Item - 2018.PW28.8

The Public Works and Infrastructure Committee recommends that:

1.  City Council authorize the General Manager, Solid Waste Management Services and/or designate to negotiate and enter into any amending agreements (including but not limited to amending agreements to receive external funding) necessary for the City's continued waste diversion operations throughout the transition period under the Waste Diversion Transition Act, 2016, based in part on the recommendations on pricing set out in Confidential Attachment 1 to the report (March 22, 2018) from the General Manager, Solid Waste Management Services, and on terms satisfactory to the General Manager, Solid Waste Management Services and each in a form satisfactory to the City Solicitor.

2.  City Council authorize the General Manager, Solid Waste Management Services and/or designate to negotiate and enter into any agreements or amending agreements necessary to test the feasibility of delivering new or enhanced waste diversion initiatives and/or processing contaminated recycling based in part on the recommendations on pricing set out in Confidential Attachment 1 to the report (March 22, 2018) from the General Manager, Solid Waste Management Services, and on terms satisfactory to the General Manager, Solid Waste Management Services, the Chief Financial Officer, and each in a form satisfactory to the City Solicitor.

3.  City Council adopt the recommendations in Confidential Attachment 1 to the report (March 22, 2018) from the General Manager, Solid Waste Management Services.

4.  City Council direct that the recommendations in Confidential Attachment 1 to the report (March 22, 2018) from the General Manager, Solid Waste Management Services, remain confidential as they relate to commercial or financial information that belongs to the City and has potential monetary value.

The Public Works and Infrastructure Committee:

1. Directed the General Manager, Solid Waste Management Services to report to the Public Works and Infrastructure Committee at the July 10, 2018 meeting on:

a.  a process to reduce and/or eliminate single-use or takeaway packaging or products not accepted in the City's Blue Bin Recycling program (including black plastics) to reduce contamination levels and help achieve the City's goal to become a circular economy city as part of the Long Term Waste Management Strategy;

b.  the ability of the City of Toronto to address misleading advertising of product and/or packaging recyclability and/or compostability in the Toronto marketplace when the product and/or package is not accepted in the City of Toronto Blue Bin Recycling or Green Bin Organics Programs; and

c.  the ability of the City of Toronto to require retailers of textile material in the City to post reuse, recyclability and waste disposal options at the point of purchase.

2. Directed the General Manager, Solid Waste Management Services to include in his future report on the Long Term Waste Management Strategy the consideration of the feasibility of alternative ways to collect and process waste in the future.

3. Requested the General Manager, Solid Waste Management Services to report prior to the next rate supported budget, on whether there is a correlation between the increase in the number of recycling bins residents are using, the level of contamination in the recycling stream and the increasing cost (lowering of rebate) of garbage bins.

The City of Toronto operates one of the most sophisticated integrated waste management systems in North America. It manages materials from single family and multi-residential homes as well as some non-residential customers. A component of this system includes the Blue Bin Recycling Program. This program accepts an extensive list of printed-paper and packaging products to meet Provincial Regulations and support the City's efforts to drive waste diversion from landfill. The City currently manages approximately 200,000 tonnes of recyclables annually through its Blue Bin Recycling Program. It is one of the largest and most successful municipal recycling programs in North America.

The purpose of this Report is to provide an update on the evolution of the Blue Bin Recycling Program. This includes an overview of new challenges regarding contamination (garbage in the recycling), developments in international markets, as well as an update on the move towards full extended producer responsibility.

Contamination in the Blue Bin Recycling Program has been increasing over time, despite best efforts from the Solid Waste Management Services Division to mitigate against this. A more recent compounding factor is that the People's Republic of China - one of the world's largest importers of recyclable materials - has imposed bans and restrictions on the acceptance of recyclable materials. This has resulted in additional pressure to mitigate contamination, as well as explore alternate markets for processed materials.

The ongoing challenges with contamination in the Blue Bin Recycling Program, along with the new international market conditions, could potentially result in an approximately $9.2 million pressure to the Solid Waste Management Services Division by the end of 2018, should things continue as they are today.

In addition to the above challenges with regards to contamination and international markets, staff from Solid Waste Management Services are actively involved in negotiations for an amended Blue Box Program Plan. This process is being led by Stewardship Ontario and the Resource Productivity and Recovery Authority. The purpose of these negotiations is to secure a process for the transition of Ontario's recycling programs to a full extended producer responsibility model. As of the writing of this Report, there is no clear timeline for transitioning the Blue Box Recycling Program to a full extended producer responsibility model, introducing uncertainty on how best to address some of these issues over the short and long term.

While there is a confluence of risk factors, insofar as ongoing contamination, challenges with international markets, and delays in moving towards an extended producer responsibility model, there are a number of mitigating actions available as well. These include additional monitoring and enforcement of contaminated recycling bins, the exploration of alternate markets for recyclable material, and continued participation in Blue Box Transition negotiations.

The recommendations listed below ask for delegated authority for the General Manager, Solid Waste Management Services, in regards to negotiating and amending agreements with regards to processing Blue Bin materials. In addition, staff are seeking authority for the ability to conduct product/material tests to determine whether or not new materials can be added to the Blue Bin Recycling Program or alternative processing options that may be available. Providing these delegated authorities will allow Solid Waste Management Services to continue to address contamination, react quickly to changing market dynamics, and provide a strong platform from which to engage in negotiations with Stewardship Ontario and private service providers on the transition to an extended producer responsibility model.