Lower crude oil prices definitely affect the UOMA’s revenue stream. Fewer lubricating products on which Environment Handling Charges (EHC) are levied mean fewer dollars remitted to each provincial association. The EHC funds the Return Incentives (RI) which drives the collector/processor network. It’s a proven economic model requiring prudent financial management in all economic climates.
Also lower commodity prices for used oil, antifreeze, plastic containers and filters force collectors/processors to adjust their collection schedules. Materials get stockpiled as the demand drops.
To keep the cycle of recovery and reuse going during Canada’s current sluggish economy, the Quebec association (SOGHU), for example, developed a creative solution – a temporary and variable incentive for processors based on the price of crude oil. SOGHU, which also manages the New Brunswick and Prince Edward Island programs, maintained collection services achieving over 90% recovery of available materials.