Ontario has redirected $34 million in surplus tire-program funds to help tackle the province's used-tire collection backlog by supporting registered producer responsibility organizations. The funding supports efforts to meet new regulatory targets requiring 80% tire management by 2027 and expand collection sites from 4,300 to 6,500 locations across the province.
- Ontario redirected $34 million in surplus tire-program funds to address collection backlog on October 1, 2026
- Management target increased from 65% to 80% for 2026 and beyond, calculated by tire weight
- Collection network expanding from approximately 4,300 to 6,500 sites by 2027, with at least 220 new sites in northern Ontario
- Estimated collection and processing costs of approximately $500 per tonne for eligible processed tires
- Ontario Tire Stewardship must submit amended distribution plan for approval by November 26, 2026
Approximately $34 million in surplus tire-program funds has been earmarked to help tackle Ontario’s used-tire collection backlog.
Environment Minister Todd McCarthy issued the direction on Oct. 1, 2026, instructing Ontario Tire Stewardship to change how it distributes money remaining from the former Used Tires Program.
The funds are to go to registered producer responsibility organizations, which arrange tire collection and recycling for producers. Previous instructions called for distributing the surplus to former program stewards. Consultations on implementation are scheduled for October and November.
Carthy said the money should offset costs associated with Ontario’s increased tire-management requirement. “Tire producers should not, in turn, have to pass on increased costs to consumers, while PROs have access to the OTS surplus funds,” he wrote in the direction letter.
Ontario announced regulation changes on Sept. 21, raising the management target from 65% to 80% for 2026 and subsequent years. The target is calculated by weight using a producer’s average tire supply.
The required collection network will also expand from approximately 4,300 sites to 6,500 in 2027. At least 220 of the additional 2,200 sites must be in northern Ontario.
Surplus funding will cover processed tires used to meet the additional obligation between the former 65% target and the new 80% requirement. Retreaded or reused tires will not qualify.
The ministry estimates collection and processing costs at approximately $500 per tonne, but Ontario Tire Stewardship must determine the payment rate. Organizations seeking payment will need documentation showing eligible collection and processing work has been completed.
Ontario Tire Stewardship must submit its amended distribution plan to the Resource Productivity and Recovery Authority for approval by Nov. 26. Remaining funds may support eligible work in 2027.
The regulatory changes also strengthen enforcement by removing the $1-million cap on administrative penalty orders for contraventions occurring after the amendments were filed.
However, Ontario did not adopt proposals to guarantee collection response times or require collected tires to be managed within three months of pickup. The ministry cited concerns about complexity and the need for flexibility.
