Ontario is proposing a $500-per-tonne subsidy for registered tire recycling organizations to distribute approximately $30 million remaining from its former Used Tires Program, with first payments expected in May 2027 for 2026 collection and processing activities.
- Subsidy amount: $500 per eligible tonne for registered producer responsibility organizations handling tire collection and recycling
- Funding pool: Approximately $30 million from Ontario's former Used Tires Program available for distribution
- Payment structure: Recipients receive 75% initially, with remaining 25% held until annual reconciliation and performance audit
- Eligibility focus: Only tires processed to meet the increase from 65% to 80% collection requirement qualify; retreated and reused tires are excluded
- Key deadline: Written feedback due November 10, with RPRA approval expected by December 10
Registered tire recycling organizations could receive $500 per eligible tonne under a proposal to distribute approximately $30 million remaining from Ontario’s former Used Tires Program.
The proposed payment schedule anticipates the first disbursements for 2026 collection and processing activity in May 2027. Written feedback on the plan is due Nov. 10.
The consultation is being conducted by the Resource Productivity and Recovery Authority (RPRA), the Toronto-based regulator overseeing Ontario’s producer responsibility programs, and Ontario Tire Stewardship, the organization winding up the former tire program.
Payments would go to registered producer responsibility organizations, or PROs, which arrange collection and recycling on behalf of tire producers.
According to the Oct. 20 consultation proposal, recipients would initially receive 75% of their calculated allocation. The remaining 25% would be held until an annual reconciliation following a performance audit.
Monthly reporting would require an attestation from a corporate officer confirming the accuracy of reported tire volumes. Supporting records could include hauler weight documentation, processor invoices and bills of lading.
The proposed $500-per-tonne rate remains open to revision through the consultation. Stakeholders are being asked whether it reflects current collection and processing costs and whether they support the payment frequency and holdback.
The funding follows an Oct. 1 direction from Ontario Environment, Conservation and Parks Minister Todd McCarthy, issued in response to disruptions in tire collection and recycling.
In the letter, McCarthy directed that the surplus offset costs associated with increasing producers’ tire-management requirement from 65% to 80%, beginning with the 2026 performance year. He also expressed an expectation that producers would not pass the additional costs on to consumers while the surplus funding was available.
Eligibility would be limited to processed tires used to meet the increase between the former 65% requirement and the new 80% requirement. Tires used to satisfy the original obligation, or volumes beyond a producer’s 80% target, would not qualify.
McCarthy’s direction also excludes retreaded and reused tires from the subsidy, identifying the collection and processing of tires in stockpiles and backlogs as the priority. Recipients would have to demonstrate that qualifying collection and processing work had been completed before receiving payment.
The funding proposal accompanies broader changes to Ontario’s tire recycling system. According to RPRA’s September notice, the required collection network will expand from approximately 4,300 sites to 6,500 in 2027. At least 220 of the additional sites must be in northern Ontario.
Ontario Tire Stewardship must submit the amended distribution plan for approval by Nov. 26. According to the consultation notice, RPRA is expected to approve the plan, with or without conditions, by Dec. 10.
Written submissions can be sent by Nov. 10. The proposal and supporting documents are available on RPRA’s website.
