On April 2, 2026, the Government of Ontario announced a 30-day consultation on proposed amendments to the Hazardous and Special Products (HSP) regulation, including a change to move the effective date of the Recycling Efficiency Rate (RER) requirement for antifreeze and oil containers from 2027 to 2028.

AMS supports this proposed amendment.

We are writing to explain why this change is important, what it means for producer obligations and how you can support the proposed amendment. A suggested submission template is included at the end of this email for your use. Please note that the submission deadline is May 2, 2026.

Why this change is necessary

As you are aware, the current regulatory framework requires producers to meet a 95% RER for oil containers and antifreeze. This is a stringent performance requirement that depends not only on collection systems, but critically on the availability of appropriate processing infrastructure.

Over the past year, the operating environment has shifted significantly. Industry consolidation, combined with the inability to reach appropriate long-term commercial terms with the previous processor, has resulted in AMS needing to develop new processing capacity to support producer obligations.

As part of this transition, AMS has implemented compliant interim processing arrangements to ensure continuity of service and maintain producer compliance. These arrangements prioritize recovery of all recyclable material and use regulated energy recovery pathways for residual material, where recycling is not viable at scale. This approach reflects current system constraints and ensures that producer obligations continue to be met while new recycling capacity is being developed.

Importantly, despite not extending the agreement with the previous processor, AMS has ensured that producers remain compliant under current regulatory requirements. However, achieving the 95% RER on a sustained basis requires dedicated, purpose-built processing infrastructure, which necessitates new investment.

This requires securing a site, completing facility modifications, procuring and installing specialized equipment, obtaining regulatory approvals and commissioning the system to achieve reliable performance. AMS is actively advancing procurement, site development and system design to bring this new capacity online. While this work is underway, it is complex, capital-intensive and time-dependent, and must be executed properly to deliver consistent, compliant outcomes over the long term.

Why timing matters

The proposed shift from 2027 to 2028 provides the critical and necessary implementation timeline. While AMS has a clear plan and is actively advancing system development, we are also planning for contingencies. When it comes to your compliance obligations, we do not take anything for granted.

Infrastructure development and regulatory time frames need to align. Without sufficient time for system build-out and commissioning, producers could face regulatory obligations coming into force before the new processing system is operational, creating a compliance gap despite good-faith investment and execution.

AMS continues to plan for compliance under the current regulatory timeline while supporting this amendment to better align system readiness with regulatory requirements. The proposed amendment is not a delay for convenience. It is a practical risk mitigation measure that will allow the system to be built, commissioned and stabilized before full regulatory obligations apply.

What this means for producers

As producers, you retain full responsibility for meeting your regulatory requirements. AMS is investing in the infrastructure and systems necessary to support those obligations on your behalf.

Ensuring that the regulatory timeline aligns with real-world system readiness is in your best interests. It supports achievable and verifiable compliance, reduces the risk of disruption or last-minute cost pressures and enables responsible deployment of producer-funded capital.

How you can support this proposed amendment

We encourage all producers to participate in the consultation and express support for the proposed amendment to move the RER effective date to 2028.

To submit your comments:

• Visit the Environmental Registry posting (ERO 026-0218)
• Click “Submit a Comment”
• Paste your submission and provide your contact details
• Submit your comments before the deadline of May 2, 2026.

For your convenience, a draft submission template is provided below.

Thank you for your ongoing partnership and support. If you have any questions or would like to discuss this matter further, please do not hesitate to reach out to us at producers@autostewardship.ca.

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Draft Submission Template

Subject: ERO 026-0218 – Support for Proposed RER Timing Amendment

To whom it may concern,

We are a producer obligated under Ontario’s Hazardous and Special Products (HSP) regulation, and we support the proposed amendment to move the effective date of the Recycling Efficiency Rate (RER) requirement for oil containers and antifreeze from 2027 to 2028.

Achieving a 95% RER depends on the availability of appropriate and reliable processing infrastructure. As you may know, the system is currently undergoing a transition, including the development of new processing capacity, which requires time for site development, permitting, equipment installation and commissioning.

Advancing the RER requirement before the supporting infrastructure is fully operational creates a risk that regulatory timelines and system readiness will not align, resulting in compliance challenges for producers despite good-faith efforts.

We believe that delaying the RER effective date to 2028 is a practical adjustment that supports effective implementation and long-term system performance.

Sincerely,

[Company Name]
[Name]
[Title]