In an effort to reduce waste and encourage recycling, Alberta's new Extended Producer Responsibility (EPR) program is making producers responsible for collecting and managing the waste generated from their products and packaging.

In this article, we highlight key features of the new EPR model so that municipalities can navigate the transition to this new waste diversion model. We also touch on the factors to consider when assessing current service agreements being put forward for review. 

Overview of new EPR Program 

Alberta’s Extended Producer Responsibility Regulation (EPR Regulation) came into force on November 30, 2022 in order to create Alberta's new EPR program. The EPR Regulation establishes the Alberta Recycling Management Authority (ARMA) as the management board responsible for oversight of the single-use products, packaging and paper products (PPP) and hazardous and special products (HSP) systems. 

An EPR is a waste management model that extends responsibility for waste products to the producers who made them. Although the EPR model is new to Alberta, other provinces in Canada such as Ontario, Manitoba, Saskatchewan and British Columbia, all have established EPR models in place.

The main positive for municipalities under an EPR model is reduced cost; producers will be fully responsible for managing the waste created by the goods they produce. This is markedly different from the traditional waste model, under which municipalities and other levels of government have complete responsibility for dealing with waste, usually by operating landfills and running various recycling programs. 

The EPR Regulation requires that producers provide the following minimum services to communities:

• curbside collection every 2 weeks, for single-family dwellings that currently have curbside recycling collection; and
• depot access and collection for communities that currently have depot recycling services;[1]

The start date for this service depends on whether a municipality is registered under Phase 1 or Phase 2 of the program.  

Key Dates

Municipalities with existing recycling services that registered for the EPR before December 31, 2023 will start receiving collection or full cost recovery under the EPR program in Phase 1, starting April 1, 2025. Municipalities that registered after December 31, 2023, and communities currently without recycling services, will start receiving recycling collection services or full cost recovery in Phase 2, starting October 1, 2026. 

Producer Responsibility Organizations (PROs)

A producer responsibility organization, or PRO, is a non-profit established to contract with producers to help them meet their regulatory obligations under the EPR regulation. In order to register as a PRO in Alberta under the Regulation, a producer responsibility organization must: 

• not be affiliated with an entity or individual that provides recycling services or waste management services for designated material; and
• be established as a not-for-profit entity that is legally permitted to conduct business in Alberta.

Currently, Circular Materials is the only registered PRO with ARMA that is set to provide a PPP Program in Alberta. Municipalities that have registered for Phase 1 can choose between two service models for the transition to EPR on April 1, 2025:

• Opt-In Model: The municipality continues to manage its current recycling contract with the PRO reimbursing the municipality for its costs in providing the collection services/depot service as well as promotion and education obligations regarding the transition; or
• Opt-Out Model: The PRO will take over the collection responsibilities for recycling as well as promotion and education obligations.

Lessons Learned from other Jurisdictions

As EPRs have been operating within Canada for a number of years, Alberta municipalities are able to look to other provinces for guidance and practical "lessons learned." Issues that require focus when transitioning to a cost recovery arrangement include: 

• Fees:  Currently, the EPR Regulation and the ARMA bylaws do not provide oversight over the fees paid by PROs to municipalities regarding collection services and post-collection responsibilities. The only guidance is under the Regulation, where it is clear that producers must be fully responsible for residential PPP at no charge to the municipality.

We recommend that proposed cost recovery models be carefully reviewed and assessed before entering into a PRO contract under the Opt-In Model. This assessment should include consideration of the costs of all aspects of service delivery including contract administration, contract oversight, public education and contamination abatement. As well, if a municipality will take responsibility for educating the public during the transition and beyond, it must consider the operational and financial impacts of this role and build in proper cost adjustments to account for the unknown obligations that may be imposed under ARMA bylaws, once passed.

• Levels of Service Controls: The benefit to the Opt-Out Model is that the cost of collection and depot access is passed on to the PRO. The downside is the municipality loses control over levels of service and customer interactions. These issues should be taken into consideration when selecting your new service model under the EPR program. 

Next Steps

With deadlines for Phase 1 fast approaching, many municipalities may be reviewing the proposed service agreements and cost recovery models put forward by PROs. We recommend that municipalities seek legal review of these agreements to ensure the proposed terms reflect a true producer pays system and the interests of municipalities are fully protected. 
 

[1] EPR Regulation, s. 17(1)