2016/ /19 BUSINESS PLAN

Transcription

1 2016/ /19 BUSINESS PLAN

2 TABLE OF CONTENTS Page # 1. Mandate 3 A. Accountability Statement B. Vision, Mission & Mandate C. Strategic Action Plans 2. Electronics Recycling Alberta... 6 A. Goals, Performance Measurement, Strategic Action Plans B. 2015/16 Summary Budget 3. Paint Recycling Alberta A. Goals, Performance Measurement, Strategic Action Plans B. 2015/16 Summary Budget 4. Tires Recycling Alberta A. Goals, Performance Measurement, Strategic Action Plans B. 2015/16 Summary Budget 5. Household Hazardous Waste Contract Goal APPENDIX...41 A. Governance Structure B. Operating Principles C. Long Term Strategic Directions D. Organization 2016/ /19 Business Plan 2

3 ACCOUNTABILITY STATEMENT The Alberta Recycling Management Authority ( Alberta Recycling ) Business Plan for the three years commencing April 1, 2016 was prepared in accordance with the requirements found in Section 16 of the Designated Material Recycling and Management Regulation (Alberta Regulation 93/2004), which was enacted under the Environmental Protection and Enhancement Act. The mission, core business, goals and strategies of the Alberta Recycling Business Plan align with and contribute to Alberta Environment and Park s Business Plan 1, and therefore, the Government s goals and objectives. Alberta Recycling is committed to achieving the targets as laid out in this Business Plan. Approved by the Board of Directors, Alberta Recycling Management Authority February 24, 2016 Bob Barss, Chairman / /19 Business Plan 3

4 VISION A sustainable Alberta Recycling solution for designated materials that is a model of excellence, environmentally responsible, and economically viable. MISSION To carry out its delegated mandate to manage revenues to achieve high environmental outcomes in respect of each designated material: a) By being fully accountable to the Minister of Environment and Parks, the Government of Alberta, Alberta Recycling members, Industry and Albertans; b) By ensuring that, under its programs, all requirements for environmental, health and safety standards are met, and that all companies and activities so funded strive to exceed these requirements and operate as models of excellence in environmental, health and safety standards; c) By openly communicating Alberta Recycling policies, strategies and results; d) By educating the public about and encouraging them to utilize Alberta Recycling s programs; e) By funding research and development activities related to recycling or management of the designated materials; f) By ensuring that the organization operates as a model of environmental excellence. MANDATE Alberta Recycling is a not-for-profit organization incorporated under the Societies Act and operates as a delegated administrative organization accountable to the Alberta Minister of Environment and Parks through the Business Plan and Budget, and Annual Report. The Designated Material Recycling and Management Regulation (the Regulation ) authorizes Alberta Recycling to levy and collect advance disposal surcharges ( surcharges ), which are to be used to provide or pay for any or all of the following: waste minimization and recycling programs public information programs for the promotion of minimization and recycling programs expenditures on the collection, transportation, storage, processing and disposal of designated materials research and development activities related to designated materials management promote the uses of recycled materials and products In addition to its environmental stewardship mandate, Alberta Recycling meets its obligations under the Societies Act through its bylaws and governance framework. Alberta Recycling formally reports to its membership through its annual report and at its Annual General Meeting. 2016/ /19 Business Plan 4

5 STRATEGIC ACTION PLANS To provide direction to the Business Plan, the Board of Directors, through their annual planning process, identified strategic action plans which have been incorporated within the appropriate Goal Performance Measures of the electronics, paint, and tire recycling program sections. Additionally, the following three organizational action plans were identified by the Board, pertaining to the organization as a whole: 1. Strategic Review of Industry Councils and Recruitment Continue as necessary with the development of a formal director selection process, initiated in 2015/16, that is: a) Transparent and unbiased b) Consistent with the practices of the Government of Alberta s Agency Governance Secretariat 2. Confirm Issues Positions Confirm the following Issue Positions: a) Energy Recovery b) Reuse 3. Strategic Organization Communications Issues a) Monitor and be proactive on communications with key stakeholders 2016/ /19 Business Plan 5

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7 ELECTRONICS RECYCLING ALBERTA GOALS, PERFORMANCE MEASURES & SUMMARY BUDGET Goal E1: Ensure program sustainability by confirming surcharge and funding rates are appropriate and effectively managed. Performance Measure E1.1: Fund Projections To ensure Program sustainability, provide regular analysis and projections of revenues and expenditures to demonstrate the resulting Fund balance is maintained consistent with Board directions, including: 1. Surcharge revenues remitted on the sales of eligible electronics; 2. Program expenditures on the collection and processing of eligible end-of-life ( EOL ) electronics; 3. Investment earnings and changes in market value; 4. Potential impact from factors affecting the Fund balance e.g. technological changes, processing costs, product life span changes, and recovery rates; 5. Operating Reserve - the minimum fund balance set by the Board. Target 1. Provide regular reports against the program revenues and expenditures projection below. 2. Identify any changes and provide possible adjustment scenarios for surcharge rates and/or program funding rates, including timelines and resulting Fund balances (please refer to the graph on page 9). Supplementary Indicator to Goal E1 Ensuring Revenue Completeness Alberta Recycling is required to identify and register companies that supply designated electronics in Alberta to ensure that the surcharge is remitted on the sale of all eligible electronics. Every three years a supplieridentification project is completed to confirm that companies who have not been contacted before are made aware of the program and registered if appropriate. To ensure suppliers accurately charge and remit the funds collected on all sales, compliance reviews are employed, with the remitters selected through a riskbased sampling process. Total Number of Remitters Registered as of April 1/15 Category Size & Average ADS collected per month Forecast for Reviews to be completed in 2015/ Small; <$ Medium; $500 - $2, Large; >$2, / /19 Business Plan 7

8 Action Plan for Performance Measure E Operating Reserve a) Confirm standard operating reserve policy for the electronics program. 2. Transportation Incentive Model a) Consistent with the discussion in the Tire Program, work with electronics processors to assess longterm options fo the transportaion model. b) Continue to monitor the impact of the rate increase (average of $30 per tonne) implemented one year ago. Performance Measure E1.2: Sustainability of Recycling Industry Verify that the current levels of program funding are adequate to sustain the collection and processing of EOL electronics within Alberta s recycling industry: 1. At least every four years, conduct a comprehensive Sustainability Review to determine if there is a need to adjust program funding rates, based on a professional audit of all processors receiving program funding and an assessment of the financial sustainability of the processing industry. 2. In the intervening years, conduct an analysis of key financial data from processors to identify any significant changes occurring since the program s last Sustainability Review. Target 1. Complete a Sustainability Review of electronics processors. 2016/ /19 Business Plan 8

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10 Goal E2: All designated electronics are collected and processed. Performance Measure E2.1: Total Amount of End-of-life Electronics Processed Annual targets are set to increase the total amount of end-of-life electronics (EOL) collected and processed, to measure progress toward the ultimate goal of recycling all EOL electronics discarded by Albertans. This is measured by primary and secondary targets. The goal of collecting and recycling all designated electronics is an over-arching one to be continually strived for; the annual targets are set to drive an increase each year to help ensure progress toward the goal. The escalating targets are set based on the trend of previous results and market expectations for both the annual sales of designated materials and for the recycled material. Primary Targets There are four primary targets for assessing progress on this performance measure: 1. Total tonnes processed The processing forecast for 2015/16 and target for 2016/17 indicate decreases of 7.7% and 5% respectively over 2014/15 which reflect the downturn in the economy. Targets for succeeding years indicate a 2% growth rate. 2. Amount processed per capita Presenting the per capita rate provides a better indicator of progress by factoring out population increase. Additionally, a kg/capita indicator is useful for comparing the effectiveness of programs in different jurisdictions of varying sizes. 3. Core cost per Kg. The core cost focuses on the actual cost to fulfill the primary mandate of collecting and processing all material recovered in a year, including program administration. Secondary Targets 1. Recovery Rate The recovery rate measures the amount of product processed as a percent of the amount of product purchased in a year. It is a useful secondary target to track trends in changes to the recovery of material over time- how much of the annual inflow of new electronics is offset by the amount of old electronics removed - indicating whether the effectiveness of the program is increasing, decreasing or leveling off. (Note: a similar trend measure is capture rate, measuring the total amount processed as a percent of the total amount discarded. It is very difficult to accurately estimate the total amount discarded based on how long a product is used before it is discarded. While capture rate is theoretically a better gauge of program effectiveness than the recovery rate, it is unreliable.) 2. Total Cost per Kg. The total cost for the program includes developmental funding e.g. communications and research and development, elements intended to enhance program effectiveness but considered over and above the primary target of direct program costs, and varying substantially year over year. 2016/ /19 Business Plan 10

11 Processed (tonnes) PRIMARY TARGETS Kg. per Capita Core Cost Per Kg. SECONDARY TARGET Recovery rate Total Cost per Kg. 2012/13 Result 17, $ % $ /14 Result 17, $ % $ /15 Result 18, $ % $ /16 Forecast 17, $ % $ /17 Target 16, $ % $ /18 Target 16, $ % $ /18 Target 17, $ % $1.18 Action Plan for Performance Measure E Hard-to-Get Electronics a) Pilot projects to pick up TVs or computers e.g. from basements or storage rooms that are either difficult to move or transport to an electronics collection site. The projects can cover the following areas: i. Single family residences ii. Multi-family buildings iii. Industrial, commercial, institutional (ICI) b) Continue to research hard-to-get electronics (see PM E5.2 on pg. 17 regarding the ICI sector). Supplementary indicator to Goal E2: Processed Materials The following table identifies the types and amount of material processed from computer equipment and televisions. These materials are used for feedstock in the manufacturing of new products e.g. plastics into pellets; steel recycled into construction rebar; lead recovered from leaded glass through smelting; copper wire recycled into copper feedstock; precious metals recovered from computer chips. The other category includes batteries, toner and ink, wire and cables, and wood. Material 2012/13 Result (tonnes) 2013/14 Result (tonnes) 2014/15 Result (tonnes) 2015/16 Forecast (tonnes) Glass 6,164 6,399 6,765 6,246 Plastic 4,603 4,970 6,073* 5,607 Metals 5,899 5, ,761 Other Total 17,280 17,994 18,773 17,332 *The 22% increase in plastic over 2013/14 can be attributed to the increase in unit collections of visual display devices over 30 in screen size, CPUs and printers which generate plastic housing for recycling. 2016/ /19 Business Plan 11

12 Supplementary Indicator to Goal E2: Disposal of Residual Materials The following table identifies the amount of residual material disposed of in accordance with methods acceptable under the program. For example, when markets for wood and toner cartridges are limited, the material is properly landfilled. Total Disposed (tonnes) Total Processed (tonnes) Percent of Total Processed 2012/13 Result 55 17, % 2013/14 Result 87 17, % 2014/15 Result 74 18, % 2015/16 Forecast 68 17, % Goal E3: Electronics are processed in an environmentally and socially responsible manner. Performance Measure E3.1: Environmental Assurance - Processors Ensure Processors meet or exceed the Processor Qualification Requirements and the Environmental Health and Safety (EHS) Requirements of the program, and other applicable environmental requirements including transportation and export. This is to ensure proper collection and processing of EOL electronics material. Targets 1. Annual assurance reviews of all processors are completed per the requirements stated above. 2. If deficiencies are identified, processors are required to respond to the list, item by item, within 14 days of receipt, and correct the deficiencies in accordance with timelines identified in the review process. 3. Complete desktop or onsite assurance reviews, determined by on a case-by-case basis, of downstream processors. 4. Deficiencies identified within downstream processor reviews are properly addressed in accordance with appropriate timelines as identified in the review process. 5. The Summary of Compliance Assurance Activities Report is completed and posted on Alberta Recycling s website. Performance Measure E3.2: Environmental Assurance - Program Ensure that the overall impact of Alberta Recycling s policies and funding achieve high environmental outcomes and meet program standards without unanticipated negative environmental impacts. 2016/ /19 Business Plan 12

13 Targets 1. Processors sites are inspected monthly to confirm compliance with program requirements e.g. overall site conditions and monitoring of inventory. (These inspections are in addition to the annual environmental assurance review per Performance Measure E3.1.) a) Deficiencies identified are properly addressed in accordance with appropriate timelines as set out in the review process. 2. An assurance review is completed annually for each Municipal Collection Site. a) Deficiencies identified are properly addressed in accordance with approved timelines. Supplementary indicator to Goal E3: Potentially Hazardous Material Diverted The following table identifies the types and amounts of potentially hazardous materials removed from the total electronics processed as reported in E2.1. The weight of each material was calculated by multiplying the estimated amount contained in an electronic product by the number of those products processed. Material Source 2012/13 Result 2013/14 Result 2014/15 Result 2015/16 Forecast Lead (tonnes) Circuit boards & cathode ray tubes Mercury (kgs.) Cadmium (kgs.) Circuit boards, batteries, lamps, bulbs & switches Circuit boards, batteries, cathode ray tubes, insulated wire & plastics Beryllium (kgs.) Circuit Boards Antimony (tonnes) Cathode ray tubes Goal E4: There is strong awareness and support for the electronics recycling program. Performance Measure E4.1: Public Awareness and Support 1. The public is aware of the electronics recycling program and the surcharges, and the levels of awareness increase over time as measured by an independent polling firm. 2. The public supports the recycling program and surcharges, and the levels increase over time, measured by an independent polling firm. Target 1. Develop a set of public information initiatives to increase the rate of awareness and support, bringing the levels closer to the maximum achievable. These initiatives would include funding advertising of collection sites and municipal grant programs. (Note: With respect to program awareness and support, as well as surcharge awareness, it is not costeffective to actively pursue more than a 95% rate; in practical terms this is the maximum achievable. Similarly, a 75% rate for support for paying a fee is a reasonable maximum level.) 2016/ /19 Business Plan 13

14 Program Surcharges Awareness Support Awareness Support 2012/13 Result 80% 91% 68% 75% 2013/14 Result 72% 91% 62% 55% 2014/15 Result 70% 91% 60% 55% 2015/16 Forecast 71% 92% 61% 56% 2016/17 Target 72% 92% 62% 57% 2017/18 Target 73% 92% 63% 58% 2018/19 Target 74% 92% 64% 59% Performance Measure E4.2: Key Stakeholder Support Key stakeholders are aware of the electronics recycling program and the surcharges, and the levels of awareness increase over time. Target 1. Enhancing stakeholder interaction a) Develop a set of public information initiatives for key stakeholders including municipal officials and major retailers regarding the programs and the organization. Goal E5: There is strong participation in the collection of electronics for recycling under the program. Performance Measure E5.1: Residential Participation and Access Participation and access to facilities, including municipal collection sites, return-to-retailer and processor sites, for Albertans to recycle their EOL electronics is improving. Target 1. Increase the level of residential participation for recycling of EOL electronics through collection sites that operate year round and roundups that provide temporary access to electronics recycling, measured by an independent polling firm. 2016/ /19 Business Plan 14

15 PRIMARY TARGET Awareness of Collection Sites Participation SECONDARY TARGET Number of Collections Sites Number of Roundups 2012/13 Result 87% 49% /14 Result 80% 37% /15 Result 86% 37% /16 forecast 85% 39% /17 Target 86% 40% /18 Target 87% 41% /19 Target 88% 42% Action Plan for Performance Measure E Increase number of return-to-retail sites a) Facilitate initiatives by companies to establish return-to-retail sites. i. Support return-to-retail on a voluntary basis by facilitating direct arrangements with electronics processors for the removal, transportation and recycling of electronics (funded by the program). ii. Another possibility is that the retailer could request that their municipality (where the retailer is located) designate their store as a registered municipal collection site. The retailer may then be able to access a collection incentive, authorized for municipalities, at the discretion of the municipality. Supplementary Indicator to Goal E3: Proximity to Collection Sites The proximity an Albertan has to an electronics collection site is a new component added to measure access to recycling and for comparative purposes with other provincial programs. It is forecast that 85% of Albertans live within 45 minutes (rural) or 30 minutes (urban) to an electronics collection sites; the actual percent will be documented in the 15/16 Annual Report and this figure will be reviewed every three-four years. Performance Measure E5.2: Industrial, Commercial and Institutional (ICI) Participation The level of participation by the ICI sector is increasing by recycling their EOL electronics through the program. Theses percentages do not include ICI material dropped off at municipal collection sites or generated through corporate lease and asset management take-back programs that leave the province. 2016/ /19 Business Plan 15

16 Targets 1. Include the option of pick up from the ICI sector (in addition to the general public) as part of the Community Pilot Project. 2. Survey ICI sector to determine their waste management practices for EOL electronics e.g. corporate lease, asset management, drop off at local collection site. Upon completion, review results for next steps. 3. Promote greater utilization of the Electronics Processor ICI Roundup Grant. Total Tonnes Processed (Residential & Non- Residential) NON-RESIDENTIAL PARTICIPATION Estimated Non-Residential Tonnage (Direct Collection) Percent of Total Processed 2012/13 Result 17,280 3,925 23% 2013/14 Result 17,994 4,714 26% 2014/15 Result 18,773 5,349 28% 2015/16 Forecast 17,332 4, % 2015/16 Target 16,465 4, % 2016/17 Target 16,794 4, % 2017/18 Target 17,130 4, % 2016/ /19 Business Plan 16

17 ELECTRONICS RECYCLING ALBERTA 2016/2017 BUDGET A B C D E F BUDGET FORECAST BUDGET ACTUAL ACTUAL ACTUAL 16/17 15/16 15/16 14/15 13/14 12/13 RECYCLING REVENUE 1 Advance Disposal Surcharges 7,473,253 7,801,142 9,505,359 9,756,601 10,348,262 12,141,245 2 Income - ADS Interest 5,000 5,000 5,000 13,173 26,533 10,738 3 Income - Other Income (NWT Contract Revenue) 36,000 6, ,109 5,727 4 TOTAL REVENUES 7,514,253 7,812,142 9,510,359 9,770,342 10,375,904 12,157,710 RECYCLING EXPENDITURES 5 Municipal Collection Incentive 1,530,360 1,610,960 1,899,950 1,435,766 1,447,181 1,278,228 6 Transportation and Handling 1,652,749 1,739,890 1,978,157 1,455,260 1,149,504 1,115,232 7 Processing Incentives 11,525,499 12,132,400 13,937,700 13,141,054 12,595,678 12,095,691 8 Fuel Recovery 9,917 7,829 81,690 59,777 50,038 32,533 9 TOTAL RECYCLING EXPENDITURES 14,718,525 15,491,079 17,897,497 16,091,856 15,242,400 14,521,685 RECYCLING DEVELOPMENT PROGRAMS 10 Recycling Dev - Action Items 625, , ,000 50, , , Recycling Dev - Innovation Funding 400,000-1,200,000 40, Recycling Dev - Average Weights 50,000 50,000 50,000-26,053 23, Recycling Dev - Pilot Projects , Recycling Dev - Ambassador Program 20,000 23,000 23,000 6,657 18,417 15, Recycling Dev - Stakeholder Information 20,000 23,000 23, ,918 4,979 10, Recycling Dev - Public Information 715, , ,654 1, ,558 1,393, Recycling Dev - Issues Management Recycling Dev - Rural Alberta Projects 60,000 35, ,000 26,544 38,444 32, Recycling Dev - Municipal Assistance 382, , , , , , Recycling Dev - Market Development ,693 58, TOTAL RECYCLING DEVELOPMENT PROGRAM EXPENDITURES 2,273, ,554 3,825, ,761 1,114,244 2,286,998 ADMINISTRATIVE EXPENDITURES (Includes estimate of NWT contract related administration costs of $36,000)* 22 Salaries and Benefits 1,039,555 1,090,889 1,152,670 1,151,495 1,142,378 1,085, Professional Fees 274, , , , , , Board and Council 134, , ,108 89, , , Compliance and Assurance Reviews 462, , , , , , Administration 468, , , , , , TOTAL ADMINISTRATIVE EXPENDITURES 2,379,673 2,329,977 2,643,550 2,304,398 2,701,805 2,541, TOTAL EXPENDITURES 19,371,981 18,697,610 24,366,701 19,394,015 19,058,449 19,349, RECYCLING REVENUE OVER (UNDER) EXPENDITURES (11,857,728) (10,885,469) (14,856,342) (9,623,673) (8,682,545) (7,192,169) 2016/ /19 Business Plan 17

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19 PAINT RECYCLING ALBERTA GOALS, PERFORMANCE MEASURES & SUMMARY BUDGET Goal P1: Ensure program sustainability by confirming surcharge and funding rates are appropriate and effectively managed. Performance Measure P1.1: Program Sustainability To ensure program sustainability, provide regular analysis and projections of revenues and expenditures to demonstrate the resulting Fund balance is maintained consistent with Board directions, including: 1. Surcharge revenues remitted on the sales of paint; 2. Program expenditures on the collection and processing of paint; 3. Investment earnings and changes in market value; 4. Potential impacts of factors affecting the Fund balance; for example, technological changes, processing costs, product life span changes and recovery rates. 5. Operating Reserve - the minimum fund balance set by the Board. Targets 1. Provide regular reports against the program revenues and expenditures projection below. 2. Identify any changes and provide possible adjustment scenarios for surcharges and/or program funding rates, including debt repayment timelines and resulting Fund balances (please refer to the graph on page 21). Action Plans for Performance Measure P Based on the results of the 2015/16 Paint Sustainability Review: a) Tiered Funding Structure and Rates i. Structure program funding to reflect environmental outcomes and costs. b) Review Business Model for Paint Program ii. Conduct a comprehensive review of funding options for recommendation to the Board. Supplementary Indicator to Goal P1 - Ensuring Revenue Completeness Alberta Recycling is required to identify and register companies that supply designated paint and paint containers in Alberta to ensure that the surcharge is remitted on the sale of all eligible paint products. Every three years a supplier-identification project is completed to confirm that companies who have not been contacted before are made aware of the program and registered if appropriate. To ensure suppliers accurately charge and remit the funds collected on all sales, compliance reviews are employed, with the remitters selected through a risk-based sampling process. 2016/ /19 Business Plan 19

20 Total Number of Remitters Registered as of April 1/15 Category Size & Average ADS collected per month Forecast for Reviews to be Completed in 2015/ Small; <$ Medium; $500 - $2, Large; >$2, Performance Measure P1.2: Sustainability of Recycling Industry Verify that the current levels of program funding are adequate to sustain the collection and processing of waste paint and paint containers within Alberta s recycling industry: 1. At least every four years, conduct a comprehensive Sustainability Review to determine if there is a need to adjust program funding rates, based on a professional audit of all processors receiving program funding and an assessment of the financial sustainability of the processing industry. 2. In the intervening years, conduct an analysis of key financial data from processors to identify any significant changes occurring since the program s last Sustainability Review. Target 1. Conduct an analysis of key business financial data from processors to identify any significant financial changes stemming from the 2015/16 Sustainability Review. 2016/ /19 Business Plan 20

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22 Goal P2: All designated paint and paint containers are collected and processed. Performance Measure P2.1: Total Amount of Paint and Containers Processed Annual targets are set to increase the total amount of eligible leftover paint and paint containers collected and processed in accordance with the estimated amount discarded by Albertans. This is measured by primary and secondary targets. The goal of collecting and recycling all designated paint and containers is an over-arching one that is to be continually strived for; the annual targets are set to drive an increase each year which will help ensure progress toward the goal. The escalating targets are set based on the trend of previous results and market expectations for annual sales of the designated materials. Primary Targets 1. Total paint processed The forecast indicates a growth rate of 1.4% over 2014/15 however the target for 2016/17 does not show an increase, impacted by a downturn in the economy. The succeeding targets reflect gradual growth. The equivalent number of litres is presented here as additional information and is based on the average weight per litre of 1.2 kg. 2. Amount processed per capita Presenting the per capita rate provides a better indicator of development by factoring out population increase. Additionally, a kg/capita indicator is useful for comparing the activity of programs in different jurisdictions of varying sizes. 3. Core cost per Kg. The core cost for the program focuses on the actual cost to fulfill the primary mandate of collecting and processing all material recovered in a year, including program administration. Secondary Targets 1. Recovery rate The recovery rate measures the amount of product processed as a percent of the amount of product purchased in a year. It is a useful secondary target to track trends in changes to the recovery of material over time- how much of the annual inflow of new paint is offset by the amount of leftover paint removed - indicating whether the effectiveness of the program is increasing, decreasing or leveling off. (Note: a similar trend measure is capture rate, measuring the total amount processed as a percent of the total amount discarded. Assessing the recovery rate for paint is challenging because industry estimates indicate that 85-90% of the paint sold is used, leaving 10-15% discarded. If the amount of paint recovered is 8% of the amount sold while illustrating a very low recovery rate it represents a capture rate of approximately 50% of the estimated amount discarded. For the paint program, this makes capture rate the better measurement.) 2. Total Cost per Kg. The total cost for the program includes developmental funding e.g. communications and research and development, elements intended to enhance program effectiveness but considered over and above the primary target of direct program costs, and varying substantially year over year. 2016/ /19 Business Plan 22

23 PRIMARY TARGETS SECONDARY TARGET Kilograms (millions) Total Paint Processed Litres (millions) Kg. per Capita Core Cost per Kg. Recovery Rate Percent Total Cost per Kg. 2012/13 Result $1.53 7% $ /14 Result $1.51 7% $ /15 Result $1.53 8% $ /16 Forecast $1.55 8% $ /17 Target $1.58 8% $ /18 Target $1.58 8% $ /19 Target $1.58 8% $1.62 Supplementary Indicator to Goal P2: Processing of Latex and Oil (Alkyd) Paint The following table identifies the types and amounts of material processed from products under the program. The total processed does not include material disposed of as this amount is tracked in the Supplementary Indicator entitled Disposal of Residual Materials. Latex Processed (kg) Percent of Total Processed* Oil Processed (Kg.) Energy Recovery Percent of Total Processed* 2012/13 Result 1,537,408 59% 1,066,361 41% 2013/14 Result 1,800,172 63% 1,056,235 37% 2014/15 Result 1,836,261 61% 1,174,087 39% 2015/16 Forecast 1,762,811 57% 1,350,200 43% *The Total Processed does not include material disposed of which is tracked in Supplemental Indicator Disposal of Residual Materials. Performance Measure P2.2: Total Amount of Spray Paint Cans Processed Annual targets are set to increase the total amount of eligible spray paint cans collected and processed under the program in accordance with the estimated amount discarded by Albertans. 2016/ /19 Business Plan 23

24 Primary Target 1. The Primary Target for 2015/16 is based on a 7% increase over the 2015/16 forecast; targets for succeeding years are based on a 5% growth rate. Secondary Target: Recovery Rate 1. Measures the amount of product processed as a percent of the amount of product purchased. PRIMARY TARGET SECONDARY TARGET Spray Paint Cans Recovery Rate Percent 2012/13 Result 365, % 2013/14 Result 420, % 2014/15 Result 515, % 2015/16 Forecast 538, % 2016/17 Target 575, % 2016/17 Target 599, % 2017/18 Target 628, % Action Plan for Performance Measure P Alternative Options for Spray Paint Can Recycling a) Currently the paint program is open which means additional processors can apply for funding eligibility and if successful, compete for business. Administration responds to any queries from companies considering applying for the program but does not actively seek them out. b) Any formal actions to increasing options for processing of spray paint cans will be reviewed in 2016/17. Performance Measure P2.3: Total Amount of Paint Containers Processed Annual targets are set to increase the total amount of eligible paint containers collected and processed under the program in accordance the estimated amount discarded by Albertans. Target 1. This performance measure was introduced in 2013/14; processors were requested to begin tracking and reporting the amount of paint containers recycled. The growth rates for the 2015/16 forecast and succeeding targets align with that of paint processed in Performance Measure P / /19 Business Plan 24

25 PAINT CONTAINERS PROCESSED* Metal Containers (Kg.) Plastic Containers (Kg.) Total (Kg.) 2013/14 Result 34,015 5,594 39, /15 Result 59,510 29,853 89, /16 Forecast 60,315 30,257 90, /17 Target 60,315 30,257 90, /18 Target 61,521 30,862 92, /19 Target 63,367 31,788 95,154 *This data represents empty paint containers recycled directly by registered Processors; it does not include containers diverted by collection sites (see supplementary indicator below), containers shipped to downstream recyclers or spray paint cans (see PM P2.2 for spray paint cans). Supplementary Indicator to Goal P2.3: Paint Containers Processed Beginning in 2013/14, municipal paint collection sites were surveyed to identify how they are handling empty containers. In 2015/16, 301 sites were surveyed and following are their results. PAINT CONTAINERS HANDLING METHODS AT COLLECTION SITES Collected by Processor Scrap Metal Landfill Combination of Processor/ Scrap Metal / Landfill 2013/14 Result 24% 49% 23% 4% 2014/15 Result 23% 59% 15% 3% 2015/16 Forecast 30% 64% 3% 3% Action Plans for Performance Measure P Increased Container Recycling a) Continue current informal efforts to encourage and enhance container recycling by municipal collection sites, processors, and downstream processors. Supplemental Indicator to Goal P2: Disposal of Residual Materials The following table identifies the amount of residual material disposed of in accordance with methods acceptable under the program e.g. solidified or contaminated paint and containers. The forecast reflects a 3.4% increase over 2014/15 to align with the growth in latex and oil processing. 2016/ /19 Business Plan 25

26 Landfill Disposal (Kg.) Residual material disposed of as a percent of total processed 2012/13 Result 240,952 9% 2013/14 Result 232,664 8% 2014/15 Result 379,631 13%* 2015/16 Forecast 392,538 13% *2014/15 was the first year that reporting of residual material was implemented as a monthly requirement from the two main processors who collect paint. Prior to that, the data was based on a monthly average. Goal P3: Paint and paint containers are recycled in an environmentally and socially responsible manner. Performance Measure P3.1: Environmental Assurance - Processors Ensure that Processors meet or exceed the Processor Qualification requirements and the Environmental Health and Safety Requirements of the program (every three years review compliance records of each paint processor compiled by Alberta Environment and Parks), and other applicable environmental requirements including transportation and export, to ensure proper collection and processing of material. Target 1. Processors sites are inspected on a regular basis to confirm compliance with paint program requirements. a) Deficiencies identified are corrected in accordance with approved timelines. Performance Measure P3.2: Environmental Assurance - Program Ensure that the overall impact of Alberta Recycling s policies and funding achieve high environmental outcomes and meet program standards without unanticipated negative environmental impacts. Target 1. An assurance review is completed annually for each Municipal Collection Site. a) Deficiencies identified are corrected in accordance with approved timelines. Goal P4: There is strong awareness and support for the paint recycling program. Performance Measure P4.1: Public Awareness and Support 1. The public is aware of the paint recycling program and the surcharges, and the levels of awareness increase over time, as measured by an independent polling firm. 2. The public supports the paint recycling program and the surcharges, and the levels increase over time, measured by an independent polling firm. 2016/ /19 Business Plan 26

27 Target 1. Develop a set of public information initiatives to increase the rate of awareness and support, bringing the levels closer to the maximum achievable e.g. continue providing funding to advertise registered paint collection sites. (Note: With respect to program awareness and support, as well as surcharge awareness, it is not cost-effective to actively pursue more than a 95% rate; in practical terms this is the maximum achievable. Similarly, a 75% rate for support for paying a fee is a reasonable maximum level.) Program Surcharges Awareness Support Awareness Support 2012/13 Result 51% 90% 42% 66% 2013/14 Result 68% 87% 41% 59% 2014/15 Result 68% 87% 41% 59% 2015/16 Forecast 69% 88% 42% 60% 2016/17 Target 70% 88% 43% 61% 2017/18 Target 71% 88% 43% 61% 2018/19 Target 72% 88% 43% 61% Performance Measure P4.2: Key Stakeholder Support Key stakeholders are aware of the paint recycling program and the surcharges, and the levels of awareness increase over time. Target 1. Enhancing stakeholder interaction a) Develop a set of public information initiatives for key stakeholders including municipalities and major retailers regarding the program and organization. Goal P5: There is strong participation in the collection of paint for recycling under the program. Performance Measure P5.1: Residential Participation and Access Participation and access to facilities, including municipal collection sites, return-to-retailer and processor sites, for Albertans to recycle their paint, paint containers and spray paint cans is improving. 2016/ /19 Business Plan 27

28 Primary Target 1. Increase the level of residential participation in disposing of leftover paint, paint containers and spray paint cans through collection sites operated year round and temporary roundups, measured by an independent polling firm. (Additionally, funding to advertise municipal collection sites will be available for the second year in a row to assist in raising program awareness and participation.) PRIMARY TARGET SUPPLEMENTARY INFORMATION Awareness of Collection Sites Participation Number of Collections Sites Number of Roundups 2012/13 Result N/A 36% /14 Result N/A 37% /15 Result 84% 37% /16 Forecast 85% 38% /17 Target 86% 39% /18 Target 87% 40% /19 Target 88% 40% Supplementary Indicator to Goal E3: Proximity to Collection Sites The proximity an Albertan has to a paint collection site is a new component added to measure access to recycling and for comparative purposes with other provincial programs. It is forecast that 85% of Albertans live within 45 minutes (rural) or 30 minutes (urban) to at least one of 310 paint collection sites; the actual percent will be documented in the 2015/16 Annual Report and this figure will be reviewed every three - four years. Performance Measure P5.2: Industrial, Commercial and Institutional (ICI) Participation The level of ICI participation is increasing in disposing of their paint into the program through processors and municipal collection sites. Target Action Plan for Performance Measure P Increasing ICI participation a) Continue informal efforts to enhance ICI roundups (including administration s attendance at events to assist in promoting the program) and collection (includes working directly with municipal collection sites to help address challenges to accepting ICI material). 2016/ /19 Business Plan 28

29 PAINT RECYCLING ALBERTA 2016/2017 BUDGET A B C D E F BUDGET FORECAST BUDGET ACTUAL ACTUAL ACTUAL 16/17 15/16 15/16 14/15 13/14 12/13 RECYCLING REVENUE 1 Advance Disposal Surcharges - Regular Paint 4,147,341 4,217,340 4,172,802 4,291,987 4,118,886 3,969,174 2 Advance Disposal Surcharges - Aerosol Paint 472, , , , , ,456 3 Income - ADS Interest 15,240 20,000 10,000 44,480 24,158 21,583 4 Other Revenue TOTAL REVENUES 4,635,437 4,710,196 4,722,217 4,938,811 4,663,024 4,508,939 RECYCLING EXPENDITURES 6 Municipal Collection Incentive 431, , , , , ,008 7 Processing - Oil and Latex 3,112,072 3,112,072 3,166,726 3,070,554 2,913,534 2,654,036 8 Processing - Aerosols 367, , , , , ,978 9 Processing - Bin Collection 308, , , , , , Processing - Thermal Destruction Paint Diverted Fuel Recovery 91,532 30,511 93,139 64,405 64,540 41, TOTAL RECYCLING EXPENDITURES 4,310,972 4,225,929 4,332,507 4,184,394 3,913,184 3,541,456 RECYCLING DEVELOPMENT PROGRAMS 14 Recycling Dev - Research Projects 30, ,700 18, Recycling Dev - Ambassador Program 4,500 4,000 4,000 3,024 2,223 1, Recycling Dev - Stakeholder Information 4,500 4,000 4,000 1, , Recycling Dev - Public Information 54,734 36,900 48,900 22, ,807 10, Recycling Dev - Municipal Assistance 56,050 20,100 12,100 14,462 19,281 46, Recycling Dev - Market Development , TOTAL RECYCLING DEVELOPMENT PROGRAM EXPENDITURES 149,784 65,000 69,000 55, ,288 70,492 ADMINISTRATIVE EXPENDITURES 21 Salaries and Benefits 239, , , , , , Professional Fees 74,765 61,676 69,562 62,717 67,812 60, Board and Council 43,634 33,533 39,174 23,170 28,735 38, Compliance and Assurance Reviews 25,127 98, ,231 49,778 38, , Office Administration 113, , ,261 84, , , Interest Expense - 1,500 4,500 6,000 10, TOTAL ADMINISTRATIVE EXPENDITURES 496, , , , , , TOTAL EXPENDITURES 4,957,661 4,790,891 4,957,154 4,647,057 4,475,618 4,059, RECYCLING REVENUE OVER (UNDER) EXPENDITURES (322,224) (80,695) (234,937) 291, , , / /19 Business Plan 29

30 2016/ /19 Business Plan 30

31 TIRE RECYCLING ALBERTA GOALS, PERFORMANCE MEASURES & SUMMARY BUDGET Goal T1: Ensure program sustainability by confirming surcharge and funding rates are appropriate and effectively managed. Performance Measure T1.1: Program Sustainability To ensure program sustainability, provide regular analysis and projections of revenues and expenditures to demonstrate that the resulting Fund balance is being maintained consistent with Board directions, including: 1. Surcharge revenues remitted on the sales of tires; 2. Program expenditures on the collection and processing of tires; 3. Investment earnings and changes in market value; 4. Potential impacts of factors affecting the Fund balance, for example technology change, processing costs, product life span changes and recovery rates. 5. Operating Reserve - the minimum fund balance set by the Board. Targets 1. Provide regular reports against the program revenues and expenditures projection. 2. Identify any changes and provide possible adjustment scenarios for surcharge rates and/or program funding rates, including timelines and resulting Fund balances (please refer to the graph on page 33). Action Plans for Performance Measure T Funding Priority for Processed Tire Material a) The Tire Recycling Alberta Industry Council is to identify and review options for funding strategies and priorities, for consideration by the Board. For example: i. Higher priority for lower cost options e.g. tire-derived aggregate (TDA) or higher priority for higher value-added/environmental options including mulch, crumb or manufactured product. ii. Priority access to TDA funding for new versus repeat applicants or small versus large users. 2. Transportation Incentive Model a) Monitor the impact of the reload rates implemented in 2015/16 for the Calgary-based marshalling yard. b) Continue discussions with the Processors regarding a long-term transportation model. 3. Operating Reserve Policy for Managing Target a) Confirm standard operating reserve policy. i. Enhance Public/Stakeholder awareness of purpose of funds. Communication of elements in Policy statements. 2016/ /19 Business Plan 31

32 Supplementary Indicator to Goal T1 - Ensuring Revenue Completeness Alberta Recycling is required to identify and register companies that supply designated tires in Alberta to ensure that the surcharge is remitted on the sale of all eligible tires. Every three years a supplieridentification project is completed to confirm that companies who have not been contacted before are made aware of the program and registered if appropriate. To ensure suppliers accurately charge and remit the funds collected on all sales, compliance reviews are employed, with the remitters selected through a risk-based sampling process. Total Number of Remitters Registered as of April 1/15 Category Size & Average ADS collected per month Forecast for Reviews to be Completed in 2015/ Small; <$ Medium; $500 - $2, Large; >$2, , Performance Measure T1.2: Sustainability of Recycling Industry Verify that the current levels of program funding are adequate to sustain the collection and processing of tires within Alberta s recycling industry. 1. At least every four years, conduct a comprehensive Sustainability Review to determine if there is a need to adjust program funding rates, based on a professional audit of all processors receiving program funding and an assessment of the financial sustainability of the processing industry. 2. In the intervening years, conduct an analysis of key financial information from processors to identify any significant financial changes that have occurred since the program s last Sustainability Review. Target 1. Conduct an analysis of key business financial data from processors to identify any significant financial changes from the 2014/15 Sustainability Review. 2016/ /19 Business Plan 32

33 2016/ /19 Business Plan 33

34 Goal T2: All designated scrap tires are collected and processed. Performance Measure T2.1: Total Amount of All Tires Processed Annual targets are set to increase the total amount of tires collected and processed under the program in accordance with estimates of the amount discarded by Albertans, measured by primary and secondary targets. The goal of collecting and recycling all designated scrap tires is an over-arching one that is to be continually strived for; the annual targets are set to drive an increase each year which will ensure progress toward the goal. The escalating targets are set based on the trend of previous results as well as market expectations for both the annual sales of the designated materials and for the recycled materials. Primary Targets 1. Tires Processed car, light truck, medium truck, off-road, specialty, industrial and other tires The target of 55,493 tonnes in 2016/17 reflects a decrease in sales over the previous year due to the downturn in the economy; fewer purchases of tires equates to fewer discards of tires for recycling. The succeeding targets illustrate recovery with year over year increases of approximately 3% and 5%. 3. Amount processed per capita Presenting the per capita rate provides a better indicator of progress by factoring out population increase. Additionally, a kg/capita indicator is useful for comparing the effectiveness of programs in different jurisdictions of varying sizes. 4. Core cost per Kg. The core cost for the program including collection, processing, and program administration. TOTAL TIRES PROCESSED (TONNES) KG. PER CAPITA CORE COST PER KG. 2012/13 Result 59, $ /14 Result 70,277* $ /15 Result 68, $ /16 Forecast 63, $ /17 Target 55, $ /18 Target 57, $ /19 Target 59, $0.40 *Reducing stockpiles at processor sites in 2013/14 contributed in large part to the ~18% increase in processing over the previous year. 2016/ /19 Business Plan 34

35 Secondary Target 1. Recovery Rate The recovery rate measures the amount of product processed as a percent of the amount of product purchased in a year. It is a useful secondary target to track trends in changes to the recovery of material over time- how much of the annual inflow of new tires is offset by the amount of scrap tires removed - indicating whether the effectiveness of the program is increasing, decreasing or leveling off. a. The recovery rates for passenger, light truck and medium are presented separately from OTR as there is a substantial difference in the discard (lifespan) and collection process, with OTR rendering a much lower rate. 2. Total Cost per Kg. The total cost for the program includes developmental funding e.g. communications and research and development, elements intended to enhance program effectiveness but considered over and above the primary target of direct program costs, and varying substantially year over year. RECOVERY RATE PERCENT FOR CAR, LIGHT TRUCK AND MEDIUM TRUCK TIRES RECOVERY RATE PERCENT FOR OTR, SPECIALTY, INDUSTRIAL & OTHER TIRES TOTAL COST PER KG. 2012/13 Result 85% 14% $ /14 Result 87% 56% $ /15 Result 85% 30% $ /16 Forecast 91% 65% $ /17 Target 83% 46% $ /18 Target 82% 40% $ /19 Target 82% 40% $ / /19 Business Plan 35