Used Tire recycling in Ontario

1. Used Tire recycling in Ontario Municipal Waste Association’s Fall Workshop October 18, 2017 - Cobourg

2. Agenda • Current Municipal Program Concerns • Collection Compensation • Processing Capacity • New Public Administrator • Wind-up of the Used Tire Program • What does it mean to me • Development of New Used Tire Regulation • What should a new regulation look like

3. Collection Compensation • In return for receiving and collecting used tires on behalf of OTS, municipalities receive a Collection Allowance. Municipalities claim this allowance using approved OTS forms submitted periodically to OTS. • About a year ago OTS began withholding some Municipal Collection Allowance Claims on the basis that they were not supported by proper documentation. • Documentation standards in the Agreement and the Guidebook were impractical and unenforceable at most municipal collection sites (last names, license plates, addresses, phone numbers). • Continues to be over $100,000 withheld to municipalities. • RPWCO hired Jonathan Spencer from Greenslate Management Ltd. to develop Code of Practice to apply a reasonable standards of proof which appropriately balanced risk.

4. Proposed Code of Practice for Municipal Collection Allowances • A limit of 10 tires per car per drop-off at municipal collection sites without documentation or information requirements; • For drop offs in excess of 10 tires, residents must provide the municipality with their name, address, telephone number; • De minimis threshold of 50 tires per week, to a maximum of 2,600 tires per year, under which OTS will pay municipal collection allowance claims upon receipt; • Municipalities to engage in information outreach with area residents with information and materials supported by Ontario Tire Stewardship to inform residents of used tire collection practices;

5. Proposed Code of Practice for Municipal Collection Allowances • Municipalities to employ staff oversight of used tire drop offs (over de minimis) and ensure collection site staff have training in used tire collection procedures supported by training programs supplied by OTS; • Provide for alternative auditable measurements, such as vehicle counts, where major variances are highlighted; • Requirement that all used tire Collection sites operate under an approved Environmental Certificate of Approval (“ECA”) which clearly states the residential requirements of those using the collection site and restrictions on accepting commercial tires, where applicable; • In the event of disputes regarding tire weight, approved haulers shall provide validated weight scale tickets from the onsite facility or where scales are not present from a third-party weight scale.

6. AWAITING CONCLUSION • Meeting being planned between municipalities and the Public Administrator • Full report found here – http://www.municipalwaste.ca • Importance to follow the guideline • This type of reporting will be a growing area of attention

7. Processing capacity • Some concern from municipalities about getting tires collected • Issue caused by a number of contributing factors: • Processing management issues (i.e. fire, equipment failures) • Price of imported truck tires • Market intensity as program winds down • Changing market behaviours • Led to some periodic shut downs of processing due to overcapacity • OTS has stepped in and moved forward with a storage incentive and RFP for Processing capacity & Transportation • Any issues contact OTS

8. New Public Administrator • Pressures related to winding down OTS based on MOECC direction led to irreconcilable between the Board and the Authority. • OTS Board resigned and the Authority appointed Toronto lawyer E. Patrick Shea • Staffing at OTS will remain the same and no expected impacts on program • New feature of the WFOA

9. WIND-UP Of OTS • Wind-up Plan submitted to the Authority no later than October 31, 2017 • Will specify how OTS will initiate the wind- up process when the Plan is approved • Authority decision necessary by March 31, 2018 • OTS cease Program operations on December 31, 2018. • Wind-up Plan does deal with some issues of interest to municipalities: • Termination of OTS Incentive Payments; • TreadMarks Transition; • Data Release Proposal; • Wind up of OTS Communication & R& D Activities; • Stakeholder Communications Plan; • Coordination of Transition with Post OTS Stakeholders

10. Development of New Used Tire Regulation UNDER RRCEA • Importance as sets precedent for other regulations to come • Want to retain the positive elements associated with the current used tire program. • Ideally the regulation should achieve the following: • Capture the various types of tires and recognizes their unique attributes; • Is user-friendly, available across the province and accessible to all Ontarians; • Foster the development of green technology and a green economy for recycling and recycled products made from scrap tires; and • Address and prevent tire stockpiles. • Core Issues that need to addressed: • Defining designated product classes • Defining Responsible Persons • Defining responsibilities • Defining key definitions

11. RECOMMENDATIONS – CIRCULAR ECONOMY • Need to define recycling in a way that ensures recycled commodities are utilized in the manufacturing of new products and consistent with s. 69(2)(a)(ii) of the RRCEA • “Recycling” means the incorporation of processed materials from designated products into final products, whether for original or other purposes, to replace virgin equivalents of that material. This excludes disposal including landfilling, incineration, use as a fuel for energy recovery, applied as a landfill cover and defined applications to land. • Include smolded, extruded, injected, and calendered products, pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals, rubberized asphalt base stock to be used in applications other than pavement, poured in place and tile playground mats, running tracks, products that use recycled rubber as a substitute for other materials, such as plastic, blast mats, and other products, environmentally safe applications, or treatments determined to be appropriate. • Excludes tire-derived fuel, alternative daily cover, intermediate cover, erosion, or other landfill uses, crumb rubber as an intermediate product before purchase for incorporation into a final end use, tire-derived aggregate as an intermediate product before purchase for incorporation into a final end use, and rubber nugget for land application.

12. RECOMMENDATIONS – COLLECTION SYSTEM • Establish and maintain a collection system for the prescribed class(es) of tires for which they have responsibility with the following requirements: • must collect the designated prescribed material in the designated class in accordance with the prescribed requirements. • must collect the Person’s product free of charge to consumers at or within a reasonable proximity of where it is marketed within Ontario. • must meet a minimum Collection Rate of 90% for all prescribed class(es) of tires for which the person is responsiblecalculated based on the total mass of tire materials collected in that reporting year divided by the total mass of the rolling average of Tires marketed by the responsible person over the previous 3 years or an equivalent measure. • must ensure Tires collected are reflective of the geographic distribution of where they are marketed. • must ensure that all prescribed class(es) of tires for which the person is responsible and that are generated within Ontario are accepted through the collection system. • must ensure that the collection system is operated throughout the year. • must ensure that the prescribed services, facilities and activities for the collection of the material adhere to the RRCEA (s.68(3-5)).

13. RECOMMENDATIONS – CHAIN OF CUSTODY • Finally for the system to be robust you need a chain of custody. • This means all the parties involved in managing these materials should be required to register, record-keep and report with the Authority including: • Collectors • Haulers • Processors, and • Recycled Product Manufacturers

14. Thank You & QUESTIONS Peter Hargreave Policy Integrity Inc. phargreave@policyintegrity.ca (905)741-2171 www.policyintegrity.ca