2023 Blue Box Steward Funding Obligation Finalized
The Resource Productivity and Recovery Authority has set the 2023 Blue Box Steward Funding Obligation at $151.5 million.
The Steward Funding Obligation is the total amount that stewards must pay to participating communities for operating the Blue Box Program. The 2023 Steward Funding Obligation was set using information obtained from the 2021 Datacall, which surveys municipalities, First Nation communities and recycling associations on costs and amounts of materials collected through the Blue Box Program.
The Steward Funding Obligation was determined using the same simplified methodology that was applied in setting the 2022 Steward Obligation.
For the first time, the 2023 Steward Funding Obligation reflects communities exiting the legacy Blue Box Program and transitioning to the new extended producer responsibility framework outlined in the Blue Box Regulation and the Resource Recovery and Circular Economy Act, 2016.
In the calculation of the gross cost, revenue, net cost, and tonnage for the 2021 data year, the inputs for transitioning communities are pro-rated based on the number of days they will be active in the 2023 program year. For example, a municipality exiting on July 1, 2023, will be paid for operating its Blue Box program for 181 days. The pro-rated values are used in the calculation of the total Steward Funding Obligation.
| 2023 Steward Obligation (2021 Data Year) | |
|---|---|
| Total Gross Cost | $365,734,466 |
| 3 Year Average Revenue | $63,329,977 |
| Prior Year Adjustments | $607,147 |
| Total Net Costs | $303,011,636 |
| 50% of Net Costs | $151,505,818 |
| 2023 Steward Obligation | $151,505,818 |
The 2023 Municipal Funding Allocation Model (MFAM) will be posted to the Authority’s website in the coming weeks. The 2023 MFAM will reflect the pro-rated values for communities that are set to transition to the new Blue Box Regulation in 2023.
The InKind Advertising Program allows members of News Media Canada and Ontario Community Newspaper Association to fulfill their Steward Funding Obligation by providing newspaper advertising linage to municipalities and First Nations, as well as a possible partial cash payment if commodity prices reach a certain level. No cash payment is required under the InKind Advertising Program for the 2023 program year.