Between January 29 and February 26, 2021, the Authority consulted on Ontario Tire Stewardship’s (OTS) plan to return remaining Used Tires Program surplus funds to stewards. The plan was developed by Grant Thornton Limited, the court appointed OTS liquidator, as a Surplus Funds Addendum to the Used Tires Program Wind-Up Plan.
The addendum outlines the amount of surplus funds to be distributed to stewards, a methodology to allocate the funds, and which tire classes are eligible to share in the surplus. The addendum also outlines an approach to address the Minister of the Environment, Conservation and Parks’ direction that the surplus funds returned to stewards be used to benefit consumers.
On February 11, the Authority hosted a webinar to present the proposed addendum, answer questions and solicit feedback from stakeholders. View the presentation slides or webinar recording. The Authority considered all feedback received during the consultation as it assessed the addendum. Read the consultation report.
On March 26, 2021, the Authority approved OTS’ Used Tires Program Wind Up Plan: Surplus Funds Addendum. Read the approval letter.
The interim distribution amount outlined in the approved addendum ($12M) is higher than what was initially proposed ($10M). Following the submission of the addendum in mid-January 2021, OTS received the expected notice of assessment from the CRA. Based on the greater certainty of the amount owed to the CRA, as well as stakeholder feedback received during the consultation process, OTS submitted a revised addendum to the Authority that specified an increase in the interim distribution amount by $2M to a total of $12M.
It is expected that OTS will present the approved addendum to the Ontario Superior Court of Justice for approval, tentatively scheduled for April 21, 2021. Following approval by the Court, OTS will begin distributing the interim amount of surplus funds to stewards.
The Authority is recommending that eligible stewards receiving a share of the surplus document how funds have been used in a manner consistent with the Minister’s expectation to benefit consumers. Stewards with questions about the Minister’s direction on consumer benefits or the implementation of the approved addendum should contact the Authority at email@example.com.
In February 2017, the then Minister of the Environment and Climate Change directed the wind up of the Used Tires Program on December 31, 2018 and OTS itself soon after. OTS submitted a wind-up plan to the Authority on November 30, 2017. The Authority consulted on the wind-up plan between December 2017 and March 2018 and approved the wind-up plan with conditions in April 2018. The Used Tires Program ended on December 31, 2018 and transitioned to the new individual producer responsibility framework on January 1, 2019. Learn more about the program wind-up.
As part of the wind-up process, on March 16, 2020, the Ontario Superior Court of Justice appointed Grant Thornton Limited liquidator of OTS. As liquidator, Grant Thornton is acting as OTS’ agent and responsible for implementing the remaining provisions of the approved Used Tires Program Wind-Up Plan.
On April 21, 2020, the Minister of the Environment, Conservation and Parks issued a direction letter to OTS requiring surplus funds of the Used Tires Program be returned to stewards. OTS was directed to amend its approved Used Tires Program Wind-Up Plan to address the Minister’s direction on surplus funds and submit it to the Authority for approval. This direction revised the requirements in the direction issued on April 2, 2019 in regard to how the surplus and residual funds from the Used Tires Program must be managed but did not change any other requirements in the previous direction letters issued to OTS.
The OTS liquidator, Grant Thornton, submitted the proposed addendum to the Authority on January 12, 2021. It is the Minister’s expectation that the amendment be approved by the Authority within six weeks of receiving it. To approve the addendum, the Authority’s Board will assess whether it has sufficiently addressed the requirements in the Waste Diversion Transition Act, 2016, the Minister’s direction and the Authority’s Wind-up Guide.
Following fulfillment of the approved wind-up plan, including the Surplus Funds Addendum once approved, the liquidator will take the necessary steps to dissolve OTS as a corporate entity.