THOMPSON-NICOLA REGIONAL DISTRICT

Regional Solid Waste Management Committee – THURSDAY, JULY 20, 2017

A G E N D A

Time: 10:00 AM Place: Hotel 540 Rivers South Room 540 Victoria Street Kamloops, BC

Page

1. CALL TO ORDER

2. CHAIR'S ANNOUNCEMENTS

3. ADDITIONS TO OR DELETIONS FROM THE AGENDA

4. MINUTES

3 - 6 (a) 2017 Jun 15 Regional Solid Waste Management Committee Meeting Minutes

Attachments: Regional Solid Waste Management Committee - 15 Jun 2017 - Minutes - Pdf

RECOMMENDATION:

THAT the minutes of the Regional Solid Waste Management Committee dated June 15, 2017 be adopted, as circulated.

5. DELEGATIONS

None.

6. UNFINISHED BUSINESS

None.

7. CORRESPONDENCE

Agenda – Regional Solid Waste Management Committee Meeting Thursday, July 20, 2017 Page 2 of 57

None.

8. NEW BUSINESS

9. REPORTS and/or INQUIRIES

7 - 57 (a) TNRD Recycling Program – Bags & Recycle BC

Report by: Director of Environmental Service - 2017 Jul 20

Attachments: TNRD Recycling Program – Plastic Bags & Recycle BC

RECOMMENDATIONS:

RECOMMEND THAT the TNRD Board direct staff to proceed with implementation of “no plastic bags” in the TNRD mixed recycling program adhering to the communication and operation plans presented in this report.

RECOMMEND THAT the TNRD Board direct staff to continue to work towards TNRD solid waste management facilities becoming Recycle BC depots for the primary reason that the responsibility and cost of recycling of Packaging and Printed Paper (PPP) is the responsibility of the producers of PPP, not TNRD taxpayers.

10. ADJOURNMENT

Page 3 of 57

THOMPSON - NICOLA REGIONAL DISTRICT

Regional Solid Waste Management Committee

Thursday, June 15, 2017

MINUTES of a Meeting of the REGIONAL SOLID WASTE MANAGEMENT COMMITTEE held in the Boardroom on Thursday, June 15, 2017 commencing at 10:00 AM.

PRESENT: Director R. Elliott (Acting Chair) Electoral Area "J" (Copper Desert Country) Director J. Rivett Village of Clinton Director J. Harwood District of Clearwater Director T. Lange City of Kamloops Director N. Menard City of Merritt Director M. Rothenburger Electoral Area "P" (Rivers and the Peaks) Director R. Murray Electoral Area "M" (Beautiful Nicola Valley - North)

ABSENT: Director W. Kershaw (Chair) Electoral Area "O" (Lower North Thompson) Director S. Rice (Vice-Chair) Electoral Area "I" (Blue Sky Country)

STAFF: Mr. S. Gill, Chief Administrative Officer Ms. C. Black, Corporate Officer/Director of Legislative Services Mr. J. Devlin, Director of Environmental Services Mr. J. Vieira, Manager of Environmental Health Services Ms. A. Leite, Recording Secretary

PRESS: None

OTHERS: Mr. G. Farrow, City of Kamloops Ms. C. McIver, Carey McIver & Associates Ltd. Mr. T. Sperling, Sperling Hanson Associates Ms. M. Dalgleish, Sperling Hansen Associates Chair P.A.J. Ranta, TNRD

1. CALL TO ORDER

The Chief Administrative Officer called the June 15, 2017 Regional Solid Waste Management Committee meeting to order at 10:01 am.

2. APPOINTMENT OF ACTING CHAIR

The Chief Administrative Officer called for appointments for Acting Chair for the Regional Solid Waste Management Committee.

Director Menard nominated Elliott Director.

Director Elliott accepted and assumed the Chair.

Page 1 of 4

Minutes - Regional Solid Waste Management Committee Page 4 of 57 Thursday, June 15, 2017

3. CHAIR'S ANNOUNCEMENTS

Acting Chair Elliott advised the committee that there are two separate agendas for the day’s meetings in order for the minutes of the two Regional Solid Waste Management committees to be kept separate for record keeping purposes. The Solid Waste Management Plan Review Steering committee meeting will commence as soon as the Regional Solid Waste Management committee meeting has adjourned.

The Acting Chair informed the committee that, unless there was an objection, the Manager of Environmental Health Services, Jamie Vieira, would provide an update on the Emterra recycling service to the committee, which would be added to the agenda under item 8 - New Business.

4. ADDITIONS TO OR DELETIONS FROM THE AGENDA

(a) The agenda was received as amended: 9. New Business (a) Update on Emterra recycling collection service update

5. MINUTES

(a) 2016 October 13 Regional Solid Waste Management Committee Meeting Minutes

Moved by Director Lange Seconded by Director Murray

THAT the minutes of the Regional Solid Waste Management Committee dated October 13, 2016 be adopted, as circulated. CARRIED

6. DELEGATIONS

None.

7. UNFINISHED BUSINESS

None.

8. CORRESPONDENCE

None.

Page 2 of 4

Minutes - Regional Solid Waste Management Committee Page 5 of 57 Thursday, June 15, 2017

9. NEW BUSINESS

(a) Update on Emterra Recycling Collection Service Update

The Manager of Environmental Health Services provided the committee with an update on the Emterra recycling collection service.

Emterra has advised the TNRD that they are changing their operations facility in Valleyview and will no longer be receiving soft mixed in with recyclable materials. This restriction is due to soft plastics causing jams in the new sort line Emterra has installed.

The committee discussed the short and long term impacts of the soft plastic ban and what can be done to reduce potential impacts to residence.

10. REPORTS and/or INQUIRIES

(a) Solid Waste Operations Contracts

The Solid Waste Operations Contracts report from the Director of Environmental Services dated June 15, 2017, was presented to the committee for discussion.

Moved by Director Lange Seconded by Director Murray

RECOMMEND THAT the TNRD Board extend the end date of the TNRD Solid Waste Transfer Station Operations, Maintenance, and Servicing Agreement with Belkorp Environmental Service Inc. by 6 months from December 31, 2017 to June 30, 2018 under the same terms and conditions.

RECOMMEND THAT the TNRD Board extend the end date of the Lower Nicola Landfill Operations and Maintenance Agreement with SCV Contractors by 9 months from September 30, 2107 to June 30, 2018 under the same terms and conditions.

RECOMMEND THAT the TNRD Board extend the end date of the Heffley Creek Landfill Operations and Maintenance Agreement with SCV Contractors by 3 months from September 30, 2017 to December 31, 2017 with the option to extend by additional three month terms to a maximum of June 30, 2018 under the same terms and conditions. CARRIED

Page 3 of 4

Minutes - Regional Solid Waste Management Committee Page 6 of 57 Thursday, June 15, 2017

11. ADJOURNMENT

The meeting adjourned at 10:43 am.

Certified Correct:

Chair

Corporate Officer

Page 4 of 4 Environmental Services Page 7 of 57 COMMITTEE REPORT

TO: RSWM Committee DATE: July 20, 2017

FROM: Manager of Environmental Services

SUBJECT: TNRD Recycling Program – Plastic Bags & Recycle BC

RECOMMENDATION(S):

1. That the RSWM Committee recommend to the TNRD Board that staff proceed with implementation of “no plastic bags” in the TNRD mixed recycling program adhering to the communication and operation plans presented in this report.

2. That the RSWM Committee recommend to the TNRD Board that staff continue to work towards TNRD solid waste management facilities becoming Recycle BC depots for the primary reason that the responsibility and cost of recycling of Packaging and Printed Paper (PPP) is the responsibility of the producers of PPP, not TNRD taxpayers.

Jake Devlin, P.Eng. Approved for Director of Environmental Services Board Consideration CAO

SUMMARY:

Recycle BC (RBC), formerly MMBC, does not allow plastic bags in mixed recycling. Since the majority of communities in the province are now covered by Recycle BC and are excluding plastic bags from mixed recycling, the recycling processors are now charging a “contamination” rate for mixed recycle loads that contain plastic bags. This contamination rate is being applied even if communities are not part of the Recycle BC program, as is currently the case with the TNRD.

Emterra Environmental (TNRD’s recycling processor) have put all of their customer’s on notice that effective August 15th, 2017 the contamination rate of $175 per tonne will be applied on all July 20, 2017 Page 2 of 8 Subject: TNRD recycling program – Plastic Bags & Recycle BC Page 8 of 57 mixed recycling loads containing a significant amount of plastic bags. If mixed recycling loads do not contain plastic bags, the rate will remain at the current $105 per tonne.

If the TNRD does not remove plastic bags from the mixed recycling program, the increased costs for “contamination” is estimated to be $12,000 per month. The unit rate applied for contaminated loads is also expected to increase over time.

On a separate but closely related item, the TNRD and member municipalities are corresponding with Recycle BC about the possibly of joining the program. Under the RBC program, when recycling is collected curbside, it can remain mixed (excluding plastic bags) when delivered to the processor (Emterra). Therefore, if the communities performing curbside recycling (i.e. Chase, Barriere, Merritt, Logan Lake, Savona, and Blue River) remove plastic bags from their mixed curbside recycling, they will be in a good position to join the Recycle BC program in the future.

Conversely, Recycle BC does not allow “mixed” recycling to be dropped off at depots. Recycle material going to a depot must be separated either before, or at the time of delivery. This means that should the TNRD decide to join Recycle BC, our transfer stations and eco-depots would need to require residents to separate recyclables into 8 different streams (e.g. printed paper, cardboard, paper packaging, plastic bags, plastic containers, metal, glass, and foam).

The key points are: 1) going forward, the TNRD will need to exclude plastic bags from our mixed recycling, or face significant additional costs of not doing so effective August 15, 2017, and 2) if in the future the TNRD wants to join the Recycle BC program and receive the financial benefits, which are estimated to be up to $776,000 per year, then separation of recyclables into 8 categories will be required for all deliveries to our recycle depots.

At this point in time the TNRD Board does not need to decide on whether or not to enter into an agreement with Recycle BC. Staff need only be directed to continue negotiations with RBC. If directed, staff will continue to negotiate with RBC and, based on recent discussions with RBC, it is anticipated a subsequent report and draft agreement will be presented for TNRD Board for consideration in late 2017, or early 2018.

BACKGROUND:

July 20, 2017 Page 3 of 8 Subject: TNRD recycling program – Plastic Bags & Recycle BC Page 9 of 57

Two separate issues are discussed in this report: 1) Plastic bags no longer allowed in mixed recycling, and 2) further changes to recycling program are likely if TNRD participates in the Recycle BC (RBC) program. These 2 topics are included in one report because they are related and cannot be addressed in isolation from one another.

Plastic Bags The TNRD’s “blue bag” recycling program launched region-wide in 2008 following the adoption of the TNRD 2008 Regional Solid Waste Management Plan (RSWMP) and was developed in consultation with recycling processors. Through this program residents are encouraged to put all their recyclables in a see-through blue bag and drop it off at a TNRD depot

Both recycling processors in the Southern Interior (Emterra in Kamloops and Cascades in Kelowna) accepted, and even encouraged communities to implement, single stream mixed recycling because they had the facilities to separate it. As a result, both the TNRD and the City of Kamloops decided to offer single stream recycling.

The first TNRD recycle processor agreement was with Cascades (in Kelowna), which does not accept glass in mixed recycling. Later the TNRD switched to Emterra here in Kamloops.

The materials accepted in the TNRD single stream recycle program has been the same since it was established almost 10 years ago. Up to now, plastic bags were accepted by both processors. However, the situation has changed with the forthcoming contamination penalty that will be applied to our mixed recycle loads that contain plastic bags.

Plastic bags are easily recycled if kept separate. However, recycling processors are challenged with separating them in the new automated sort lines because the bags get wrapped around the sorting equipment causing costly shuts downs. Plastic bags also cause contamination of the paper recycling stream.

To mitigate these problems, processors must employ more people to separate bags by hand. Recyclables delivered in plastic bags cause an even greater challenge because the bags need to be manually broke open before the material goes through the sorting facility.

Consequently, processors are now charging a higher rates to handle mixed recycling that includes plastic bags. Emterra has put all of their customer on notice (including TNRD) that a July 20, 2017 Page 4 of 8 Subject: TNRD recycling program – Plastic Bags & Recycle BC Page 10 of 57

contamination rate of $175 per tonne will be issued to all loads containing a significant amount of plastic bags effective August 15, 2017. If mixed recycling loads do not contain plastic bags, the rate will remain at the current $105 per tonne.

Recycle BC Extended Producer Responsibility (EPR) in BC puts the responsibility on the producers of goods to recover and recycle the items they sell in the province. The province must approve a producers plan and ensure they follow it.

The producers of Packaging and Printed Paper (PPP) created a non-profit organization now called Recycle BC (formerly MMBC) to create and implement a stewardship plan. RBC is tasked with operating a province wide program at a cost acceptable to its members (the producers of PPP).

The Recycle BC stewardship plan includes details around what materials are acceptable and how they are allowed to be collected. Local governments or private sector depots wishing to participate in the program need to adhere to the RBC model. This means that in order to receive the financial benefits of RBC’s program, some local governments may need to make significant changes to recycling programs currently offered to their residents.

Local governments can choose to continue providing a recycling service not in line with RBC’s model, but they do so at the taxpayers’ expense, and would effectively be letting producers off the hook for a service they are mandated by the province to provide.

Recycle BC has been operating for 3 years and the majority of the province is now covered by this program. The RBC 2016 annual report (attached for reference) states 98% of households in BC have access to RBC depots and 3,177,500 residents are serviced by a RBC curbside or multi-family collection program.

The Columbia Shuswap Regional District (CSRD) and Regional District of the North Okanagan (RDNO) are two examples of Regional Districts that implemented significant changes when joining RBC. Attached are case studies for both the CSRD and RDNO.

DISCUSSION: July 20, 2017 Page 5 of 8 Subject: TNRD recycling program – Plastic Bags & Recycle BC Page 11 of 57

Plastic Bags It is recommended that the TNRD proceed with implementing the change of “no plastic bags’ in the mixed recycling. All recycling processors in the province are shifting to the RBC rules, regardless of whether or not individual local governments have joined the program.

From an operational stand point, excluding plastic bags is straightforward. At TNRD solid waste facilities, a separate collection area will be set up for plastic bags (similar to how glass is currently collected). Residents who bring in recycling in a blue bag will be directed by the attendant (and signs) to empty the contents into the mixed recycling bin and recycle the empty blue bag separately (or take it home and reuse it).

The TNRD will also work with member municipalities who are providing curbside recycling collection and/or who have a TNRD unattended recycling depot, in order to provide a drop off location for plastic bags within these communities. Similar to glass recycling the TNRD can work with local bottle depots to accept plastic bags for recycling. A summary of the Operating Plan is attached.

However, communicating this change to the public will be a much more involved process. Based on the recent experience in the City of Kamloops, the TNRD should expect significant pushback and complaints around this proposed change.

A recommended Communication Plan to implement the changes is attached as well as draft a brochure for distribution at all TNRD solid waste sites. TNRD staff will also work closely with member municipalities to ensure a consistent message is communicated across the region. Staff to staff meetings have already occurred between TNRD and municipalities to discuss excluding plastic bags from mixed recycling.

If approved by the TNRD Board, the Communication Plan would be launched in late July 2017. The change would be communicated to take effect September 1st, 2017.

Financial implications – Plastic Bags The regional solid waste service covers processing costs for material delivered by both residential drop off, and by member municipalities who haul to our facilities.

July 20, 2017 Page 6 of 8 Subject: TNRD recycling program – Plastic Bags & Recycle BC Page 12 of 57

As noted, if the TNRD does not remove plastic bags from the mixed recycling program, the increased costs for “contamination” is estimated to be $12,000 per month. The rate applied for contaminated loads is also expected to increase over time.

Recycle BC As reported to the RSWM Committee previously, TNRD staff are in discussion with RBC regarding the possibility of the TNRD joining the program. RBC has not yet committed to specifics, however, based on discussions to date it is expected that joining Recycle BC will require significant changes to the TNRD’s recycling program.

The good news is RBC allows single stream recycling collected curbside (as long as it does not include plastic bags or glass). Therefore, if the TNRD and municipalities performing curbside recycling (Chase, Barriere, Merritt, Logan Lake, Savona, and Blue River) remove plastic bags from their mix, they will be well on their way to meeting RBC standards.

The bad news is RBC will not allow single steam mixed recycles to be dropped off by self-haul customers at TNRD eco-depots and transfer stations. These sites would be considered multi- stream “depots” under the RBC model, and would require customers to separate recyclables into 8 different streams (e.g. printed paper, cardboard, paper packaging, plastic bags, plastic containers, metal, glass, and foam). This would be a major shift from the current TNRD blue bag program which has been in place for the past 10 years.

As noted, other Regional Districts have made similar changes recently. Both the CSRD and the RDNO reported public pushback when the change was initially launched, but have since seen a general acceptance by the residents.

In the CSRD recycling rates did decrease, however this is thought to be mostly a result of the depots converting from being unattended to attended. The CSRD only permits residential recycling at depots, so when they moved to staffing the sites they began turning away the commercial deliveries, thereby reducing the volume collected at CSRD depots.

Financial implications – Recycle BC As discussed, RBC has not yet committed to specifics around service levels they are willing to provide in the TNRD. It is possible that RBC may not recognize every TNRD transfer station as depot under their program, meaning the TNRD would potentially still need to cover the costs of July 20, 2017 Page 7 of 8 Subject: TNRD recycling program – Plastic Bags & Recycle BC Page 13 of 57 recycling at some smaller remote sites. Therefore, the exact cost savings of the RBC program for the TNRD cannot be calculated at this time.

However, for discussion purposes the summary below includes the potential savings to the TNRD if all recycling costs were covered, plus the financial incentive from RBC for the material collected by the TNRD.

Potential saving – hauling and processing of recyclables $657,000 / year Financial incentive for materials collected at depot $98,000 / year Financial incentive for TNRD curbside collection Area J EA Service – Savona/Cherry Creek $15,000 / year Area B EA Service – Blue River/Avola $6,000 / year Estimated total financial benefit $776,000 / year

When a draft agreement is presented to the TNRD Board at a future date, a much more accurate financial impact will be included. Please note all costs savings and financial incentives are ongoing on an annual basis (it is not a onetime pay-out).

ALIGNMENT TO THE STRATEGIC PLAN:

• Focus on providing services that increase value to our ratepayers

o Ensure that services are being delivered in an efficient & costs effective fashion o Continue our focus on regional solid waste management July 20, 2017 Page 8 of 8 Subject: TNRD recycling program – Plastic Bags & Recycle BC Page 14 of 57

PUBLIC CONSULTATION:

Legislative Requirements to Consult: None Number of residents affected: All electoral area and member municipality residents except City of Kamloops residents. Geographical area affected: All TNRD (excluding City of Kamloops) Level of Financial Implication of the change to service: Significant and ongoing financial implications, see discussion section of report. Public Consultation Strategy Outline: See attached communication plan.

CONCLUSION:

The Recycle BC program has changed recycling in BC regardless of whether or not a community is part of the program. The recycling industry is shifting to adapt to the RBC program. Similar to many other local governments, the TNRD must decide to make changes or face significant additional costs of not doing so.

The first change recommended is to remove plastic bags from our mixed recycling program, and recycle plastic bags separately. Communities performing curbside collection will not require further significant changes beyond this to comply with RBC’s program, should they choose to sign on.

In order to join Recycle BC, the TNRD will, like many other local governments, likely need to require all recycling at our depots to be separated by residents.

Attachments 1. Communication Plan – Plastic Bags 2. Draft brochure (Rack Card) – Plastic Bags 3. Operation Plan - Plastic Bags 4. Case Study – Recycle BC for CSRD 5. Case Study – Recycle BC for RDNO 6. Recycle BC – 2016 Annual Report Page 15 of 57 Communications Plan: Source Separation of Plastic Bags from the TNRD’s Mixed Recycling Program July 2017

Why is the TNRD no longer accepting plastic bags in mixed recycling? • Recycling recovery facilities throughout BC have been upgrading their sorting lines to efficiently meet the standards of provincial product steward Recycle BC. As a result, these recycling facilities are no longer able to process plastic bags unless they are separated out of the mixed recycling stream.

What can no longer be mixed with other recyclables? Examples of what can no longer be placed in TNRD mixed recycling:

• Plastic bags for groceries or dry cleaning • Plastic bags for bread, produce, dry bulk foods and frozen vegetables • Plastic garbage bags of any size or color • Plastic wrap

What should people do with their plastic bags? • Residents can separate their plastic bags from their mixed recycling and recycle them at their local TNRD transfer station or Eco Depot. Residents can also repurpose their plastic bags, or put plastic bags in their household garbage.

What are our communication objectives? • JULY/August: Launch communication strategy; get rack cards to TNRD Sites; put up site signage, communicate start date of Sept. 1 • SEPTEMBER: Reminder that Sept. 1 is deadline for removing plastic bags from mixed recyclables

Who do we want to and need to reach? Internal: Board Directors, EHS, Communications, Front Desk Staff External: EA residents, haulers, site attendants, area municipalities, First Nations

What do we want to tell them? Audience: Board Directors Action: Informing and consulting Messages: Action plan; follow-up and status updates; seeking input about concerns and avenues of communication Page 16 of 57 Communication channels: Board reports; face-to-face meetings; follow-up phone calls, emails; information sheets/brochures/posters

Audience: EA residents Action: Informing, consulting Messages: What the change is; what they should expect; why it is changing Communication channels: Local radio and newspaper advertising; EA directors; social media; tnrd.ca; information sheets/brochures/posters

Audience: Commercial haulers; site attendants; municipalities; First Nation bands Action: Informing, consulting Messages: What the change is; what will not be accepted; what customers should do at sites Communication channels: Information sheets/brochures/posters; face-to-face meetings; direct mail

Audience: Front desk staff Action: Informing Messages: What the change is; how to direct complaints and concerns Communication channels: Staff-to-staff communication; information sheets/brochures/posters

Timeline

Who will do what by when? ACTIVITY PERSON RESPONSIBLE COMPLETION DATE

First Press Release Mike G. July 24 (with social media, website postings, media follow-up)

Informational Rack Cards Mike G./ Cassie Aug 4- Cards printed and to site

Second Press Release (reiterates Mike G. Aug 25 first press release; stresses Sept. 1 deadline.)

Informational Posters (on site Cassie Aug 4 info)

Media Ads (newspapers, posters Cassie Beginning July 24 on an ongoing on community message boards, basis radio)

Page 17 of 57

Separation of Plastic Bags from Mixed Recycling he Thompson-Nicola Regional District (TNRD) Tcan no longer accept plastic bags in its mixed recycling program. Here’s what you need to know:

WHY THE CHANGE? Recycling recovery facilities throughout B.C. have been upgrading their sorting lines to efficiently meet the standards of Recycle BC, the provincial product steward. As a result, these facilities are no longer able to process plastic bags in mixed recycling loads.

S WHAT STAYS OUT? • Bags for groceries or dry cleaning • Bags for bread, pro- duce, dry bulk foods and frozen vegetables • Plastic wrap

R WHAT STAYS IN?

For more information call 1.877.377.8673; email [email protected] or visit tnrd.ca Page 18 of 57

Separation of Plastic Bags from Mixed Recycling

WHAT SHOULD I DO WITH MY PLASTIC BAGS? There are many options:

REUSE THEM! • As garbage bags in smaller garbage cans or in vehicles • As grocery bags • For pickup/disposal of pet waste • For padding in parcels

RECYCLE THEM! • Take them to any TNRD Eco-Depot or Transfer Station, to be recycled separately • Check with your grocery store to see if they have a “take back” program • Ask your local bottle depot if they recycle plastic bags

• OR dispose of them in your household garbage

NEED MORE INFORMATION? For more information about the TNRD’s mixed recycling program, please visit tnrd.ca.

For more information call 1.877.377.8673; email [email protected] or visit tnrd.ca TNRD Operation Plan Summary – Removing plastic bags from mixed recycling

July 2017

Collection Option Current Practice Proposed Change Communities Involved TNRD Transfer Stations & Plastic bags combined with Plastic bags separated into receptacle All communities and residents served Eco-Depots single stream. adjacent to single stream bins. by TNRD waste management facilities.

Curbside (carts) Plastic bags combined with Plastic bags separated and taken to City of Merritt single stream. TNRD depot or local bottle depot. – Merritt Return It Depot District of Logan Lake – District Public Works Yard Village of Chase – North Shuswap Bottle Depot TNRD – For Savona and Blue River curbside. Curbside (blue bag) Plastic bags combined with Plastic bags separated and taken to District of Barriere single stream. TNRD Eco-Depot or Transfer Station. - District staff and Belkorp site Upon arrival, blue bags are emptied attendants to do the break down of and separated for recycling. bags and separation for recycling

Municipal Depot Plastic bags combined with Plastic bags separated and taken to City of Merritt (with private depot) single stream. TNRD depot or local bottle depot. – Merritt Return It Depot Village of Chase – North Shuswap Bottle Depot

Municipal Depot Plastic bags combined with Plastic bags separated into receptacle Village of Ashcroft (no private depot) single stream. adjacent to single stream bins. – Village Staff When receptacles full, municipal staff Village of Cache Creek will compact, tie off and place “bag of – Village Staff Page 19 of 57 plastic bags” in single stream bins.

CSRD Experience with RBC – Case Study Page 20 of 57 July 2017

Before Multi-Material BC (MMBC) was introduced in the Columbia Shuswap Regional District (CSRD), most areas were served by CSRD administered, single stream recycling service found at all recycling and disposal facilities. The hauling and processing was provided by a commercial hauler under contract with the CSRD. Three member municipalities, Golden, Salmon Arm and Revelstoke had curbside collection services. Golden collected single stream recycling with an automated truck and bin system and Salmon Arm and Revelstoke collected single stream recycling using the Blue Bag collection model. Materials were collected and transported by a commercial hauler who unloaded them at a commercial materials recovery facility. Residents also had the option of taking their Blue Bag recyclables to one of three unattended depots located in member municipalities. The Town of Sicamous is the one CSRD member municipality that did not have a curbside recycling program.

On January 1st, 2014, the CSRD and its onboarded municipalities transitioned to MMBC services. Infrastructure had been developed and placed in advance of the change over which made for an effective transition. Where roll-off containers for collecting Blue Bag materials had been previously, new bins for collecting multi stream materials were placed. Golden, Salmon Arm and Revelstoke continued with their curbside programs, and in the cases of Salmon Arm and Revelstoke, once their pre-existing contracts with their collector expired, they would transition to an automated bin model. Sicamous chose not to participate in the MMBC program and are now looking towards establishing a curbside collection program that will be administered by the Town until they are onboarded. The three previously unattended depots in the CSRD were onboarded by MMBC with the conditions that they would be attended and have features that provide security after hours. These changes were communicated to area residents through heightened community engagement before and during the transition. By focussing on the rationale and benefits of the MMBC program and working with area residents to make the transition as easy as possible, there was very little opposition.

The CSRD has limited involvement reloading activities. The Salmon Arm Landfill has a compactor that is used for compacting City of Salmon Arm curbside materials. Twice a week, their curbside material and fibre is compacted and sent to a commercial processor. The CSRD will allow interested businesses from the commercial sector to use their compactor at the Salmon Arm landfill for $80.00/t. Most businesses subscribe to commercial waste hauling services where compactors are already available so there is very little interest and knowledge of the CSRD compactor. Salmon Arm material is reloaded into roll-offs and sent away to Kelowna for processing. Golden and Revelstoke’s hauler bales and sends the materials away for transporting, also in Kelowna. The bottle depot in Salmon Arm was baling recyclables but could not keep up with the volume of incoming material and so they made a decision not to collect and bale in the end. Private bottle depots in the CSRD have not bought into the MMBC program because of perceived poor incentives and a lack of onsite capacity.

Removing commercial recyclables from the residential stream is an option that the CSRD selected in order to retain their whole incentive. Had they allowed commercial materials to remain, they would have seen monthly penalties of 25% to the tonnage revenue paid by MMBC. Additionally, tonnage was impacted due to some of the sites being unattended and receiving non-recyclable materials thereby illegitimately weighting the bins of recyclables. As for diversion rates, new baseline data is being established and MMBC will share that information once statistical confidence in the numbers is achieved. The perception was that diversion rates dropped off as area residents learned the new program, and it’s possible that they did but it is suggested that they are returning to what they were pre-MMBC. This can partially be attributed to the fact that area residents are aware that the materials they take the time to recycle are actually being recycled and that more items can be recycled in the upgraded program.

Since MMBC began receiving CSRD recyclables, there has been no indication that there has been an increase/decrease in contamination. Two audits have been conducted on CSRD recyclables and there have been no penalties issued. Page 21 of 57

RDNO Experience with RBC – Case Study

July 2017

Before Multi-Material BC (MMBC) was introduced in the Regional District of North Okanagan (RDNO), most areas were served by an RDNO administered, bi-weekly curbside Blue Bag Collection Program or RDNO recycling drop centers, located at all recycling and disposal facilities, for Blue Bag recycling. The services were provided by a commercial hauler under contract with the RDNO. The Township of Spallumcheen provided their own bi-weekly curbside Blue Bag Collection Program under their own contract with a commercial hauler. Material was processed at an RDNO owned materials recovery facility (MRF) by a contractor. The financial arrangement was extremely inexpensive for the RDNO. There was no processing fee because the contractor made their money from commodity value and from accepting third party material (mostly commercial OCC). The MRF was lost in a fire on March 1, 2013.

In May 2014, the RDNO administered bi-weekly curbside Blue Bag Collection Program ended and the MMBC curbside PPP collection program began. The MMBC program provides service using two blue boxes, one for the container stream and one for the fiber stream. The RDNO chose to continue operating the recycling drop centres at all of their facilities at their own cost. The Township of Spallumcheen failed to respond to MMBC in 2013 and did not get on board when MMBC took over from the RDNO. Spallumcheen has continued to provide their own bi-weekly curbside Blue Bag Collection Program under their own contract with a hauler and have continued to bill residents for the service. MMBC has established relationships with private depots in Vernon, Armstrong and Lumby.

The transition of RDNO services to MMBC services was almost immediate. If the RDNO service was in place on a Friday, the MMBC service was in place for the following Monday. MMBC did pick up blue bags for the first month, but after that they were no longer accepted and were left at the curb. It was either use the boxes or material would not be picked up. There was some vocal opposition to the blue boxes and complaints related to a perceived decrease in the products accepted. The only product collected under the RDNO program that is not collected under the MMBC program is plastic film. Glass and Styrofoam were not part of the RDNO Blue Bag program.

The RDNO is not involved in any reloading activities. MMBC reloads material at a site they have secured in Vernon and hauls to their processor in Kelowna. Blue Bag materials from RDNO recycling drop centre’s is hauled directly to the processor in Kelowna and old corrugated cardboard is hauled to a site in Vernon.

To date, there has been no indication of any increase/decrease in disposal, nor has there been an increase/decrease in tonnage at the RDNO recycling drop centres. MMBC tonnage is likely comparable to RDNO program tonnage as there is only a slight difference between the two programs. Relatedly, contamination levels at RDNO recycling drop centres remain consistent with pre-MMBC contamination levels. Staff at the RDNO stressed the importance of communicating with residents that the MMBC program is not a local government program, rather an industry operated and financed EPR program. Page 22 of 57

Annual Report 2016

Making a difference together. About Recycle BC Contents Page 23 of 57 Recycle BC is a non-profit 2016 Highlights...... 1 organization responsible for residential packaging and printed Message from Managing Director...... 2 paper recycling throughout . We ensure Executive Summary ...... 3 packaging and printed paper is collected from households and Program Overview...... 4 recycling depots, processed and Packaging and Printed Paper...... 4 recycled responsibly. Board of Directors...... 5 Our program is financed by Recycle BC Advisory Committee...... 5 businesses — such as retailers, manufacturers and restaurants Recycle BC Members Finance the Program...... 5 — that supply packaging and printed paper to BC residents. Public Education...... 6

Recycle BC was originally Education Campaigns...... 6 launched in 2014 as Community Champions...... 8 Multi-Material BC (MMBC). Resident Awareness...... 8

Collection Systems and Facilities...... 9 Expanded Direct Recycling Services...... 9 Green by Nature Partnership...... 9 Facilities Network...... 10 Curbside/Multi-Family Service Areas and Depot Facilities...... 11

Managing Environmental Impacts...... 16 Innovation...... 16 Material Management...... 19 Material Collected by Regional District...... 20

Program Performance...... 21 Year Over Year Performance...... 21 Performance Against Stewardship Plan Targets...... 21 Additional Informatioin and Third Party Assurance...... 23

Financial Performance...... 24 Financial Statements...... 25

i 2016 Highlights Page 24 of 57

In its second full year of operation, Recycle BC continued to exceed provincial recycling targets, while increasing public awareness and adding more communities and stewards to the program.

Recycling Performance 238,062 185,477 Tonnes reported by stewards Tonnes collected

78% 40.7 Recovery rate Recovered KG per capita

Access

98% 1,844,000* Percentage of households with access to depots Number of households serviced *Includes curbside, multi-family & depot collection

154 3,177,500 Number of communities benefitting/participating Population served by curbside and in program (curbside and multi-family) multi-family collection

Stewards Financial Performance 1,114 $398 $40 Number of stewards Cost per tonne Cost per household

1 Message from Managing Director Page 25 of 57

Closing our second full year of operations, in 2016 Recycle economy to find long-term solutions to improve the BC continued to build on a strong foundation and produce recycling of plastics across the globe. New Plastics positive results that advance the long-term viability of the Economy, an initiative of the Ellen MacArthur Foundation program. As our program grows, more BC residents and to rethink and redesign the future of plastics, starting with collection partners rely on Recycle BC’s management of packaging, confirmed Recycle BC as a program partner. residential recycling services. Notable activity in the past As a recognized leader in extended producer year included name changes, building strong partnerships responsibility programs, we continued to be invited and expanding the number of households directly receiving to conferences and events around North America to our recycling service. showcase and share best practices from BC’s packaging and printed paper recycling system. Rename and Rebrand At the end of 2016, Multi-Material BC Society Inc. (MMBC) Program Growth transferred its rights and obligations to a newly incorporated In 2016, there was significant growth in the number of MMBC Recycling Inc., a non-profit incorporated under the households directly serviced by Recycle BC. The City Canada Not-for-Profit Corporations Act, with the approval of and the City of joined 10 other of the Province of British Columbia. Also in 2016, we communities whose curbside recycling services are began the process of rebranding to Recycle BC, a more the direct responsibility of Recycle BC. The addition intuitive, relevant and engaging brand that we feel will help of these two new communities increases the number strengthen our connection with both residents and our of households directly serviced by Recycle BC to members. While our legal name remains MMBC Recycling approximately 380,000 households. Inc., we now operate as Recycle BC. We also launched a nine-month pilot for on-street Powerful Partnerships recycling in one of BC’s busiest areas, Vancouver’s We continue to build on our solid network of over 160 West End neighbourhood. In keeping with program plan collection and post-collection partners, establishing strong commitments, we placed 31 on-street residential recycling partnerships to support recycling in BC. bins along an 11-block area to test a unique bin design and whether this would assist residents in properly sorting We initiated a pilot with London Drugs to include the paper and containers for recycling. company’s 11 Vancouver stores in our depot network, providing residents more access to locations for recycling Looking Ahead plastic bags, overwrap and foam packaging. We will look In the year ahead, we will continue the rollout of the to expand this partnership to more areas of the province Recycle BC brand, while working to ensure BC residents in 2017. better understand what we do. We are committed to We initiated a relationship with Vancouver Whitecaps FC. providing BC residents with the resources and education Our partnership enables us to engage and educate the to help them recycle more and recycle correctly. team’s large fan base about recycling in their community. As our program evolves and matures, we will build on our We also worked with various community groups through success and continue our role as a leader in responsible our Community Champions program to ensure ongoing recycling to protect our environment and keep BC beautiful. local outreach and education around BC. In the first year of the Community Champions program, four organizations benefited from the support and resources of Recycle BC including Let’s Talk Trash, Ridge Meadows Recycling Society, Northern Environmental Action Team (NEAT) and Recycling and Environmental Action Planning Society (REAPS).

Recycle BC has also joined a broad range of international Allen Langdon leaders and brand owners in plastics and the circular Managing Director, Recycle BC 2 Executive Summary Page 26 of 57

Public Education Materials & Strategies • Big Changes Start at Home campaign ran in 2016 to raise awareness with BC residents of how their recycling has a huge impact on the environment. • Partnered with the Carton Council of Canada, the Vancouver Whitecaps FC and Community Champions to promote recycling. • Enhanced our Community Events Team program to conduct public outreach at various events. • Updated recycling guides delivered to residents in communities directly serviced by Recycle BC. • Recycling guide templates and advertising artwork updated and made available to all collectors.

Collection System & Facilities • 1,271,000 single-family and multi-family households received curbside or multi-family collection services. • Residents in 154 incorporated municipalities, electoral areas, and First Nations. communities have access to curbside and/or multi-family collection services under the Recycle BC program. • 199 depots throughout BC accept Recycle BC materials, operating in 28 regional districts.

Product Environmental Impact Reduction, Reusability & Recyclability • Recycle BC members continue to innovate and explore new technologies to reduce the environmental impact of the materials they distribute to BC consumers. • Meeting the challenges and opportunities of the circular economy was an emerging theme for many Recycle BC members in 2016.

Pollution Prevention Hierarchy and Product/Component Management 5,860 170,711 Tonnes of packaging 8,898 Tonnes of packaging Tonnes of packaging and printed paper and printed paper and printed paper managed by recovery managed by recycling (alternative fuel: an engineered material managed by disposal manufactured to specifications)

Product Sold, Collected and Recovered 238,062 185,477 78% Tonnes of Tonnes of Recovery Rate material supplied by product collected Recycle BC stewards

3 Program Overview Page 27 of 57

Recycle BC is responsible for residential packaging and printed paper recycling throughout British Columbia, Extended Producer Responsibility servicing more than 1.8 million households, or over 98% of In British Columbia, Extended Producer BC households. The recycling program is entirely funded Responsibility, or EPR, is the obligation that by more than 1,100 businesses – such as brand owners, businesses have to reduce the environmental first importers, retailers, manufacturers and restaurants -- impact of their products and packaging. Within that supply packaging and printed paper to BC residents. the EPR model, producers are responsible for Our mission to be a trusted environmental advocate the management of their products throughout and community partner offering equitable, effective and the entire product life cycle, encompassing efficient residential recycling services, and this guides waste reduction, recovery, and recycling. the work we do in communities throughout BC. We ensure packaging and printed paper is collected from households and recycling depots, and then sorted and recycled responsibly. Packaging and Printed Paper Recycle BC provides recycling services either directly Under BC’s Environmental Management Act, “packaging to communities or by working in partnership with local is a material, substance or object that is used to protect, governments, First Nations, private companies and contain or transport a commodity or product, or is other non-profit organizations. In 2016, there were 154 attached to a commodity or product or its container for the communities participating in our curbside and multi-family purpose of marketing or communicating information about collection program, with more serviced by our nearly 200 the commodity or product.” recycling depots. Over 185,000 tonnes of packaging and Under Section 5 of the Recycling Regulation, printed printed paper material was collected from households paper is defined as “paper that is not packaging, and depots. but is printed with text or graphics as a medium for Recycle BC is based in with local staff communicating information, and includes telephone members managing all program operations, including directories, but does not include other types of bound supply chain and promotion and education activities. reference books, bound literary books, or bound text books.” Recycle BC is supported in its work by Canadian Stewardship Services Alliance (CSSA), a national, non-profit organization dedicated to providing support services to stewardship programs across Canada.

4 Page 28 of 57

Board of Directors Recycle BC Members Finance The Recycle BC’s Board of Directors has an overarching the Program role focused on governance and oversight. Program members, or stewards, are businesses or Current members of the Recycle BC board are: organizations that supply packaging and printed paper into the BC residential marketplace, as defined by the BC • John Coyne, Unilever Canada Inc. (Board Chair) Recycling Regulation. Recycle BC operates the residential • Paul Hazra, Overwaitea Food Group recycling system on its members’ behalf. • Bob Chant, Loblaw Companies Limited (Vice Chair) • Debbie Baxter, Deloitte (Independent Director) Stewards are required to regularly report the quantities of obligated materials they supply to households and pay Members of the Finance & Audit Committee are Debbie fees used to support Recycle BC’s program. In 2016, Baxter (Chair) and Paul Hazra. fees totaled more than $83 million. The methodology for calculating material fee rates changed in 2016 following Recycle BC Advisory Committee a broad steward consultation process. More information The Recycle BC Advisory Committee includes about Recycle BC’s stewardship fees is available here. representatives from stakeholders interested in the success of the program, including local governments (appointed In becoming members of Recycle BC, businesses by the Union of BC Municipalities), the waste management exemplify their commitment to environmental sustainability industry (represented by the Coast Waste Management by taking responsibility for the management of their Association), steward industry associations (represented packaging and printed paper at the end of its useful life. by dairy and landscaping associations), and the Recycling Recycle BC members span a breadth of sectors, Council of BC. including:

The Advisory Committee is consulted on core elements of • Food manufacturers the program to identify issues, foster collaborative problem- • Consumer packaged goods (e.g., cosmetics, solving and increased communication, and to provide electronics, toys, etc.) ongoing feedback and advice on the packaging and • Retail businesses (e.g., grocery, general merchandise, printed paper program. convenience, drug store) • Brock Macdonald – CEO, Recycling Council of BC • Banks and credit unions (Advisory Committee Chair) • Municipal governments • Paul Ives – Mayor, Town of Comox • Quick service restaurants • Will Burrows – Executive Director, Coast Waste • Magazine publishers Management Association Click here for a full list of members or for more information • Jozef Hubburmin, CFO, Fresh Direct Produce about becoming a member. • Andrew Doi, Environmental Planner, Metro Vancouver • Rob C. Gay, Board Chair, Regional District of East Kootenay • Dan Rogers, BC Chamber of Commerce • Bill Hardy, General Manager, Northwest Landscape Supply

5 Public Education Page 29 of 57

Informed and motivated residents are essential to the success of the Recycle BC program. Encouraging more recycling with less contamination improves the system and directly reduces our impact on the environment. We are constantly engaging communities and individuals to make them a bigger part of the solution for reducing waste.

Education Campaigns Big Changes Start at Home Campaign In 2016, Recycle BC launched its Big Changes RECYCLING Start at Home campaign, focusing on the REDUCES environmental benefits of recycling. The campaign, WASTE developed to demonstrate to residents that KEEPING GARBAGE OUT OF when they recycle, they can make a difference, OUR LANDFILLS AND OCEANS. highlighted three environmental themes: reducing greenhouse gases, protecting our oceans and saving energy. The campaign ran during the spring and fall, and included TV, radio, online, social media, and out-of-home advertising.

As part of their Recycle BC collection agreements, local government collectors retain responsibility for promotion and education, and receive some funding from Recycle BC for this purpose. Accordingly, Recycle BC shares advertising creative with collectors who wish to use it in their own communities.

BIG CHANGES START AT HOME. FIND OUT MORE AT RECYCLINGINBC.CA

Recycle Your Cartons Co-Campaign Recycle BC partnered with the Carton Council of Canada to produce an education campaign to raise awareness of carton recycling in British Columbia. Specific campaign creative was developed and used across multiple channels with the same key message: Recycle your cartons in your blue bin. The five-week campaign featured animated online ads and social media posts.

6 Holiday Awareness Page 30 of 57 Campaign Recycle BC’s holiday campaign featured a holiday recycling guide, showing residents which common holiday materials can and can’t be included with their household packaging and printed paper recycling. The campaign included animated online ads and general and material specific social media posts.

Vancouver Whitecaps FC Recycle BC initiated a partnership with the Vancouver Whitecaps FC in 2016 to encourage recycling and provide packaging and printed paper recycling education to British Columbians. In the first year of our partnership with the Whitecaps, Recycle BC’s team attended matches offering fans an opportunity to learn more about packaging and printed paper recycling and test their knowledge through fun and interactive games. In addition, the partnership allowed Recycle BC to engage with residents through in-stadium signage, prize opportunities and social media outreach to communicate with British Columbians about the importance of recycling in Vancouver and around BC. The partnership has been very successful and was renewed for 2017.

Community Events Team From June to September, Recycle BC’s events team participated in 17 events in 11 communities. The 2016 tour built on the success of the 2015 launch year, allowing Recycle BC ambassadors to engage with residents and answer any questions they had about packaging and printed paper recycling. Residents participated in interactive and educational games and exhibits. It is estimated that over 150,000 BC residents visited Recycle BC’s display, and the team had more than 27,000 unique interactions with event attendees. A park bench made out of recycled plastic was Recycle BC Events Team 2016 Communities: part of the tour display to show residents • Richmond • Nanoose Bay • Quesnel • Prince George what products can be recycled into. • Surrey • • Pitt Meadows/ • Smithers At the end of the tour, the bench was • Castlegar • Vancouver Maple Ridge • Armstrong donated to the City of Prince George. 7 Community Champions Page 31 of 57 Recycle BC partnered with local environmental organizations that work to promote waste reduction and recycling goals in their communities. Recycle BC provided supporting information, education materials, and grant money to be applied towards the promotion of packaging and printed paper recycling, and ongoing resident outreach and education about what materials are accepted in Recycle BC’s program.

In 2016, Recycle BC partnered with four organizations:

• Recycling and Environmental Action Planning Society (REAPS), Prince George • The Northern Environmental Action Team (NEAT), Fort St John/Peace River Regional District The Recycle BC events team donates a recycled park bench to The City of Prince George to be located in the REAPS demonstration garden. Pictured with • Ridge Meadows Recycling Society, Maple Ridge Recycle BC event team members: Mayor Lyn Hall, City of Prince George and • Let’s Talk Trash, Powell River Regional District Terry McClymont, Executive Director, REAPS.

Resident Awareness Recycle BC continues to measure resident awareness of the program through consumer research and by measuring the number of people visiting the resident-facing website.

Recycle BC will continue to conduct consumer research in 2017 to compare and measure program awareness, especially with the new Recycle BC brand, and the recycling behaviour of BC residents.

2016 Highlights:

75% of residents made an effort to recycle 136,938 unique visitors to the resident-facing website, resulting in 304,246 page views 92% of residents found the recycling services unchanged or better than in 2015 99% of residents were aware of the availability of packaging and printed paper 16% recycling and claimed to recycle of residents were aware of Multi-Material BC

8 Collection Systems and Facilities Page 32 of 57

The Recycle BC program uses three collection methods:

• Curbside collection from residences that each set out Communities serviced directly by material for pick up. Recycle BC: • Multi-family collection from a central location in • City of Coquitlam • Regional District of buildings with five or more residential units. • City of Langley Kootenay Boundary • Depot collection where residents drop off packaging • City of Pitt Meadows (Kootenay Region) and printed paper. • City of Prince George • Regional District of • City of Quesnel North Okanagan Together, Recycle BC has over 160 collection and post- • City of Revelstoke • University collection partners throughout BC. • City of Vancouver Endowment Lands • Regional District of • Village of Expanded Direct Recycling Services Central Kootenay Recycle BC continued to provide a financial incentive (Areas H, I, J) to local governments delivering recycling services and resident education under contract. Under this model, local governments’ solid waste management costs are fully or partially offset, transferring the cost of recycling from Green by Nature Partnership Green by Nature EPR (GBN) is contracted by taxpayers to businesses. Recycle BC to manage residential packaging and printed In other cases, communities have elected to have Recycle paper recycling post-collection. GBN is a partnership of BC directly manage their curbside recycling service, three key organizations in British Columbia: meaning local governments are no longer responsible for • Cascades Recovery, one of Canada’s largest collectors, oversight or management of recycling services or resident processors and marketers of recyclable materials. communication regarding curbside recycling. • Emterra Environmental, one of Canada’s largest waste In 2016, two additional communities transferred management resource management companies that specializes of their curbside recycling services to Recycle BC. The in recyclables collection, processing and marketing City of Vancouver and the City of Pitt Meadows joined 10 services, as well as organics and solid waste collection. other communities whose recycling services are the direct • Merlin Plastics, a North American pioneer in plastics responsibility of Recycle BC, increasing the number of recycling and marketing. directly serviced households from 130,000 households to GBN eliminated the traditional Material Recovery Facility approximately 380,000 households. (MRF) infrastructure and replaced it with a series of Receiving, Consolidation and Transfer facilities (RCTs) and Pre-Conditioning Facilities (PCFs), and a Container Recovery Facility (CRF).

The RCTs segregate the two streams of residential printed paper and packaging collected from curbside, multi-family or depots, baling the fibres separately from the containers. In the PCFs, fibres are segregated from containers. The containers stream is “pre-conditioned” to remove the residue, steel and glass. The remaining containers are baled and shipped to the CRF for sorting. This approach eliminates the unnecessary redundancy and added cost associated with putting optical sorting technology into each PCF across the province. The new approach is both technologically more efficient and financially more prudent.

9 Page 33 of 57

Facilities Network

Dawson Creek

Smithers Terrace Prince Rupert

Prince George

Quesnel

Williams Lake Golden 100 Mile House

Revelstoke

Salmon Arm Kamloops Port McNeill

Powell River Kelowna Squamish Cumberland Princeton Penticton Castlegar Parksville Grand Forks Trail Tofino Nanaimo

Duncan Saanich Victoria

North Vancouver

Burnaby Port Moody Maple Ridge Vancouver New Westminster o 31 Receiving Consolidation and Transfer Facilities Chilliwack Abbotsford Surrey o 11 Pre-Conditioning Facilities 1 Container Recovery Facility 10 o Collection Summary Page 34 of 57

Curbside collection Collection from households that set households out material individually for pick-up 1,271,000 1 in 154 incorporated municipalities, electoral areas and First Nations communities have access to curbside and/or multi-family collection services under the Recycle BC program.

Multi-family collection Collection from a central location in 2 residences with five or more units In 2016, 98% of households in BC had access to the Recycle BC program through its extensive depot network. In 2016, Recycle BC had at total of 199 Depot collection depots in 28 regional districts. 3 Residents drop off their materials

Curbside/Multi-Family Service Areas and Depot Facilities

SERVICE AREA SERVICE AREA FACILITIES CHANGE FACILITIES CHANGE Alberni-Clayoquot 8 - Capital 13 - Curbside 2 Curbside 1 Alberni Clayoquot Regional District 1 Capital Regional District 1 Toquaht Nation 1 Depot 10 Depot 5 Bottle Depot (Saanich) 1 Alberni Valley Landfill 1 Bottle Depot (Victoria) 1 Bamfield Transfer Station 1 Galiano Island Recycling Depot 1 Port Alberni Recycling Depot 1 Hartland Recycling Depot 1 Sonbird Refuse & Recycling 1 Mayne Island Recycling Depot 1 Westcoast Recycling Depot 1 Oak Bay Public Works 1 Multi-Family 1 Pender Island Recycling Depot 1 City of Port Alberni 1 Port Renfrew Transfer Station 1 Salt Spring Island Recycling Depot 1 Bulkley-Nechako 7 - Saturna Island Recycling Depot 1 Curbside 3 Multi-Family 2 Nak’azdli Whut’en1 Capital Regional District 1 Town of Smithers 1 City of Victoria 1 Village of Telkwa 1 Depot 3 Bulkley Valley Bottle Depot 1 Burns Lake Return-It Depot 1 Nak’azdli Recycling Depot 1 Multi-Family 1 Nak’azdli Whut’en 1 11 Page 35 of 57 Curbside/Multi-Family Service Areas and Depot Facilities

SERVICE AREA SERVICE AREA FACILITIES CHANGE FACILITIES CHANGE Cariboo 20 2 Central Okanagan (continued) 14 - Curbside 4 Depot 9 Cariboo Regional District 1 Boucherie Self Storage & Bottle Depot 1 City of Quesnel 1 Columbia Bottle Depot - Central 1 City of Williams Lake 1 Columbia Bottle Depot - Rutland 1 District of 100 Mile House 1 Columbia Bottle Depot - St. Paul 1 Depot 15 Glenmore Landfill Recycling Depot 1 150 Mile House Transfer Station 1 Northwestside Recycling Depot 1 Baker Creek 1 Planet Earth Recycling Ltd. 1 Central Cariboo Transfer Station 1 Traders Cove Recycling Depot 1 Forest Grove Transfer Station 1 Westside Residential Waste Disposal Frost Creek Transfer Station 1 and Recycling Centre 1 Gold Trail Recycling Ltd 1 Columbia-Shuswap 22 - Interlakes Landfill 1 Curbside 3 Lac La Hache 1 City of Revelstoke 1 Lone Butte Transfer Station 1 City of Salmon Arm 1 Quesnel Landfill 1 Town of Golden 1 Watch Lake Landfill 1 Depot 18 Wells 1 Bill’s Bottle Depot 1 Wildwood Transfer Station 1 Falkland Transfer Station 1 Horsefly 1 Glenemma Transfer Station 1 Nimpo Lake 1 Golden Bottle Depot 1 Multi-Family 1 Golden Landfill 1 City of Williams Lake 1 Malakwa Depot 1 Central Coast 3 2 Parson 1 Curbside 1 Revelstoke Bottle Depot 1 Bella Bella 1 Revelstoke Landfill 1 Depot 2 Salmon Arm Landfill 1 Thorsen Creek Landfill and Recycling Centre 1 Scotch Creek Transfer Station 1 Bella Bella Eco Depot 1 Seymour Arm Transfer Station 1 Sicamous Downtown Depot 1 Central Kootenay 8 2 Sicamous Landfill 1 Curbside 5 Skimikin Transfer Station 1 City of Castlegar 1 Sorrento Fire Hall Depot 1 City of Nelson 1 Tappen Co-Op Depot 1 Regional District of Central Kootenay 1 Trout Lake Transfer Station 1 Village of Kaslo 1 Multi-Family 1 Village of Nakusp 1 City of Revelstoke 1 Depot 1 Zion Trucking 1 Comox Valley 8 - Multi-Family 2 Curbside 3 City of Nelson 1 City of Courtenay 1 Central Kootenay 1 Comox Valley Regional District 1 Village of Cumberland 1 Central Okanagan 14 - Depot 4 Curbside 5 Comox Valley Waste Management Centre 1 City of Kelowna 1 Courtenay Return-It Depot 1 City of West Kelowna 1 Denman Island 1 District of Lake Country 1 Hornby Island 1 District of Peachland 1 Multi-Family 1 Regional District of Central Okanagan 1 City of Courtenay 1 Central Okanagan continued next column

12 Page 36 of 57 Curbside/Multi-Family Service Areas and Depot Facilities

SERVICE AREA SERVICE AREA FACILITIES CHANGE FACILITIES CHANGE Cowichan Valley 13 - Greater Vancouver (continued) 72 (4) Curbside 6 City of Port Moody 1 City of Duncan 1 City of Richmond 1 Cowichan Tribes 1 City of Surrey 1 Cowichan Valley Regional District 1 City of Vancouver 1 District Municipality of North Cowichan 1 City of White Rock 1 Town of Ladysmith 1 District of Maple Ridge 1 Town of Lake Cowichan 1 District of North Vancouver 1 Depot 5 District of West Vancouver 1 Bings Creek Recycling Centre 1 University Endowment Lands 1 Island Return-It Duncan 1 Village of Anmore 1 Junction Bottle Depot 1 Depot 40 Meade Creek Recycling Centre 1 Biggar Bottle Depot 1 Peerless Road Recycling Centre 1 Bridgeview Bottle & Return-It Depot 1 Multi-Family 2 Burnaby Eco-Centre 1 Town of Ladysmith 1 City of Richmond Recycling Depot 1 Town of Lake Cowichan 1 Coquitlam Return-It Depot 1 East Kootenay 1 - East Hastings Bottle Depot 1 Depot 1 Edmonds Return-It Depot 1 Cranbrook Bottle Depot 1 Fraser Valley Bottle & Return-It Depot 1 Go Green Bottle Depot 1 Fraser Valley 10 (1) Guildford Bottle Depot 1 Curbside 1 Haney Bottle Depot 1 Seabird Island Band 1 Ironwood Bottle & Return-It Depot 1 Depot 6 Jenill Recycling 1 Abbotsford Bottle Depot 1 Kensington Square Return-It Centre 1 Aldergrove Return-It Depot 1 Kitchener Bottle Depot 1 Mission Recycle Centre 1 Ladner Bottle Depot 1 R&T Recyclables & Bottle Depot 1 Lee’s Bottle Depot 1 Sardis Bottle Depot 1 Lonsdale Bottle & Return-It Depot 1 Seabird Island Eco Station 1 Lougheed Return-It Depot 1 Multi-Family 3 Maple Ridge Bottle Depot 1 City of Abbotsford 1 City of Chilliwack 1 Maple Ridge Recycling Depot 1 Seabird Island Band 1 Metrotown Return-It Centre 1 New Westminster Recycling Depot 1 Fraser-Fort George 4 - Newton Bottle Depot 1 Curbside 1 North Shore Bottle Depot 1 City of Prince George 1 North Vancouver Bottle & Return-It Depot 1 Depot 2 NSRP North Shore Depot 1 Hart Return-It Centre 1 Pitt Meadows Bottle & Return-It Depot 1 P.G. Recycling and Return-It Centre 1 Powell Street Return-It Bottle Depot 1 Multi-Family 1 Sapperton Return-It Depot 1 City of Prince George 1 Scott Road Bottle Depot 1 Greater Vancouver 72 (4) Semiahmoo Bottle Depot 1 Curbside 17 South Van Bottle Depot 1 City of Burnaby 1 Tsawwassen Return-It Centre 1 City of Coquitlam 1 Vancouver Central Return-It Depot 1 City of Langley 1 Vancouver Landfill 1 City of New Westminster 1 Vancouver South Transfer Station 1 City of North Vancouver 1 Walnut Grove Bottle & Return Centre 1 City of Pitt Meadows 1 Willowbrook Recycling 1 City of Port Coquitlam 1 London Drugs Depot 1 Greater Vancouver continued next column Greater Vancouver continued next page 13 Page 37 of 57 Curbside/Multi-Family Service Areas and Depot Facilities

SERVICE AREA SERVICE AREA FACILITIES CHANGE FACILITIES CHANGE Greater Vancouver (continued) 72 (4) Mount Waddington 15 - Multi-Family 15 Curbside 4 City of Burnaby 1 District of Port Hardy 1 City of Coquitlam 1 Regional District of Mount Waddington 1 City of Langley 1 Town of Port McNeill 1 City of New Westminster 1 Village of Alert Bay 1 City of North Vancouver 1 Depot 10 City of Port Coquitlam 1 7 Mile Landfill And Recycling 1 City of Port Moody 1 Cormorant Island Recycling Depot 1 City of Richmond 1 Island Foods Bottle Depot 1 City of Surrey 1 Malcolm Island Recycling Depot 1 City of Vancouver 1 Port Alice Recycling Depot 1 City of White Rock 1 Port Hardy Return It Centre 1 District of Maple Ridge 1 Quatsino Recycling Depot 1 District of North Vancouver 1 Tsulquate Recycling Depot 1 District of West Vancouver 1 Winter Harbour Recycling Depot 1 University Endowment Lands 1 Woss Recycling Depot 1 Multi-Family 1 Kitimat-Stikine 5 - Regional District of Mount Waddington Curbside 1 - Coal Harbour 1 City of Terrace 1 Depot 4 Nanaimo 11 (1) Border Town Recycling 1 Curbside 2 Do Your Part Recycling 1 City of Nanaimo 1 Hazelton Bottle Depot 1 Regional District of Nanaimo 1 Kitimat Bottle Depot 1 Depot 6 Alpine Disposal 1 Kootenay Boundary 11 - Nanaimo Recycling Exchange 1 Curbside 2 Parksville Bottle & Recycling Depot Ltd 1 Regional District of Kootenay Boundary Qualicum Bottle Depot 1 - East Sub Region 1 Sun Coast Recycle Drop Off 1 Regional District of Kootenay Boundary Old Victoria Regional 1 - West Sub Region 1 Multi-Family 3 Depot 6 City of Nanaimo 1 Christina Lake Transfer Station 1 City of Parksville 1 Grand Forks Landfill 1 Nanoose Bay 1 McKelvey Creek Landfill 1 Rock Creek Transfer Station 1 North Okanagan 9 - Trail Bottle Depot 1 Curbside 1 West Boundary Landfill 1 Regional District of North Okanagan 1 Multi-Family 3 Depot 4 City of Rossland 1 Armstrong Bottle Depot 1 City of Trail 1 Interior Freight and Bottle Depot 1 Village of Fruitvale 1 Venture Bottle Depot 1 Venture Training Centre 1 Multi-Family 4 City of Armstrong 1 City of Enderby 1 City of Vernon 1 Village of Lumby 1

Northern Rockies 1 - Depot 1 Widesky Disposals 1

14 Page 38 of 57 Curbside/Multi-Family Service Areas and Depot Facilities

SERVICE AREA SERVICE AREA FACILITIES CHANGE FACILITIES CHANGE Okanagan-Similkameen 19 - Squamish-Lillooet 11 - Curbside 7 Curbside 2 City of Penticton 1 Seton Lake Band 1 District of Summerland 1 Squamish Nation 1 Penticton Indian Band 1 Depot 6 Regional District of Okanagan-Similkameen 1 Carney’s Waste Systems 1 Town of Oliver 1 Function Junction Depot 1 Town of Osoyoos 1 Lillooet 1 Town of Princeton 1 Nesters Depot 1 Depot 9 Pemberton 1 Campbell Mountain Landfill 1 Pemberton Recycling Centre 1 J & C Bottle Depot 1 Multi-Family 3 Keremeos Transfer Station 1 District of Squamish 1 Oliver Landfill 1 Resort Municipality of Whistler 1 Osoyoos Bottle Depot 1 Village of Pemberton 1 Osoyoos Landfill 1 Strathcona 11 - Princeton Landfill 1 Curbside 3 Summerland Landfill 1 City of Campbell River 1 T2 Market Recycle Depot 1 Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nation 1 Multi-Family 3 Strathcona Regional District 1 City of Penticton 1 Depot 7 District of Summerland 1 Campbell River Waste Management Centre 1 Town of Oliver 1 Cortes Island 1 Peace River 11 - Gold River 1 Depot 11 Island Return-It Campbell River 1 Buick 1 Sayward 1 Cecil Lake 1 Tahsis 1 DC Campbell Recycling Ltd. 1 Zeballos 1 Goodlow 1 Multi-Family 1 Kelly Lake 1 City of Campbell River 1 Prespatou 1 Sunshine Coast 3 - Rose Prairie 1 Depot 3 Tomslake 1 Gibsons Recycling Depot 1 Tumbler Ridge Transtor 1 Pender Harbour Recycling Depot 1 Wonowon 1 Sechelt Recycling Depot 1 Rolla Transfer Station 1 Thompson-Nicola 3 (1) Powell River 6 (1) Depot 3 Depot 6 General Grant’s - Northshore 1 Augusta 1 General Grant’s - Sahali 1 Gillies Bay Community Depot 1 Lorne Street Bottle 1 Lund Community Depot 1 Powell River South (Black Point) Community Depot 1 Sliammon Community Depot 1 Town Centre Depot 1

Skeena-Queen Charlotte 3 (2) Grand Total 322 (4) Curbside 1 Curbside 75 Gitxaala Nation 1 Depot 199 Depot 2 Multi-Family 48 Kitkatla 1 Mainland (Regional) Recycling Depot 1

15 Managing Environmental Impacts Page 39 of 57

Recycle BC works to reduce the environmental impact of While that work takes place at both a global level and its program materials through innovation and managing local level, Recycle BC members continue to work the collection and recycling of material. Innovation independently and with their suppliers and processors on includes engaging with producers to advance the recycling a number of fronts to reduce the environmental impact of of various materials and finding new ways to encourage the packaging and paper they distribute to BC consumers. good recycling practices. Management involves Examples of this work includes: partnering with communities on collection and overseeing • Light weighting packaging to reduce material while the sale of processed material to selected end markets. maintaining packaging integrity. • Simplifying packaging and paper products by removing Innovation unnecessary layers or components to improve recyclability. A key theme that emerged in 2016 is an increasing • Utilizing lifecycle modeling tools in order to more fully interest and engagement in circular economy thinking understand the impact of their packaging throughout by Recycle BC members. The circular economy focus its lifecycle – encompassing both post-consumer centres on creating systems and infrastructure to allow for management and carbon impact. the continuous, circular flows of materials and it is in large • Removing elements from packaging that might act as part due to the work of the Ellen McArthur Foundation contaminants in the recycling stream such as utilizing and Canada’s Circular Economy Innovation Lab (CEIL). new adhesives that are more compatible with the Both of these entities are working with a range of recycling process. organizations, including Canadian producers and Recycle • Commitments to using 100% recyclable materials within BC, to overcome the systemic hurdles that prevent the a specified timeframe in order to support the market for continuous flow of materials. recycled materials. The Ellen McArthur Foundation and CEIL are creating • Commitments to convert all packaging to recyclable opportunities for parties across the supply chain to materials within a defined timeframe. collaborate and thereby increase the capture and • Optimizing packaging in a way that reduces the carbon reprocessing of valuable materials so they can be footprint over its lifetime. repurposed for further use, thereby decreasing reliance All of these factors play a role in the way in which on virgin material inputs. The momentum behind this work Recycle BC members innovate and build eco-efficiency will continue into 2017 and beyond, involving Recycle BC in the packaging and printed paper products distributed and a number of its members and processors. to British Columbians. Three innovation efforts from 2016 are summarized below.

16 Keurig K-Cup® Pod Testing Page 40 of 57 Environmental responsibility is an important aspect of business, and by working with producers directly, we can provide some insight into the recycling process and how packaging can be effectively and efficiently recycled. One example of how we do this is through our partnership with Keurig where we are working together to optimize recycling of their K-Cup® pod. Our work with Keurig started in 2016 and is great for our program and BC residents because it supports the transition to more recyclable packaging. We hope the work we are doing with Keurig will provide a template for producers in moving to more recyclable packaging and prove that small items can be effectively captured and recycled in an efficient way. Learn more about our work with Keurig in our video:

Press the Play Button to open the video in your browser

New Plastics Economy Recycle BC is a partner in the New Plastics Economy, an ambitious, three-year initiative to build momentum towards a plastics system that features stronger economics and better environmental outcomes. Led by the Ellen MacArthur Foundation, the initiative brings together key stakeholders from around the world to re- think and re-design the future of plastics, starting with packaging, by applying the principles of the circular economy. Recycle BC is working with other program partners including The Coca-Cola Company, MARS and Unilever to collaborate and shift the future of plastics.

17 Page 41 of 57

Streetscape Project 2016 Project Objectives Packaging and printed paper (PPP) easily becomes • Increase diversion of solid waste disposed in the contaminated when mixed with non-PPP materials (such public realm; as organics and other non-packaging materials), which • Communicate, reinforce and support waste diversion can affect their ability to be sorted and ultimately recycled. behaviors with a focus on recycling; Finding a more effective approach to having residents • Identify opportunities and challenges with on-street properly recycle PPP in streetscape bins, also known as recycling systems to determine the best course of action; on-street recycling bins, outside their homes will help • Balance operational needs with diversion goals; and improve the opportunity for PPP capture and recycling. • Align the pilot with Recycle BC’s residential collection program in the community. As part of Recycle BC’s program plan commitment, we initiated a series of pilot projects to study the feasibility of What We Found PPP streetscape bins. Previous pilot projects conducted in During the first composition audit conducted in August 2014 and 2015 involved composition audits to understand 2016, we found that while the overall amount of PPP the quality and quantity of PPP collected in streetscape collected in streetscape was fairly low, the quality of the recycling receptacles. material (fibres and mixed containers) was quite high with good recovery at the processor. The data showed that In 2016, Recycle BC and the City of Vancouver conducted the Emily Carr/Metro Vancouver bin design helped those a joint pilot project to test the performance of streetscape who chose to recycle. In fact, they were doing so quite bins designed to collect source-separated PPP, organics, accurately with low contamination. However, there was still and garbage. The nine-month long timeframe was used a large number of pedestrians who chose not to recycle to see if consumer recycling behaviour can be shifted at all. The garbage bin had a high level of recyclables and improved over time, with a focus on recycling hot and mixed into the garbage. Recycle BC conducted a second cold drink cups and other containers. composition audit during January 2017. The nine-month Recycle BC worked in partnership with Emily Carr pilot concludes in May 2017. University of Art + Design and Metro Vancouver to design the bins. A total of 31 recycling stations were placed in What is a streetscape? Vancouver’s West End, resulting in one or more recycling Streetscape venues refer to municipal property that is stations every one or two blocks in the designated area. not industrial, commercial or institutional property and The majority of the recycling stations had three adjoined comprises the following: receptacles: one for mixed paper recycling, and one • Sidewalks which are municipal property, which for containers recycling, and one for garbage. Some adjoin buildings in an urban commercial area and locations also offered compostable organics recycling. which are used for pedestrian traffic; The pilot project was also supported by a promotion • Plazas or town squares which are municipal and education campaign that included posters in local property and which are available to the public; or restaurants and retail businesses, and advertisements in • Parks which are municipal property. transit shelters near the streetscape receptacles. 18 Material Management Material Supplied, Collected andPage 42 of 57 Pollution Prevention Hierarchy Recovery Rate Recycle BC’s packaging and printed paper Stewardship Tonnes of packaging and printed paper materials supplied Plan includes reference to the pollution prevention and collected in 2016 decreased slightly from 2015, hierarchy, which is a series of steps to manage waste, in though the recovery rate increased. order of the preferred approach. It’s often simplified to 2016 2015* “reduce, reuse, recycle”. Tonnes of Material ...... 238,062...... 243,191 Recycle BC’s involvement in the hierarchy includes: supplied by members Tonnes of Material Collected ...... 185,477...... 185,403 • Reducing the environmental impact of producing Recovery Rate**...... 78%...... 76% the product: member fees are based on the amount *2015 figures restated to account for the exclusion of third party tonnes (e.g. and the kind of packaging they supply to BC residents. Encorp Schedule 1 beverage containers) which are tonnes managed in the Stewards using less packaging pay lower fees. Recycle BC system but have been credited as recycled performance by • Recycling the product: fees pay for the collection and another scheme from 2016 onwards recycling of packaging and printed paper in BC. **Recycle BC’s recovery rate is determined by dividing collected tonnes by steward-reported tonnes. 2016 collected material in relation to the Recycling End-Markets pollution prevention hierarchy: When selecting end-markets for materials, Recycle Tonnes of material managed by recycling...... 170,711 BC gives priority to those located in countries that are Tonnes of material managed by recovery...... 5,860 (alternative fuel: an engineered material manufactured to specifications) members of the Organization for Economic Co-operation Tonnes of material managed by disposal...... 8,898 and Development (OECD). Recycle BC will allow Percentage of collected tonnes marketing to packaging and printed paper end-markets managed by recycling...... 92% located in countries that are not members of OECD only if the end-market meets or exceeds environmental, health *Data above represents audited data from processor on quantities of materials shipped. Prior year-end inventory shipped in the current year and and safety standards equivalent to OECD standards. unprocessed and unshipped inventories at year end are both considered. • Plastics – Sold to end-markets in BC. • Paper/Fibres (including aseptic/polycoat containers) – The majority is sold to end-markets in China, with the rest either remaining in BC of going to end-markets in the United States and South Korea. • Glass – Sold to end-markets in BC. • Metals – Largely sold to end-markets in Ontario, with the rest either remaining in BC or going to end markets in the United States.

19 Page 43 of 57 Material Collected by Regional District SERVICED KG PER CAPITA REGIONAL DISTRICT TONNES POPULATION (SERVICED) Alberni-Clayoquot 1,135 30,981 36.6

Bulkley-Nechako 511 35,518 14.4

Capital 20,421 383,291 53.3

Cariboo 1,686 60,459 27.9

Central Coast 30 3,197 9.2

Central Kootenay 805 41,693 19.3

Central Okanagan 11,483 194,882 58.9

Columbia-Shuswap 2,316 51,330 45.1

Comox Valley 2,678 66,527 40.3

Cowichan Valley 5,278 82,092 64.3

East Kootenay 775 44,718 17.3

Fraser Valley 600 295,318 2.0

Fraser-Fort George 1,913 85,365 22.4

Greater Vancouver 111,354 2,462,552 45.2

Kitimat-Stikine 614 34,358 17.9

Kootenay Boundary 829 31,390 26.4

Mount Waddington 365 10,909 33.5

Nanaimo 8,045 151,310 53.2

North Okanagan 3,881 84,354 46.0

Northern Rockies 24 5,112 4.6

Okanagan-Similkameen 4,472 82,986 53.9

Peace River 227 56,098 4.0

Powell River 701 19,623 35.7

Skeena-Queen Charlotte 482 13,123 36.7

Squamish-Lillooet 1,807 42,507 42.5

Stikine - - 0.0

Strathcona 1,690 42,093 40.1

Sunshine Coast 1,198 29,649 40.4

Thompson-Nicola 157 119,022 1.3

Total 185,477 4,560,457 40.7

20 Program Performance Page 44 of 57

Year Over Year Performance YOY 2016 2015* VARIANCE % Recycled Tonnes ** 170,711 177,477 -3.8%

Collected Tonnes ** 185,477 185,403 0.0%

Recovery Rate ** 78% 76% 2.2%

Provincial Recovery Target 75% 75% 0.0%

Population serviced by PPP Program 4,560,457 4,282,219 6.5%

Recovered KG per Capita * 40.7 43.3 -6.1%

Number of Households Serviced (Single-Family & Multi-Family) 1,271,000 1,255,000 1.3%

Percent of Households with Access to Depots 98% 97% 0.8%

Number of Stewards 1,114 1,036 7.5%

Consumer Awareness of Recycle BC Program 16% 11% 45.5%

* 2015 results have been restated to account for the exclusion of third party tonnes (e.g. Encorp Schedule 1 beverage containers) which are tonnes managed in the Recycle BC system but have been credited as recycled performance by another stewardship organization from 2016 onwards

** Net of third-party tonnes

Performance Against Stewardship Plan Targets STRATEGIES FOR PLAN TARGET 2016 RESULTS IMPROVEMENT

1. Annually maintain, at Recycle BC collected 185,477 tonnes of material in 2016, Recycle BC continues to a minimum, the overall which represents 78% of the tonnes supplied into the add more communities to provincial collection residential marketplace by our member-stewards. the program. rate of 208,700 tonnes as assessed during preparation of the report titled Current System for

Managing Residential Packaging and Printed Paper (March 2012).

2. Recovery/Collection • Tonnes of PPP collected within each Regional District and Recycle BC continues to Reporting Kilograms per capita of PPP collected within each Regional add more communities to District: See summary table “Material Collected by Regional the program. District” at page 20 • Tonnes of PPP recycled and collected: page 21 • Kilograms per capita of PPP recycled and recovered for the province: page 21 • Recovery rate expressed as a percentage for the province: 78%

21 STRATEGIES FOR PLAN TARGET 2016 RESULTS PageIMPROVEMENT 45 of 57

3a. Annually maintain, 873,744 single-family households and 397,458 multi-family Household service levels at a minimum, single- households received curbside and multi-family collection are expected to continue family and multi-family services from Recycle BC. growing with population household service levels, growth and as more The adjusted targets (less local governments that did not where these households communities and stewards participate) are 793,000 single-family households and currently receive PPP join the program. 364,000 multi-family households. collection.

3b. Annually provide Recycle BC provided curbside collection of PPP to 38,000 Local governments curbside collection of households previously only receiving curbside garbage representing the remaining PPP to the approximately collection service through both RFPs and service via local households either: governments/First Nations. 102,000 households 1. Did not respond by the currently only receiving deadline; garbage collection 2. Indicated they prefer service. depot collection; or 3. The bid price received by Recycle BC was higher than Recycle BC’s offer.

3c. Annually maintain depot Recycle BC added 8 new depot sites and closed 13 sites in Recycle BC will add more collection of PPP for the 2016, for a net reduction of 5. Collectively, the 199 depots depots as more stewards approximately 165,000 serve in total close to 572,500* households to which join the program. single-family households Recycle BC does not provide single-family or multi-family and the approximately curbside collection services. 91,000 Multi-Family households without

collection services.

3d. Annually provide depot Recycle BC added 8 new depot sites and closed 13 sites in Recycle BC plans to add collection of PPP for the 2016, for a net reduction of 5. Collectively, the 199 depots additional depots in 2017. approximately 17,000 serve in total close to 572,500* households to which multi-family households Recycle BC does not provide single-family or multi-family currently without depot curbside collection services. collection service.

3e. Implement streetscape Recycle BC undertook a streetscape pilot in the City Nine-month pilot project collection services. of Vancouver in 2016 to better understand residents’ launched in 2016 with streetscape recycling behaviour. composition audits in 2016 and 2017.

4. Single-family and 873,744 single-family households and 397,458 multi-family multi-family households households received curbside or multi-family collection receiving household services from Recycle BC. 199 depots accepted PPP. collection services, and number and location of depots accepting PPP.

5. Establish a resident Recycle BC carried out consumer research in June 2016 to awareness benchmark. continue to inform promotion & education strategies, and resident awareness of the program.

*Based on estimated households covered using depot-based accessibility standards less curbside and multifamily households under contract.

22 STRATEGIES FOR PLAN TARGET 2016 RESULTS IMPROVEMENTPage 46 of 57

6. Consumer awareness Percentage of residents aware of PPP stewardship program: reporting. • 99% of people are aware of the availability of packaging and printed paper recycling and claim to recycle. Percentage of residents reporting use of available collection services: • 75% make an effort to recycle, and 25% recycle only if it is convenient. Visits to the ‘resident’ section of the Recycle BC website: • In 2016, 136,938 people visited the resident website RecyclingInBC.ca, resulting in 304,246 total page views.

7a. Target PPP for which Recycle BC uses promotion and education materials Recycle BC will continue recycling end-markets to highlight for residents those PPP materials for which to provide promotion and exist for collection. sustainable and/or commercially viable recycling end- education materials to markets exist. educate residents on the materials accepted in its

program.

7b. Direct 85% to 90% of In 2016, 170,711 tonnes of Recycle BC’s material were collected PPP to recycling shipped to recycling end-markets while 185,477 tonnes were commodity markets. collected (92%).

8. Pollution Prevention • Tonnes of material managed by recycling: 170,711 Hierarchy Reporting. • Tonnes of material managed by recovery (alternative fuel: an engineered material manufactured to specifications): 5,860 • Tonnes of material managed by disposal: 8,898 • Examples of environmental impact measures to characterize actions intended to reduce the environmental impacts of PPP by producers, members of Recycle BC, and by Recycle BC: • Partnership with Keurig to find better ways to recycle their K-Cup pods • Continued participation in the New Plastics Economy initiative led by the Ellen MacArthur Foundation • Joint pilot project with City of Vancouver to test performance of PPP streetscape bins

9. Conduct research and Recycle BC is responsible for completing its research and Recycle BC undertook develop a data tracking development of a data tracking and modeling system for research on greenhouse and modeling system greenhouse gas emissions by the end of 2016. gas emission reporting for greenhouse gas in 2016. Full reporting is emissions (GHG). required by 2019.

10. Other reporting metric: • Total program cost (net) per tonne recovered: $398.10 program cost. • Total program cost per household (SF and MF only): $40.00

Additional Information and Third Party Assurance Operational Effectiveness Indicators: KG per capita of material recycled for the province:...... 37.4 Operational Efficiency Indicators: Total program cost (net) per tonne recovered ...... $398.10 Total program cost per household ...... $40.00 23 Financial PerformancePage 47 of 57

2016 Performance Continues Program’s Financial Stability In 2016, Recycle BC incurred $73.8 million in net operating expenses to manage 185,477 tonnes of packaging and printed paper material. Material management, the cost to collect and process the material net of commodity revenues, accounted for 85% of the annual expense. The remainder of Recycle BC’s operating expenses were used to deliver promotion and education and program management oversight.

The total cost per tonne increased slightly to $398.10 in 2016 due primarily to a small increase in households being served by Recycle BC over the course of the year. Collected tonnes remained flat over 2015.

Recycle BC maintained a strong financial position in 2016, supporting growth with onboarding more interested communities in 2017. Operating reserves (see Note 5 to Financial Statements) are in place to meet Recycle BC’s cash flow requirements and ensure sufficient funds are always available to pay the hundreds of local governments, small businesses and other private operators who rely on us for regular and prompt payment for their services.

24 Tel: 416 865 0200 BDO Canada LLP Fax: 416 865 0887 TD Bank Tower www.bdo.ca 66 Wellington Street West Page 48 of 57 Suite 3600, P.O. Box 131 Financial Performance Toronto ON M5K 1H1 Canada

Independent Auditor's Report

To the Members of Multi-Material BC Society We have audited the accompanying financial statements of Multi-Material BC Society, which comprise the balance sheet as at December 31, 2016, and the statements of changes in net assets, operations and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Multi-Material BC Society as at December 31, 2016, and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Chartered Professional Accountants, Licensed Public Accountants March 30, 2017 Toronto, Ontario

25 BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. 2 Page 49 of 57 Multi-Material BC Society Balance Sheet

December 31 2016 2015

Assets

Current Cash $ 57,938,814 $ 43,711,956 Accounts and other receivables (Note 2) 6,416,416 4,928,319 Prepaid expenses 80,785 71,834

64,436,015 48,712,109 Capital assets (Note 3) 26,306 26,270

$ 64,462,321 $ 48,738,379

Liabilities and Net Assets

Current Accounts payable and accrued liabilities $ 7,097,688 $ 6,646,640 Deferred revenue (Note 4) 5,000,000 - Due to CSSA (Note 5) 725,097 667,153

12,822,785 7,313,793

Net Assets Invested in capital assets 26,306 26,270 Unrestricted 11,613,230 1,398,316 Internally restricted (Note 6) 40,000,000 40,000,000

51,639,536 41,424,586

$ 64,462,321 $ 48,738,379

26 The accompanying notes are an integral part of these financial statements. 3 Page 50 of 57 Multi-Material BC Society Statement of Changes in Net Assets

For the year ended December 31, 2016

Invested in Capital Internally Assets Unrestricted Restricted Total

Balance, beginning of year $ 26,270 $ 1,398,316 $ 40,000,000 $ 41,424,586

Excess (deficiency) of revenue over expenses for the year (9,542) 10,224,492 - 10,214,950

Investment in capital assets 9,578 (9,578) --

Balance, end of year $ 26,306 $ 11,613,230 $ 40,000,000 $ 51,639,536

For the year ended December 31, 2015

Invested in Capital Internally Assets Unrestricted Restricted Total

Balance, beginning of year $ 35,027 $ 10,059,692 $ 20,000,000 $ 30,094,719

Excess (deficiency) of revenue over expenses for the year (8,757) 11,338,624 - 11,329,867

Transfer to operating reserve (Note 6) - (20,000,000) 20,000,000 -

Balance, end of year $ 26,270 $ 1,398,316 $ 40,000,000 $ 41,424,586

The accompanying notes are an integral part of these financial statements. 27 4 Page 51 of 57 Multi-Material BC Society Statement of Operations

For the year ended December 31 2016 2015

Revenue Fee revenue $ 83,648,174 $ 84,755,101 Investment income 398,503 376,502

84,046,677 85,131,603

Expenses Material management costs (Note 7) 63,012,718 64,143,095 Promotion and education 1,467,374 946,257 Research and program development 214,178 160,437 Program management (Note 5) 9,137,457 8,551,947

73,831,727 73,801,736

Excess of revenue over expenses for the year $ 10,214,950 $ 11,329,867

28 The accompanying notes are an integral part of these financial statements. 5 Page 52 of 57 Multi-Material BC Society Statement of Cash Flows

For the year ended December 31 2016 2015

Cash provided by (used in)

Operating activities Excess of revenue over expenses for the year $ 10,214,950 $ 11,329,867 Adjustments to reconcile excess of revenue over expenses for the year to cash provided by operating activities Amortization of capital assets 9,542 8,757 Changes in non-cash working capital balances: Accounts and other receivables (1,488,097) 2,961,053 Prepaid expenses (8,951) (64,874) Accounts payable and accrued liabilities 451,048 111,574 Deferred revenue 5,000,000 - Due to CSSA 57,944 (475,473)

14,236,436 13,870,904

Investing activities Proceeds from investments - 25,210,788 Purchase of capital assets (9,578) -

(9,578) 25,210,788

Increase in cash during the year 14,226,858 39,081,692

Cash, beginning of year 43,711,956 4,630,264

Cash, end of year $ 57,938,814 $ 43,711,956

The accompanying notes are an integral part of these financial statements. 29 6 Page 53 of 57 Multi-Material BC Society Notes to Financial Statements

December 31, 2016

1. Significant Accounting Policies

The following is a summary of significant accounting policies of the Organization:

(a) Business Organization and Operations

Multi-Material BC Society (the "Organization") was incorporated under the British Columbia Society Act on May 4, 2011 to undertake responsibility for the stewardship of the packaging and printed paper environmental management program under provincial legislation.

The Packaging and Printed Paper Stewardship Plan ("Program Plan") was approved by the BC Ministry of Environment in April 2013 and the program was launched in May 2014.

On January 1, 2017, the Organization entered into an asset purchase agreement with MMBC Recycling Inc. ("MMBCI") whereby MMBCI will purchase all assets, assume all obligations and will continue the operations of program under federal legislation.

The Organization is a not-for-profit organization and as such is not subject to income taxes.

(b) Basis of Accounting

The financial statements have been prepared using Canadian accounting standards for not-for-profit organizations.

(c) Revenue Recognition

Fee revenue is based on reported tonnages for members with signed Membership Agreements with the Organization. Revenue is recognized when tonnage is reported, fees are received or receivable and collection is reasonably assured. Revenue arising from member reported tonnages or adjustments for prior years’ obligations and revenues resulting from compliance and enforcement activities are recognized when the amount can be reasonably estimated and collection is reasonably assured.

The Organization follows the deferral method of accounting for revenues. Amounts received for programs are recognized as revenue when the related expenses are incurred.

(d) Financial Instruments

Unless otherwise noted, the Organization initially measures its financial assets and liabilities at fair value and subsequently measures its financial assets and liabilities at amortized cost.

30 7 Page 54 of 57 Multi-Material BC Society Notes to Financial Statements

December 31, 2016

1. Significant Accounting Policies - (Continued)

(e) Capital Assets

Capital assets are recorded at cost less accumulated amortization and is amortized on the following basis:

Computer equipment - 3 years straight line Furniture and fixtures - 5 years straight line

(f) Impairment of Long-Lived Assets

When a long-lived asset no longer has any long-term service potential to the Organization, the excess of its net carrying amount over any residual value is recognized as an expense in the statement of operations.

(g) Use of Estimates

The preparation of financial statements in accordance with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accounting estimates include estimates of unreported tonnages and collectability of steward fees, accrued post collection costs and the valuation of accounts receivable. Actual results could differ from management's best estimates as additional information becomes available in the future.

2. Accounts and Other Receivables

2016 2015

Fee revenue $ 1,432,159 $ 2,746,113 Outstanding credits for indexed value of commodities processed, net 3,139,182 1,731,582 Other 1,900,419 454,174 Allowance for doubtful accounts (55,344) (3,550)

$ 6,416,416 $ 4,928,319

31 8 Page 55 of 57 Multi-Material BC Society Notes to Financial Statements

December 31, 2016

3. Capital Assets

2016 2015

Accumulated Accumulated Cost Amortization Cost Amortization

Computer equipment $ 9,578 $ 786 $- $- Furniture and fixtures 43,784 26,270 43,784 17,514

53,362 27,056 43,784 17,514

$ 26,306 $ 26,270

4. Deferred Revenue

In 2016, the Organization received a prepayment of $5,000,000 for future Steward Fees. Revenue recognition for this amount will begin in 2017.

5. Due to CSSA and Related Party Transactions

Effective June 2013, the Organization entered into a 5 year Management Service Agreement with Canadian Stewardship Services Alliance Inc. ("CSSA") for management services including administrative and technical support, other services and facilities for administrative, technical and reporting activities. During the year, charges totaling $6,373,160 (2015 - $5,977,226) were paid to CSSA pursuant to this contract, which includes reimbursement of costs paid by CSSA on behalf of the Organization and are included in program management expenses. Included in accounts payable and accrued liabilities is $725,097 (2015 - $667,153) relating to these services.

The Organization's board of directors consists of 67% (2015 - 100%) who are also members of the CSSA board of directors; therefore, the CSSA board of directors has control over the Organization.

All transactions between the Organization and CSSA are in the normal course of operations and are recorded at their exchange amount as agreed upon by the parties.

6. Internally Restricted Net Assets

The directors authorized the establishment of the Operating Reserve to provide for an appropriate level of working capital and to satisfy all of its obligations for a reasonable period of time. During the year, the Organization internally restricted $Nil (2015 – $20,000,000) for this purpose.

32 9 Page 56 of 57 Multi-Material BC Society Notes to Financial Statements

December 31, 2016

7. Material Management Costs

Material management costs include all costs related to the collection, transportation and processing of materials managed through the program, net of credits for indexed value of commodities processed.

8. Commitments

Under the terms of a realty lease agreement, the Organization is committed to pay basic rent approximately as follows:

2017 $ 47,700 2018 48,100 2019 8,000

$ 103,800

9. Financial Instrument Risk Exposure and Management

Management has established policies and procedures to manage risks related to financial instruments, with the objective of minimizing any adverse effects on financial performance. Unless otherwise noted, it is management's opinion that the Organization is not exposed to significant interest rate, currency or credit risks arising from its financial instruments. A brief description of management's assessments of these risks is as follows:

(a) Credit Risk:

Financial instruments potentially exposed to credit risk include cash and accounts and other receivables. Management considers its exposure to credit risk over cash to be remote as the Organization holds cash deposits at a major Canadian bank. Accounts and other receivables are monitored regularly for collections and the carrying amount represents the maximum credit risk exposure. The Organization's provision for uncollectable accounts receivable is $55,344 (2015 - $3,550).

33 10 Page 57 of 57

Making a difference together. 230-171 Esplanade West North Vancouver, BC V7M 3J9

778-588-9504 Toll Free: 1-855-875-3596 [email protected]

Stewards: 1-888-980-9549 [email protected]

Collectors: 778-588-9504 Toll Free: 1-855-875-3596 [email protected]

RecycleBC.ca @RecycleBC

Recycle BC

@RecycleBC