UPDATE - ON: New plan for hazardous waste surplus funds

On June 10, the CPA participated in a consultation hosted by the Resource Productivity & Recovery Authority (RPRA) on how surplus Municipal Hazardous or Special Waste (MHSW) program funds will be disbursed to industry steward organizations (ISOs).

While Ontario’s propane industry is overseen directly by Stewardship Ontario (SO), rather than an ISO, the principles and methodology used to determine MHSW residual program fund amounts and the way they will be allocated are important as the CPA looks to secure fair treatment for members from SO and RPRA during this process.

SO’s financing and program funds disbursement was guided by two key principles taken from the legislation, the Waste Diversion Act, and the Minister’s direction, specifically:

1. SO must allocate sufficient funds to the cover program wind-up costs; and
2. One material category cannot cross-subsidize the costs of another material category. For example, the oil filter category cannot use funds from the paints and coatings category to subsize their program wind-up costs.

Of primary interest to propane sector stewards is that the RPRA and SO adhere to the statement communicated during this consultation that all stewards will receive a share of the surplus funds available at the termination of the MHSW program, through fee reductions or transfer payments.

RPRA representatives indicated that the total amount of the fee reduction for each quarter and the number of quarters were based on projections for each material category, and that the fee reductions would be implemented through separate ISO agreements as applicable. Propane stewards should expect to see fee reductions on program invoices shortly after program wind-down commences.

During the June 10 consultation, RPRA forecasted a potential program transition delay of 18 months at an added cost of $2.24 million due to regulatory drafting hold-ups, shifted government pandemic priorities and revised ministerial direction. These funds would go to SO to continue program operations.

The CPA continues to engage with SO and the RPRA by providing input on MHSW program wind-up policy and timeline revisions to ensure the sector is provided adequate consideration throughout the program wind-up process. Please contact Ontario Government Relations Director, Marcelline Riddell, marcellineriddell@propane.ca for any questions about this program.