December 20, 2022
To address current challenges moving recovered automotive plastics to end markets, the AMS Board of Directors has approved fee rate increases that become effective for April 1-June 30, 2023, supplied quantities. The new rates will apply to invoices issued August 1, 2023.
Antifreeze Container rates will increase by $0.01. Oil Container rates (HDPE/Metal, Non-HDPE/Metal) will increase by $0.02.
The challenges for these materials are largely due to historically low-priced virgin material and reduced demand. As a result, the end markets that purchase these materials from our processors have ceased placing orders.
AMS is working closely with its supply chain partners to identify new end markets and sustainable solutions. However, these solutions will take time. As a temporary measure, AMS is providing additional financial support to processors to enable the movement of recovered materials to end markets at deeply discounted prices.
Without additional compensation to processors, materials will stockpile, inventories will fill, and collections will cease. This is not an option under the Hazardous and Special Products Regulation.
The goal is to minimize disruptions to the collection system for empty oil containers and antifreeze containers while maintaining regulatory compliance. Low-cost alternatives for the materials available in other provinces, such as using recovered materials as a fuel substitute, are not permitted under the HSP Regulation.
Market pricing is not expected to recover in the near-term, and as a result the incremental costs are greater than AMS can absorb through its operating reserve. The rate increases will enable AMS to recover the additional expenses incurred for Q4 2021 through Q2 2023 and will provide funding for sustained processor top-up until commodity markets recover. Customers will be kept informed on our efforts as the situation evolves.
Oil filter reporting
Customers supplying oil filters should note that the WeRecycle Portal will be updated in January to include information fields for the minimum management requirement (target) as calculated by RPRA.
Producers will be asked to enter their target as provided by RPRA for both the Transition Period (October 1, 2021 – December 31, 2022) and the 2023 Performance Period.
This information will enable AMS to prepare and file annual reports on behalf of producers.
Please contact us with any questions about fee rates or oil filter reporting: info@autostewardship.ca.
