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Back to Ontario MHSW Transition

27th October 2020

Update: Product Care Ontario MHSW fee reductions

Published by: Kristina Charania

This update covers:

  • Paint fee reduction delayed for 2020-Q4 to allow final reconciliation/reduction in early 2021
  • Pesticide, solvent, fertilizer (PSF) fee reductions continue

To Product Care paint and PSF members in Ontario:

Background: The Minister of the Environment, Conservation and Parks (MECP) directed Stewardship Ontario to transfer paint and PSF surplus funds to Product Care to be applied as fee reductions, effective January 1, 2020.

On July 9, 2020, Product Care received surplus funds in the amount of $16.3M. Based on 2020 revenue projections, Product Care notified members that it anticipated that paint fee reduction funds would be exhausted in 2020 Q4, while PSF fee reduction funds were expected to continue until June 30, 2021, the proposed date for the transition of the MHSW program under the Resource Recovery and Circular Economy Act, 2016 (RRCEA)

Paint/PSF fee reductions update: As of September 30, 2020Product Care has disbursed $12,397,485 to ON paint/PSF members for fee reductions, retroactive to January 1, 2020, as follows:

 Surplus Funds ReceivedFee Reductions appliedSurplus Funds Remaining
Paint and Coatings$14,586,000$11,760,947$2,825,053
Pesticides$250,200$77,505$172,695
Solvents$1,240,400$420,490$819,910
Fertilizers$289,900$138,543$151,357
Total$16,366,500$12,397,485$3,969,015

Delay of ON Paint fee reductions for 2020 Q4, pending reconciliation and final distribution in early 2021: As expected, the amount of paint surplus funds remaining, $2,825,053, will be insufficient to reduce all ON paint EHFs to the end of 2020.  Accordingly, Product Care will suspend paint fee reductions for 2020 Q4, and then conduct a reconciliation in early 2021 after receiving all 2020 ON paint fee reports from monthly, quarterly and annual reporters. The remaining ON paint surplus funds will then be reconciled and applied as final fee reductions based on each member’s share of 2020 ON paint fee EHFs.

Starting with ON paint fee reports for October 2020 sales, ON monthly and quarterly paint members will be required to report and pay the fees and applicable taxes in full, as will annual reporters for the full year 2020. After the 2020 ON paint fee reconciliation is completed in early 2021, the final ON paint fee reductions will be applied. The “ON fee reduction” checkbox in the Product Care reporting portal will be modified to reflect this change in the fee reduction procedure for 2020 Q4 reports.

PSF fee reductions continue: The fee reduction process for pesticides, solvents and fertilizers continues into 2021.

ON Paint Member information meeting: Product Care will hold meeting on November 3, 2020 to answer any questions in regard to the 2020 Q4 fee reduction suspension and the subsequent reconciliation/final ON Paint fee reduction in early 2021. Meeting details will be provided to you in a separate email.

For any questions regarding MHSW fee reductions in Ontario, please email Patrick Chauvet, Director – Ontario Programs, at patrick@productcare.org

Sincerely,

The Product Care Team