We're very proud to announce our victory for the Association of
Municipalities of Ontario in the hard-fought Blue Box funding
arbitration. Kudos to Glenn Chu and Matthew Cornett, who
represented the City of Toronto at the arbitration as our
co-counsel, and who successfully led the procedural and in-kind
Under section 25(5) of the Waste Diversion Act, municipalities are
entitled to "50 per cent of the total net costs incurred by
those municipalities as a result of the program", to be paid
by stewards, i.e. the brand owners who sell
packaged goods and printed papers to consumers in Ontario.
Arbitrator Robert Armstrong ruled that Stewardship Ontario must
pay Ontario municipalities $115,172,322 for operating residential
blue box programs in 2014, about $20 million more than Stewardship
Ontario had proposed for 2014. The full decision is here: Blue Box Arbitration Award.
Mr. Armstrong concluded that the municipal Datacall, as verified by Waste Diversion
Ontario, provides "a reliable figure for the 2014 Steward
Obligation" and met the reasonableness requirement he read
into section 25(5) . He rejected the so called "Best
Practices" computer model proposed by Stewardship Ontario,
determining that the evidence was insufficient to establish that it
could produce a reliable number.
The Association of Municipalities of Ontario Policy Update provides an analysis of both the
decision and a discussion of next steps:
Now that the arbitration process is complete, it is our view
that its findings will be helpful to all parties given the Ontario
government's commitment to bring in new waste reduction
legislation with full producer responsibility. Last week the
Honourable Glen Murray, Minister of Environment and Climate Change,
said that the new legislation is expected in 2015 and has signalled
that they are looking to the producers and municipalities to
develop workable solutions themselves as input to the
We understand that this includes producer-municipal sector
discussions on a new Blue Box framework. AMO, with the City of
Toronto, and with staff support from the Regional Public Works
Commissioners of Ontario and the Municipal Waste Association, is
currently developing a sector approach to prepare for these
upcoming discussions. Further information on these future waste
diversion activities will be shared as it becomes available.
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