As previously advised, the government of Ontario recently released the final regulation related to the collection/management of Blue Box recyclables in the province. This new regulation includes some significant changes that will affect CHPTA members and all product suppliers in our industry.
The regulation includes a number of significant changes for producers including:
- Shifting the responsibility from a collective basis (i.e. every company had to join Stewardship Ontario as a steward) to a new model of individual producer responsibility or IPR.
- Individual Producer specific management targets over time.
- Producers in Ontario to have choice on how they comply and who (i.e. Producer Responsibility Organization or PRO) they work with to fulfill their compliance obligations.
While it’s just been passed, producers first compliance deadline is October 1, 2021 when you will need to (1) register and report your 2020 supply data with the Resource Productivity and Recovery Authority (RPRA), and (2) select and have an agreement with a Producer Responsibility Organization (PRO) to help you fulfill your obligations.
CHPTA will be arranging for Information Sessions for our members over the coming weeks to provide further background and details on the changes to the Province’s Blue Box Program and what producers need to do to fulfill their compliance obligations for October 1st as well as answer any questions you may have.
The first presentation will be conducted by RYSE Solutions Inc., Canada’s first multi-material Producer Responsibility Organization (PRO). Details and registration info will be made available over the coming weeks.
GFL Announces the Formation of the Resource Recovery Alliance and Agreement to Acquire the Canadian Stewardship Services Alliance
Meanwhile, on July 6, 2021, GFL Environmental Inc. announced that it has formed the Resource Recovery Alliance (“RRA”) in response to the Government of Ontario’s extended producer responsibility regulation requiring product and packaging producers (“producers”) to operate and fully finance Ontario’s Blue Box program. RRA will become a producer responsibility organization (“PRO”) under the new legislation and will be vertically integrated within GFL’s service offerings.
GFL also announced that RRA has entered into a definitive agreement to acquire Canadian Stewardship Services Alliance (“CSSA”). With the acquisition, RRA will be a comprehensive resource recovery and compliance solution for producers in North America, augmenting GFL’s existing capabilities in collection, sorting, processing, marketing, and reporting of blue box material in Ontario.
“Ontario has ushered in a new wave of extended producer responsibility in Canada, bringing increased responsibilities for producers, along with new opportunities to innovate and drive greater efficiencies and environmental outcomes,” said Patrick Dovigi, GFL founder and CEO, in a release.
“RRA will combine GFL’s extensive international footprint and depth of experience in North America’s resource recovery sector with CSSA’s leadership in compliance and administration of recycling programs across Canada. CSSA’s in-depth understanding of producers and the new and much more rigorous regulatory needs makes them an ideal partner for GFL in the creation of this PRO.”
Through RRA, producers will have the benefit of a proven, reliable, and experienced environmental services partner that can leverage economies of scale and efficiencies, positioning them to meet their responsibilities under the modern and consolidated Blue Box Program, which will phase in between 2023-25.
“RRA will bring the experience and expertise of GFL, CSSA, and producers together and provide consumer brands with sustainable solutions they can trust,” added Dovigi. “RRA will establish a Producer Alliance Council and directly involve producers in designing the new program. RRA will work collaboratively with the Council to identify, define, monitor, and meet the new and ambitious program expansion, standardization and recovery targets designated by the Government of Ontario.”
“This new model of resource recovery announced by the Government of Ontario will be a catalyst for change in the province, and in other jurisdictions across the country looking at extended producer responsibility programs,” said John Coyne, CSSA Executive Chair. “GFL’s coast-to-coast operations and diversified service offerings coupled with CSSA’s compliance and administration expertise presented an exemplary partnership opportunity. Together, we will support producers in meeting their new obligations in Ontario while also ensuring seamless transition and harmonization with new EPR regimes anywhere in Canada, and North America, in the future.”
GFL is North America’s fourth largest diversified environmental company, focused on providing customers with solutions that increase recovery of valuable resources, including composting of organic material, recovery of paper, packaging and construction waste, creation of renewable green energy and securing leading prices in selling commodities. In Ontario, GFL already has capabilities to recover much of Ontario’s blue box materials with five material recovery facilities, 15 transfer stations, and over 750 collection trucks. GFL has also designed, built, and currently operates several technologically advanced facilities in partnership with municipalities across the province.
The acquisition of CSSA, which is subject to customary closing conditions, is expected to close in the third quarter of 2021.
GFL, headquartered in Vaughan, Ontario, is the fourth largest diversified environmental services company in North America, providing a comprehensive line of non-hazardous solid waste management, infrastructure & soil remediation and liquid waste management services through its platform of facilities throughout Canada and in 27 states in the United States. Across its organization, GFL has a workforce of more than 15,000 employees.