Amendments to Ontario Regulation 390/16 (Used Tires)
Bill or Act:
Waste Diversion Transition Act, 2016
Summary of Proposal:
On February 17, 2017, the Minister directed Ontario Tire Stewardship (OTS), the organization that operates the Used Tires program, to submit a plan to wind up the Used Tires program and then itself. OTS must submit its proposed wind up plan to the Resource Productivity and Recovery Authority (the Authority) by October 31, 2017 for review and approval, with the used tires waste diversion program to cease operation on December 31, 2018.
The Ministry is proposing amendments to the cost recovery provisions of the Used Tires regulation made under the WDTA to support the development and implementation of a comprehensive wind up plan of the Used Tires program. The proposed amendments to the Used Tires regulation, if approved, would:
• Remove steward fee setting methodology provisions;
• Continue steward fees at current amounts until the Authority approves a wind up plan that would include new fee rules to govern during the wind up period proposed by OTS; and,
• Remove reconciliation provisions as of the date the regulation comes into effect.
1) Removing Steward Fee Setting Provisions: The fee setting provisions in the Used Tires regulation set out the methodology that OTS is required to follow when determining monthly fees payable by stewards for each class of tire. The current fee setting methodology was intended for ongoing program operations and was not intended to address the wind up phase of the Used Tires program. The removal of the fee setting methodology provisions in the regulation enable OTS to develop appropriate fee rules to apply during the wind up period, including fee rules to address any program surpluses and deficits, prior to ceasing operations. OTS would include the proposed rules in its wind up plan submitted to the Authority for approval, which can be approved where consistent with the Minister's wind up direction.
2) Continuing Steward Fees at Current Amounts: The proposed regulation amendments would maintain all steward fees at the current rates set by OTS that came into effect on May 1, 2017 until the wind up plan is approved by the Authority and new fee rules would apply. The plan would include new fee rules proposed by the OTS for the duration of the Used Tires program, beginning when the plan and rules are approved by the Authority until the program ceases operations on December 31, 2018 as directed by the Minister. This amendment, if approved, would provide that fees are not raised before the proposed wind up plan and new fee rules are approved by the Authority.
3) Removing Annual Reconciliation Provisions: The reconciliation provisions of the Used Tires regulation are intended to reconcile any differences between the amount each steward pays in fees for their tires with the actual program costs for managing these tires for each calendar year. The removal of these reconciliation provisions will eliminate reconciliation payments under the regulation for any surplus or deficit generated after the changes to the regulation take effect. If removed, any amounts owing to or by stewards from the time the proposed regulation is made, if approved, would be addressed in the wind up plan.
June 5, 2017
Comments Due Date:
June 20, 2017