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ONTARIO: Industry Awaits MOE Decision on Packaging Fees

Packagers are anxiously await a final decision from the Ontario Ministry of the Environment on the Blue Box plan from Stewardship Ontario, (SO) which is expect in June.

The plan to implement Bill 90 will mean that for the first time in North America, companies will have to calculate weight-based fees on sales packaging. If approved, companies selling more than $2 million (CDN wholesale) in Ontario will be obligated to reimburse cities for 50% of their curbside "blue box" costs.

Since fees cannot be assessed on sales (as that would make it a "Tax") Stewardship Ontario has had to come up with a complex formula based on a combination of cost to recycle and how much of a material is picked up. Unfortunately for industry, fees will be due on all sales packaging, even if the package is rarely picked up and never recycled.

Observers are skeptical that SO can reach 5,000 - 8,000 companies and get them to pay up this year – the cities want their money in 2003. SO must raise about $30 million CDN/year, but this will ratchet up to $60 million by 2005. If SO cannot raise enough money one year from companies that do pay, it can turn around the raise fees the next year to cover costs for those that do not pay, observers note.

The proposed fees have been simplified – to a flat $66.92 CDN per metric ton of plastic packaging used; $47.28 per ton of paper used, for example. In addition, exporters will have to weigh and pay fees on their paper package inserts as well, which is unique globally.

Quebec has a similar authorization law, and is waiting to see how Ontario implements its law – and it may copy Ontario.

This issue is covered in detail in State Recycling Laws Update. Raymond Communications is preparing a report on understanding producer responsibility requirements in Canada. For information, call 301-345-4237 or email michele@raymond.com

Green Buildings: A Growing Movement

The "green building" movement is growing. The U.S. Green Building Council reports that there are now more than 800 green building projects in progress – which is about 5% of new construction.

The building design must conform to strict standards under the Council's voluntary Leadership in Energy and Environmental Design or ‘LEED" program. Besides energy efficiency and other innovative designs for improve air quality and reduce waste, the LEED standards include use of recycled material.

Sen. Jim Jeffords, (I-VT) announced he would be introducing a green building bill in Congress soon, though he would not commit to whether the bill would include tax credits.

At a press conference last month, we noted that a lot of recycled plastic makes its way overseas – yet it seems like the building industry is a vast potential market. We asked if there was anything that Congress could do to increase use of recycled material in buildings. Jeffords deferred to USGBC board chair Jim Hartzfield of Interface Carpets, who pointed to the voluntary national stewardship program for used carpet.

Information: 703 741 7053 http://www.usgbc.org

New Plastic Recycling Process

Researchers at North Carolina State University are developing a process to remove contaminants and impurities from PET and other plastics, making them easier to recycle.

The process, developed by chemical engineering professors Dr. George W. Roberts and Dr. Saad A. Khan, and doctoral student Joan Patterson, reverts these polymers to the s ubstances from which they were made while simultaneously removing impurities. The process has a number of advantages: it can be done with commonly used equipment after modification, is a single-step process making it cost-effective, can be used for plastic materials of varying molecular weight, and is environmentally benign. Though it is not yet available to industry, the process is in the late stages of development.

New Uses for Arsenic Treated Wood

Though industry has agreed to voluntarily stop using wood preserved with arsenic (chromated copper arsenic, or "CCA") in residential applications after January 2004, the treated lumber could still pose an environmental threat to groundwater when it is disposed of in landfills.

As we reported in the March issue of State Recycling Laws Update, many environmental groups pushed for a ban on CCA-treated wooden playground equipment and decking. This is because evidence shows that children exposed to the wood have a significant increase in the risk of developing certain kinds of cancer.

Nearly 90% of wooden playground equipment and decking has been treated with the substance, and the amount of discarded wood reaching landfills is expected to increase substantially over the next few decades.

The Brooks Forest Products Laboratory of Virginia Tech at Blacksburg is conducting research on how the productive life of the wood can be extended through recycling. They have found that the old wood has virtually the same strength as the new wood and can easily be recycled into products by the consumer, recycling companies or community organizations and municipalities. New uses include garden trellises, trash can and air conditioner enclosures, planter boxes, retaining walls, industrial pallets, and signposts and walking bridges for parks and recreational facilities. (Ed Note: We have to wonder if such recycling will solve the leaching problem. . .)