Department of Sustainability, Environment, Water, Population and Communities Annual Report 2011–12



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Evaluation and conclusions

Review of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and Regulations


The department is undertaking a review of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and Regulations to ensure that Australia effectively and efficiently meets its international obligations and national policy objectives for managing hazardous substances, hazardous wastes and other wastes.

The review has been initiated for a number of reasons. More than a decade has passed since the last review of the Act, during which time there have been significant changes to Australia’s international obligations, domestic legislation and national waste policy objectives. The review also provides an opportunity to consider industry experience with the operation of the Act and regulations since they were last reviewed and whether there are opportunities to reduce regulatory burdens on industry.

An issues paper was released by the department on 14 June 2012 for public consultation to seek feedback from stakeholders on issues that should be addressed in the review. Following consideration of stakeholder feedback the department will prepare a consultation paper, anticipated for release in the second half of 2012, to undertake a more detailed discussion and analysis of issues.

Case Study 1: National Television and Computer Recycling Scheme

A key commitment of the Australian Government under Strategy 1 of the National Waste Policy was to establish a national framework, underpinned by Commonwealth legislation, to support voluntary, co-regulatory and mandatory product stewardship schemes.


Electronic and electrical waste, including televisions and computers, is growing three times faster than any other type of waste. The high rate of these products going to landfill poses a number of problems for Australia, including loss of valuable materials that can be recovered (such as glass, plastics and precious metals) and risks to human health and the environment because of the hazardous substances that these products contain (such as lead, mercury and zinc). Environment ministers agreed that end-of-life televisions and computers would be the first products to be regulated under the co-regulatory provisions of the Product Stewardship Act 2011.

The Product Stewardship (Televisions and Computers) Regulations 2011 commenced on 8November 2011 to support the National Television and Computer Recycling Scheme (the scheme). The scheme is funded and run by industry.

The co-regulatory approach to product stewardship involves a combination of government regulation and industry action. Governments set the outcomes and requirements to be met, while industry has flexibility in determining how those outcomes and requirements are achieved. Under the scheme, importers and manufacturers of televisions, computers and computer products are required to be members of an approved co-regulatory arrangement.

As of 26 April 2012 three co-regulatory arrangements were approved by the minister. The administrators of these arrangements are:



  • DHL Supply Chain, a global logistics company

  • Australian & New Zealand Recycling Platform Limited, an industry body representing some of the major computer and television brands

  • E-cycle Solutions Pty Ltd, an experienced Australian logistics company operating in partnership with major television retailers.

These arrangements may offer membership to television and computer manufacturers and importers, and collect and recycle products on their behalf. As at 9 July 2012, importers responsible for 93 per cent of all televisions imported, and 87 per cent of computers, printers and computer products imported in 2010–11, became members of an approved co-regulatory arrangement.

An annual scheme recycling target has been set as a percentage of the television and computer waste estimated to be generated in a given year. This progressively increases from 30percent in the first target year 2012–13 to 80 per cent in 2021–22.

A material recovery target also applies each year, commencing from the 2014–15 financial year. This requires that, following recycling, the proportion of products sent for further processing to obtain useable materials is a minimum of 90 per cent.

Each co-regulatory arrangement must also provide reasonable access to collection services to metropolitan, regional and remote areas of Australia by the end of 2012. This arrangement is expected to result in around 98 per cent of the population having reasonable access to collection services. The first collection services commenced in mid 2012, for the progressive delivery of access to services by the end of 2013.

The department will commence its compliance activities from the first target year to ensure the outcomes and requirements of the regulations are met. Substantial civil penalties can be imposed if an importer or manufacturer fails to become a member of an approved co-regulatory arrangement. The minister is able to monitor the effectiveness of co-regulatory arrangements and assess the overall performance of the scheme through the provision of an audited annual report by each co-regulatory arrangement on their activities.

Case Study 2: Enforcement of the Fuel Quality Standards Act 2000

The quality of fuel in Australia is regulated by the Fuel Quality Standards Act 2000 and the Fuel Quality Regulations 2001. This legislation places an obligation on the fuel industry, including fuel suppliers, to supply fuels that meet strict environmental requirements under national fuel quality standards and fuel quality information standards.


Four fuel standards exist under the Fuel Quality Standards Act 2000, including the Fuel Standard (Automotive Diesel) Determination 2001, which came into force on 1 January 2002.

The department undertakes intelligence, monitoring, compliance and enforcement activities to monitor the quality of fuel in Australia to ensure that it meets the standards set out under the Fuel Quality Standards Act 2000. Authorised fuel inspectors undertake fuel sampling nationally, at all stages of the fuel supply chain. Samples are regularly taken from importers, refineries, distributors and service station forecourts.

Photo of a Commonwealth Fuel Quality Inspector taking fuel samples for testing. (Michelle Mc Aulay)

In October 2011, fuel inspectors conducted a site visit at HML Investments Pty Ltd (trading as Fuelways Express) in Mitcham, Victoria, which was found to be supplying non-compliant diesel.

A site is determined to be non-compliant with the Fuel Quality Standards Act 2000 where laboratory tests indicate a fuel determination has not been met, fuel quality information is not displayed or documents are not kept. The Fuel Standard (Automotive Diesel) Determination 2001 sets the requirements for diesel, including that it must not contain more than a specified amount of certain substances such as sulfur, and must not have a distillation temperature above 360°C. Testing of the diesel sample taken at the HML Investments Pty Ltd site revealed a sulfur level greater than 10mg/kg (milligrams per kilogram), a distillation temperature above 360°C, a flashpoint level lower than 61.5°C and a filter-blocking tendency greater than 2.0.

Supply of non-compliant fuel is an offence under the Fuel Quality Standards Act 2000. In all cases, a breach of the Fuel Quality Standards Act 2000 will result in a warning letter being issued to the regulated entity requesting the fuel be removed from sale, fuel quality information is displayed or documentation is maintained.

The department may seek an interim or permanent injunction from the Federal Court in some cases to ensure that non-compliant fuel is not further supplied.

The department provided a written warning and additional education material to HML Investments Pty Ltd. However, a further site visit revealed the site was continuing to sell the non-compliant diesel.

The department sought a Federal Court injunction and the court ordered that HML Investments Pty Ltd only supply diesel which meets the Fuel Standard (Automotive Diesel) Determination 2001. The injunction is in place for two years and the respondent agreed to pay costs of $16,000 to the department.

Breaches of the Fuel Quality Standards Act 2000 may also result in the department negotiating an enforceable undertaking with the regulated entity, issue of an infringement notice or civil or criminal prosecution.


Results for Deliverables and Key Performance Indicators

Program 2.1: Management of hazardous wastes, substances and pollutants


Deliverables

2011–12 Results

National Waste Policy:

Progressed. The Product Stewardship Act 2011 commenced on 8 August 2011, providing a national legislative framework for product stewardship.
A product notice for packaging (and subsets of packaging, such as consumer packaging and beverage packaging) was published on the department’s website on 19 December 2011 for consideration for some form of accreditation or regulation under the Act.
Nominations for appointments to the Product Stewardship Advisory Group were invited on the department’s website by expressions of interest, closing on 27 July 2012.
The department released a consultation paper on the Proposed Model for Accreditation of Voluntary Product Stewardship Arrangements under the voluntary provisions of the Act on 28 February 2012 for public comment and feedback. A total of 20 submissions were received and 42 parties attended public meetings. Feedback gained during the consultation process will inform the development of a Ministerial Determination setting out the detailed accreditation requirements and procedures.

Progress implementation of the product stewardship legislative framework.

Progress the implementation of the National Television and Computer Product Stewardship Scheme.

Progressed. The Product Stewardship (Televisions and Computers) Regulations 2011, to support the National Television and Computer Recycling Scheme, came into effect on 8 November 2011.
The minister approved DHL Supply Chain, Australian & New Zealand Recycling Platform Limited, and E-cycle Solutions Pty Ltd as administrators to provide services under the scheme, and importers representing the majority of television and computer imports have fulfilled their obligation to join a provider. The first collection services commenced in mid-2012 and the first recycling target applies from 2012–13.

Complete the annual report on the National Waste Policy.

Completed. The department completed the National Waste Policy Implementation Report 2011 on progress implementing the National Waste Policy from late 2010 to the end of 2011, released on 18 April 2012.

Administer national legislation covering fuel quality standards, the disposal and re-use of used petroleum-based oil, the export, import and transit of hazardous waste and the import, manufacture, use and destruction of ozone-depleting substances and synthetic greenhouse gases.

Ongoing. The department administered national legislation covering:

  • fuel quality standards for petrol, automotive diesel, biodiesel and liquefied petroleum gas (autogas)

  • an economic incentives package for the disposal and re-use of used petroleum-based oil under the Product Stewardship for Oil program

  • hazardous waste through regulation of the export, import, and transit of hazardous waste to ensure that transboundary movements are managed in an environmentally sound manner

  • controls on the import, export, manufacture, acquisition, use, storage, handling and disposal of ozone-depleting substances and synthetic greenhouse gases.

Meet Australia’s obligations under international agreements on waste and hazardous substances, hazardous chemicals, synthetic greenhouses gases, and ozone-depleting substances.

Ongoing. The department fulfilled its international obligations for:

  • hazardous waste, through regulation of the export, import, and transit of hazardous waste to ensure that transboundary movements are managed in an environmentally sound manner

  • hazardous chemicals, by administering the Prior Informed Consent procedure under the Rotterdam Convention for chemicals in international trade and monitoring the levels of persistent organic pollutants in the environment as part of the performance evaluation for the Stockholm Convention

  • ozone-depleting substances and synthetic greenhouse gases, through import licence and quota controls.

Provide leadership in the development of national air-pollutant emission-reduction strategies and the evidence base to support these strategies.

Ongoing. The department contributed to the development of the National Plan for Clean Air to introduce a strategic national approach for air quality that integrates air quality standard setting and actions to reduce pollution. It will also bring together a strategy for responding to the review of the National Environment Protection (Ambient Air Quality) Measure.
The department provided advice to the Standing Council on Environment and Water and its subcommittees and led 2 emissions-reductions projects on non-road spark ignition engines and wood heaters.

Lead work with the states and territories to establish an environmental standards-setting body under Council of Australian Governments reforms for chemicals relating to better environmental management.

Ongoing. Consultants were engaged and commenced development of a Consultation Regulation Impact Statement (RIS) in November 2011 on options to implement a standards-setting body and national decision-making framework for managing the impacts of chemicals on the environment. Public consultation on the Consultation RIS is anticipated to occur in the second half of 2012. This work is being progressed in conjunction with states and territories and informed by bilateral consultations with key stakeholders.

Provide advice to the statutory regulators on the risk and environmental impacts of the trial and release of genetically modified organisms, nanomaterials, chemicals and biological products.

Achieved. Risk assessments and risk management recommendations to reduce environmental impacts provided within statutory timeframes for 100 % of applications received for genetically modified organisms, and for 90% of applications received for chemical substances.

Administer the National Pollutant Inventory.

Administered. On 30 March 2012 the annual update of National Pollutant Inventory facility data was published. This provides data from 4295 industry facilities on emissions of 85 substances and waste transfers of 69 substances. Six technical manuals that guide industry reporting were updated.

Develop and administer regulation amendments to ozone and synthetic gas legislation and establish administrative arrangements:

  • to apply an equivalent carbon price to import and manufacture of synthetic greenhouse gases, as part of the Clean Energy Future Plan

  • for the destruction of synthetic greenhouse gases and ozone-depleting substances.

Achieved. As part of delivering the Australian Government’s Clean Energy Future Plan, the department supported the amendment of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and related legislation to place an equivalent carbon price on synthetic greenhouse gases and equipment containing these gases from 1 July 2012.
Commenced design of a new destruction regime for synthetic greenhouse gases and ozone-depleting substances from July 2013 under the Clean Energy Future Plan.




Key Performance Indicators

2011–12 Results

Report annually on the implementation of the National Waste Policy.

Completed. The department completed the National Waste Policy Implementation Report 2011 on progress implementing the National Waste Policy from late 2010 to the end of 2011, released on 18 April 2012.

Publish the National Pollutant Inventory annually by 31March2012.

Achieved. The National Pollutant Inventory annual update of facility data was published on 30March 2012. The inventory now includes 13 years of data.

Finalise implementation of the national product stewardship legislative framework.

Ongoing. The National Waste Policy, agreed by all Australian environment ministers in November 2009 and endorsed by COAG in October2010, sets 6 key directions and identifies 16 priority strategies for Australia’s waste management and resource recovery from 2010 to 2020.
Environment ministers agreed that priority be given to expediting product stewardship schemes for computers and televisions, tyres, and mercury-containing lamps, in pursuing work towards a national framework for product stewardship under Strategy 1.

Finalise implementation of the National Television and Computer Product Stewardship Scheme.

Achieved. The Product Stewardship (Televisions and Computers) Regulations 2011, to support a National Television and Computer Recycling Scheme, came into effect on 8 November 2011.
The Minister approved DHL Supply Chain, Australian & New Zealand Recycling Platform Limited, and E-cycle Solutions Pty Ltd as administrators under the scheme, and importers representing the majority of television and computer imports have fulfilled their obligation to join an arrangement. The first collection services commenced in mid 2012 and the first recycling target applies from 2012–13.

Finalise regulation amendments and administrative arrangements to apply an equivalent carbon price to synthetic greenhouse gases from 1 July 2012.

Achieved. As part of delivering the Australian Government’s Clean Energy Future Plan, the department supported the amendment of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and related legislation to place an equivalent carbon price on synthetic greenhouse gases and equipment containing these gases, manufactured in, or imported into, Australia from 1 July 2012.

Finalise regulation amendments and administrative arrangements for the destruction of synthetic greenhouse gases and ozone- depleting substances by 1 July 2013.

Design of the destruction scheme commenced in 2011–12.




Key Performance Indicators

2011–12 Budget Target

2011–12 Results

Used-oil recovered for re-use over a three-year average under the Product Stewardship (Oil) Act 2000 [megalitres].

>250

269

Fuel samples tested as part of the compliance program under the Fuel Quality Standards Act 2000 [#].

3000

2427

Assessments of chemical and genetically modified organisms undertaken [#].

Approx 250

Completed risk assessments of environmental impact for 320 chemicals and five genetically modified organisms.

Licences and permits to control import and export of ozone-depleting substances and synthetic greenhouse gases issued within statutory timeframes [%].

100

100

Program 2.2 was transferred to the Department of Families, Housing, Community Services and Indigenous Affairs and the Department of the Treasury on 14 December 2011.

Program 2.3: Sustainable communities


Deliverables

2011–12 Results

Design and commence implementation of the Suburban Jobs program that will support local and state governments to plan and provide for increased employment opportunities outside the CBDs of major cities.

Stakeholders, including state and local governments, were effectively engaged to design the Suburban Jobs program guidelines. A high degree of local and state government interest in the program was demonstrated through applications being received from all eligible states.

Develop a set of headline sustainability indicators for Australia to inform decision making and planning at national and community levels and commence regular reporting against these indicators.

The department undertook consultation with key stakeholders and experts to develop a set of headline sustainability indicators for Australia. The first public report against the indicators will be released in 2012–13.

Commence development of an online directory of sustainability information linking to existing sustainability data and reports by Australian Government agencies.

Initial scoping and conceptual work for an online directory has commenced and will continue in 2012–13.




Key Performance Indicators

2011–12 Results

Program guidelines completed for the Suburban Jobs program and expressions of interest received from state and local governments.

Suburban Jobs program guidelines were publicly released on 7 December 2011 and the program was opened for funding applications. The application period closed on 17 February 2012. 31 applications for funding were received. The assessment of applications was completed.

Improved access to information about Australia’s sustainability, as measured by the number of people accessing this information.

The department made significant progress in developing a set of Sustainability Indicators for Australia, including consultation with a broad range of stakeholders and experts. The Sustainability Indicators are expected to be finalised and released in the second half of 2012–13.


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