WEEE Program Consultation: WEEE Wind Up Plan 1
How to Submit a Question 2
Overview of OES Consultation Webinar • Introductions • Consultation Process and Timelines • Proposed WEEE Wind Up Plan: – General Approach: • Overview of Wind Up Plan – Key Wind Up Proposals: • Stewards • WEEE Collection • WEEE Processing • Re-Use and Refurbishment • OES Assets – Material Tracking System/Other Assets • Data Management • Promotion and Education • Communications Activities • OES Administration • Final Wind Up Steps – Next Steps Consultation and Feedback 3
OES Wind Up Timeline OES Consultation RPRA Consultation 4
OES Consultation • The OES Consultation sessions are focused on the wind up plan. • Out of scope for the OES Consultation: – Consultation on post-wind up regulations. The MECP will organize consultation on new regulations. – Consultation on other programs such as tires or hazardous waste. 5
Consultation Process and Timelines • Minister has directed OES to wind up the WEEE program by June 30, 2020 • OES to submit Wind Up Plan to RPRA by December 31, 2018: – Must be consistent with Ministerial direction and statutory requirements; – OES consults with stewards, municipalities and other stakeholders affected by Wind Up as part of the approved process. • RPRA to review plan for consistency with Ministerial direction and statutory requirements: – RPRA also obligated to consult with stewards, municipalities and other stakeholders affected by the WEEE Wind Up Plan; – Developed IFO Wind Up Guide to assist in evaluations of submitted wind up plans; – Under the WDTA both RPRA and Minister can amend WEEE Wind Up Plan; – Ministerial direction anticipates that WEEE Wind Up Plan will be approved by RPRA no later than June 30, 2019; 6
Consultation Process and Timelines: WDTA Wind Up Plan Statutory Requirements • Subsection 14(12) of WDTA requires IFO Wind Up Plans to include the following: 1. A description of the designated waste that will no longer be included in the program. 2. A description of how the program will be operated while the plan is being implemented. 3. A proposed timeline according to which key aspects of the plan will be implemented. 4. A proposal for dealing with the affected assets, liabilities, rights and obligations of any affected industry funding organization. 5. A proposal for transferring or sharing data that is within the industry funding organization’s custody or control and that relates to the waste that will no longer be included in the program. 6. A description of changes to the program that are anticipated to be necessary to implement the plan. 7. Any other information the Minister specifies. 7
Consultation Process and Timelines: Ministerial Direction • No disruption to current program during wind up. • No adverse impacts on current or future WEEE recycling marketplace • Steward fees must fairly reflect costs • Assets must be dealt with in a fair, open and transparent process • Steps to ensure no conflicts of interest • Where possible rules should eliminate EEE fees to minimize surplus funds 8
Consultation Process and Timelines: Parallel Regulatory Processes to WEEE WUP • Development of WEEE outcome regulations under RRCEA framework: – Ministry of Environment, Conservation and Parks (MECP); – For implementation by July 1, 2020 – The MECP will initiate consultation on the new regulations . Wind Up consultation and New Regulation consultation are separate and distinct. • Development of registration and tracking requirements re: RRCEA WEEE recycling: – Registration obligations to be defined by regulations – implementation prior to July 1, 2020; – RPRA to communicate with WEEE stakeholders re: registration and reporting process under RRCEA framework. – The RPRA consultation on the wind up plan will occur after January 1 st , 2019 . 9
Proposed WEEE Wind Up Plan: General Approach • OES reserve funds will enable an elimination of EEE Steward fees during the Wind Up period – Implementation date subject to financial contingencies. • No proposed changes to OES WEEE incentive payments or rates during the Wind Up period. • OES will operate for a number of months after the WEEE program termination date (June 30, 2020) to finalize service provider and steward arrangements. • The OES Board will administer the OES Wind Up process and approve the submission of the wind up plan. • Liquidator will be engaged at the end of the process to disburse of any remaining assets and dissolve OES as a corporate entity. 10
Overview of Current OES Finances OES anticipates an ($ Millions) 2017 EHF elimination during 2019 based on Revenues $56 the Ministers’ Expenses direction to wind up by June 30 ,2020 and Materials Management $49.5 a refund of HST due to Input Tax Credit. Promotion and Education $3.0 RPRA fees $0.9 Expenses relative flat due to Administration $3.4 lower operating costs being offset by higher wind up costs Total Expenses $56.8 and RPRA fees. Surplus/Deficit ($0.8) Anticipated operating deficit will be offset Net Assets End of Year $43.6 by one-time HST refund related revenue. OES has a contingency reserve that will be drawn down through EHF elimination during 2019 and 2020. Exact date of fee elimination not finalized due to audits underway. 11
Preliminary OES Wind Up Budgetary Considerations $ Millions Anticipated reserves will be large enough to implement Net Asset Position End of 2018 $tba EEE fee elimination in 2019 Estimated Operating Surplus/Deficit EEE fee elimination will $tba generate significant 2019/2020 operating deficit in 2019 and 2020. Estimated OES Wind Up Costs OES will incur a number of $tba (post program termination) one-time costs after June 2020 to Wind Up program Remaining OES Assets $tba Any OES surpluses remaining following resolution of all financial commitments and disposition of assets to be disbursed to stewards (subject to RPRA approval). 12
Summary of Key Wind Up Dates DATE Wind Up Activity • To Be Announced Elimination of Steward EEE fees • June 30, 2020 WEEE Program Termination Date • Final date for submission of BOLs re WEEE collection (end of day) • July 7, 2020 Final date for submission of R&R Reports • Final date for arrangement of WEEE pickups from collection sites • July 31, 2020 Final date for submission of Collection Incentive claims to OES • Final date for submission of Steward EEE Supply Reports • August 15, 2020 Final date for submission of Processor claims for WEEE collected prior to June 30, 2020 (i.e. BOLs submitted by June 30, 2020) • September 15, 2020 Completion date for Processor mass balance reports • Final date for Steward EEE supply report corrections or adjustments • To Be Announced Final OES financial reconciliation 13
OES Operations Wind Up Timeline OES Operations OES Wind Up 14
Key Wind Up Plan Proposals: WEEE Collection • OES will provid e collection incentives for WEEE collected up until June 30, 2020: – Bill of Lading (BOL) submissions must be submitted to OES by the end of day June 30, 2020; – Pickups must be arranged for no later than July 7, 2020; – Collectors and generators will not be able to add new volume to the OES Material Tracking System as of July 1, 2020. • Collector claims for incentives of WEEE collected prior to July 1, 2020 must be submitted to OES no later than July 31, 2020. • OES will make arrangements with collectors to recover any WEEE support materials that belong to or are leased by OES prior to or during final WEEE pickups : – OES will track collector material supply inventories to minimize on-hand OES supplies at the point of program termination. 15
Key Wind Up Plan Proposals: WEEE Processing • Following program termination, processor related collection BOL’s must be submitted by end of day June 30, 2020 with pickups completed by July 7, 2020. • Processors will have until August 15, 2020 to submit OES claims related to materials collected prior to June 30, 2020: – Final mass balance reports to be completed and submitted by September 15 th , 2020. • OES will increase audits in the last six months of the program operation to ensure integrity of the program and final reports. • On-site inspections and wind up audits will be conducted between July and September 2020. • OES will implement additional reviews on claims outside of normal patterns to ensure validity of claims and expedite the reconciliation process. 16
Key Wind Up Plan Proposals: Re-use and Refurbishment • Following program termination, Re-use and Refurbish service providers will have until July 7, 2020 to submit reports to OES for activities completed by June 30, 2020: – After July 7, 2020, OES MTS system will be closed to R&R Reports. 17
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