Inquiry Into Recycling And Waste Management

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PARLIAMENT OF VICTORIALEGISLATIVE COUNCILEnvironment and Planning CommitteeInquiry into recycling and wastemanagementfinal reportParliament of VictoriaLegislative Council Environment and Planning CommitteeOrdered to be publishedVICTORIAN GOVERNMENT PRINTERNovember 2019PP No 94, Session 2018-19ISBN 978 1 925703 90 0 (print version), 978 1 925703 91 7 (PDF version)

Committee membershipCHAIRDEPUTY CHAIRCesar MelhemClifford HayesWestern MetropolitanSouthern MetropolitanBruce AtkinsonMelina BathJeff BourmanDavid LimbrickEastern MetropolitanEastern VictoriaEastern VictoriaSouth Eastern MetropolitanAndy MeddickDr Samantha RatnamNina TaylorSonja TerpstraWestern VictoriaNorthern MetropolitanSouthern MetropolitanEastern MetropolitanParticipating membersGeorgie Crozier, Southern MetropolitanDr Catherine Cumming, Western MetropolitanHon. David Davis, Southern MetropolitanBev McArthur, Western VictoriaTim Quilty, Northern VictoriaiiLegislative Council Environment and Planning Committee

About the CommitteeFunctionsThe Environment and Planning Committee (Legislation and References) is establishedunder the Legislative Council Standing Orders Chapter 23 — Council Committees andSessional Orders.The committee’s functions are to inquire into and report on any proposal, matter orthing concerned with the arts, environment and planning the use, development andprotection of land.The Environment and Planning Committee (References) may inquire into, hold publichearings, consider and report on other matters that are relevant to its functions.The Environment and Planning Committee (Legislation) may inquire into, hold publichearings, consider and report on any Bills or draft Bills referred by the LegislativeCouncil, annual reports, estimates of expenditure or other documents laid beforethe Legislative Council in accordance with an Act, provided these are relevant to itsfunctions.Government Departments allocated for oversight: Department of the Environment, Land, Water and Planning Department of Premier and CabinetInquiry into recycling and waste management: final reportiii

About the CommitteeSecretariatMichael Baker, Committee ManagerKieran Crowe, Inquiry OfficerAlice Petrie, Research AssistantJustine Donohue, Administrative OfficerContact detailsAddressLegislative Council Environment and Planning CommitteeParliament of VictoriaSpring StreetEAST MELBOURNE VIC 3002Phone61 3 8682 ://www.parliament.vic.gov.au/epc-lcThis report is available on the Committee’s website.ivLegislative Council Environment and Planning Committee

ContentsPreliminaries1Terms of referenceChair’s forewordFindings and recommendationsAcronyms and termsixxixiiixxiiiIntroduction11.12Conduct of the Inquiry11.1.1Advertising11.1.2Stakeholder engagement11.2Submissions11.3Public hearings11.4Interim report31.4.13Scope of the interim reportVictorian Overview132.1Overview of recycling and waste management in Victoria132.1.1Waste streams142.1.2Waste material types162.1.3Recycling rates192.1.4Landfill rates212.1.5Waste levy242.1.6Sustainability Fund292.1.7Commonwealth Government352.1.8State government352.1.9Department of Environment, Land, Water and Planning352.1.10Environment Protection Authority362.1.11Sustainability Victoria362.1.12Waste and resource recovery groups372.1.13Commissioner for Environmental Sustainability382.1.14Infrastructure Victoria392.1.15Auditor‑General’s comments on governance of the recycling and wastemanagement industry402.1.16Local government42Inquiry into recycling and waste management: final reportv

Contents2.2 The recycling crisis3442.2.1Causes of the crisis452.2.2China’s National Sword policy452.2.3Limited service providers502.2.4The impact of market collapse512.2.5Impact on communities outside Victoria572.2.6Government responses58Municipal waste613.1What is municipal waste?613.2 Municipal recycling in Victoria613.3 Contamination in municipal recycling623.3.1Co‑mingled recycling bins623.4 Glass contamination in municipal recycling643.5 A separate municipal glass recycling bin653.5.1The economic and environmental considerations for a separate municipalglass collection service663.5.2Experiences with the introduction of separate municipal glass recyclingbins673.5.3The Committee’s view in relation to the introduction of a separate glassbin for municipal recycling693.5.4Uses for glass collected in a separate municipal recycling bin703.6 Landfill waste contamination in kerbside municipal recycling703.7 Food organics and garden organics713.7.1Different types of organic waste and municipal collection arrangements713.7.2Diversion of food waste from landfill713.7.3Food waste avoidance733.7.4Uses of food and organics waste and infrastructure required733.7.5The Committee’s view on the statewide introduction of a separate FOGObin743.7.6Biodegradable bags suitable for composting743.7.7Composting at home763.7.8FOGO contamination763.7.9Costs for introducing FOGO services773.7.10 A costing for a fortnightly statewide kerbside food and garden wastecollection with 120L bins from the Victorian Parliamentary Budget Office3.8 Municipal recycling educationvi79803.8.1The importance of education in reducing contamination in municipalrecycling803.8.2Fragmented and inconsistent municipal recycling education813.8.3Difficulties with inconsistent municipal recycling practices and capabilities833.8.4Implementing a statewide municipal recycling education campaign843.8.5Municipal waste avoidance education86Legislative Council Environment and Planning Committee

Contents3.9 Standardising statewide municipal recycling practices and capabilities3.9.1Bin lid standardisation893.10 Auditing of recovery rates913.11 Municipal waste as an essential service933.11.1What is an essential service?933.11.2The Essential Services Commission’s inquiry943.11.3The implications of waste as an essential service943.11.4Views of stakeholders953.12 A container deposit scheme3.12.1Container deposit schemes in Australia96973.12.3 Decreased contamination1013.12.4 Overall glass recycling rates1023.12.5 Markets for products of the scheme1033.12.6 The views of stakeholders regarding a container deposit scheme1043.12.7 Costing estimate from the Victorian Parliamentary Budget Office1053.13.1Markets for e‑waste material3.13.2 Solar panels (solar PV)3.14 Planning considerations for the collection of municipal waste3.14.1Multi‑unit developments106107108110110Waste avoidance1134.1114A circular economy4.2 Single use plastics1174.2.1Government action1184.2.2Banning use1184.2.3Minimising use1204.3 Product stewardship5963.12.2 Overview of the NSW Government’s Return and Earn scheme3.13 E‑waste4871224.3.1Product aste and resource recovery infrastructure1395.1An overview of waste and resource recovery infrastructure in Victoria1395.1.1Collection infrastructure1395.1.2Recovery facilities1405.1.3Disposal infrastructure (landfills)1435.2 Regional waste and resource recovery infrastructure1445.2.1High transport costs1445.2.2Government investment in regional Victorian waste and resource recoveryinfrastructure146Inquiry into recycling and waste management: final reportvii

Contents5.3 Materials recovery facilities5.3.1147Improving materials recovery facilities5.4 Victoria’s future waste and resource recovery infrastructure needs671491505.4.1Infrastructure Victoria’s report1505.4.2Infrastructure uncertainty and commercial investment1505.5 Product‑specific processing facilities1535.6 Landfill closure154Energy from waste1576.1What is energy from waste?1576.1.1158Types of energy from waste6.2 Regulatory framework1616.3 Initiatives in Victoria1626.4 Benefits and challenges1636.4.1Circular blic health1766.4.5Financial1786.4.6Municipal solutions1796.4.7Policy certainty181Market development1857.1Government policy and action1857.2Creating and growing markets1887.2.1Existing markets1897.2.2New markets1917.2.3Incentivising the use of recycled materials1937.2.4Product testing and specifications1957.2.5Government procurement196Appendices12About the InquiryThe Metropolitan Waste and Resource Recovery Group’s requiredinfrastructure scheduleExtract of proceedingsMinority reportsviii201219223243Legislative Council Environment and Planning Committee

Terms of referenceInquiry into recycling and waste managementThat this House requires the Environment and Planning Committee to inquire into,consider and provide an urgent interim report, as the Committee deems necessary, onthe current circumstances in municipal and industrial recycling and waste management,and provide a final report, by Tuesday, 13 August 2019, on the crisis in Victoria’srecycling and waste management system, partly resulting from the China wasteimportation ban, including, but not limited to—1.the responsibility of the Victorian Government to establish and maintain a coherent,efficient and environmentally responsible approach to solid waste managementacross the state, including assistance to local councils;2. whether the China’s National Sword Policy was anticipated and responded toproperly;3. identifying short and long-term solutions to the recycling and waste managementsystem crisis, taking into account—a. the need to avoid dangerous stockpiling and ensure recyclable waste is actuallybeing recycled;b. the cleaning and sorting capabilities and the processing capabilities in Victoriaand the potential to expand the local recycling industry;c. how to better enable the use of recycled materials in local manufacturing;d. the existing business model and economic challenges facing the existingindustry;e. the quantifiable benefits, including job creation and greenhouse gas emissionsreduction, of pursuing elements of a circular economy in Victoria;f.the existing Sustainability Fund and how it can be used to fund solutions to thewaste crisis;4. strategies to reduce waste generation and better manage all waste such as softplastics, compostable paper and pulp, and commercial waste, including, but notlimited to—a. product stewardship;b. container deposit schemes;c. banning single use plastics;d. government procurement policies;Inquiry into recycling and waste management: final reportix

Terms of reference5. relevant reviews, inquiries and reports into the waste and recycling industry in otherAustralian jurisdictions and internationally;6. any other related matters.* The reporting date for this inquiry was extended from 13 August 2019 to29 November 2019. The interim report was due on 29 August 2019.xLegislative Council Environment and Planning Committee

Chair’s forewordThis has been a very complex and important inquiry. As can be seen from the morethan 700 submissions, the issue of recycling and waste management is one thatmatters to Victorians.During the course of the inquiry, the Committee has held 14 days of public hearingsand heard evidence from 135 witnesses in addition to the submissions and has hadinput from the recycling and waste management industry, state and local governmentagencies and authorities, environmental groups and industry bodies, as well asindividual community members and community groups. The Committee has beenextremely grateful to all of those individuals and groups who have made a contributionto the inquiry through their submissions and evidence.The Committee addressed the terms of reference in two parts: the first being theissue of the devastating industrial fires that have taken place over the last few yearsas a result of the illegal or inappropriate stockpiling of dangerous chemicals. In orderto address the urgent issue of the management of such stockpiles, the Committeeprepared and tabled an interim report in August which identified some of the key issuesthat needed to be addressed. As the interim report was tabled prior to the conclusionof the inquiry and therefore there was significant evidence still to be taken, theCommittee decided not to make recommendations at that point. This issue is addressedin Chapter 1 of this report but the detailed discussion of the issue of the fires is found inthe interim report.The focus of the rest of this inquiry is of recycling and waste management in Victoria,particularly in the wake of changes to the export markets and the impact these changeshave had on participants in the Victorian industry and on the Victorian community.The Committee has provided an overview of the Victorian recycling and wastemanagement system, including some description of the cause and effect of what hasbecome known as the recycling crisis. There is significant discussion about municipalwaste, some of the issues of contamination and their impact on recycling, the impactand future of landfills in Victoria, and a range of other issues that have been raised insubmissions and in public hearings. These issues include the introduction of a containerdeposit scheme, the development of waste to energy as a way of divert waste fromlandfill, the importance of education of the community in how to properly manage theirrecycling and waste, the development of a circular economy and product stewardshipamong other things. The committee also considers the overarching structures ofgovernment, and whether changes are needed to better oversee the recycling andwaste management system in Victoria.The Committee has made 46 recommendations on a range of issues. It looks forward toreceiving the government’s response to these recommendations.Inquiry into recycling and waste management: final reportxi

Chair’s forewordThe state government should be commended for the actions taken since the recyclingcrisis became apparent, both in terms of the financial assistance it has provided tolocal councils and industry players, and in the support it provided to SKM and the roleit played in facilitating the sale of the company. These actions will assist the industryin Victoria to set new directions for the industry. We are seeing the recycling rate inVictoria, already the highest percentage in Australia, improve to 69 per cent.The Committee has also been looking forward to the Infrastructure Victoriaevidence‑based review of the recycling and waste management industry in Victoria,which is due in April 2020. It is hoped that this review will provide the basis of strategiesand policy settings that will lead to a stronger and more dynamic industry and will helpthe industry grow and prosper. That can only serve the Victorian community well.I believe that this report will make a significant contribution to the development ofbetter recycling and waste management practices in Victoria, and I commend both thereport and its recommendations to the community and to the government.I would like to thank my fellow Committee members, who come from a range of politicalparties and philosophical positions, for the professional and collegiate way they haveapproached this inquiry from the outset. While there may have been disagreementsabout some of the ways of achieving positive outcomes, the Committee members haveacted at all times with a view to achieving the best possible outcomes for the Victoriancommunity. The number of hearings, as well as the large number of quite detailedsubmissions, has required members to put in substantial effort and set aside a lot oftime for the inquiry. Members have done this willingly and have made a significantcontribution through their work on this inquiry to an improved recycling and wastemanagement future.I would also like to thank the staff of the Committee, in particular Committee ManagerMichael Baker, Inquiry Officer Kieran Crowe and Research Assistant Alice Petrie.These staff have worked long hours and have assisted the Committee by managinga significant amount of data and a large number of public hearings, and the inquiryand final report would not be of the high standard that it is without their skill anddedication. On behalf of the Committee, I sincerely thank them for their efforts. I wouldalso like to thank the Committee’s Administrative Officer Justine Donohue and the restof the Committee secretariat for the administrative work that has been done to a highstandard throughout the inquiry.Cesar Melhem MPChairxiiLegislative Council Environment and Planning Committee

Findings and recommendations1IntroductionRECOMMENDATION 1: The Committee recommends that following a major incidentwhere community members may be exposed to toxic smoke or other hazardousresidues, the Department of Health and Human Services undertake public health testingin the affected suburbs and surrounding areas as required to ensure that there areno health impacts on local residents. Generalised results from these tests should becommunicated to the community. 7RECOMMENDATION 2: The Committee recommends that the Victorian Governmentrun a publicity campaign to encourage metropolitan residents to download theVicEmergency app to supplement other communication methods. Information providedaround incidents such as the Coolaroo, West Footscray and Campbellfield fires shouldinclude any specific health risks and details of where further information can be obtained. 8RECOMMENDATION 3: That manifests be not only kept onsite, but it be mandatorythat the businesses notify the EPA and all other authorities the exact details andquantities of all chemicals on site. This manifest should be online and availableimmediately to emergency services on multiple devices. 9FINDING 1: The Committee is concerned that there is too much stockpiling ofindustrial and chemical waste and that it is being stored for too long and that thisincreases the risks to the community. 9FINDING 2: The Committee considers that there is inadequate market capacity toprocess the stockpiled materials. 10RECOMMENDATION 4: The Committee recommends that the suspension of licencesfor the storage of industrial and chemical waste be imposed immediately to ensure thatcompanies are required to bring their storage volumes within the terms of their licencesbefore they are allowed to continue to trade and that penalties for non‑compliance areimposed at the time of the suspension. 10RECOMMENDATION 5: The Government should facilitate the development of a moreextensive market for stockpiled hazardous material. 10Inquiry into recycling and waste management: final reportxiii

Findings and recommendations2Victorian OverviewFINDING 3: Victoria has the lowest landfill levy rate of all mainland states and this isacting as an incentive for waste to be transported to Victoria from states with a higherrate. 28FINDING 4: A national approach to the setting of levies would assist in reducing thesubstantial variations in state levies and would thereby remove the financial incentivesfor transporting waste materials between jurisdictions. 28RECOMMENDATION 6: That the landfill levy in Victoria be adjusted to the extentthat the financial incentive to transport waste materials from other jurisdictions, aswell as the incentive to send material to landfill, is removed. The Victorian Governmentshould work with the Commonwealth Government and relevant stakeholders includinglocal government to harmonise the landfill levy nationally. 29FINDING 5: The Committee considers that the Sustainability Fund has not beenas accessible as it should have been, particularly for local councils, at a time whenrecycling and waste management costs were significantly increased. 34RECOMMENDATION 7: That the Victorian Government make clear through detailedguidelines about what the Sustainability Fund is for, who is able to access the Fund, howthey access it and how are the Fund’s outcomes measured. 34RECOMMENDATION 8: In light of the concerns raised by councils about theaccessibility of the Sustainability Fund, the Committee recommends, in line with theAuditor-General’s recommendations, that the Sustainability Fund be audited to ensurethat the Fund is accessible and demonstrates which programs have achieved againstthe

Inquiry into recycling and waste management: final report ix Terms of reference Inquiry into recycling and waste management That this House requires the Environment and Planning Committee to inquire into, consider and provide an urgent interim report, as the Committee deems necessary, on

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