Calls for more transparency from Yukon government about its EPR program for recycling

Local businesses are asking for more transparency from the Yukon government about how its new the Extended Producer Responsibility (EPR) program for recycling is being rolled out, and what they should be on the hook for.

The president of the Yukon Chamber of Commerce, Luke Pantin, says businesses are currently receiving premature charges related to the program.

"I think businesses understood that fees would not come into effect until the end of next year, 2025," said Pantin. "We're in a tough time now and we need straight talk from all leaders."

The EPR program came into effect at the beginning of 2024 and is intended to shift the cost of recycling from local governments and taxpayers to producers and manufacturers. The program was introduced as part of the Yukon government's commitments outlined in its Our Clean Future strategy. The EPR laws require businesses to take on the responsibility of recycling materials they produce.

On Monday, the president of Whitehorse-based mining company, ALX Exploration Services, Alan Lebedoff, wrote an open letter to Yukon Environment Minister Nils Clarke asking for more transparent communication moving forward. 

He questioned why Interchange Recycling, a producer responsibility organization (PRO), is charging environmental handling fees to businesses, even though the company has yet to finalize its stewardship plan for the EPR program.

Organizations like Interchange Recycling are working with Yukon businesses to develop and implement plans for recycling materials under EPR laws. These plans are expected to go into effect in 2025.

In an email statement to CBC, the Yukon department of environment said that the fees are not regulated or collected by the government.

"It is a result of business working with business in the private sector and the agreement between Interchange Recycling and their members," read a portion of the statement. "The Government of Yukon has made a strong effort to be open and clear with businesses, industry, other impacted stakeholders and the general public along the way to introducing Extended Producer Responsibility in the Yukon."

Fees are for development of stewardship plan

The CEO of Interchange Recycling, David Lawes, says the company has been charging Yukon businesses planning fees to fund the development of its stewardship plan. The company will be responsible for recycling hazardous products, such as oil and antifreeze, for Yukon businesses when the plan takes effect.

The company sent a draft plan to the Yukon government in September and is now working on a final draft to submit at the end of the year. Once the plan is approved, the company will need to implement the plan within six months or by July 1, 2025. 

Lawes says the planning fees are only being charged to businesses that have entered into a participation agreement with the company. 

"If the business doesn't want to sign the participation agreement, there's no fee to be paid. So it's really up to that business to decide if they want to participate in the program or not," Lawes said.

However, Lawes acknowledged that there are limited options for businesses who need to comply with EPR laws but do not want to sign an agreement with Interchange Recycling. 

"There's other options, I think, within the regulation for individuals to comply," Lawes said. "They tend to be largely inefficient and hard to do, but it is an option."

Once Interchange's stewardship plan is implemented, planning fees will cease and businesses will be charged higher implementation fees. 

"Once that begins the cost will significantly increase because now we're paying for the collection of material, public depots, the transportation to recycling centres and the recycling of that material," Lawes said.

Lack of communication from Yukon government

Pantin says the government needs to clarify EPR policies and address business's and PRO's concerns. He says the fees are not just a matter between businesses. 

"From all appearances, it would seem that the implementation of these fees is not legal right now," Pantin said. "How could it be a matter between business and business, especially since the public is not 100 per cent aware of what EPR is?"

Pantin says he supports the intention of the EPR program, but thinks more needs to be done to clearly communicate to businesses and the public.

He is calling on the government to monitor PRO activities and suggests there should be penalties for implementing early fees. He adds that the fees are creating uncertainty for local businesses and consumers during an already difficult time.

"If these fees are implemented now, this is what you would call a domino effect," Pantin said. "The fees get charged to the producers or the sellers of the goods and they get passed on to the consumer. And people aren't just in a position right now to cope with more expenses."