Central Huron to implement user-pay system for ICI recycling in 2027
BY SHAWN LOUGHLIN
Central Huron Council, at its June 1 meeting, approved a new user-fee system for industrial, commercial and institutional recycling services to comply with the relatively new Extended Producer Responsibility (EPR) clause in the province’s Blue Box program.
The phased transition of Ontario’s recycling program began on July 1, 2023 and was fully operational on Jan. 1, 2026 with many local municipalities having to navigate the changes. However, in Central Huron, the Bluewater Recycling Association (BRA) delayed the transition to the beginning of 2027, absorbing associated costs for its member municipalities in 2026.
“As per the BRA, ‘recognizing the magnitude of this shift, BRA absorbed the incremental costs associated with segregating and servicing ICI (industrial, commercial and institutional) recycling wheelie bins in 2026. This was done to support a smooth transition, minimize disruption for municipalities and the business community, and allow time to establish appropriate service levels under the new framework,’” Chief Administrative Officer Steve Doherty said in his report to council that night.
Doherty then presented council with three options. The first was to maintain the current service model, which means the municipality would continue to provide ICI recycling services, absorbing the associated costs within its existing funding structure. The second, which Doherty recommended, is to pass through a portion or the full cost of service directly to commercial properties, essentially making ICI recycling a user-pay system. The third option would be to discontinue municipal ICI recycling, which would force businesses and the like to seek a waste management solution from the private sector.
Doherty also noted that if council was to move ahead with the second option, as he had recommended, the municipality would make ICI bin service mandatory for all applicable ICI properties. The changes would officially come into effect on Jan. 1, 2027.
Doherty also took the time to break down the related costs for councillors, so they knew the dollars and cents of the transition before making a decision.
“Prior to the implementation of the EPR, Central Huron was paying around $300,000 per year to cover the cost of the mandatory, municipal-wide curbside recycling service. Since recycling was deemed a legislatively-required service by the province, the costs from the BRA were covered by general taxes,” Doherty said in his report to council. “In 2024, the costs associated with recycling were reduced to $93,689 as cost-recovery transitioned to producers. In 2025, the costs were further reduced to $20,998 as we moved toward the full EPR program.
“However, as per the province, the EPR program is intended to relieve taxpayers of the cost of residential waste, not to manage business-to-business waste streams so ICIs are not covered in the EPR program. Thus, in 2026 the BRA introduced the red-lid bin ICI recycling service with Central Huron anticipating to pay $13,352. The BRA says the real costs in 2026 are closer to $22,100 but they are subsidizing through the transition. However, effective Jan. 1, 2027 they will either be recovering the full costs associated with ICIs or not providing the service depending on the direction of council.”
Doherty noted that the BRA’s red-lid bin for ICI recycling service will be $160 per bin, per year, effective next year. He said that, if council approves the cost-recovery option as recommended, the BRA forecast that it would be providing ICI service to 257 properties in Central Huron at a collection cost of $41,120, which will have to be recovered by Central Huron by way of tax billing.
Council agreed with Doherty and voted to implement the second option, which includes municipal cost-recovery, beginning next year.