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Draft regulation now posted to wind up industry funding organizations

Draft regulation now posted to wind up industry funding organizations

Yesterday, the provincial government added a draft regulation to its posting on the Environmental Registry to wind up industry funding organizations (IFOs), which include Stewardship Ontario, Ontario Electronic Stewardship and Ontario Tire Stewardship.

The regulation includes some general changes to ensure the Corporations Act applies to IFOs while laying out the role of the Resource Productivity and Recovery Authority (RPRA) during the wind-up process.

IFO board members can voluntarily choose to start winding up their operations and appoint a liquidator, who would be approved by the Authority. Or board members could vote to pass a resolution in support of applying for a court-supervised wind-up.

The regulation also includes an added safeguard to allow the Authority or an administrator appointed by the Minister of the Environment and Climate Change to submit an application to the court in cases where it is believed that:

  • the IFO’s wind-up process is inconsistent with the plan that was approved by the Authority, or,
  • the process does not comply with the Waste Diversion Transition Act or its regulations.

This safeguard will help to ensure the orderly and timely wind-up of IFOs and Ontario’s existing recycling programs, which aligns with the OWMA’s priorities and support for transitioning to producer-responsibility regulations under the Resource Recovery and Circular Economy Act.

If you have any questions or comments, please let us know by calling (905) 791-9500.