Material Cost Differentiation (MCD) Project Update (December 2018)

The second phase of the MCD Project, the Pilot test phase, is coming to closure.  The project consultant, Resource Recycling Systems (RRS) completed a series of tests to measure the effectiveness of the protocols they have developed to measure the impact of a material’s characteristic, or group of characteristics, on the cost of the recycling system.  Two pilot tests are yet to be completed but work is underway to complete these remaining activities.

Of the two tests outstanding, one is focused on testing Material Categories.  This is of most interest to stewards as the outcome of this test will help inform any changes to the categories used by stewards when preparing their annual filing.  The results of this test are expected in Q1 2019 at which point, the Steward Consultation Committee (SCC) will be asked to review the results and provide input on behalf of the entire steward community.

Given the significant progress in Phase 2, the work will begin to develop the tender documents needed to identify consultants who can conduct the Phase 3 studies.  In Phase 3 a full series of studies will be conducted to obtain a comprehensive set of cost impact data which can be used as inputs to the fee setting process.