1. Waste management, recycling and resource efficiency update
MAV Environment Conference 2014
Stan Krpan
CEO
Sustainability Victoria
Intro: Congratulate MAV and local government.
There is some outstanding leadership and innovation being shown
Networking is so important to environmental achievements – LG has been showing the way
SV is Vic Govt program delivery agency for promoting and facilitating env sustainability
Today I will focus on 3 things:
An update on SV’s programs
Important reforms in the area of WRR
What’s next
Waste management, recycling and resource efficiency update

2. Resource Integrated Waste Efficiency Management
In delivering on government agenda we focus on IWM and RE. Why
Stats on RE from 2XE conference
IWM challenge – waste generation is growing from 12mT to 25 mT by 2030
Waste per GSP and
Huge infrastructure gap even at current increases in recycling
Both these tell us there are huge opportunities in managing our resources more effectively

3. LGAS - Diversion rate, Victoria 2000-01 to 2011–12
Waste generation and diversion
Total Waste Generation (per capita)
LGAS - Diversion rate, Victoria to 2011–12
TWG (kerbside garbage, recyclables & green waste) steadily increasing since benchmark of
Increased by 37% from base year
TWG per capita increased by 17% from base year – so increase is less than TWG increase in tonnes of 37%
Pop has increased by 17% over same period
Diversion rate steadily increasing since benchmark of
Only fair way to compare councils
Light weight recyclables????
Drivers to improving diversion rate not necessarily behaviour change but rather influenced more by infrastructure change – i.e. introduction of best practice bin systems
Big jump from to because most councils introduced best practice recyclables bins, i.e. 120L commingled weekly or 240L commingled fortnightly bins – Worksafe legislation of “no lift” introduced then.
Drop-off added to show impact on diversion rate
Rural council diversion rate improves when drop-off included because many rely on drop-off rather than kerbside recycling which may be limited to major townships.

4. SV’s role

5. SV’s review and strategic framework
Our strategic framework
The framework outlines our two priority areas of integrated waste management and resource efficiency
These were derived from SV’s review in 2011
We also identified four areas we need to build our capability as an organisation to support delivery
We will continue to administer the Sustainability Fund on behalf of the Minister and the Sustainability Fund Board.
We have now made in roads in all these areas and implemented all of the recommendations of the SV review

6. SV’s Journey Victorian Auditor General’s Office
SV Review
SV2015
Getting Full Value
Ministerial Advisory Committee
Before:
SV review – doing too much, lacking in focus
Need for reform (VAGO) lost focus on core work of WRR planning and strategy
Review:
SV2015 – focus on Resource Efficiency, Integrated Waste Management, building capabilities
Delivering on SV2015
Programs showing significant outcomes – delivering increased resource recovery infrastructure capacity, SRSB saving businesses materials and energy and inxreased profitability, households saving money and energy through smarter choice.
GFV
Released in April Government’s vision for waste and resource recovery. Essentially seeing this as an economic as well as environmental issue. $2b, essential service, need for integrated planning and consistent market signals for investor certainty. Extracting value by market driven pull not push.
Future
Ministerial Advisory Council on Waste and Resource Recovery
Resource Recovery reform - Statewide WRR infrastructure planning
Market development
Investment attraction
Procurement support
Education Strategy
Support to waste and resource recovery groups
Statewide data collection and dissemination

7. SV’s priorities More than just waste and recycling
End to end integrated system. Waste avoidance is important, materials and resource efficiency, market demand, infrastructure and processing capacity

8. Planning for Victoria’s infrastructure needs
For the first time SV has undertaken an extensive planning process for waste and resource recovery infrastructure
Essentially a stocktake of current capacity across the state, projecting the current volumes and demand over 30 years with population and economic growth to look at the infrastructure needs and what existing infrastructure requires protection
600 pieces of infrastructure, great cooperation from LGAs, RWMGs and industry with no additional regulation
Key vulnerabilities in landfill, SE Melbourne, key single point dependencies for certain materials
Plan moving to hubs and spokes and recognising the value of closing smaller vulnerable landfills, while recognising regional needs and differences

9. Consultation and feedback
Statewide consultation program: 360 stakeholders, 50 formal submissions
16 workshops around the state; 350 attendees
50 written submissions received
14 key stakeholders interviewed (potential investors)
Feedback positive with general acceptance of the approach taken
Key themes:
Data: SWRRIP valuable source, more and better data needed
Planning: SWRRIP important to provide statewide guidance, greater consistency across government and to align land use and transport planning with waste and resource recovery planning
Material Aggregation: Hubs and spokes model logical, some concerns from rural Victoria re economies of scale
Markets: Role for government in developing markets (ie market pull) – further support needed to develop markets for organics
Industry Investment: Industry willing to invest, discouraged by process and time lags (see a role here for SV to assist) – super funds looking to projects of >$50m and preferably $100m+ to invest
Education: Need for statewide education strategy to support SWRRIP:
for waste and resource recovery education and
to educate community on need for facilities
Next steps:
Address feedback
Update data
Cross border flows
Roles and responsibilities
Links to Regional WRRIPs
Industry guidance
Other strategies
Economic assessment of options
Transport impacts analysis
Develop action plan and monitoring and evaluation plan

10. Total Victorian Government funding $34.67 million
Initiative
Funding
Paid out/contracted
Regional Organics Support Package &
Regional Waste Management Group Support Package
$5.5m
$2.79m
Driving investment for New Recycling (DINR) &
Resource Recovery Infrastructure Program
$11.5m
$4.4m
Melbourne Metropolitan Organics Plan
$3.3m
$1.1m
Building Victoria's Organics Recovery Fund
$500K
Transition Support to Improve Rural Landfill Infrastructure
$3.87m
$3.7m
Smarter Resources, Smarter Business
$10m
$2.97m
More than 60% spent in regional areas

11. SV’s 2012-13 funding spend Victoria Wide $1.8 million 21 projects
Loddon Mallee
$1.2 million
19 projects
Hume
$2.7 million
25 projects
Grampians
$960,000
15 projects
The spread of Sustainability Victoria’s funding contracts is 61% regional, 25% metro and 14% across the state
Gippsland
$1 million
18 projects
Barwon South West
$1.8 million
20 projects
Metro
$3.2 million
72 projects

12. Polymer Processors - Mordialloc

13. Transfer station upgrades and landfill
Local Government – ongoing engagement to secure future partnerships, particularly in the economic development space
Engaging closely with LG – will continue to do so
Building local economies, sharing knowledge and learnings
Making case studies available, promoting successes
What are the two packages?
The Rural and Regional Landfill Support Package is a $3.95 million funding package to support the closure of landfills, which are financially or environmentally unviable, and their replacement with new transfer stations with resource recovery facilities.
The Regional Transfer Station Upgrade Program is a $2.9 million funding package to support the upgrading of existing transfer stations and resource recovery centres to improve the resource recovery at those sites and increase their efficiency.
A total of $6.85m to support development of waste infrastructure in rural and regional Victoria.
Who can apply?
The funds are open to local government operators of landfills and transfer stations in rural and regional Victoria.
Does this mean all landfills will close?
No, only some landfills will close, particularly those that are financially or environmentally unviable for local governments to run. The residual waste which cannot be recovered will be transferred to a more environmentally and financially sustainable landfill. Communities will continue to have access to facilities to drop off their waste and recyclables; these won’t always be located at a landfill.
What are particular landfills flagged to close?
The Statewide Waste and Resource Recovery Infrastructure Plan (SWRRIP) identifies 21 licensed and unlicensed landfills expected to close in the short term. It will be entirely up to local governments to decide if they wish to close a facility. The government’s funding package will help to support local councils install infrastructure to handle the waste once the landfill is closed.
What will go in the place of landfills that close?
A transfer station will be built with associated resource recovery infrastructure to improve the recycling of materials, which may have originally gone to landfill. The transfer station will then transfer waste to a more environmentally and financially sustainable landfill.
What sort of activities will be included in the Regional Transfer Station Upgrade Program?
Improved site layout to encourage resource recovery (e.g. drop of recyclables before patrons get to the landfill bin) and better visibility and efficiencies for the site operator.
Buildings or sheds to preserve the quality of recyclable materials.
Increased capacity at transfer stations for increasing patronage where existing infrastructure is at or near capacity.
Resale shop to allow for resale of recovered hard waste items.
New/upgraded bin receptacles to replace inefficient, damaged or uncovered skips and bins.
Hardstand areas to allow for storage of materials such as green organics, concrete and bricks and timber to best practice standards.
Compactors to improve transport efficiencies to end markets for recycling.

14. Smarter Resources Smarter Business
“Sustainability is not a fad nor a fringe issue. It’s a way for business to lower costs and be resilient against long- term challenges like climate change and rising energy and resource costs. .. Victorian businesses need to do “more from less”.
In essence, tomorrow starts today. We must act now to ensure businesses are competitive in the future.” (Industry Sustainability Working Committee 2014)
The Smarter Resources Smarter Business is a $14 m business program, delivered by Sustainability Victoria.
There are three components: “energy and materials”, “energy efficient office buildings”, and recycling. Across the program we are helping business reduce costs and environmental impacts.
$14 million business program
Helping business reduce costs and environmental impacts
The Energy and Materials program (the “orange program”) incentivises resource efficiency, meaning energy efficiency and materials efficiency. We offer support for businesses, to protect against rising costs and to use energy and materials more efficiently.
For the energy and materials program, the target is medium sized businesses, also opportunity for small businesses with high opportunities for resource efficiency to be involved.
Key stats for each component of the program:
SRSB – Energy & Materials
In the first two rounds of funding, we awarded 76 grants totalling more than $2 million to help Vic businesses.
These busiensses expect to save a combined $2.4 million a year in their energy and material use.
In round 2, the grants are expected to leverage $2.21 of business investment for every $1 of Vic Gov funding
SRSB – Building Business Capability Phase 2 (not yet announced as at April 28)
Eight successful projects will exceed the target of 370 small and medium enterprises (SMEs) and will reach over 700 businesses in metropolitan Melbourne and regional Victoria.
Business sectors to be targeted include manufacturing, agribusiness, hospitality and retail.
The value of the grants funded as part of Phase 2 is $394,012 with activities planned to commence in May 2014 ranging in duration of up to 12 months.
Participants of the projects funded under Phase 2 of the Building Business Capability grants program will benefit from offerings such as workshops, master classes, site assessments, mentoring, coaching and the development of case studies for wider promotion in the form of web, print and video.
SRSB – EEOB - The Energy Efficient Office Buildings program is expected to save $1.6 million in energy costs per year. So far we have 19 approved buildings taking part.

15. Dennison Food Manufacturing
Energy efficiency:
Upgrades or replacement of refrigeration equipment
Reduction of compressed air leakage
Materials efficiency:
Control systems
Improved product design that reduces materials use
ACHIEVEMENTS
Yield improvement of 0.5%
12% reduction in waste
$100,000 plus p.a. savings

16. Smarter Resources Smarter Business – Energy Efficient Office Buildings
The commercial building sector is a significant consumer of energy and producer of greenhouse gas emissions. In fact in Victoria, commercial buildings account for nearly 10% of energy consumption and mid-tier office buildings – those defined by the Property Council of Australia as B,C,D grade  – are estimated to emit more than 1.3 million tonnes of CO2-e per annum.
The Next Wave: Retrofitting Victoria’s Office Buildings report, commissioned by SV and prepared by Davis Langdon, examined non-premium building stock in metropolitan Melbourne and regional Victoria, providing a snapshot of Victoria’s current office building market.
Existing mid-tier office buildings constitute more than 50% of Victoria’s office market by floor area and more than 80% of the total number of office buildings.  The report also found that existing market-based incentive programs for energy efficiency had not had a significant impact in this area.
The Energy Efficient Office Buildings program provides funding for building owners to carry out an Opportunities Analysis and building tuning and monitoring activities.
By making some simple adjustments to building system controls & operations, building owners can expect to save an average of $10,000 per year in energy costs (based on an average sized office of 2,500m2)
19 buildings have been approved to do Stage 1 - Opportunities Analysis (numbers current as of 16 April).
Applications to the program are currently open. Download an application form at
500 Bourke Street
500 Collins Street

17. Other SV program outcomes
$815K for 22 Public Place Recycling projects in 2013
Local Litter Measurement Toolkit + training
Best Practice Guide for Managing Litter and Illegal Dumping at Clothing Bins
Litter Prevention Toolkit 
KABV programs – Tidy Towns and Sustainable Cities Awards, Stationeers and Adopt a Roadside volunteer programs
Organics
We’ve supported the recycled organic industry to identify markets for their products, helped councils find better, cheaper ways to deliver kerbside organic collections
Detox
We now conduct 31 annual mobile collections for hazardous household chemicals
In 2013, the program collected more than 1000 tonnes of waste from almost 7000 Vic households

18. Waste and resource recovery governance
reform

19. Waste and resource recovery governance reform
Statewide waste and resource recovery planning framework
Statewide market development strategy
Statewide investment strategy (including infrastructure funding)
Joint procurement and business support for WRRGs and councils
Statewide data management governance framework
Statewide business and community education strategy

20. What’s next? Victorian Organics Strategy
Support for transfer station upgrades
Support for landfill closures/new transfer stations
Household recycling
VOS – currently compiling feedback from engagement sessions held throughout April, will begin drafting strategy in May. The draft will be released for consultation later in the year (June at this stage)
RRLSP (landfill closures)
May  Announce targeted funding recipients (East Gippsland and Glenelg – they are in yo
July 2014 – officially open new facilities built with targeted funds
September 2014 – announce open funding round
February 2015 – announce successful recipients of open funding
RRTSUP (transfer station upgrades)
July 2014 – Announce successful recipients of open funding
Household recycling (GIROBN)
Household recycling education
SV will be providing a program of support for Local Government to assist in the delivery of statewide messages, including organics contamination, and local campaigns and education programs
Also underway is strategic communications planning to set the future longer-term direction for the GIROBN campaign. This will be informed by relevant research to ensure targeted messages, previous campaign evaluation, government policy and stakeholder feedback

21. Questions?