LCBO bottle deposit return
A significant change in how Ontarians recycle the non-refillable bottles, beer cans and tetra-paks sold by the Liquor Control Board of Ontario (LCBO) was implemented in early 2007.
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Background
For decades, controversy has swirled around the issue of recycling the non-refillable bottles and beer cans generated by consumers of LCBO products. In the early 1970s, some Ontario environmental groups began to advocate establishment of a fully refillable container, deposit/return system for distributing soft drinks, liquor and other beverages in an attempt to reduce litter, conserve energy, protect the environment and promote local bottling. Ontario’s beer industry has operated a similar system since the 1920s.
Municipal blue box programs
In 1985, the Ontario government decided to pursue another approach that placed less emphasis on re-use and more on recycling: it began to promote municipal Blue Box programs and provided millions of dollars of financial support for these programs between 1986 and 1996. Glass bottles and beer cans generated by consumers of LCBO products were identified as key materials for the fledgling program. In 1994, the Ontario government passed O. Reg. 101/94, Recycling and Composting of Municipal Waste, and made Blue Box programs mandatory in most parts of Ontario.
In our 1996 annual report, the ECO reported that the annual municipal cost of landfilling and recycling LCBO containers was in the range of $10 million, and noted that municipal taxpayers were footing this bill while the LCBO continued to report large profits. The ECO recommended that the Ontario government study the possible use of refillable polyethylene terephthalate (PET) containers for soft drinks and LCBO containers.
Early calls for deposits on LCBO containers
In 1997, Ontario municipalities began to pass resolutions calling for deposits on LCBO containers. In November 1997, the City of Toronto filed an application for review under the EBR requesting deposits on LCBO containers and other changes to MOE policies to promote product stewardship. The application was rejected, but MOE did agree that the LCBO would provide at least $4 million each year to support municipal Blue Box programs. In our 1998 annual report, the ECO noted that seven other provinces have container return systems for wine and spirit containers, with deposit rates ranging from 5 to 40 cents (depending on container size), and we recommended that the Ontario government implement new policies and laws to promote product stewardship, including deposit-refund systems for beverage containers.
In 2005, consistent with recommendations contained in an internal LCBO report, the LCBO began to promote greater use of PET and tetra-pak containers for a range of LCBO products, and encouraged its suppliers to shift to these lightweight packages. By the spring of 2006, a variety of stakeholders had contacted the ECO and begun to raise concerns about the implications of these new packaging options.
2006 ECO Presentation to Standing Committee of the Legislature
In September 2006, the Commissioner was asked to make a presentation to a standing committee of the Ontario Legislature that was reviewing the work of the LCBO. He advised the standing committee that one-third of glass bottles and half of all plastic containers and aluminum cans sold at the LCBO were not recycled properly and were being sent to landfills. Moreover, he pointed out that the future recycling rate for LCBO tetra-paks would likely range between 13 and 25 per cent. The Commissioner also noted that many clear and tinted bottles shatter during the collection process and workers cannot colour-separate the shards. Accordingly, only one-fifth of LCBO bottles collected in Blue Box programs are recycled into new bottles. Indeed, much of the LCBO glass recycled in the past decade has been put to low-end uses, such as road aggregate. The Commissioner went on to suggest that a deposit-refund system would provide a more effective mechanism for recycling LCBO containers, allow better quality control for glass collection, and permit the possible future re-use of some of the glass bottles.
Announcement of LCBO deposit system
Later that month, the Premier announced that Ontario would implement a deposit system for LCBO containers in February 2007. Under the system, Ontario consumers have begun to pay a refundable deposit when they purchase wine and spirits containers larger than 100 ml in glass and PET bottles, tetra-paks, bag-in-a-box containers, and aluminum and steel cans. The empty beer, wine and spirit containers are returned to The Beer Store, a system of 800 stores operated by the Brewers of Ontario, for a full refund. A deposit is not charged on wine made at do-it-yourself facilities.
The MOE states that the new LCBO deposit program is anticipated to help divert about 25,000 to 30,000 additional tonnes of glass from landfill, equivalent to about 80 million bottles. Another aim of the new program is to recycle some of the glass containers into high value products, such as new glass bottles or fiberglass insulation. The new container return program will also free up space in Blue Boxes, giving municipal governments the opportunity to expand recycling programs. Under the Waste Diversion Act, the LCBO was designated as a “steward” when the Blue Box Program Plan was approved in late 2003, with accompanying funding responsibilities.
While the Ontario government expects that the new LCBO system will gradually reduce the quantities of materials collected by municipal Blue Box programs, it also anticipates that there will be a period of transition for consumers, and many LCBO containers will still be handled by municipal Blue Box programs. To address these costs, the LCBO will continue to provide $5 million per year over the next two years (2007-08) to Waste Diversion Ontario (WDO) for distribution to municipalities to offset their costs. After this initial period, the WDO will conduct audits to determine how many residual beverage alcohol containers are making their way into Blue Box programs, and the Ontario government will consult on the most appropriate means to address this issue.
ECO Comment
Although this initiative arguably could have been subject to public consultation on the Registry, MOE advised the ECO in the fall of 2006 that the decision was made by Cabinet, not a ministry. With respect to consultation on the implementation of the decision, the MOE further advised the ECO that the lead ministry on the program is the Ministry of Public Infrastructure Renewal (MPIR) and “that it is not usual government practice to solicit public input on contract negotiations.” MOE went on to note that the Ontario government recognized it “is important that the public understand the contract and associated program” and the contract was published on the MPIR web site in November 2006. For these reasons, the decisions related to implementing this new program were not posted as a regular Registry proposal; instead, MOE elected to post an information notice (#XA06E0011) in December 2006.
The ECO commends the Ontario government for its bold decision to launch a deposit-refund system for LCBO containers. We intend to monitor its implementation and report on its progress in future annual reports.
| This is an article from the 2006/07 Annual Report to the Legislature from the Environmental Commissioner of Ontario. |
Citing This Article:
Environmental Commissioner of Ontario. 2007. "Ontario Gives a Big Boost to Glass Recycling." Reconciling our Priorities, ECO Annual Report, 2006-07. Toronto, ON : Environmental Commissioner of Ontario. 90-92.
