What is the regulatory change?
The Hazardous and Special Products (HSP) Regulation is scheduled to take effect on October 1, 2021. The new regulatory framework makes obligated producers individually responsible for achieving specified outcomes, whereas the existing framework is a collective responsibility model that places obligations on organizations operating approved waste diversion programs.
What does the change mean for AMS members?
The final HSP regulation will introduce significant changes to how producers will meet their obligations for their materials. The implementation of individual producer responsibility (IPR) creates a new legal obligation. Producers will also have flexibility in how they collect and manage their products at end of life to meet regulatory obligations. Producers have the choice of meeting their obligations on their own or by joining a Producer Responsibility Organization (PRO).
Why is this change being introduced?
Ontario’s new approach began in 2016 with the introduction of the Resource Recovery and Circular Economy Act. The regulatory transition of the MHSW Program operated by Stewardship Ontario, of which the Industry Stewardship Plan (ISP) operated by AMS is a carveout, was initiated in August 2019 with a direction letter from the Minister of the Environment, Conservation and Parks. The objectives are to shift the province’s approach to waste management to make producers more responsible for the waste generated from their products and packaging and to make waste a resource that can be recovered, reused and reintegrated back into the economy. The transition of waste diversion programs is detailed in the Province’s Strategy for a Waste Free Ontario: Building the Circular Economy.
What is IPR?
Individual producer responsibility (IPR) replaces the collective responsibility for managing materials that producers have had under the AMS Industry Stewardship Plan since 2017 and under the MHSW Program operated by Stewardship Ontario since 2008. IPR requires that each producer obligated under the regulation meet individual targets and allows for them to do so by signing up with an authorized Producer Responsibility Organization (PRO).
What is a PRO?
Under the HSP regulation, producers will have the option to establish their own recycling system or join a Producer Responsibility Organization (PRO) to carry out their individual responsibilities. Effectively, a producer has the ability to hire a PRO to deliver certain services that enable the producer to meet their regulatory obligations. The draft regulation defines a PRO as:
a person retained by a producer for the purpose of carrying out one or more of the following producer responsibilities relating to HSP, but does not include an HSP processor retained solely for the purposes of processing HSP:
What is happening with AMS?
AMS as an organization continues and is developing new PRO service offerings to support producers under the new HSP regulation. The Industry Stewardship Plan operated by AMS will end once the MHSW Program operated by Stewardship Ontario is finally wound-up upon the completion of the activities in the approved MHSW Program Wind Up Plan. Note this final wind up will occur sometime after the HSP Regulation takes effect on October 1, 2021. Participants in the ISP will need to remain in good standing with either the AMS ISP or Stewardship Ontario MHSW Program until the termination of the MHSW Program, which will create some parallel obligations for a period of time.
What about invoices and reporting for the Q3 sales period?
Based on the revised direction from the Minister, it is our expectation that invoices for the Q3 sales period will be issued under new PRO customer agreements pursuant to the forthcoming HSP Regulation. Under the HSP Regulation, producers will have the option to join the AMS PRO or pursue other individual or collective options to carry out their responsibilities. AMS will provide information about its PRO offering after the final regulation is available.
What will I need to do?
Producers of automotive materials are encouraged to familiarize themselves with the new regulatory framework and their new responsibilities. AMS will keep members advised as details are clarified and the regulation is finalized, as well as keeping members informed of the development of PRO services and the registration process. We look forward to keeping all auto material producers informed in the months ahead and welcome your questions: 1-888-575-4870 or firstname.lastname@example.org.