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									            Ontario Electronic Stewardship



               Workshop/Webcast # 2

            Waste Electronic and Electrical
                Equipment (WEEE)

          Program Plan Development Process
                    October 12, 2007



Slide 1                                       OES
                     Today‘s Agenda (1)


    ●     Consultation Process
    ●     Definition of Obligated Materials
    ●     Designated Stewards
    ●     Preliminary Projections Phase 1
    ●     Current WEEE Diversion Activities
    ●     Collection & Diversion Options
    ●     Questions & Answers
    ●     Break


Slide 2                                       OES
                     Today‘s Agenda (2)


    ●     Recycling Vendor Qualification Requirements
    ●     Key Program Elements
    ●     Questions & Answers
    ●     Summary
    ●     Adjourn




Slide 3                                                 OES
                              Welcome


    ●     In person ~70
    ●     Webcast audience 80+
          – 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 4                                             OES
                     A Caution on Language


    ●     New product sales against which OES will assess fees:
          – information technology equipment
          – audio-visual equipment
          – telecommunications
    ●     Waste Electronic & Electrical Equipment:
          – WEEE materials that will be managed under OES WEEE
            Program Plan
          – end-of-life (EOL) refers to recycling of WEEE with no
            reuse
          – reuse refers to refurbished equipment for continued life



Slide 5                                                          OES
          Ontario Electronic Stewardship




              Consultation Process




Slide 6                                    OES
                       WEEE Timelines (1)


    ●     WEEE designated under the Waste Diversion Act on
          December 14, 2004
          – Minister requested WDO Study: state of WEEE
            management in Ontario
          – WEEE Study submitted to Minister July 8, 2005
    ●     June 11, 2007—Minister provided Final WEEE Program
          Request letter directing WDO to:
          – develop a WEEE Program in phases
              beginning with Phase 1 materials
              Phase 2 submitted one year after approval of Phase 1
          – establish IFO including industry stewards affected by
            WEEE Program
          – submit Phase 1 WEEE Program by February 1, 2008

Slide 7                                                               OES
                     WEEE Timelines (2)


    ●     June 26 – Workshop #1 held by WDO
    ●     July – Electronics Products Stewardship Canada
          & Retail Council of Canada jointly propose to
          develop WEEE program plan through creation of
          new Industry Funding Organization (IFO)
          – Ontario Electronic Stewardship (OES)
    ●     September 20 – OES incorporated
    ●     September 28 – CSR retained to support OES
          WEEE Program Plan development
    ●     Today – Workshop # 2

Slide 8                                              OES
                  Where We Are in the Process


    ●     Series of meetings have taken place with:
          –   Ministry of the Environment
          –   reuse organizations
          –   potential EOL equipment processors
          –   municipalities & other potential collectors
          –   OES Board of Directors
    ●     Agreement reached with Alberta Recycling
          Management Authority to provide EEE sales &
          WEEE recovery data
    ●     Website: www.ontarioelectronicsstewardship.ca

Slide 9                                                     OES
              Request to the WDO for Extension


    ●   Completing OES incorporation & establishing functional
        organization from scratch proved challenging
    ●   Establishing solid foundation essential
    ●   Time remaining to complete extensive consultation
        program & detailed program planning short
    ●   OES proposing WDO request extension to February 1
        plan submission date
    ●   Final decision rests with new Minister of the Environment
    ●   Dates which follow are based upon February 1 date
           – these may change if Minister approves extension



Slide 10                                                       OES
                   Objectives of this Meeting


    ●   Update key stakeholders
    ●   Encourage your continued engagement in
        planning process
    ●   Provide preliminary planning information
           – also identify gaps in our current knowledge
    ●   Your comments & questions are welcome
        throughout plan development process




Slide 11                                                   OES
                      Next Steps (1)


    ●   Written comments can be submitted any time to
        comments@ontarioelectronicsstewardship.ca
    ●   Post draft preliminary program plan for
        consultation November 8
    ●   Workshop #3 November 20
    ●   Written comments by November 30
    ●   Post revised program plan December 3




Slide 12                                           OES
                      Next Steps (2)


    ●   Waste Diversion Ontario (WDO) reviews draft
        preliminary plan December 12
    ●   Draft final program plan posted January 14
    ●   WDO reviews draft final plan January 23
    ●   WDO submits to Minister by February 1




Slide 13                                              OES
           Ontario Electronic Stewardship




           Definition of Obligated Materials




Slide 14                                       OES
                   EEE Products Designated


    ●   Ontario Regulation 393/04
           – 7 schedules
           – 202 products in total
           – some products actively recovered (e.g. white
             goods)
    ●   Program Request letter specifies a two phased
        approach
           – Phase 1 addresses 20 products
           – Phase 2 addresses 24 products


Slide 15                                                    OES
                  Two Phased Program


    ●   Program plan for Phase 1 materials due
        February 1, 2008
    ●   List of Phase 2 products in Program Request
        Letter
    ●   Phase 2 proposal to be received within one year
        after approval of Phase 1
    ●   Remaining products will be addressed in future
        request letters
    ●   WDO encouraged to submit recommendations

Slide 16                                            OES
                 Product Definitions for
              Development of Program Plan

    ●   Key to legal authority of OES to require stewards
        to submit reports & levy fees
    ●   Handout #1 provides draft definitions for
        consultation
    ●   Products included & excluded from program will
        be further detailed in program plan




Slide 17                                             OES
           How Product Definitions Developed


    OES identified product definitions as critical first step:

    1) ensure definitions conform with regulation & Minister
       letter
           - initial drafts reviewed with MOE
    2) ensure complex & convergent technologies are
       adequately addressed in definitions
    3) desire to harmonize with product definitions & criteria
       used in existing programs in other provinces,
       recognizing unique Ontario requirements
    4) presented at workshop for public comment
Slide 18                                                         OES
                      Key Highlights & Issues


    ●   Definitions similar to those used in other provinces
           – computer peripherals defined/treated differently in other
             programs
    ●   Definitions organized into ―product groupings‖ to address
        challenges in request letter
           – e.g. micro & mini computer
    ●   Goal: to have clear definitions to identify which products
        are included & for which OES has authority to assess
        fees
           – and those for which it cannot



Slide 19                                                             OES
           Ontario Electronic Stewardship




               Designated Stewards




Slide 20                                    OES
              Minister‘s Program Request Letter

    6. Funding Rules, for ‗phase 1‘ of ‗phase one‘ of
      the ‗phased-in‘ schedule:
           a) Consistent with WDA* principles, the proposed
             funding rules should designate and define as
             stewards under the program, brand owners, first
             importers, and/or assemblers of non-branded
             products for sale and use in Ontario that result in
             WEEE. Such products shall be referred to as
             ―Electrical and Electronic Equipment‖;
  * Waste Diversion Act, 2002
  ** Addendum to the Minister’s Request for a waste diversion program for Waste
     Electrical and Electronic Equipment

Slide 21                                                                   OES
           Issues Raised by Steward Designation


    ●   Assemblers new class of steward in Ontario
           – raises issues of notification, registration, tracking
             of ―white box‖ producers
           – potential issues with reuse organizations who
             may assemble
    ●   Internet sales are ―for use in Ontario‖
           – how to obligate & enforce against producers who
             do not have a presence Ontario?



Slide 22                                                       OES
                         Rules & Notification


    ●   Under WDA, steward must be:
           – notified & provided copy of Rules
    ●   OES if designated as IFO can make Rules to:
           –   designate steward
           –   define EEE
           –   establish fee rates
           –   establish commencement date & data year
           –   establish reporting requirements & deadlines



Slide 23                                                      OES
           Ontario Electronic Stewardship




           Phase 1 Preliminary Projections




Slide 24                                     OES
                       Quantity Estimates


    ●   Data we have to date:
           – unit sales by product from ARMA for 3 years
           – recovery data by product from ARMA for 3 years
           – average unit weights as reported by ARMA for
             each category
           – Ontario municipal WEEE collection data




Slide 25                                                OES
                                                         Projected Ontario Sales in Units

                                                     7
           EEE Projected Sales (Millions of units)



                                                     6


                                                     5


                                                     4


                                                     3


                                                     2
                                                                                                   Printers
                                                                                                   Desktops and Portables
                                                     1
                                                                                                   Monitors
                                                                                                   Televisions
                                                     0
                                                               Year 1               Year 2                Year 3
                                                     Ontario projections are based on three years of ARMA data,
Slide 26
                                                     adjusted for population & anticipated changes in product sales
                                                                                                                            OES
     Projected Ontario Phase 1 WEEE Recovery in Kg

                                                  45
           EEE Recovery (Millions of kilograms)


                                                  40

                                                  35

                                                  30

                                                  25

                                                  20

                                                  15

                                                  10
                                                              ?
                                                   5

                                                   0
                                                       Ontario Baseline   Year 1        Year 2          Year 3
                                                  Ontario baseline from 2006 WDO Datacall
                                                  Projections are based on three years of ARMA data, adjusted
Slide 27                                          for population                                                 OES
           Limitations of Currently Available Data


    ●   No data on non-municipal WEEE diversion
           – larger volumes than municipal
           – REOI with processors will be used to estimate
    ●   No reliable data for peripheral products
           – options include: purchase data; survey stewards
    ●   Data does not distinguish by technology type for
        monitors & televisions
    ●   Average unit weights provided


Slide 28                                                     OES
           Ontario Electronic Stewardship




           Current WEEE Diversion Activity



                       Joe Hall



Slide 29                                     OES
                       Outline


    ●   2005 WDO WEEE Study
    ●   2006 WDO municipal datacall
    ●   2007 AMRC WEEE Waste Composition &
        Cost Study
    ●   Municipal infrastructure
    ●   Other WEEE collection
    ●   Current recycling infrastructure




Slide 30                                     OES
                    2005 WDO WEEE Study


    The 2005 study provided background information
    for future WEEE IFO:
    ● Program funding
    ● EEE Material Flow & WEEE Infrastructure
           – quantities sold into Ontario market
           – discard quantities
           – reuse, collection & processing infrastructure
    ●   EEE Industry in Ontario
           – flow from manufacturer to consumer end users

Slide 31                                                     OES
                 2006 WDO Municipal Datacall


    ●   ~86 Ontario municipalities operate WEEE collection
        programs
           – 4,294 million households
           – primarily depot collected
    ●   Estimated ~4,000 tonnes of Phase 1
    ●   How is WEEE program financed?
           – 19 programs require residents to pay drop-off fee
           – 33 programs provide free residential depot service (funded
             via general municipal revenue)
           – 31 programs do both: provide free service for some items
             & payment of a fee for others


Slide 32                                                           OES
                      2007 AMRC Study


    WEEE Composition & Cost Study
           – understand municipal costs for Phase 1
           – allocation of costs
           – composition snapshot for WEEE shipped to EOL
             processor or reuser
           – study to be complete in November




Slide 33                                              OES
                  Municipal Infrastructure


    ●   Often in conjunction with MHSW program
    ●   Generally permanent depots at landfill sites or
        transfer stations
    ●   Some operators based on event days (with
        MHSW)
    ●   Mixed operations: roll off bins, gaylords or
        palletized
    ●   Sporadic locations across province



Slide 34                                              OES
                        Other WEEE Collection


           Voluntary Programs
           – municipal programs
           – IC&I generators direct to reuse & recycling
              • off lease, asset management, Crown assets
           – original equipment manufacturers
              • service equipment
              • take back programs
           – Voluntary retail ‗Take Back‘ programs
           – reuse organizations
              • not for profit & for profit



Slide 35                                                    OES
                Current Recycling Infrastructure


    ●   2005 WEEE study identified:
           – 2005 processing capacity of 179,000 tonnes for all
             materials
           – REOI process will update information
    ●   WEEE processing can be managed outside Ontario
           – growing WEEE processing capacity in North America
    ●   Processing & downstream vendors recover:
           – metals (ferrous, aluminum, copper, lead, etc.)
           – glass
           – plastics



Slide 36                                                          OES
                                   Issues


    ●   OES will initiate Request for Expression of Interest
        (REOI) with potential end-of-life (EOL) processors
           – to determine total quantity of WEEE currently handled &
             process capacity
    ●   Vendor qualification standard requirements will
           – assess environment, health & safety practices of both
             primary & downstream EEE processors to determine
             which processors will be considered for use under
             program
           – not all processors interested in handling material or
             capable of meeting qualification standard will be used



Slide 37                                                              OES
           Ontario Electronic Stewardship




           Collection & Diversion Options

                Conceptual Outline




Slide 38                                    OES
                   Proposed WEEE Flow




     WEEE         Reuse Organization
                                       Approved
   Generators                                      Downstream
                                         EOL
   -Residential                                    Processors
                                       Processor
      -IC&I        Collection Agent




Slide 39                                                OES
                           Generators


    ●   Include residential & industrial, commercial &
        institutional (IC&I) sources of WEEE
    ●   Provincial P&E to promote informed choices
        about options:
           – reuse or
           – approved collection agent/EOL processor
    ●   Privacy concerns critical for business &
        residents
    ●   Special handling requirements for large volume
        IC&I generators

Slide 40                                                 OES
                    Reuse Organizations


    ●   Reuse organizations to be OES service providers similar
        to recyclers
    ●   Reusers to work with OES to develop qualification
        standards for environment, health & safety practices
        associated with reuse operations
    ●   Reusers to track, monitor & report quantities reused /
        recycled under agreement with OES
    ●   Recycling of residual materials from reuse to be
        managed by approved EOL processors & funded by
        OES



Slide 41                                                   OES
                    Collection Agents


    ●   Voluntary service provider to OES
    ●   Service WEEE generators
    ●   Operates to defined operational standards
    ●   Track, monitor & report
    ●   Package WEEE for transport to approved
        consolidation or EOL processor
    ●   Agreement with OES for eligible costs




Slide 42                                            OES
             Transportation & Consolidation


    ●   Contracted service providers to OES
    ●   Transports and/or possibly stores WEEE
    ●   Regional consolidation as necessary
    ●   Delivers WEEE to EOL processors
    ●   Operate to defined operational standards
    ●   Track, monitor & report




Slide 43                                           OES
                       Primary EOL Processors


    ●   Contracted service provider to OES; selected via
           –   REOI first step
           –   RFQ second step
           –   Vendor Qualification Audit third step
           –   competitive selection process based on processing,
               environmental, economic & other factors
    ●   One or more EOL primary processors may be selected
        to process program material
    ●   Subject to regular audits as part of Vendor Qualification
        Process & must maintain conformance with standard
    ●   Must ensure downstream processors meet audit &
        program requirements

Slide 44                                                            OES
                    Downstream Processors


    ●   Receive selected processed materials from
        Primary Processors
           – metal, glass, plastic
           – other residuals that require proper handling
    ●   Subject to regular audits as part of Vendor
        Qualification Process & must maintain
        conformance with standard




Slide 45                                                    OES
               Non 3Rs Management Options –
           Incineration, Energy Recovery & Landfill

    ●   WDA specifies programs ―shall not promote‖
        burning or landfill unless 3Rs options ―not
        available or not technically feasible‖
    ●   Some Phase 1 products currently being
        managed through burning & landfilling
    ●   Challenges in moving from non-3Rs to 3Rs
        management




Slide 46                                              OES
            Ontario Electronic Stewardship




                   Questions & Answers

                           On webcast:
           use question/comment box, left of your screen




Slide 47                                                   OES
           Ontario Electronic Stewardship




                       Break




Slide 48                                    OES
           Ontario Electronic Stewardship




           Recycling Vendor Qualification
                   Requirements




Slide 49                                    OES
                  Why a Recycling Vendor
                  Qualification Program? (1)

    ●   Requirement of June 12/07 WEEE Program
        Request letter to WDO
           – item 7 in addendum
    ●   Ensure WEEE is recycled in a responsible &
        environmentally sound manner




Slide 50                                             OES
                   Why a Recycling Vendor
                   Qualification Program? (2)

    ●   Proper recycling will be critical in:
           – controlling unnecessary environmental, health &
             safety risks
           – securing WDO & Minister approval of plan
           – gaining public support for WEEE program
           – achieving environmental improvements
           – ensuring all applicable regulatory requirements
             are satisfied
           – reducing risk to all WEEE stewards &
             environment

Slide 51                                                  OES
                 What are the Challenges? (1)


    ●   No clear operating ‗standards‘ for WEEE
        recycling industry in Canada
           – EPSC currently implementing standard in existing
             WEEE programs in Canada
    ●   Some WEEE recycling infrastructure still in early
        development stage
    ●   WEEE is being processed by wide variety of
        companies, from very small enterprises to large
        multi-nationals


Slide 52                                                 OES
              What are the Challenges? (2)


    ●   Recyclers must be aware of & in compliance
        with provincial, federal & international
        requirements for occupational health & safety,
        transportation & export, & environmental
        management
    ●   Need to design vendor standards to help
        processors operate in Canada -- avoiding need
        to export to developing countries



Slide 53                                            OES
        Recycling Standards: EPSC Approach (1)


    ●   Established Electronics Recycling Standard
        to define environmentally-sound recycling
        criteria that recyclers audited against
           – developed in consultation with manufacturers,
             recyclers & ENGOs
           – requirements for environmental management,
             occupational health & safety & downstream
             accountability of waste with prohibition on
             hazardous materials going to non-OECD
             countries

Slide 54                                                     OES
        Recycling Standards: EPSC Approach (2)


    ●   Guidance Document provides direction on key
        elements of environmentally-sound WEEE recycling
        process
    ●   Recyclers & downstream processors audited by third-
        party to determine conformance to standard
    ●   Process has been adopted in WEEE programs in BC,
        AB & SK
    ●   Evergreen document will improve with operational
        feedback from Ontario & other provincial programs
    ●   http://www.epsc.ca/rvqp.html



Slide 55                                                  OES
              Recycler Qualification Program


           What the process is trying to prevent …




           Photos from “Exporting Harm: The High-Tech Trashing of Asia.”

Slide 56   Prepared by Basel Action Network & Silicon Valley Toxics Coalition, February 25, 2002.
                                                                                                    OES
           Ontario Electronic Stewardship




              Key Program Elements




Slide 57                                    OES
                    Mandatory Requirements for
                        Approvable Plan

    ●   Targets
           – accessibility, collection, diversion
    ●   Sound basis for calculating costs & fee setting
           –   promotion & education (P&E)
           –   operating costs
           –   incentives
           –   tracking & auditing
           –   research & development
           –   enforcement
           –   OES & WDO administration
    ●   Plans for incorporation of Phase 2 materials


Slide 58                                                  OES
                          Diversion Targets


    ●   Minister‘s letter specified plan must include collection &
        diversion targets for each Phase 1 material for 5 years
           – take into account reduction of total quantity of WEEE
             available for collection as result of program
    ●   Further clarification from MOE provided to WDO
        regarding targets for:
           – reduction for each WEEE item for first 5 years
           – reuse for each WEEE item for first 5 years
           – recycling each WEEE item for first 5 years




Slide 59                                                             OES
                         Operating Costs


    ●   Designated stewards responsible for program
        costs for:
           – collecting, storing, transporting, processing &
             marketing of all WEEE collected that is & is not
             diverted (residual waste material)
           – research & development activities
           – educational & public awareness activities




Slide 60                                                    OES
                       Accessibility Targets (1)


    ●   Plan must include accessibility
           – methodology
           – targets
    ●   Urban, rural, northern considerations
    ●   Municipal accessibility infrastructure options
           – events
           – permanent depots
    ●   Non-municipal infrastructure options
           – large volume generators
           – third party collection agents such as not for profits,
             retailers, private sector

Slide 61                                                              OES
                  Accessibility Targets (2)


    ●   Shall consider capital costs to meet accessibility
        targets
    ●   OES approach to setting targets to follow similar
        approach used in MHSW program development
    ●   Meeting these targets will be key determinate in
        overall WEEE program success




Slide 62                                               OES
               Research & Development (R&D)


    ●   Minister‘s letter specified program will describe
        funding provisions for R&D activities to support
        & increase effectiveness & efficiency of WEEE
        collection & diversion
    ●   Examples:
           – expanding processing capacity
           – developing end use markets for collected
             materials



Slide 63                                                OES
                 Promotion & Education (P&E)


    ●   Minister‘s letter specified fees to be used for
        aggressive P&E activities
    ●   Expectation WEEE program will include
        provincial communications plan:
           – standardized P&E material
               posters, brochures, product stickers
           – distributed to point of purchase locations
           – website & ―1-800‖ number
           – residential & IC&I sources of WEEE


Slide 64                                                  OES
                    Incentives for Stewards


    ●   Program shall consider incentives encouraging
        stewards to initiate measures designed to:
           – reduce waste resulting from their products
           – increase recyclability of products
           – increase use of recycled content of products
    ●   Fee setting methodology can be used to provide
        financial incentives for stewards




Slide 65                                                    OES
                              Fee Setting


    ●   Must meet all requirements of WDA & Minister‘s letter
    ●   Calculation steps in fee setting methodology:
           – determine operating costs to manage each WEEE product
             category
           – investments to reach accessibility targets (if required)
           – fees for research & development
           – fees for P&E
           – WDO WEEE program delivery & admin
           – MOE enforcement
           – OES program delivery & admin
           – Calculate total costs & fee rates
    ●   Fee rates expressed as $ per EEE product sold & will be
        set out in Program Rules


Slide 66                                                         OES
                       Phase 2 Materials (1)


    ●   Shall include all items in Phase 1 along with:
           Schedule 2 – Information Technology Equipment
           – copier
           – personal computer (handheld)
           – personal digital assistant (PDA)
           – computer flatbed scanner
           – typewriter
           Schedule 3 – Telecommunications Equipment
           – modem
           – pagers
           – telephone (cellular, cordless, wire line)
           – telephone answering machine

Slide 67                                                   OES
                         Phase 2 Materials (2)

           Schedule 4 – Audio Visual Equipment
           – amplifier, preamplifier
           – audio player (tape, disk, digital)
           – audio recorder (tape, disk, digital)
           – camera (tape, disk, digital)
           – equalizer
           – radio, receiver
           – speaker
           – tuner, turntable
           – video player or projector (tape, disk, digital)
           – video recorder (tape, disk, digital)
    ●   Proposal for Phase 2 due within one year of approval of
        Phase 1 program plan

Slide 68                                                       OES
                        Timelines


    ●   Submit plan to Minister
    ●   Post on Environmental Registry 30 - 90 days
    ●   Minister‘s approval by regulation for OES to
        continue as WEEE IFO
    ●   OES required under WDA to notify stewards of
        potential obligations
    ●   Minimum 90 days following notification to
        assemble & report data
    ●   Reporting & payment schedule TBD

Slide 69                                          OES
           Ontario Electronic Stewardship




               Questions & Answers




Slide 70                                    OES
                    Consultation Process


    We want your views!

    Please email questions & comments to:


           comments@ontarioelectronicsstewardship.ca




Slide 71                                           OES
           Ontario Electronic Stewardship




                Meeting Adjourned




Slide 72                                    OES

								
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