WHAT S WRONG WITH SOE 2015?

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1 NSW State of Environment Report Section 7 (Waste and Recycling) Fact or Fiction? Dave West April 2016 Contact or dave.west@boomerangalliance.org.au for more information INTRODUCTION This short analysis is the first of a series of reviews of the claims regarding the waste and recycling performance by the major Australian states. NSW has been prioritised in response to the claims made regarding waste, found in Section 7 of the NSW EPA s recently published State of the Environment Report (SoE 2015). In recent years, the NSW EPA has begun making a number of claims regarding the amount of waste and litter found in NSW and the efforts to recover and recycle that material. Increasingly, Boomerang Alliance has been surprised to find these claims are consistently higher than recent national and state trends while also at odds with publicly available data. While acknowledging that there are different sources of information available, Boomerang Alliance has criticised the NSW EPA (and other government and industry agencies) on use of information to claim success in combatting waste that the community and industry do not support. By using optimistic estimates and exaggerated claims to report on progress, future consultants and governments assume the data is the established norm which in turn misinforms policy development and undermines the case for action. Overall we believe there is a clear trend where the NSW EPA: - Redefines recycling to include a number of lower order resource recovery operations - consequently exaggerating performance and distorting key aspects of NSW waste management; - Adjusts the findings of published third party reports to include other unspecified activities which dramatically exaggerates the rate of recycling in NSW; - Selectively omits reference to aspects of the NSW waste stream (which are known to the NSW EPA) which highlight regulatory failure and undermine the waste hierarchy. This has reached the point where, in the Boomerang Alliance s opinion, the performance levels described in the 2015 SoE can be regarded as little more than a fiction. In particular, the focus on diversion from landfill is a crude measure and obscures important trends in recycling (i.e. whether the recovered material is being used for maximum benefit rather than a use that is better than landfill but still sub-optimal). Key problems in the report include: - Understating the amount of waste generated in (the SoE 2015 reporting period) by over 1.3million tonnes; - Redefining approx. 947,000 tonnes of material recovered and used for waste to energy; or permits to apply waste to land; and down cycling waste for clean fill and soil treatment - as recycling; - Omitting over 5million tonnes of waste generation such as the disposal of fly ash (coal dust from energy generation) from calculations; - Ignoring NSW local government reporting on the amount of materials recycled via the Municipal Solid Waste stream for in favour of their own calculations which sees the amount of recycling activity via this stream increased from 1.61million tonnes to 2.8million tonnes with no explanation; - Using poor source information and ignoring key aspects of the litter stream to dramatically understate the amount of litter found in NSW. As a result, we believe that rather than recycling 63% of all waste in NSW as the NSW EPA claims - a more accurate figure would be approx. 34% of genuine recycling; and that the amount of litter found in NSW is some 127% greater than stated.

2 2 It is important to note that other states are also using some of the inappropriate approaches described in this analysis and it is clear their recycling rates have also been exaggerated. We are not claiming that many of the other programs of the NSW EPA are without merit and we congratulate government on its efforts to reduce waste to landfill. However, it is also clear that rather than focus on harnessing the highest order of resource recovery activities along the waste hierarchy, the NSW EPA has focussed on simply driving down landfill diversion often pursuing poor outcomes that shift tonnes of waste out of sight over the longer term solutions. It is also clear that the gross results reported by the NSW EPA obscure major problems within the NSW waste stream, leading to poor policy implementation. The data can potentially undermine the benefits of regulatory investigations (like the current NSW Container Deposits Scheme analysis) by causing the problem to be understated in cost benefit analysis (CBA) and beneficial measures being badly over costed. A new direction is needed. The NSW EPA should immediately take action to produce waste, recycling and litter estimates that have improved accuracy and follow the waste hierarchy - to better inform the public about the waste situation in an update of the SoE. Boomerang Alliance is willing to further test its analysis and assist with this process. WHAT S WRONG WITH SOE 2015? While our review does not attempt to completely re-calculate Section 7 of SoE 2015, it is apparent that almost every aspect of the report is exaggerated. While it is important to note that it is evident that the amount of waste generated in NSW could be some 61% more than the NSW EPA claims - the exclusion of fly ash and mining waste is a problem in every Australian jurisdiction. The other omissions (for example - transport of waste interstate, parts of the state with little or no waste and recycling services, failure to include unlawful waste disposal etc.) are adversely influencing policy decisions and regulatory investigations. A chart comparing our estimate of the actual amount of waste generated in NSW compared with that claimed by the NSW EPA can be found below. FIG 1

3 3 1. Stockpiling. While the EPA has started addressing the monitoring and levying of levels of stockpiles sitting at waste and recycling facilities and recognises they cannot be classified as recycled waste this does not appear to be the case with the SOE Report. Conservatively we can guestimate that currently at least 600,000 tonnes of recovered waste has no market available or is awaiting the development of markets. This estimate would have been much higher in (the reporting term for SoE 2015). Stockpiles where the end use remains uncertain have a double whammy effect on waste and recycling estimates both adding 600,000 tonnes to the waste stream and reducing reported recycling by a similar amount. Stockpiling of waste is a bad practice; increasing the risk of fire and vermin, can contaminate land, and generate litter that escapes the facility. Information Source - discussions with leading waste organisations and physical inspection of a handful of premises. NB: Our estimate of 600,000 tonnes p.a. stockpiled represents just 5.6% of total claimed recycling activity (or <3 weeks of the annual throughput). The EPA now issues an authorised stockpiling amount for each facility, but did not approximate estimates in SoE 2015 and despite repeated requests, from industry, refuses to publish such data. 2. Interstate Dumping. Supposedly closed down last year under the proximity principle and improved tracking, this dubious practice of transporting waste interstate continues unabated. Intelligence from waste industry operators identifies as much as 1.5million tonnes being transported to Qld and the NT via rail and shipping (though some trucking also continues). In we estimate that around 600,000 tonnes was shipped interstate. NB: this practice has become so bad that at least 1 landfill waste facility is reported to be actually excavating its waste, claiming a rebate of $133/tonne from the NSW Waste Levy (when they paid a lower levy when disposed of years ago) and then shipping the waste to a landfill they control in Qld (making a profit of $60 a tonne). The unnecessary transport of waste over long distances increases the environmental footprint of the waste and is generally sent to an older, lower standard of landfill increasing the likelihood of leachate contaminating the environment. Information Source discussion with leading waste organisations in NSW and Qld tested against the known volumes of 4 companies engaged in the practice. 3. Waste to Energy. It is common for a proportion of recovered waste that is too contaminated or financially unviable to recycle, to be used for a low order of resource recovery energy generation. In NSW this represents some 492,000 tonnes in By failing to differentiate the difference between genuine recycling and this lower order activity, the NSW EPA is reducing waste to landfill but are not capturing the full benefits of resource recovery. If the metric of diversion from landfill is paramount, this will open up NSW to be the largest waste to energy state, potentially entrenching contracts that pre-empt future higher value resource recovery. Information Source - NSW EPA annual reporting to the Commonwealth for the National Waste Report 1 4. Communities with no access to waste and recycling services. It may be hard to believe that in this day and age some 6% of homes and businesses in NSW have no access to either a waste or recycling service - yet local government reporting for shows that some 156,000 homes are not provided with a waste collection service. On the recycling front, 222,000 homes have no access to recycling. None of these homes or businesses are included in estimates of the waste and recycling in NSW. Based on the average household s waste generation across NSW these homes produce another 221,000 tonnes of waste and the businesses located in the same area are likely to generate a further 500,000 tonnes. 1 Reported as 480,000 tonnes for the 2010/11 and has been growing at a rate of 14% p.a. (2 years). Our estimate is therefore 614,000 tonnes in

4 4 Many of these properties are rural, family owned farms and remote indigenous communities, where the common practice remains to bury their waste on the property or burn the rubbish. Information Source Residential is based on NSW reporting by local government to the NSW EPA. Business waste is proportioned using the same estimates (6% without services) but has been discounted as rural businesses will generally generate less waste than larger corporates in urban centres. 5. Downcycling. Like waste to energy the NSW EPA does not recognise the difference between recycling and lower orders of resource recovery called downcycling, where the recovered material is used for a lower value purpose. While there may be many more areas where downcycling occurs in NSW, Boomerang Alliance has identified at least three aspects of the waste management stream where the materials are downcycled: a. Glass - a guestimate 35-45% of all recovered glass are fines - tiny fragments that are unable to be recycled for use in new glass manufacture (107,000 tonnes). Used for road base or fill. b. Compost & Mulch the application of compost to boost the productive value of our lands is genuine recycling by returning nutrients - however, the use of organic waste for rehabilitation of mine sites and other remediation is a valuable but lower order of activity for the use of a rich source of nutrients in NSW. The focus to develop agricultural and forestry markets for compost and mulch should remain the priority. We believe 160,000 tonnes of waste is used for these purposes. c. Application of untreated waste to land there is an increasing trend allowing certain types of recovered waste to be given a Resource Recovery Exemption which allows untreated waste to be applied to land. Exemptions are in place for material like slag, recovered rubble from construction and demolition and some organics. While likely to be much more than identified herein, Boomerang Alliance has been able to source at least 188,000 of untreated waste applied to land, comparable to an above ground landfill. Information Source - review of resource recovery exemptions in place and conversations with key waste industry figures to identify specific examples above. 6. Greenwash in plastics consumption and recycling claims. The NSW EPA (along with its peers in Victoria and the Commonwealth) continue to accept suspect information from industry on the amount of plastics that are consumed and adopt the controversial use of pre-consumer industrial recycling (which involves recovering lost resin pellets from the factory store rather than the recovery of products at the end of life). In NSW we estimate that, at least, 130,000 tonnes p.a. of imported plastics packaging is omitted from estimated volumes of waste and a further 24,000 tonnes of so called pre-consumer industrial recycling is included in estimates. After these adjustments the effective NSW plastics recycling rate is <9%. 2 Information Source - previous media in the SMH and Australian Packaging Covenant Annual reporting. 7. Increasing the level of recycling described in independent reporting without explanation. NSW Local Government reporting to the NSW EPA identifies that in it recycled 1.61million tonnes of the waste it collected. The NSW SoE Report for the same period has increased the amount of recycling in this sector by nearly 74% up to 2.8million tonnes without explanation (or even a note that it had changed the figures). While the corresponding waste to landfill number for this sector is also increased the increase is much smaller at less than 20%. This unexplained adjustment increases the household recycling rate from just 46% to over 54% and represents an unexplained recycling claim of 1.19 million tonnes per annum. Information Source - NSW Local Government Waste and Resource Recovery Data Report It is unclear how much of this is included in the SoE recycling rate

5 5 8. Litter, Illegal Dumping, Marine Debris. The figures published in SoE 2015 show no effort to add back the amount of waste that is littered, entered the marine environment or is illegally dumped and unrecovered. Conservatively, Boomerang Alliance puts these parts of the waste stream at 156,000 tonnes per annum (100,000t illegal dumping, and 56,000t litter) up from the 25,000t reported by the EPA. Further the NSW EPA in the brief description of litter provides no total estimate of litter and uses the flawed National Litter Index (NLI) methodology to brag about its achievements in litter reduction despite knowing that the NLI misses much of the litter stream omitting marine debris, microplastics and illegal dumping entirely. It is understood that reforming the NLI has been on the EPA s agenda for some time. Ironically, considering the NSW EPA has made illegal dumping a major priority in 2014, SOE 2015 does little more than praise its strategy but omits any estimate of the amount of illegal dumping. Information Source - summary of previous BA studies of the NSW litter stream and reviews of the NLI previously submitted to the NSW EPA. 9. Waste that isn t Waste? Finally, there are a number of aspects of the waste stream that are not defined as waste largely to provide a free ride under waste regulations for key industry sectors mining, power generation and agriculture. While these sectors have been exempted from waste regulations for a considerable period of time it is misleading to simply ignore their existence. BA was unable to provide a quantifiable estimate of mining and agricultural waste (though combined they represent much more waste than energy generation), but in the power generation sector alone some 4.5million tonnes of fly ash (coal dust) is generated each year and omitted from SoE Despite omitting this material from SoE 2015, the NSW EPA claims (in its reporting to the Commonwealth under the National Waste Report) that 64% of this material is claimed to be recycled - however like other areas where Resource Recovery Exemptions have been granted most of this recycling represents little more than applying the waste to surrounding land, effectively as above ground landfills. There is some legitimate recycling of fly ash to produce cement. Perhaps 1/3 rd of this material is genuinely recycled consequently we also netted out 1.5million tonnes to reflect the amount of waste generated but not recycled (nett 3million tonnes p.a.) Information Source - NSW EPA reporting for the period for the National Waste Report. WHAT IS THE REALISTIC PERFORMANCE LEVEL OF NSW WASTE AND RECYCLING? After making the necessary adjustments to correct the errors and omissions outlined above it is apparent that there is approx. 21.3million tonnes of waste generated in NSW not the 16.8million described in SoE The claims that 10.55million tonnes of NSW waste are recycled are also untrue and that in fact, the total genuine recycling in NSW represents, at best 7.65million tonnes. Further the amount of litter proliferating in the NSW environment, after spending over 162million p.a. to combat the problem is substantially greater than that identified by the NSW EPA excluding illegal dumping. Boomerang Alliance believes that this total amount of unrecovered litter in NSW is more like 56,000 tonnes per annum not the 25,000 tonnes estimated by the NSW EPA. Overall our analysis reduces the rate of genuine recycling from the NSW EPA s claimed 65% in SoE 2015 down to some 34%. As noted above there are other lesser levels of single reuse and these should be separately identified in the SoE.

6 6 FIG 2 IS SOE 2015 A PROGRESS REPORT OR A MARKETING EXERCISE? The purpose of the State of Environment Reports is supposed to be a review of performance, but if this was true the report would highlight trends and issues that need to be addressed, rather than an exercise promoting the NSW EPA s supposed achievements. The following are some of the examples of disturbing trends in waste and recycling that SoE 2015 fails to identify: Transport of Waste to Interstate. The SoE report should identify the practice of dumping our waste in Qld and discuss the trend (which has recently become more extreme). Waste to Energy. Boomerang Alliance warned the Government that its waste to energy policy would lead to a race to the bottom. There are current proposals before Planning NSW amounting to some 3million more tonnes of waste that will be incinerated (in various forms called pyrolysis, resource derived fuel, gasification etc.) for energy recovery rather than recycling. On the current trend we would expect this sector to triple over the next few years while driving actual recycling down. SoE 2015 discusses the success of waste and recycling in glowing terms but chooses to distort the reality by claiming diversion rates continue to increase but omits the very disturbing fact, that according to local government reports, for the past 4 years the amount of material recovered in kerbside recycling has continued to decline nett of population growth the amount we recycle via kerbside is actually dropping by more than 1% per annum (see FIG 3 below).

7 7 NSW Kerbside Recycling Performance 720, , , , , , , , , , , NSW Kerbside Recycling (tonnes)local Government Annual Report ) Kgs Per Capita FIG 3

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