Notice To Members – March 2018

The CESA quarterly notice provides important program updates and changes for members. If you have any questions or concerns, we invite you to reach out to us directly at any time. We may share your question in future notices, as often times the questions asked by one member are relevant to others. This format presents an opportunity to share learnings and information about the program among all stewards.

Program Product Update

CESA continuously reviews new and existing products to either confirm or exclude their capture under the ElectroRecycle program and ensure a consistent decision-making process is followed.

Product Technology Clarification

Products that fall under a CESA product category which use the Internet of Things (IoT) including wireless, Bluetooth technology, or require an app to function are included in the ElectoRecycle program. This includes products such as “Smart”, Wi-Fi or Bluetooth enabled household appliances and power tools.

CESA Product Guide Available Online

A current list of included and excluded products is always available in the CESA Product Guide. A Summary of Program Product Changes is also available. Members are reminded that they must report and remit fees on new products starting 90 days from receipt of notice about the inclusion of the product in the program.

If your company has questions whether a product is included or not included in the program, please email memberservices@cesarecycling.ca with a product description, link and/or photo, and we will provide clarification. Depending on the nature of the product, a decision may need to be reviewed by CESA’s Producer Relations Committee, which meets on a quarterly basis, resulting in a potential delay. We appreciate your patience as we work to ensure all products are thoroughly reviewed.

2017 Member Survey

CESA strives to continuously improve performance to ensure member satisfaction. In October 2017, CESA conducted a member survey to provide members an opportunity to submit valuable feedback on CESA’s operations and member services, as well as the organization as a whole. A summary of the results are shared below.

What We Heard

Below, we have summarized and addressed several comments which resulted from the member survey.

1. We heard that many members want CESA to focus on minimizing differences across the country. As it pertains to our program, we currently only operate in BC, and as such our influence is limited. However, as provinces look to add more “small appliances” and similar products to the designated materials lists, CESA is advocating for this program to be among those choices offered to stewards. Our members have told us that they want CESA to be an option going forward, outside of BC. If that is feasible, then CESA will look to minimize differences and harmonize our program in all jurisdictions in which we operate.

2. Members want to see a decrease to CESA’s administrative burden. Since product stewardship programs cost manufacturers and retailers both time and money, any way to decrease the cost to meet obligations would be appreciated.

In an effort to work with members on the administrative side, CESA has developed several payment frequencies, to recognize that members have various sales levels and therefore financial commitments to the program. Depending upon sales data, members can now remit monthly, quarterly or annually. While we cannot mandate any member into the most appropriate category for their sales levels, we strongly encourage it. We will send out reminders in advance of quarterly or annual report due dates, so that no member inadvertently becomes delinquent in their reports or remittances.

In addition, we heard that members want different options for payment of their fees.  To that end, CESA has worked hard over the past 12 months to allow for EFT (bill payment online) options at most major financial institutions in Canada, including some specific institutions that are BC-based. If you have difficulty locating CESA as the payee at your preferred banking establishment, please reach out to CESA and we will try and help identify and correct the issues.

3. Members want to understand “missing” products. There continue to be products that are not accepted by the program, no fee is charged, and the product is not accepted at recycling depots, even though the product is almost entirely recyclable. Why can’t CESA change its product list to include these “missing” products?

While CESA has some oversight on product inclusion/exclusion, there are limits based on the definitions held within the regulations themselves. One criteria which was used early on and still applies to our product inclusions, is the idea that products covered by CESA are portable by nature, either intentionally or with ease. The exclusion of products such as installed central vacuum systems is a classic example of a non-portable excluded product, whereas the portable equivalent is in fact included in the program. At the time the regulations were established, the intention was to cover products that were easily moved from one location to another, and not a permanent installation at the place of function.

4. Members want greater transparency and visibility into spending. The annual financial statements, audited by a third party, are available online every year by the end of June. These statements show the current financial health of the organization and the areas where CESA’s predominant spending takes place each year: operations (transportation, collection, and processing of materials), communications (educating the public about what and where they can recycle), and administration (the nuts and bolts of the organization’s internal and external resources).

CESA has worked hard every year to bring the cost to manage the program down and continues to put effort towards reducing costs. However, it’s important to recognize that CESA operates in only one province with a product that has a longer life span than most, meaning we are not afforded the economies of scale that exist for other programs. That said, we continue to work hard to make transparency and fiscal responsibility a priority and commit to communicating our successes more frequently to our members.

We noticed that our membership is not 100% satisfied, so we are working on a continued improvement model to increase the level of satisfaction within key areas identified by our membership. If you have questions or comments not addressed above, please let us know. Our goal is to continue to report out on the progress of these key areas and keep CESA’s membership apprised of the projects that the organization continues to work on that are intended to directly benefit the membership.

2017 Member Compliance Reviews

The 2017 reviews found that the majority of members are in compliance. Member compliance reviews are conducted annually and provide members with an opportunity to sit down one-on-one with a representative of CESA to review products and product categories, environmental handling fees and reporting and remitting options.

Over the past two years CESA’s membership has seen significant improvement in the following areas: 
• Applying the correct EHF of applicable program products
• Reduction in the frequency of late reporting and remitting
• More than 30% of members who participated in a compliance review in 2017 had no issues with regard to product classification, EHFs, reporting and remitting

The type and frequency of errors identified through CESA’s compliance reviews are summarized below.

The most prevalent error identified during the 2017 compliance review process was product misclassification. Common misclassification errors included:
• Coffee grinder classified in Category 3, when it belongs in Category 1
• Yogurt maker classified in Category 1, when it belongs in Category 2
• Soldering iron classified as Category 13, when it belongs in Category 18
• Pneumatic tools classified as Category 13 when pneumatic tools are excluded from the program

Members are reminded to ensure that the correct Environmental Handling Fees (EHFs) are applied to applicable CESA products and that payments (whether monthly, quarterly or annually) are submitted on time.

Our membership policies are always available for review on the ElectroRecycle website. If you have any questions or are unsure of product categorization or applicable fees, please contact us by phone (1-800-670-2372) or by email at memberservices@cesarecycling.ca.

Reporting Frequency and Payment Options

Last year we heard from members who were looking for more convenient ways to submit payment and for some members, fewer times per year. We are pleased to announce that CESA has adapted its reporting schedule and the ways you can now make payments.

Small Remitters
CESA has quarterly and annual remitter options for members who report within a certain threshold each year. Those who remit less than $1,000 per year qualify to report and remit fees on an annual basis, and members who report less than $20,000 per year qualify to report quarterly instead of monthly. Send your requests tomemberservices@cesarecycling.ca or call 1-877-670-CESA (2372). If your company is eligible, we can move you to small remitter status to help reduce your reporting requirements. For more information, review CESA’s Small Remitter Policy.

Bill Payment Option
Members are now able to pay their CESA EHF invoices through a new online bill payment service which is offered through the following banking institutions:
• TD Canada Trust
• Central 1
• BMO
• Scotia Bank
• RBC
• CIBC

If your preferred bank is not listed, please let us know and we will research whether its inclusion is possible.

Change of Address for CESA’s Head Office

CESA is always searching for ways to optimize program efficiencies while reducing costs. This year, with the lease up for renewal at our head office, we sought alternatives and found new accommodations nearby which resulted in a reduction of monthly office costs by almost 15%. We are excited to move at the end of March.

Effective April 1, 2018, CESA’s head office will be located at the following address:

95 Mural Street 6th Floor
Richmond Hill, Ontario
L4B 3G2
905-747-3317

For members who settle invoices via cheque, please note that cheques should be mailed to the following address:

Canadian Electrical Stewardship Association
105 West 3rd Avenue
Vancouver, BC
V5Y 1E6

We are happy to work with you to switch you over to a more convenient, and less expensive payment method.  Please contact us by email atmemberservices@cesarecycling.ca to start the process.

Regulatory Updates

To ensure our members are apprised of regulatory changes, we have included relevant updates with regard to small appliances both in BC as well as other jurisdictions below.

British Columbia

On December 8, 2017, CESA resubmitted a revised BC Product Producer Responsibility Plan to the B.C. Ministry of Environment. The Plan is currently undergoing review by the Ministry. The draft plan is available online and in the interim, the Program continues to operate under the existing approved plans.

Saskatchewan

The government of Saskatchewan expanded the list of consumer electronics that will be accepted for recycling, which now include microwave ovens. Although we think of microwaves as appliances in BC, they will now be accepted through the existing electronics program starting May 1, 2018. If you are responsible for the sale or distribution of microwaves in Saskatchewan, please be sure to register with the Electronic Products Recycling Association (EPRA) program.

Member Contact Information

This is a friendly reminder to ensure that all contact information on your member reporting profile is kept up-to-date. Please email: memberservices@cesarecycling.ca to notify the program of any changes.

CESA Annual General Meeting

CESA will be holding its Annual General Meeting in Toronto on June 21, 2018.  All members will be receiving a member information package and proxy for voting at the beginning of June.  We look forward to membership participation in the process.