Bulletin

Withdrawal of Continuous Improvement Fund (CIF) Windup Plan Amendment Proposal

On February 7 and 9, 2023, CIF’s governance committees (Transition Services Committee and Windup Committee) resolved to formally withdraw the CIF Windup Plan (WUP) Amendment Proposal.

The resolution and process leading up to this decision is explained below along with next steps for CIF.

~ Governance Committee Resolution ~

That CIF withdraw the WUP Amendment proposal submitted to RPRA in November 2022, and that CIF staff prepare for consideration at the March CIF governance meetings an:

Operations Plan and Budget for the remainder of 2023, and an
Administrative WUP and Budget for 2024 (or at the termination of operations).

Both items are to be based on the currently approved WUP wherein CIF terminates operations effective December 31, 2023, with completion of administrative closure by mid 2024.

Additionally, consideration that:

The Transition Services Committee may consider a one-year extension of the CIF operations timeline, at a later date in 2023, that outlines specific actions and supports required by members.
And, that any consideration of a disbursement in the 2023 CIF Operating Budget provide for a sufficient reserve fund balance that permits continued operations through 2024.

Background

The CIF’s proposed Windup Plan amendment sought to end operations early and transfer approximately $9.64M in surplus funds to the Association of Municipalities of Ontario (AMO) in order to support communities in transitioning their Blue Box programs to Ontario’s new extended producer responsibility regulatory framework. The proposal called for this decision to be made by AMO’s Board of Directors on behalf of individual municipalities that are members of AMO, the City of Toronto, and individual First Nations Communities.

On December 7, 2022, RPRA approved the CIF’s proposal, conditional on the implementation of an opt-out process, which would allow any municipality, recycling association, and First Nations community to choose to receive their share of surplus funds rather than have their funds transferred to AMO upon the wind up of the CIF. RPRA’s decision to require an opt-out provision was based on the feedback received during public consultations and individual municipalities’ and First Nations’ entitlement to their respective share of CIF surplus funds as per the current requirements of the CIF Windup Plan.

AMO's Board of Directors considered the implications of the opt-out requirement and passed a resolution on January 27, 2023, to not proceed with the proposed amendment to the CIF Windup Plan. AMO expressed concern that enabling individual municipalities to opt out of funding their collaborative work would jeopardize sector-wide participation, AMO consensus and effectiveness, as well as likely result in significant free-rider and administrative challenges for AMO that could impact their sector relationships and unity.

As a result of AMO’s decision, the CIF is withdrawing the WUP Amendment Proposal. CIF staff will carry on operations under CIF’s existing Windup Plan approved by RPRA in December 2020 and continue operations until the end of 2023.

More information on the CIF WUP Amendment Proposal process can be found on CIF or RPRA’s websites.

CIF’s Next Steps: Municipal and First Nation Input Requested

To participate in the planning process for CIF’s final chapter, CIF is seeking feedback on what your municipality or First Nation community will need (or anticipates needing) for transition support during the rest of 2023.

Please review the 2023 Draft Work Plan Update and send feedback for consideration to:

Carrie Nash, CIF Managing Director at cnash@thecif.ca or
Jessica Landry, CIF Project Manager at jlandry@thecif.ca.