| April 16, 2015 Dear Ontario Paint Steward, On December 10, 2014, Waste Diversion Ontario (WDO) approved the Product Care Association (PCA) Industry Stewardship Plan (ISP) for the end-of-life management of paints and coatings. WDO recently announced June 30, 2015 as the effective date of the ISP. Stewards representing over 90% of the volume of paints and coatings that are subject to the Stewardship Ontario MHSW program have provided letters of intent to join the PCA Paint ISP. As of the effective date, PCA will take over the management of the entire 'supply chain' for end-of-life paints and coatings. According to our records, your company has not responded to the invitation to join the PCA paints and coatings ISP. Please note that any MHSW paints and coatings stewards that do not indicate their intention to join the PCA paint ISP by May 29, 2015 will not have another opportunity to join PCA's paint ISP until the next quarter - end of September. We encourage you to contact Product Care [see contact information below] to find out more about the PCA paint ISP. Differences between the PCA ISP and Stewardship Ontario's MHSW Program for Paints and Coatings: While stewards of paints and coatings may remain with Stewardship Ontario to fulfill their obligation, there are a number of benefits to moving to the PCA ISP for the management of this material including:
- A predictable unit based fee schedule for products sold: Since 2012, Stewardship Ontario has been required by Regulation 11/12 to recover costs relating to the MHSW program from stewards on a 'quarterly cost recovery basis'. Accordingly, steward fees vary each quarter and are not predictable. This situation will continue for paints and coatings stewards that remain with Stewardship Ontario. However, the PCA ISP is not subject to Regulation 11/12 and will be based on a fee per unit sold basis, providing stewards with more predictability in forecasting their costs.
- Lower costs for PCA stewards relating to:
- HST -Stewardship Ontario is not eligible for tax credits on the 13% Harmonized Sales Tax (HST) paid to service providers, which PCA is able to access. This drives notable savings to exiting stewards.
- Fixed costs - As stewards representing over 90% of the volume of paints and coatings have signed letters of intent with PCA, very little volume remains with Stewardship Ontario. A smaller volume of material must now absorb all of the fixed costs of administering what is left of this program. You can therefore anticipate that your costs, should you opt to stay with Stewardship Ontario for paints and coatings, could increase after June 30, 2015.
Find out more about the PCA ISP for Paints and Coatings: Stewards interested in joining the PCA paints and coatings ISP must register by May 29, 2015 to ensure they can participate for the June 30 program launch date. Registration will be conditional and will have to be approved by WDO subject to the steward being in good standing (i.e. all reports and payments must be submitted and paid - detailed information on the exit process and timings will be provided to paints and coatings stewards that wish to exit Stewardship Ontario's program). Stewards can join the PCA ISP at any time after May 29, but exiting from Stewardship Ontario's program will only be allowed at the end of each calendar quarter, which means the next opportunity will not be until the end of September. PCA is currently developing its member registration portal, but any steward may begin the process by providing a letter of intent. For more information please contact either:
To view the Product Care Association ISP for paints and coatings click here. Additional program information can be found on Product Care's Member Support Site at: http://www.regeneration.ca/member-support/ontario/ and the initial WDO approval notice can be viewed here: http://www.wdo.ca/news/wdo-approves-plan-increase-paint-recycling-ontario/ If you have any questions, please contact Steward Services at 1-888-980-9549 or [email protected] Kind regards, Stewardship Ontario. |
