Submission No 176

INQUIRY INTO 'ENERGY FROM WASTE' TECHNOLOGY Organisation: Southern Sydney Regional Organisation of Councils (SSROC) Inc

Date received: 25 May 2017

26 May 2017 Legislative Council NSW Parliament

Portfolio Committee No.6 - Planning and Environment Energy from Waste technology

Attention Chair: The Hon. Paul Green MLC

SSROC

Submitted via NSW Parliamentary website https://www.parliament.nsw.gov.au/committees/inguiries/Pages/lodge-a-submission.aspx?pk=2436

Re: Parliamentary Enquiry into the role of 'energy from waste' technology for NSW

Thank you for the opportunity to provide a submission to the enquiry committee on the matters raised in the terms of reference.

The Southern Sydney Regional Organisation of Councils (SSROC) is an association of eleven councils spanning Sydney's southern suburbs, eastern suburbs, CBD, and inner west and covering a third of the Greater Sydney's population, or 1.7 million people.

SSROC provides a forum through which our member councils can interact, exchange ideas and work collaboratively together to solve regional issues and contribute to future sustainability. We aim to advocate on behalf of our region to ensure that the major issues are addressed by all levels of government. This includes:

• Advocating for regional interests at all level of government • Developing regional policies and positions on issues facing our member councils now and

into the future • Working together on shared services, contracts, and procurement to cut the cost of council

delivering vital services to the community

This submission has been prepared with input from member Councils. Due to the timing of this review it has not been possible for this submission to be reviewed and endorsed by SSROC Delegates. I will contact you should any issue arise as a result.

Our Region's interest in this Enquiry SSROC Councils' residents produce approximately 655,000 tonnes of household waste a year­about 19% of all NSW household waste. The region also contains several of the NSW Government's Growth Corridors.

A major challenge for both the South and Central Districts (as designated in the "Plan for Growing Sydney" and "Towards our 2036") is the future provision and management of waste services to address the growth in waste generation from the increased urban densities and population growth.

Southern Sydney Regional Organisation of Councils Level 7, 1 Lawson Square (SSROC) Inc. REDFERN NSW 2016

PO Box 3136, REDFERN LPO NSW 2016

T 02 6396 3600 F 02 8396 3616 E ssroc@ssroc.nsw.gov.au

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The ongoing provision of suitable and viable services (and infrastructure) to deal with that waste in proximity to its source and that meet the human and environmental health requirements of the NSW Energy from Waste Policy Statement is essential for the future smooth functioning of the Sydney Metropolitan Area - for business, industry and households.

The strategic planning for the provision of that state significant infrastructure (which can take 5-10 plus years to establish) within the Sydney Metropolitan Area appears to have fallen behind in recent years resulting in an increasingly pressing need to address the gap and the NSW Government commissioning an infrastructure needs analysis study. Whilst the NSW Government is applauded for making funds available to support provision of infrastructure, for the Sydney Metropolitan Area the making of suitable land on which to build that infrastructure available is the most pressing issue. Key international cities including Copenhagen (Denmark), Vienna (Austria), London (UK) have provided and continue to develop such facilities within proximity to both the locations of waste generation and energy take off needs 1. Many are therefore located close to residential properties.

Our member Councils understand that the introduction of a new technology, with which residents are not familiar, could naturally be met with suspicion and concern. SSROC's submission is, in part therefore informed by a first piece of extensive social research conducted in Australia into community attitudes towards recovering energy from waste, and community understanding of resource recovery with a focus on recovering energy from waste.

Importantly, SSROC undertook this NSW Government funded research in 2015 as a stand-alone study that was not linked with any proposed facility. This study, which explored gaining the 'social licence to operate2

' is unpublished. However, the executive summary is attached for the Committee's reference and will be released on request. The NSW EPA has a copy of the full findings which have also been presented and well received at two leading waste conferences. Key findings regarding the social licence to operate are covered at point (d) additional factors.

SSROC requests that the Committee consider the importance of raising awareness of energy from waste technology as a safe and proven solution to an increasingly urgent and growing problem. That problem is that Sydney is generating waste at high and increasing rates, and before long will not have the capacity to manage it. SSROC would also like to see the NSW EPA having responsibility for raising that awareness as our social research demonstrated that the NSW EPA is trusted by the community as a credible source of information about energy from waste.

In summary; SSROC recognises that recovering energy from waste (using various technologies) is a globally well-established and accepted method for treating the waste that remains after all the recycling is done. Whilst new for Australia, it has been used worldwide for decades. Facilities are frequently sited within or close to city centres to maximise recovery and use of the energy produced. We also note that the NSW Energy from Waste Policy Statement is specifically designed to ensure that this technology is used only when all the higher order recovery that can be achieved is done. Furthermore, that thermal treatment options bring higher recovery than landfilling.

We now address the points raised in the enquiry: Point (a) current provision of waste disposal and recycling facilities and application of waste levy.

It is generally understood by State and Local Government and the waste and resource recovery industry that NSW is facing the challenge of insufficient infrastructure (from processing plants to

1 SSROC anticipates that other submissions will likely provide further detail on proximily of major facilities to residential housing 2 Social licence is defined by ACCSR a leading Australian Corpora-te Social Responsibllity body as "the level of acceptance or approval continually granted to an organisations operations or project by local community and other stakeholders". http://accsr.com.aufdefining·the­elusive-and-essenUal-sociaHicence-to-operale/ The NSW Energy from Waste Policy Statement (2015) Section 2 uses the term 'good neighbour principle' rather than social licence. The Policy Statement outlines the requirements for proponents to follow both during consultation and when operating to meet that 'good neighbour principle' hllp:f!www .epa .nsw .gov .au/resou rcesfepa/ 1500 11 enfromwasteps.pdf

Southern Sydney Regional Organisation of Councils Level 7, 1 Lawson Square (SSROC) Inc. REDFERN NSW 2016

PO Box 3138, REDFERN LPO NSW 2016

T 02 8396 3800 F 02 8396 3816 E ssroc@ssroc.nsw.gov.au

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transfer stations, to organics and recycling facilities) being available to treat not just the existing waste but the projected growth in waste generation in the short-term future. NSW EPA staff signalled informally in 2016 that to meet the 4.3 million tonnes per annum shortfall estimate for NSW by 2021, at least 22 new recycling and or resource recovery facilities (for all types of waste and technologies) would be needed in the Sydney Metropolitan Area alone by 2021. Constraints in processing capacity could be felt as early as 2019. However, SSROC is awaiting the release of the NSW Government Waste Infrastructure Needs Analysis report for the confirmation of the situation and the Government's response to managing and addressing that gap.

SSROC continues to advocate (as we have been doing for some years) to the Government (most recently through the draft District Plans) for Waste and Recycling services and infrastructure to be treated as 'essential services'3. Doing so would enable the appropriate lands to be reserved and zonings applied by the State Government within the Greater Sydney Region to meet the gap in processing and treatment services. This could benefit the economy of NSW, as the NSW Government and industry would then be able to deliver these essential services for the residents, businesses and industries of Greater Sydney.

We note that Victoria has recently started treating waste infrastructure and the associated services as 'essential services' for the State and that environmental protection and land use planning departments are jointly focussing on better integration to reduce delays in decisions, support investment and improve liveabilitl This approach is what SSROC is advocating for metropolitan Sydney in our submission to the Greater Sydney Commission on the District Plans.

SSROC supports the use of the waste levy as an effective tool for encouraging development of innovative technologies and strategies to divert waste from landfill. With that intent, SSROC supports the continued application of the waste levy to wastes destined for landfill or disposal. However, that policy needs to be balanced by Government facilitating the provision of alternatives to landfill. Without provision of sufficient alternatives to landfill Councils have no option other than to landfill. That means passing those increasing costs (arising from the levy) to their residents as domestic waste charges as required under the Local Government Act NSW (1993).

In summary on point (a) SSROC's position is that there is urgency for the Government to address the waste and associated services infrastructure gap and we support the use of the waste levy to drive resource recovery in the context of the provision of alternative solutions.

Point (b) Role of energy from waste technology in addressing waste disposal needs and the impact on the recycling industry.

In line with the NSW Waste and Resource Recovery Act (2001) and NSW State Waste and Resource Recovery (WARR) Strategy (2013-21 ), recovery of energy from waste is at the middle of the waste hierarchy; it sits above both treatment and the least preferred option which is disposal. Recovering energy from residual waste offers the dual benefit of recovering further resources in line with the NSW WARR strategy and creating energy that can be used on site or by a suitably co­located facility.

The NSW Energy from Waste Policy Statement and legislation do not enable energy from waste technology to be used instead of recycling so SSROC's understanding is that it would not and could not impact negatively on the future of the recycling industry. It can instead help reduce the use of non-renewable power sources, by co-locating facilities where the renewable energy produced can be used to offset existing energy demand.

3 In the same way as water, energy and roads are treated as essential services under the NSW Essential Services Act (1998) 4 2017, April/May edition, Inside Waste, "A busy year in Victoria" (p18-19)

Southern Sydney Regional Organisation of Councils Level?, 1 Lawson Square PO Box 3138, T 02 8396 3800 (SSROC) Inc. REDFERN NSW 2016 REDFERN LPO F 02 8396 3816

NSW 2016 E ssroc@ssroc.nsw.gov.au

Point (c) Regulatory standards, guidelines and policy statements oversighting energy from waste

Our organisation does not have the expertise to comment on overseas regulatory standards, guidelines or policy statements and consider that the NSW EPA (and the WA EPA as they have approved facilities) is the most appropriate authority to comment.

Regarding the NSW planning regime, SSROC understands that it is easier for planning approval to be granted for landfill (lowest in the hierarchy and last resort for dealing with waste under the waste hierarchy), than it is for the infrastructure that delivers higher order resource recovery outcomes. This is the case even though the technologies that deliver those higher order outcomes have been long established in other jurisdictions. This could be perceived to be a perverse outcome of the regulatory and planning regimes.

Point (d) Additional factors to be considered by the enquiry within regulatory and other approval processes:

SSROC appreciates the opportunity to comment on additional factors. We provide input related to the good neighbour principle requirement of the NSW EPA Energy from Waste policy statement.

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Our social research findings5 show that by undertaking appropriate levels of community engagement over time before a planning application, and taking the community on the journey when developing an energy from waste plant (as with any major industrial infrastructure), that the social licence can be gained during the approvals process. The good neighbour principle outlined in the Energy from Waste Policy Statement can then be carried through when the plant is operating.

Overall our research (which talked to over 1,600 people by phone, email or focus group) found that the residential community is open to the concept of using energy from waste technology to treat Sydney's residual waste once all the recycling has been done, and sees landfilling as a waste of resources. SSROC residents were strongly in favour of technologies that would improve environmental outcomes, increase recovery of resources and reduce waste going to landfill.

Evidence that energy from waste is a tried and trusted technology overseas also provides significant reassurance to residents. Having taken part in the study, explored implications for having a facility in their LGA, following focus group discussions and despite raising concerns about the potential environmental and health impacts of emissions, nearly all focus group participants (44/48) strongly supported or supported 'having a renewable energy from waste facility in Sydney.' Not one participant stated that they opposed or strongly opposed having a facility in Sydney. SSROC would be happy to present the findings and recommendations arising from the research to the Committee.

Point (e) State or Local Government Responsibility for environmental monitoring of facilities SSROC understands that the environmental monitoring of waste facilities is the responsibility of State Government under the Protection of Environmental Operations Act (PoEO) (1997). The monitoring is directly linked to the NSW State Government Department of Planning approvals process. In addition, as a facility may impact and benefit more than one area local ·government area, it is not appropriate for local government authorities to be expected to assume the monitoring responsibility. To enable this State responsibility to be met to the extent required, the NSW EPA needs to be adequately resourced to deliver the monitoring regime.

Point (f) Opportunities to incorporate future technological advances into an operating facility

Whilst SSROC supports initiatives that can further recover electricity or heat and contribute to energy security from an existing plant we do not have the technical or engineering expertise to comment on the incorporation of new technologies into an existing plant.

5 Elton Consulting for SSROC (Dec. 2015) "Community attitudes towards, and understanding of Resource Recovery in the SSROC region, with a focus on recovering energy from waste". Social Research study report

Southern Sydney Regional Organisation of Councils Level?, 1 Lawson Square (SSROC) Inc. REDFERN NSW 2016

PO Box 3138, REDFERN LPO NSW2016

T 02 8396 3800 F 02 8396 3816 E ssroc@ssroc.nsw.gov.au

Point (g) (i) Risks of future monopolisation in markets Several member Councils have expressed concern about the implications for the provision (and cost) of services in the future and the risks of potential future monopolisation in markets. Their concerns have been expressed particularly regarding recycling services should the international markets for recyclables fall, or implications of one of the major service providers choosing to stop processing certain material types.

(ii) Potential to enable a circular economy

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SSROC supports the concept of the circular economy and the NSW Government's interest in opportunities to extend the life of manufactured items by reuse and then by reprocessing. Regarding the role of recovering energy from waste in the circular economy, the European Commission's 2017 report 6 on the role of energy from waste in the circular economy concludes that "waste-to-energy processes can play a role in the transition to a circular economy provided that the EU waste hierarchy is used as a guiding principle and that choices made do not prevent higher levels of prevention, reuse and recycling".

Whilst recovery of energy from residual waste is an important part of a circular economy, more broadly on this topic SSROC would also like to see investment by the NSW Government in facilitating the growth of the waste avoidance and reuse sectors so that higher resource recovery objectives in the waste hierarchy can be realised.

In conclusion, significant residential developments in Growth Centres and Growth Corridors will not only generate a significant increase in waste generation, but will create opportunities for new technologies to be deployed (such as automated vacuum waste collection systems for multi-unit dwellings) and potentially smaller local recovery plants; provided that the planning and approvals frameworks can enable them to be installed.

Growth along the lines of that outlined in the "Plan for Growing Sydney" and "Towards our Greater Sydney 2036," coupled with strategic investment could support a strategic move by Government, industry and society towards a circular economy. With landfilling becoming a less favoured option for the community, new technologies for treating and disposing of waste and investing in new uses and markets for the outputs are essential.

SSROC welcomes further discussion about this submission at any point. Please feel free to contact me or Strategic Coordinator Waste Avoidance and Resource Recovery on ssroc@ssroc. nsw .gov.au

Yours faithfully,

General Manager Southern Sydney Regional Organisation of Councils

CC: SSROC Waste Management Group

Attachment: Executive Summary "Community attitudes towards, and understanding of resource recovery in the SSROC region, with a

focus on recovering Energy from Waste" (2015) Elton Consulting for SSROC.

6 http:/lec.europa.eu/environment/wastelwaste-to-energy.pdf

Southern Sydney Regional Organisation of Councils Level 7, 1 Lawson Square (SSROC) Inc. REDFERN NSW 2016

PO Box 3138, REDFERN LPO NSW2016

T 02 8396 3800 F 02 8396 3816 E ssroc@ssroc.nsw.gov.au