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RRFB NOVA SCOTIA ANNUAL REPORT 2009 www.rrfb.com/annualreport2009 Progress through partnerships

Progress Through Partnerships Annual Report

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R R F B N O VA S C O T I A A N N U A L R E P O R T 2 0 0 9

www.rrfb.com/annualreport2009

Progress through partnerships

1 R R F B N O V A S C O T I A 2 0 0 9 A N N U A L R E P O R T

BEVERAGE PROGRAM

• Containers on which deposits were received: 373 million (361 million in 2008)

• Redemptions: 293 million containers (282 million in 2008)

• Recovery rate: 78.5 % (78.1 % in 2008)

PAINT PROGRAM

• Containers sold: 1.98 million (2.12 million in 2008)

• Containers collected: 350,000 units (292,000 in 2008)

• Paint collected: 548,832 litres (458,400 litres in 2008)

• Used paint container recovery rate: 17.7% (13.7% in 2008)

• Non-program materials: 31,143 units (26,936 in 2008)

MUNICIPAL PROGRAMS

• 110,000 tonnes of organic waste diverted through residential, commercial and institutional collection at municipal composting facilities

• 47,200 tonnes of recyclable material diverted through municipal curbside programs

• 100,000 tonnes of construction and demolition waste diverted from disposal at landfills

• Approved funding for the removal of 1,159 derelict vehicles

TIRE PROGRAM

• Tires collected: 1.02 million (1.08 million in 2008)

• Tire recovery rate: 80.5% (88.8% in 2008)

Adding up our successes in 2009

• Nearly $7.0 million (66.8% of net revenues) to Nova Scotia’s 55 municipalities for diversion credits and funding for local recycling, composting and other programs

• $1.5 million to educate Nova Scotians and build ongoing support for environmental action

• Paid $200,000 and approved an additional $247,000 for private sector projects to support environmental entrepreneurs and encourage innovations in waste reduction

RRFB Nova Scotia funding at a glance 2009

In fiscal 2009, RRFB Nova Scotia-funded programs diverted a wide range

of materials from disposal:

2009 HIGHLIGHTSNova Scotians should be proud of their environmental achievements in waste-resource management.

Since 1996, more than 2.97 billion beverage containers, and 2.35 million litres of paint have been recycled, and 10.9 million tires have been recovered.

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Jimmy McAlpine - Vice Chair, Waste Check

PARTNERS IN PROGRESS

Bill Ring, CEO

RRFB Nova Scotia

Creating change is a shared effort. Here in Nova

Scotia, much of our success as a world leader in

waste diversion is rooted in our close working

partnerships with the province’s 55 municipalities.

“ The people of this area have an

ingrained love of their environment,”

says Jimmy McAlpine, Vice Chair

of Waste Check in Region 7. “When

you’ve always made your living from

the sea, the land and the forest, you

respect nature and want to save it.”

With that kind of support, it’s no

surprise Waste Check, made up

of the six municipalities from

southwestern Nova Scotia, leads the

province with the top regional waste

disposal rate. In fact, the regional

waste management authority set an

even more ambitious goal for itself:

reaching the 300 kg/person/year

goal by 2013 – two years ahead of the

provincial target.

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PARTNERS IN PROGRESS (continued)

And the strategy is working. The clear-bag policy implemented in 2007 has already decreased waste going to the landfill by 25 percent and increased recycling by 12 percent. New waste transfer stations have been built, a by-law enforcement officer hired, and a waste management education program for apartment buildings put in place.

Together with Tim Hortons and Scotia Recyclers, Waste Check is piloting the first curbside cup recycling program in the province.

“RRFB has been a huge partner, especially in funding waste diversion programs,” adds Jimmy. “They’re also helping form a vision of where waste reduction should go in the province and taking a leadership role in making that happen.”

For its achievements in 2008, Waste Check (Region 7) received the Mobius Award for Municipality, Region or Authority of the Year. “Waste Check’s board of directors and staff truly believe in the direction the province is going,” says Bill Ring, CEO, RRFB Nova Scotia. “And they put that belief into action by setting bold, ambitious goals – and reaching them.”

“ We’re trying to change generations of behaviour in one generation,” explains Jimmy. “Luckily, we’re blessed with a populace that under-stands and embraces what we’re trying to do. You could say it’s the ultimate partnership.”

“ We’re trying to change generations of behaviour in one generation.” – Jimmy McAlpine - Vice Chair, Waste Check

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PARTNERS IN PROGRESS (continued)

Nova Scotia’s municipalities do more than deliver curbside recycling and composting programs. Much more. Across the province, regional waste management authorities are taking the lead in designing creative solutions to promote waste diversion. As you’ll see in success stories that follow, they’re driving change where it matters most: in the community.

In fiscal 2009, RRFB Nova Scotia directed $7 million – or nearly 67 percent of our net revenues – to these municipalities to support their outstanding work in waste reduction, recycling and composting, derelict

vehicle recovery, household hazardous waste disposal, and education and awareness programs.

Real change begins at home. It’s this principle that defines municipal waste diversion initiatives in Nova Scotia. Whether with new facilities, expanded programs or special events, our municipalities and their local partners work together to create community-based, community-driven solutions.

Here’s just a sampling of the range of work done this past year in municipalities across the province:

Taking action on household hazardous waste

Across Region 2A, municipalities joined forces in a coordinated effort to manage household hazardous waste (HHW). The Municipality of the District of St. Mary’s constructed a permanent HHW facility at the local transfer station. Meanwhile, their counterparts in the District of Guysborough purchased a trailer and retrofitted it as a mobile HHW collection service. When not picking up material from satellite drop-off locations in the area, the trailer is set up at special HHW awareness events in nearby communities.

To shred and protect

During Waste Reduction Week in Region 4, the Halifax Regional Municipality partnered with the Halifax Regional Police for a unique take on recycling. Their “Paper Shred Event” promoted the benefit of shredding personal documents to protect against identity theft, and attracted more than 300 residents.

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PARTNERS IN PROGRESS (continued)

Municipal services extended to First Nations

Thanks to agreements negotiated by Valley Waste (Region 5) with the Annapolis Valley, Glooscap and Bear River First Nations, residents now enjoy the same waste resource collection services currently provided to municipalities in the region.

South Shore expands community bin program

Across Region 6, community halls and not-for-profit organizations benefited from an expanded public bin program. With assistance from the RRFB Municipal Approved Program or MAP, more than 280 three-stream waste separation systems are now in use.

CBRM tackles C&D and wood waste

In Region 1B, Cape Breton Regional Municipality (CBRM) Solid Waste purchased a Doppstadd Shredder, designed to handle construction and demolition (C&D) materials along with wood debris. The new machine reduces the volume of C&D material going to the landfill by 60 to 70 percent, and wood debris by 50 to 60 percent.

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Dan Chassie - President of Halifax C&D recycling

PARTNERS IN INNOVATION

Jeff MacCallum -

Director of Programs and

Business Development,

RRFB Nova Scotia

Every innovation begins with one simple question:

“ What would happen if…?” At RRFB Nova Scotia, we

try to help answer this question by partnering with

individuals, companies, governments and universities

to fund research and development opportunities.

“ I started thinking about this idea

while we were dismantling construc-

tion and demolition materials,” says

Dan Chassie, President of Halifax

C&D Recycling Ltd. “Just like we

separate out glass and metals for

reuse and recycling, I wondered what

would happen if we applied the same

thinking to tear-off asphalt roofing

shingles?”

So he did. And the result?

The first technology in the

world that successfully separates

the paper from the asphalt

grit, allowing 100 percent of

the shingle to be recycled.

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PARTNERS IN INNOVATION (continued)

Nova Scotia firm Ocean Contractors quickly realized the value of this high-quality new product. Since 2006, the company has used more than 3,558 metric tonnes of the recycled shingle aggregate in their private hot-mix asphalt paving jobs.

“If public roads in Nova Scotia were paved with this aggregate, we would potentially reuse all the waste asphalt shingles generated in the province

each year,” explains Jeff MacCallum, RRFB Director of Programs and Business Development. “That’s an estimated diversion of 20,000 to 35,000 tonnes of shingles annually from our landfills.”

“ The next step was clear,” remarks Jeff. “Halifax C&D needed to dem-onstrate that the product could meet provincial specs for public roads that carry high volumes of heavy traffic.”

To do so, RRFB spearheaded a public/private pilot project with funding through its Value-Added Manufacturing program. Ocean Contractors paved a public road near the C&D facility in a Halifax industrial park using the asphalt aggregate, while the Department of Transportation and Infrastructure Renewal partnered with funding and committed to monitor the

results. If satisfied, the government may consider amending its paving specifications to allow the use of recycled asphalt shingle grit.

“ No other process for recycling shingles comes close to matching the quality of our product,” says Dan. “We’ve created the solution for shingles, and I plan to sell this technology to other parts of North America.”

“ No other process for recycling shingles comes close to matching the quality of our product. ”

– Dan Chassie, President of Halifax C&D Recycling Ltd.

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PARTNERS IN INNOVATION (continued)

“ The role RRFB Nova Scotia plays in encouraging and promoting new ideas for waste reuse and remanufactur-ing is significant,” adds Dan. “Thanks to their support over the years, C&D Recycling is today a North American leader in waste diversion.”

Moving from “problem” to “solution” in waste resource management is an ever-increasing challenge. A decade ago, our biggest issue was diverting beverage containers and household organics from the waste stream. Today, we’re trying to recycle more difficult materials, like construction

and demolition waste, household hazardous

wastes and “blue bag” plastics.

Breakthrough thinking takes time, resources and a shared commitment to success. From forging partnerships to funding research and development, RRFB Nova Scotia actively supports individuals, companies and organiza-tions in finding creative solutions to today’s recycling challenges.

Two of the most pressing waste re-source dilemmas facing Nova Scotians today involve plastics and coated woods. Over the past year, RRFB and its partners in government and industry have made progress on both issues.

Putting pressure on plastics

Most of us assume the plastics we so diligently collect and put out in our “blue bags” every week are recy-cled. In fact, less than 14 percent are recovered. The rest of these mixed plastics, mostly packaging materials, go to the landfill.

Two years ago, a multi-stakeholder steering committee made of repre-sentatives from RRFB Nova Scotia, Nova Scotia Environment and the municipalities came together to find a solution to the “blue bag” dilemma. As a first step, they commissioned the Plastics Study, which concluded

that upwards of 80 percent of mixed plastics could be diverted from the waste stream.

Building on the study’s recommen-dations, the steering committee produced a comprehensive “Next Steps” document earlier this year, which was approved by the RRFB Board of Directors. Recent discus-sions with industry have already identified new opportunities for recovering high-value resins from the waste stream – the first step of an ongoing strategy to improve plastics diversion in Nova Scotia.

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PARTNERS IN INNOVATION (continued)

Taking action on coated wood

Decking, painted wood, laminates, flooring, creosote timbers: it’s all coated wood, full of glues, resins, petroleum and other by-products. Not only does it take up space in landfills – upwards of 60,000 tonnes per year – you can’t compost it. In short, coated wood poses a real recycling challenge.

But perhaps not for much longer.

Envirem Technologies Inc., a Maritime-based producer of composts and soils, is looking to develop a process to bio-remediate coated wood waste, which it would use to produce a value-added organic fertilizer. Envirem is joining forces with a local university on a two-year study, which we’re supporting with R&D funding.

The first stage – a controlled, pilot-scale laboratory study - will be followed by an on-site trial at the company’s East River facility. Should the pilot generate solid data and convincing results, the Envirem technology may well be a solution to reducing the volume of construction and demolition (C&D) waste in Nova Scotia landfills.

For RRFB, partnerships like this between a private company and a university offer both academic credibility and technical rigour, so critical when seeking regulatory approval for new processes.

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Licia Wack - Owner, Greenwood ENVIRO-DEPOTTM

PARTNERS IN CHANGE

Jerome Paris

Director of Operations

RRFB Nova Scotia

For Nova Scotians, our network of 83 Enviro-Depots

represents more than a convenience. The facilities

and the people who run them are the public face of

recycling in our communities. Here, it’s real.

When Licia Wack’s customers

tell her the Greenwood ENVIRO-

DEPOT™ reminds them of a daycare

centre, she takes it as a compliment.

“I like to make it easy and pleasant

for the customer to recycle,”

says Licia of her bright, clean

user-friendly facility decorated

with colourful kites, posters,

pamphlets – and even its own

Tin Man, made from recycled cans.

“ We try to solve customers’

problems and challenges

wherever we can – and education

is key,” she adds. “Enviro-Depots

are the frontline educators for

consumers; people come to us for

information and advice – and we

take the time to give it.”

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Licia’s passion for community education defines her approach to business. From sending recycling information packages to newly posted-in military families to taking groups of Cubs and Brownies on tours of her ENVIRO-DEPOT™, Licia knows awareness is the first step to changing habits.

The second step? Making it easy for people to recycle. “Anything I can find a home for, I do,” says Licia. Whether it’s household batteries or wine corks, she accepts and finds markets for products outside the RRFB and ACES lists.

“ Thanks to Licia’s efforts, people recycle more,” says Jerome Paris, RRFB Nova Scotia’s Director of Operations. “She sets a high

standard and believes in the value of partnering, whether with us, the municipalities, the province, the haulers, or other Enviro-Depots.” Not surprisingly, her business was named ENVIRO-DEPOT™ of the Year at the 2008 Mobius Environmental Awards.

“ Licia’s proud of what she does,” adds Jerome. “And we are, too.”

Visit an ENVIRO-DEPOT™ and you’ll see first-hand what waste diversion involves. Talk to someone like Licia Wack and you’ll understand the difference recycling makes to our communities. Take a look at who’s there: your friends and neighbours. That’s why Nova Scotians are North America’s leaders in waste diversion.

PARTNERS IN CHANGE (continued)

“ Thanks to Licia’s efforts, people recycle more.” – Jerome Paris, RRFB Nova Scotia’s Director of Operations

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PARTNERS IN CHANGE (continued)

If Enviro-Depots are our frontline partners in change, the retail sector constitutes the backbone of Nova Scotia’s waste diversion success. It’s thanks to the support and coopera-tion of these tire dealers, paint sellers, beverage companies, the electronics industry and others that Nova Scotians can recycle so many products in the first place.

Together, our retailers, Enviro-Depots, and processing centres have created one of the most impressive waste di-version infrastructures in Canada. Put another way, we’ve made it easier for Nova Scotians to recycle.

And that’s how you create change.

Not only are Nova Scotians the top recyclers in North America, we’re working towards an ambitious goal: reducing waste to 300 kg/person/year by 2015. That requires having the infrastructure in place to handle a wider, and often a more challenging, range of products.

Over the past year, we made signifi-cant progress on two key areas: used tires and used electronics.

For the last number of years, RRFB Nova Scotia and the province have been looking at a long-term solution to dealing with the more than one million

used tires generated annually. In December, the Minister of Environ-ment accepted the recommenda-tion of an inter-departmental and agency committee, of which RRFB was a member. The solution: shred-ding the used tires into small pieces, known as tire-derived aggregate or TDA. This recycled product can be used as lightweight fill in highway construction, on embankments, or for drainage in septic beds and landfills, among other uses.

Better still, instead of shipping these tires to another province for process-ing, this “Made in Nova Scotia” recy-cling solution – environmentally safe and cost-effective – will create new economic opportunities. The call for tenders to select an operator to pro-cess used tires into TDA was issued in 2009.

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PARTNERS IN CHANGE (continued)

In February 2008, the electronics industry launched Atlantic Canada Electronics Stewardship (ACES), the first electronics recycling program east of Saskatchewan. As the program manager for the ACES program, RRFB Nova Scotia has helped collect more than 2,000 tonnes of computers, monitors, printers and televisions, dropped off

at 35 designated centres around the province –exceeding all expectations.

Proving once again that waste diversion is good business, FCM Recycling set up shop in Elmsdale this past year, creating 12 new jobs. Attracted to Nova Scotia because of ACES, this company disassembles e-waste and ships the component parts to processors in Canada and the US.

In February 2009, ACES expanded the list of products it accepts so that Nova Scotians can now recycle an even wider range of products. By adding items like personal audio systems , home audio and video systems, home theatre systems and car stereos to the program, Nova Scotia boasts the most comprehensive e-waste program in Canada.

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PARTNERS IN BUILDING AWARENESS

Katie Shipp - Provincial Winner of the Nova Scotia Recycles Contest Grade 12 Essay

Alanna McPhee

Manager, Education

RRFB Nova Scotia

Raising awareness is the first step to taking action.

By helping Nova Scotians appreciate the “why’s”

and understand the “how’s” of responsible waste

management, RRFB and its partners encourage

change through education.

Katie Shipp’s commitment to the

environment started early. “When

I was four or five, my friends and

I would pick up litter in the woods,”

she remembers. “It was a game

for us.”

What may have started as a game,

though, is today away of life.

For Katie, this year’s top winner of the

RRFB Nova Scotia Recycles Contest essay, protecting the environment

is a shared responsibility. “It’s not

just a matter for the companies, the

communities or individuals,” she

explains. “Everyone, at every level,

has a role to play.”

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PARTNERS IN BUILDING AWARENESS (continued)

“ She clearly understands how the everyday actions, taken by each of us, can make a difference to the environment.”– Alanna McPhee, Manager, Education RRFB Nova Scotia

Thanks to her $5,000 scholarship prize, the Grade 12 student at J.L. Ilsley High School in Halifax will be heading to Mount Allison University this fall to study science. “Winning this contest means everything to me,” says Katie. “Thanks to this award, I can attend the one school I really wanted.”

Her essay, which looked at policy options for dealing with non-recycled plastics, reflected this belief. “You can’t make a difference by yourself,” explains Katie. “It’s really important for people to work together at all levels to create change.”

The annual Nova Scotia Recycles Contest, RRFB’s signature educational program, gives students an opportu-nity to reflect on reducing, reusing,

recycling and composting issues. More than $55,000 in cash and prizes is awarded to schools and students across the province.

“ This year’s essay theme, youth leadership, was well received by teachers and students alike,” says Alanna McPhee, RRFB Nova Scotia’s Manager, Education. “In fact, we saw a 32 per cent increase in participa-tion, making this our best year ever.”

“ Katie put a lot of thought into her essay and it showed,” adds Alanna. “She clearly understands how the everyday actions, taken by each of us, can make a difference to the environment.”

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PARTNERS IN BUILDING AWARENESS (continued)

Just like a good educator takes advantage of “teaching moments,” RRFB and its partners look for strategic opportunities to reinforce the message of responsible waste management. Whether in the classroom or the workplace, at home or in the community, there’s always an opportunity to encourage sound environmental stewardship.

This past year, RRFB directed $1.5 million towards waste reduction education in Nova Scotia and building ongoing support for environmental action.

As Nova Scotians increasingly embrace and promote sound waste diversion practices, the focus of our educational efforts is evolving, too. From taking a more strategic approach to program delivery to partnering on innovative projects, RRFB is working to reach new audiences in new ways. Here are some of the highlights from the past year:

Going green at the community hall

Designed to support community-led environmental awareness events and projects, RRFB’s Community Sponsorship Fund is enjoying an

upsurge in interest. In particular, we’re seeing more requests by church groups and associations to help “green” community kitchens.

By supporting the purchase of reus-able dishes, utensils and sorting containers, RRFB helps community groups – and those who rent their facilities – cut down on the use of disposables. Better still, it sends the message that good environmental stewardship is what you do, everywhere.

Helping tourists sort their stuff

For the first time, we targeted tourists with a bilingual publication designed to encourage waste separation, even while on vacation. That’s not as easy as it sounds, because each municipality controls its own waste separation list – and not every list is the same.

With the support and commitment of our municipal friends, RRFB developed the first province-wide sorting list. While not as detailed as the individual municipal versions, it provides visitors with the information they need for easy, accurate sorting.

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PARTNERS IN BUILDING AWARENESS (continued)

Through our provincial and federal partners, more than 7,000 copies of Sorting It Right were distributed at all Visitor Information Centres and Small Harbour Authorities around the province. The Tourism Industry Association of Nova Scotia (TIANS) also sent copies to all its members.

The result? Sorting It Right proved so popular, we had to reprint it.

Stopping litter at the source

Anti-litter campaigns often focus on waste clean-up and “after the fact” solutions, rather than addressing the root of the problem.

So when Nova Scotia Environment proposed a public awareness initiative aimed at prevention, we agreed to help them develop it. The attention-grabbing campaign, entitled The Best Thing You’ll Never Do, featured radio and print ads, a website and other information materials. Major retailers including Tim Hortons, Wilson’s Fuel and the Nova Scotia Automobile Dealers Association partnered on the initiative.

As of June 2009, more than 2,200 individuals had taken the online pledge to “never, ever litter.”

Taking a strategic approach to education

Two years ago, RRFB revamped its approach to municipal waste man-agement education. Our objective: to bring a more strategic and targeted approach to our programming.

Under the new Regional Education Contracts, RRFB and the munici-palities identified three key areas of focus: school greening, multi-tenant dwellings and restaurants. Because there’s still so much progress to be made in these areas, the munici-palities decided to keep these same priorities for a second year.

Within this strategic framework, RRFB works with the Regional Education Coordinators to develop products like school greening guides and information packages for landlords and tenants on waste management responsibilities. More importantly, this new approach strengthens the partnership between us so that we can make progress on the issues that really matter.

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RRFB Nova Scotia Board of Directors

RAY COTE Ray Cote is Professor Emeritus in Resource and Environmental Studies and Senior Fellow of the Eco-Efficiency Centre at Dalhousie University. He is also chair of the Nova Scotia Round Table on Environment and Sustainable Prosperity and a member of the National Advisory Council on Energy Efficiency.

Prior to his retirement in 2008 from full-time teaching and research, Ray was Professor of Environmental Studies, Chair of the Eco-Efficiency Centre and held the R. A. Jodrey Chair in Management.

Ray Cote

RICHIE COTTON Richie Cotton was Warden of Richmond County for seven years and served as a Councillor of the Municipality of Richmond County for 15 years. He was President of the Union of Nova Scotia Municipalities from 2005 - 2006, and Chair of the Regional Solid Waste Chairs from 1998 – 2008.

The Regional Chairs appointed Richie to the RRFB from 2003 – 2008, and he remains a Director. Richie is retired from Stora Forest Industries.

Richie Cotton

RICHARD DAUPHINEE Richard Dauphinee is Warden of the Municipality of the District of West Hants. He was first elected as a Councillor in 1987, and during that term served as Deputy Warden. Richard has been a member of the Region 6 Solid Waste Management Committee since its inception, and is currently Chair of the Regional Chairs.

In his capacity as a member of the RRFB Board, Richard serves on the Strategy Renewal Advisory Committee.

Richard Dauphinee

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RRFB Nova Scotia Board of Directors (continued)

TIM DIETRICH Tim Dietrich is the Director of Retail Operations for the Atlantic Provinces with Home Hardware Stores Limited. He served on the Nova Scotia Paint Industry Committee to support the design and implementation of the province’s paint recycling program, and is also a member of Recycle NB’s newly launched Paint Recycling Program Committee.

During Tim’s two terms with RRFB Nova Scotia, he has served on the Handling Fee Committee and was a member of the NovaPet Board of Directors.

Tim Dietrich

CHARLES EASTMAN Charles Eastman is Manager, Building Services and Procurement for Sobeys Atlantic. In his 15 years with the company, Charles has been instrumental in leading the design and implementation of a waste management system to support Sobeys’s retail operations throughout the region.

In addition to his responsibilities on the RRFB Board, Charles is a member of the Nova Scotia Environment Waste Resource Management Strategy Renewal Advisory Committee and Chair of the Caribou Watershed Committee.

Charles Eastman

GARY JOHNSON Gary Johnson’s experience in the packaging industry spans 34 years. He joined Maritime Paper Products Limited in 1991 and was named President in 1998. The Dartmouth-based company, with manufacturing facilities across the region, produces corrugated packaging for markets in Eastern and Atlantic Canada, the northeast US and various offshore markets.

In addition to his RRFB responsibilities, Gary serves the boards Crown Fibre Tube Inc., Just Us! Coffee Roasters Co-op, Paper Packaging Canada and Mermaid Theatre Company.

Gary Johnson

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RRFB Nova Scotia Board of Directors (continued)

BILL KARSTEN First elected in 2004, Bill Karsten represents the residents of District 7, Portland – East Woodlawn on the Halifax Regional Municipality council. A full-time Councillor, Bill serves on several HRM boards and committees.

An active community volunteer, Bill was active in the Canadian Cancer Society, and served as Vice President of Child Find Nova Scotia and on the Board of Directors, Child Find Canada. He worked in sales, marketing and management for 30 years, and was most recently District Manager (Atlantic Canada) for Curtis Industries of Canada Ltd.

Bill Karsten

SUSAN LETSON Susan Letson brings more than 20 years’ experience in executive recruitment and selection in Atlantic Canada, having held senior positions with KPMG and The Caldwell Partners International. She is currently an Associate with Rosson Johnson and Gordon.

Susan has chaired the boards of YWCA and Symphony Nova Scotia, and served as vice- chair with the United Way of Halifax Region. She currently chairs the board of Debut Atlantic and is a first-term member of the RRFB Board.

Susan Letson

BRIAN MILLER Brian Miller is President of Fleet Retreading and Miller Tire Services Ltd. Miller Tire was recently named one of Nova Scotia’s Top Employers and was a regional finalist in Canada’s Best Managed Company Awards. Fleet Retreading, established in 1989, returns more than 35,000 used truck tires each year to serviceable condition, and also recycles waste rubber.

A graduate of Saint Mary’s University, Brian is past president and a current director of the Atlantic Tire Dealers Association.

Brian Miller

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RRFB Nova Scotia Board of Directors (continued)

CHRISTINE PENNEY Christine is the Manager, Waste Resource Management Branch, Nova Scotia Environment. Since joining the provincial government in 1993, Christine has managed several portfolios, including those responsible for the delivery of the onsite sewage, contaminated sites and public drinking water programs.

In 2008, Christine received the Minister’s Award and the Malcolm Sparrow Award for Excellence in Regulatory Practice, and was honoured by the Waste Water Nova Scotia Association as a “Friend of Industry.”

Christine Penney

RICK RAMSAY, Chair Rick Ramsay is President of Richard G. Ramsay Management Consultants Inc., a firm specializing in financial, human resources, governance and organizational restructuring and sustainability support for municipalities and non-governmental organizations.

For 22 years, Richard served as Chief Administrative Officer for the Municipality of the County of Kings. He holds a Master of Public Administration from the University of Western Ontario and is a member of the East Hants Chamber of Commerce.

Rick Ramsay

R R F B N O V A S C O T I A 2 0 0 9 A N N U A L R E P O R T4 2 R R F B N O V A S C O T I A 2 0 0 9 A N N U A L R E P O R T 4 3 R R F B N O V A S C O T I A 2 0 0 9 A N N U A L R E P O R T

Operations management. Public

policy development. R&D support.

Awareness education. When you

consider the depth and range of the

work done every day at RRFB Nova

Scotia, it’s clear our business goes

beyond waste resource management.

In fact, you could say RRFB Nova Scotia is in the business of partnerships.

In our sector, we find ourselves dealing with increasingly complex waste materials. Designing innovative and workable long-term solutions is now a shared process and their imple-mentation a collective responsibility.

Today, partnerships are fundamental not only to the way we do business, but to progress itself in our sector. In many ways, RRFB’s achievements this past year belong as much to our colleagues in government, academe, industry, the retail sector, education and our own ENVIRO-DEPOTTM network as they do to us.

Take, for example, the sensitive issue of used tire disposal. Thanks to a year of hard work by an inter-departmental and agency committee, of which RRFB was an active member, the Minister of Environment approved

our recommendation for a safe, cost-effective method of re-using these tires. Shredding used tires into small pieces, known as tire-derived aggregate (TDA), yields a lightweight product especially effective as engi-neering fill in highway construction.

Not only will using TDA eventually take care of the one million used tires generated every year, it represents a new business opportunity for the province. RRFB is currently reviewing proposals for the operation of the TDA processor in Nova Scotia and will base its decision on the most viable business model.

The Atlantic Canada Electronics Stewardship (ACES) Program, launched in early 2008, again demonstrates the power of partnership. In this case, RRFB acts as the provincial program manager for this industry-led initiative in electronic waste recycling. I’m pleased to report that in our inaugural year, we exceeded our target of 2000 tonnes of e-waste collected.

On February 1, 2009, we launched Phase 2 of the program - the first jurisdiction in North America to do so - by adding 40 new categories of e-products accepted for recycling. Today, Nova Scotia boasts the most

During this past year, we welcomed two new Board members: Christine Penney, representing Nova Scotia Department of Environment, and Richard Dauphinee as representative for our Regional Chairs. I want to recognize and thank Richie Cotton who so ably represented the Regional Chairs for the past six years, and who’ll continue to serve as a board member.

On behalf of RRFB Nova Scotia, its board and employees, I am honoured to present our thirteenth annual report, for the fiscal year ended March 31, 2009.

W. D. (Bill) Ring, Chief Executive Officer

comprehensive e-waste recycling program in Canada, and I want to recognize our municipal and regional partners for their help in raising public awareness and support for ACES in their communities.

Successes aside, no one can look back on the year without acknowledging the impact of the economic downturn. Despite the weakened commodity markets, RRFB ended up on budget, thanks to strong first and second quarter performance. Because the slower economy affected our net revenue, our municipal partners faced unex-pected challenges. As a result, RRFB is working with the municipalities to find ways to help them through this challenging period.

Earlier this year, RRFB commis-sioned a public opinion survey, and here’s what we discovered: More than 90% of Nova Scotians recycle. Fully 80% use our ENVIRO-DEPOTTM system. By anyone’s reckoning, that makes the people of Nova Scotia our most important and essential partners. Thanks to their support and commitment, our province continues to set the standard for recycling in North America – and every Nova Scotian should be proud.

Message from the Chief Executive Officer

R R F B N O V A S C O T I A 2 0 0 9 A N N U A L R E P O R T4 4 R R F B N O V A S C O T I A 2 0 0 9 A N N U A L R E P O R T 4 5 R R F B N O V A S C O T I A 2 0 0 9 A N N U A L R E P O R T

combined statement of operations Year ended March 31, 2009

Budget 2009 2009 2008 $ $ $

revenuesDeposits 36,678,900 36,996,835 35,709,131 Sales of recyclable materials 5,082,100 5,036,817 4,759,928 Tire program 3,678,000 3,436,240 3,309,157 Stewardship 1,008,700 933,837 1,048,585 Rental income 201,600 186,900 201,600 Investment and other income 1,135,000 914,439 1,147,388

Total revenues 47,784,300 47,505,068 46,175,789

expensesOperating 33,237,800 35,279,498 31,850,026 Administrative 1,837,700 1,807,948 1,668,690 Other expenditures and allocations

Approved program grants 2,115,200 497,948 805,737 Education and awareness 2,065,000 1,550,841 1,501,831 Regional committees 306,000 303,929 303,325 Derelict vehicle program – 21,346 – Household hazardous waste program 112,000 112,000 112,000 Municipal Solid Waste Diversion 6,310,300 5,235,000 6,455,000 Nova Scotia Environment 1,262,100 1,047,000 1,121,575 Research, development and special projects 250,000 156,253 – Future program development 200,000 – –

47,696,100 46,011,763 43,818,184

Excess of revenues over expenditures 88,200 1,493,305 2,357,605

See accompanying notes to the combined financial statements

au d i t o r s ’ r e p o r t

To the Board of Directors of theResource Recovery Fund Board Inc. and Resource Recovery Fund

We have audited the combined statement of financial position of the Resource Recovery Fund Board Inc. and Resource Recovery Fund as at March 31, 2009 and the combined statement of operations, changes in net resources and cash flows for the year then ended. These combined financial statements are the responsibility of the Organization’s management. Our responsibility is to express an opinion on these combined financial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the combined financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the combined financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these combined financial statements present fairly, in all material respects, the combined financial position of the Resource Recovery Fund Board Inc. and Resource Recovery Fund as at March 31, 2009 and the combined results of its operations, changes in net resources and cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Truro, Nova Scotia May 18, 2009 Chartered Accountants

FINANCIAL STATEMENTS

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combined statement of changes in net resources 2009 2008

Year ended March 31 Resource Recovery Fund

Restricted Restricted Invested in for Future for Approved Net Capital Assets Projects Programs Revenues Total Total $ $ $ $ $ $

Balance, beginning of year As previously reported 1,713,987 2,371,594 11,910,258 – 15,995,839 13,446,334 Adjustment of prior years (Note 7) – – (8,441,400) – (8,441,400) (8,249,500) 1,713,987 2,371,594 3,468,858 – 7,554,439 5,196,834

Excess (deficiency) of revenue over expenses (268,105) – – 1,761,410 1,493,305 2,357,605

Investment in capital assets 215,172 – – (215,172) – – 1,661,054 2,371,594 3,468,858 1,546,238 9,047,744 7,554,439

Internal transfers from (to): Municipal solid waste diversion – – 5,235,555 (5,235,555) – – Payment of approved programs – – (675,547) 675,547 – – Education and awareness program – – (1,550,841) 1,550,841 – – Regional committees – – (303,929) 303,929 – – Nova Scotia Environment – – (1,047,000) 1,047,000 – – Household hazardous waste program – – (112,000) 112,000 – –

Balance, end of year 1,661,054 2,371,594 5,015,096 – 9,047,744 7,554,439

Restricted for approved programs represented by: Committed Funds (Note 8 (b)) 1,226,147 Uncommitted Funds 3,788,949

5,015,096

See accompanying notes to the combined financial statements

f i na n c i a l s tat e m e n ts

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combined statement of financial position March 31

2009 2008 $ $

financial assetsCash and cash equivalents 6,364,659 14,029,491 Receivables 3,592,064 3,888,953 Accrued receivables 1,052,487 838,378 Notes receivable (Note 3) 463,519 1,113,913 Investments, at cost which approximates fair market value 16,490,792 7,153,250 27,963,521 27,023,985

financial liabilities Payables and accruals 2,299,573 2,100,175 Municipal solid waste diversion credits payable 5,184,035 6,455,000 Unearned revenue 13,319,750 12,922,800

20,803,358 21,477,975

net financial resources 7,160,163 5,546,010

non-financial assets Inventory 142,436 192,410 Prepaids 84,091 102,031 Property and equipment (Note 4) 1,661,054 1,713,987

1,887,581 2,008,428

net resources (Note 8 and Page 3) 9,047,744 7,554,439

Commitment (Note 5)

On Behalf of the Board

_________________________________________________ Director _______________________________________________ Director

See accompanying notes to the combined financial statements

combined statement of cash flows Year ended March 31

2009 2008 $ $

Increase (decrease) in cash and cash equivalents:

operatingExcess of revenues over expenditures 1,493,305 2,357,605 Depreciation and amortization 283,147 320,759 Gain on sale of property and equipment (15,042) (10,272)

1,761,410 2,668,092

Change in non-cash operating working capital Receivables 82,780 (715,583) Inventory 49,974 (140) Prepaids 17,941 (4,357) Payables and accruals (1,071,567) 469,552 Unearned revenue 396,950 295,100

1,237,488 2,712,664

investing Proceeds from sale of:

Property and equipment 25,300 11,000 Investments 2,200,000 2,200,000

Purchase of: Property and equipment (240,472) (260,851) Investments (11,537,542) (1,301,867)

Issue of note receivable (20,000) (1,018,833) Repayment of notes receivable, net 670,394 25,532

(8,902,320) (345,019)

Net (decrease) increase in cash and cash equivalents (7,664,832) 2,367,645

Cash and cash equivalents, beginning of year 14,029,491 11,661,846

Cash and cash equivalents, end of year 6,364,659 14,029,491

See accompanying notes to the combined financial statements

f i na n c i a l s tat e m e n ts

R R F B N O V A S C O T I A 2 0 0 9 A N N U A L R E P O R T5 0 R R F B N O V A S C O T I A 2 0 0 9 A N N U A L R E P O R T 5 1 R R F B N O V A S C O T I A 2 0 0 9 A N N U A L R E P O R T

1. nature of operations

The Resource Recovery Fund Board Inc. is a not-for-profit Organization established by the Nova Scotia government to develop and administer industry stewardship programs that increase waste diversion, enable the establishment of new industries based on the processing of materials diverted from the waste stream, and provide incentives to the people of Nova Scotia to reduce, reuse, recycle and compost.

Under regulation, all revenues earned are deposited to the Resource Recovery Fund, which is the property of the Province of Nova Scotia. All expenditures incurred by the Resource Recovery Fund Board Inc. to operate, administer and fulfil the mandates of the Province of Nova Scotia Solid Waste Management Strategy are expenditures of the Resource Recovery Fund. Accordingly all assets, liabilities and net resources reported in these financial statements are the property of the Resource Recovery Fund and are held on behalf of the Province of Nova Scotia by the Resource Recovery Fund Board Inc.

2. summary of significant accounting policies

Basis of presentation

The combined financial statements include the accounts of the Resource Recovery Fund Board Inc. and the Resource Recovery Fund. Significant inter-entity loans and transactions have been eliminated in these combined financial statements. These combined financial statements are the representations of management prepared in accordance with generally accepted accounting principles for provincial governments as established by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants.

Use of estimates

The preparation of financial statements in conformity with Canadian generally accepted accounting principals requires the Organization’s management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenue and expenditures during the year. Certain of these estimates require subjective or complex judgements by management that may be uncertain. Some of these items include allowance for doubtful accounts, depreciation and unearned revenue. Actual results could differ from those reported.

2. summary of significant accounting policies (continued)

Revenue recognition

Resource Recovery Fund follows the deferral method of accounting for revenue. Revenue is recognized when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

Depreciation

Rates and bases of depreciation applied to write-off the cost of property and equipment over their estimated lives are as follows:

Building 5%, straight line Field equipment 20%, straight line Leasehold improvements 14.2%, straight line Office and warehouse equipment 20%, straight line Computer hardware and software 20%, 33 N%, straight-line Containers

– Bags 33 N%, straight-line – Tubs 10%, straight-line

Vehicles 33 N%, straight-line

Inventory

Inventory is valued at the lower of cost and net realizable value.

Unearned revenue

Unearned revenue represents deposits received for beverage containers that have not been returned for redemption, and fees received for paint and tires which will be returned for disposal at a future date. Unearned revenue beverage is calculated on deposits received in the last sixty (60) days adjusted by the current year return rate, unearned revenue paint is calculated on fees received in the last one hundred and eighty (180) days adjusted by the current year return rate, and unearned revenue tire is calculated on fees received in the last three (3) years adjusted by the past six (6) years average return rate.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, balances with banks and short term investments with maturity dates of 90 days or less. Bank borrowings are considered to be financing activities.

n ot e s to t h e c o m b i n e d f i na n c i a l s tat e m e n ts March 31, 2009

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2. summary of significant accounting policies (continued)

Financial instruments

Financial instruments include cash and cash equivalents, receivables, accrued receivables, notes receivable, investments, payables and accruals, municipal solid waste diversion credits payable and unearned revenue. Unless otherwise noted, it is management’s opinion that the Organization is not exposed to significant interest, or currency risks arising from financial instruments. Unless otherwise noted, the fair market value of these financial instruments are at least equal to their carrying values.

Income taxes

The Organization is exempt from income taxes under Section 149(I)(d) of the Canadian Income Tax Act.

3. notes receivable

2009 2008 $ $Non-interest bearing notes receivable due in equal monthly instalments of $1,535, maturing in 2010 and 2012. 59,025 74,376

Non-interest bearing notes receivable due in equal monthly instalments of $1,860, beginning April 2011, maturing in 2016. 96,720 96,720

Non-interest bearing notes with variable payments, maturing in 2011 and 2028. 85,861 69,700

Note receivable bearing interest at RBC prime rate, due in equal monthly instalments of $8,881, maturing in 2011. 221,913 312,868

Note receivable repaid during the year. – 560,249

463,519 1,113,913

4. property and equipment

2009 2008 $ $ $ $ Accumulated Net Net Cost Depreciation Book Value Book Value Land 282,000 – 282,000 282,000 Field equipment 380,716 297,244 83,472 138,720 Building 1,034,930 240,709 794,221 845,969 Office and warehouse equipment 128,871 114,701 14,170 13,009 Containers 1,529,617 1,204,245 325,372 343,219 Leasehold improvements 18,348 15,849 2,499 303 Computer hardware and software 718,058 572,463 145,595 77,487 Vehicles 47,571 33,846 13,725 13,280

4,140,111 2,479,057 1,661,054 1,713,987

5. commitment

The Resource Recovery Fund has entered into agreements with specific Organizations and businesses to provide funding for various recycling programs across Nova Scotia. At March 31, 2009, $1,226,147 (2008 – $1,610,170) of the restricted for approved programs resources has been committed under these agreements.

n ot e s to t h e c o m b i n e d f i na n c i a l s tat e m e n ts March 31, 2009

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6. related party transaction

The Fund reimburses the Nova Scotia Environment for services and expenses incurred on the Fund’s behalf. During the year, costs of $1,047,000 (2008 – $1,121,575) were incurred, of which $1,047,000 (2008 – $721,575) is included in payables and accruals.

7. restatement of prior years

During a review of accounting policies, it was noted that while provision was being made to record unearned revenue for beverage containers and paint, none had been made for tire revenues received but as yet unearned.

As a result of this correction, 2008 opening unearned revenue increased and opening net resources decreased by $8,249,500. Tire program revenues and excess of revenues over expenditures were reduced by $191,900 for the year ended March 31, 2008.

8. restrictions on net resources

Net resources under the Resource Recovery Fund have been internally restricted for the following purposes:

(a) Restricted for future projects – represents the amount internally restricted for funding various future projects as approved by the Board and in accordance with the goals and objectives of the Resource Recovery Fund.

(b) Restricted for approved programs – represents the amount internally restricted for various recycling programs and initiatives in accordance with the goals and objectives of the Resource Recovery Fund. Of the amount internally restricted, $1,226,147 (2008 – $1,610,170) has been committed by the Board to assist in the funding of various recycling programs across Nova Scotia.

n ot e s to t h e c o m b i n e d f i na n c i a l s tat e m e n ts

RRFB Nova Scotia Revenue Total Operational & Program Expenditures

Program Expenditures$ 9,501,781

Operating Costs$ 35,279,498

$ 2,723,789

Program Expenditures Detail

Municipal Funding$ 6,961,476

Restricted for Future Funding$ 1,493,305

Province of Nova Scotia Funding$ 1,047,000

Deposit Fees $ 36,996,835 (78%)

Tire Program $ 3,436,240 (7%)

Stewardship $ 933,837 (2%)

Sales of Recyclable Material $ 5,036,817 (11%)

Rental & Investment Income $ 1,101,339 (2%)

RRFB Nova ScotiaAdmin. and Mandates

R R F B N O V A S C O T I A 2 0 0 9 A N N U A L R E P O R T5 6

RRFB Nova Scotia Revenue Total Operational & Program Expenditures

Program Expenditures$ 9,501,781

Operating Costs$ 35,279,498

$ 2,723,789

Program Expenditures Detail

Municipal Funding$ 6,961,476

Restricted for Future Funding$ 1,493,305

Province of Nova Scotia Funding$ 1,047,000

Deposit Fees $ 36,996,835 (78%)

Tire Program $ 3,436,240 (7%)

Stewardship $ 933,837 (2%)

Sales of Recyclable Material $ 5,036,817 (11%)

Rental & Investment Income $ 1,101,339 (2%)

RRFB Nova ScotiaAdmin. and Mandates

RRFB Nova Scotia Revenue Total Operational & Program Expenditures

Program Expenditures$ 9,501,781

Operating Costs$ 35,279,498

$ 2,723,789

Program Expenditures Detail

Municipal Funding$ 6,961,476

Restricted for Future Funding$ 1,493,305

Province of Nova Scotia Funding$ 1,047,000

Deposit Fees $ 36,996,835 (78%)

Tire Program $ 3,436,240 (7%)

Stewardship $ 933,837 (2%)

Sales of Recyclable Material $ 5,036,817 (11%)

Rental & Investment Income $ 1,101,339 (2%)

RRFB Nova ScotiaAdmin. and Mandates

Front Cover (left to right)Katie Shipp - Provincial Winner of the Nova Scotia Recycles Grade 12 Essay ContestDan Chassie - Owner of Halifax C&D recyclingBill Ring - CEO, RRFB Nova Scotia

Back Cover (left to right)Alanna McPhee - Manager, Education RRFB Nova Scotia Jimmy McAlpine - Vice Chair, Waste CheckJeff MacCallum - Director of Programs and Business Development, RRFB Nova Scotia

Inside Front Cover (left to right)Jerome Paris - Director of Operations RRFB Nova ScotiaLicia Wack - Owner, Greenwood ENVIRO-DEPOTTM

www.rrfb.com

14 Court Street, Suite 305, Truro, Nova Scotia B2N 3H7

Telephone (902) 895-RRFB (7732) Toll Free 1-877-313-RRFB (7732)

Fax (902) 897-3256 Email [email protected]