2017/ /20 BUSINESS PLAN

Transcription

1 2017/ /20 BUSINESS PLAN

2 TABLE OF CONTENTS Page # 1. Mandate. 3 Accountability Statement Vision, Mission & Mandate Strategic Action Plans 2. Electronics Recycling Alberta... 6 Goals, Performance Measurement, Strategic Action Plans 2017/18 Summary Budget 3. Paint Recycling Alberta Goals, Performance Measurement, Strategic Action Plans 2017/18 Summary Budget 4. Tires Recycling Alberta Goals, Performance Measurement, Strategic Action Plans 2017/18 Summary Budget 5. Household Hazardous Waste Contract Goal APPENDIX Governance Structure Operating Principles Long Term Strategic Directions Position on Reuse and Recycling Organization 2017/ /20 Business Plan 2

3 ACCOUNTABILITY STATEMENT The Alberta Recycling Management Authority (Alberta Recycling) Business Plan for the three years commencing April 1, 2017 was prepared in accordance with the requirements found in Section 16 of the Designated Material Recycling and Management Regulation (Alberta Regulation 93/202), 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 Parks Business Plan 1, and therefore the Government s goals and objectives. Alberta Recycling is committed to achieving the performance targets identified in the Business Plan. We benefit in doing so by an innovative approach to environmental stewardship, characterized by: a commitment to high environmental outcomes through cost-effective solutions; multiple programs managed jointly but separately to achieve synergies and cost-effectiveness; stakeholder stewardship in which those directly involved in or impacted by end-of-life management of designated products including the industries that manufacture and sell them; Albertans that use and discard them; municipalities, First Nations and Métis Settlements that collect them for recycling, and the environmental organizations that advocate recycling of the material all guide and/or influence the policies and programs. Approved by the Board of Directors, Alberta Recycling February 28, 2017 Bob Barss, Chair / /20 Business Plan 3

4 VISION, MISSION AND MANDATE 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 of managing revenues to achieve high environmental outcomes for 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 its Budget, Business Plan, and Annual Report. The Designated Material Recycling and Management Regulation (the Regulation) authorizes Alberta Recycling to levy and collect advance disposal surcharges (surcharges) on the sale or supply of designated material in Alberta. These funds are to be used to provide or pay for any or all of the following elements regarding designated material: Waste minimization and recycling programs; Public information programs for the promotion of waste minimization and recycling programs; Expenditures on the collection, transportation, storage, processing and disposal Research and development activities; Promote the uses of recycled materials and products. Alberta Recycling is authorized to manage three Designated Materials electronics, paint, and tires through a process called multi-material stewardship. Fundamental to this process is ensuring that revenue from one program is not diverted to another program, while at the same time realizing the synergies and cost-effectiveness of operating under a single organization. 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 an Annual Report and Annual General Meeting. 2017/ /20 Business Plan 4

5 Strategic Action Plans To provide direction to the annual business planning process, the Board of Directors develops strategic action plans that are incorporated within the applicable Performance Measures of the electronics, paint, and tire recycling program sections. Additionally the following four organizational action plans (for Alberta Recycling as a whole) were developed by the Board. 1. Administration of Recycling Programs for Other Jurisdictions Other jurisdictions may request assistance from Albert Recycling in the design of new programs or in the ongoing administration of a new program. Status: Ongoing a) Continue to bring requests back to the Board for consideration and address them on a case-bycase basis. 2. Confirm Positions on Reuse and Energy Recovery of Designated Materials These positions are developed to address environmental processes that are outside the scope of the approved incentive programs for electronics, paint and tires. Status: Annual review of position statements to be completed at July 2017 Board Planning Session. a) 2016 approved position statements on reuse and energy recovery can be found in the Appendix section under Strategic Directions. 3. Maintain an Open Program The Board confirmed that the incentive programs are open to all eligible processors, to provide competitive options for collection and processing. Status: Ongoing a) Administration is to continue providing information and program requirements to businesses interested in registering with the program. 4. Strategic Organization Communication Issues Status: In Process a) Social Media and public information i. Administration to prepare a social media strategy including a cost-benefit analysis. b) Stakeholder communication i. Continue to maintain relationships with stakeholders and communicate with them regularly; potential to present or host sessions at AUMA and AAMDC Conferences and/or meet with their Boards. ii. Ask for input from stakeholders. c) Government relations i. Continue to meet with all levels of government officials. 2017/ /20 Business Plan 5

6 2017/ /20 Business Plan 6

7 ELECTRONICS RECYCLING ALBERTA GOALS, PERFORMANCE MEASURES AND SUMMARY BUDGET Goal E1: All end-of-life designated electronics are collected and processed. In accordance with the long term strategic direction of program completeness, the goal of collecting and recycling all designated electronics is over-arching, to be continually strived for, with performance measures set to ensure progress toward the goal. Performance Measure E1.1: Total amount of end-of-life electronics processed Annual targets are set to drive an increase each year in the total amount of end-of-life (EOL) designated electronics collected and processed to measure progress toward recycling of the material discarded by Albertans. The targets are set based on the trend of previous years results and market expectations for both the annual sales of designated material and recycled material. Primary Targets 1. Total tonnes processed The forecast for 2016/17 shows a decrease of 17% over the previous year, which reflects a significant decrease in sales due to the downturn in the economy - with fewer units purchased, fewer electronics are discarded. The flat projections indicate sales are not anticipated to recover in the next three years. 2. Amount processed per capita Presenting the per capita rate provides a better indicator of progress than changes in population. Additionally the kg. /capita indicator is useful to compare the program s effectiveness with programs in other jurisdictions. 3. Total Cost per kg. The total cost for the program includes developmental funding e.g. education, and research and development. These components are intended to enhance program effectiveness. Secondary Targets There are two secondary targets which provide additional information for assessing progress on this performance measure. 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 EOL electronics removed indicating whether the effectiveness of the program is increasing, decreasing or levelling off. 2. Core cost per kg. The core cost for the program includes collection, processing, and program administration, which is a measure of direct recycling costs. However, it can be difficult to compare between jurisdictions as their scope of core costs may not include the same elements. 2017/ /20 Business Plan 7

8 Processed (tonnes) PRIMARY TARGETS Kg. per Capita Total Cost per Kg. SECONDARY TARGETS Recovery Rate Core Cost Per Kg. 2013/14 Result 17, $ % $ /15 Result 18, $ % $ /16 Result 16, $ % $ /17 Forecast 13, $ % $ /18 Target 13, $ % $ /19 Projection 13, $ % $ /20 Projection 13, $ % $1.05 Supplementary Indicator to Performance Measure E1.1: Processed Materials The following table identifies the types and amounts 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 into rebar; lead recovered from leaded glass through smelting; copper wire recycled into copper feedstock; precious metals recovered from computer chips. Material 2013/14 Result (tonnes) 2014/15 Result (tonnes) 2015/16 Result (tonnes) 2016/17 Forecast (tonnes) Glass 6,399 6,765 5,331 4,408 Plastic 4,970 6,073* 5,694 4,708 Metals 5, ,818 3,984 Other** Total 17,994 18,773 16,682 13,794 *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. **Includes batteries, toner and inks, wire and cables, and wood. Supplementary Indicator to Performance Measure E1.1: 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 sent to landfill. Total Disposed (tonnes) Total Processed (tonnes) Percent of Total Processed 2013/14 Result 87 17, % 2014/15 Result 74 18, % 2015/16 Result 88 16, % 2016/17 Forecast 73 13, % 2017/ /20 Business Plan 8

9 Goal E2: Ensure program sustainability by confirming surcharge and funding rates are appropriate and effectively managed. Ongoing financial analysis and projections will ensure that the Fund balance is consistent with Board directions, providing for longer term financial stability of the program. Performance Measure E2.1: Program Sustainability Ongoing financial analysis includes: 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. The Fund target and range set by the Board; 5. Potential factors that could impact the Fund balance e.g. changes in technology and product sales, processing costs, changes in product lifespan, and recovery rates. Target 1. Provide regular reports against program revenues and expenditure projections. 2. Identify any changes and provide possible adjustment scenarios for surcharge rates and/or program funding rates, including timelines and levelling off of the Fund balance (please refer to the graph at the end of this goal). Strategic Action Plan for Performance Measure E Electronics Program Expansion Update sales and weight information for proposed expansion products. Performance Measure E2.2: Ensuring Revenue Completeness Alberta Recycling is authorized by bylaw to identify and register companies that supply designated electronics in Alberta to ensure surcharges are collected and remitted on the sale of new designated electronics. 1. Every three years conduct a supplier identification project to research companies that may not be aware of the program, and register them if they fall within the definitions of the bylaw. 2. Conduct compliance reviews to ensure registered suppliers are charging the correct Surcharge on designated products and remitting the funds collected. 3. Suppliers are selected for review through a risk-based sampling process which includes: a) Sorting by size (small, medium and large) according to their average monthly Surcharge remittance. b) Sorting by the last date reviewed; those most recently reviewed rotate to the bottom of the list. c) Frequency of reviews: large category - every two years; medium category - every three years; small category on a case-by-case basis. 4. Over and above the risk-based sampling process, there are also a number of suppliers selected for review due to changes noted in remittance activity or challenges in confirming their registration status. This typically accounts for 20% of the reviews. 2017/ /20 Business Plan 9

10 Target (Under development) 1. The next supplier-identification project is scheduled for 2019/ In 2016/17 there are 73 reviews of suppliers scheduled, who represent 74% of reported revenue. 3. In 2015/16, reviews were completed with 79 suppliers who represented 6% of reported revenue. Average Surcharge per Month Suppliers 2015/16 Reviews Completed 2015/16 Estimated Suppliers 2016/17 Forecast Reviews 2016/17 Small <$ Medium $500 - $2, Large >$2, Total Percent of reported revenue 6% 74% Performance Measure E2.3: 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. Conduct a comprehensive Sustainability Review at least every three years, to determine if there is a need to adjust program funding rates. The review is to be comprised of a professional audit of all processors receiving program funding and an assessment of the financial stability of the processing industry. 2. In the intervening years, consult with processors to identify and analyze any significant changes occurring since the program s last Sustainability Review. Target (and Strategic Action Plan) 1. Board to review recommendations for rate adjustments based on the results of the 2016/17 Sustainability Review. 2017/ /20 Business Plan 10

11 2017/ /20 Business Plan 11

12 Goal E3: End-of-life electronics are processed in an environmentally and socially responsible manner. Because the program funds are collected and expended under Alberta Regulations, they are considered public funds which create a need to ensure that the results are environmentally and socially responsible. Performance Measure E3.1: Environmental Assurance Processors Ensure Processors meet or exceed the program s Processor Qualification Requirements, environmental health and safety requirements and other applicable environmental regulations including those related to transportation and export. This is to ensure proper collection and processing of EOL electronics material. Targets 1. Third-party annual compliance assurance reviews of all processors are completed in accordance with the requirements stated above. a) If deficiencies are identified, processors are required to address them in accordance with approved timelines. 2. Third-party desktop or onsite assurance reviews, determined on a case-by case basis, of downstream processors. a) If deficiencies are identified, the downstream processors are required to address them in accordance with approved timelines. 3. The 2017 Compliance Assurance Summary Report is completed and posted on Alberta Recycling s website. 4. In addition to the third-party assurance reviews, Alberta Recycling field staff conducts monthly inspections to confirm compliance with program requirements e.g. overall site conditions and monitoring of inventory. a) If deficiencies are identified, the processors are required to address them in accordance with approved timelines. Strategic Action Plans for Performance Measure E Innovation and Technology Upgrading Funding a) Implement Board direction to change funding terms in order to encourage more Alberta processing and Alberta-based jobs. 2. Responsible Recycling (R2) Standard 2 a) Obtain additional information regarding the R2 standard with the intent to consider adopting it for the Waste Electronics Incentive Program Requirements, with amendments as necessary e.g. reuse, small processors compliance. Performance Measure E3.2 Environmental Assurance Municipal Collection Sites Ensure that the overall impact of Alberta Recycling s policies and funding reinforce high environmental outcomes, consistent with terms of the funding grant, without unanticipated negative environmental impacts. 2 Established by Sustainable Electronics Recycling International (SERI) / /20 Business Plan 12

13 Target 1. Municipal Collection Sites are inspected annually to confirm adherence to the terms of the funding grant, e.g. secure storage of program material, signage visible to public. 2. If deficiencies are identified, they are addressed in accordance with approved timelines. Supplementary Indicator to Goal E3: Substances of Concern Diverted The following table identifies substances of concern removed from the total electronics processed as reported in E1.1. The weight of each material is calculated by multiplying the estimated amount contained in a product by the number of those products processed. Material Source 2013/14 Result 2014/15 Result 2015/16 Result 2016/17 Forecast Lead (tonnes) Mercury (kgs.) Cadmium (kgs.) Circuit boards, cathode ray tubes, TVs, monitors, CPU s, laptops, and printers. Batteries, lamps, batteries and switches, laptops Circuit boards, cathode ray tubes, insulated wire, TV s, monitors and CPU s Beryllium (kgs.) Circuit boards, TV s and monitors Antimony (tonnes) Circuit board, CPU s, laptops, and printers Goal E4: There is strong awareness and support for the electronics recycling program. Public, stakeholder and industry awareness and support are critical for the programs. Performance Measure E4.1: Public Awareness and Support 1. An independent research firm will track: a) Public awareness of the electronics recycling program and surcharges, and the increasing levels of awareness and support over time b) Public support for the electronics recycling program and surcharges, and the levels of support increase over time. Target 1. Regarding program and surcharge awareness and program support, in practical terms the maximum achievable is 90%. Similarly a 65% rating of support from the public for surcharges is a reasonable maximum level. 2017/ /20 Business Plan 13

14 PROGRAM SURCHARGES Awareness Support Awareness Support 2013/14 Result 72% 91% 62% 55% 2014/15 Result 70% 91% 60% 55% 2015/16 Result 70% 89% 55% 53% 2016/17 Forecast 70% 88% 55% 50% 2017/18 Target 70% 88% 56% 51% 2018/19 Projection 71% 89% 57% 52% 2019/20 Projection 72% 90% 58% 53% 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. Employ a set of public information initiatives for key stakeholders such as provincial and municipal governments, industry and the general public that will include: a) Distribution of Progress Report (presents highlights of Annual Report); b) Distribution of Municipal Collection Site Newsletter; c) Participation at conferences, tradeshows and community events; d) 2017 Collection Site Awards of Excellence; e) Meetings with electronics suppliers; f) Regional meetings with municipalities, waste authorities/commissions, First Nations and Métis Settlements. Goal E5: There is strong participation in the collection of electronics for recycling under the program. Participation is the basis for higher levels of recovery, which is fundamental to program completeness. Performance Measure E5.1: Residential Participation and Access Participation and access to facilities including municipal collection sites, voluntary return-to-retailer and processors sites for Albertans to recycle their EOL electronics is improving. Primary Target 1. Increase the level of residential participation for recycling EOL electronics through collection sites that operate year round, measured by an independent research firm. 2017/ /20 Business Plan 14

15 2. Communicate the benefits of the collection site grant program to municipalities, First Nations and Metis Settlements that have not yet registered. 3. Proximity to collection sites an average of 99.4% percent of the population live within a 45 minute drive to rural sites or a 30 minute drive to urban sites. These parameters were developed by programs in other provinces and are being used by Alberta for comparative purposes. a) Due to the rating being so high, Alberta Recycling proposes to develop more demanding parameters e.g. a smaller radius, shorter duration requiring higher accessibility, which is why the target and projections are decreased. Awareness of Registered Collection Sites Participation Registered Collections Sites Proximity to Registered Collection Sites 2013/14 Result 80% 37% /15 Result 86% 39% /16 Result 88% 39% /17 Forecast 89% 40% % 2017/18 Target 90% 41% % 2018/19 Projection 90% 42% % 2019/20 Projection 90% 43% % Supplementary Indicator to Goal E3: Roundup Program Electronics roundups provide temporary access to electronics recycling. The forecast for 2016/17 may signal the start of a decline in the number of roundups with the increasing set up of permanent sites that provide the convenience of a year-round service. Number of Roundups 2013/14 Result /15 Result /16 Result /17 Forecast / /20 Business Plan 15

16 Performance Measure E5.2: Industrial, Commercial and Institutional (ICI) Participation The level of participation by the ICI sector in recycling their EOL electronics through the program is increasing. Target 1. Complete Phase Three and Four of the School and Post-Secondary Institution Roundup Grant Pilot. Encourage the roundup applicants to accept EOL computer equipment and TVs from the ICI sector in the pilot. 2. Enhance and increase usage by processors of the ICI Roundup Grant to increase ICI recovery. These 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. The forecast along with the target and projections for the estimated ICI to be collected are flat, in conjunction with the amount processed. Total Tonnes Processed (Residential & Non- Residential) Estimated Non- Residential Tonnage (Direct Collection) Percent of Total Processed 2013/14 Result 17,994 4, % 2014/15 Result 18,773 5, % 2015/16 Result 16,682 4, % 2016/17 Forecast 13,974 4, % 2017/18 Target 13,974 4, % 2018/19 Projection 13,974 4, % 2019/20 Projection 13,974 4, % 2017/ /20 Business Plan 16

17 ELECTRONICS RECYCLING ALBERTA 2017/2018 BUDGET A B C D E F BUDGET FORECAST BUDGET ACTUAL ACTUAL ACTUAL 17/18 16/17 16/17 15/16 14/15 13/14 RECYCLING REVENUE 1 Advance Disposal Surcharges 7,197,565 7,288,972 7,473,253 7,879,009 9,756,601 10,348,262 2 Income - ADS Interest 8,000 8,000 5,000 15,169 13,173 26,533 3 Income - Other Income (NWT Contract Revenue) 36,000 36,000 36,000 24, ,109 4 TOTAL REVENUES 7,241,565 7,332,972 7,514,253 7,919,012 9,770,342 10,375,904 RECYCLING EXPENDITURES 5 Municipal Collection Incentive 1,167,386 1,167,386 1,530,360 1,269,233 1,435,766 1,447,181 6 Transportation and Handling 1,344,776 1,344,778 1,652,749 1,475,803 1,455,260 1,149,504 7 Processing Incentives 9,655,800 9,655,800 11,525,499 11,672,994 13,141,054 12,595,678 8 Fuel Recovery - - 9, ,777 50,038 9 TOTAL RECYCLING EXPENDITURES 12,167,962 12,167,964 14,718,525 14,418,053 16,091,856 15,242,400 RECYCLING DEVELOPMENT PROGRAMS 10 Recycling Dev - Action Items 455, , ,000 74,206 50, , Recycling Dev - Innovation Funding 770, ,000 48,335 40, Recycling Dev - Average Weights 50,000 50,000 50, , Recycling Dev - Pilot Projects , Recycling Dev - Ambassador Program 10,000 20,000 20,000 16,959 6,657 18, Recycling Dev - Stakeholder Information 20,000 10,000 20,000 9, ,918 4, Recycling Dev - Public Information 124,403 98, , ,216 1, , Recycling Dev - Issues Management Recycling Dev - Rural Alberta Projects 60,000 60,000 60,000 23,336 26,544 38, Recycling Dev - Municipal Assistance 352, , , , , , Recycling Dev - Market Development , TOTAL RECYCLING DEVELOPMENT PROGRAM EXPENDITURES 1,841, ,390 2,273, , ,761 1,114,244 ADMINISTRATIVE EXPENDITURES (Includes estimate of NWT contract related administration costs of $36,000)* 22 Salaries and Benefits 1,047, ,550 1,039,555 1,096,850 1,151,495 1,142, Professional Fees 199, , , , , , Board and Council 151, , , ,641 89, , Compliance and Assurance Reviews 314, , , , , , Administration 486, , , , , , TOTAL ADMINISTRATIVE EXPENDITURES 2,200,747 2,056,837 2,285,873 2,105,689 2,304,398 2,701, TOTAL EXPENDITURES 16,210,212 15,010,192 19,278,181 16,956,563 19,394,015 19,058, RECYCLING REVENUE OVER (UNDER) EXPENDITURES (8,968,647) (7,677,220) (11,763,928) (9,037,551) (9,623,673) (8,682,545) 2017/ /20 Business Plan 17

18 2017/ /20 Business Plan 18

19 PAINT RECYCLING ALBERTA GOALS, PERFORMANCE MEASURES AND SUMMARY BUDGET Goal P1: All end-of-life designated paint and paint containers are collected and processed. In accordance with the long term strategic direction of program completeness, the goal of collecting and recycling all designated paint and paint containers is an over-arching one to be continually strived for. Performance measures are set to ensure progress toward the goal. Performance Measure P1.1: Total Amount of End-of-Life Paint and Containers Processed Annual targets are set to drive an increase each year in the total amount of designated end-of-life (EOL) paint and paint containers collected and processed in accordance with the estimated amount discarded by Albertans. The targets are set based on the trend of previous results and market expectations for both the annual sale of designated material and recycled material. Primary Targets 1. Total paint processed For the first time in the paint program s history, the forecast shows a decrease of 13.8% over the prior year, with the target and projections decreasing, reflecting the downturn in the economy. With less paint and fewer paint containers purchased, there is a reduction in the amount of material discarded for recycling. The flat target and projections indicate sales are not anticipated to recover in the next three years. The equivalent number of litres is presented 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 progress than changes in population. Additionally the kg. /capita indicator is useful to compare the program s effectiveness with programs in other jurisdictions. 3. Total cost per Kg. The total cost for the program includes developmental funding e.g. education, and research and development. These components are intended to enhance program effectiveness. Secondary Targets 1. Recovery rate (and capture rate) The recovery rate measures the amount of product processed as a percent of the amount purchased in a year. It is a useful secondary target to track trends in changes to recovery of material over time - how much of the annual inflow of new paint will be identified as EOL and recycled - indicating whether the effectiveness of the program is increasing, decreasing or leveling off. A similar performance measure is capture rate, measuring the total amount processed as a percent of an estimated total amount of paint considered end-of-life. Because very little of the paint sold is leftover after use, the recovery rate is very low compared to most other materials, making the capture rate a more useful performance measure for paint. 2017/ /20 Business Plan 19

20 Industry estimates that 85-90% of the paint sold is used, leaving 10-15% identified as EOL. For program reporting, the EOL paint amount is considered 12%. For example, if 100 litres of paint is sold, 12 litres (12%) will be EOL. If 8 litres is recovered that results in: a recovery rate of 8% (8 litres recovered / 100 litres sold); or a capture rate of 66.7% (8 litres recovered / 12 litres EOL) 2. Core cost per Kg. The core cost for the program including collection and processing, and program administration. Kilograms (millions) Total Paint Processed PRIMARY TARGETS Litres (millions) Kg. per Capita Total Cost per Kg. Recovery Rate SECONDARY TARGET Capture Rate Core Cost per Kg. 2013/14 Result $ % 58.7% $ /15 Result $ % 61.7% $ /16 Result $ % 61.2% $ /17 Forecast $ % 61.4% $ /18 Target $ % 60.7% $ /19 Projection $ % 57.7% $ /20 Projection $ % 57.7% $1.72 Supplementary Indicator to Performance Measure P1.1: 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 it 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 2013/14 Result 1,800, % 1,056, % 2014/15 Result 1,836, % 1,174, % 2015/16 Result 1,824, % 1,307, % 2016/17 Forecast 1,651, % 1,049, % 2017/ /20 Business Plan 20

21 Performance Measure P1.2: Total Amount of Spray Paint Cans Processed Normally, 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. However, with the downturn in the Alberta economy, the target and projections are flat. Primary Targets 1. The forecast shows a 5% increase over 2015/16 which reflects the increase in the recovery rate over time. It is expected that the increased recovery rate will be maintained therefore the Projections are held constant over 2017/18. Secondary Targets 1. Measures the amount of product processed as a percent of the amount of product purchased. PRIMARY TARGET Spray Paint Cans Processed SECONDARY TARGET Recovery Rate Percent 2013/14 Result 420, % 2014/15 Result 515, % 2015/16 Result 537, % 2016/17 Forecast 564, % 2017/18 Target 564, % 2018/19 Projection 564, % 2019/20 Projection 564, % Performance Measure P1.3: Total Amount of (Non-Spray) Paint Containers Processed Annual targets are set to increase the total amount of eligible paint containers collected and processed under the program in accordance with the estimated amount discarded by Albertans. This performance measure was introduced in 2013/14 with registered processors directed to begin tracking and reporting the amount of paint containers recycled. Target 1. An incentive rate for the recycling of non-spray paint containers will be introduced on April 1, The intent is to encourage a higher level of collection and recycling. However, the downturn in the economy impacts sales which is reflected in the decrease in the amount processed. 2017/ /20 Business Plan 21

22 (NON-SPRAY) PAINT CONTAINERS PROCESSED Metal Containers (Kg.) Plastic Containers (Kg.) Total (Kg.) 2013/14 Result 34,015 5,974 39, /15 Result 59,510 29,853 89, /16 Result 80,089 78, , /17 Forecast 69,071 67, , /18 Target 68,364 67, , /18 Projection 64,946 63, , /19 Projection 64,946 63, ,778 Supplementary Indicator to Goal P1: Paint Containers Processed In 2013/14 surveying began of municipal paint collection sites to track the outcome of empty paint containers. SURVEY OF PAINT CONTAINER 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 Result 29% 67% 2% 2% 2016/17 Result 27% 70% 2% 1% *amount included in data table for Performance Measure P / /20 Business Plan 22

23 Supplementary Indicator to Goal P1: 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 an increase in the disposal of containers which could be reduced in the comings years with the new (nonspray) paint container incentive effective April 1, Total Disposed (Kg.) Total Processed (Kg.) Residual material disposed of as a percent of the total processed 2013/14 Result 232,664 2,856, % 2014/15 Result 379,631 3,010, % 2015/16 Result 234,292 3,132, % 2016/17 Forecast 323,323 2,701, % Goal P2: Ensure program sustainability by confirming surcharge and funding rates are appropriate and effectively managed. Ongoing financial analysis and projections will ensure that the Fund balance is consistent with Board directions, providing for longer term financial stability of the program. Performance Measure P2.1: 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 sale of eligible paint and paint containers; 2. Program expenditures on the collection and processing of end-of-life (EOL) paint and paint containers; 3. Investment earnings and changes in market value; 4. The Fund target and range set by the Board; 5. Potential impacts of factors that could impact the Fund balance e.g. changes in technology, processing costs, product life-span changes and recovery rates. Target 1. Provide regular reports against the program revenues and expenditures projection. 2. Identify any changes and provide possible adjustment scenarios for surcharges and/or program funding rates including timelines and resulting Fund balances (please refer to the fund graph at the end of this goal). Strategic Action Plans for Performance Measure P Paint Surcharge Increase a) Develop a proposal to adjust the surcharge rates for the sustainability of the paint program for submission to the Government of Alberta. The proposal is to incorporate the following two priorities: 2017/ /20 Business Plan 23

24 i. Reach the Fund target in approximately five years after implementation of the surcharge increase. ii. Eliminate additional processor fees charged to municipalities for collection of leftover paint and containers. b) The development of this proposal is to include input from municipalities and an alternative solution in the event that the Government of Alberta does not approve the increase. 2. Tiered Incentive Funding a) Provide an analysis of tiered incentive funding for latex and oil processing. b) Any changes are to be implemented subsequent to an increase in the paint surcharges. 3. Paint Container Recycling Incentive a) Develop a modified budget based on a recommended incentive rate and start date of April Performance Measure P2.2: Ensuring Revenue Completeness Alberta Recycling is authorized by bylaw to identify and register companies that supply designated paint and paint containers in Alberta to ensure surcharges are collected and remitted on the sale of new designated paint products. 1. Every three years conduct a supplier identification project to research companies that may not be aware of the program, and register them if they fall within the definitions of the bylaw. 2. Conduct compliance reviews to ensure registered suppliers are charging the correct Surcharge on designated products and remitting the funds collected. 3. Suppliers are selected for review through a risk-based sampling process which includes: a) Sorting by size (small, medium and large) according to their average monthly Surcharge remittance. b) Sorting by the last date reviewed; those most recently reviewed rotate to the bottom of the list. c) Frequency of reviews: large category - every two years; medium category - every three years; small category on a case-by-case basis. 4. Over and above the risk-based sampling process, there are also a number of suppliers selected for review due to changes noted in remittance activity or challenges in confirming their registration status. This typically accounts for 20% of the reviews. Target (Under development) 1. The next supplier-identification project is scheduled for 2017/ In 2016/17 there are reviews scheduled with 33 suppliers, who represent 18% of reported revenue. 3. In 2015/16, reviews were completed with 31 suppliers, who represent 65% of reported revenue. 2017/ /20 Business Plan 24

25 Average Surcharge per Month Suppliers 2015/16 Reviews Completed 2015/16 Estimated Suppliers 2016/17 Forecast Reviews 2016/17 Small <$ Medium $500 - $2, Large >$2, Total Percent of reported revenue 65% 18% Performance Measure P2.3: 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. Conduct a comprehensive Sustainability Review at least every three years to determine if there is a need to adjust program funding rates. The review is to be comprised of a professional audit of all processors receiving program funding and an assessment of the financial stability of the processing industry. 2. In the intervening years, consult with processors to identify and analyze any significant changes occurring since the program s last Sustainability Review. Target 1. Consult with the processors to identify any significant changes occurring since the 2015/16 Sustainability Review. 2017/ /20 Business Plan 25

26 2017/ /20 Business Plan 26

27 Goal P3: End-of-life paint and paint containers are recycled in an environmentally and socially responsible manner. Because the program funds are collected and expended under Alberta Regulations, they are considered public funds which create a need to ensure that the results are environmentally and socially responsible. Performance Measure P3.1: Environmental Assurance Processors Ensure that Processors meet or exceed the program s Processor Qualification Requirements, environmental health and safety requirements and other applicable environmental regulations including those related to transportation and export. This is to ensure proper collection and processing of material. Target 1. Processor sites are inspected regularly to confirm compliance with program requirements e.g. overall site conditions and monitoring of inventory. a) If deficiencies are identified, they are addressed in accordance with approved timelines. 2. Every three years a comprehensive compliance review is conducted by a third-party to ensure processor conformance to program requirements. The next review is scheduled for 2017/18. Performance Measure P3.2: Environmental Assurance Municipal Collection Sites 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. Municipal collection sites are inspected annually to confirm adherence to program requirements e.g. secure storage of program material, signage visible to public. 2. If deficiencies are identified, they are addressed in accordance with approved timelines. Goal P4: There is strong awareness and support for the paint recycling program. Public, stakeholder and industry awareness and support are critical to the programs. Performance Measure P4.1: Public Awareness and Support 1. An independent research firm will track: a) Public awareness of the paint recycling program and surcharges, and the increasing levels of awareness and support over time. b) Public support for the paint recycling program and the surcharges, and the levels of support increase over time. Target 1. Regarding program and surcharge awareness and program support, in practical terms the maximum achievable is 90%. Similarly a 65% rating of support from the public for surcharges is a reasonable maximum level. 2017/ /20 Business Plan 27

28 PROGRAM SURCHARGES Awareness Support Awareness Support 2013/14 Result 68% 86% 41% 59% 2014/15 Result 68% 89% 46% 59% 2015/16 Result 71% 86% 46% 61% 2016/17 Forecast 72% 87% 47% 60% 2017/18 Target 73% 88% 48% 60% 2018/19 Projection 74% 89% 49% 61% 2019/20 Projection 75% 90% 50% 62% 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. Employ a set of public information initiatives for key stakeholders such as provincial and municipal governments, industry and the general public that will include: a) Distribution of Progress Report (presents highlights of Annual Report); b) Distribution of Municipal Collection Site Newsletter; c) Participation at conferences, tradeshows and community events; d) 2017 Collection Site Awards of Excellence; e) Meetings with paint suppliers; f) Regional meetings with municipalities, waste authorities/commissions, First Nations and Métis Settlements. Goal P5: There is strong participation in the collection of leftover paint and paint containers for recycling under the program. Participation is the basis for higher levels of recovery, which is fundamental to program completeness. Performance Measure P5.1: Residential Participation and Access Participation and access to facilities, including municipal collection sites, voluntary return-to-retailer and processor sites, for Albertans to recycle their paint, paint containers and spray paint cans is improving. 2017/ /20 Business Plan 28

29 Target 1. Increase the level of residential participation in disposing of EOL paint, paint containers and spray paint cans through collection sites that operate year-round and temporary roundups, measured by an independent research firm. 2. Communicate the benefits of the collection site grant program to municipalities, First Nations and Metis Settlements that have not yet registered. 3. Proximity to collection sites an average of 99.4 % percent of the population live within a 45 minute drive to rural sites or a 30 minute drive to urban sites. These parameters were developed by programs in other provinces and are being used by Alberta for comparative purposes. a) Due to the rating being so high, Alberta Recycling proposes to develop more demanding parameters e.g. a smaller radius, shorter duration requiring higher accessibility, which is why the target and projections are decreased. Awareness of Registered Collection Sites Participation Registered Collection Sites Proximity to Registered Collection Sites 2013/14 Result N/A 37% /15 Result 84% 37% /16 Result 85% 34% /17 Forecast 85% 34% % 2017/18 Target 86% 35% % 2018/19 Projection 87% 36% % 2019/20 Projection 88% 37% % Supplementary Indicator to Goal P5 Roundup Program Paint roundups provide temporary access to paint recycling. The forecast for 2016/17 may signal the start of a decline in the number of events with the increasing number of permanent sites being established. Number of Roundups 2013/14 Result /15 Result /16 Result /17 Forecast / /20 Business Plan 29

30 Performance Measure P5.2: Industrial, Commercial and Institutional (ICI) Participation The level of participation by the ICI sector in recycling their leftover paint and paint containers through the program is increasing. Target 1. Increasing ICI participation a) Continue informal efforts to enhance ICI roundups and collection. b) Work directly with municipal collection sites that do not accept ICI material volumes to help address the challenges of accepting it. i. Develop for Board consideration a proposal to incorporate an ICI paint collection facility e.g. locked sea can in every Tire Marshalling Area (established with Tire program funding) in the province. ii. Identify geographic gaps in ICI collection coverage and work with individual municipalities to develop a solution. 2017/ /20 Business Plan 30

31 PAINT RECYCLING ALBERTA 2017/2018 BUDGET A B C D E F BUDGET FORECAST BUDGET ACTUAL ACTUAL ACTUAL 17/18 16/17 16/17 15/16 14/15 13/14 RECYCLING REVENUE 1 Advance Disposal Surcharges - Regular Paint 3,881,541 3,912,115 4,147,341 4,410,133 4,291,987 4,118,886 2 Advance Disposal Surcharges - Aerosol Paint 426, , , , , ,673 3 ADS Increases - Regular Paint ADS Increases - Aerosol Paint Income - ADS Interest 9,000 12,000 15,240 16,617 44,480 24,158 6 Other Revenue (509) TOTAL REVENUES 4,317,485 4,351,059 4,635,437 4,928,575 4,938,811 4,663,024 RECYCLING EXPENDITURES 8 Municipal Collection Incentive 408, , , , , ,082 9 Processing - Oil and Latex 2,723,434 2,755,282 3,112,072 3,194,797 3,070,554 2,913, Processing - Aerosols 361, , , , , , Processing - Bin Collection 305, , , , , , Processing - Paint Containers 19, Processing - Thermal Destruction Paint Diverted Fuel Recovery ,532-64,405 64, TOTAL RECYCLING EXPENDITURES 3,818,056 3,830,742 4,310,972 4,291,974 4,184,394 3,913,184 RECYCLING DEVELOPMENT PROGRAMS 17 Recycling Dev - Research Projects 42,500 20,000 30,000 1,200 14,700 18, Recycling Dev - Ambassador Program 2,250 2,250 4,500 2,949 3,024 2, Recycling Dev - Stakeholder Information 4,500 4,500 4,500 1,416 1, Recycling Dev - Public Information 39,751 33,991 54,734 16,552 22, , Recycling Dev - Municipal Assistance 47,800 41,050 56,050 13,720 14,462 19, Recycling Dev - Market Development TOTAL RECYCLING DEVELOPMENT PROGRAM EXPENDITURES 136, , ,784 35,838 55, ,288 ADMINISTRATIVE EXPENDITURES 24 Salaries and Benefits 241, , , , , , Professional Fees 83, ,615 54,965 61,149 62,717 67, Board and Council 44,982 41,924 43,634 31,971 23,170 28, Compliance and Assurance Reviews 24,369 33,824 25,127 71,829 49,778 38, Office Administration 127, , ,481 77,318 84, , Interest Expense ,500 6,000 10, TOTAL ADMINISTRATIVE EXPENDITURES 522, , , , , , TOTAL EXPENDITURES 4,477,648 4,446,410 4,937,861 4,766,553 4,647,057 4,475, RECYCLING REVENUE OVER (UNDER) EXPENDITURES (160,163) (95,351) (302,424) 162, , , / /20 Business Plan 31

32 2017/ /20 Business Plan 32

33 TIRE RECYCLING ALBERTA GOALS, PERFORMANCE MEASURE AND SUMMARY BUDGET Goal T1: All end-of-life designated tires are collected and processed. In accordance with the long term strategic direction of program completeness, the goal of collecting and recycling all designated tires is an over-arching one to be continually strived for. Performance measures are set to ensure progress toward the goal. Performance Measure T2.1: Total amount of end-of-life designated tires processed Annual targets are set to drive an increase in the total amount of end-of-life designated tires collected and processed in accordance with the estimated amount discarded by Albertans, measured by primary and secondary targets. The targets are set based on the trend of previous results and market expectations for both the annual sale of designated material and recycled material. Primary Targets 1. Total tires processed The forecast of 54,740 tonnes in 2016/17 is approximately 26% less than the previous year, reflecting a significant decrease in sales due to the downturn in the economy - fewer tires purchased equates to fewer tires discarded for recycling. The target shows a further decline with flat projections for the remaining two years, indicating sales are not anticipated to recover in the next three years. 2. Amount processed per capita Presenting the per capita rate provides a better indicator of progress than changes in population. Additionally the kg. /capita indicator is useful to compare the program s effectiveness with programs in other jurisdictions. 3. Total cost per Kg. The total cost for the program includes developmental funding e.g. education, and research and development. These components are intended to enhance program effectiveness but are considered over and above the primary target of core program costs and vary substantially yearover-year. Total Tires Processed (Tonnes) Kg. per Capita Total Cost per Kg. 2013/14 Result 70,277* $ /15 Result 68, $ /16 Result 68, $ /17 Forecast 54, $ /18 Target 50, $ /19 Projection 50, $ /20 Projection 50, $0.41 *Inventory reduction at processor sites in 2013/14 resulted in the largest annual amount of tires recycled in the history of the tire program. 2017/ /20 Business Plan 33

34 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 tires is offset by the amount of scrap tire removed indicating whether the effectiveness of the program is increasing, decreasing or levelling off. a) The recovery rates for car, light truck, medium truck, specialty, industrial and other (SIO) tires are presented separately from off-the-road tires (OTR) as there is a substantial difference in the discard (lifespan) and collection process, with OTR rendering a much lower rate. 2. Core Cost per Kg. The core cost for the program including collection and processing, and program administration. Recovery Rate for Car, Light Truck, Medium Truck and SIO Tires Recovery Rate for OTR Tires Core Cost per Kg. 2013/14 Result 86% 56% $ /15 Result 85% 29% $ /16 Result 97% 80% $ /17 Forecast 88% 54% $ /18 Target 83% 45% $ /19 Projection 83% 45% $ /20 Projection 83% 45% $0.37 Supplementary Indicator to Performance Measure T1.1: Amount Processed by Tire Type Car, Light Truck, SIO Tires (Tonnes) Medium Truck Tires (Tonnes) OTR Tires (Tonnes) 2013/14 Result 42,461 21,572 6, /15 Result 42,083 22,916 3, /16 Result 39,976 23,339 5, /17 Forecast 33,097 19,305 2, / /20 Business Plan 34

35 Supplementary Indicator to Performance Measure T1.1: Processed Material The following table identifies the recycled materials processed from scrap tires - manufactured product, rubber crumb and shred - as a percent of the total amount of tires processed. 2013/14 Result 2014/15 Result 2015/16 Result 2016/17 Forecast Tonnes % of Total Processed Tonnes % of Total Processed Tonnes % of Total Processed Tonnes % of Total Processed Rubber Crumb 32,915 47% 37,585 55% 39,366 57% 31,405 57% Tire-derived aggregate (TDA) for civil engineering projects 26,776 38% 21,122 31% 20,933 31% 12,935 24% Mulch 974 1% 6,306 9% 8,360 12% 10,400 19% TDA for energy recovery Whole tires for energy recovery Manufactured Product 1,270 2% 1,298 2% ,591 4% 1,787 3% ,751 8% N/A N/A N/A N/A N/A N/A TOTAL 70, % 68, % 68, % 54, % 1. Rubber Crumb: Particles of rubber ground from shred, ranging in size from pea-gravel (#3 mesh) to fine powder, with the steel and fibre removed. Uses for rubber crumb include loose applications such as infill or top dressing in sports fields and as feedstock for manufactured products. 2. TDA for civil engineering applications: A value-added material in municipal landfill projects where it is used as drainage material in leachate collection systems. TDA is produced by mechanically cutting up tires, usually in 2 to 6 pieces, with the steel and fibre still embedded. 3. Mulch: Tires processed in maximum 2 pieces with the metal extracted; mulch is used for landscaping applications. 4. TDA and whole tires used for energy recovery: Used as an alternate source of fuel. This end use is not included in the program but approved by Alberta Recycling s Board of Directors on a case-by-case basis where necessary to avoid build-up of inventory at processor or municipal sites. 5. Manufactured Product: Includes products made from rubber crumb such as pour-in-place surfacing (typically used in playgrounds), molded tiles, roofing tiles and industrial matting. The program s incentive for manufactured products was discontinued as of October 1, 2013 therefore the amount of crumb used in the products, obtained from sales information gathered in the incentive reporting process, is no longer available. 2017/ /20 Business Plan 35

36 Supplementary Indicator to Performance Measure T1.1: Disposal of Residual Materials The following table identifies the amount of residual material e.g. fibre and steel extracted during crumb processing disposed of in accordance with methods acceptable under the program. Generally the steel can be recycled. The end-use opportunities fluctuate for fibre therefore when the options are limited the material is sent to landfill. The forecast reflects an increase in the amount passenger and light truck tires recycled into crumb, generating more fibre which was sent to landfill. Total Disposed (tonnes) Total Processed (tonnes) Percent of Total Processed 2013/14 Result 2,060 70, % 2014/15 Result 6,235 68, % 2015/16 Result 2,215 68, % 2016/17 Forecast 5,932 54, % Goal T2: Ensure program sustainability by confirming surcharge and funding rates are appropriate and effectively managed. Ongoing financial analysis and projections will ensure that the Fund balance is consistent with Board directions, providing for longer term financial stability of the program. Performance Measure T2.1: Program Sustainability Ongoing financial analysis including: 1. Surcharge revenues remitted on the sale of designated tires; 2. Program expenditures on the collection and processing of end-of-life (EOL) tires; 3. Investment earnings and changes in market value; 4. The Fund target and range set by the Board; 5. Potential factors that could impact the Fund balance e.g. changes in technology, processing costs, product life span changes and recovery rates. Targets 1. Provide regular reports against 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 balance (please refer to the fund graph at the end of this goal). Strategic Action Plans for Performance Measure T Adjust Program Processing Incentives a) Adjust processing incentive rates by increasing the tire-derived aggregate (TDA) incentive to address the demand for supply of material. b) Decrease the incentives for mulch and crumb; this directive has the added benefit of lowering incentives on material leaving Alberta. c) Begin implementation of these changes effective April 1, 2017, phased in over time to allow for processor to adjust their business models. 2017/ /20 Business Plan 36

37 2. Municipal Fees to Access Supply of TDA a) Provide options regarding the implementation of fees for municipalities to access TDA. 3. Transportation Model and Additional Processor Marshalling Sites a) Provide analysis on the viability of adding processor marshalling sites and adjustment of the transportation model in light of these proposed new sites. 4. Review/adjust surcharge rates In response to the projected deficits for 2018/19 and 2019/20 that are included with the 2017/18 budget, the following be considered: a) Review the process and information regarding an increase on the fee for medium truck tires. b) Develop a proposal to implement a surcharge on agriculture tires. c) Review Alberta Environment and Parks proposed regulatory amendments for removal of fee setting from the regulation. Performance Measure T2.2: Ensuring Revenue Completeness Alberta Recycling is authorized by bylaw to identify and register companies that supply designated tires in Alberta to ensure surcharges are collected and remitted on the sale of new tires. 1. Every three years conduct a supplier identification project to research companies that may not be aware of the program, and register them if they fall within the definitions of the bylaw. 2. Conduct compliance reviews to ensure registered suppliers are charging the correct Surcharge on designated products and remitting the funds collected. 3. Suppliers are selected for review through a risk-based sampling process which includes: a) Sorting by size (small, medium and large) according to their average monthly Surcharge remittance. b) Sorting by the last date reviewed; those most recently reviewed rotate to the bottom of the list. c) Frequency of reviews: large category - every two years; medium category - every three years; small category on a case-by-case basis. 4. Over and above the risk-based sampling process, there are also a number of suppliers selected for review due to changes noted in remittance activity or challenges in confirming their registration status. This typically accounts for 20% of the reviews. Target (Under development) 1. The next supplier-identification project is scheduled for 2017/ In 2016/17 there are reviews scheduled with 226 suppliers, who represent 11% of reported revenue. 3. In 2015/16, reviews were completed with 174 suppliers, who represent 31% of reported revenue. 2017/ /20 Business Plan 37

38 Average Surcharge per Month Suppliers 2015/16 Reviews Completed 2015/16 Estimated Suppliers 2016/17 Forecast Reviews 2016/17 Small <$500 1, , Medium $500 - $2, Large >$2, Total 1, , Percent of Reported Revenue 31% 11% Performance Measure T2.2: Sustainability of Recycling Industry Verify that the current levels of program funding are adequate to sustain the collection and processing of scrap tires within Alberta s recycling industry. 1. Conduct a comprehensive Sustainability Review at least every three years to determine if there is a need to adjust program funding rates. The review is to be comprised of a professional audit of all processors receiving program funding and an assessment of the financial stability of the processing industry. 2. In the intervening years, consult with processors to identify and analyze any significant changes occurring since the program s last Sustainability Review. Target 1. The Board will review the results of the 2016/17 Sustainability Review to determine if adjustments are required to program funding rates. 2017/ /20 Business Plan 38

39 2017/ /20 Business Plan 39