WEEE Program Consultation:

WEEE Wind Up Plan

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How to Submit a Question

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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

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OES Wind Up Timeline

OES Consultation RPRA Consultation

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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.

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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;

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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.

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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

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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 1st, 2019.

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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.

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Overview of Current OES Finances

($ Millions) 2017

Revenues $56

Expenses

Materials Management $49.5

Promotion and Education $3.0

RPRA fees $0.9

Administration $3.4

Total Expenses $56.8

Surplus/Deficit ($0.8)

Net Assets End of Year $43.6

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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.

OES anticipates an EHF elimination during 2019 based on the Ministers’ direction to wind up by June 30 ,2020 and a refund of HST due to Input Tax Credit.

Expenses relative flat due to lower operating costs being offset by higher wind up costs and RPRA fees.

Anticipated operating deficit will be offset by one-time HST refund related revenue.

Preliminary OES Wind Up Budgetary

Considerations$ Millions

Net Asset Position End of 2018 $tba

Estimated Operating Surplus/Deficit 2019/2020

$tba

Estimated OES Wind Up Costs (post program termination)

$tba

Remaining OES Assets $tba

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Anticipated reserves will be large enough to implement EEE fee elimination in 2019

Any OES surpluses remaining following resolution of all financial commitments and disposition of assets to be disbursed to stewards (subject to RPRA approval).

EEE fee elimination will generate significant operating deficit in 2019 and 2020.

OES will incur a number of one-time costs after June 2020 to Wind Up program

Summary of Key Wind Up DatesDATE 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

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Key Wind Up Plan Proposals:WEEE Collection

• OES will provide 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.

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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 15th, 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.

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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.

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Key Wind Up Plan Proposals:Stewards

• Elimination of Steward EEE fees targeted for implementation beginning in 2019:

– OES will provide notice regarding fee elimination date with RPRA endorsement;

– Stewards will continue to be obligated to report units put on market until June 30th, 2020.

• Final steward payments will be required 30 days after fee elimination:– Stewards currently remitting on a monthly or annual basis will be required to submit final

steward fees one month after fee elimination;

– Stewards will be given additional month to submit any reporting corrections/adjustments.

• Final steward supply (put on market) reports will be due on July 31, 2020 (one month after program termination):

– Stewards will be able to submit report corrections/adjustments for entry into 3R by September 15th.

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Key Wind Up Plan Proposals:Steward Rules

• Steward rule amendments or exceptions as approved by RPRA

will be required for the wind up period. In particular Steward

rules will be amended to enable the following:

– Provide for final program financial reconciliation;

– Update references to relevant legislation and regulations (throughout);

– Amend new Steward reporting obligations near the program termination date

(subsection 3.1).

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Key Wind Up Plan Proposals:Assets – Material Tracking System

• OES Material Tracking System (MTS) is a proprietary software designed to track WEEE in accordance with OES regulatory requirements:

– Helps ensure materials are recycling in accordance with program objectives.

• OES is proposing that the MTS system be made available to interested RRCEA Stewards and potential service providers as of January 1, 2020:

– Broad availability ensures no single stakeholder is receiving preferential treatment re preparations for recycling under RRCEA framework.

• OES will hold information sessions for interested stakeholders re MTS capabilities, requirements and proposed transition of software in the fall of 2019.

• OES will ensure that no proprietary or commercially confidential data is released as part of MTS software release (only clean versions of the software will be made available).

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Key Wind Up Plan Proposals:Assets – Other OES Assets

• Outside of the MTS system OES does not have assets of significant value.

• All remaining OES assets will have zero book value at the time of program termination:– Total estimated value of assets is less than $10,000.

• Remaining OES materials (collection bins, electronic devices, POS materials, furniture, etc.) will be auctioned off prior to final program financial reconciliations.

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Key Wind Up Plan Proposals:Data Management

• As part of the Wind Up process OES is required to transfer data related to WEEE recycling to the RPRA:

– OES will identify any confidential or personal data that is included in that data transfer and take measures to ensure it is supplied in confidence.

• Throughout the wind up process, OES will ensure that confidential and commercial WEEE stakeholder data is protected and only utilized for the purposes for which it was collected (i.e. administration of the WEEE program).

• Following program termination and finalization of outstanding stakeholder commitments, WEEE data in OES’s possession will be destroyed in accordance with appropriate security protocols.

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Key Wind Up Plan Proposals:Promotion and Education

• Funding for promotion and education activities in 2019 will be

consistent with historical practice:

– Communications activities will be adjusted to reflect program Wind

Up and the impending implementation of new recycling programs

under the RRCEA framework.

• In 2020, OES will review promotional and educational activities and

events on a case by case basis to determine whether the benefits are

still applicable in light of the pending program termination.

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Key Wind Up Plan Proposals:Wind Up Communications

• Wind Up plan will ensure that all OES stakeholders receive advance and

ongoing communications related to OES Wind Up activities and key dates and

deadlines:

– Outreach will be increased in 2020 to remind all service providers and

stakeholders of impending program termination.

• Communications materials will be tailored to specific stakeholder groups to

ensure that stakeholder specific issues are effectively communicated.

• Throughout the Wind Up period, OES will maintain a website portal with

updated information on Wind Up activities where stakeholders can find

information and give OES feedback on related questions.

• Wind Up communications will be shared with and coordinated with both RPRA

and the MECP to facilitate clarity of activities.

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Key Wind Up Plan Proposals:OES Governance and Administration

• OES administers the WEEE program through a service agreement with EPRA. Steps taken

to address the governance topic, in consultation with and supported by RPRA, include the

following:

– A new set of OES Board members replaced the prior Board members who were also

on the EPRA Board. The new OES Board was put in place in August 2018 to oversee

the development and implementation of the WEEE Wind Up Plan.

– The OES Board was appointed in compliance with the legal requirement that the OES

Board members must be representatives of the electronics industry and are appointed

by RCC and EPSC.

– OES WEEE administration and functions will be conducted at a separate office during

the Wind Up plan implementation. Systems, staff and processes will be dedicated to

OES where possible.

• WEEE Wind Up will require the termination of all contractual arrangements including the

OES-EPRA service agreement.

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Key Wind Up Plan Proposals:Final Wind Up Steps

After the Program Termination Date – June 30, 2020

• Finalization of Service Provider Financial Obligations

• Reconciliation of OES Operating Periods

• Final Program Financial Reconciliations – Potential payments to Stewards

• Termination of OES-EPRA Operating Agreement

• Engagement of OES Liquidator

• Disbursement of any remaining OES assets

• Submission of Final WEEE Wind Up Program Report to Minister

• Dissolution of OES as a Corporate entity

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WEEE Wind Up Plan: Next StepsConsultation and Feedback

• OES seeking stakeholder feedback on Wind Up Plan proposals:– Combination of webinars and in person sessions

– Written comments from all stakeholders welcome:

• Will form part of consultation record

• Feedback may also be provided to OESWindUP@ontarioes.ca no later than November 19th, 2018.

• OES will consider stakeholder feedback in the development of full WEEE Wind Up Plan.

• RPRA will release WEEE Wind Up Plan and consult with stakeholders in 2019 at dates to be determined.

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How to Submit a Question

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