Fee rates are calculated annually for each designated Blue Box material. An obligation year is a calendar year for which stewards are or were required to register, file a report and pay applicable fees. The first obligation year for this program was 2003.
Steward payments are determined by multiplying the reported quantities of each material by the fee rate for that material.
The Fee Calculation Model (also referred to as Pay In Model (PIM)) illustrated below summarizes the inputs and process for calculating the annual Blue Box fee schedule.
For 2021 fees, Stewardship Ontario adopted the Four-Step Fee Methodology (see below) to
replace the previous Three-Factor Formula. The proposed replacement of the Activity Based
Costing (ABC) Methodology with phased implementation of Material Cost Differentiation was
deferred as part of RPRA’s review and approval of the Blue Box Program Transition Plan.
Further details are available here.
Four-Step Fee Methodology
Fee methodologies are an allocation tool used to determine each material’s share of the total amount stewards must pay to finance recycling programs for packaging and paper product. Each year, material fee rates (expressed in cents per kilogram) are determined by dividing the allocated dollar amount for a material by the number of supplied tonnes of that material.
Here’s how the Four-Step Fee Methodology works:
Step 1 allocates the Gross Cost of the recycling system – the collection and processing activities.
Step 2 allocates the commodity revenue to those materials that have earned the revenue.
Step 3 allocates the program management cost of the stewardship program.
Step 4 will add material specific Promotion & Education and/or Market Development.
Fee Schedules and Calculation Models
2019 (approved December 14, 2018)