Changing the Methodology for Calculating Fees to Charge Stewards Under the Blue Box Program Plan
Ontario Regulation 273/02
Regulation - LGIC
Bill or Act:
Waste Diversion Act, 2002
Summary of Decision:
The Minister has approved the changes to the methodology for calculating fees to charge stewards under the Blue Box Program Plan as submitted.
August 4, 2006
Summary of Proposal:
The Ministry requests public comment on a proposal developed by Stewardship Ontario, approved by Waste Diversion Ontario and submitted to the Minister for approval, to amend the Blue Box Program Plan by changing the methodology for calculating the fees to charge stewards.
The Waste Diversion Act, 2002, requires designated stewards of Blue Box waste to pay fees equal to 50 per cent of the total net costs of the Blue Box recycling system operated by municipalities and other costs of the program. The methodology used to calculate fees for obligated stewards is an integral part of the Blue Box Program Plan, which was first approved in December 2003.
Stewardship Ontario, which is the Industry Funding Organization for the Plan, has used virtually the same method to calculate fees since the Plan began in February 2004.
Stewardship Ontario decided that changes were needed for a variety of reasons, including some cited by stakeholders, and consequently established a Steering Committee to oversee a review of the needs and to give affected stakeholders a chance to assess the current approved methodology. This would allow consideration of whether changes or alternatives would better achieve the goals and policy objectives of the Plan and requirements of the Waste Diversion Act, 2002.
The methodology for calculating fees to be charged to Blue Box stewards involves several steps designed to allocate program costs fairly to all designated stewards who are obligated to pay fees.
The proposal recommends changes in the following areas:
1. Technical details in the calculations used (e.g. statistical methods).
2. Material categories (aggregating and disaggregating).
3. Weightings for net cost, recovery rate and equalization factors.
4. Other general recommendations.The stated intention of the changes is to reinforce the nexus between the fees charged to material groupings and the costs to manage these materials and their relative recycling performance.
Adam Ciulini, Team Leader
Waste Management Policy Branch
135 St. Clair Ave. W.
Toronto, Ontario, M4V 1P5
PHONE: (416) 314-4633 FAX: (416) 325-4437
January 1, 2007