Cost Recovery for Used Tires Program
Regulation - Minister
Bill or Act:
Waste Diversion Act, 2002
Summary of Decision:
Ontario Tire Stewardship and Waste Diversion Ontario have conducted their own consultations and outreach with tire stewards and industrial consumers, including agriculture, forestry and mining sectors, on the cost recovery approach and implications.
Summary of Proposal:
O.Reg 84/03 (Used Tires) is being amended to specify how steward fees necessary to recover costs related to the operation of the Used Tires program are to be established. Stewards are brand owners or first importers of tires.
Under the Waste Diversion Act, 2002, stewards pay fees to not-for-profit industry funding organizations such as Ontario Tire Stewardship, who develop, implement and operate waste diversion programs for designated wastes.
Ontario's waste diversion programs play an important role in keeping waste out of our land and waterways. These industry-funded programs require industry-funded solutions to recover the necessary costs to meet their waste diversion targets.
The Used Tire program has been collecting and recycling used tires since 2009.
The purpose of these changes is to strengthen financial sustainability for the program by requiring that fees charged to stewards be based on actual costs to recycle tires and operate the program.
Program costs will be recovered in two parts: a per tire base fee and an end-of-year reconciliation. Base fees will be calculated by Ontario Tire Stewardship at the start of the year based on actual program costs from the previous calendar year, and will be paid by stewards monthly. Annual reconciliation will be calculated at the end of each calendar year; any amount owed by or to stewards must be paid within specific timeframes.
The changes to steward base fees come into effect on April 1, 2013.
Ministry of the Environment
Integrated Environmental Policy Division
Waste Management Policy Branch
135 St Clair Avenue West
Phone: (416) 314-9404
April 1, 2013