BEVERAGE CONTAINER MANAGEMENT BOARD (BCMB) Benchmarking Evaluation of Alberta’s Stewardship Program for Recycling Empty Beverage Containers Final Report Prepared For: Beverage Container Management Board Prepared By: Meyers Norris Penny LLP 400, 10104 - 103 Avenue Edmonton AB T5J 0H8 MNP Contact: Rod Simpson Date: Monday, June 28, 2010 Benchmarking Evaluation of Alberta’s Stewardship Program for Recycling Empty Beverage Containers AUTHORS QUALITY ASSURANCE PARTNER Rod Simpson PROJECT MANAGER Nicole Asselin SUBJECT MATTER ADVISOR Charlie Meredith 2 Benchmarking Evaluation of Alberta’s Stewardship Program for Recycling Empty Beverage Containers TABLE OF CONTENTS Executive Summary ..............................................................................................................................4 1. Introduction................................................................................................................................16 1.1. Project Objectives and Scope of Work..........................................................................................................................16 1.2. Key Questions to be Addressed....................................................................................................................................16 1.3. Project Deliverables and Timelines ...............................................................................................................................17 2. Approach & Methodology.........................................................................................................18 2.1. Preliminary Research....................................................................................................................................................18 2.2. In Depth Benchmarking ................................................................................................................................................18 2.3. Assessment and Evaluation..........................................................................................................................................20 3. Program Attributes & Performance.........................................................................................21 3.1. Legislation ....................................................................................................................................................................21 3.2. Governing Structure......................................................................................................................................................23 3.3. Program Structure ........................................................................................................................................................25 3.4. Depot Infrastructure and Operations .............................................................................................................................26 3.5. Technology...................................................................................................................................................................29 3.6. Transportation ..............................................................................................................................................................32 3.7. Funding Mechanism......................................................................................................................................................33 3.8. Program Scope.............................................................................................................................................................36 3.9. Deposit Values..............................................................................................................................................................37 3.10. Beverage Container Sales ............................................................................................................................................39 3.11. Recoveries....................................................................................................................................................................42 3.12. Costs ............................................................................................................................................................................45 3.13. Marketing Initiatives ......................................................................................................................................................47 3.14. Research and Development..........................................................................................................................................49 3.15. Incineration for End Use ...............................................................................................................................................49 3.16. Comparisons ................................................................................................................................................................50 3.17. Learnings from Europe .................................................................................................................................................50 4. Opportunities for Consideration..............................................................................................52 4.1. Fundamentally Change the Funding Modelto Create Incentives for Brandowners to Enhance Container Design ..........52 4.2. Further Broaden Program Scope ..................................................................................................................................53 4.3. Develop and Support Regional Downstream Markets ...................................................................................................54 4.4. Support Research Projects to Enhance RE-Use and Recycling ....................................................................................54 4.5. Enhance Depot Role, Technology, Location and Operations ........................................................................................55 4.6. There are few Strategic and Operational Synergies with Other Recycling Programs.....................................................58 4.7. Local Marketing Initiatives Appear to Most Effectively Increase Recoveries..................................................................59 5. Program Summaries .................................................................................................................61 5.1. Alberta..........................................................................................................................................................................61 5.2. British Columbia............................................................................................................................................................65 5.3. Saskatchewan ..............................................................................................................................................................69 5.4. New Brunswick .............................................................................................................................................................71 5.5. California ......................................................................................................................................................................74 5.6. Connecticut...................................................................................................................................................................77 5.7. Michigan .......................................................................................................................................................................79 5.8. New York......................................................................................................................................................................80 5.9. Denmark.......................................................................................................................................................................81 5.10. Germany.......................................................................................................................................................................83 5.11. Norway .........................................................................................................................................................................85 5.12. Sweden ........................................................................................................................................................................88 5.13. South Australia .............................................................................................................................................................89 6. Appendices ................................................................................................................................91 6.1. Phase 1 – Interim Report ..............................................................................................................................................91 6.2. Data Questionnaire.....................................................................................................................................................101 6.3. Interview Protocol .......................................................................................................................................................105