Since 2010, Product Care has been operating LightRecycle, a recycling program for residential-use lamps (CFLs and tubes). BC residents can drop off their burnt-out fluorescent lamps at over 195 LightRecycle drop-off locations (mostly retail locations) for recycling, free of charge. Commercial lamps are currently NOT accepted in this program (until July 1, 2012).

Product Care developed this program in response to the requirements of the BC Recycling Regulation, which limited the scope of regulated products to residential-use fluorescent lamps until July 1, 2012. To be in compliance of the BC Recycling Regulation, the manufacturers, retailers and/or distributors of these products have joined Product Care as members for this program.

Members of the program must report their monthly sales and “remit” the applicable “eco-fees” to Product Care. The fees fully fund the program, including the collection, transportation and recycling of returned lamps, as well as program administration and communication. Program members have the option to include the eco fee in the product price or to show the fee separately at wholesale or retail. In most cases, the fee is often passed down through the supply chain to the final consumer.

Current fee rates for the LightRecycle program:

The LightRecycle program will expand to capture all lamps, ballasts and fixtures sold into the residential, commercial and industrial sectors by July 1, 2012, as per the requirements of the BC Recycling Regulation.

Lamps:
The program will capture all lamp technologies and sizes sold into the residential, commercial and industrial sectors, including:

• Compact Fluorescent Lamps (CFLs)
• Fluorescent tubes
• High Intensity Discharge (HID) and other mercury containing lamps – Includes mercury vapour, metal halide, high pressure sodium, low pressure sodium, UV and germicidal lamps
• Halogen lamps
• Incandescent lamps
• Light Emitting Diodes (LEDs)

Ballasts:
The program will cover ballasts sold integrated into fixtures as well as ballasts sold/disposed of separately, including older ballasts containing PCBs.

Fixtures:
For the purposes of this program, light fixtures are defined as electrical devices with the primary purpose of housing an electrical lamp to illuminate space. The program will include the following common categories of fixtures, regardless of whether they are marketed for residential, industrial or commercial purposes. Prominent examples and subcategories are included for each category.

• Linear Fixtures – troffers, surface/suspended mount, strip lights
• Commercial/Industrial Indoor Non-Linear Fixtures – ceiling mount, track lighting, wall mount, stage lighting
• Decorative and Light Commercial Fixtures – pendant, wall mount, flush, semi-flush, track, canopy, recessed/pot, under-cabinet
• Chandeliers and Ceiling Fans – chandeliers and ceiling fans that contain lights
• Portable Fixtures – desk lamps, table lamps, floor lamps, work lights
• Small Outdoor Fixtures – bollards, wall mount, path and walkway lighting, security lighting
• Large Outdoor Fixtures – highway and street lighting, post lighting, highmast lighting
• Large Flood/Sports Field Lights
• Hand-Held Lights – flashlights, snake lights, night lights, book lights
• Emergency Lighting

The BC Recycling Regulation requires a collection system to be in place as of July 1, 2012 for all quantities and types of lamps, ballasts and fixtures that allows the generators of these products to recycle them free of charge. The program recognizes that different collection systems may be needed depending on the type of use (residential or business), the type of product (lamps and fixtures) and the quantity involved.

Product Care is currently working to develop a collection system for this expanded program. While the details are not yet finalized, the program is likely to offer the following options:

1. Residential-Volume Drop-off System:
The existing LightRecycle program includes over 195 collection sites where consumers can drop off up to 16 residential-use fluorescent lights per visit. The majority of these sites are retail locations. The program will expand this system to include collection sites that accept residential volumes of both lamps (all technologies) and fixtures (flashlights, table lamps etc.). There will be no charge to drop off accepted products. The program will not directly own or manage collection sites but will contract with interested organizations that can provide a collection location.

2. Commercial-Volume Drop-Off System:
After July 1, 2012, the program will employ a system of collection sites for the collection of lamps, ballasts and fixtures in quantities normally generated by commercial generators. There will be no charge to drop off accepted products. The sites will be available to electrical contractors, re-lampers, building managers and any other generator of commercial volumes of these products. The program will not directly own or manage collection sites but will contract with interested organizations that can provide a collection location.

Note: Some collection locations may accept both residential volumes and commercial volumes of program products and this practice will be encouraged where possible, but not all locations are expected to be able to offer this service.

3. Large Volume Direct Service Collection System:
It is expected that some commercial generators of accepted products, including both lamps and fixtures, will generate quantities of these products that are too large for the program’s commercial drop-off locations. In other cases, drop off-sites may not be the most appropriate model for the parties involved. The program is examining a number of different approaches to providing service to this category of generator including direct on-site pickup and/or delivery by the generator directly to a processor contracted by the program.

Collection System Development and Interested Parties:
Product Care is currently working to develop the collection network described above. Prior to July 1, 2012 Product Care will conduct a competitive process to give all interested parties, including existing or potential collection sites, transporters, consolidation points and processors, an opportunity to participate in the program. Key considerations will include the ability to meet the program’s environmental standards and cost competitiveness. Businesses currently collecting lamps, ballasts and/or fixtures are encouraged to contact Product Care at their convenience to ensure we understand your business and have the applicable contact information for future updates.

The program will contract with processors to recycle the products that are returned through the program.

Prior to July 1, 2012 Product Care will conduct a competitive RFP process to give all interested processors an opportunity to become a registered processor with the program. Key considerations will include the ability to meet the program's environmental standards and cost competitiveness. Businesses currently recycling lamps, ballasts and/or fixtures are encouraged to contact Product Care at their convenience to ensure we understand your business and have the applicable contact information for future updates.

The BC Recycling Regulation requires the "producers" of all lamps, ballasts and fixtures sold into the residential, commercial and industrial sectors to be part of an approved stewardship program by July 1, 2012. This program must be fully funded by these producers to provide a free collection and recycling option for all generators of lamps, ballasts and fixtures in BC.

In collaboration with the major manufacturers and retailers of these products, Product Care has submitted a stewardship plan to the BC Ministry of Environment to provide a compliance option for all obligated parties. These parties will be able to fulfill their legal obligations by joining Product Care as a member for this program. Members of the program agree to report, on a monthly basis, their sales of program applicable products to Product Care and remit applicable eco fees on those sales.

For more information on the definition of "producer," the fees that will fund the program and how they will be reported, please refer to the questions below.

The Recycling Regulation defines a "producer" as:
(i) a person who manufactures the product and sells, offers for sale or distributes the product in British Columbia under the manufacturer’s own brand,

(ii) if subparagraph (i) does not apply, a person who is not the manufacturer of the product but is the owner or licensee of a trademark under which a product is sold or distributed in British Columbia, whether or not the trademark is registered, or

(iii) if subparagraphs (i) and (ii) do not apply, a person who imports the product into British Columbia for sale or distribution

The B.C. Ministry of Environment's Recycling Regulation Guide provides the following additional interpretative guidance on how the term "Producer" is applied in practice:

The product producer is principally the first seller of the product in the province. In practice the producer is typically the product manufacturer, distributor or brand-owner. The producer could also be an importer, broker or retailer who sells the product directly to a consumer, including those whose sales are transacted by catalogue or over the Internet.

The BC Recycling Regulation requires the "producers" (see above) of all lamps, ballasts and fixtures sold into the residential, commercial and industrial sectors to be part of an approved stewardship program by July 1, 2012. This program must be fully funded by these producers to provide a free collection and recycling option for all generators of lamps, ballasts and fixtures in BC.

Obligated parties will be able to fulfill their legal obligations by joining Product Care as a member for this program. Members of the program agree to report, on a monthly basis, their sales of program applicable products to Product Care and remit applicable eco fees on those sales.

Sometimes it is more practical for a company that is not the legally obligated producer to join the program and report on their sales (sometimes called a “voluntary remitter”). The program is flexible in terms of which company in the supply chain becomes a member, so long as there is assurance that the program receives the eco fee for every program product sold in BC. The legal producer definition becomes relevant where it is determined that products/fees are not reported to the program and the matter is referred to the Ministry of Environment for compliance with the regulation.

For more information on the fees that will fund the program and how they will be reported, refer to the questions below.

The program will be funded by "eco-fees" applied to the sale of new lamps, ballasts and fixtures in BC after July 1, 2012, including those sold to the commercial sector. These fees will be used by Product Care, a non-profit industry association, to fund the collection, transportation and recycling of end-of-life products to ensure all generators can recycle these products at the end of their life free of charge, as required by the BC Recycling Regulation.

The eco-fee will be subject to sales tax, as it is considered to be a part of the price of regulated products. While the applicable HST will be remitted to the government, no part of the eco fee itself will be remitted to the government.

These fees will be paid by members of the program who have joined Product Care to fulfill their legal obligations under the BC Recycling Regulation. Members have the option of “passing-on” this fee to their customers. The fee may be shown separately on the product invoice/receipt, incorporated directly into the price of the product or absorbed, at the discretion of the program members and their subsequent customers. In comparable programs, the fee is often passed down through the supply chain. The price paid by downstream customers should never exceed the program-mandated fee.

Purchasers of new lamps, ballasts and fixtures may therefore begin seeing eco-fees being charged on products purchased after July 1, 2012. The expected impact of these fees should be considered on bids and contracts that extend past July 1, 2012.

Product Care is currently developing a budget and fee categories for this program and will give as much advance notice of the final fee rates as possible. For information on the fee rates in the current LightRecycle program, see the question "How does the current LightRecycle program work and how is it funded?" above. Note that this program is currently confined to residential-use fluorescent lights only, whereas fees will apply to all lamp types, ballasts and fixtures sold into the residential, commercial and industrial sectors after July 1, 2012.

Obligated "producers" (see "who are the producers...." above) will be able to fulfill their legal obligations by joining Product Care as a member for this program. Members of the program agree to report, on a monthly basis, their sales of program applicable products to Product Care and remit applicable eco fees on those sales (see "how will the program be funded...." above).

Sometimes it is more practical for a company that is not the legally obligated producer to join the program and report on their sales (sometimes called a “voluntary remitter”). The program is flexible in terms of which company in the supply chain becomes a member, so long as there is assurance that the program receives the eco fee for every program product sold in BC. The legal producer definition becomes relevant where it is determined that products/fees are not reported to the program and the matter is referred to the Ministry of Environment for compliance with the regulation.

Examples of situations where this may be practical:

1. The obligated producer (ex: manufacturer) ships to a distributor (who may or may not be in BC) and only the distributor knows the quantity actually sold in BC.  In this example the distributor and producer agree with each other (and notify Product Care in writing):

• The distributor will join the Product Care program and report and remit fees on all sales in BC of the designated products sold by the distributor, regardless of brand
• The producer does not report/pay the program on sales to that distributor, but does report/pay on sales to other BC customers.

2. Company A has no operations in BC but "ships to store" for many BC based retailers or distributors and is aware of the quantity sold by each retailer or distributor. As a service to its retail or distributor customers, Company A agrees to report to Product Care on the aggregate of all BC sales to these customers, and the customers do not. However if the retailer or distributor sells other brands of the designated products, it must report and pay fees on those sales (unless a similar agreement is reached with that company).

For a company to be a voluntary remitter, they should discuss this with suppliers or customers in their supply chain and after they reach an agreement, the company can register with Product Care as a member.

Reporting will be on a monthly basis using an online reporting system. Reports and fee remittances will be due by the end of the month following the reporting period (e.g. sales in July 2012 must be reported and received by the Program before the end of August). Fees payable by members to the program are subject to HST. View more details on eco fee remittance.

Potential Legal Obligations:
Manufacturers of lamps, ballasts and fixtures may be classified as a legally obligated producer, depending on the nature of their supply chain. See the questions above for the definition of a producer and discussion on the obligations of producers and members of the program.

Eco-Fees:
Manufacturers will need to join the program as members to report their BC sales/remit fees to Product Care unless each of their downstream customers in BC have agreed to fulfill this responsibility. See the questions above for details on these fees, how they will affect those in the supply chain, and how they will be reported.

Potential Legal Obligations:
Retailers and distributors may be classified as a legally obligated producer, depending on the nature of their supply chain. See the questions above for the definition of a producer and discussion on the obligations of producers and members of the program.

Eco-Fees:
Retailers and distributors will either:
a.) Be direct members of the program and report on BC sales/remit fees directly to Product Care
OR
b.) Have their suppliers report on sales/remit fees on their behalf. In turn, fees may be “passed-on” to the applicable retailer/distributor and shown on the product invoice. See the questions above for details on these fees, how they will affect those in the supply chain, and how they will be reported.

Collection:
The BC Recycling Regulation requires a collection system to be in place as of July 1, 2012 for all quantities and types of lamps, ballasts and fixtures that allows the generators of these products to recycle them free of charge. Retailers and distributors may choose to act as collection sites for residential and/or commercial volumes of these products on a voluntary basis as a service to their customers. See the question above on how these products will be collected for more information.

Recycling:
If retailers and distributors generate end-of-life lamps, ballasts or fixtures, they will be able to recycle these products through the program’s collection system, free of charge, after July 1, 2012. See the questions above on how these products will be collected and recycled for more information.

Potential Obligations:
Electrical contractors, installers and relampers who directly import lamps, ballasts and/or fixtures into BC after July 1, 2012 may be classified as a legally obligated "producer" under the BC Recycling Regulation. Obligated producers will need to join the program as a member to report sales/remit fees unless each of their suppliers have joined the program to fulfill this responsibility for their customers. It is the program’s intent to recruit members as "high" on the supply chain as possible to simplify the reporting process for all parties involved.

See the questions above for the definition of a producer and discussion on the obligations of producers and members of the program.

Eco-Fees:
The program will be funded by "eco-fees" applied to the sale of new lamps, ballasts and fixtures in BC after July 1, 2012, including those sold to the commercial sector. These fees will be used by Product Care, a non-profit industry association, to fund the collection, transportation and recycling of end-of-life products to ensure all generators can recycle these products at the end of their life free of charge, as required by the BC Recycling Regulation.

These fees will be paid by members of the program (manufacturers, distributors, retailers) who have joined Product Care to fulfill their legal obligations. Members have the option of “passing-on” this fee to their customers.

Purchasers of new lamps, ballasts and fixtures may therefore begin seeing eco-fees being charged on products purchased after July 1, 2012. The expected impact of these fees should be considered on bids and contracts that extend past July 1, 2012.

See the questions above for details on these fees and how they will affect those in the supply chain.

Recycling:
All generators of end-of-life lamps, ballasts and fixtures will be able to recycle these products through the program’s collection system, free of charge, after July 1, 2012. See the questions above on how these products will be collected and recycled for more information.

For more information on this upcoming program, please contact Jordan Best at:
Email: jordan@productcare.org Phone: 604-592-2972 ext. 218