.1-1
or
Region
of Peel
working with you
REPORT
Meeting Date: 2017-11-30
Waste Management Strategic Advisory Committee
DATE: November 21, 2017
REPORT TITLE: ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
FROM: Janette Smith, Commissioner of Public Works
RECOMMENDATION
That the Region of Peel's Long Term Waste Management Strategy as described in the
report of the Commissioner of Public Works titled, "Roadmap to a Circular Economy in
the Region of Peel" be adopted.
• On October 8, 2015, Regional Council adopted a 3Rs waste diversion target of 75
percent by 2034. To meet this target, staff has developed a new long term strategy
titled "Roadmap to a Circular Economy in the Region of Peel" (the "Roadmap"). A full
copy of the Roadmap is available from the Office of the Regional Clerk for viewing.
• The Roadmap identifies three key objectives for waste management:
o Minimize waste generation;
o Maximize the recovery of resources from our waste in a way that fosters the
growth of the circular economy; and
o Design and deliver waste management services that meet the needs of the
customer in a cost-effective manner.
• The Roadmap recommends programs, policies and processing capacity that will be
required to reach Peel's 3Rs waste diversion target.
• It is anticipated that approved and proposed programs will increase diversion by two
percent, approved and proposed policies will increase diversion by four percent,
Anaerobic Digestion will increase diversion by five percent and Mixed Waste
Processing will increase diversion by up to 20 percent, bringing Peel's overall
diversion rate to over 75 percent.
• The projected operating impact of the Roadmap (i.e. the net impact beyond what
would be spent if the actions in the Roadmap are not implemented) is approximately
$30 million per year (2017$), which could be potentially offset by $10 million savings
from Blue Box program and $10 million from termination of contribution to reserves.
• The projected capital requirement is $365 million which could be partially funded
through designated reserves (50 million) and from Development Charges ($18
million).
• Subject to Council approval of the Roadmap, detailed implementation plans that set
out the preferred implementation approach and timelines for the Actions in the
Roadmap along with detailed financial and staffing implications will be presented for
approval commencing in 2018, though some initiatives may begin in 2017.
4.1-2
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
Subject to Council approval of the Roadmap, staff will report back with a financing
plan including consideration of adopting a volume based user fee.
DISCUSSION
1. Background
At a special Regional Council meeting held on October 8, 2015, Regional Council adopted a
3Rs target of 75 percent by 2034 (Council Resolution 2015-741). At the same meeting,
Regional Council directed the Waste Management Strategic Advisory Committee to develop
a plan to achieve the target.
Between October 8, 2015 and April 6, 2017, Waste Management Strategic Advisory
Committee worked closely with staff to examine programs, policies and processing capacity
that Peel could adopt to achieve the target. A detailed list of meetings and resolutions
between October 8, 2015 and April 6, 2017 is included in Appendix I.
At its April 6, 2017 meeting, the Committee received a report entitled, "Update on the
Development of Peel's Plan to Achieve 75 Percent Diversion". Among other things, the
report recommended 3Rs programs and policies for endorsement for public consultation. At
its April 13, 2017 meeting, Council endorsed the report for public consultation (Council
Resolution 2017-288).
The results of the public consultation, the infrastructure needs and the proposed actions to
achieve Peel's 75 percent 3Rs diversion target by 2034, are described in Sections 7, 8 and
9 respectively of this report.
A full copy of the "Roadmap to a Circular Economy in the Region of Peel" is available from
the Office of the Regional Clerk for viewing.
2. The Circular Economy and Provincial Framework
Our economy currently follows a linear pattern of consumption — resources are extracted,
turned into products that are used for only a short period of time and then disposed. This
pattern does not recognize the high economic, environmental and social costs of waste and
is unsustainable in the long-term. Conversely, a circular economy, as depicted in Figure 1
below, is a system that uses reuse, recycling and remanufacturing to circulate resources in
such a manner so as to retain the productive value of materials and products in the
economy for as long as possible.
The province has adopted a circular economy approach through the Waste -Free Ontario Act
and its accompanying Strategy for a Waste -Free Ontario. The Region, along with other
municipal and regional governments, has an important role in launching and accelerating
the transition to a circular economy. Peel's updated long term waste management strategy,
entitled, "A Roadmap to a Circular Economy in the Region of Peel" (the "Roadmap"),
supports this transition by setting a clear framework and associated actions to maximize
waste reduction and resource recovery in Peel.
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4.1-3
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
Figure 1: Circular economy approach
MANUFACTURING
PRODUCTION
SOURCING
EXTRACTION
MARYESTING
NATURAL DISTRIBUTIDN
E SOURCES PACKAGING
} LUGISTICS
0
N w
a�. pES115TRfBUT(
SALES
ENERGY o- P0.1R.6a MMMING
RE[DYERY u• RETAIL •SERVICE
ANU � � 4 c'Fyo
DISPOSAL OJ "'d a ,_
gf�r0
GqG
QLLErTION
S1l1 R(INC. rnu UTAlPnnu. v
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Source: Circular Economy Innovation Lab
3. Goals and Objectives
The Roadmap includes the following Goals and Objectives for Peel.
Goals: A circular economy with zero waste from residential sources in the Region of Peel
and zero greenhouse gas emissions from residential waste management.
Objectives:
Minimize waste generation
Maximize the recovery of resources from our waste in a way that fosters the growth
of the circular economy
Design and deliver waste management services that meet the needs of the customer
in a cost-effective manner
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4.1-4
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
4. Guiding Principles, Planning Horizon, Aligning with Federal and Provincial Acts and
Interests, and Integration with other Regional Strategies
Guiding Principles
The Roadmap includes the following principles to guide the implementation of the Actions in
the Roadmap:
1. We will work collaboratively to identify and implement solutions that meet our
objectives
2. We will balance the needs of the community, the environment and the economy
3. We will utilize evidence -based decision making
4. We will seek out solutions that are fair and equitable
5. We will treat stakeholders with respect and value diverse opinions, ideas and
perspectives
6. We will seek alignment with provincial and federal efforts
7. We will use competitive tension to support a fair and open marketplace
Planning Horizon
Long-term plans for municipal waste management infrastructure and services typically use a
planning horizon ranging from 20 to 30 years because this time frame corresponds well with
the development and operational life of infrastructure.
The 2014 Waste Reduction and Resource Recovery Strategy used a 20 year planning
horizon to chart the Region's waste management activities to 2034. The Roadmap modifies
the planning horizon to align with other infrastructure planning horizons in the Region of
Peel and therefore charts activities through to 2041.
Staff recommends that the Roadmap be reviewed every four years and updated every eight
years.
Aligning with Federal and Provincial Acts and Interests
Both the federal and provincial governments have made commitments to take action on
climate change and have adopted carbon pricing as the means to move towards a low
carbon economy.
In 2016, the Province of Ontario moved forward with two major pieces of legislation (the
Climate Change Mitigation and Low -Carbon Economy Act and the Waste -Free Ontario Act)
that will significantly impact how waste is managed in the province. Each of these pieces of
legislation has an accompanying strategy which provides more detail on the province's
plans — the Climate Action Plan and the Strategy for a Waste -Free Ontario respectively.
The Roadmap and its recommended actions have been developed to ensure alignment with
these federal and provincial commitments.
On November 16, 2017 the province posted its proposed Food and Organic Waste
Framework. A cursory review suggests the actions recommended in the Roadmap are
generally consistent with the Framework but a more detailed review will be undertaken by
staff to ensure this is the case. The Food and Organic Waste Framework is discussed in
4.1-5
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
more detail in the report from the Commissioner of Public Works titled "Update on the
Province's Food and Organic Waste Framework" and listed on the November 30, 3017
Waste Management Strategic Advisory Committee agenda.
Staff will continue to support provincial efforts to hold producers responsible for the
management of the products at the end -of -life and advocate for programs that maintain the
interests of Peel's residents.
Integration with Other Regional Strategies
The Region uses an Integrated Planning Framework to guide the development and
integration of strategic plans for all Regional programs and services. The following Regional
Strategies and Plans informed the development of the Roadmap:
• The Region's Official Plan
• The Region's Strategic Plan
• The Region's Long Term Financial Plan
• The Region's Climate Change Statement of Commitment
• The Region's Corporate Social Responsibility Strategy
5. Current Status — 2016 Diversion, Generation and Participation Rates
In 2016, the Region managed just over 500,000 tonnes of residential waste. This included
Blue Box recyclables, Green Bin organics, yard waste, other recyclables and garbage.
Figure 2 shows that approximately 50 percent of the residential waste was diverted, while
the remaining 50 percent was sent to landfill.
Figure 2: 2016 Diversion from Landfill
Region of Peel
2016 Diversion from Landfill - 50%
Organics
76,407
15%
15%
Landfill
Blue Box
254,989
88,025
50%
17%
Yard Waste
49,684
10% MSHW
1,639
Other < 1 %
Diversion
41,521 WEEE
8% 1,414
<1%
Organics Blue Box Yard Waste
■MSHW �WEEE i Other Diversion Landfill
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4.1-6
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
There are approximately 330,000 curbside households (approximately 1,100,000 residents)
and 94,000 multi -residential households (approximately 240,000 residents). Table 1 shows
the average generation of waste per household in Peel.
Table 1: Average 2016 Peel Curbside and Multi -Residential Generation Rates
Generation per Household
Curbside
996 kg/yr
Multi -Residential
661 kg/yr
The numbers in Table 1 above reflect residential tonnage only and do not include waste
generated in the Industrial, Commercial and Institutional (ICI) sector. In Ontario there are
approximately two tonnes of ICI waste generated for every tonne of residential waste. The
numbers in table 1 also reflect generation per household. Staff will also track generation per
capita to reflect the fact that household size varies within the Region and across the
province.
It should be noted that Peel households are larger than their GTA counterparts. Table 2
compares of the number of people per household in the GTA.
Table 2: GTA Persons per Household
Municipality
Curbside Persons
Per Household
Multi -Residential
Persons Per
Household
Total Persons Per
Household
Region of Peel
3.39
2.49
3.21
City of Toronto
2.79
2.08
2.45
Halton Region
2.90
1.74
2.84
Durham Region
2.86
1.93
2.83
In 2016, 87 percent of Peel households participated in the Blue Box program and 61 percent
participated in the Green Bin program, both of which are comparable to other GTA
municipalities as depicted in Figures 3 and 4.
4.1-7
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
Figure 3: Municipal Blue Box Program Participation Rates
100
90
80
70
+, 60
c
50
d
a 40
30
20
10
0
Blue Box Program Participation Rates
City of Toronto Durham Region Halton Region Region of Peel
(2016/2017 data) (2011 data) (2015 data) (2016/2017 data)
Figure 4: Municipal Green Bin Program Participation Rates
100
90
80
70
50
50
40
30
20
10
0
Green Bin Program Participation Rates
City of Toronto Durham Region Halton Region Region of Peel
(2016/2017 data) (2011 data) (2015 data) (2016/2017 data)
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4.1-8
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
Notwithstanding Peel's participation rates, approximately half of what Peel residents disposed of
as garbage was material that could have gone in the Blue Box or Green Bin as shown in the
following pie charts in Figure 5:
Figure 5: Garbage Composition
Curbside Multi -Residential
■ Rtcycting _ _. : i Ekttronics A Hazardous waste (paint, batteries, ttC.) ■ Garbage
The information above is evidence that there is opportunity to improve Peel's current
diversion rate.
6. The Process
Staff used a rigorous and methodical approach to develop a Roadmap. Staff identified and
evaluated a long list of potential new 3Rs programs and policies from across North America
and applied screening and evaluation criteria in a stepwise fashion to systematically shorten
the list to the programs and policies recommended in the Roadmap.
Staff also conducted a comprehensive investigation to determine if mixed waste processing
could be used to supplement source separation programs by recovering recyclables and
organics from Peel's garbage stream. Staff's investigations included waste audits,
laboratory analysis of the garbage and a literature review of Mixed Waste Processing. Staff
also identified, assessed and visited mixed waste processing facilities in North America and
Europe.
The program, policy, and Mixed Waste Processing assessments were made with strategic
input from the Waste Management Strategic Advisory Committee and feedback from the
public.
IM
4.1-9
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
This Roadmap includes new programs and new policies to improve source separation and
new post collection processing capacity. The Actions from the Roadmap are included in
Section 9 of this report.
7. Results of Public Consultation
Waste Management Strategic Advisory Committee was asked for feedback and direction at
key milestones as the Roadmap was developed. In April 2017, Council endorsed a suite of
possible new programs and policies for public consultation.
Feedback was sought from residents through four types of consultation: focus groups,
telephone surveys, an online survey and public information centres. General themes that
emerged from the public consultation activities are listed below.
• Respondents support and are satisfied with the current waste management system
• Respondents feel that having more information on the Region's current performance and
the associated benefits of recycling would help increase resource recovery
• Respondents are in favour of receiving more information on repair and reuse options
• Respondents strongly support additional education in schools and see it as important to
instill habits associated with reduction, reuse and recycling at a young age
• There is strong interest in a Region -wide textile recovery program, but there is a
preference for the Region to utilize existing not -for -profit organizations for collection
rather than creating a new Regional collection program
• Some respondents who live in the multi -residential sector are interested in a multi -
residential organics program, but others are concerned about the program due to the
inconvenience and negative attitude toward handling food waste as a separate material
from garbage
• There is little interest in new bulky item recovery programs (e.g. carpets, furniture,
mattresses, etc.), as respondents feel bulky items are already being collected and/or
reused through a variety of other means
• Respondents want producers of products and packaging to be responsible for managing
these materials at end -of -life
• Respondents are reluctant to pay for new source separation programs if, in the future,
those programs are going to be provided by producers
• Respondents generally support positive over negative incentives to encourage effective
participation in resource recovery programs. Respondents recognize that penalties could
be useful tools, but favour having improperly sorted materials not collected over financial
penalties.
For additional details regarding the public consultation, see Appendix II.
8. Infrastructure Needs
On July 3, 2014, Regional Council endorsed the existing Waste Management Infrastructure
Development Plan (Council Resolution 2014-626). Significant changes affecting the
Region's waste management infrastructure requirements have occurred since the 2014 plan
was adopted, including:
Adoption of a 75 percent 3Rs diversion target
Enactment of the Waste -Free Ontario Act
4.1-10
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
• Acquisition of property for the Anaerobic Digestion Facility
• A recommendation in the Roadmap to develop mixed waste processing capacity
Given the significant impact these changes have on waste management infrastructure
requirements an update of the Infrastructure Plan is warranted.
A review and update of the Infrastructure Plan is required to ensure that Peel will have the
infrastructure in place to meet its objectives for waste management. An updated
infrastructure plan will consider processing capacity requirements for the major material
streams and transfer capabilities to support efficient collection and handling of waste
materials. The role of the existing waste management facilities will be assessed and where
appropriate, changes in function or operation will be recommended. An updated
infrastructure plan will also identify the need to acquire new property or easements for waste
management infrastructure, if required.
Anaerobic Diaestion
In 2015 Regional Council approved the development of an Anaerobic Digestion facility
(Council Resolution 2015-742). A property located at 7500 Danbro Crescent, in north-west
Mississauga was acquired in September 2017 for the Anaerobic Digestion facility. The
capacity of the Anaerobic Digestion facility will be 90,000 tonnes per year, which will meet
the Region's needs for the foreseeable future. If construction proceeds according to plan,
the facility will commence operation in 2023.
Detailed information about the Anaerobic Digestion Facility project is set out in the report of
the Commissioner of Public Works, titled "Strategic Terms for the Anaerobic Digestion
Facility Project" listed on the November 30, 2017 Waste Management Strategic Advisory
Committee agenda.
Mixed Waste Processing
On November 19, 2015, the Director of Waste Management introduced the concept of
mixed waste processing to the Waste Management Strategic Advisory Committee and
advised that processing Peel's garbage stream in a mixed waste processing facility to
recover recyclables and organics will be necessary to achieve the Region's 3Rs diversion
goal. Mixed waste processing may also be necessary to make Peel's waste management
programs compliant with new provincial actions and policies listed in the Food and Organic
Waste Framework, in particular the expected ban on disposal of organics.
Staff completed a feasibility study of Mixed Waste Processing to process Peel's garbage as
a complement to source separation programs to help meet the Region's target of 75 percent
3Rs waste diversion. The details of the feasibility study are included in Appendix III.
A Mixed Waste Processing concept for Peel that would conform to current and anticipated
provincial policy and aid the Region to achieve its 3Rs waste diversion rate target would
include the following:
• Recovery of recyclable material of a quality acceptable to established markets;
• Recovery of organics for processing by Anaerobic Digestion or composting to produce
compost or fertilizer products meeting the quality requirements for use in Ontario; and
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4.1-11
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
Production of a fuel product meeting the regulatory and end user quality requirements
for use as an Alternative Low Carbon Fuel in Ontario.
Processing all of Peel's garbage by Mixed Waste Processing to recover recyclables and
organics is expected to add approximately 20 percentage points to the 3Rs waste diversion
rate.
While staff is satisfied based on our analysis and visits to existing facilities, as it is time to
introduce Mixed Waste Processing to Ontario, we want to be clear that it will not be perfect,
easy or without risk. Across North America (and within Canada) there are many examples of
Mixed Waste Processing facilities that did not meet expectations. This is especially true of
the low carbon fuel component but also true of the organics fraction. Removing grit and
contamination from the organics fraction will not be easy but there are examples in Europe
where this is done successfully, so staff believes it can be done. Producing low carbon fuel
that consistently meets market specifications is even more difficult, with very few examples
of this being done successfully. Experience from existing facilities suggests the
commissioning phase could extend over several years, at least for the fuel component. As
such, patience and perseverance will be required. Some specific risks that should be
resolved prior to procuring Mixed Waste Processing capacity are listed below.
Mixed Waste Processing may not be able to successfully divert organics if the province
applies new product quality requirements that preclude the use of material derived from
mixed waste. The quality requirements applicable to the organic output of Mixed Waste
Processing must be confirmed.
The organic output of Mixed Waste Processing may not consistently meet product
quality requirements, particularly for heavy metals, so long as items of household
hazardous waste are present in the garbage. Programs or policies to eliminate
household hazardous waste from the garbage should therefore be maintained and
enhanced.
Mixed Waste Processing may not be able to produce a marketable Low -Carbon Fuel
product if the coal -burning industries are unable or unwilling to adjust their fuel quality
requirements, particularly with respect to chlorine concentration.
9. Proposed and Approved Actions
Based on the research conducted over the past two years, and the feedback received from
the public, staff developed and is recommending a number of actions to increase Peel's 3Rs
waste diversion rate. The actions have been grouped under the headings programs, policies
and processing capacity.
If all programs, policies and processing capacity recommended in the Roadmap are
implemented, Peel's diversion rate is expected to increase from 50 percent in 2016 to over
75 percent in 2034 as follows:
• approved and proposed programs will increase diversion by 2 percent
• approved and proposed policies will increase diversion by 4 percent
• the addition of diapers and pet waste to the Green Bin program when the Anaerobic
Digestion facility becomes operational will increase diversion by 5 percent
• Mixed Waste Processing will increase diversion by up to 20 percent
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4.1-12
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
It must be noted that patterns of waste generation are largely beyond Peel's control and the
forecast for diversion is expected to have some variability year to year. For example, yard
waste tonnages fluctuate due to weather, etc. While year to year variability in diversion is
expected, it is forecasted that the actions in the Roadmap will ultimately lead to the
achievement of Peel's waste diversion target.
The balance of this section outlines the recommended actions, some of which have already
been approved by Council.
Programs
Action 1: Promote waste reduction activities and benefits
The Region will:
Continue to promote waste reduction through school workshops and public
outreach (as approved by Regional Council: Resolution 2014-627) Promote
community repair workshops and support organizations running these workshops
Support community initiatives that reduce waste including those related to the
sharing economy
Continue to work with the provincial government as they implement the Strategy
for a Waste Free Ontario including its direction to promote public education and
awareness with respect to waste reduction (as approved by Regional Council:
Resolution 2017-630)
Action 2: Promote food waste reduction activities and benefits
The Region will:
Continue to promote food waste reduction in schools and to our residents (as
approved by Regional Council: Resolution 2014-627)
Continue to participate in food waste reduction related industry organizations
(Ontario Food Waste Collaborative, PACNext) (as approved by Regional Council:
Resolution 2014-627)
Continue to work with the provincial government on their Food and Organic
Waste Action Plan, which includes efforts to reduce food waste (as approved by
Regional Council: Resolution 2017-630)
Action 3: Promote existing reuse organizations, opportunities and benefits
The Region will:
• Continue to promote reuse and accept reusable goods at all Community
Recycling Centres (as approved by Regional Council: Resolution 2014-627)
• Consider expanding the type of reusable goods accepted at the Community
Recycling Centres, through the Community Recycling Centre service analysis
recommended in Action 7
• Develop and promote a listing of third -party reuse organizations in Peel
• Promote existing online tools that facilitate goods swapping and reusable
purchases
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4.1-13
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
• Promote the benefits of reuse activities through education (as approved by
Regional Council: Resolution 2014-627)
Action 4: Increase resource recovery in Peel's Agencies, Boards, Commissions
and Departments (ABCDs)
The Region will:
Continue to support local municipalities with their waste reduction and resource
recovery efforts (as approved by Regional Council: Resolution 2014-627)
Phase in an organics recovery program for Peel's long term care centres and
Peel's main administration buildings
Support the Region's other waste reduction and resource recovery activities
under its Corporate Social Responsibility Strategy
Action 5: Expand existing resource recovery programs
The Region will:
• Continue the process of converting townhomes from a bag -based collection
system to a cart -based collection system
• Expand Peel's Green Bin program to include diapers, sanitary products, and pet
waste and allow the use of non-compostable plastic liners once Peel's Anaerobic
Digestion Facility becomes operational (as approved by Regional Council:
Resolution 2015-741)
• Report the results of the multi -residential organics pilot to Regional Council and
the Multi -Residential Working Group to help the Region and multi -residential
building owners understand the feasibility of Green Bin organics collection in
multi -residential buildings
• Reassess the expansion of the Green Bin organics program to multi -residential
buildings once the province's Food and Organic Waste Framework has been
finalized
Action 6: Implement new curbside and multi -residential resource recovery
programs
The Region will:
Pilot test various approaches to third party textile recovery (e.g. semi-annual
curbside collection events, additional community drop off boxes, promotion of
existing call -in service, etc.) and support the implementation of a Region -wide
program based on the results of the pilots
Pilot test mobile collection of household hazardous waste at multi -residential
buildings as approved by Regional Council through the 2017 operating budget
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4.1-14
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
Action 7: Optimize Peel's Community Recycling Centre services to increase
resource recovery
The Region will:
• Perform a Community Recycling Centre service analysis and report back to
Council with recommendations
Action 8: Improve resource recovery in Business Improvement Areas
The Region will:
• Improve the resource recovery performance in Business Improvement Areas
through education, outreach, and enforcement
• Conduct an organics pilot program to recover organic material from the Business
Improvement Areas to help the Region and Business Improvement Area
businesses understand the feasibility of organics collection in Business
Improvement Areas
Policies
Action 9: Advocate for extended producer responsibility
The Region will:
• Participate in the discussion on existing provincial 3Rs waste diversion programs
(i.e. Blue Box, used tires, waste electronic and electrical equipment and
household hazardous waste) as they are transitioned to full producer
responsibility under the Resource Recovery and Circular Economy Act, 2016 (as
approved by Regional Council: Resolution 2017-630)
• Support the development of new provincial extended producer responsibility
programs (e.g. carpets, mattresses, furniture, compact fluorescent lightbulbs,
etc.) and participate in resulting programs as appropriate (as approved by
Regional Council: Resolution 2017-630)
Action 10: Update our approach to communications, education and outreach to
improve the performance of existing curbside and multi -residential resource
recovery programs
The Region will:
• Conduct research on approaches to change residents' behaviour so they are
better motivated to properly participate in Peel's resource recovery programs
• Develop a comprehensive Communications Strategy based on the above
research
• Implement actions to increase participation and decrease contamination in Peel's
Blue Box and Green Bin programs through promotion and education approaches
that will be identified in the Communications Strategy
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4.1-15
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
• Review the educational activities conducted by Peel and its community partners,
EcoSource and EcoCaledon to ensure they are aligned with the Roadmap and
the above Communications Strategy
Action 11: Update our approach to enforcement to improve the performance of
existing curbside and multi -residential resource recovery programs
The experience of other jurisdictions shows that the use of enforcement, in combination
with education, results in higher participation and resource recovery rates than the use
of education alone.
The Region will:
• Implement an enforcement pilot program to reduce contamination in the curbside
recycling program by checking carts and leaving contaminated carts behind
without being collected
• Develop a comprehensive Enforcement Plan based on the findings of the pilot
and additional research and report back to Council with recommendations
• Implement actions to increase participation and decrease contamination in Peel's
Blue Box and Green Bin programs through education and enforcement
approaches that will be identified in the Enforcement Plan
Action 12: Consider the adoption of a volume based user fee for garbage to
improve the performance of existing curbside and multi -residential resource
recovery programs
Experience in other jurisdictions shows that a volume based user fee for garbage can
decrease the amount of residential waste disposed of as garbage and increase the
amount of Blue Box recyclables and Green Bin organics collected.
The Region will:
• Further investigate the experience of jurisdictions that utilize a volume based
user fee for garbage
• Consider various models for a volume based user fee for garbage in the
Financial Plan
Action 13: Update Peel's Waste Collection By -Law and Design Standards
The Region will:
• Investigate how to best collect material from denser housing developments
• Update the Waste Collection By -Law based on the results of the investigation
and to align with the Waste -Free Ontario Act, the Strategy for a Waste -Free
Ontario and the Food and Organic Waste Framework
• Concurrent with the Waste Collection By -Law update, update the Waste
Collection Design Standards Manual to account for denser housing
developments and Peel's cart -based collection program based on the results of
the investigation and to align with the Waste -Free Ontario Act, the Strategy for a
Waste -Free Ontario and the Food and Organic Waste Framework
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ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
• Collaborate with the local municipalities to ensure that the requirements of the
design standards are more effectively incorporated into the development
application and approval process
Action 14: Review and assess Peel's programs, policies and services for
improvement on a continuous basis
The Region will:
• Review operational processes, practices, and service delivery methods on a
regular basis to identify opportunities for improved efficiency, effectiveness and
customer service
• Collaborate with other municipalities and industry groups to maximize the
impacts of our activities and share experiences, expertise and resources
• Review the Roadmap every four years and update it every eight years
Processing Capacity
Action 15: Construct an Anaerobic Digestion Facility to process Peel's Green Bin
organic material
The Region will:
• Continue the development of the Council -approved Anaerobic Digestion Facility to
meet Peel's long-term Green Bin organic processing needs
Action 16: Develop Mixed Waste Processing capacity to recover additional
resources, including renewable and low carbon energy, from Peel's garbage
The Region will:
• Monitor policy, program and other developments affecting Mixed Waste
Processing and its output products including, among other things, the provincial
Food and Organic Waste Framework which is currently under development
• Create opportunities for tests and trials to increase the knowledge of and
familiarity with the organic and low carbon fuel outputs of Mixed Waste
Processing to aid the industry to solve technical challenges, and to support the
development of markets
• Develop Mixed Waste Processing capacity to process the Region of Peel's
garbage stream, subject to confirmation of provincial policy direction, product
quality requirements and markets, and further refinement of diversion and cost
estimates
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ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
Action 17: Update Peel's Infrastructure Plan to include Mixed Waste Processing
capacity, future uses of Peel's existing waste facilities and other new waste
management infrastructure
The Region will:
• Report back with recommendations for the future use of the Peel Integrated
Waste Management Facility once the engagements with Infrastructure Ontario
and the Greater Toronto Airport Authority are completed
• Prepare a development plan for Mixed Waste Processing capacity
• Prepare a development plan for other new or changing waste management
infrastructure
• Report back with an updated infrastructure Plan that includes a recommended
implementation approach
10. Monitoring, Reporting and Updating
To monitor the progress made under the Roadmap and to inform future business decisions,
staff will identify, measure, and regularly report on several key performance indicators. The
Region already undertakes a regular review of its waste management systems and
consistently collects data on all programs. As programs and services evolve, so too must
the key performance indicators used to monitor their performance. As more and more
extended producer requirement programs are implemented, Peel will have less control over
the design and performance of resource recovery programs and less access to resource
recovery data. As such, an overall diversion rate will become less meaningful over time and
will therefore be phased out and replaced with capture rates for individual resource recovery
programs. This is consistent with how the province measures performance under the Waste -
Free Ontario Act and Strategy. That said, it is vital that the chosen performance indicators
measure our performance in the following areas:
Waste generation
Resource recovery
Customer service
The following key performance indicators (measured and reported separately for curbside
and multi -residential programs) will be reported on a yearly basis. Where data is available,
these measures will be compared to other municipalities. These high level key performance
indicators will be drilled down throughout the Division as required to track and manage
individual programs and contracts. As with other aspects of this Roadmap, key performance
indicators will be reviewed and updated from time to time to ensure they remain meaningful
and useful.
Performance Indicators for Waste Generation
Total waste (all streams) generated per household
Food and organic waste generated per household
Performance will also be tracked on a per capita basis
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ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
Performance Indicators for Resource Recove
• Participation Rate by program (i.e. percentage of households participating in the
Blue Box program, Green Bin program etc.)
• Capture Rate by program (i.e. percentage of available materials put in the Blue Box,
Green Bin, etc. by residents)
• Contamination Rate by program (i.e. percentage of non -solicited materials in the
Blue Box, Green Bin, etc.)
• Tonnage of reusable and recyclable goods recovered at Community Recycling
Centres
• Garbage disposed of per household
• Food and organic waste disposed of per household
Performance Indicators for Customer Service
• Percentage of Curbside and Multi -residential respondents rating collection service
at satisfactory or better
• Percentage of Community Recycling Centre respondents rating Community
Recycling Centre service at satisfactory or better
Other performance indicators that the Region tracks and will continue to track include financial
and environmental measures.
• Financial
o Net operating cost per household
o Net operating cost per tonne
• Environmental
o Tonnes of greenhouse gas emitted as a result of residential waste operations
RISK CONSIDERATIONS
The key risks associated with the Roadmap and ways that these risks will be managed are
outlined below.
Programs and Policies
Risks to the implementation and success of the program and policy actions described in the
Roadmap include the following:
• The impact of the recommended programs and policies on Peel's diversion rate are
based on tonnage and composition projections which are derived from historical
tonnages, recent waste composition audits and anticipated industry trends. The
projected diversion increases may not be realized if future trends in products and
packaging are significantly different from what is projected. Staff will track tonnages and
conduct ongoing seasonal waste audits to monitor changes in waste composition and
will revise projections if appropriate.
• The recommended programs and policies in the Roadmap are aligned with the current
provincial and federal legislation and direction. If provincial and/or federal direction is
significantly different than what is currently anticipated, the programs, policies and
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processing capacity recommended in the Roadmap may need to be adjusted. Staff will
continue to track provincial and federal policy, including the proposed Food and Organic
Waste Framework which was posted on November 16, 2017.
The success of the recommended resource recovery programs assumes (and requires)
stable end markets. If stable end markets are not developed, the affected programs and
associated processing capacity may have to be modified, deferred, or in some cases
cancelled. Staff will continue to work with the province and industry representatives to
develop stable end markets and will continue to monitor end market conditions.
Over time as more materials are designated for extended producer responsibility
programs a greater percentage of Peel's residential waste will be managed under
programs designed and controlled by Producers. If those programs don't perform as
expected, projected diversion rates may change. Staff will remain engaged in the
provincial process to designate materials for producer responsibility and will do our best
to hold producers accountable.
Anaerobic Digestion Facility
The risks associated with the Anaerobic Digestion Facility project are set out in the report of the
Commissioner of Public Works, titled "Strategic Terms for the Anaerobic Digestion Facility
Project" listed on the November 30, 2017 Waste Management Strategic Advisory Committee
agenda.
Mixed Waste Process
While staff is satisfied based on our analysis and visits to existing facilities, as it is time to
introduce Mixed Waste Processing to Ontario, it is worth reiterating that it will not be perfect,
easy or without risk. Across North America (and within Canada) there are many examples of
Mixed Waste Processing facilities that did not meet expectations. This is especially true of the
low carbon fuel component but also true of the organics fraction. Removing grit and
contamination from the organics fraction will not be easy but there are examples in Europe
where this is done successfully so staff believes that it can be done. Producing low carbon fuel
that consistently meets market specifications is even more difficult, with very few examples of
this being done successfully. Experience from existing facilities suggests the commissioning
phase could extend over several years, at least for the fuel component. As such, patience and
perseverance will be required. Some specific risks that should be resolved prior to procuring
Mixed Waste Processing capacity are listed below.
Mixed Waste Processing may or may not satisfy the requirements of the proposed Food
and Organic Waste Framework, in particular, if the Framework includes product quality
requirements that preclude products derived from mixed waste. The acceptability of
organic outputs from Mixed Waste Processing within the Framework must be confirmed
once the Framework is finalized by the province. Staff will continue to monitor the
development of the Framework.
The organic output of Mixed Waste Processing may not consistently meet product
quality requirements, particularly for mercury, so long as household hazardous wastes
such as batteries and compact fluorescent lightbulbs are present in the garbage. Staff
will monitor the quality of the organic output from Mixed Waste Processing and, if
appropriate, will enhance education and enforcement to eliminate household hazardous
wastes from the garbage.
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ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
Mixed Waste Processing may not be able to produce a marketable Low -Carbon Fuel
product if the coal -burning industries are unable or unwilling to adjust their fuel quality
requirements, particularly for chlorine content. Staff will continue to work with coal -
burning industries to develop the market for Low -Carbon Fuel produced by Mixed Waste
Processing.
The 3Rs recovery rate from Mixed Waste Processing will diminish if, in the future, the
garbage contains less recoverable material than is currently projected. Staff will continue
to conduct seasonal waste audits to monitor changes in waste composition and will
revise projections if appropriate.
STAFFING IMPACTS
The programs, policies and processing capacity recommended in this Roadmap will require
additional staff resources and/or contracted services. The exact impact will not be known until
implementation plans are developed as the sequencing, timing and approach to implementing
the 17 actions will affect the staffing needs. Specific staffing requirements will therefore be
spelled out in the implementation plans.
There are currently 14 contract employees within the division that were hired for the bi-weekly
rollout in 2016 and are performing ongoing work associated with the bi-weekly program and the
multi -residential organics pilot. The long-term requirement for these contract staff will become
clearer in 2018 once the province's Organics Action Plan and Blue Box Transition Plan are
better understood and as implementation plans are developed. Staff will bring a report before
the 2019 budget process recommending which, if any, of the 14 contract employees should be
converted to full time employees.
FINANCIAL IMPLICATIONS
Table 3 provides an order of magnitude estimate of the capital requirements and the operational
impacts of implementing the Roadmap. The programs, policies, and processing capacity will be
implemented in future years but the costs are expressed in 2017 dollars. It should also be noted
that the table does not include the increase in costs due to inflation or population growth.
The operational impacts will be partially offset by savings from the Blue Box transition and the
termination of Reserve Contribution as shown in the table below. The transition of the Blue Box
program to producers could result in the elimination of approximately $10 million of Blue Box
program costs to the Region. Since the termination of the Energy -from -Waste contract in 2012,
Peel has been contributing approximately $10 million annually to a reserve for future waste
management infrastructure. This contribution will cease with the implementation of Mixed Waste
Processing. The total savings from the transition of the Blue Box program to producers and the
end of reserve contributions is expected to be in the order of $20 million.
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ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
Table 3: Summary of Operational and Capital Costs of the Roadmaq
Cost (2017$)/year
Estimated Annual Operating Impact of the Roadmap
• Cost of collecting and processing additional material due to new
programs and new policies, net of disposal savings
$3,000,000
• Cost of operating Anaerobic Digestion Facility, net of disposal
savings
$5,000,000
• Cost of operating Mixed Waste Processing, net of disposal savings
$22,000,000
Annual Net Operating Impact of the Roadmap
$30,000,000
Capital Costs Associated with the Roadmap
• Research and Studies (Included in the 2018 Budget)
o Communications Strategy and Community Recycling
Centre Service Analysis
$1,000,000
• Anaerobic Digestion facility construction costs (to be included in
the 2019 capital budget)
$109,000,000
• Mixed Waste Processing preliminary engineering studies (included
in the 2018 capital budget)
$5,000,000
• Mixed Waste Processing construction costs (to be included in a
future capital budget)
$250,000,000
Total Capital Costs
$365,000,000
A total of $70 million exists in approved capital project 15-6943. Staff recommends that capital
project 15-6943 be used for studies, investigations and pilots to support 3Rs diversion, Mixed
Waste Processing and the Infrastructure Plan. Additional costs will be identified through the
implementation plans.
Experience in other jurisdictions shows that a volume based user fee for garbage can decrease
the amount of residential waste disposed of as garbage and increase the amount of Blue Box
recyclables and Green Bin organics collected. It will therefore be considered as a policy tool to
increase diversion in Peel.
Subject to Council approval of the Roadmap, staff will report back with a Financing Plan that
includes consideration of potential Development Charges and a possible volume based user fee
for garbage.
CONCLUSION
Regional Council set a target of 75 percent 3Rs diversion by 2034.
The appended Roadmap recommends new programs, policies, and processing capacity to
achieve Council's target.
Once the Roadmap has been approved by Council, staff will develop the following plans, which
will confirm resources required and implementation timelines for the programs, policies, and
processing capacity:
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ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
• Communications Strategy
• Enforcement Plan
• Infrastructure Plan
• Community Recycling Centre Service Strategy
• Financing Plan
• Other program and policy implementation plans as required
)6d&�
Janette Smith, Commissioner of Public Works
Approved for Submission:
D. Szwarc, Chief Administrative Officer
APPENDICES
Appendix I - Detailed Background of Meetings and Resolutions from the Development of the
Roadmap
Appendix II - Public Consultation Results
Appendix III - Mixed Waste Processing Feasibility Study
For further information regarding this report, please contact Norm Lee, Director Waste
Management, extension 4703, norm an. lee@peelregion. ca.
Reviewed in the workflow by:
Financial Support Unit
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APPENDIX I
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
DETAILED BACKGROUND OF MEETINGS AND RESOLUTIONS FROM THE
DEVELOPMENT OF THE ROADMAP
Waste Management Strategic Advisory Committee directed staff to report back with a
recommended approach to develop the plan (Council Resolution 2015-781).
At the November 19, 2015 Waste Management Strategic Advisory Committee meeting, the
Director of Waste Management presented staff's recommended approach to developing the
plan to achieve the 75 percent 3Rs diversion target and to manage the remaining 25 percent
of Peel's waste (Council Resolution 2015-942).
At the June 16, 2016 Waste Management Strategic Advisory Committee meeting, staff
provided a report and the Director of Waste Management presented additional details on
staff's approach to developing the plan to achieve Peel's target.
The development of the plan follows the steps below:
1. Compilation of an inventory of potential new 3Rs programs and policies from North
American municipalities with high diversion targets and high diversion rates
2. Screening the inventory using key criteria to identify short list of potential 3Rs
programs and policies to be assessed in more detail
3. Detailed assessment of short list to develop a list of recommended 3Rs programs
and policies that could be adapted and implemented in Peel
4. Presentation of recommended 3Rs programs and policies to Waste Management
Strategic Advisory Committee and Regional Council for endorsement prior to public
consultation
5. Public consultation on recommended 3Rs programs and policies
6. Presentation of public feedback on recommended 3Rs programs and policies to
Waste Management Strategic Advisory Committee and Regional Council (i.e. this
report)
7. Concurrent with the 3Rs programs and policies review, a preliminary review of mixed
waste processing facilities (North American and European) to determine current
state of mixed waste processing technology and the feasibility of a Mixed Waste
Processing approach to supplement resource recovery in Peel Region
8. Presentation of Peel's long term waste management strategy to Regional Council for
approval, including contribution of 3Rs programs and policies and processing
capacity to achieving Peel's 75 percent 3Rs diversion target by 2034 (i.e. this report)
9. Development of implementation plans for approved 3Rs programs and policies and
an updated Infrastructure Plan including Mixed Waste Processing, if approved.
At its July 7, 2016 meeting, Regional Council endorsed staff's recommended approach to
develop the plan, along with the implementation of a year -long multi -residential organics
program and a mixed waste processing trial (Council Resolution 2016-645).
At its November 17, 2016 meeting, the Committee received a report entitled, "Update on the
Development of Peel's Plan to Achieve 75 Percent Diversion". The report presented the
Committee with an inventory of 83 3Rs programs and policies from North American
municipalities meeting the criteria presented in the June 16, 2016 report. The inventory
included programs to reduce waste generation (e.g. repair, reuse, food waste reduction,
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ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
etc.), programs to collect new materials (e.g. textiles, mattresses, etc.) and policies to
encourage participation in programs (e.g. school -related initiatives, pledges, challenges,
levies, fines, user pay systems, etc.).
The November 17, 2016 report also explained that staff used the following criteria to
evaluate the 83 programs and policies, resulting in 39 programs and policies being selected
for further research and analysis:
• Collects material not currently included in any of Peel's current programs
• Is within Peel's power to implement (i.e. pertains to residential waste, not Industrial,
Commercial and Institutional waste, does not require provincial or federal
government involvement to implement)
Is well established (i.e. has at least three years of operational history and is currently
in operation)
• Is aligned with the Waste Free Ontario Act and Strategy for a Waste Free Ontario:
Building the Circular Economy
The report was received by Regional Council on December 8, 2016 (Council Resolution
2016-987).
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APPENDIX II
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
PUBLIC CONSULTATION RESULTS
The Region of Peel undertook a comprehensive public consultation program as a part of the
Program and Policy Environmental Scan to Support Waste Management Diversion Targets.
The purpose of the consultation sessions was to:
• understand resident opinions regarding the recommended 3Rs programs and policies;
• understand how residents feel 3Rs programs and policies should be implemented; and
• allow residents to identify gaps, issues, barriers, or concerns with the proposed
recommendations.
The public consultation program consisted of the following elements:
• Focus Groups;
• Telephone Survey;
• Online Public Survey; and
• Public Information Centres.
The rationale for the multi -phased consultation program was to gather a comprehensive range
of input from the public, recognizing the strengths of each approach. The focus group
component of the public consultation was conducted as the initial step in the consultation
program to allow for a detailed discussion with residents and conduct some qualitative research
on their opinions. The findings from the focus group discussions were used to help form the
questions that were subsequently used in a telephone survey and online survey. The Public
Information Centres were held at the end to get any additional feedback from the public.
Five focus group sessions were conducted, each focusing separately on residents who live in
single family homes, residents who live in multi -residential buildings with a waste chute as well
as those without a waste chute. Two sessions were conducted in each of Brampton and
Mississauga with an additional session in Caledon. Residents were screened to recruit a
mixture of different demographic backgrounds.
The telephone survey was completed to undertake quantitative research by polling 600
residents in single family homes and multi -residential units across Caledon, Brampton and
Mississauga. The questions from the telephone survey were adapted to an online format to
provide residents across the Region with an easily accessible means of participating in the
survey and providing feedback.
The online survey was open to residents for approximately one month and received over 640
responses during that period.
As a final step in the consultation process, a series of Public Information Centres were held in
Mississauga, Caledon and Brampton. The Public Information Centres were held to provide
residents with an opportunity to view informational boards with information on the study and
have face to face conversations with members of the project team regarding the proposed
recommendations.
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PUBLIC CONSULTATION RESULTS
Summary of Key Findings
The following summarizes key findings from the public consultation process.
Textiles
• There is strong support for a more robust textile recycling program.
o Results from the telephone survey - Eight in ten indicated they would be likely to
use the program if textiles were collected at their home or building on a specific
date, once or twice a year (86 percent), if they could drop off their textiles at
designated drop-off depots in their local community (83 percent), or if they could
call in and schedule a textile pick up at their home (80 percent).
o In the on-line survey - eight in ten (80 percent) indicated they would be likely to
use the program if textiles were collected at their home or building on a specific
date followed by three quarters (74 percent) who would be likely to use the
program if they could drop off their textiles at designated drop-off depots in their
local community, and close to two thirds (68 percent) who say they would be
likely to use the program if they could call in and schedule a textile pick up at
their home.
• The willingness to pay for curbside service is not as well supported as residents have
indicated that they do not want to pay more for services. The textile depot option
received strong support in the telephone and on-line surveys and could be delivered at
minimum cost.
• Address what can be recycled - residents are unaware that they can donate worn
textiles and other clothing (shoes, belts, purses, scarves etc.).
0 The telephone survey indicated that close to three quarters (72 percent) say they
throw the worn-out textiles in the garbage
0 71 percent of on-line respondents say they throw out the worn textiles.
• Keep textile messaging simple — "we take it all"
• Residents indicated a preference to deposit unwanted textiles in designated bins
located at convenient places such as parking lots of supermarkets or malls, rather than
collect curbside due to cost.
Multi -residential Organics
• Residents in multi -residential buildings are looking for an easy way to dispose of
organics everyday such as an organics chute. It is noted however that many residents
indicated a `yuck' factor related to source separating organics which presents a barrier
to participation.
o From the telephone survey, nearly four in ten (37 percent) say they won't do this
because it requires too much effort
o From the focus groups -"Even if there was a bin outside of the building, where all
the garbage is, I would have to carry it from my house down the elevator or
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PUBLIC CONSULTATION RESULTS
whatever, and it's going to smell" and "You'd have to take it out constantly; you
have to go every day after cooking. So that's just too much."
Repair and Reuse
• There is some support for repair & reuse programs
o The telephone survey resulted in two thirds (66 percent) of Peel residents
indicating they would be likely to participate in the repair & reuse program
o About half of respondents in the on-line survey indicated that they would
participate in repair & reuse programs.
Promotion and Education
• Provide more emphasis on promotion and education to increase awareness of waste
diversion opportunities. Use case studies/statistics to generate sense of pride in the
program and "did you know" - also provide good news stories.
• Promotion and education content — The public consultation process revealed interest
in more information on what can and cannot be recycled, how much waste is currently
diverted, the process of recycling, and the tangible benefits from recycling.
o Results from the telephone survey and on-line surveys are similar - Peel
residents agree that they would like to know more information about what can/
cannot be recycled with eight in ten respondents (both surveys) interested in
receiving information about exactly what can go in the garbage, recycling, and
food waste or green bin, and 76 percent of respondents in the telephone survey
and 64 percent of respondents in the on-line survey interested in receiving
information about how participating in Peel's recycling and green bin programs
benefits the environment. About two thirds of respondents in both surveys are
interested in receiving information about how well residents are currently
participating in Peel's recycling and green bin programs.
• There is a need to address the attitude that putting non-recyclables in the recycling bin
is acceptable because it will be sorted anyway. Messaging should be developed to
inform residents of the financial cost to process the non -recyclable materials.
• There is a need to address problematic materials. There appears to be a lot of
confusion about some items (coffee cups, plastics) as reflected in focus group
comments
o From a focus group - "I've heard that the paper egg cartons are recyclable, but
the plastic are not. I've heard there are eight types of plastic, on the bottom of
each container, it looks like a recycling, but in the middle there's a number that
indicates the type of plastic. So I just say the hell with it. Which week is it? Let's
all just put it in, that one seems more empty than this one. Out it goes."
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PUBLIC CONSULTATION RESULTS
• Despite the pervasiveness of on-line news and information, the majority of residents
participating in telephone survey indicated that they would prefer to receive promotion
and education using newsletters and brochures or emails
o The telephone survey resulted in half (51 percent) of Peel residents claiming
they would prefer to receive this information via newsletters and brochures sent
through the mail followed at a great distance by just over one quarter (27
percent) who indicate they prefer receiving E-newsletters sent via email.
o From the on-line survey — "online mentions top the list, with most (56 percent)
respondents mentioning they would prefer to receive this information via the
Region's website, followed by half (49 percent) who say they would prefer to
receive it from E-newsletters sent via email. More than four in ten (44 percent)
would prefer to receive information from newsletters and brochures sent through
the mail".
• Note, despite 30 percent of Peel residents living in multi -residential buildings, only 2
percent of on-line survey respondents indicated that they resided in multi -residential
buildings, suggesting a potential lack of access to on-line resources, low awareness of
the on-line survey, apathy and/or language barriers.
• Promotion and education standards need to be established for multi -residential
buildings to ensure that proper information is provided to residents about how to
recycle/compost and they need to be enforced. The public consultation process
identified large differences in the amount of information on recycling and the extent to
which recycling was encouraged among participants who lived in multi -residential
buildings. On the one hand, some lived in buildings where information on what can and
cannot be recycled is provided on posters in common areas, and printed on the blue
units for recycling. On the other hand, others lived in buildings where information was
non-existent.
• Some attendees at the public information centres mentioned a desire for more
`dynamic' promotion and education as well as a comprehensive marketing strategy.
Curbside Enforcement
• There is general support for enforcement.
o The telephone survey showed that a considerable majority (72 percent) feel that
increased enforcement is a good idea, while only one quarter (26 percent) say it
is a bad idea.
• Residents want to be given many warning and a lot of education, before enforcement.
Leaving carts behind is preferred to fines as per feedback received in focus group
discussions and at the public information centres. Fines were generally not preferred
and seen as a measure of last resort.
o Comments from the focus group — "Well for some people, that's the only way
they will learn. Is a fine. So as a very last resort, but, someone has to knock on
the door and explain to these people..."
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PUBLIC CONSULTATION RESULTS
• Provide offenders with information about the problem and how to correct it.
o Comments from the focus group - "I still think it's a bit extreme to look at fining
people. Because here's the thing, so when they do it today, they slap that lovely
sticker on if you make a mistake. But they don't actually tell you what the mistake
was. They slap a sticker on that you then can't get back off, by the way. But they
don't tell you what you did wrong. So how are you supposed to correct it, if you
don't know what you did wrong?"
• Enforcement for households that do not set out green bins - start with the requirement
of setting out a green bin at least once a month and then transition to bi-weekly.
o Comments from the focus group — "Even when I owned a house I didn't compost.
It's just too much of a headache; in the summer you get flies and bugs"
• Consider medical/senior amnesty applications for residents who can't sort properly.
Multi -residential Enforcement
• Enforcement in multi -residential buildings is generally supported by multi -residential
residents.
o The telephone survey showed that a large majority of Peel residents who live in a
multi -residential building agree that knowing that their building's garbage and/ or
recycling can be left behind (79 percent) or that their building can be fined (78
percent) for improperly sorting would compel them to sort items more carefully.
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APPENDIX III
ROADMAP TO A CIRCULAR ECONOMY IN THE REGION OF PEEL
MIXED WASTE PROCESSING FEASIBILITY STUDY
The Region's 75 percent 3Rs diversion goal will not be achieved by at -source policies and
programs alone. Processing Peel's garbage streams to recover recyclables and organics will be
necessary to add to the 3Rs diversion achieved at -source to achieve the Region's 3Rs diversion
goal, and may be necessary to make Peel's Waste Management Programs compliant with new
provincials policies, especially the expected ban on disposal of organics.
Using separation and processing technologies to process garbage to achieve specific
environmental or economic outcomes is referred to in the waste industry as Mixed Waste
Processing. Modern Mixed Waste Processing facilities are developed to achieve different
objectives, depending on local regulations and economic and social conditions.
In Europe and the United Kingdom, development of modern Mixed Waste Processing facilities
has been driven by the European Union landfill directive which essentially prohibits the landfill
disposal of unprocessed waste. All methods of achieving diversion from landfill are accepted
including mass -burn and other combustion -based forms of Energy from Waste. Many European
Mixed Waste Processing facilities are designed such that a significant, if not the largest, portion
of diversion is achieved through production of Refuse Derived Fuel for Energy from Waste. The
capital investment in Mixed Waste Processing and Energy from Waste facilities is justified by
significant renewable energy revenues and by the avoidance of high landfill tipping fees or
disposal taxes.
In the United States, California is a leader in the development of modern Mixed Waste
Processing facilities. In accordance with local diversion policies, Mixed Waste Processing
facilities in California are designed to process garbage from Industrial, Commercial and
Institutional sources rather than from residential sources. These facilities can effectively recover
marketable recyclables and have, until recently, been allowed to report output material used as
landfill cover as diversion.
The situation for Mixed Waste Processing is very different in Ontario. At present, Ontario has no
policy driver similar to the European Union landfill directive although the Waste Free Ontario Act
may make it necessary to divert organics from landfill. Unlike other jurisdictions, Ontario policy
specifically requires 3Rs diversion which means that Mixed Waste Processing facilities located
here would need to be designed to achieve different performance and output quality
requirements than are facilities located elsewhere.
Further, energy policies in Ontario would not support the production and use of Refuse Derived
Fuel in Energy from Waste facilities as is common elsewhere. In 2016 the province suspended
the Energy from Waste Standard Offer program effectively eliminating any opportunity for new
Energy from Waste facilities to secure electricity power purchase agreements.
Ontario has, however, followed other jurisdictions in creating policies supporting the production
of a more refined Solid Recovered Fuel to displace fossil fuels such as coal. In 2015, the
province created the Alternative Low -Carbon Fuel regulation to help industries that rely on coal,
such as the cement, lime and steel industries, reduce their carbon emissions. Hereinafter this
report will refer to Solid Recovered Fuel meeting the regulatory quality requirements for
Alternative Low -Carbon Fuel in Ontario as `Low -Carbon Fuel'. Many of the coal -burning
industrial facilities in Ontario are subject to the carbon emission limits imposed by the provincial
Cap and Trade regulation. Use of Low -Carbon Fuel can help coal burning industries to reduce
4.1-31
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MIXED WASTE PROCESSING FEASIBILITY STUDY
their carbon emissions and interest in securing supplies of Low -Carbon Fuel is expected to be
high in Ontario as it is elsewhere.
Climate change mitigation strategies are increasing international interest in processes to convert
waste materials into liquid fuels intended primarily for use in the transportation sector. Enerkem
and its Alberta Biofuels Facility in the City of Edmonton is an example of this approach.
Feedstock for the Biofuels Facility is produced from residential and other garbage at the City's
Integrated Processing and Transfer Facility. The Biofuels Facility uses the feedstock to produce
industrial ethanol, the primary use of which is to produce lower carbon emission vehicle fuel
blends. The Biofuels Facility project began in 2008 and in September 2017 Enerkem announced
that commercial production of ethanol had been achieved.
In recent years a number of similar projects have been announced in the United States and
Europe but as of the date of this report none, other than the Alberta Biofuels Facility, has
announced the start of commercial fuel production. Several high profile projects have been
cancelled or delayed citing falling oil prices and lack of supportive government policies as
reasons. Waste to liquid fuels is an approach with potential to produce significant waste
diversion and other environmental benefits but which has not yet achieved the level of
commercial development necessary to be considered for an energy recovery component of a
Mixed Waste Processing approach.
In summary, a Mixed Waste Processing concept for Peel that would conform to current and
anticipated provincial policy and aid the Region to achieve its 3Rs diversion goals would include
the following:
• Recovery of recyclable material of a quality acceptable to established markets
• Recovery of organics for processing by anaerobic digestion or composting to produce
compost or fertilizer products meeting the quality requirements for use in Ontario, and
• Production of Low -Carbon Fuel meeting the regulatory and end user quality
requirements for use as an Alternative Low -Carbon Fuel in Ontario.
Staff, aided by consultants, has completed a feasibility study of the use of Mixed Waste
Processing for Peel. Key components of the feasibility study were information gathering,
assessing potential 3Rs and total diversion, estimating Greenhouse Gas emission reductions
and other environmental benefits, estimating costs and identifying key risks. The results of the
feasibility study are summarized in the following sections.
Information Gathering
Compatibility with Provincial Policy
It is expected that Mixed Waste Processing for Peel will align with the Waste Free Ontario Act
and Food and Organic Waste Framework.
Existing federal and provincial policies are also relevant, particularly policies governing the
production and use of organic products and the Alternative Low -Carbon Fuel regulation.
Representatives of the Canadian Food Inspection Agency have confirmed that the federal
Fertilizers Act and Regulations apply to Mixed Waste Processing meaning that, subject to
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meeting quality requirements, the organic output of Mixed Waste Processing could be marketed
as a fertilizer product. The province has not yet confirmed whether its existing policies governing
the beneficial uses of organics derived from waste materials, such as the compost quality
standard and the quality requirements under the Nutrient Management Act, apply to Mixed
Waste Processing, or whether policies specific to Mixed Waste Processing will be developed.
The province may, however, clarify this in its Organics Action Framework. Until the province
clarifies which policies are applicable, the ability to beneficially utilize the organic output of
Mixed Waste Processing remains uncertain.
Similar clarification is required from the province regarding the Alternative Low -Carbon Fuel
regulation and whether it applies to the Low -Carbon Fuel that could be produced from Mixed
Waste Processing.
A written request for clarification of the above items was submitted to the Ministry of
Environment and Climate Change in August 2017, but no response has been received as of the
date of this report.
Industry Enaaaement
Staff issued a Request for Expression of Interest in April, 2017 inviting interested companies or
organizations to provide information relevant to the Mixed Waste Processing feasibility study. In
total 23 responses were received which indicates that industry interest in delivering a Mixed
Waste Processing project is high. Responses were received from companies operating in local
and foreign markets and in different industry sectors including technology supply, project
development, and facility operations and managing the recovered products.
Respondents who commented on recyclables recommended that recovery be limited to metal
and plastic explaining that the quantities of fibre which could be recovered as marketable
products are expected to be too low to justify the effort and cost. Respondents who commented
on organics recovery described similar processes for extracting Facility Separated Organics,
which is a small size fraction material rich in organics but also containing significant
contamination. Respondents commented that specialized equipment would be required to clean
the Facility Separated Organics but that once cleaned it would be a suitable feedstock for
anaerobic digestion. Few respondents reported experience with Low -Carbon Fuel production
and suggested that marketing the Low -Carbon Fuel should remain the Region's responsibility.
Respondents who offered comments on commercial terms for a Mixed Waste Processing
project indicated a preference for a design -build -operate -maintain contract structure with a
minimum 10-year operating term and supported by a minimum supply guarantee from the
Region. Some respondents indicated that reasonable recovery rates or other performance
requirements could be guaranteed. Foreign -based respondents reported interest in developing
a project in Ontario and would create a consortium with local firms to build and operate the
facility.
Facility Visits
Staff visited Mixed Waste Processing facilities in Edmonton, California, and Europe. Members of
the Waste Management Strategic Advisory Committee joined staff on the European site visits.
The Waste Management Strategic Advisory Committee received a presentation summarizing
3
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Mixed Waste Processing facility visits on June 29, 2017. The key learnings from the Mixed
Waste Processing facility visits were as follows:
• With advanced technology, recovery rates of 80 percent or higher can be achieved for
specific recyclables. However, the recovery of recyclables is limited by quality. Source
separation provides better quality recyclables and organics. Mixed Waste Processing
serves to complement source separation programs.
• Technologies can remove most contaminants, and compost or anaerobic digestion
products typically meet the quality requirements for the intended end uses. The digestion
of Facility Separated Organics produces biogas at a rate comparable to that of source
separated organics. However, European compost quality standards and markets tolerate
more contamination than is allowed or accepted in Ontario. The ability of Mixed Waste
Processing to produce marketable organic products still needs to be proven in Ontario.
• The European regulatory framework for waste diversion does not translate to Canada or
Ontario. Europe acknowledges thermal conversion of Refuse Derived Fuel and the use
of recovered organics for landfill cover as diversion.
• Large Mixed Waste Processing facilities can operate successfully in dense urban areas
if they are equipped with technologies to control noise and odour. These technologies
are proven and are currently in use at waste facilities in Ontario.
Waste Characterization Audits
Seasonal waste characterization audits of Peel's curbside and multi -residential garbage streams
were conducted from July 2016 to May 2017.
The purpose of the waste characterization audits was to provide an assessment of the quantity
of materials available for recovery by Mixed Waste Processing, and also to produce samples of
materials for laboratory analysis which would reveal the expected quality of Mixed Waste
Processing output materials.
Staff engaged a waste audit contractor to collect and sort samples of the garbage streams by
size (large vs small) and by material type. Staff also engaged a team from the University of
Waterloo who advised on the sorting procedures.
The audit results suggest that up to 10 percent of the garbage is recyclable materials potentially
recoverable by Mixed Waste Processing, and 40 percent is potentially recoverable as Facility
Separated Organics. A further 8 percent is materials that could potentially be directed to Low -
Carbon Fuel production. In considering these percentages it must be remembered that they are
based on sorting a small number of samples by hand and using simple tools and are therefore
only approximations of the results that could be achieved by large-scale processing operations.
Processing Trials
In 2016, Peel entered into an agreement with Canada Fibres Ltd. for a mixed waste processing
trial at its material recovery facility on Highway 27 in Vaughan.
The trial began in March and continued until mid -July. A total of 8,000 tonnes of multi -residential
and 4,000 tonnes of curbside garbage were processed.
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Overall, approximately 3,500 tonnes (30 percent) of the garbage processed was diverted; 400
tonnes (3 percent) were recovered as recyclable metals and mixed rigid plastics, which were
supplied to existing markets, and 3,100 tonnes (26 percent) were recovered as Facility
Separated Organics, which was supplied to a private facility and processed by anaerobic
digestion.
Of the remaining 8,600 tonnes (71 percent) of the garbage processed, 1,500 tonnes (13
percent) were materials potentially suitable for production of Low -Carbon Fuel, and 7,000
tonnes (58 percent) was a material stream with no apparent diversion opportunity. All of this
material was landfilled.
As a requirement of the processing trial, the contractor conducted audits of output material
streams and submitted samples of Facility Separated Organics and potential Low -Carbon Fuel
materials to private laboratories for analysis.
The trial was intended to continue until the end of 2018, but was suspended in mid -July at the
request of the contractor because their Facility Separated Organics processing contractor
determined that they could not continue due to the large quantity of broken glass and other grit -
like contamination in the Facility Separated Organics. The Facility Separated Organics
processing contractor has since installed grit removal equipment at its facility and has indicated
its welling to recommence the trial, albeit at a lower processing rate.
The diversion of material was steadily improving up until the time that the trial was suspended.
As well, exposure to the challenges of processing Facility Separated Organics has been
informative for this feasibility study and also for the organic waste processing industry.
Engagement with Potential Low -Carbon Fuel Markets
Cement, lime and steel production are the primary coal -burning industries in Ontario. Staff
consulted with representatives of cement and lime plants located in Ontario to understand their
interest in and requirements for alternative low -carbon fuel. As of the date of this report it has
not been possible to arrange similar consultations with the steel industry. Representatives of the
cement and lime industries expressed great interest in alternative low -carbon fuel but were
focussing their attention on sourcing industrial waste materials as these materials are available
now and have known and consistent quality. Most of the industry representatives reported that
they were actively working to incorporate alternative low -carbon fuel into their supply or, if they
are already using alternative low -carbon fuel, to increase the supply.
While there are examples of these industries burning Low -Carbon Fuel in other jurisdictions,
there are no coal -burning industries in Ontario are currently using Low -Carbon Fuel produced
from residential garbage however there is some interest in doing so primarily because of the
quantity potentially available and the expected reliability of the supply. None of the industry
representatives indicated a willingness to become directly involved in the production of Low -
Carbon Fuel from residential garbage at this time but would consider contracting with a supplier
for a ready -to -use product if or when available. Industry representatives were not prepared to
discuss a price basis for Low -Carbon Fuel.
5
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Output Quality Analysis
Organics Quality
Samples of small -size fraction organics from the waste characterization audit and samples of
Facility Separated Organics from the Mixed Waste Processing trial were submitted to private
laboratories and analyzed for the relevant quality parameters set out in the federal and
provincial policies mentioned above, and which included contamination and heavy metals. The
samples were also analyzed for biomethane potential, which is a measure of the suitability of
the material for anaerobic digestion.
The small -size fraction organics and Facility Separated Organics samples were found to be
heavily contaminated, with 15 percent or more of the material being broken glass and other grit -
like materials. This amount of contamination is significantly greater than that typically found in
green bin organics and will require specialized processing operations to remove the
contamination to protect processing equipment and to meet existing quality requirements.
Analysis of samples from the waste characterization audit and Mixed Waste Processing trial,
and from curbside and multi -residential garbage, yielded similar results. With the contamination
removed, analysis of the samples found that heavy metals were generally below the
concentration limits set out in the federal and provincial policies however concentration "spikes"
were reported in some samples. Concentration "spikes" are not unexpected since the garbage
streams contain items known to be sources of heavy metal contamination, such as batteries and
compact fluorescent lights.
The results of the laboratory analysis suggest that a Mixed Waste Processing approach capable
of effectively removing contamination from Facility Separated Organics is likely to be able to
produce compost or fertilizer products that would meet existing provincial and federal quality
standards, however the risk of heavy metal contamination remains significant. Expanded efforts
to eliminate items of household hazardous waste from the garbage stream, whether through
Extended Producer Responsibility or Regional programs, should be in place before Mixed
Waste Processing is implemented.
Once the contamination has been removed, laboratory results also indicate that the Facility
Separated Organics can be a good feedstock for anaerobic digestion. As indicated by the
biomethane potential test results, anaerobic digestion of clean Facility Separated Organics
would produce approximately 80 percent of the biogas expected from digestion of the same
quantity of green bin organics. Biogas production for conversion to low -carbon, renewable
energy is therefore a viable component of a Mixed Waste Processing approach.
Low -Carbon Fuel Quality
There is no comprehensive Low -Carbon Fuel quality standard applicable in Ontario. The
Ontario Alternative Low -Carbon Fuel Regulation provides quality standards for minimum energy
content and carbon emission intensity (a comparison of the fossil carbon emissions from the
Low -Carbon Fuel relative to coal) but does not include standards for other relevant parameters.
Each coal -burning industrial facility has its own specific alternative low -carbon fuel quality
requirements which reflect its process design and requirements for environmental permitting
and product quality. To assess the quality of the Low -Carbon Fuel material samples it was
FT
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therefore necessary to compile quality parameters from industry sources and from other
jurisdictions, including the European Union's fuel quality standards.
Samples of different types of fibres and plastics obtained from the waste composition audit, and
samples of the Low -Carbon Fuel material output stream from the Mixed Waste Processing trial,
were submitted to the University of Waterloo team and private laboratories for analysis of solid
Low -Carbon Fuel characteristics. Analyses of samples of Low -Carbon Fuel material from the
waste characterization audit, the Mixed Waste Processing trial, and from curbside and multi -
residential garbage yielded comparable results. The energy content and carbon emission
intensity results suggest that a Low -Carbon Fuel from Mixed Waste Processing could satisfy the
requirements of the Alternative Low -Carbon Fuel Regulation. Comparing the results to industry
requirements suggests that with one exception the quality of the Low -Carbon Fuel could be
satisfactory.
The cement industry has the potential to be the largest market for Low -Carbon Fuel from a Peel
Mixed Waste Processing facility but needs to limit amount of chlorine in the Low -Carbon Fuel to
protect the integrity of their process and equipment.
Laboratory analysis revealed that the chlorine concentrations in some potential Low -Carbon
Fuel materials exceeded the concentration limits indicated by the cement industry contacts.
Further investigation suggests that the presence of chlorine containing polymers used for
packaging (e.g. polyvinyl chloride plastic) or as a component of packaging or products (e.g.
polyurethane based adhesives) contribute to the high chlorine concentrations. The chloride
salts in food waste may also be a significant source of chlorine in the potential Low -Carbon Fuel
materials.
Reducing the chlorine concentration of the Low -Carbon Fuel to the cement industry's
acceptability limit by identifying and removing high chlorine -content materials may not be
possible, practical or economically justifiable. Similarly, supplementing the production of Low -
Carbon Fuel with low chlorine materials from other sources may not be a solution to this
challenge.
The cement industry has the ability to modify their process to accommodate higher chlorine -
content materials although the investments required are reported to be significant. Whether the
cement industry is willing to make the necessary investments, and other considerations such as
the value of the Low -Carbon Fuel compared to its cost of production, will determine whether
production of Low -Carbon Fuel is a feasible energy recovery component of a Mixed Waste
Processing concept for Peel.
Processing the Low -Carbon Fuel materials to meet industry's requirements for consistency,
particle size, purity and other requirements could not, for practical reasons, be investigated as
part of the feasibility study. Purity may be a particular challenge as some industry
representatives reported very low tolerances for metal, glass or other non -Low -Carbon Fuel
materials in the Low -Carbon Fuel product.
7
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3Rs and Total Diversion
Garbage Tonnage and Composition Projections
Waste Management maintains long-term projections of the future tonnage and composition of
the major waste streams, recycling, organics, yard waste and garbage, which are used for a
variety of planning purposes. When planning supports recommendations regarding investments
in large-scale infrastructure, a long-term planning horizon is used. For the Mixed Waste
Processing feasibility study, a 20-year planning covering the period 2025 to 2045 was used.
The projected future tonnages of curbside and multi -residential garbage over the planning
horizon revealed that 250,000 tonnes per year would be the correct scale at which to consider
the feasibility of a Mixed Waste Processing approach for Peel.
Uncertainty in future projections is unavoidable since factors affecting patterns of waste
generation cannot be predicted accurately. Particularly relevant for the Mixed Waste Processing
feasibility study is the uncertainty inherent in the projections of future garbage composition since
it is the proportion of potentially recoverable materials present in the garbage streams that
ultimately limits the 3Rs and total diversion potential of a Mixed Waste Processing approach. All
current trends suggest that the proportion of potentially recoverable materials in the garbage
streams is likely to decrease over time which, depending on the magnitude of the decrease,
could reduce the diversion performance of a Mixed Waste Processing approach.
Mixed Waste Processing Scenarios
Mixed Waste Processing facilities can be designed to satisfy different objectives or achieve
different outcomes. For the feasibility study the following two Mixed Waste Processing scenarios
were considered:
A maximum 3Rs diversion scenario which recovers metals and recyclable rigid plastic
containers for recycling and Facility Separated Organics for anaerobic digestion, and
which processes all recovered fibre by anaerobic digestion with the Facility Separated
Organics, and
A maximum total diversion scenario which recovers metals and recyclable rigid plastic
containers for recycling and Facility Separated Organics for anaerobic digestion, and
which recovers all of the fibre and some of the remaining plastics as a Low -Carbon Fuel.
The diversion that could be achieved by each of the two Mixed Waste Processing scenarios
was estimated using the projections of future garbage tonnage and composition and is
summarized in the Table below.
Table: Estimated Percentaqe of Garbage Diverted by Mixed Waste Processinq Scenario
Diversion Action
Maximum 3Rs Diversion Scenario
Maximum Total Diversion
Scenario
Recyclables Recovery
10
10
Organics Recovery
35
30
Total 3Rs Diversion
45
40
Low -Carbon Fuel
Production
-
10
Total Diversion
45
50
Rl
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MIXED WASTE PROCESSING FEASIBILITY STUDY
Both Mixed Waste Processing scenarios assume that 75 to 85 percent of targeted recyclables,
specifically metals and rigid plastics containers, can be recovered. Recovering the targeted
recyclables would enable Mixed Waste Processing to divert up to 10 percent of the processed
garbage as marketable recyclable materials and would add approximately 5 percent to the
Region's 3Rs diversion rate. For other recyclable materials present in the garbage streams,
such as fibres, the quantities which could be recovered as marketable products are expected to
be too low to justify the effort and cost.
For the maximum 3Rs diversion scenario, it is estimated that up to 35 percent of the processed
garbage could be diverted through organics recovery. This estimate is based on recovery of
approximately 60 percent of the organics, diapers, sanitary products and pet waste, and 80
percent of the fibre, present in the garbage, and also includes diversion achieved through
moisture loss. Diverting up to 35 percent of the processed garbage through organics recovery
would add approximately 17 percent to the Region's 3Rs diversion rate. In total, the maximum
3Rs diversion scenario would add approximately 20 percent to the Region's 3Rs diversion rate
(note: the addition to the Region's diversion rate from recovery of recyclables and organics is
approximately 5 percent and 17 percent respectively for a total of 22 percent which has been
rounded down to 20 percent for simplicity of reporting).
In the maximum total diversion scenario fibre is directed to Low -Carbon Fuel production and
therefore this scenario would contribute slightly less to the Region's 3Rs diversion rate, up to 15
percent for a total 3Rs diversion of approximately 20 percent. In this scenario up to 10 percent
of the garbage processed would be diverted to Low -Carbon Fuel production (fibre and some
plastic) which would add approximately 5 percentage points to the Region's total diversion rate.
In total, the maximum total diversion scenario would add approximately 25 percent to the
Region's total diversion rate.
As mentioned above, these estimates of the diversion potential of Mixed Waste Processing are
susceptible to the uncertainty inherent in the projections of future garbage tonnage and
composition. If the actual proportion of recoverable material present in the garbage in future
years is less or more than is currently projected, the 3Rs diversion performance of Mixed Waste
Processing will proportionally better or worse than is currently estimated. If, over time, 3Rs
diversion is reduced, it may be possible to maintain total diversion performance by initiating or
directing more material to Low -Carbon Fuel production.
Greenhouse Gas and Other Environmental Benefits
Anaerobic Digestion of Facility Separated Organics will produce biogas which is a renewable,
low -carbon energy source and can be used to generate heat or electricity, or refined to produce
Renewable Natural Gas. Anaerobic Digestion of the Facility Separated Organics recovered
from Peel's garbage streams is expected to generate enough biogas to produce approximately
5 million cubic metres of Renewable Natural Gas annually, which would contain the same
quantity of energy as just over 5 million litres of gasoline.
Achieving waste diversion through Mixed Waste Processing has the added benefit of reducing
Greenhouse Gas emissions by recycling more materials, by diverting more organics from
landfill, and by producing low -carbon fuels; Renewable Natural Gas and Low -Carbon Fuel. The
contribution of Mixed Waste Processing towards achieving the Region's Greenhouse Gas
reduction targets will be included in an updated Climate Change Master Plan expected in 2018.
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APPENDIX III
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MIXED WASTE PROCESSING FEASIBILITY STUDY
Costs
In order to process all of its garbage, Peel would need to secure 250,000 tonnes per year of
Mixed Waste Processing capacity. Options for securing Mixed Waste Processing capacity are
developing a wholly Region -owned facility, partial ownership of a facility developed in
partnership with other municipalities or private companies, and procuring capacity at a privately -
owned facility.
The capital cost of a 250,000 tonnes per year Mixed Waste Processing facility is estimated to be
$250 million, excluding land. The cost to operate and maintain the facility and manage output
materials, excluding potential revenues from the sale of recyclables, Renewable Natural Gas or
Low -Carbon Fuel, is estimated to be in the range of $190 per tonne. All estimated costs are
expressed in 2017 dollars.
Risks
The Feasibility study revealed how uncertainty with respect to current or future conditions
creates significant risks for the successful implementation of Mixed Waste Processing for Peel.
Below is a summary of the most significant risks, and how they might be avoided, eliminated or
managed.
Regulatory Policy Changes
Mixed Waste Processing may not help the Region to satisfy the requirements of new provincial
policies, in particular the forthcoming Waste Free Ontario Act and Food and Organic Waste
Framework. This risk would be eliminated when the new policies are announced and it is
confirmed that Mixed Waste Processing is allowed.
Product Quality
Mixed Waste Processing may not be able to successfully divert organics if the province applies
new product quality requirements. This risk would be eliminated if the province confirmed that
existing product quality requirements apply to Mixed Waste Processing, or a risk management
approach could be developed if new quality requirements were to be established. The Ministry
of Environment and Climate Change has been asked to confirm the quality requirements
applicable to Mixed Waste Processing.
The organic output of Mixed Waste Processing may not consistently meet product quality
requirements, particularly for heavy metals, so long as items of household hazardous waste are
present in the garbage. This risk could be minimized by expanding or enhancing programs or
policies to eliminate these materials from the garbage.
Mixed Waste Processing may not be able to produce a marketable Low -Carbon Fuel product if
the coal -burning industries are unable or unwilling to adjust their Low -Carbon Fuel quality
requirements, particularly with respect to chlorine concentration. This risk can be avoided by
adopting a maximum 3Rs diversion objective for Mixed Waste Processing as described above.
Low -Carbon Fuel production could be added later if and when compatible quality requirements
are established by the industrial users, or if additional research revealed how Low -Carbon Fuel
quality could be effectively and practically improved.
10
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APPENDIX III
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MIXED WASTE PROCESSING FEASIBILITY STUDY
Technological Capability
Mixed Waste Processing may not be able to successfully divert organics if processing
technologies cannot effectively and reliably remove the quantity and type of contamination
present in the Facility Separated Organics. Since no organics processing facilities in Ontario are
specifically equipped to process Facility Separated Organics, the capability of contaminant
removal technologies could not be confirmed. Engagement with the industry and the
investigation of European Mixed Waste Processing facilities suggests that effective contaminant
removal is possible. This risk would be minimized if additional research identified effective
contaminant removal technologies.
Garbage Projections
Mixed Waste Processing may not be able to achieve or maintain the expected diversion rates in
the future if the garbage contains significantly less recoverable material than is currently
projected. Good quality information gained through an ongoing seasonal waste audit program is
necessary to manage this risk. With good information, plans for effectively dealing with changing
composition, perhaps through process modifications, can be created.
Costs
The actual capital and operating costs of Mixed Waste Processing may differ significantly from
current estimates. The estimated costs reported above are based on minimal information and
contain significant uncertainty. This risk can be minimized by developing Mixed Waste
Processing facility designs which will enable more accurate cost estimation.
Summary
Mixed Waste Processing has the potential to complement the existing at -source policies and
programs and add significantly to the Region's 3Rs diversion and may be the only practical
method of diverting significant proportion of multi -residential organics from disposal. Mixed
Waste Processing is not a viable replacement for existing at -source policies and programs. It is
unlikely that a Mixed Waste Processing approach alone can achieve the Region's 3Rs goal and
it is doubtful that cost savings would result.
Combined with new and enhanced at -source 3Rs policies and programs, a Mixed Waste
Processing approach designed for maximum 3Rs diversion would enable the Region to achieve
its 75 percent 3Rs diversion target.
However, the risks described above should be satisfactorily resolved before a decision to
procure a Region -owned Mixed Waste Processing facility is made. Staff recommends,
therefore, that Mixed Waste Processing for processing Peel's residential garbage be included in
the updated infrastructure plan for waste management with procurement to proceed only subject
to satisfactory resolution of policy, product quality and other key risks.
Actions to be completed by staff to resolve key risks include:
• monitor provincial and federal policy developments with respect to the acceptability of
Mixed Waste Processing and the quality requirements applicable to the organic outputs
of Mixed Waste Processing
11
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APPENDIX III
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MIXED WASTE PROCESSING FEASIBILITY STUDY
• monitor the expansion and effectiveness of programs to eliminate items of household
hazardous waste from the garbage
• continue the engagement with potential Low -Carbon Fuel markets to assess quality
requirements and market potential
• create opportunities for tests and trials to increase the knowledge of and familiarity with
the organic and Low -Carbon Fuel outputs of Mixed Waste Processing to aid the industry
to solve technical challenges, and to support the development of markets
• continue seasonal waste audits including the collection and analysis of material
samples, and
• develop conceptual and pre -engineering designs for Mixed Waste Processing facilities
and cost estimates.
In addition, staff will monitor the development of technologies to convert wastes to liquid fuels
and will reassess the feasibility of including technologies of this type as an energy recovery
component of a Mixed Waste Processing concept for Peel.
The result of the above investigation should inform a broader plan for Mixed Waste Processing
to be included in the waste management Infrastructure Plan.
12
4.1-42
Region
r of Peel
working with you
Roadmap to a Circular
Economy in the RIgion of
Waste Management Strategic Advisory Committee
November 30, 2017
Norman Lee,
Director, Waste Management
Region of Peel
4.1-43
Background
• October 8, 2015 RC Meeting
Regional Council adopted a 3Rs Waste Diversion target of 75% by
2034 (Council Resolution 2015-741)
• October 22, 2015 RC Meeting
— Regional Council directed staff to report back to Waste Management
Strategic Advisory Committee (WMSAC) with an approach to
develop the plan to achieve the 75% target (Council Resolution
2015-781)
• April 13, 2017 RC Meeting
— Regional Council endorsed a staff report setting out recommended
3Rs programs, policies and processing capacity for public
consultation (Council Resolution 2017-288)
4.1-44
Provincial Framework
• Peel operates (and must operate) within the province's regulatory framework:
— The Municipal Act
— The Planning Act
— The Environmental Assessment Act
— The Environmental Protection Act
_A_
— The Waste Free Ontario Act
• Resource Recovery and Circular Economy Act
• Waste Diversion Transition Act
• Strategy for a Waste Free Ontario: Building a Circular Economy
— Proposed Food and Organic Waste Framework
• The Roadmap fits within this framework
4.1-45
The Circular Economy
• The underlying objective of
the Waste -Free Ontario Act
and the Roadmap is to
create a Circular Economy
• A circular economy is a
system that continually
circulates resources to
retain their productive value
in our economy for as long
as possible
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4.1-46
Roadmap Goals and Objectives
• Goals
— A circular economy with zero waste from residential sources in the
Region of Peel; and
— Zero greenhouse gas emissions from residential waste
management.
• Objectives
— Minimize waste generation
— Maximize the recovery of resources
from our waste in a way that fosters
the growth of the circular economy
— Design and deliver waste
management services that meet the
needs of the customer in a cost-
effective manner
4.1-47
Roadmap Planning Horizon
• The Roadmap uses a 2041 planning horizon to align with
provincial growth forecasts and other infrastructure
planning horizons in the Region
• Staff recommends that the Roadmap be reviewed every four
years and updated every eight years
4.1-48
Peel's 2016 3Rs Diversion Rate
Region of Peel
010 Diversion from Landfill - 0%
Organics
76.407
15%
Blue Box
88,025
17%
Yard Waste
49' 68
10%
M HW
1,639
Other.
Diversion
41.521
WEEE
8
1,414
<1%
■ organics in Blue Box ■ Yard Waste ■ MHW ■ WEEE o Other Diversion Landfill
7
4.1-49
Peel Residential Waste Generation Rates
Generation per Household
Curbside
996 kg/yr
Multi -Residential
661 kg/yr
The table above shows residential waste generation only and does
not include Industrial, Commercial and Institutional waste
generation.
The table below shows that Peel has the highest number of
people per household in the Greater Toronto Area.
Municipality
Curbside Persons Per
Household
Multi -Residential
Persons Per
Household
Total Persons Per
Household
Region of Peel
3.39
2.49
3.21
City of Toronto
2.79
2.08
2.45
Halton Region
2.90
2.74
2.84
Durham Region
1 2.86
1 1.93
1 2.83
4.1-50
Blue Box Participation Rate
100
91
50
G1
a
40
30
20
10
0
Blue Box Program Participation Rates
City of Toronto
(2016/2017 data)
Durham Region Halton Region
(2011 data) (2015 data)
Region of Peel
(2016/2017 data)
0
4.1-51
Green Bin Participation Rate
100
90
80
70
60
50
40
30
20
10
0
Green Bin Program Participation Rates
City of Toronto Durham Region Hatton Region Region of Peel
(2016/2017data) (2011 data) (2015 data) (2916f2-017 data)
10
4.1-52
Peel Garbage Composition
Curbside Multi -Residential
22
33%
41% *4100
a•
43%
1%
0 Recycling 0 Cam past ■ E ectrcn'cs HaaardcLls Vw rite ipa'nt, I:atter'es, etc.) Gatage
4.1-53
Programs, Policies, and Processing Capacity
In April 2017, Council endorsed a
suite of new programs, policies n
and processing capacity for
public consultation
The Roadmap includes a number
of recommended actions which
will increase Peel's 3Rs diversion
rate from 50% today to over 75% °
— New programs — 2% 3W
— New policies-4% M
— Anaerobic digestion — 5% 1m
— Mixed waste processing— 20% 06
2034 3Rs Diversion Forecast
.. 7016 ■ Rnrnmw.ndnd Pragfams ■ Rcenmmrndnd Pn[Irles Rnw mhln DIgesrinn Mmnd Wasrc Pr W.P.m1nR
12
4.1-54
Public Consultation Process
• Public feedback was sought and received through:
— Focus groups
— Telephone survey
— Online survey
— Public Information Centres
4.1-55
Public Consultation Findings
• Respondents are generally satisfied with the current waste management
syste m
• Respondents generally support the recommended programs and policies
• Respondents are reluctant to pay for new source separation programs if:
— Programs are going to be provided by producers in the future
— Programs can be provided free of charge by a third party
— Programs can be provided more economically at CRCs
4.1-56
Recommended Actions - Programs
• Promote benefits of waste reduction and reuse
• Promote benefits of food waste reduction
• Implement new resource recovery programs
— (e.g. textiles, carpets, mattresses, furniture, compact fluorescent
lightbulbs, batteries, etc.)
— Consider multi -residential organics once the Framework is finalized
— Add diapers and pet waste to Green Bin organics program once
Anaerobic Digestion facility is operational
• Optimize Peel's Community Recycling Centre services to increase
resource recovery
• Help improve resource recovery in Business Improvement Areas
— (e.g. Pilot Green Bin organics collection)
4.1-57
Recommended Actions — Policies
• Advocate for Extended Producer Responsibility
• Update our approach to communications, education and
outreach
• Update our approach to enforcement
• Consider the adoption of a volume based user fee for
garbage to improve the performance of existing curbside
and multi -residential resource recovery programs
• Update Peel's Waste Collection By -Law and Design
Standards
4.1-58
Actions —Processing Capacity
• Construct an Anaerobic Digestion Facility
• Develop Mixed Waste Processing capacity
• Update Peel's Infrastructure Plan
4.1-59
Key Performance Indicators
• Waste generation
— Total waste generated per household (by stream)
— Food and organic waste generated per household
• Resource recovery
— Participation Rate by program
— Capture Rate by program
— Contamination Rate by program
— Garbage disposed of per household
— Food and organic waste disposed per household
Key Performance Indicators will be reviewed and updated from time to time to ensure
they remain meaningful and useful
* KPIs will be tracked for curbside and multi -residential separately
* KPIs will be tracked per household and per capita
4.1-60
Risk Considerations
• Staff identified risks and ways to manage the risks associated
with the recommended programs, policies, and material
processing
• Key risks include uncertainties with respect to provincial
legislation, development of end markets for new products
and effectiveness of new processing technologies
4.1-61
Financial Implications (2017$)
Annual operating impact of the Roadmap
$30,000,000
Less potential savings from Blue Box Transition
-$1010001000
Less savings from stopping reserve contributions
-$101000,000
Annual net operating impact of the Roadmap
$10,000,000
Capital cost associated with the Roadmap
$365,000,000
Less contributions from reserves
-$50,000,000
Less potential development charges
-$18,000,000
Net capital cost associated with the Roadmap
$297,000,000
4.1-62
Next Steps
• Subject to approval of the Roadmap, staff will develop:
— Communications Strategy
— Enforcement Plan
— Infrastructure Plan
— Community Recycling Centre Service Strategy
— Financing Plan
• The plans will confirm resources required and
implementation timelines for the programs, policies, and
processing capacity
4.1-63
Region
r of Peel
working with you
T'�f k you
Contact info:
Region of Peel
Norman Lee
Director, Waste Management
10 Peel Centre Drive
Brampton, Ontario L6T 4B9
905-791-7800 ext. 4703
norman.lee Ca) peelregion.ca
22
4.2-1
Region
III REPORT
of Peel
Meeting Date: 2017-11-30
working with you Waste Management Strategic Advisory Committee
For Information
DATE: November 21, 2017
REPORT TITLE: UPDATE ON THE TRANSITION OF THE BLUE BOX PROGRAM AND
USED TIRES PROGRAM TO FULL PRODUCER RESPONSIBILITY
FROM: Janette Smith, Commissioner of Public Works
OBJECTIVE
To update Council on the transition of the Blue Box Program and the Used Tires Program to full
producer responsibility.
• The Waste -Free Ontario Act, 2016 was proclaimed in November 2016, and the
accompanying Strategy for a Waste -Free Ontario was adopted in February 2017.
• The Act allows for the transition of the four existing waste diversion programs (Blue
Box Program, the Used Tires Program, the Municipal and Special Hazardous Waste
Program and the Waste Electronics and Electrical Equipment Program) to full
producer responsibility.
• The Used Tires Program was identified in the Strategy as the first program to
transition to full producer responsibility. Transition is underway with the wind-up plan
for the existing Used Tires Program and the new Used Tires Regulation in
development. The existing Used Tires program will cease operations on December
31, 2018, and the new Used Tires Program will be implemented on January 1, 2019.
• The Blue Box Program was identified in the Strategy for transition in 2023.
Municipalities and producers asked for an earlier transition.
• As a result, on August 14, 2017 the Minister of the Environment and Climate Change
directed Stewardship Ontario to develop a proposal for an amended Blue Box
Program Plan to accelerate the transition of the program to full producer responsibility
and serve as a blueprint for a new regulation under the new Act. The proposal is
expected to be submitted to the Minister for approval in February 2018.
• The development of the amended Blue Box Program is occurring at a fast pace. Staff
is actively participating in consultations directly and through Municipal associations, to
ensure Peel's interests are considered.
DISCUSSION
1. Background
In November 2016, the Waste -Free Ontario Act, 2016 was proclaimed. The Waste -Free
Ontario Act, 2016 enacts the Resource Recovery and Circular Economy Act, 2016 and the
Waste Diversion Transition Act, 2016. The Resource Recovery and Circular Economy Act
allows the Minister to introduce regulations to make producers fully responsible for resource
4.2-2
UPDATE ON THE TRANSITION OF THE BLUE BOX PROGRAM AND USED TIRES
PROGRAM TO FULL PRODUCER RESPONSIBILITY
recovery and waste reduction associated with their products and packaging. The Waste
Diversion Transition Act allows for the wind-up of the four existing waste diversion programs:
the Blue Box Program, the Used Tires Program, the Municipal and Special Hazardous
Waste Program and the Waste Electronics and Electrical Equipment Program.
The regulations introduced under the Resource Recovery and Circular Economy Act will
make producers responsible for 100 percent of program costs and operations. Under this
structure, there is no mandated role for municipalities to provide diversion programs for
designated materials. Instead, municipalities will have the opportunity to act as service
providers to producers.
The Resource Recovery and Circular Economy Act also establishes the Resource
Productivity and Recovery Authority (the Authority) to enforce the Act and collect data.
Staff is participating in consultations pertaining to the development of the wind-up plans and
regulations directly and through working groups such as the Municipal Resource Recovery
and Research Collaborative (Collaborative), which consists of representatives from the
Association of Municipalities of Ontario, the Municipal Waste Association, the Regional
Public Works Commissioners of Ontario, and the City of Toronto. The Collaborative
advocates for a smooth and timely transition to extended producer responsibility, and
promotes the interests of all Ontario municipalities. Staff is providing feedback that is
consistent with past positions taken by Council.
Work to transition the Used Tires Program and the Blue Box Program has already begun
and is detailed in the following sections.
2. Used Tires Program
Currently, Peel and other municipalities collect used tires from residents and are paid a
collector fee by Ontario Tire Stewardship.
In February 2017, the Minister sent a letter to Ontario Tire Stewardship identifying the Used
Tires Program as the first program to transition to full producer responsibility under the new
Act and directing Ontario Tire Stewardship to develop and submit a wind-up plan to the
Authority by November 30, 2017. The Authority is expected to approve the plan by March
31, 2018. The Used Tires Program will cease operations on December 31, 2018.
The Minister also requested Ontario Tire Stewardship to consult with stakeholders and
provide opportunities for meaningful engagement in the development of the wind-up plan.
Staff participated in consultations on the development of the wind-up plan and raised the
following concerns:
The lack of opportunity for municipalities to be consulted and adequately review the
wind-up plan
The absence of a complete and actionable wind-up plan
Insufficient details provided on the risks and implications associated with each
proposed option to terminate incentive payments and address processing capacity
issues
-2-
4.2-3
UPDATE ON THE TRANSITION OF THE BLUE BOX PROGRAM AND USED TIRES
PROGRAM TO FULL PRODUCER RESPONSIBILITY
Further consideration is required to address legacy tire stockpiles, and
The financial implications ignore the outstanding collection allowances payable to
municipalities.
It is anticipated that further consultation will occur when the Authority releases the proposed
wind-up plan for stakeholder review prior to approval in March 2018.
Concurrently with the above wind-up efforts, the Ministry of the Environment and Climate
Change is developing a regulation for the new Used Tires Program which will begin on
January 1, 2019. It is expected that the Minister will release the proposed new Used Tires
Regulation for public review and comment in November 2017.
Staff will review and provide comments on the proposed regulation and wind-up plan when
they are released. Due to the timing of the consultation period, Council approval of staff
comments may not be possible prior to submission. In this case, staff comments will be
presented to Council at the earliest opportunity and any additional comments made by
Council will be submitted.
3. Blue Box Program
The Blue Box Program is currently in a shared responsibility program, with municipalities
and producers each paying approximately 50 percent of the net cost of the program.
The Province's Strategy for a Waste -Free Ontario: Building the Circular Economy
anticipated that the Blue Box Program will be fully transitioned by 2023, however an earlier
transition would significantly reduce or eliminate the municipal costs for the program. Peel's
program costs could be reduced by approximately $10-14 million per year, and the
Association of Municipalities of Ontario estimates a cost reduction of $130 million per year
across all Ontario municipalities. Peel and other municipalities explored ways to accelerate
the transition, including through an amendment to the existing program. Council supported
the accelerated transition of the Blue Box Program to full producer responsibility (Resolution
2017-630).
In July 2017, the Municipal Resource Recovery and Research Collaborative (representing
municipalities) and Stewardship Ontario (representing the producers) sent a joint letter to
the Minister of the Environment and Climate Change asking that he amend the Blue Box
Program to allow for early transition to full producer responsibility.
In August 2017, the Minister responded by directing the Authority and Stewardship Ontario
to develop and submit a proposal to amend the existing Blue Box Program by February 15,
2018. The Minister's letter is attached in Appendix I. The Minister outlined his expectations
for the amended plan and identified the key issues to be addressed including but not limited
to:
• Avoid negatively impacting Ontarians' experience with and access to existing
recycling services
• Improve environmental outcomes
• Create a consistent recycling experience for all Ontario residents
• Ensure a fair and open marketplace
-3-
4.2-4
UPDATE ON THE TRANSITION OF THE BLUE BOX PROGRAM AND USED TIRES
PROGRAM TO FULL PRODUCER RESPONSIBILITY
• Address the provincial interests listed in the Resource Recovery and Circular
Economy Act
• Include a clear transition mechanism to transfer the obligation for the collection and
processing of paper products and packaging to Stewardship Ontario upon the expiry
or early termination of municipal contracts with their service providers, or potentially
through a suitable amendment of those contracts with their service providers
• Municipal governments to have the choice to act as collectors on behalf of
Stewardship Ontario, and to have the opportunity to participate in processing
• Consideration be given to accommodating municipally collected paper products and
packaging from non-residential sectors (e.g. public spaces, parks, business
improvement areas)
The Minister asked Stewardship Ontario to engage in meaningful consultation with
municipalities and other stakeholders in the development of the proposal.
In October 2017, Stewardship Ontario began stakeholder consultation sessions with
municipalities, and consultations will continue throughout November. Staff is actively
participating in consultations and raised the following concerns with the materials presented
so far:
• There is insufficient time allotted for municipalities to adequately review, discuss, and
provide meaningful feedback on the draft amended Blue Box Program
• Further details are required to properly evaluate the impact of each proposed
component for Peel, particularly the transition process
• Additional consideration is required to include non-residential sectors such as
business improvement areas, schools, and public spaces currently receiving
municipal Blue Box collection services so as to not affect residents' experience with
and access to Blue Box services
• There is insufficient definition and detail on key performance standards (e.g.
maximum contamination rates), as well as contract terms and conditions, and
• There are no mechanisms for enforcement or for avoiding stranded assets.
The development of the amended Blue Box Program is occurring at a fast pace.
Stewardship Ontario has indicated it will consider feedback received in October and
November and release the draft amended Blue Box Program for stakeholder review on
December 22, 2017. Stakeholder feedback on the draft will be required by January 15,
2018. Providing meaningful feedback in this timeframe will be a challenge but staff is
working collaboratively with other municipalities and municipal associations to provide
feedback and ensure Peel's interests are represented.
Stewardship Ontario has also indicated it will submit the final draft of the amended Blue Box
Program to the Authority in late January 2018 for approval. If municipal comments have not
been adequately addressed by Stewardship Ontario in its final draft, municipalities, including
Peel, can submit comments to the Authority indicating where we believe the plan falls short.
The Authority will review the draft to ensure it is consistent with the Minister's letter and, if it
is, will submit the proposal for an amended Blue Box Program to the Minister for approval by
February 15, 2018. It is expected that the Minister will release the proposed amended Blue
Box Program for public review and comment in late February 2018.
4.2-5
UPDATE ON THE TRANSITION OF THE BLUE BOX PROGRAM AND USED TIRES
PROGRAM TO FULL PRODUCER RESPONSIBILITY
Staff will review and provide comments on the proposed amended Blue Box Program as it
works its way through the system. Due to the timing of the consultation period, Council
approval of staff comments may not be possible prior to submission. In this case, staff
comments will be presented to Council at the earliest opportunity and any additional
comments made by Council will be submitted.
FINANCIAL IMPLICATIONS
When the Blue Box Program transitions to full producer responsibility, Peel could realize in the
order of $10 million per year in savings. These potential savings are referenced in the report
from the Commissioner of Public Works titled "Roadmap to a Circular Economy in the Region of
Peel" and listed on the November 30, 2017, Waste Management Strategic Advisory Committee
agenda. Staff recommends that any savings from the transition of the Blue Box program to full
producer responsibility be reinvested in resource recovery initiatives identified in the Roadmap.
CONCLUSION
The transition of the Blue Box Program is occurring earlier than proposed by the province, at the
request of municipalities and producers, and the transition of the Used Tires Program to
extended producer responsibility is underway.
Staff will continue to actively participate in consultations to provide feedback that is in the
interest of the Region's residents and consistent with past Council direction. Regular updates
will be bought to the Waste Management Strategic Advisory Committee and Regional Council.
Janette Smith, Commissioner of Public Works
Approved for Submission:
ST.wc
D. Szwarc, Chief Administrative Officer
APPENDICES
Appendix I — Minister's Letter on August 14 2017 to Resource Productivity and Recovery
Authority and Stewardship Ontario regarding Blue Box Program
For further information regarding this report, please contact Norm Lee, Director Waste
Management, extension 4703, norm an. lee(d_)peelregion.ca.
Reviewed in the workflow by:
Financial Support Unit
-5-
APPENDIX I
4.2-6
UPDATE ON THE TRANSITION OF THE BLUE BOX PROGRAM AND USED TIRES PROGRAM
TO FULL PRODUCER RESPONSIBILITY
Ministry of the Environment
and Climate Change
Office of the Minister
77 Wellesley Street West
11th Floor. Ferguson Block
Toronto ON M7A 2T5
Tel. 416-314-6790
Fax: 416-314-6748
August 14, 2017
Ministere de VEnvironnement
et de I'Action en matiere de
changement climatique
Bureau du ministre
77, rue Wellesley Ouest
11" etage, edifice Ferguson
Toronto ON M7A 2T5
T61.: 416-314-6790
Telec, 416-314-6748
Ms. Glenda Gies
Chair
Resource Productivity and Recovery Authority
4711 Yonge Street, Suite 408
Toronto ON M2N 61<8
And
Mr, John Coyne
Chair
Stewardship Ontario
1 St. Clair Ave_ West, 7th Floor
Toronto ON M4V 1 K6
Fie
Ontario
Re: First Phase Transition — Direction for Proposal for an Amended Blue Box
Program Plan
Dear Ms. Gies and Mr. Coyne:
Ontario's Blue Box Program is well -recognized as a North American leader that
provides services for residential paper products and packaging (PPP).
Pursuant to Section 13 of the Waste Diversion Transition Act, 2016 (WDTA), I am
writing to direct the Resource Productivity and Recovery Authority (the Authority) and
Stewardship Ontario (SO) to develop a proposal for an amended Blue Box Program
Plan (BBPP). This proposal is to be developed collaboratively with municipalities,
stewards and affected stakeholders as required by subsection 13(2) of the WDTA.
My expectation is that this proposal will outline the first phase of transition for the Blue
Box Program under the WDTA, and will set the stage for a second phase of transition
that will result in individual producer responsibility under the Resource Recovery and
Circular Economy Act, 2016 (RRCEA).
It is also my expectation that the proposal for an amended BBPP will build on the
accord outlined in the joint letter sent to my predecessor, Glen Murray, on July 7, 2017
from the Association of Municipalities of Ontario, City of Toronto, Regional Public
Works Commissioners of Ontario, Municipal Waste Association and SO.
.,2
APPENDIX I
4.2-7
UPDATE ON THE TRANSITION OF THE BLUE BOX PROGRAM AND USED TIRES PROGRAM
TO FULL PRODUCER RESPONSIBILITY
Ms. Glenda Gies
Mr. John Coyne
Page 2.
It is in the public interest that the proposal for an amended BBPP is consistent with the
following principles, -
Ensuring a seamless transition of the Blue Box Program, specifically:
Not negatively affecting Ontarians' experience with and access to Blue
Box services,
Incorporating clear rules to support residents' participation including
standardized materials and services, and
Improving program performance, -
Working towards the circular economy by supporting reduction, reuse, recycling
and reintegration of PPP materials into the economy;
Providing for continuous improvement of environmental outcomes by:
c Expanding and harmonizing the list of materials in the existing Blue Box
program that are accepted from Ontario residents,
Establishing clear and measurable collection and management standards
with a high level of environmental protection, and
Developing methods to support waste reduction;
• Providing effective economic methods to incent behavior changes leading to
waste reduction of PPP;
Driving innovation through collaborative and competitive efforts by. -
Supporting cooperation among parties, including stewards, municipalities,
waste management industry, and other affected parties, to bring
complementary abilities to deliver better results, and
Promoting competition by ensuring a fair and open marketplace for Blue
Box services under the WDTA and not creating barriers to competition
when the program transitions to individual producer responsibility under
the RRCEA;
• Avoiding stranded assets to the extent possible in a collaborative manner. -
Providing choices for municipalities where SO is to provide Blue Box services
(i.e. transitioned municipalities):
These municipalities will decide whether they wish to act on behalf of SO
for the procurement and contract oversight of PPP collection services, and
These municipalities should also have an opportunity to participate in the
post -collection management of PPP collected; and,
• Addressing issues related to the in -kind contribution from the newspaper industry
in a manner that is without cost to the transitioned municipalities.
...3
APPENDIX I
4.2-8
UPDATE ON THE TRANSITION OF THE BLUE BOX PROGRAM AND USED TIRES PROGRAM
TO FULL PRODUCER RESPONSIBILITY
Ms. Glenda Gies
Mr. John Coyne
Page 3.
The Authority and SO shall have regard to the provincial interest described in Section 2
of the RRCEA when developing the proposal for an amended plan.
As producers assume the 50 per cent of costs currently borne by municipal taxpayers, it
is my expectation there will be a clear and transparent process by which municipalities
demonstrate the benefit their taxpayers will receive.
The Authority and SO shall develop a communication and issues management plan.
The plan shall identify issues that may arise during the development of the proposal for
the amended BBPP, outline the steps to manage these potential issues and set out the
process by which the Authority and SO will provide information to affected stakeholders
and the public on a regular basis.
During the development of the proposal for an amended plan, the Authority and SO
shall ensure meaningful consultation and communication with representatives of
municipalities, stewards and other affected stakeholders.
Together with the submission of the proposal for an amended BBPP, the Authority and
SO shall submit a report to the Ministry outlining how the Authority and SO have met
the consultation requirements under the WDTA, including:
A list of the stewards, municipalities, service providers and other affected
stakeholders that were consulted during the development of the proposal;
A summary of the comments received by the Authority and SO from affected
stakeholders; and,
A report of how the comments were considered by the Authority and SO.
The Authority and SO shall report to the Ministry each month on their progress in
developing the proposal for an amended BBPP.
An addendum to this letter has been attached which provides additional direction for
amending the BBPP.
The proposal for an amended BBPP shall be developed in accordance with this letter
and the enclosed addendum and the WDTA.
If approved by the Authority, the proposal for an amended BBPP shall be submitted to
me for approval by February 15, 2018, or on such later date that I provide in writing_
The submission shall include particulars of any matters that are unresolved at the time
of the submission.
It is my expectation that, upon my approval, and subject to any necessary amendments
to relevant regulations being approved by the Lieutenant Governor in Council, this
amended plan will replace the current plan in its entirety.
WE
APPENDIX I
4.2-9
UPDATE ON THE TRANSITION OF THE BLUE BOX PROGRAM AND USED TIRES PROGRAM
TO FULL PRODUCER RESPONSIBILITY
Ms. Glenda Gies
Mr. John Coyne
Page 4.
If it is in the public interest to do so, I will provide further direction at a later date related
to the matters set out in this requirement, or to provide clarification related to amending
the BBPP.
Since ly,�%
}
r�
L 7
Chris a and
k
MirNster
Cc: Paul Evans, Deputy Minister
Ministry of the Environment and Climate Change
APPENDIX I
4.2-10
UPDATE ON THE TRANSITION OF THE BLUE BOX PROGRAM AND USED TIRES PROGRAM
TO FULL PRODUCER RESPONSIBILITY
ADDENDUM TO THE MINISTER'S DIRECTION LETTER FOR AN
AMENDED BLUE BOX PROGRAM PLAN
Pursuant to an agreement being reached between SO and each transitioned
municipality (see definition below) and subject to necessary amendments to relevant
regulations being made by the Lieutenant Governor in Council, SO would provide
services for residential paper products and packaging (PPP) supplied by stewards to
Ontario residents and covered under the Blue Box Program.
NON-TRANSITIONED MUNICIPALITIES:
Non-transitioned municipalities are those that have not entered into an agreement with
SO and SO is not delivering Blue Box collection and management services for these
municipalities.
The proposal for an amended BBPP shall address payments to the non-transitioned
municipalities under Section 11 of the WDTA based on the municipality's verified net
cost of operating its existing Blue Box program:
• The plan shall define the eligible costs to be included in calculating the net cost,
and,
• The plan shall also describe any agreements among the Authority, SO, and
recipient municipalities for the reporting and verification of costs by
municipalities.
TRANSITIONED MUNICIPALITIES:
Subject to necessary amendments to relevant regulations being approved by the
Lieutenant Governor in Council, transitioned municipalities are those that have entered
into an agreement with SO and SO is delivering Blue Box collection and management
services.
The proposal shall outline when and how the responsibility for the collection and
management of PPP will be transferred smoothly from these municipalities to SO.
The proposal for an amended BBPP shall include the following:
Defined Materials Covered in BBPP:
Include an expanded definition of Blue Box materials to identify the PPP that will
be covered under the BBPP,-
The materials shall include:
o paper products,
o primary packaging,
o convenience packaging, and
transport packaging;
For purposes of primary, convenience and transport packaging, refer to the
RRCEA for definitions; and,
APPENDIX I
4.2-11
UPDATE ON THE TRANSITION OF THE BLUE BOX PROGRAM AND USED TIRES PROGRAM
TO FULL PRODUCER RESPONSIBILITY
• When defining the materials, SO and the Authority will also consult with stewards
of packaging who are regulated under deposit -return programs (e.g., stewards of
milk containers).
Defined Stewards:
• Define obligated stewards.
Defined Responsibility for Waste Reduction and Resource Recovery:
Waste Reduction
The proposal for an amended BBPP shall:
• Establish methods to facilitate the reduction of waste generated related to
defined PPP materials. The methods may include activities to support:
increase of the product's or packaging's reusability and recyclability,
reduction or elimination of any impact the material may have on the
recyclability of other materials,
reduction of the amount of waste generated at the end of the product's or
packaging's life,
reduction or elimination of the use of any substance in the material that
compromises the material's reusability or recyclability, and/or
o increase of the use of recovered resources in the making of the material;
• Use means to discourage the use of materials that are difficult to recycle and
have low recovery rates. The means include, but are not limited to, rules for
stewards, fee setting methodology, and compiling information to measure
stewards' initiatives to reduce waste; and,
• Establish mechanisms to identify and address issues associated with
problematic materials, such as packaging that is difficult to recycle.
Collection and Manaaement of Materials
The proposal shall set clear standards for SO's collection and management, including:
• Support clear service standards to enable resident participation;
• Increase the diversion target for the Blue Box Program to 75 per cent of the PPP
supplied by stewards to transitioned municipalities' households;
• Establish material -specific management targets for PPP supplied by stewards to
transitioned municipalities' households;
• Identify geographically -based collection and management standards, including
rural, northern, and remote areas;
• Maintain convenience and accessibility standards, including:
curbside collection for households where currently provided by these
municipalities and indigenous communities,
o collection services to multi -residential buildings where currently provided
by these municipalities and indigenous communities, and
depot collection services currently provided by these municipalities and
indigenous communities;
• Improve convenience and accessibility by offering collection services to multi -
residential buildings that are not being serviced by these municipalities, within an
identified timeframe;
APPENDIX I
4.2-12
UPDATE ON THE TRANSITION OF THE BLUE BOX PROGRAM AND USED TIRES PROGRAM
TO FULL PRODUCER RESPONSIBILITY
Consider accommodating associated public spaces, parks and other related
services provided by these municipalities;
Consider expanding Blue Box collection services over time; and,
The methods for managing the materials shall allow for the material or part of the
material to be, in accordance with Ontario standards and regulations:
o reused,
o used in the making of new products, packaging or other activities in end -
markets, or
o used as a nutrient for improving the quality of soil, agriculture or
landscaping.
Promotion and Education
For the purpose of increasing resource recovery and reducing Blue Box waste
materials, the proposal shall establish an effective promotion and education program,
including promoting awareness of the program activities to residents and other targeted
audiences and engaging audiences to elicit feedback.
Registration, Reporting_ Record Keepirrrg and Audiftnq_
The proposal will include an appropriate approach for registration, reporting, record
keeping and a third -party audit to ensure an effective and efficient system.
ESTABLISH ISSUE MANAGEMENT APPROACHES:
The proposal shall:
• Develop a protocol for managing issues raised in a fair, effective, efficient and
equitable manner during the implementation of the amended plan, if approved;
• Develop a plan to avoid stranded assets to the extent possible in a collaborative
manner; and,
• Establish an arrangement between SO and the newspaper industry (i.e., the
Canadian Newspapers Association and Ontario Community Newspapers
Association) in order to meet members' obligation for old newsprint in such a
manner that is without cost to transitioned municipalities.
PROMOTE COMPETITION:
The proposal shall:
• Establish a mechanism to support a fair and open marketplace for Blue Box
services under the WDTA;
• Not create barriers to competition in the second phase of transition that will result
in individual producer responsibility under the RRCEA; and,
• Describe how contracts held by SO for the collection and management of PPP
will be managed upon wind up of the Blue Box Program to enable competition
once materials are regulated under the RRCEA.
APPENDIX I
4.2-13
UPDATE ON THE TRANSITION OF THE BLUE BOX PROGRAM AND USED TIRES PROGRAM
TO FULL PRODUCER RESPONSIBILITY
PERFORMANCE INDICATORS AND REPORTING:
The proposal shall include performance indicators to measure whether SO has
fulfilled the resource recovery obligations and established waste reduction
methods as set out in the amended plan; and,
In addition to the requirements set out in Section 30 of the WDTA, SO's Annual
Report shall include:
a description of whether and how SO has fulfilled resource recovery
obligations set in the amended plan,
a description of how SO has supported waste reduction methods set in
the amended plan, and
a third -party audit of SO's collection and management services and
outcomes.
4.3-1
FRegion
of Peel
working with you
REPORT
Meeting Date: 2017-11-30
Waste Management Strategic Advisory Committee
For Information
DATE: November 23, 2017
REPORT TITLE: UPDATE ON THE PROVINCE FOOD AND ORGANIC WASTE
FRAMEWORK
FROM: Janette Smith, Commissioner of Public Works
OBJECTIVE
To update Council on the status and expected next steps of the province's Food and Organic
Waste Framework.
REPORT HIGHLIGHTS
• The Waste -Free Ontario Act, 2016 was proclaimed in November 2016, and the
accompanying Strategy for a Waste -Free Ontario was adopted in February 2017.
• The Strategy requires the development and implementation of a Food and Organic
Waste Framework to reduce the generation and disposal of food and organic waste.
• The Framework will include a policy statement, which will provide direction to key
stakeholders, including municipalities, and an action plan, which will set out actions
the province will take. The Framework was posted for 60 days for comments in
November 2017 and will be finalized in early 2018.
• The Region of Peel and other municipalities are collaborating to advocate on behalf of
municipal interests.
DISCUSSION
1. Background
In November 2016, the Waste -Free Ontario Act, 2016 was proclaimed and the "Strategy for
a Waste -Free Ontario: Building the Circular Economy" (the Strategy) was adopted in
February 2017. The Strategy requires the development and implementation of a Framework
to address food and organic waste in Ontario.
In February 2017, staff submitted Council -approved comments on the Strategy, supporting
the development of the province's Food and Organic Waste Framework (Resolution 2017-
82).
2. Food and Organic Waste Framework
The Ministry of the Environment and Climate Change (the Ministry) is in the process of
developing the Food and Organic Waste Framework (the Framework).
4.3-2
UPDATE ON THE PROVINCE FOOD AND ORGANIC WASTE FRAMEWORK
The Ministry established a multi -stakeholder working group, which includes staff from Peel,
to help guide the development of the Framework.
Staff provided input and feedback consistent with past Council positions. Staff raised the
following key issues to be addressed in the development of the Framework:
• Streamline the approvals process for new or expanded organics processing facilities
• Recognition of municipal differences (e.g. size, resources)
• Consideration of new approaches and technologies such as mixed waste processing
• Supporting end -markets for products (e.g. compost, fertilizer, renewable natural gas,
etc.) derived from organic waste, and
• Update regulations to require the diversion of food and organic waste from the
Industrial, Commercial and Institutional sector, including from multi -residential
buildings.
On November 16, 2017 the proposed Framework was posted for a 60-day comment period.
The proposed Framework includes
• An action plan that outlines provincial initiatives to support the reduction of food and
organic waste, and
• A policy statement that provides direction to government and non -government
stakeholders on food and organic waste
The proposed Framework introduces the vision of a circular economy that moves towards
zero food and organic waste and zero greenhouse gas emissions from the waste sector, as
shown in the following figure from the proposed Framework.
Figure 1: Vision for a circular economy
1. Reduce
Food Waste
Reduce the amount of food
Wasted during the production, Reduce the generation of
processing and manufacturing _ Food waste by industry
of food in Ontario and consumers
,EREDUC.r`O
4. Promote CIRCULAR 2. Recover
Beneficial Uses ECONOMYReduce sHG Resources
A� emissions
Relntegrate resources into _ �� Expand the collection
beneficial uses to support the and processing capaclty
clrcul a r economy of food and organic
wa ste In Ontario
3. Support Resource
Recovery Infrastructure
-2-
4.3-3
UPDATE ON THE PROVINCE FOOD AND ORGANIC WASTE FRAMEWORK
The 2015 generation and diversion of food and organic waste in Ontario is shown in the
following figure from the proposed Framework.
Figure 2 — Food and Organic Waste Generated and Diverted by Sector
2,500,000
2,000,000
1,500,000
1,000,000
500,000
Food & Organic Waste Generated and Diverted by
Sector (Tonnes)
Residential IC&I
■ Generated Diverted
Source: Adapted from Reports on Organic Waste Management in Ontario, prepared for the Ontario Ministry of the
Environmentand Climate Change, 2015
The proposed Framework introduces an Ontario Food Recovery Hierarchy to prioritize the
best use of food resources in Ontario. The hierarchy consists of the following:
1. Reduce: prevent and reduce food and organic waste at the source
2. Feed People: safely rescue and redirect surplus food before it becomes waste
3. Resource Recovery: recover food and organic waste for a beneficial use
The first two components of the hierarchy are focused on preventing the generation of food
waste along the supply chain. The value of food waste across the supply chain is illustrated
in the following figure.
-3-
4.3-4
UPDATE ON THE PROVINCE FOOD AND ORGANIC WASTE FRAMEWORK
Figure 3: Value of Food Wasted by Sector in Canada
Consumers Processing Retail Restaurants
Stores & hotels
n rip'r=i X
Farm Transport Int'I
Distribution catering waste
4% 1%
1
■•
(Source, $27 billion revisited: The cast of Canada's annual food waste, VCM International, 2014)
Four key objectives of the proposed Framework are:
• To reduce the generation of food waste along the entire food supply chain
• To recover resources from food and organic waste, in particular, the multi -residential
and Industrial, Commercial and Institutional sector
• To promote end uses of products derived from organic waste
• To support the development of organics processing infrastructure
Of particular importance to Peel (and other municipalities) is the inclusion of aggressive
diversion targets followed by a disposal ban for organic waste.
The proposed Framework supports the development of anaerobic digestion facilities to
process source -separated organic waste and the development of mixed waste processing to
recover additional organics from garbage.
The proposed Framework also includes, among other things, provisions related to:
Promotion and education
Land use planning, and
Green procurement.
The aggressive diversion targets, support for new infrastructure, and other provisions of the
Framework support the achievement of Council's 75% 3R's diversion target and are
generally consistent with positions previously taken by Regional Council.
FINANCIAL IMPLICATIONS
The progressive diversion targets and ultimate disposal ban for organic waste will be significant
drivers of mixed waste processing in Peel.
4.3-5
UPDATE ON THE PROVINCE FOOD AND ORGANIC WASTE FRAMEWORK
CONCLUSION
Staff will continue to participate in consultations along with other municipalities and municipal
organizations to provide feedback that advocates for the interest of the Region's residents and
is consistent with past Council direction.
Staff will submit comments on the proposed Framework within the 60-day comment period. If
timing does not allow for Council approval of Peel's comments, staff will submit comments
within the 60-day comment period with the proviso that they are subject to Council approval and
any comments made by Council will be submitted to the Ministry.
Janette Smith, Commissioner of Public Works
Approved for Submission:
D. Szwarc, Chief Administrative Officer
For further information regarding this report, please contact Norman Lee, Director Waste
Management, extension 4703, norman.lee@peelregion. ca.
Reviewed in the workflow:
Financial Support Unit
-5-
4.4-1
Region
III REPORT
of Peel
Meeting Date: 2017-11-30
working with you Waste Management Strategic Advisory Committee
DATE: November 19, 2017
REPORT TITLE: STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY
PROJECT
FROM: Janette Smith, Commissioner of Public Works
RECOMMENDATION
That the strategic terms for the Anaerobic Digestion Facility Project, as described in the
report of the Commissioner of Public Works, titled "Strategic Terms for the Anaerobic
Digestion Facility Project," be endorsed;
And further, that $6 million be transferred from Capital Project 15-6320 to Capital Project
17-6305 for the construction of a transfer station at the Anaerobic Digestion Facility site;
And further, that the remaining funds in Capital Project 15-6320 be used for the
construction of a yard waste transfer station at the Fewster Community Recycling
Centre.
REPORT HIGHLIGHTS
• A property located at 7500 Danbro Crescent, Mississauga (the Site) was acquired in
September 2017 for the Anaerobic Digestion Facility (AD Facility).
• The capacity of the AD Facility will be 90,000 tonnes per year, which will meet the
Region of Peel's needs for the foreseeable future. Additional capacity may be required
in the future but cannot be accurately forecasted at this time. No dedicated capacity
will be provided for Industrial, Commercial and Institutional organics.
• A transfer station will be co -located with the AD Facility at the Site. Space is available
for a transfer station. Access to a transfer station in west Mississauga will make waste
collection more efficient and will eliminate the need for a dedicated yard waste transfer
station.
• The AD Facility and transfer station will be developed by a design, build, operate and
maintain (DBOM) contract approach. The Project Company will operate the entire
Site and will be responsible for the management of all outputs, except renewable
natural gas. The Project Company will competitively procure the sub -contract for
digestate management.
• Biogas produced by the AD Facility will be refined to renewable natural gas for
injection into the Enbridge Gas Distribution Limited (Enbridge) natural gas distribution
system. The Region will retain ownership of the renewable natural gas and will direct
where renewable natural gas is to be used at its discretion.
• Staff will negotiate with Enbridge the terms of the renewable natural gas injection
4.4-2
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
service agreement concurrent with the procurement of the DBOM contract for the AD
Facility and transfer station, and will report back to Regional Council for approval of an
agreement with Enbridge once key terms have been negotiated.
• Subject to Regional Council approval of the recommendation, procurement of the
DBOM contract for the AD Facility and transfer station will commence in January 2018
and will include Request for Prequalification and Request for Proposal stages. Staff
will report back to Regional Council with a recommended contract award.
• During the procurement process, the Purchasing Advisor will be designated as the
single point of contact for all interests related to the procurement process.
DISCUSSION
1. Background
In 2014, Regional Council endorsed the Waste Management Infrastructure Development
Plan which included a new Anaerobic Digestion Facility. In 2015, Regional Council
approved a plan to develop a 120,000 tonne per year Anaerobic Digestion Facility (AD
Facility) to be located in either the City of Brampton or the City of Mississauga where direct
delivery of organics can be achieved (Resolution 2015-742).
2. Site Update
The project Site, located at 7500 Danbro Crescent' (the Site), in northwest Mississauga was
acquired on September 15, 2017.
Regional staff and consultants have completed a full range of due diligence investigations
prior to closing, including permitting, Site conditions and impacts of the AD Facility and
transfer station on neighbouring properties. The Site can be adequately serviced, including
water, wastewater and natural gas.
The City of Mississauga has confirmed that the Region's intended use of the property is a
permitted use under the existing zoning designation, and that the property is exempt from
the City's site plan control by-law. The Site is also located outside of the Toronto Pearson
International Airport Primary Bird Hazard Zone and has no conservation authority regulated
area.
The Ministry of the Environment and Climate Change (the Ministry) has confirmed that the
environmental permits required to build and operate the AD Facility and transfer station can
be issued if it can be shown that the odour and noise emissions will not impact the closest
sensitive receptors, i.e. that the expected impacts at the sensitive receptors will be below
the Ministry's limits. Existing land uses and development proposals in the vicinity of the Site
were surveyed and the closest sensitive receptors were identified. The Region's consultant
modeled expected odour and noise emissions and report that the AD Facility and transfer
station will not impact the sensitive receptors.
Investigations of existing Site conditions (referred to as Phase 1 and Phase 2 Environmental
Site Assessments) did not discover any contamination of subsoils or groundwater at the
Site.
' Site is comprised of four parcels: 7450-7500 Danbro Crescent and 7360-7390 East Danbro Crescent
-2-
4.4-3
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
The Site has been the location of a secure tractor -trailer storage facility since 2008.
According to the previous owner, the current use generates approximately 200 tractor -trailer
movements to and from the Site each weekday. A traffic study completed as part of the due
diligence investigations did not identify any significant impacts as a result of the AD Facility
and transfer station replacing the current use.
Following closing, the previous owner will continue to operate the secure trailer storage
facility on the Site as a tenant of the Region for a period of 14 months (extendable on
market terms upon mutual agreement). During this period, Regional staff will initiate the
process to procure a contract to design, build and operate the AD Facility and transfer
station and will also initiate the process to secure environmental permits. Consultation with
owners and occupants of nearby properties is a requirement of the permitting process. If
procurement and permitting proceed according to plan, construction at the Site would
commence in 2020.
3. Strategic Terms for the Anaerobic Digestion Facility Project
The AD Facility will receive and process green bin organics to produce biogas, digestate,
wastewater and residue. Biogas is a renewable energy source that can be beneficially used
in different ways, as described in section 3d), including being upgraded to renewable natural
gas. Digestate contains organic matter and plant nutrients and can be used as a fertilizer
or to produce compost. Wastewater will be discharged to the sanitary sewer in accordance
with the Region sewer use policies. Residue will be disposed.
Strategic terms define the roles and responsibilities of the parties and the performance
requirements of the project, including the requirements for the management of outputs.
The following sections outline strategic terms for the project, in relation to:
• project scope
• capacity and feedstock
• biogas management and utilization
• digestate management and utilization
• procurement, and
• community engagement
a) Project Scope
The project will be developed using a design, build, operate and maintain (DBOM)
approach. The three major parties involved in the project will be the Region of Peel, the
successful proponent from the procurement process (herein referred to as "Project Co.")
and Enbridge Gas Distribution Limited (Enbridge). Project Co. and Enbridge will be
contracted to the Region of Peel.
The roles of the three major parties in delivering the AD Facility project scope is
illustrated in the figure below and explained in the following sections.
-3-
4.4-4
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
Figure: Roles in Delivering the AD Facility Project Scope
Green sin
Organics
90,000 tpry
Wastewater
to W WTP
Anaerobic ❑igestion
Facility
Residue to
Disposal
Legend
Project Co. Scope
Enbridge Scope
Biogas
Upgrading
Biogas toIRRN�NG
01
RNG Injection into
Enbridge Natural Gas Grid
deg
Digestate to
Agriculture
Heat Fuel
i) Scope of the Region of Peel
The Region of Peel will be responsible for:
• providing the Site for the AD Facility, transfer station and related structures
• leasing a portion of the Site to Enbridge for the renewable natural gas injection
system
• supplying a minimum guaranteed tonnage of organics
• retaining ownership of the renewable natural gas and determining how it is to be
used at the Region's sole discretion, and
• paying Project Co. and Enbridge based on the agreed -upon payment terms and
conditions.
ii) Scope of the Project Company
Project Co. will be responsible for:
• design, approvals and construction
• operations for a period of 15 years plus an optional 5-year extension (at the
Region of Peel's sole discretion)
• maintenance, including lifecycle maintenance
• upgrading biogas to renewable natural gas;
• management of outputs including digestate,
excluding renewable natural gas, and
• environmental compliance.
wastewater and residue, but
4.4-5
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
Making Project Co. responsible for operation of entire Site, including transfer station
and weigh scales, will achieve the following business objectives:
• clear accountability for operations
• integration of design and operations, and
• clear responsibility for environmental compliance.
Project Co. will be required to meet the following performance requirements:
• process all Region supplied organics up to 90,000 tonnes per year
• minimize on -site time for collection vehicles to maintain the efficiency of
collections and prevent collection vehicles from queuing on Danbro Crescent
• produce biogas at a rate and of a quality that meets or exceeds the minimum
requirement
• convert biogas to renewable natural gas meeting renewable natural gas quality
specifications and at a recovery rate that meets or exceeds the minimum
requirement
• limit residue generation below maximum quantity and water content limits
• produce digestate meeting or exceeding minimum quality requirements, except
heavy metals, and at a rate not exceeding a maximum quantity
• wastewater discharge to sanitary sewer to comply maximum discharge limits per
surcharge agreement, and
• contain, control and treat odours and maintain odour emissions to below
maximum limits.
iii) Proposed Scope of Enbridge Gas Distribution Limited
It is proposed that Enbridge will be responsible for:
design, construction, operation and maintenance of an Enbridge-owned
compression and injection station at the Site, and
injection of the Region's renewable natural gas in to the pipeline and distribution
to Regional facilities or other uses as determined by the Region.
b) AD Facility Capacity
Staff have prepared organic tonnage projections and recommend an AD Facility having
a capacity of 90,000 tonnes per year. Additional capacity may be required at some
future time, but how much and when cannot be predicted with certainty. The
implementation of the Food and Organic Waste Framework under the Waste -Free
Ontario Act, 2016, which will include a focus on reduction, will change how organic
waste is generated and managed in the future.
Additional organics processing capacity will be considered as part of the updated Waste
Management Infrastructure Plan, possibly as a component of a Mixed Waste Processing
Facility.
The Site is large enough to accommodate an ancillary use. Its location creates an
opportunity to increase the efficiency of waste collections on the west side of the Region
-5-
4.4-6
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
by co -locating a transfer station with the AD Facility. Co -locating a transfer station at the
Site will eliminate the need for the dedicated Yard Waste transfer station included in the
current infrastructure plan for Waste Management. Staff recommends therefore, that a
transfer station be co -located with the AD Facility at the Site.
c) Capacity for Industrial, Commercial and Institutional Organics
Staff commissioned Partners in Project Green to complete a study of the sources,
quantities and types of organic waste material generated by Industrial, Commercial and
Institutional establishments in food production, distribution and retail sectors within Peel
Region. This study compiled information on the types of establishments and the types
and quantities of organic waste generated. The study also assessed the state of the
market for organic waste management services available to the Industrial, Commercial
and Institutional sector, now and in the future. The study also investigated management
practices and market conditions for disposal and diversion options.
Findings from the study indicate that:
price is the dominant factor for waste management in the Industrial, Commercial
and Institutional sector; the price to manage waste, including diversion of organic
waste must be competitive with landfill
Industrial, Commercial and Institutional companies usually enlist an all -in waste
management solution and typically contract with waste haulers (and not directly
with processors) for terms of less than one to three years, and
for multi -national companies, social responsibility decisions are made elsewhere.
On the basis of this information, staff concluded that a reliable supply of suitable
Industrial, Commercial and Institutional organic waste cannot be secured at this time, or
in the future, at a price and on terms compatible with processing at the Region's AD
Facility. Staff recommends therefore, that additional capacity for Industrial, Commercial
and Institutional organic waste not be included in the design of the AD Facility.
d) Management of Biogas
Biogas is one of the products on the anaerobic digestion process. Comprised primarily
of methane and carbon dioxide, it is a renewable energy source that can be beneficially
used in different ways including:
direct combustion for industrial/commercial building and/or process heat
cogeneration to produce electricity and heat for on -site and off -site use, and
upgrading biogas to renewable natural gas for injection into the local natural gas
distribution system.
Direct combustion of biogas requires an industrial facility with a large, constant heat
demand in close proximity to the AD Facility and, to date, none have been identified.
Direct combustion is therefore not an option at this time. A portion of the biogas can be
used directly within the AD Facility to meet process and building heating requirements.
The Independent Electricity System Operator (the provincial organization with the
mandate to purchase electricity for the Ontario system) had a procurement program for
4.4-7
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
electricity generated from renewable energy sources, including biogas, but that program
was cancelled on September 27, 2016. At present there is no program to procure
renewable electricity from large generators. In late October the province released the
Long -Term Energy Plan 2017 which confirms that no large-scale procurement of new
renewable electricity generation capacity is planned. Therefore, electricity generation is
not an option at this time.
Upgrading biogas to renewable natural gas for injection into the natural gas distribution
system is currently the only viable beneficial biogas utilization option for the AD Facility.
Prior to injection into the natural gas distribution system, biogas must first be upgraded
to renewable natural gas, then compressed and injected into the pipeline. Once in the
pipeline the renewable natural gas can be available for use anywhere within the North
American gas distribution system.
The Long -Term Energy Plan 2017 states that the province will work with industry
partners and the Ontario Energy Board to introduce a requirement that natural gas
contains some renewable content.
The steps that are involved in upgrading biogas to renewable natural gas are described
in Appendix I but generally involve the removal of carbon dioxide and trace gasses to
produce a gas that is comprised primarily of methane.
The Region of Peel and Enbridge Gas Distribution Limited (Enbridge) have been
exploring options to purify the biogas generated from the AD Facility to produce
renewable natural gas and inject the renewable natural gas to Enbridge's natural gas
distribution system. Enbridge is the regulated natural gas distribution utility in south
central Ontario, including Peel Region.
A Memorandum of Understanding has been executed between both parties and
discussions continue towards securing a long-term agreement for the project. The
purpose of the Memorandum of Understanding is to clarify roles and responsibilities for
the agreements that would govern the design, construction, operation and maintenance
of the biogas to renewable natural gas upgrading system and injection of renewable
natural gas into the natural gas distribution system.
Enbridge is proposing to offer two services to renewable natural gas producers as
follows:
1. Biogas Conditioning and Upgrading Service (Upgrading Service), and
2. Renewable Natural Gas Injection Service (Injection Service).
The biogas upgrading and conditioning process is sensitive to changes in flow and
quality of the biogas from the AD Facility. The injection process includes a quality check
to ensure that renewable natural gas meets pipeline quality standards, control of flow
and pressure through regulation or compression, odourization and delivery into the gas
distribution system.
It is recommended that the Region contract with Enbridge only for the Injection Service
and that the biogas upgrading to renewable natural gas be included in Project Co.'s
scope for the AD Facility for the following reasons:
7-
4.4-8
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
• integration of design and operations
• simultaneous commissioning of the AD Facility and biogas upgrading system
• clear accountability for performance of the AD Facility and biogas upgrading, and
• contractual simplicity and clarity.
Enbridge would be responsible for:
• design, approvals and construction of the injection station
• operation and maintenance of injection station
• ensure that the renewable natural gas injected into the gas distribution system
meets the requirements of applicable codes and standards, and
• delivery of Peel's renewable natural gas to Region of Peel facilities or to market.
Enbridge's role with respect to the biogas upgrading system can be revisited with the
Project Co. and/or Enbridge. Contract amendments, if required, will be brought to
Regional Council for approval.
The Region will retain ownership of the renewable natural gas and the distribution
agreement will require Enbridge to deliver Peel's renewable natural gas to any locations
within the Enbridge service area as determined by the Region.
Staff will negotiate the Site specific terms of the Injection Service and will report on the
key terms of this agreement to Regional Council for approval upon or following the
award of the contract to Project Co. for the AD Facility.
As there is uncertainty surrounding provincial policies and future market options for
renewable natural gas are still evolving, a report will be brought to a future meeting of
the Waste Management Strategic Advisory Committee or Regional Council with options
and recommendations for use of Peel's renewable natural gas. Options for using Peel's
renewable natural gas could include (but are not limited to):
• building heat or process heat in Regional facilities
• fuel for Peel vehicles or in Peel waste collection vehicles
• process heat at the AD Facility
• sale to third parties or on the open market.
e) Management of Digestate
Digestate is the organic material remaining after the anaerobic digestion process
converts some of the organics into biogas. At full capacity, the AD Facility is expected to
generate a minimum of approximately 20,000 tonnes per year of digestate. Digestate will
be produced as organics are processed at the AD Facility, which will be at a more or
less constant rate throughout the year.
The digestate will contain organic matter, plant nutrients and water, which make it
suitable for beneficial use as a fertilizer, compost or a soil amendment. Beneficial use of
materials similar to digestate is a common and longstanding practice in Ontario and
elsewhere. Requirements for the quality and use of fertilizers, composts or soil
amendments containing or produced from organic waste materials are well established
in provincial and federal policies and regulations.
4.4-9
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
A typical system for the beneficial utilization of digestate and similar materials in
agriculture will include the following key components:
1. access to sufficient area of suitable agricultural land
2. facilities that can receive digestate throughout the year and store the material during
the seasonal periods when application to agricultural land is not possible
3. experienced service providers possessing the expertise and equipment necessary to
apply the annual production of digestate to agricultural land, and
4. management procedures to ensure compliance with applicable provincial or federal
requirements.
A small but experienced industry exists in Ontario providing services for the beneficial
use of digestate and similar materials. All of the system requirements listed above are
currently being provided by the industry.
The quantity of digestate expected to be produced by the AD Facility will likely mean that
key components of the beneficial utilization system will be located outside of Peel
Region, including the storage or processing facilities and much of the agricultural land to
which the digestate will be applied.
The Region has been marketing compost produced from organics and yard waste for
agricultural use for many years. In 2016, the Region marketed approximately 17,000
tonnes of compost, including 13,000 tonnes of compost to agricultural markets located
mostly outside of Peel Region. The agricultural demand for the Region's compost has
consistently exceeded the supply, suggesting a strong and consistent demand by
agriculture for alternative sources of nutrients.
In July and August 2016, staff and AD project consultants consulted with the relevant
federal and provincial government agencies, with Ontario agricultural associations, with
farmers and farm businesses, and with the beneficial use industry regarding the
agricultural utilization of digestate from Peel's AD Facility. Consistent messages from all
sectors were:
• the agricultural land base within reasonable proximity to Peel Region is more
than adequate for the expected annual tonnage of digestate, considering
agricultural practices, farmer interest and current and expected future increases
in the availability of similar materials
• many farmers and farm business are aware of and interested in using digestate
and similar materials, subject to material quality and price
• registration of the digestate as a fertilizer product was recommended to minimize
the administrative requirements for regulatory compliance, and
• the permitting process for establishing new storage or downstream processing
facilities will be difficult and lengthy.
A reliable and secure system for beneficially utilizing the digestate in agriculture is critical
if the AD Facility is to achieve its waste diversion objectives by `closing the loop' on
organics recycling. Planning for digestate management early in the AD Facility
development process is essential to ensure that the digestate will meet the quality
requirements for beneficial use and ensure that the components of the digestate
management system are in place when the AD Facility becomes operational.
4.4-10
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
Companies that would develop and operate Peel's AD facility typically would not self -
perform the digestate management work but would instead contract with one or more of
the small number of active beneficial use service providers. The relatively small size of
the beneficial utilization industry could limit the response to the Request for Proposal if it
were procured with the AD Facility, as they would only partner with one of the
prequalified proponents.
Staff therefore recommend that, following the DBOM contract award, Project Co. be
invited to offer to self -perform the digestate management services on competitive terms,
including price. If Project Co. declines to offer the service, or offers price and other terms
which Staff deem uncompetitive, they would then be required to competitively procure a
contract for digestate management services with:
• the scope of work to be approved by Region
• the scope to include primary and contingency capacity
• selection of the contractor include consideration of experience, track record and
capabilities
• the procurement to be conducted with Regional oversight and to be consistent
with Regional procurement policies
• the term of the digestate management services contract to be the same as that
for operation of the AD Facility, and
• the Region retaining final approval on terms and price.
This approach will increase competition for both services resulting in better procurement
outcomes for the AD Facility and the beneficial utilization of digestate.
Project Co. will be responsible for digestate management operational decisions including
marketing and beneficial end uses. Project Co. will pass through costs of digestate
management and associated administration costs to the Region.
4. Procurement Plan
As supporting technical studies for the project have been completed and the Site has been
acquired, the procurement process to select a project company to design, build, operate and
maintain the AD Facility and transfer station can now commence. Staff have developed a
detailed procurement plan which considers the procurement risk, incorporates strategies to
mitigate the risk and ensures that the procurement is conducted in accordance with best
practices, Regional policies, procedures, the procurement by-law and will be compliant with
the requirements of trade agreements to which the Region is subject.
In accordance with the procurement plan, the Region will conduct a Request for
Prequalification followed by a Request for Proposal.
Through the previous Request for Expression of Interest (Document 2016-4601), staff have
created a database of companies that have expressed interest in this Project. Companies
that responded to the Request for Expressions of Interest are listed in Appendix 11. Those
firms who have expressed interest in the Project will be sent a copy of the Notice of
Intended Procurement. Additionally, staff will seek to notify potential Proponents in the
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STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
marketplace through various advertisement channels (websites, publications, industry
journals, etc.).
a) Request for Prequalification
The initial phase of the procurement process is a Request for Prequalification process
which will identify technologies qualified for use in the AD Facility and teams qualified to
design, build, operate and maintain the AD facility.
Proponents will be required to identify a minimum of one and a maximum of three
operating reference facility(ies) which use the same core technology and process a
similar quantity and composition of organic material to that expected in the Region's AD
facility. Based on 24 consecutive months of data (within five years prior to the issuance
of the Request for Prequalification) supplied from the operating facility(ies) and the
design brief provided for the Region's AD Facility, the Region will assess submissions
based on the following:
• completeness and design integration of the Proponent's proposed technology
• similarity of the quantity and composition of the organics processed at the
Proponent's operating facility to that which is anticipated at the Region's AD
facility
• availability and reliability of the Proponent's reference facility
• quality of digestate and biogas produced
• facility diversion rate, and
• odour prevention, control and treatment measures.
The prequalification of teams will focus on the experience of key team members, their
financial capability and capacity, and their proven ability to deliver projects of a similar
scope and scale to the Region's AD Facility project.
In addition to the evaluation of the written submission, it is anticipated that the
procurement coordinator and the technical evaluators will visit at least one reference
facility for each of the top ranked proponents for the purpose of verifying the information
supplied in the submission. Out of country travel is anticipated for this evaluation.
Based on the outcome of the Request for Prequalification process, a maximum of four
teams and their corresponding technologies will be invited to respond to the subsequent
Request for Proposal process. Provisions in the procurement process will allow for the
resubmission and re-evaluation of prequalified teams and their technologies in the event
that material changes to their team or technology occur prior to the submission of the
Request for Proposal.
b) Request for Proposal
The proponent teams prequalified through the Request for Prequalification process will
be invited to participate in a Request for Proposal process. The initial issue of the
Request for Proposal will include a draft of the project agreement. Through a series of
commercially confidential meetings with each of the proponent teams, staff will discuss
concerns with the draft agreement and issues related to the project scope of work.
Changes to the draft project agreement may be required to address issues identified
during the commercially confidential meetings. Upon completion of the commercially
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STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
confidential meetings the Region will issue a final draft of the project agreement to which
all proponent teams must bid.
The proposal submissions will be evaluated based upon technical and financial
components. The technical and financial scores will be combined to achieve a final
score for each compliant proposal. The technical evaluation criteria will include overall
AD Facility, transfer station and Site design, process design, ancillary technologies, the
proposed development plan and the proposed operations and maintenance plan which
will include the lifecycle maintenance plan. The financial criteria will be evaluated based
on the net present value of the capital and operations and maintenance costs over the
full operating term. Through the evaluation process staff will evaluate any proposed
innovations which offer value to the Region.
Following evaluation, staff will conduct limited negotiations which may be consecutive or
concurrent with the top scoring proponent or proponent(s) depending upon the outcome
of the evaluation. The purpose of these negotiations will be to reach agreement upon
details of the project agreement not related to risk or price. The Region will reserve a
right to conduct a best and final offer process, if required, to support the final
identification of the recommended proponent team. Following this process, staff will
return to Regional Council with a recommendation for award.
c) Procurement Process Timelines
Staff anticipate that the procurement process for this project will take approximately 22
months to complete. The anticipated timelines are as follows:
Issuance of Request for Prequalification
January 2018
Close of Request for Prequalification
March 2018
Identification of prequalified proponent teams
June 2018
Issue of Request for Proposal
August 2018
Close of Request for Proposal
April 2019
Completion of Evaluation and Negotiation
August 2019
Recommendation Report to Regional Council
October 2019
d) Single Point of Contact
In accordance with the Region's Purchasing By-law, the Purchasing Advisor assigned to
this procurement process by the Finance Department will be designated as the single
point of contact for all interests related to the procurement process for this project from
the time the Request for Prequalification is issued through to the execution of the project
agreement with the awarded project company. During the procurement process a non -
contact and anti -lobbying provision will require that proponent teams restrict all
communication regarding the project or the procurement process to the designated
single point of contact. Proponent teams responding to the Request for Prequalification
will be required to execute a confidentiality agreement.
5. Community Engagement
Staff will work with the Ward Councillor to develop a communication plan to engage the
community surrounding the Site. Components of the community engagement plan could
include:
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STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
• public meeting, possibly to be held in conjunction with the environmental permitting
process; and,
• establishment of liaison group to be in effect during construction and first few years of
operation.
A project web page will be active during procurement and construction period to provide
updates.
RISK CONSIDERATIONS
a) Project Company Performance
In order to ensure the successful execution of the DBOM contract, the following provisions
will be included in the procurement process and DBOM contract:
• the Request for Prequalification process will ensure that only teams capable of executing
the project will be eligible to respond to the Request for Proposal
• performance requirements will be clearly specified in the contract documents
• AD Facility compliance with the performance requirements will be incentivized by a
combination of holdbacks to be released once satisfactory performance has been
confirmed
• timely construction will be ensured through liquidated damages for delays attributable to
Project Co., and
• during the Operations and Maintenance term, Project Co. will continue to comply with
performance requirements, which will be backstopped by liquidated damages, payment
set -offs and a letter of credit.
b) Management of Biogas
The Federal and Provincial policies which could potentially affect the market for renewable
natural gas are in development and the outcomes are uncertain. In order to minimize the
risk of this uncertainty to the Region, the AD Facility will utilize co -fired boilers (which can
operate on biogas or natural gas) which will provide the flexibility to use biogas for process
needs first, with the remainder being directed to the biogas to renewable natural gas
upgrading system. Additionally, the Region will have the discretion control of how much
biogas is used to meet the AD Facility process needs and how much is upgraded to
renewable natural gas. Finally, the Region will retain ownership of the renewable natural
gas and will have the discretion to direct renewable natural gas to a destination of its choice
within the Enbridge distribution area. Alternatively, if a very favourable market price can be
obtained for renewable natural gas and it is decided that it will be sold, all biogas can be
converted to renewable natural gas.
As there is uncertainty surrounding provincial policies and future market options for
renewable natural gas are still evolving, a report will be brought to a future meeting of the
Waste Management Strategic Advisory Committee or Regional Council with options and
recommendations for use of Peel's renewable natural gas.
To improve the Region's chances of securing an injection and distribution service
agreement on price and terms acceptable to the Region, staff will negotiate with Enbridge
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4.4-14
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
concurrent with the procurement process, and by doing so will be able to effect any
necessary changes in scope to the project while still being competitively procured.
c) Management of Digestate
Generally, there are many AD technology providers and developers and very few digestate
management service providers. There is a potential risk of obtaining a good AD developer
and less qualified digestate management company or vice versa. In order to minimize the
procurement risk to the Region of an unfavorable paring of both services, the procurement
of the AD Facility and digestate management services will be conducted separately, with the
latter being conducted by Project Co. following award of the AD Facility DBOM contract.
This approach will result in the Region getting the best pairing of AD Facility Project Co. and
digestate management company.
The risk associated with procurement of digestate management contract will be minimized
by requiring Project Co. to conduct the procurement for the service in accordance with the
scope and provisions as described in section 3.e), including Regional oversight.
d) Construction Costs
The commercial confidential meetings held as part of the Request for Proposal process will
reduce the risk that proposals will exceed the project budget.
The Region of Peel will assume limited construction cost risk during the Request for
Proposal evaluation period. Proponents will have no control of the length of time between
Request for Proposal close and DBOM contact award. Any cost adjustments between
Request for Proposal close and DBOM contract award will be adjusted using specific, pre-
determined indices in the Request for Proposal. Project Co. will assume construction cost
risk following DBOM contract award.
e) Operations and Maintenance Costs
During the operations and maintenance term, Project Co. will be paid for the full scope of
work associated with the AD Facility on the basis of per -tonne processing fees and flow -
through costs of utilities and digestate management. Work associated with the transfer
station will be paid on the basis of a fixed monthly rate plus per -tonne fees for materials
transferred.
To minimize the Region's cost risk during the operations and maintenance term, proponents
will be required to bid the per -tonne fees and fixed monthly rate which will be applicable to
the first 12 months of operations, and which will adjusted annually thereafter according to
changes in pre -determined price indices. Similarly, prices bid for digestate management,
which the Project Co. will pass -through to the Region, will be applicable to the first 12
months of operations and will be adjusted annually thereafter according to changes in pre-
determined price indices.
Project Co. will pass -through the cost of utilities (electricity and natural gas) to the Region.
In order to minimize the risk to the Region of excessive utility consumption, Project Co. will
guarantee the maximum quantity of each utility to be consumed per tonne processed and
be responsible for the cost of all utility consumption in excess of the guaranteed amounts.
The Region will assume the risk of changes in the unit prices of utilities.
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STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
f) Life -Cycle Maintenance
Project Co. will be required to conduct the life -cycle maintenance required to maintain the
AD Facility and transfer station in a state of good repair such that at the end of the contract
the AD Facility and transfer station will be in the same condition as the start of the
operations and maintenance term, accounting for normal wear. Project Co. will submit and
bid a lifecycle maintenance plan to define the lifecycle maintenance work to be completed
over the duration of the Operations and Maintenance term and the associated costs. The
Region will maintain an internal reserve account to accumulate funds in anticipation of
payment for lifecycle maintenance as it is completed. Project Co. will be required to cover
the difference if actual cost of the lifecycle maintenance work exceeds the amount
accumulated in the reserve, and will be paid the amount remaining in the internal reserve at
the end of the Operations and Maintenance term subject to confirmation of the Facility's
condition.
FINANCIAL IMPLICATIONS
The 2018 Capital Plan requested a budget of $108.7 million for the Facility construction in 2019.
Staff recommend that $6 million from the leaf and yard waste transfer station Capital Project 15-
6320 be transferred to the Capital Project 17-6305 for the construction of a transfer station at
the Danbro site and the remaining funds be used for the construction of a yard waste transfer
station at the Fewster Community Recycling Centre.
Staff are currently making an application to obtain funding from the Municipal Greenhouse Gas
Challenge Fund. Staff will continue to investigate other funding opportunities as they arise.
The financial implications of the renewable natural gas Injection Service agreement with
Enbridge for the injection and transportation of renewable natural gas will be brought in a future
report to the Waste Management Strategic Advisory Committee and Regional Council.
CONCLUSION
The design, build, operate and maintain contract for the AD Facility and co -located transfer
station will be procured in accordance with the strategic terms described in this report.
Subject to Regional Council approval of the recommendation contained in this report,
procurement of the DBOM contract for the AD Facility and transfer station will commence in
January 2018 with the Request for Prequalification process, followed by a Request for Proposal
process.
Staff will report back to Regional Council with the results of the Request for Proposal process
including recommendation for award of the DBOM contract for the AD Facility.
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4.4-16
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
Staff will negotiate the Site specific terms of the Injection Service Agreement with Enbridge and
will report on the key terms of the agreement to a future meeting of the Waste Management
Strategic Advisory Committee and Regional Council for approval.
)�A�
Janette Smith, Commissioner of Public Works
Approved for Submission:
D. Szwarc, Chief Administrative Officer
APPENDICES
Appendix I - Description of Biogas Upgrades to Renewable Natural Gas
Appendix II - Request for Expressions of Interest Respondents
For further information regarding this report, please contact Norm Lee, Director Waste
Management, extension 4703, norman.lee@peelregion.ca.
Reviewed in workflow by:
Financial Support Unit
Purchasing
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APPENDIX I
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
Anaerobic Digestion Facility Biogas Upgrading System
Facility
Co -fired
Boiler
(Biogas and
Natural Gas)
Natural Gas
Project Co. Scope Biogas Buffer
Storage
Biogas
Biogas
RNG to Region of
Peel or Market
Biogas Upgrading
System
Biogas
i_fi I I
1-1
RNG
Natural Gas Pipeline
RNG Compression
and Injection
��4i
Upgrading of Biogas to Renewable Natural Gas
Since biogas production can fluctuate due to various process conditions, the biogas buffer
storage enables the biogas upgrading system to receive a constant flow of biogas and evens
out changes in composition.
Biogas can be upgraded to produce a pipeline grade, renewable natural gas (RNG) using
varying types of technologies. The most common are water wash, vacuum pressure swing
adsorption (VPSA) and membrane. Impurities such as hydrogen sulfide are first removed using
media or bio-chemical based processes. Then it is compressed and passed an upgrading
technology to separate carbon dioxide from methane (minimum 90% recovery), the primary
component of natural gas. A quality check (methane content, impurities) is completed prior to
the RNG being directed to the Enbridge Gas Distribution Limited (Enbridge) compression and
injection station.
Enbridge will conduct a second quality check after final compression (if required depending on
the upgrading technology and pipeline pressure) prior to odourization and injection into the
pipeline.
The waste gas stream, known as tail gas, which contains a small amount of unrecovered
methane, is typically combusted in a flare or thermal oxidizer.
4.4-18
APPENDIX I
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION FACILITY PROJECT
Process Heat for the Anaerobic Digestion Facility (AD Facility)
The AD Facility will be designed such that biogas or purchased natural gas can be used to meet
building and process heat needs, via the use of a co -fired boiler that can use either fuel. During
the operations and maintenance phase of the project, utilities, including natural gas will be pass -
through costs, with Project Co. to guaranteeing the quantity used per tonne Organics processed
and Region being responsible for rates.
RNG Production
At full capacity, AD Facility and biogas upgrading system is expected to produce 5.7M m3 per
year of RNG (assuming no biogas used for process needs). If biogas is first used for building
and process heat (which would consume up to 32% of biogas), including pasteurization of
Digestate (to meet federal fertilizer requirements) then 3.91VI m3 per year of RNG would be
produced.
The Region's natural gas consumption in 2016 was 14.41VI m3, including Regional offices, Peel
Long Term Care facilities, Peel Living buildings and water and wastewater treatment plants.
The curbside contracted waste collection fleet RNG consumption in 2016 was 6.31VI m3.
4.4-19
APPENDIX II
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION PROJECT
Request for Expressions of Interest (Document 2016-4601) Respondents
Company Name
Project Role (Developer, Designer, Technology Provider,
Constructor, Operations and Maintenance Provider, Output
Management Provider)
344016 Ontario Ltd.
Not identified in submission
Anaergia DB LLC
Developer, Designer, Technology Provider, Output
Management Provider
BDP Industries
Output Management Provider
BIO-EN Power
Technology Provider, Operations and Maintenance Provider,
Output Management Provider
BIOFerm Energy Systems
Developer, Designer, Technology Provider
GE Water & Process
Designer, Technology Provider
Technologies Canada
Hitachi Zosen Inova USA,
Developer, Designer, Technology Provider, Constructor,
LLC
Operations and Maintenance Provider, Output Management
Provider
JM Smith International, LLC
Not identified in submission
Kenaidan Contracting LTD
Constructor
Maple Reinders
Developer, Designer, Constructor, Operations and
Maintenance Provider, Output Management Provider
Miller Waste Systems Inc.
Developer, Constructor, Operations and Maintenance Provider,
Output Management Provider)
North America Construction
Developer, Designer, Constructor
(1993) Ltd.
Novatech Analytical Solutions
Technology Provider
Ontario Clean Water
Operations and Maintenance Provider, Output Management
Association
Provider
Orgaworld Canada Ltd.
Developer, Designer, Operations and Maintenance Provider,
Output Management Provider
O.W.S., Inc.
Designer, Technology Provider, Constructor, Operations and
Maintenance Provider, Output Management Provider
Peel Biofuel Grp (Buttcon
Developer, Designer, Technology Provider, Constructor,
Energy Inc./GFL
Operations and Maintenance Provider
Environmental/Wright Tech
Systems Inc.
StormFisher Ltd.
Developer, Constructor, Operations and Maintenance Provider,
Output Management Provider)
Suez Canada Waste Services
Developer, Designer, Operations and Maintenance Provider,
Output Management Provider
Team Gemini LLC
Developer, Designer, Technology Provider, Operations and
Maintenance Provider, Output Management Provider
Urbaser SA
Developer, Designer, Technology Provider, Constructor,
4.4-20
APPENDIX II
STRATEGIC TERMS FOR THE ANAEROBIC DIGESTION PROJECT
Company Name
Project Role (Developer, Designer, Technology Provider,
Constructor, Operations and Maintenance Provider, Output
Management Provider)
Operations and Maintenance Provider, Output Management
Provider
Veolia Water Technologies
Developer, Designer, Technology Provider, Constructor,
Canada Inc.
Operations and Maintenance Provider, Output Management
Provider
Walker Environmental Group
Developer, Operations and Maintenance Provider, Output
Inc.
Management Provider
Waste Treatment
Developer, Designer, Technology Provider, Constructor
Technologies Netherlands
B.V.
Weltec BioPower GmbH
Designer, Technology Provider
Wessuc Inc.
Not identified in submission
WesTech Engineering Inc.
Designer, Technology Provider
W.S. Nicholls Construction
Developer, Constructor
Inc.
Yield Energy Inc.
Designer, Technology Provider, Operations and Maintenance
Provider