In order to maintain its financial viability, the Alberta Used Oil Management Association (AUOMA) is reducing the return incentives it pays to companies that collect and recycle used oil. As a result, municipalities are likely to experience decreased services or increased costs related to the management of used oil.
The Environmental Handling Charges (EHCs) AUOMA may collect to fund the collection and recycling of used oil materials are set in provincial regulation and have not increased in 20 years- unlike the cost of recycling, which has risen over that same period of time.
In order to balance its budget, AUOMA will reduce the Return Incentives provided to processors and collectors by 15 per cent, effective January 1, 2018. This reduction will be spread evenly across all zones in Alberta to minimize any distortion to the existing competitive dynamic of the marketplace. Further details about the changes are outlined in a letter AUMA received from AUOMA.