Case Study 2 of 3: Tire Stewardship BC uses PICTUS to Automate Claims

The tire recycling program in British Columbia was the first in Canada, originally existing as a government program before being added to the Recycling Regulation in 2006. Since 2007 Tire Stewardship BC (TSBC) is the producer responsibility organization (PRO) for scrap tires in BC. This work involves managing the registration, compliance and the remittance of eco fees from over 2,500 retailers. In addition, TSBC is responsible for the tracking and payment of incentives for the collection and processing of over 5 million scrap tires annually from more than 4,000 locations across BC.
In 2019 TSBC implemented PICTUS Registration and Sales Filing, dramatically improving the revenue cycle. See the separate case study on that project. In 2021, the planning for implementation of PICTUS Claims was initiated. For TSBC claims processing is the tracking of the collection of scrap tires, the sale of recycled materials and the payment of incentives for these two major activities. The incentives typically represent over 90% of all TSBC expenses.
The two phase approach would initially implement Claims and replace an existing claims entry front end and a separate back end application. This would put all claims processing on the same PICTUS platform used for Filing, Remittance, Registration and Communications, simplifying and streamlining operations and IT costs. This first phase is shown as “Claims” below.
While the TSBC product catalog for sales reporting is relatively simple (just 4 types of tires), the claims cycle is significantly more complicated. While 4 types of tires are recycled (passenger, medium truck, agricultural and logger/skidder), the tires are processed into many recyclable components with varying levels of incentives depending on the type of recycling, complicating the incentive payment process. Incentive claims are available for transportation, processing and recycled rubber manufacturing. The ability to track and pay the claims is a critical component of the program as this information must be reported to the regulators and is audited annually. TSBC has achieved a recycling recovery rate of 89% (based on total # units collected in reporting year / total # units sold 5 years prior to reporting year).
The benefits of using PICTUS Claims for TSBC includes:
TSBC was able to achieve this result through collaboration with PICTUS and Liberty Tire Recycling. Liberty is the main claimant and processor with TSBC, demonstrating a flexibility and commitment to work with TSBC in this BC journey.
The second phase, eManifest using the Collections module, is the subject of another case study exploring the full digitization of the TSBC claims process.