Waste Less Recycle More grants update - HCCREMS

Waste Less Recycle
More grants update

Overview
   About Waste Less Recycle More
   Why do we need more infrastructure?
   Driving investment in new infrastructure - $250M
    Waste Less Recycle More package
   Resource Recovery Infrastructure Plan for NSW
   Grants underway
   New funding rounds and becoming involved
   What makes a compelling business case?

About Waste Less Recycle More
• First ever independent review of the levy
  completed in Feb 2013
• Review examined the impact of the levy on:
   – Households, recycling, infrastructure and illegal
     dumping
• Extensive consultations
   – 6 workshops
   – 12 week consultation period
   – 104 written submissions
• 17 recommendations proposed by KPMG

Key priorities
• Recycling, illegal dumping and
  littering are key priorities for the
  Government
• $465.7 million in funding over 5
  years
• Draft NSW Waste Avoidance &
  Resource Recovery Strategy 2013
  – 2021
• Review of the Waste Regs
• New energy from waste policy

Key policy drivers
1. Protect the environment & human health from the
   inappropriate use of waste
   (Protection of the Environment Operations Act 1997)

2. Promote waste avoidance & facilitate greater resource
   recovery in NSW
   (Waste Avoidance and Resource Recovery Act 2001)

           THE RIGHT WASTE IN THE RIGHT PLACE!

Why do we need more recycling
           infrastructure?
   Food and garden – 40% of red-lid bins
   Dry recyclables – 25% of red-lid bins
   Business – 70% of waste could be recycled
   NSW 2021 – A Plan to Make NSW Number One
   Draft WARR 2013–21 targets:
        divert from landfill 75% (from 63% in 2010–11)
        municipal waste 70% (from 52%)
        C&I 70% (from 57%)
        C&D 80% (from 75%)

What does the challenge look like to
             reach draft 2021 targets*
                                                                                           Municipal
                                                                                           • 2.5Mt/yr recycled
                                                                                             in 2010/11

                                                                                           • Need to  recycling
                                                                                             from 52% to 70%
                                                                                             by 2021

                                                                                           • 1.2Mt/yr more to
                                                                                             be recycled by 2021

*NSW Government (2013). Draft Waste Avoidance and Resource Recovery Strategy: 2013-2021.
# SKM (2013). Modelling and data analysis to inform new waste strategy.

What does the challenge look like to
         reach draft 2021 targets*

                                                                                           C&I
                                                                                           • 3.1 Mt/yr recycled
                                                                                             in 2010/11

                                                                                           • Need to  recycling
                                                                                             from 57% to 70%
                                                                                             by 2021

                                                                                           • 1.1 Mt/yr more to
                                                                                             be recycled by 2021

*NSW Government (2013). Draft Waste Avoidance and Resource Recovery Strategy: 2013-2021.
# SKM (2013). Modelling and data analysis to inform new waste strategy.

What does the challenge look like to
         reach draft 2021 targets*

                                                                                           C&D
                                                                                           • 5.1 Mt/yr
                                                                                             recycled in
                                                                                             2010/11
                                                                                           • Need to 
                                                                                             recycling
                                                                                             from 75% to
                                                                                             80% by 2021
                                                                                           • 1 Mt/yr more
                                                                                             to be recycled
                                                                                             by 2021

*NSW Government (2013). Draft Waste Avoidance and Resource Recovery Strategy: 2013-2021.
# SKM (2013). Modelling and data analysis to inform new waste strategy.

By 2021, we
need to be
recycling a
further 3.3
million
tonnes per
year to meet
the diversion
target of 75%

To get there, we need investment
in a mix of infrastructure projects

All these types of projects are needed
MRFs – Municipal + C&I – upgrades and new
Organics processing – upgrades and new
C&D processing facilities

Wood, plastics, glass recycling facilities

Energy from waste projects

Residual waste treatment

Key driver is to bring forward
commercially sound projects
and maximise public value

Resource Recovery Infrastructure Plan
               for NSW
• Plan currently under development:
    – updating the GHD 2012 study
    – benchmark current infrastructure, surplus
      capacity and additional infrastructure
      needed
    – focus on reaching 2021 targets
    – provide guidance for proponents at a
      regional level
    – will build in priority regional waste
      strategy infrastructure projects
• Will be released for consultation in new
  year

Local Government
               Regional Waste Strategies
   Regional strategies a priority in NSW
    2021
        Council collaboration to better plan and deliver
         waste and recycling services and infrastructure
         on a regional level – 14 strategies developed
        $22M in funding to support regional
         coordinators + regional strategies + voluntary
         RWG’s
        councils have exclusive access to $61.3M of the
         $250M WLRM infrastructure package
        access to competitive infrastructure grants
         totalling $168.3M

Hunter Councils
                 Regional Waste Strategy
   Some of the region’s priorities:
        Feasibility study – FOGO collections and in-
         vessel composting at one or more facilities
        Feasibility study – GO processing and outdoor
         windrow composting
        Development and rollout of Community
         Recycling Centres

Infrastructure grant
funding opportunities -
         WLRM

Funding rounds now underway
Grants programs rolled out so far – $145M
   Organics Infrastructure Fund: $59.29M
       Organics collections, Love Food Hate Waste, Organics Infra R1

   Business Recycling Fund: $14.7M
       Industrial Ecology R1, Business Advisory Services R1

   Community Recycling Centres: $11.35M
       Community Recycling Centres program R1

   Waste and Recycling Infrastructure: $50.75M
       Expansion and Enhancements R1, Major Facilities R1

   Litter and Illegal Dumping Funds: $9M
       Litter Prevention, Illegal Dumping and Asbestos schemes

Grants awarded so far
$16.3M of grants so far:
• 66 grants
• New organics collection services for 172,000
  households across 21 local council areas
• 6 Industrial Ecology Business Support
  Network grants
• 27 BinTrim grants
• And others - full details on grants awarded is
  on web:
  http://www.epa.nsw.gov.au/waste/grants.htm

Grants awarded so far…

   Organics Infrastructure Fund (R1)
       Organics collections grants program – 21 council
        grants across NSW
       $6.51M awarded
       E.g. Richmond Valley Council FOGO collection
        program ($243,713 grant)
             more frequent weekly (rather than fortnightly) collection service
              for organics
             reduced collection frequency of residual waste
             kitchen caddies, compostable liners and bins for 7,300
              households
             processing of FOGO in Lismore
             new service will divert 1,000 tonnes/yr of FOGO from landfill

Grants awarded so far…
   Waste and Recycling Infrastructure (R1)
       Expansion and Enhancements grants program – 9 grants
        to facilities in levy paying areas
       $5.19M awarded in total
       E.g. Newcastle City Council’s Summer Hill Small Vehicles
        Receival Centre Expansion ($1M grant)
             Funding for new receivals area, sorting facilities for household and C&I
              waste and baling station to increase recovery

   Litter Fund (R1)
             Council Litter Prevention grants program – 15 grants
              for councils
             $402,000 awarded to date

When are the next grant rounds in 2014?

Month       Grant Funding Program
September   Major Resource Recovery Infrastructure R2 (open now)
October     Local Government Organics Collections R2
            Council Litter Prevention Grants R3
            BinTrim small scale infrastructure rebates R1
November    Organics Infrastructure (Large and Small) R2
            Food Waste Avoidance Grants

Grant timelines
Download the timeline at: http://www.epa.nsw.gov.au/waste/grants.htm

Infrastructure Funding:
What makes a compelling
     business case?

What is a Business Case ?
   Core part of your grant
    application
   Business Case presents
    evidence for a “Case for Change”
   Sets out the commercial viability
    of your project
   Outlines how your project will
    deliver private and public benefits

Why is a Business Case needed?

   To ensure investment of public money
    on financially sound projects
   Business needs are clearly identified
   All costs and benefits including
    environmental, social and financial are
    addressed
   Evidence to show capacity to
    implement the project

Why is in a Business Case?

   Organisational capacity to
    undertake the project
   Market analysis
   Technical analysis
   Cost benefit analysis
   Planning / Environmental
    Regulatory Compliance

Market Analysis
   Two components
       Supply of material
       Demand for the recovered resource

   Supply should address
       Reliable source/s
       Quantity
       Where is it directed now and gate fee
        implications

Market Analysis (con’t)

   Demand for the recovered resource
       Potential buyers
       Quantities
       Competing demands / products replaced
       Price / tonne
       Product Specifications / Resource Recovery
        Exemptions

Technical Analysis
   Material processed and recycling
    capacity of the infrastructure
   Technology proposed:
       It is proven, any examples?
       Its suitability to process target material
        types and location?
       Operational performance?
       Environmental performance?

Cost benefit analysis of projects and
               net public benefit test
   Identify all costs
       capital, operating, maintenance and
        contingencies

   Benefits
       avoided costs, savings, revenue from sale of
        recovered materials

   Assess net benefits including:
       net present value with and without grant funding
       benefit cost ratio
       internal rate of return (%)

Cost benefit analysis of projects and net
          public benefit test (cont’d)

    Assess net benefits including
     (cont’d):
        dollars of grant funding per tonne
         of additional material donated or
         recycled

    Undertake sensitivity testing
     (analyse options under
     different DR’s)
    Document all references to
     data sources and assumptions

Project impacts – broad economic
                 benefits of proposal
   Environmental benefits – diversion from landfill etc
   Sustainability practices – water, energy, min waste
    associated with project – design and construction
   Social benefits – jobs / employment, employing people with
    disabilities
   Other benefits – new markets

Project Planning
   Key parts of your infrastructure project plan:
        Objectives of project, outcomes, outputs
        Monitoring and evaluation
        Governance
        Resources and stakeholders
        Risks and risk management
        Related projects, guidelines and standards
        Quality assurance
        Sustainability
        Procurement strategy
        Tasks
        Statutory approvals

Assistance is available –
        EPA Business Case Advisory Service
   Organics (Large and Small) Infrastructure Fund
       Up to 8 hrs. at no cost to applicant for projects valued $500k-$1M
       Up to 16 hrs. for projects valued $1M-$5M

   Major Resource Recovery Infrastructure Fund
       Up to 10 hrs. at no cost to applicant at the EOI Stage
       Up to 20 hrs. for the Full Application Stage

   Application forms on Environmental Trust web site

Tips and lessons learnt so far
   1. Check your eligibility
        review the guidelines
        avoid including non-eligible materials as part of your infrastructure
         project

   2. Compliance with the law
        does your site have DA consent / EPL? Investigations underway?
        compliance with the EfW policy

   3. End markets
        capacity to manufacture to specification / contractual agreements in
         place? How certain are the markets?
        Demand / price volatility?

   4. CBA and value for money

More information

   NSW EPA website
    www.epa.nsw.gov.au/

   Waste updates
    waste.updates@epa.nsw.gov.au

   @NSW_EPA

   mark.jackson@epa.nsw.gov.au