Canadian RPRA consults on Ontario Tire Stewardship’s surplus funds distribution
Consultation open for feedback until February 26, 2021
The Resource Productivity and Recovery Authority (RPRA) – a Canadian organization responsible for waste management regulations including end-of-life tire recycling, is consulting on Ontario Tire Stewardship’s (OTS) plan to return remaining Used Tires Program surplus funds to stewards. The plan was developed by Grant Thornton Limited, the court appointed OTS liquidator, as a Surplus Funds Addendum to the Used Tires Program Wind-Up Plan. The proposed addendum includes:
- which tire classes are eligible to share in the surplus
- a proposed methodology to allocate funds to stewards
- a proposal to address the Minister of the Environment, Conservation and Parks’ direction that the surplus funds returned to stewards be used to benefit consumers
One can review the proposed addendum and provide your feedback between January 29 and February 26, 2021.
The Authority is hosting a webinar on Thursday, February 11, 10:00 to 11:30 a.m. to present the proposed addendum, answer questions and solicit feedback from stakeholders. Sign up for the webinar.
Stakeholders can also submit their feedback via email to email@example.com. All feedback must be received by the Authority on or before Friday, February 26, 2021.
The Authority will consider all comments received during the consultation while reviewing the addendum. Stakeholder feedback will be summarized in a report that will be posted to the Authority’s website following the consultation period.
In February 2017, the then Minister of the Environment and Climate Change directed the wind up of the Used Tires Program on December 31, 2018 and OTS itself soon after. OTS submitted a wind-up plan to the Authority on November 30, 2017. The Authority consulted on the wind-up plan between December 2017 and March 2018 and approved the wind-up plan with conditions in April 2018. The Used Tires Program ended on December 31, 2018 and transitioned to the new individual producer responsibility framework on January 1, 2019. Learn more about the program wind-up.
As part of the wind-up process, on March 16, 2020, the Ontario Superior Court of Justice appointed Grant Thornton Limited liquidator of OTS. As liquidator, Grant Thornton is acting as OTS’ agent and responsible for implementing the remaining provisions of the approved Used Tires Program Wind-Up Plan.
On April 21, 2020, the Minister of the Environment, Conservation and Parks issued a direction letter to OTS requiring surplus funds of the Used Tires Program be returned to stewards. OTS was directed to amend its approved Used Tires Program Wind-Up Plan to address the Minister’s direction on surplus funds and submit it to the Authority for approval. This direction revised the requirements in the direction issued on April 2, 2019 in regard to how the surplus and residual funds from the Used Tires Program must be managed but did not change any other requirements in the previous direction letters issued to OTS.
The OTS liquidator, Grant Thornton, submitted the proposed addendum to the Authority on January 12, 2021. It is the Minister’s expectation that the amendment be approved by the Authority within six weeks of receiving it. To approve the addendum, the Authority’s Board will assess whether it has sufficiently addressed the requirements in the Waste Diversion Transition Act, 2016, the Minister’s direction and the Authority’s Wind-up Guide.
Following fulfillment of the approved wind-up plan, including the Surplus Funds Addendum once approved, the liquidator will take the necessary steps to dissolve OTS as a corporate entity.
Press release by RPRA.