July 20th 2015
OTS 2015 Class 1 Reconciliation Credit and Net TSF
Dear Steward:
This notice is to advise you that, consistent with section 9 of the Used Tires Regulation (O.Reg 84/03) OTS has undertaken a Reconciliation calculation based on the financial results at the end of 2014. The results of this calculation have yielded a credit that OTS will be assessing to Stewards of Class 1 tires.  
As a reminder in February 2015, Ontario Tire Stewardship (OTS) calculated the 2015 Base Fee using the actual 2014 tire supply figures and Used Tires Program (UTP) costs as required by the Amended Regulation 84/03 under the Ontario Waste Diversion Act. The product of this calculation was then applied to determine the applicable “Tire Stewardship Fee” (TSF) rates to be remitted by Stewards when reporting the supply of tires according to the Tire Classifications set-out in the Tire Classification document posted on the OTS website at . These new TSF rates were implemented effective May 1st, 2015.
OTS realized an excess of revenue versus expenses associated with Class 1 tires at the end of 2014. As a result, and consistent with the Reconciliation section of the regulation, OTS is proposing to apply a credit of $5,900,000 to this tire class starting September 1st 2015, implemented as a $0.50 / PTE Reconciliation credit per Class 1 tire supplied as of this date.
As a result of the application of this Reconciliation credit to the supply of Class 1 tires the net fee due from Stewards supplying tires of this Class will be reduced. The calculation below illustrates the net fee due per Class 1 PTE supplied:
Net Fee per PTE of Class 1 Tires supplied = Base Fee - Reconciliation credit
As the Reconciliation credit will be applied as an offsetting credit to the calculated Base Fee on Class 1 Tires effective September 1st 2015, with the effect of reducing the net Class 1 TSF payable by Stewards from the current $4.75 to $4.25. This net fee will apply on the supply of tires of this Class until May 1st 2016, when the 2016 Base Fee calculation will be applied potentially impacting the Net fee due (this Reconciliation credit amount will remain the same). OTS will continue to undertake the Base Fee calculations as required by the Used Tires Regulation. The Reconciliation Fee (credit) will then be applied to the Base Fee to determine the net fee payable by Stewards of Class 1 tires.
Please do not hesitate to contact OTS with any questions regarding these revisions either by e-mail at or by phone at 1-888-687-2202. We look forward to working with you to continue to deliver the Ontario Used Tires Program successfully.

Andrew Horsman
Executive Director


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