Workshop Webcast

1
Workshop/ Webcast 1Revised (Phase 1 2) Waste
Electrical Electronic Equipment (WEEE) Program
Development

• February 4, 2009

Slide 1
2
Welcome!

• In person 90
• Webcast audience 150
• slides advance automatically
• enlarge slide
• email box for questions comments on left-hand
  side of webcast console
• use any time
• please include name affiliation
• Archived webcast available for 6 months

Slide 2
3
Todays Agenda (1)

• Consultation process
• Update on Phase 1 program implementation
• Key features of WEEE Program
• Introduction to Phase 2 WEEE
• Preliminary data projections
• Questions answers
• Break

Slide 3
4
Todays Agenda (2)

• Operational considerations
• Policy considerations
• How to provide feedback comments

Slide 4
5
Consolidated Program Plan

• Consolidate revised Phase 1 Program Plan with
  new Phase 2 program elements
• Benefits
• deliver single integrated program
• greater level of efficiency for stewards
  service providers
• Final deliverable revised WEEE Program Plan
• due to Minister of Environment July 10, 2009
• several interim deadlines to be met

Slide 5
6
2009 Plan Submission Timelines
Slide 6
7
Progress to Date

• OES meeting regularly with representatives from
  MOE WDO
• Stewards providing industry information
• OES awarded the contract to a market research
  firm on supply of Phase 2 electronics
  electrical equipment (EEE) data
• January 21, 2009 Document for Consultation
  posted to OES website for comment

See www.ontarioelectronicstewardship.ca
Slide 7
8
Objectives of Todays Consultation

• Update key stakeholders
• Encourage continued engagement in planning
  process
• Request feedback comments on program
• Options under consideration
• Provide preliminary planning information
• identify gaps in our current knowledge

Slide 8
9
Next Steps

• Friday, February 13 deadline for comments
• Workshop/Webcast 2 target end of March
• review revised Program Plan

Survey tool available to facilitate
comments www.ontarioelectronicstewardship.ca Su
rvey tool link details at end of this presentation
Slide 9
10
Update on Phase 1 Program Implementation

• Gordon DayOES Program Manager

Slide 10
11
Key Background Documents

• Waste Diversion Act (WDA) June 2002
• Ontario Regulation 393/04 December 2004
• WDO WEEE Study July 2005
• Ministers Program Request Letter June 11, 2007
• OES Report on Consultation to Support Development
  of WEEE Program Plan
• published March 31, 2008
• Phase 1 WEEE Program Plan
• approved by Minister of Environment July 9, 2008

Slide 11
12
Reminder

• EEE Electrical Electronic Equipment
• designated materials for which stewards must
  report pay fees to OES
• WEEE Waste Electrical Electronic Equipment
• waste EEE for which OES responsible to manage in
  accordance with specifications outlined in WEEE
  Program Plan

Slide 12
13
Background

• OES designated IFO for WEEE
• Electronic Product Stewardship Canada (EPSC)
  Retail Council of Canada (RCC) proposed
  development of IFO for WEEE.
• September 2007 OES incorporated
• October 2007 WDO approved OES as IFO for WEEE
• July 9, 2008 Minister of the Environment
  approved Phase 1 WEEE Program Plan

Slide 13
14
Alternatives to the OES WEEE Program

• WDA allows for establishment of separate Industry
  Stewardship Plans (ISP)
• sections 34(1) 34(2)
• after Program Plan approval
• with consideration of IFO fee-setting cycle
• ISP can achieve equal or better results
• procedures for ISPs available at www.wdo.ca

Youre in until youre out
Slide 14
15
Phase 1 Update (1)

• Launched online system for stewards service
  providers
• System allows
• prospective WEEE primary recyclers to register
  complete Electronic Recycling Standard (ERS)
  application procedure
• interested organizations to complete application
  to become OES approved collection site for WEEE
• companies to register if interested in providing
  additional reuse refurbishment services
• registration for Stewards of Phase 1 2 WEEE

Slide 15
16
Phase 1 Update (2)

• Re-launched OES website
• added content for different stakeholder groups
• Notified potential EEE stewards including
• manufacturers, assemblers, distributors,
  re-sellers, retailers importers
• Online registration system for Phase 1 stewards
• register as possible steward for Phase 2
• 102 companies already registered with OES as
  potential stewards
• Program commencement, April 1, 2009
• first monthly steward report due May, 2009

Slide 16
17
Phase 1 Update (3)

• Stewards will report pay fees monthly
• Remitters Agreement allows reporting payment on
  behalf of steward
• 3-way agreement between steward, remitter OES
• online click-wrap process
• does not transfer legal obligation steward
  remains legally obligated

Slide 17
18
Phase 1 Update (4)

• 101 organizations have applied to be WEEE
  collection sites
• represents 148 collection sites
• 55 of these organizations applied to be WEEE
  reuse refurbisher collection sites
• OES board agreed to refund cost of Environmental
  Management System (EMS) audit for non-commercial
  organizations

Slide 18
19
Phase 1 Update (5)

• 44 companies applied to be primary recyclers of
  end-of-life (EOL) WEEE
• 22 currently involved in WEEE primary processing
• Total of 11 companies have entered information in
  primary processing application
• 6 incomplete or not yet submitted applications
• 5 companies submitted 3 forwarded to SGS
  Systems Services (third-party site auditor)
• determine need for audit of primary /or
  downstream processors

Slide 19
20
Phase 1 Update (6)

• First WEEE-allocation competitive bid process for
  audited approved primary processors to take
  place in February
• application process remains open
• OES will contract with local regional
  transportation companies on 90 day bids
• Request for Expressions of Interest (REOI) for
  special event collection services is open
• organizations can still respond
• RFP for consolidation activities to be released
  this week

Slide 20
21
Phase 1 WEEE Information Sessions

• Steward information sessionlate February
• demonstrate reporting remitter process
• Municipal collection site information session
• date to be confirmed (TBC)
• Non-Municipal Collection Site Information Session
• date TBC

OES to notify stakeholders via Bits Bytes
email newsletter
Slide 21
22
Development of Revised (Phase 1 2) WEEE
Program Plan

• Jennifer Russell

Slide 22
23
Who is Affected by Revisions?

• Stewards/retailers/distributors/remitters
• Service Providers
• collection sites
• charitable organizations
• municipalities
• transporters consolidation warehousing
• reuse/ refurbishment organizations
• primary processors
• WEEE generators
• public
• industrial, commercial institutional (ICI)
  establishments

Slide 23
24
WEEE Program Rules - Stewards

• Designated stewards are
• Brand Owners-of all EEE
• resident in Ontario
• First Importers-of EEE for which they are first
  importer
• Franchisors-of EEE which are supplied within
  relevant franchise system
• Manufacturers (assemblers)-of unbranded EEE
• resident in Ontario

Phase 1 WEEE Program Plan available at
www.ontarioelectronicstewardship.ca
Slide 24
25
Responsibilities of EEE Stewards

• Register with OES
• Declare obligation for Phase 1
• Report on type quantity of EEE each steward
  supplies into the Ontario marketplace
• Pay fees, if applicable

Register at https//mtsreg.oesdatasystem.ca/login
.aspx or www.ontarioelectronicstewardship.ca
Slide 25
26
Role of WEEE Service Providers

• OES service providers include
• collection site operators
• reusers refurbishers
• transportation consolidation operators
• primary end-of-life (EOL) WEEE recyclers
• Register with OES apply to provide services

Register at https//mtsreg.oesdatasystem.ca/login
.aspx or www.ontarioelectronicstewardship.ca
Slide 26
27
OES Standards Guidelines

• Standards exist for all service providers
• OES Electronics Recycling Standard
• Appendix 9a
• OES Recycling Standard Guidance Document
• Appendix 9b
• OES Recycling Qualification Process
• Appendix 9c
• WEEE Reuse Refurbishment Standard
• Appendix 10a

Phase 1 WEEE Program Plan available at
www.ontarioelectronicstewardship.ca
Slide 27
28
Phase 2 WEEE

• Introduction

Slide 28
29
Phase 2 Obligated Materials

• Ministers Program Request Letter of June 11,
  2007
• 3 major categories from O. Reg. 393/04
• Information Technology Equipment (Schedule 2)
• Telecommunications Equipment (Schedule 3)
• Audio-Visual Equipment (Schedule 4)
• 24 designated WEEE materials for Phase 2
• added to 20 designated Phase 1 WEEE materials

Slide 29
30
Schedule 2 Information Technology
Slide 30
31
Schedule 3Telecommunications Equipment
Slide 31
32
Schedule 4 Audio Visual Equipment
Slide 32
33
Program Definitions of Obligated Materials

• Proposed material definitions
• specifies inclusions exclusions
• Key to legal authority for OES to require
  stewards to submit reports to pay fees

Refer to Handout 1 Material Definitions availab
le at consultation page of www.ontarioelectronics
tewardship.ca
Slide 33
34
Product Definitions Development

• OES identified definitions as critical first step
• Assessed function components of designated
  products
• Integrated with language criteria in other
  provinces
• recognized unique Ontario requirements
• Initial drafts reviewed with MOE WDO
• ensure conformance with intention of Minister
  Regulation
• Presented today for comment

Slide 34
35
Handout 1 Proposed Definitions
Slide 35
36
Proposed Definitions

• Please review proposed definitions
• Material definition language
• EEE inclusions
• EEE exclusions
• Questions or comments welcome during QA
• Submit comments suggestions online

OES Consultation Survey Tool www.ontarioelectronic
stewardship.ca
Slide 36
37
Materials Grouped for Reporting Fee-Setting
(1)
Phase 1 category modified to include Phase 2 EEE
Slide 37
38
Materials Grouped for Reporting Fee-Setting (2)

• Please note
• Modified 2 Categories from Phase 1 Program Plan
• Computer Peripherals Printing Imaging Devices
  categories modified for Phase 2 EEE
• Differentiated sub-categories within material
  groupings
• 2 subcategories of Printing Imaging Devices
• 4 subcategories of Image, Audio Video Players
  Recorders
• Priority to harmonize reporting categories with
  those of other provinces

Slide 38
39
Constant WEEE Program Elements

• Elements from Phase 1 that will not be changing
• MOE enforcement
• Steward reporting schedule
• Definition of Stewards of EEE
• Phase 1 Product Definitions
• Desktop Computers
• Portable Computers
• Monitors
• Televisions

Please note that this list is not exclusive
Slide 39
40
Phase 2 Preliminary Data Projections
Slide 40
41
The Big Picture

• Revised (Phase 1 2) WEEE Program Plan will
  incorporate data on Phase 1 2 products
• Material categories
• maintain some material categories
• modify some material categories
• introduce new material categories
• Increase overall material managed under WEEE
  program

Slide 41
42
Phase 1 2 WEEE Under Regulation 393/04
as per WDO WEEE Study Report results (2005)
data do not include copiers (Phase 2)
Slide 42
43
Purpose of Gathering Data

• Required to set targets for
• accessibility
• collection
• recycling
• Establish performance benchmarks such as
• total volumes collected
• total volumes reused/refurbished
• total volumes recycled
• total costs
• others

Slide 43
44
Compiling Data

• Data available to date
• updated estimates from WEEE Study (WDO, 2005)
• Inter-Provincial Phase 2 Study (commissioned by
  SWEEP, ACES ESABC)
• www.acestewardship.ca/pdf/ACES_Phase11_EHF_Report.
  pdf
• Electro-Federation of Canada
• industry survey responses re capacity

Slide 44
45
Seeking Additional Data

• Other potential sources efforts
• soliciting input from stewards industry
• purchasing supplied for use data from commercial
  market research companies

Upload information /or data files OES
Consultation Survey Tool www.ontarioelectronicstew
ardship.ca
Note comments will be included as part of
official record but not attributed
Slide 45
46
Projected Quantities of WEEE

• WEEE Discard Model
• Used in Phase 1 plan by other provincial
  programs
• Predictive tool to estimate when EEE products
  supplied become WEEE available for collection
  by OES
• Model inputs include
• historic quantities supplied into Ontario
• assumptions on first life reuse/storage
• historic product weights

Slide 46
47
Preliminary Data

• Broken into 5 Material Groupings for Phase 2
• Sub-categories identified within Material
  Groupings

Refer to Handout 2 Preliminary Data at
consultation page of www.ontarioelectronicsteward
ship.ca
Slide 47
48
Handout 2 Preliminary Data
Slide 48
49
Data on EEE Supplied into Ontario

• Supplied into Ontario - EEE (products)
• Current status
• no data on Aftermarket Vehicle subcategory
• replacement audio/video players recorders for
  post-sale installation in vehicles
• data do not distinguish desktop vs.
  floor-standing model for Printing Imaging
  Devices
• data on business-to-business sales distribution
  networks have been unavailable

Upload information /or data files via OES
Consultation Survey Tool www.ontarioelectronicstew
ardship.ca
Slide 49
50
Preliminary Supplied into Ontario Printing
Imaging Devices
Tonnes
Slide 50
51
Preliminary Supplied into Ontario Image, Audio
Video Players Recorders
Tonnes
Slide 51
52
Preliminary Supplied into Ontario Cellular
Phones, PDAs Pagers
Tonnes
Slide 52
53
Preliminary Supplied into Ontario Telephones
Telephone Accessories
Tonnes
Slide 53
54
Preliminary Supplied into Ontario Computer
Peripherals (Phase 2 Only)
Tonnes
Slide 54
55
Data on WEEE Available for Collection

• Available for Collection WEEE
• generators wish to dispose
• Limited data on lifespans of certain Phase 2 EEE
  affecting Available for Collection calculation

Upload information and/or data files via OES
Consultation Survey Tool www.ontarioelectronicstew
ardship.ca
Slide 55
56
Preliminary Ontario Available for Collection
-Printing Imaging Devices
Tonnes
Slide 56
57
Preliminary Ontario Available for Collection
-Image, Audio Video Players Recorders
Tonnes
Slide 57
58
Preliminary Ontario Available for Collection
-Cellular Phones, PDAs Pagers
Tonnes
Slide 58
59
Preliminary Ontario Available for Collection
-Telephones Telephone Accessories
Tonnes
Slide 59
60
Preliminary Ontario Available for Collection
-Computer Peripherals (Phase 2 Only)
Tonnes
Slide 60
61
Request for Feedback

• OES seeks your feedback insight on preliminary
  data projections for Phase 2 materials

Provide comments upload information /or data
files via OES Consultation Survey
Tool www.ontarioelectronicstewardship.ca
Slide 61
62
Questions?
Slide 62
63
Break

• BREAK
• (15 20 minutes)

Slide 63
64
Welcome Back!
Slide 64
65
Next Topics

• Operations considerations
• Policy considerations
• How to provide feedback comments

Slide 65
66
Implications for Phase 1 Program Operations

• Gordon DayOES Program Manager

Slide 66
67
Facilitating Opportunities for Reuse

• Program requires 3Rs (reduce, reuse, recycle)
  approach
• Phase 2 brings new opportunities to increase
  reuse /or refurbishment
• cell phones copiers WEEE components etc.
• reduced privacy concerns
• Partnerships with existing reuse/refurbishment
  programs activities to increase access
  capture of WEEE
• Creating direct reuse/refurbishment channels

Slide 67
68
Investigating Specific Reuse Initiatives

• Electronic Materials Exchange Network
• online generator sale/exchange of WEEE
• already happening in certain regions of Ontario
• Empowering generators
• web-based search tool allows generators to
  direct WEEE for desired end-use (reuse vs.
  recycling vs. destruction)
• Component reuse
• rechargeable batteries laptops, cell phones, etc.

Slide 72
69
Reuse, Refurbishment Processing
CapacityPhases 1 2

• Survey distributed to industry reuse/refurbishers
  processors (closed January 2009)
• 12 companies responded 15 different sites
• Preliminary assessment of capacity for Phase 2
  WEEE reuse/ refurbishment processing in
  Ontario 88,500 tonnes

Consultation Survey Tool www.ontarioelectronicstew
ardship.ca
Slide 68
70
New Collection Opportunities

• Handheld WEEE
• smaller easier for generators to dispose
  easier for OES to collect
• target key generators schools/offices, etc.
• more feasible for interested commercial/retailers
• increase number of access/collection points
• Increased number of collection channels
• improved accessibility for generators

Slide 69
71
Review Collection Site Requirements

• New materials create new options for
• modifying sorting packaging requirements
• packaging specifications
• transport containers options
• requirements at depot different than public
  drop-off
• municipal vs. commercial/retail needs

Slide 70
72
Review Consolidation Process

• Assess optimum conditions for directing WEEE
  through consolidation
• Investigate alternatives to consolidation
• by region, by material grouping
• Assess potential to maximize efficiencies within
  existing consolidation process
• Evaluate opportunities for direct-shipment
  channel options
• ICI generators ship direct to processor
• public generators mail WEEE direct to processor

Slide 71
73
WEEE Allocation Process

• Program plan included a comprehensive allocation
  process for collected WEEE
• Objectives of process include
• meet targets in a manner to maximize
  environmental outcomes and in a cost effective
  manner
• WEEE processors must meet or exceed the ERS
• contract with primary processors in a fair and
  transparent system that supports diversity and
  ensures sufficient overall processing capacity
• foster continuous improvement in contracted
  processors environmental and economic performance.

Slide 73
74
Operational Considerations on Allocation Process

• Timing of bids contract timing
• how does Phase 2 impact timing of bids?
• Bid evaluation criteria
• should they be modified for Phase 2 materials?
• Changes how materials are collected and handled
  may impact allocation process
• Continued opportunities for new entrants
• must meet the ERS requirements

Slide 74
75
Request for Feedback

• OES seeks your feedback on the implications for
  Phase 1 Program

Provide comments upload information and/or data
files via OES Consultation Survey
Tool www.ontarioelectronicstewardship.ca
Slide 75
76
Policy Considerations for the Revised WEEE
Program Plan

• Derek Stephenson

Slide 76
77
First Program to Add Phase 2 materials

• Simultaneously modify Phase 1 plan add new
  materials
• Requires modifications to
• material groupings
• incentive payments
• fee setting methodology
• governance
• New issues to consider
• materials managed under multiple programs
• promotion education strategies
• determining commencement date

Slide 77
78
Material Groupings

• Revised material groupings for fee-setting

Slide 78
79
Is 165/tonne Incentive Payment Still Valid?

• Radically different economic conditions
• commodity prices
• fuel prices
• New mix of materials
• new sizes shapes
• material composition different
• New collection strategies required?
• new channels for small WEEE?
• shipping from generator directly to processor?

Slide 79
80
Fee-Setting Methodology (1)-Guiding Principles

• Existing
• no cross-subsidization of management costs across
  WEEE groups
• steward fees based on supplied EEE units
• fee-setting begins with cost to manage WEEE
  groups
• material-specific fees may be modified
• common shared costs assessed in fair
  transparent manner
• New
• cost of obsolete WEEE assessed on successive
  product technology

Slide 80
81
Cost of Obsolete WEEE

• Obsolete WEEE technologies no longer supplied
  (e.g. 8-track player)
• Successive product technology-cost to manage
  obsolete WEEE applied to steward fees for
  obligated device that follows/replaces it

Illustrative Example
Slide 81
82
Fee-Setting Methodology (2)

• Existing provisions
• OES board may consider applying factors to
  achieve policy objectives
• add appropriate share of any shortfall or surplus
• should there be greater contingency allowance?
• New considerations
• how to recover appropriate share of costs of
  Phase 1 efforts that benefit Phase 2
• what to include (plan development, RD)?
• how to allocate (relative to total fees, number
  of stewards)?
• how to modify fee-setting
• build into following year fees?

Slide 82
83
Governance of OES

• Existing plan proposed re-evaluation of
  governance structure after initial steward
  registration
• Governance proposal to be included with revised
  program plan
• proposal for regulation governing composition
  appointment of Board of Directors
• to reflect composition of registered stewards
• IFO governance issues being examined as part of
  Waste Diversion Act (WDA) review

Slide 83
84
Materials Managed Under Multiple Programs

• Batteries, fluorescent bulbs tubes designated
  under MHSW program
• ERS Guidance Document requires removal prior to
  mechanical processing
• Legal obligation remains with designated IFO
  (Stewardship Ontario)
• Options to consider
• WEEE processors register as MHSW collection sites
• reciprocal agreement between IFOs
• steward reporting
• accounting for management costs

Slide 84
85
Promotion Education Strategies

• 3 approved WDO programs
• Blue Box, MHSW WEEE
• tires program under development
• All programs target overlapping consumers/users
• potential for common return sites
• Need for greater coordination efficiency in
  delivery strategies
• program goals objectives
• where to take designated materials
• OES Stewardship Ontario evaluating common Do
  What You Can brand shared platforms

Slide 85
86
What Will be Revised Plan Commencement Date?

• Revised plan to be submitted July 2009
• 24 weeks to post for comment
• 3090 day comment period
• MOE review approval time unknown
• Revised plan approval
• earliest late September 2009?
• possibly December 2009 or later?
• Revised Phase 1 fees required April 1 2010 if
  revised plan not approved or approval delayed
• when to begin Phase 1 Year 2 fee setting?

Slide 86
87
Consultation Survey Tool

• New method for submitting feedback comments on
  issues in
• workshop/ webcast
• Document for Consultation
• Access survey tool at OES website (see box at
  bottom)
• www.ontarioelectronicstewardship.ca

Slide 87
88
Completing the Survey

• First page outlines survey submission process,
  tips, other information

Slide 88
89
Questions?
Slide 89
90
We Want to Hear from You!

• Provide your comments to OES
• include comments questions
• upload files documents
• help OES obtain industry data information
• all submissions will be entered as part of record
  but will be unattributed

OES Consultation Survey Tool www.ontarioelectronic
stewardship.ca
Slide 90
91
Reminder

• Comments feedback required by February 13
• Document for Consultation
• Workshop/Webcast 1 (today)
• Post draft Preliminary Plan March 16
• End of March Workshop/Webcast 2

Slide 91
92
Thank you!
Slide 92