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Ontario amending used-tires regulation to facilitate wind-up of OTS

Ontario amending used-tires regulation to facilitate wind-up of OTS

The provincial government is making some changes to Ontario’s used-tires regulation to help facilitate the wind-up of Ontario Tire Stewardship by the end of next year.

The Ministry of the Environment and Climate Change added EBR Posting #: 013-0094 to the Environmental Registry on June 5, 2017, to inform stakeholders that it will be making three key changes to Ontario Regulation 390/16 that specifically deal with managing revenues generated from steward fees. (You can review OTS’s steward fees by clicking here.)

Removing Steward Fee Setting Provisions

  • The government is removing the steward fee setting provisions from the regulation so that OTS can develop “appropriate fee rules” to apply during the wind-up period, which include an approach to deal with program surpluses and deficits before the organization ceases operations on Dec. 31, 2018.

Continuing Steward Fees at Current Amounts

  • The government intends to keep OTS’s steward fees frozen at the rates that were set on May 1, 2017, until the Authority approves the organization’s wind-up plan, along with any new fee rules.

Removing Annual Reconciliation Provisions

  • Currently, the used-tires regulation ensures that any differences between the amount each steward pays in fees for their tires and the actual program costs for managing these tires are reconciled each year. The government is removing these provisions from the regulation to ensure the wind-up of OTS and the program are properly financed. 

The OWMA has reviewed the proposed regulatory amendments and does not have any immediate concerns. The changes appear to be nothing more than housekeeping ahead of the submission of OTS’s wind-up plan to the Resource Productivity and Recovery Authority, which is due by Oct. 31, 2017.

The OWMA has sent its recommendations for the new used-tires regulation to the Ministry of the Environment and Climate Change. To read our briefing note, click here.

If you have any questions, please contact us at our office by calling (905) 791-9500.