Decision on the Use of OES Residual Funds to Offset RRCEA Program Fees for ITT/AV Producers

From August 10 to September 2, 2022, RPRA consulted on a proposal to transfer an interim amount of OES residual funds to RPRA to offset 2023 RRCEA Program Fees for ITT/AV producers, and sought feedback on how the remaining residual funds could be used to reduce ITT/AV producers fees once OES is formally liquidated.

Based on the feedback received, RPRA will take the following steps:

  1. RPRA will defer the proposed interim transfer of OES residual funds to RPRA.
  2. Once the OES Liquidator has resolved all outstanding financial matters and the full amount of remaining residual funds is known, the full amount of OES residual funds will be transferred to RPRA to reduce RRCEA Program Fees for ITT/AV producers to $0.
  3. Remaining funds will be applied in the same manner to future payment cycles until the residual funds are exhausted.

Visit the consultation page on RPRA’s website to learn more about the consultation process and to read the consultation report summarizing the stakeholder feedback received.

RPRA’s decision is consistent with the approved OES Windup Plan, which requires residual funds remaining in OES after liquidation will be transferred to RPRA to offset RRCEA Registry-related expenses. This provision is based on the Minister’s Direction issued in a letter to RPRA dated July 27, 2019, on the use of the WEEE program surplus and OES residual funds.

The amount of OES residual funds is contingent on the resolution of a Canada Revenue Agency (CRA) matter. If the OES Liquidator’s claim is successful, the refund amount awarded by CRA will be added to the OES reserve fund. Depending on the outcome of the CRA case, the final amount of the residual funds could range from approximately $3M (the current reserve fund amount), minus ongoing operating expenses, to $17M, if OES receives the maximum amount claimed from CRA.