Ontario scrap tire industry braces for stewardship program

NIAGARA FALLS, Ontario—Ontario's tire stewardship program is about to change, probably drastically, thanks to the June 1. 2016, passage of the Waste-Free Ontario Act.

However, precisely how the program will change still is uncertain, because as of last month the Ontario Ministry of the Environment and Climate Change had not issued the final language covering the responsibilities of tire manufacturers under the new law.

“Building the Circular Economy” is the slogan the Ontario government has given the Waste-Free Ontario Act, which envisions a future in which all waste is recycled.

“Driving Towards the Circular Economy” was the theme of the 2016 Rubber Recycling Conference, held in Niagara Falls Oct. 5-6 and co-sponsored by the Tire and Rubber Association of Canada, Ontario Tire Stewardship and the Rubber Manufacturers Association.

The Waste-Free Ontario Act was a major topic at the conference, with speakers discussing the pending transition from an industry-funded scrap tire management system to a government-mandated one.

“Taking a close look at the end-of-life tire management here in North America, Europe and beyond, we think the industry professionals will come to the inevitable conclusion that the tire industry is well on its way to achieving a circular economy for end-of-life tires,” TRAC President Glenn Maid-ment said in his message to delegates in the Rubber Recycling Conference brochure.

However, the issue was emotional for Ontario scrap tire stakeholders at the conference, with some threatening a lawsuit if they find the final provisions of the law too punitive or unworkable.

In a message on the Environment Ministry website posted the day of the bill's passage, Ontario Environment Minister Glenn Murray said he would require waste producers to take full responsibility for their products and packaging.

“Harnessing the value of waste as a resource is part of this government's economic plan to build Ontario up and deliver on its No. 1 priority to grow the economy and create jobs,” Murray said.

Maidment said at the conference that the Waste-Free Ontario Act consists of two parts.

The first is the Resource Recovery and Circular Economy Act, which creates a Resource Productivity & Recovery Authority and establishes producer responsibilities, enforcement provisions and other regulations.

The second is the Waste Diversion Transition Act, which covers the transition from current stewardship laws to the RRCEA, he said.

The RRCEA, according to Maidment, defines “producers” as brand holders, alternate or additional persons with commercial connections to brand holders, and persons who import, wholesale, lease or retail the product.

Responsibilities of producers under the RRCEA include registration, waste reduction, collection, management, promotion and education, and reporting and recordkeeping, Maidment said.

“These legislative obligations, if taken literally, would put producers in the waste management business,” he said.

“It is understood that producers will be able to discharge their responsibility, if not their underlining legal obligations, in one of several ways—individually, or by joining a collective,” Maidment said.

“But before they join a collective, producers must first create it.”

The draft strategy for the Waste-Free Ontario Act outlines Ontario's vision of a circular economy, said John Armiento, manager of waste diversion for the Environment Ministry.

“The RRCEA enables the government to issue policy statements that provide direction on furthering the implementation of the provincial interest,” he said.

“These statements will be developed in consultation with partner ministries, municipalities and key stakeholders.”

Under the RRCEA, persons and groups with producer responsibility will be required to “have regard to” the provincial interest in a circular economy and “be consistent with” provincial policies when engaging in resource recovery and waste reduction, Armiento said.

Winding up the current Ontario stewardship program will be a major task in itself, never mind the new regulations, according to OTS Executive Director Andrew Horsman.

“OTS currently has commercial agreements in place with more than 7,000 collectors, 117 haulers, 29 processors and 15 recycled product manufacturers,” he said.

All these agreements include termination provisions with timelines for notice and final claims ranging from 90 to 180 days, according to Horsman.

Terminations will depend on either how specific the Environment Ministry's instructions are, or how much discretion OTS is allowed in developing a windup plan, he said.

A major consideration, according to Horsman, is the data OTS collected while it operated the Used Tires Program in Ontario.

“OTS will be developing an approach to manage this data through the transition to ensure the protection of this confidential business data,” he said.

“Whatever approach is used, it is imperative that the lessons learned through the operation of the program not be lost, undermining the future success of diversion efforts,” he said.

In its seven years of operation, OTS assembled a Used Tires Program staff whose knowledge and insight into the tire industry and tire markets is second to none, according to Horsman.

“Through the transition to producer responsibility, OTS needs to ensure it retains staff to be able to effectively operate the program up to the final day,” he said.