The Regulation of Household Waste Collection Consultation Document Department of the Environment, Community and Local Government November 2013 1 1. Introduction The Minister for the Environment, Community and Local Government published A Resource Opportunity - Waste Management Policy in Ireland in July 2012. The Policy Statement provides a roadmap on the way Ireland will move away from an over dependence on landfill, by putting in place the most appropriate technologies and approaches to reduce waste, while at the same time maximising the resources that can be recovered from waste. It recognised that the performance of the household waste collection market in particular will be crucial in achieving overall policy objectives and meeting national targets on landfill diversion. A Resource Opportunity identified a number of problematic issues with the current arrangements for household waste collection and acknowledged that revised organisational procedures were needed to address these deficiencies . A Regulatory Impact Analysis (RIA) published by the Department in July 2012 considered the introduction of franchise bidding for household waste collection, whereby private sector collection firms would bid to provide waste collection for a given period of time and to a guaranteed level of service. This approach has been adopted in other EU Member States, whereby a local authority or group of authorities invite tenders from private operators to bid for the exclusive right to collect waste or certain streams of waste within their functional area. The RIA identified a number of risks associated with such an approach and ultimately made the recommendations to preserve the current market structure of side by side competition and to strengthen significantly the regulation of household waste collection. The policy document sets out a range of proposals to significantly revise the existing regulatory regime to ensure, inter alia, that waste collected is managed in accordance with the waste hierarchy; that mandated service levels are delivered, that pricing structures are put in place to incentivise waste reduction and source segregation by households and that Customer Charters are put in place by all waste collection providers. 2 The Department has had some preliminary discussions with a range of stakeholders to map out new regulatory structures for the purposes of consultation. It is the intention that the new and enhanced regulatory approach would deliver both improved environmental performance and a quality service for consumers. This discussion paper is designed to facilitate a public consultation process on the environmental regulation of household waste collection to further inform the detailed development of the new regulatory regime to strengthen the regulation of household waste collection. This consultation document sets out a series of questions on different themes and areas associated with household waste management, as follows: Questions 1 to 10: Waste hierarchy and segregation of waste (pages 18 - 20) Questions 11 to 13: Mandated service levels (pages 20 - 21) Questions 14 to 22: Pricing structures (pages 25 - 26) Questions 23 to 29: Fit and proper person (pages 28 - 29) Questions 30 to 35: Waste Management Collection Permit Fees (pages 31 - 32) Questions 36 to 40 Customer Charters (pages 33 - 34) Questions 41 to 44 Managing nuisance and health & safety (page 35) Questions 45 to 47 Householder obligations and awareness and education measures to support householders (page 37) Questions 48 to 49 Reducing Administrative Burden (pages 38 - 40) 3 2. Household Waste Collection Legislation The regulation and enforcement of waste collection are the responsibility of the relevant local authority under sections 33, 34 and 35 of the Waste Management Act 1996. Under Section 34 of the Waste Management Act a waste collector, other than a local authority, must have a permit to collect waste for the purpose of reward, with a view to profit or otherwise in the course of business, and must comply with the conditions of that permit. Waste collection permits (WCP) are issued by the relevant local authority, or a nominated authority acting on a local authority’s behalf. Since 1 February 2012, Offaly County Council (OCC) has been designated as the single Nominated Authority (NA) for the administration of Waste Collection Permits (WCP) on behalf of all Local Authorities. As Nominated Authority OCC use the title National Waste Collection Permit Office (NWCPO). The Waste Management (Collection Permit) Regulations 20071 set out the procedures for the making of waste collection permit applications as well as the conditions which can be attached to a Waste Collection Permit. A guidance manual on the waste collection permit regulations2 may be consulted for more detailed information. A local authority may review or amend the conditions attached to a waste collection permit, or may revoke a waste collection permit3. In this regard, waste collection permitting may be used by local authorities in a flexible and responsive manner to control waste collection and thereby achieve the objectives required by national, regional and local waste policy. Currently, waste collectors are required to hold a waste collection permit for each Waste Management Planning Region or to hold a multi-region permit. The conditions 1 http://www.nwcpo.ie/forms/Collection_Permit_Regs_2007.pdf 2 http://www.nwcpo.ie/forms/WCP%20Guidance%20Manual.pdf 3 Section 34(6) of the Waste Management Act, 1996 4 attached to each permit are subject to the Waste Management (Collection Permit) Regulations 2007 (which provide powers to local authorities to attach conditions to a permit) and are informed by the relevant regional Waste Management Plan. Among the measures contained in A Resource Opportunity – Waste Management Policy In Ireland which will play an important role in the provision of effective and efficient delivery of waste management services is the reduction in the number of waste management planning regions from 10 to 3. The County and City Managers Association has confirmed the composition of the three new Waste Management Planning Regions - which correspond with the regional structures set out in the Government’s Action Programme for Effective Local Government - and ratified the Lead Authorities tasked with developing new plans for the three Waste Management Planning Regions. In accordance with Section 22 of the Waste Management Act, 1996 and the Waste Management (Planning) Regulations, 1997, the Lead Authorities for the three regions gave notice of the intention to commence the preparation of New Regional Waste Management Plans4 on 10 October, 2013 and written submissions to the Lead Authorities in relation to the new plans are invited by 19 December, 2013. The rationalisation of the regions has been undertaken to ensure enhanced and homogenous regional waste management planning by allowing the regions to pool and concentrate their specialist resources, while at the same time freeing up additional resources for other priority areas such as implementation and enforcement. 4 http://www.environ.ie/en/Publications/Environment/Waste/WasteManagement/FileDownLoad,34313,en.pdf 5 3. Waste Hierarchy A Resource Opportunity - Waste Management Policy in Ireland is predicated on the waste hierarchy as set out in the Waste Framework Directive 2008/98/EC and requires that waste be managed in accordance with the following priority order: Diagram 1: Waste Hierarchy, as per Article 4 of the Waste Framework Directive 2008/98/EC Prevention is first in the priority order of the waste hierarchy. Preventing the generation of waste is at the forefront of the national waste policy. Obviously it is far preferable to avoid creating waste in the first place and prevention encompasses many measures such as eliminating superfluous packaging, reuse of products and smart purchasing, i.e. buying the right amount of goods such as food, so that none goes to waste. When waste generation is unavoidable, the maximum value must be extracted from it by ensuring that it is prepared for reuse, recycled or otherwise recovered, including 6 through the appropriate treatment of mixed municipal waste or residual waste collected in our black bins. Preparing for Reuse is the next preferable approach to waste management, products for which an owner has no further use, but which could be prepared for reuse by a new owner. This includes for example, the repair of discarded items, such as computers and furniture, to facilitate their reuse by others. Recycling is third in the priority order, which involves reprocessing of waste materials into products in order to displace the use of virgin materials. A simple example is the recycling of aluminium cans so that they can be used to produce aluminium products, including new cans. Other recovery is fourth in the priority order, which relates to the use of other materials in order to replace materials that would otherwise have been used to serve a particular function including recovery of energy, such as through the generation of electricity by waste to energy or anaerobic digestion plants. Disposal lies at the bottom of the hierarchy, which in Ireland generally involves waste being sent to landfill. Landfilling results in resources being buried and wasted without a possibility of recovery, with risks such as emissions from methane generated from decomposing biodegradable waste, leachate and groundwater contamination, having to be closely monitored and managed. This is an unsustainable way of managing our waste. A key theme of the waste policy is to move away from an over-reliance on landfill as a waste management option and move towards more sustainable waste management approaches in the higher tiers of the hierarchy. Disposal of municipal waste to landfill must be a last resort. Notwithstanding the State’s obligations to divert biodegradable municipal waste from landfill under the Landfill Directive 1999/31/EC, the national policy also aims to virtually eliminate disposal of waste to landfill by the year 2020. 7 4. Polluter Pays Principle Under EU and national legislation the waste producer and the waste holder are required to manage the waste in a way that guarantees a high level of protection of the environment and human health. The polluter pays principle is a fundamental principle of environmental protection at international, EU and national levels. It is based on the premise that waste generators or the current or previous waste holders should pay the full costs of waste management services including collection, treatment and disposal. Responsibility for the costs of waste management focuses attention on the implications of waste generation and provides a direct economic incentive for waste prevention. Application of the principle also ensures that the waste management costs arising during the life of a product are included in the price charged to consumers. Such costs can be minimised where materials and products are managed in an environmentally effective manner throughout their life cycle. 8 5. EU Waste Legislation and Targets Ireland’s waste policy is also influenced significantly by a range of EU waste management Directives. In addition to the obligation on the State to ensure that the public and the environment are not threatened or damaged by the activities of rogue operators, there is also an obligation on the State to ensure that our EU obligations concerning technical requirements and performance targets are met and that the state, and therefore the taxpayer, is not exposed to the legal and financial consequences of failures in our regulatory regime. Appendix 1 contains a ‘snapshot in time’ overview of how the State is fairing in relation to waste management targets set under a number of EU Directives as set out in the EPA National Waste Report 2011. However, such targets are ‘moving’ and subject to change, a situation underlined by the review of key targets in EU waste legislation consultation process being undertaken on behalf of the European Commission during 2013. 9 6. Issues identified with Household Waste Collection Areas for Improvement The analysis of the regulation of household waste collection underpinning the national waste policy identified a number of areas of poor or problematic performance in the current regulatory model, including: low rates of householder participation in some areas; insufficient levels of prevention and reuse of waste; insufficient levels of segregation of household waste; pricing issues, including pricing structures which do not incentivise sustainable behaviours; concerns in relation to meeting the state’s legal obligations under EU law, where the state is currently not achieving some obligations and is at risk of not meeting others in the future; potential competition and corporate governance issues; other social and environmental failures such as illegal waste activities; and insufficient or ineffective implementation of the polluter pays principle in cases where industry does not take appropriate responsibility for the end of life treatment of their products. Household Waste Collection Policy Goals Government’s goals are to maximise the collective wellbeing by establishing and maintaining a system of regulation of household waste collection which provides the optimal mix of economic, environmental and social outcomes. Specifically, those which: support the attainment of our environmental objectives, adhere to the waste hierarchy and the principle that the polluter pays, minimise the disposal of waste in landfill, and maximise recoverable resources; are consistent with the legal cornerstones of National and European policy, including the Landfill Directive, the Waste Framework Directive and the Producer Responsibility Directives on a number of priority waste streams; 10 provide for the segregation of household waste, as required by EU and national law; maximise the number of households with access to a waste collection service and maximise householder participation; minimise the price paid by householders, commensurate with the achievement of environmental objectives; ensure a high quality service to the householder; sustain a competitive and progressive waste management industry which works in partnership with the State to meet its responsibilities; provide the market stability and regulatory certainty necessary to underpin investment in the suite of infrastructure we require and supports the development of associated markets; and, meet other social preferences, such as minimising community disamenity and maximising health and safety. 11 7. A Resource Opportunity - Waste Management Policy in Ireland The policy recognises the critical nature of household waste collection services to the economy and the wellbeing of society and that the performance of the household waste collection industry is central to contributing to the achievement of the policy statement’s objectives. The policy proposes a number of measures to improve the performance of household waste collection which are discussed in the following pages. The questions posed in the paper are intended to facilitate discussion on the various policy measures and actions that have been proposed to strengthen the regulatory regime for household waste collection. Furthermore, submissions on any issues relating to household waste collection (whether discussed specifically in this paper or not) are now also being invited. It should, however, be noted that two issues in particular are not discussed as part of this consultation process, as they are being addressed in separate processes. An inter-departmental working group was established under A Resource Opportunity - Waste Management Policy in Ireland to report to Government with options to minimise the impact of waste charges on low income households. The Working Group, which comprises representatives of this Department and the Departments of Social Protection; Public Expenditure and Reform; Finance; and the Tánaiste's Office, submitted its second report to Government on 23 July, 2013. Government considered the report and, given the complexity of the issues involved, the deployment of further expert resources in the process is being considered with a view to the Working Group submitting a third report to Government by the end of 2013. In this context, the issue of supporting low income households will not be discussed expressly in this consultation paper. However, other household waste collection issues in the paper are discussed which are clearly connected to this topic, including household waste collection pricing structures, application of the polluter pays principle, segregation of household waste, education and awareness measures for householders, etc. 12 In addition, Producer Responsibility Initiative (PRI) waste is the subject of a separate root and branch review and is not discussed in detail in this paper. However, Producer Responsibility Initiative (PRI) waste is also a significant consideration in terms of household waste collection. It is essential that householders ensure that PRI items are disposed of appropriately (e.g. WEEE / batteries are not disposed of in household waste). For example, the application of a per kilogramme pay per weight charging system, as discussed in questions 14 to 22 below would encourage householders to dispose of PRI items (especially WEEE which can be heavy) through the proper channels without charge rather than paying to have them disposed of inappropriately in their residual bin. This should ensure that leakage of waste streams such as scrap metal / WEEE through the household waste collection system should be minimised as there is a financial incentive for the householder to dispose of such waste for free at a designated facility. Requiring a waste collector to demonstrate how they are monitoring the potential contamination within the segregated waste streams being collected, including ensuring that other waste priority streams (such as PRI waste with other dedicated collection systems) are not being disposed of through the household waste collection service is discussed at question 7 below and would further assist in ensuring PRI waste is managed appropriately. 13 8. A Resource Opportunity - Household Waste Collection Policy Measures and Actions A number of respondents to the summer 2011 public consultation process in relation to the regulation of household waste collection suggested that amendments to and improved enforcement of the current waste collection permitting system can rectify many of the difficulties associated with the system by strengthening regulatory control over private sector waste collectors. It should be noted that enforcement activities against operators who are noncompliant with their permits or persons who collect waste without the proper authorisation also increase the ‘value’ of a permit by the removal of such operators. A strengthened regime for non-compliant firms, involving the revocation of waste collection permits will help ensure that the permit system plays its proper role to deliver desired outcomes. “A Resource Opportunity” established the following policies for household waste collection permits: Through collection permits issued under a strengthened permitting system, waste collectors will be required to: a. manage the waste collected in accordance with the waste hierarchy and in a manner supportive of the development of a resource efficient and sustainable approach to the management of waste; b. deliver mandated service levels; and c. operate pricing structures designed to incentivise environmentally sustainable behaviours by households in terms of waste reduction and segregation. a. Waste hierarchy Measures such as the recent increases in the landfill levy and the introduction and roll out of the organic bin are assisting in having waste managed in the higher tiers of the waste hierarchy. Nonetheless, the percentage of (managed) household waste disposed to landfill5 was reported to be 53% in 2011, which, although a reduction of 5 http://www.epa.ie/pubs/reports/waste/stats/National%20Waste%202011_web.pdf 14 some 11% on the previous year, is still unacceptably high. The aim of virtually eliminating landfill will not be achieved unless further action is taken. A Resource Opportunity seeks to prevent and reduce waste generation to the greatest extent possible. Where waste is generated, it should be managed in accordance with the waste hierarchy, reducing the amount of this waste which is disposed to landfill. In this regard, increasing the level of segregation of waste will further promote recycling and recovery of waste. In addition, the national policy requires that the maximum value should be extracted from residual waste that is presented for collection. It is imperative therefore that a waste collection system is provided that can enable householders to maximise the opportunities for the diversion of waste from landfill. Segregation of household waste / resource efficient and sustainable approach to the management of waste A system of segregated collection of waste is a cornerstone in achieving compliance with the waste hierarchy and exploiting the maximum resource value from waste. The latest EPA National Waste Report (2011) notes the following levels of service being made available to households in Ireland which were reported as being provided with a household kerbside collection service: 26,631 households (2%) on a single bin (black bin/ residuals bin) service only; 723,374 households (61%) on a 2-bin service only (residuals bin and dry recyclables bin); and 447,923 households (37%) on a 3-bin service (residuals bin, dry recyclables bin, and organics bin). Although the above figures are a small improvement on 2010 figures with an increase in the number of households being offered a segregated household waste collection service, greater source segregation of waste by households is necessary 15 to secure investment in the suite of recovery and recycling infrastructure which is required to meet the Government’s waste management objectives. Besides the obvious environmental benefits, an additional advantage of increased segregation is that the industrial processes which recover and recycle segregated waste are more labour intensive than waste disposal and thus have the potential for greater job creation. The current legislation6 enables the nominated authority to attach conditions to a waste collection permit requiring that all waste, or a specified portion of waste, is source segregated, treated or recovered in such a manner as may be specified and where practicable and having regard to the waste hierarchy, delivered to facilities which reuse, recycle or recover waste. Requiring that collectors on a national basis offer a service which allows the householder segregate waste into at least three streams (residuals bin, dry recyclables bin, and organics bin in all agglomerations with populations greater than 500 persons) in accordance with the European Union (Household Food Waste and Bio-waste) Regulations 2013) is a fundamental step in the drive to achieving compliance with the waste hierarchy. Consideration can be given now, or at a later date (possibly during the 2016 midterm review of the policy) to introducing additional national mandated levels of waste segregation, keeping in mind the requirements of the 2020 targets or any future revised targets under the Waste Framework Directive 2008/98/EC; the national waste policy goal of virtually eliminating landfill; and contributing to a resource efficient economy through a national waste management system based on recycling and reuse. In terms of the development of a resource efficient and sustainable approach to the management of waste, it has been suggested that the size of the Irish market provides a significant challenge for the development of commercially viable indigenous recovery and recycling/reprocessing opportunities for certain waste 6 Regulation 20(2)(g) of the Waste Management (Collection Permit) Regulations 2007 16 streams, particularly when competing with emerging economies. In addition, the relatively high prices offered on international markets and the absence of economies of scale for reprocessing of waste available within Ireland mean that the bulk of municipal waste (including household waste) recovered is exported for recovery. However, it is worth noting that Article 16 of the Waste Framework Directive 2008/98/EC7 states that “Member States shall take appropriate measures, in cooperation with other Member States where this is necessary or advisable, to establish an integrated and adequate network of waste disposal installations and of installations for the recovery of mixed municipal waste collected from private households, including where such collection also covers such waste from other producers, taking into account best available techniques.” The possible introduction of measures to encourage the development of such installations has been raised with the Department and submissions on this issue are invited in Question 9 below. A Resource Opportunity highlights the importance of promoting awareness of the benefits of waste prevention and recycling. It identifies the key parties who should share the responsibility for providing an effective and efficient programme of awareness-raising activities, including producer responsibility schemes, local authorities, waste collection companies, the wider public sector and the business community. Another issue which has been highlighted by both household waste collectors and local authorities is the increasing appearance of pay-to-use receptacles/compactors (PTUs) around the country. Although PTUs are not directly governed by the Waste Management (Collection Permit) Regulations 2007, concern has been expressed at their potential to undermine the segregation of household waste as many do not offer the option of the segregated reception of dry recyclates and/or organic waste material. Currently PTUs must comply generally with the regulatory requirements for Certificates of Registration as set out in the Waste Management (Facility Permit & Registration) Regulations 2007, though some local authorities have also introduced further requirements, such as separate reception points and separate storage elements for the recovery/disposal of dry recyclable waste and residual waste. Given 7 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:312:0003:0030:en:PDF 17 the obligations on household waste collectors to provide residual, dry recyclate and as appropriate, organic waste collections, it has been articulated that PTUs have a commercial advantage over kerbside collectors and have the potential to undermine the segregation of household waste collection. While it is acknowledged that PTUs can have a contribution to make in certain circumstances and locations in ensuring that waste management is carried out without endangering human health or causing harm to the environment (for example, in certain rural areas that are without kerbside collection services or areas characterized by a high proportion of holiday homes), policy articulates that waste is managed in accordance with the waste hierarchy and in a manner supportive of the development of a resource efficient and sustainable approach to the management of waste. Questions (1) What are your views on the level of awareness, information and education that needs to be provided to householders to assist them in waste prevention and source segregation techniques? How best can the representatives of the producer responsibility sector, local authorities, waste collection companies, the public sector and the business community work in partnership to promote awareness? (2) What are your views on the operation of the current commingled collection service for dry recyclables? Are there ways that the performance of commingled collections could be improved to increase the quality of household material being collected for recycling / recovery? (e.g. by lowering contamination rates, or by prohibiting the collection of glass containers in commingled dry recyclable collections). (3) Should local authorities, at a local or regional level, be given the flexibility to introduce more stringent requirements regarding the segregation of household waste? (4) What are your views on the requirement that all household waste collection firms without exception provide, at a minimum, a residual waste collection, a recyclates collection, and, in the specific circumstances [as set out in the 18 European Union (Household Food Waste and Bio-waste) Regulations 2013,] an organic bin collection. Non-compliance with the above minimum requirement would result in action being taken against a household waste collector seeking to have their permit revoked. Would it be preferable for the above requirements to be included as ‘binding obligations’ in national legislation as opposed to being attached as conditions in particular functional areas? (5) Do you think legislation should also provide the possibility that action can be taken against a non-compliant operator to seek to have their permit suspended (in addition to the possibility of seeking to have a permit revoked) for non-compliance with the legislation? (6) In what limited circumstances are pay-to-use compactors (PTUs) appropriate for waste collection purposes? (7) Should a condition be included in waste collection permits to require a waste collector to demonstrate how they are monitoring the potential contamination of waste streams being collected, including ensuring that other waste streams (such as PRI waste with other dedicated collection systems) are not being disposed of through the household waste collection service? (8) Given that 53% of (managed) household waste was disposed to landfill in 2011 and that the policy aims to virtually eliminate landfill by 2020, what are your thoughts on the potential following measures: a) the application of landfill bans on particular waste materials at this time or in the future? b) further increases in the rate of the landfill levy? c) removing the exemption from the landfill levy for further waste materials? 19 d) providing appropriate legislative support for enforcement activities of the EPA in relation to landfill gate fees and financial guarantees for licensed facilities? (9) Are there economic or other instruments you think could be explored or introduced to further encourage the development of recycling and recovery infrastructure within the State for managing household waste in accordance with Article 16 of the Waste Framework Directive? For instance, should measures to confine the export of household waste to encourage the development of indigenous recovery infrastructure be considered? (10) In addition to measures already introduced or proposed, including the landfill levy, the roll out of the brown bin and the potential introduction of pricing structures which incentivise householders to manage their waste in accordance with the hierarchy, are there further measures (e.g. the provision of information on the various waste types that can be deposited in the dry recyclables bin) you deem necessary to give effect to the waste hierarchy in the context of household waste collection? b. Deliver mandated service levels In order to secure flows of quality recyclates and organics to provide a platform for investment in recycling and recovery infrastructure and to maximise the resources that can be recovered from waste, the mandating of minimum standards in terms of the segregated collection services to be provided and the collection frequencies is a useful instrument to further increase the level of recycling in households. Questions (11) Do you think it necessary for the introduction of further mandatory segregation at source of household waste (e.g. paper, metal, glass, plastic and glass) at this time? 20 (12) What are your views on the following collection frequencies being mandated in national legislation (i.e. non-compliance with the below minimum requirements will result in action being taken against a household waste collector seeking to have their permit revoked) : a. household waste collectors provide a mixed dry recyclates collection at least every fortnight; b. an organic bin collection is provided at least every fortnight, in accordance with the European Union (Household Food Waste and Bio-waste) Regulations 2013; and, c. a residual waste collection is provided no more frequently than the collection of the organic bin, however, a collector may have a more frequent residual waste collection service in circumstances where there is an acceptable pricing structure to ensure that a financial disincentive exists for using the residual bin. (13) Are there any other issues you wish to raise in relation to mandated service levels? c. Pricing Structures Prevention is at the pinnacle of the waste hierarchy and it is essential that the appropriate price signals are sent to the waste producer, i.e. the householder to prevent and reduce the generation of waste. Pay-by-use, whether weight based or tag/lift based implements to a greater or lesser extent the ‘polluter pays principle’, ensuring that those who generate waste bear the costs of managing it. The introduction of a mandatory and well-designed pricing structure for waste collection would provide a clear financial incentive to the householder to prevent and recycle waste and would further ensure that waste is managed in accordance with the hierarchy. 21 The composition of the pricing structure offered to households can vastly influence their behaviour in terms of: (i) Reducing the generation of waste (prevention being the top tier of the waste hierarchy); and (ii) Increasing the segregation of waste (which ultimately influences how that waste can be treated, the greater the degree of segregation the greater the chance the waste will be prepared for re-use, recycled or otherwise recovered). The Regulatory Impact Analysis8 (RIA) which accompanied the publication of the national waste policy considered the option of price regulation (the setting of prices, price floors, price ceilings etc.) as inappropriate. However, the RIA did recommend regulating the pricing structures which apply to household waste collection services to ensure that pricing structures incentivise householders to reduce waste and segregate recyclates in defined categories. A Study of Pay-by-use Systems for Maximising Waste Reduction Behaviour in Ireland9 published in 2011 estimated that: 46% of households used differential bin-based charges (flat fee), 34% used tag-based charges (either pay-by-lift / tags) and 20% used weight based charges The study concludes that weight-based charges are the single most effective Payby-use (PBU) system in terms of waste prevention, waste recycling and diversion of waste from landfill. These charges prompted the highest per household recycling levels (between 27% and 32%), highest diversion rates from landfill (between 28% and 35%) and the lowest total kerbside waste figures (between 800kg and 947kg per annum). The study projected that if the estimated 80% of those households across 8 http://www.environ.ie/en/Environment/RHLegislation/FileDownLoad,30784,en.pdf 9 http://www.epa.ie/pubs/reports/research/waste/STRIVE_84_web.pdf Page 47 22 Ireland currently on pay per lift / tags and differential bin systems switched to ‘per kg’ based PBU systems, it could lead to an annual diversion from landfill of approximately 446,000 tonnes of domestic waste per annum. The Study examined three separate forms of Pay-by-Weight system: 1. A charge per kg of waste presented, in addition to an annual flat service charge; 2. A “banded” weight-based system using several weight ranges within which the annual weight of waste presented will fall within, with a different price applicable to each weight band; and 3. An “average” weight-based system with 800 kg per annum being an atypical weight – if less than 800 kg is presented during the year, a credit is given for the following year’s bill; if more than 800 kg is presented during the year, the customer is billed for the additional weight. The data from the Study clearly indicates that a ‘pay per weight (per kg)’ form of weight based-charging is the most effective pricing system in terms of influencing household behaviour under all indicators, as illustrated in Table 4.1.4 of the study, reproduced below. System Percentage Percentage Total waste per residual waste recycling household (kg) Per kilogramme weight based 65 32 800 All weight based 72 27 947 Tag based (i.e. Tag or per Lift) 79 20 928 Differential (i.e. bin size) 79 21 1,294 The Study highlights the desirability of “providing a continuous pricing signal to householders” through the charging system. (e.g. when using of a smaller bin (even at a lesser charge), the householder will not reduce waste costs if they do not fill 23 their bin and thus have no on-going incentive to change their waste management behaviour to divert waste from landfill any further than is necessary to avoid exceeding the capacity of the bin size). The practice of charging a simple flat rate fee (annual or otherwise periodic) for waste collection services does not appear from the Study to incentivise the management of waste in line with the national waste policy, the waste hierarchy, the polluter pays principle and incentivising waste reduction and segregation by householders. The argument which has been made that by offering the choice of a large and a small residual bin and applying a smaller annual charge for smaller sized bin, that due regard is being had for waste prevention. However, the Study identified that the practice of waste compaction undermined the rationale for the use of the smaller size bin. Indeed, the STRIVE Study overall finding on Differential Bin-sized Pay-by-use Charges was that “This PBU system was found to be the least effective system in terms of impact upon the environment, resulting in a high waste to landfill rate (79%) and highest total waste of the three PBU systems (i.e. Pay-by-weight, Tag-a-bag and Differential-Bin-Sizes) studied (1,294kg per household per annum).” The pay per lift approach results imply that it is more effective than a flat fee charging system in terms of encouraging waste reduction and recycling. However, in the case of organic bins the pay per lift approach encourages consumers to wait until their bin is full and the waste within it is well compacted before having the material removed, which can mean that unnecessary odour nuisance has been created and much of the resource value of the material has diminished by the time it is collected. Applying a per kilogramme pay by weight charging system for organic bins encourages a more frequent collection of such material and thus ensures a reduction in potential odour nuisance and a better quality product to the end processor. The RIA recognised the cost to industry in moving over to a pay by weight system, but, on the basis of the findings of the STRIVE research Study, asserted that “A transition to weight based charging on a national basis could be achieved relatively cheaply, in view of the potential benefits.” 24 Questions (14) Should the practice of household waste collection companies charging a single flat rate fee (annual or other periodic fee) be expressly prohibited in legislation given that the practice appears to run contrary to the ideals of the polluter pays principle and the waste hierarchy? (15) Given the overwhelming arguments in favour of the per kilogram weight form of Pay-by-use, on what basis should it be introduced and what are the appropriate transitional arrangements? (16) In order to incentivise source segregation of organic waste by householders in the brown bin, how can the charging system be designed and structured so as to avoid wilful consignment of non-organic material to the brown bin? What is the appropriate balance between the rate per kg for organic waste deposited in the brown bin and the rate per kg for residual waste deposited in the black bin? (17) Should a ‘pay per weight (per kg)’ charging system be mandatory for household waste collection, how can the balance between the variable cost ‘pay per weight (per kg)’) element of the charge and the fixed cost (standing charge) element of the charge be best achieved? (18) Traditionally in many instances the dry recyclate bin has been provided ‘free of charge’ by waste collection operators. Do you consider it appropriate that the green bin for dry recyclables should continue to be collected free of specific charge? (19) What do you think of the proposal that where a standing charge is being applied, that it should be uniform, i.e. an operator would be obliged to impose the same standing charge for the provision of 3 bins or 2 bins (where the householder is disposing brown bin waste in accordance with the European Union (Household Food Waste and Bio-waste) Regulations 2013? 25 (20) What are your views on a regulatory approach whereby non-compliance with any new pricing structure requirements would result in action being taken against a household waste collector seeking to have their permit revoked? (21) Do you consider it appropriate that any new pricing structure requirements which may be introduced should apply universally and be included as binding obligations in legislation as opposed to being attached to individual permits as conditions in particular functional areas? (22) Are there any other issues you wish to highlight in terms of pricing structures? “A Resource Opportunity” established the following policies for the household waste collection permitting structure: The collection permitting system will be strengthened further so that: o robust controls are in place to ensure that only “fit and proper” individuals and companies are allowed to hold such permits and appropriate corporate governance arrangements are implemented; o Permit fee structures reflect the value of the permission to collect waste conferred by a permit, the need to contribute to the costs of essential enforcement of the permitting system and the potential liabilities for the state which may arise from poor collection and management practices. “A Resource Opportunity” also established the following policies for the inspection and enforcement of household waste collection permits: o Inspection and enforcement resourcing for collection permits will be increased, funded in part by the revised permitting fee structure. “Fit and proper” person Notwithstanding the discretion of a local authority to decide that a person may still be regarded as “fit and proper” despite been convicted of a scheduled offence 10, under current legislation a ‘fit and proper person’ applies to a person if— (a) neither that person nor any other relevant person has been convicted of an offence under the Act, the Environmental Protection Agency Acts 1992 and 10 Article 17(3) of the Waste Management (Collection Permit) Regulations 2007. 26 2003, the Local Government (Water Pollution) Acts 1977 and 1990 or the Air Pollution Act 1987, (b) in the reasonable opinion of the nominated authority, that person or, as appropriate, any person or persons employed by him or her to direct or control the carrying on of the activity to which the waste collection permit relates or, as the case may be, will relate has or have the requisite technical knowledge or qualifications to carry on that activity in accordance with the waste collection permit and the other requirements of the Act, (c) in the reasonable opinion of the nominated authority, that person is likely to be in a position to meet any financial commitments or liabilities that will be entered into or incurred by him or her in carrying on the activity to which the waste collection permit relates in accordance with the terms thereof or in consequence of ceasing to carry on that activity; Given the strategic importance of the waste industry to society’s welfare, the economy and the welfare of the environment, it is imperative that individuals and companies who have been found to be in serious breach or repeated breach of waste legislation not be allowed to continue to hold a waste collection permit. In addition, those in the industry must have the technical competence and financial capacity to operate this vital service. In certain circumstances, it may be appropriate for the permitting authority to require a waste collector to undertake formal training so that the collector will gain the competence to engage with the State authorities ‘on-line’ in terms of applications/reviews of permits and completing annual returns. This should reduce the administrative burden for all parties involved and facilitate smoother data flows. Another element of the ‘fit and proper’ test relates to the ability of a collector to make adequate financial provisions in order to discharge their obligations as imposed by the permit. Current practice in this regard requires waste collectors to include a financial commitment declaration with their application for a permit / review. It is understood, however, that some financial governing bodies have advised their 27 members not to sign such declarations. Whether such an approach is fit for purpose has been questioned. The waste policy requires that “appropriate corporate governance arrangements are implemented”. This could be dealt with through the assessment of an applicant as a fit and proper person. Undertaking formal training courses on corporate governance could be a condition, if appropriate, to granting of a waste collection permit. Questions (23) Current legislation permits a local authority to regard a person as ‘fit and proper’, if it considers it proper to do so, even if the person has been convicted of a specified offence. Should a local authority still retain this flexibility or how should the circumstances whereby a person is considered as ‘fit and proper’ (notwithstanding the fact they have been convicted of a specified offence) be defined? (24) Would you consider it reasonable that a household waste collection company/operator would have their waste collection permit revoked if they amassed a designated number of specified offences or administrative fines in a specified rolling period (e.g. mixing source segregated waste such as organic and residual waste in a collection vehicle)? (25) Should authorities be given additional powers to require collectors to furnish evidence that a person is ‘fit and proper’ in terms of qualifications, experience, financial provisions in relation to the company’s ability to meet the financial commitments or liabilities that the EPA reasonably considers will be incurred in carrying on the activity? (26) Is it necessary to have a specified level of both motor and public liability insurance to be considered a ‘fit and proper’ person? (27) Do you agree that the technical competence of an applicant should include skills such as computer literacy for submission of annual returns? Do you think 28 it appropriate that authorities could require a waste collector to undertake an accredited training course(s) to ensure they possess the required level of technical competence, particularly in the IT, corporate governance and record keeping fields? (28) Should there be an onus on operators to demonstrate that they are ‘fit and proper’ on an annual basis, such as a declaration that the operator has not been convicted of any specified offences? Operators could be required to obtain a Certificate of Compliance from the National Waste Collection Permit Office on an annual basis based on such a declaration, which could also include, for instance, that the waste collector has submitted their annual data return under Regulation 20(2) (f) of the Waste Management Collection Permit Regulations. Are there other provisions which ought to be included in such a proposal (e.g. confirmation that a Customer Charter is in place, an appropriate pricing mechanism is in place etc.)? (29) Are there any other issues you wish to raise in terms of only ‘fit and proper’ individuals/companies are allowed to hold waste collection permits? Waste Management Collection Permit Fees Under Article 20(3)(d) of the Waste Collection Permit Regulations 2007, a local authority can impose a Condition on a Waste Collection Permit that allows it to recoup the reasonable costs incurred in inspecting, monitoring, auditing and enforcement of the waste collection activity. The policy clearly requires that the permitting fee structure be reformed so that permit fees for household waste collection reflect the economic value of collecting the waste; the risk associated with undertaking the activity; and the cost of enforcing the permit. 29 Notwithstanding the fact that waste can become a commodity and in certain circumstances assume a positive financial value, there is an intrinsic economic value associated with being conferred with a permit to collect household waste. In terms of addressing the risk element associated with waste collection activities, this can be to a greater or lesser extent offset by raising the permit fees to act as a form of insurance against undischarged liabilities due to the collapse of any individual waste collection firm. A ‘one size fits all’ approach may not be an appropriate approach to setting permit fees, given the differing scale and extent of waste collector operations. The economic value of collecting waste, the potential liabilities associated with the activity and the costs of enforcing a permit are very much dependent on the scale and extent of the operation concerned. However, permit fees could be structured on a fixed and variable basis, the fixed charge reflecting the cost of processing and the on-going administration of the permit, while the variable element could be based on the extent and scale of the waste managed or the number of refuse collection vehicles used to carry household waste in a company’s fleet. Currently, the fees payable for a waste collection permit are €1,000 for a single region permit and €5,000 for an all-region permit. The permits cover different classes of waste collection, including household waste collection. Amending the permit fee structure for household waste collection may require an overhaul of the fee structure for other classes of waste collection. Such matters can be discussed at a later date post this consultation process, though views are sought on the proposal set out in Question 30 below. In addition, there are now three waste management planning regions as opposed to ten and this may be an opportune time to update the waste collection permitting system in terms of single / multi-region permits. Given the reconfiguration of local authorities into three regions, now may be an appropriate time to give consideration 30 to basing the waste collection permit fee on the type of waste and the scale and extent of the activity being undertaken rather than simply on where the waste is being collected. Questions (30) The waste collection permitting regime in general could be reformed in terms of introducing different classes of waste collection permit (based on EWC codes) and associated suitable permit fees. Permits could be granted on a national basis rather than on a regional basis. Each class of permit would have its own standard conditions. In terms of reforming the permit fee structures generally for waste collection, including household waste collection, (a) (b) (c) What are your views on the following classes of waste collection permit being established? Are there other ways of restructuring permits which you would see as more beneficial / practical? Do you think it reasonable that a cap would be set for the fees for waste collection firms who would require more than one permit? Class Description Fee Class 1 Collection of waste for preparation for re-use (registration only) A Class 2 Haulage of bulked waste from authorised waste facilities (non-hazardous) B Class 3 Haulage of bulked waste from authorised waste facilities (including hazardous) C Class 4 Single code /waste type, (non-hazardous) collection e.g. scrap metal, septic tank sludge, C&D D Class 5 Single code / waste type, (including hazardous) collection e.g. oil interceptor, ELV’s E Class 6 Multiple waste type collector (non-hazardous waste) F Class 7 Multiple waste type collector (including hazardous waste) G Class 8 Household kerbside waste collector H 31 (31) Taking into account the need for the cost of a household waste collection permit to reflect the economic value of collecting the waste; the risk associated with undertaking the activity; and the cost of enforcing the permit, at what level do you think the household waste collection permit fee should be set? Should the fees be different for the various classes of Collection Permit as proposed in previous question? (32) Is there merit in structuring the fee in such a way that there is a fixed element and a variable element to the fee, so as to reflect the risk associated with larger volumes of waste being collected? For instance, what are your views on the fee comprising a fixed charge price plus a variable charge (based for example on the number of waste collection vehicles used by an operator)? (33) Is there merit in structuring the permit fee do that the enforcement cost element is clearly distinguishable? (34) Should waste collection permits be issued only at a national level or is there still a need for regional permits? (35) Are there any other issues you wish to raise in terms of waste management collection permit fees? “A Resource Opportunity” established the following policies for the household waste collection customer charters: All household waste collection service providers will be required to put in place Customer Charters, clearly setting out information for customers in relation to issues such as charging structures, procedures for dealing with customers who may fall into arrears, and arrangements for switching from one waste collector to another. These will be audited annually as part of the permitting process. Following the publication of A Resource Opportunity a number of waste collectors have already put customer charters in place ahead of the regulatory requirement to do so. 32 The policy requires that all waste collectors have customer charters in place and it is proposed that such a requirement be a condition of the grant of a waste collectors permit. The Regulatory Impact Analysis set out requirements which should be included in such a charter. Clear information on charges and pricing structures; Clear information on other terms and conditions; The provision of payment options by firms to households; How households can access their account statements and balances; The provision of clear information to households on the ownership of bins and the policy and procedure should a customer wish to return a bin; Procedures for the handling of billing disputes and other complaints about service levels made by households; Procedures for the refund of standing charges in the event that a household switches from one firm to another mid-term; The treatment of households which have fallen into payment arrears, including protocols concerning debt collection; and, The provision of information about how a household may cancel a service provided by a firm. Questions (36) See question 28 in relation to an operator being requested to confirm annually that they have a customer charter which meets specified requirements. (37) Are there further conditions, additional to those listed above, which should be included in a customer charter, such as the provision of better or more information to customers on preventing and segregating waste? (38) Do you think it reasonable that an operator would be required to make a copy of their waste collection permit available on their website? (39) What measures could be introduced to ensure that the commitments contained in customer charters are delivered? For example, should household waste 33 collectors be obliged to publish statistics on the commitments made in their customer charters (e.g. publication of performance indicators such as the number / percentage of collections are made on-time etc.)? (40) Are there any other issues you wish to raise in terms of customer charters? “A Resource Opportunity” established the following policies for the reduction of nuisances and the health & safety of household waste collection: Measures will be introduced through the strengthened collection permit system to manage better the nuisance, emissions and health and safety risks of overlapping household waste collection networks. There is an opportunity to introduce ‘binding obligations’ which would apply to all waste collectors in terms of managing the noise/nuisance/health & safety issues associated with competing household waste collectors operating in the same area. Disamenity may be caused when waste is being collected on four or five different days in a given area. Health and safety issues may also arise when multiple competing operators collect waste on the same day. Whatever the solution to these issues, a balance needs to be struck between having a national approach and the need to address local issues arising, such as a requirement for local traffic management plans, etc. The Regulatory Impact Analysis identified a number of options in this regard. One option would be to regulate the hours during which household waste collections could occur, to minimise the risk of a serious or fatal road traffic accident and to reduce the nuisance value of multiple refuse collection vehicles and crews collecting from housing estates. The RIA also proposed an alternative solution whereby refuse collection vehicles could be required to operate under a certain decibel threshold, for example by using electric vehicles, in residential areas. A requirement to progressively introduce compartmentalised refuse collection vehicles could also be put in place, to reduce 34 the number of waste collection journeys made by a waste collection firm on any given street. It has been suggested that the issue of managing nuisance can be best resolved through each local authority issuing waste collection bye-laws by requesting, for example, that all household waste collection within a functional area be undertaken on a particular day. The advantage of such an approach is that any nuisance caused by waste collection (e.g. noise) is confined to one day of the week within a particular area, though this may raise health and safety issues. In addition, bye-laws issued at a local level can take account of local traffic management issues. Questions (41) Do you think it appropriate that measures be introduced at a national, regional or local level in terms of better managing the nuisance, emissions and health and safety risks of overlapping household waste collection networks? (42) Should times be specified when waste collection is prohibited? Should this be established at a local, regional or national level? (43) Bearing in mind the potential costs associated with upgrading waste collection fleets and the potential knock-on costs for consumers, what are your views on requiring waste collection fleets to: a. operate under a certain decibel level?; b. introduce compartmentalised refuse collection vehicles so that different streams of waste can be collected by the same vehicle, reducing the number of waste collection journeys? (44) Are there any other issues you wish to raise in terms of managing the nuisance, emissions and health and safety risks of overlapping household waste collection networks? 35 “A Resource Opportunity” established the following policies for the households: All householders will be obliged to demonstrate that they are availing of an authorised waste collection service or are otherwise managing their waste in an environmentally acceptable manner, in accordance with legislation and the provisions of waste management plans, in order to combat illegal fly-tipping, littering and backyard burning of waste by a minority of households, and to avoid the compliant majority having to bear the costs of dealing with the consequences of such activities. To support households, awareness and education measures will be strengthened; the waste collection industry will be encouraged to play a role in such measures. “householders will be obliged to demonstrate that they are availing of an authorised waste collection service or are otherwise managing their waste in an environmentally acceptable manner,” The EPA’s most recent National Waste Report (2011) estimates that approximately 70% of occupied Irish households availed of kerbside collection in 2011. In some areas, participation rates (in a collection scheme) were as low as 37%; while in some of the larger urban centres, coverage was reported to be close to 100%. The report notes that part of the low participation issue may have been due to no kerbside collection service being offered, particularly in rural areas, while the STRIVE Study on Pay-by-use noted that a nationwide survey of 130 households without a waste collection service found that 31% live in an area where a waste collection does not operate. However, the National Waste Report (2011) notes that the EPA is working with the CSO and other stakeholders to include some household waste management questions in an environment module in the Central Statistics Office’s Quarterly National Household survey (QNHS) in late 2013. This will provide a more statistically robust and valid survey of household waste management behaviours to assist in the implementation and evaluation of national waste policy. Notwithstanding the above, a figure in the order of 30% of households not participating in an authorised waste collection service begs the question as to how such waste is being managed. 36 A number of local authorities have already introduced waste collection bye-laws to require householders to avail of a permitted waste collection service or to prove to the satisfaction of an authorised officer that they are managing their waste in an environmentally sustainable and acceptable manner, or face fixed payment notice fines. “awareness and education measures” Local authorities, the EPA and the waste collection industry all have a role to play in terms of implementing this measure. Many initiatives are currently in place, including measures under the National Waste Prevention Programme, such as the Local Authority Prevention Network11, which aims to develop capacity in prevention in all local authorities to assist commercial and community initiatives or the Stop Food Waste12 initiative. Questions (45) Do you consider the introduction of fixed payment notices (otherwise known as on the spot fines) as a suitable penalty for householders who are not availing of an authorised household waste collector and who cannot demonstrate they are managing their waste in an environmentally sustainable and acceptable manner? If not, what other sanctions would you deem appropriate? (46) What are your views on waste collection companies being required to maintain a register of household waste customers as a permit condition whereby a local authority can request the collector to verify whether a specific householder is availing of a service being provided by that operator? (47) Are there any other issues you wish to raise in this section? 11 http://localprevention.ie/ 12 http://www.stopfoodwaste.ie/ 37 “A Resource Opportunity” established the following policies for the compliance with and enforcement of household waste collection requirements: The environmental regulatory regime governing the waste management sector will be kept under on-going review, in order to ensure that any unnecessary administrative burden is identified and reduced, while maintaining an appropriate balance with the need for effective oversight and reporting. The Department is committed to exploring ways to reduce duplication or inefficiency of information flow, and to modernising and streamlining such processes wherever feasible, in such a way as to reduce unnecessary administrative costs that may arise both for business and for the public sector. However, this must be achieved in a manner which does not diminish in any way the protections afforded to the environment, citizens and society at large. The Department’s Statement of Strategy 2011-2014 states that “while delivering on our environmental obligations, we will work with stakeholders to reduce the burden on business by simplifying administrative procedures, and by reducing the quantity and improving the quality of regulation.” In addition, Regulation 5(5) of the Waste Management (Collection Permit) Regulations 2007 provides that: “Insofar as possible, local authorities shall co-operate to ensure an efficient administration of the waste collection permit system to reduce the administrative burden for applicants”. Questions (48) Do you have specific proposals in terms of reducing the administrative burden for those complying with Waste Management (Collection Permit) Regulations 2007? For example, what are your opinions on: a) introducing ‘binding obligations’ that apply nationally in the legislation to the greatest extent possible to simplify the permitting process across local authority and regional boundaries; 38 b) allowing operators to submit data on an on-going basis rather than making an annual return; c) publishing notices required under Regulation 6 of the Waste Management (Collection Permit) Regulations 2007 on the National Waste Collection Permit Office website rather than in national or local newspapers; d) introducing greater scope for interactions with the regulatory authorities to be carried out ‘on-line’; e) making an application available ‘on-line’ on the National Waste Collection Permit Office rather than available for inspection at local authority offices; f) introducing general binding rules for applying standard conditions to a particular class of waste collector permits, any additional requirements could be region specific rather set than at a local authority level; g) allowing permit conditions to be carried on each vehicle without the appendices, as these are readily available on the National Waste Collection Permit Office website; h) allowing a permit holder name or permit number to be displayed on the vehicle – this would reduce the need to reprint new permit numbers on all vehicles in the case where a new permit number is issued; i) making the process of application and renewal (prior to expiry) for a waste collection permit the same procedure, introduce a separate process for reviewing a permit (e.g. whether instigated by an enforcement authority on suspicion of non-compliance or the waste collector in order to surrender or transfer, or amend significantly a waste collection permit) and allow minor technical amendments to be made without the requirement of a full review; 39 j) streamlining/better clarifying the timelines set out in the Waste Management (Collection Permit) Regulations 2007 in terms of applying for a permit, review, submitting annual return data, submissions from third parties in relation to an application for a waste collection permit, etc. (49) Are there any other provisions in the Waste Management (Collection Permit) Regulations 2007 which could be improved / streamlined to reduce the administrative burden of complying with waste collection legislation? 40 9. Providing Your Views The consultation period will close on Friday, 31 January 2014. As previously stated, the questions posed in the paper are intended to facilitate discussion, however, submissions on any issues relating to household waste collection (whether discussed specifically in this paper or not) are now being invited. Please provide responses to this consultation document using the following options: By email to: household.waste@environ.ie By post to: Household Waste Consultation Waste Policy and Resource Efficiency Department of the Environment, Community and Local Government Newtown Road Wexford Should you have any queries about the consultation process, please feel free to enquire using the above contact details. The Department of the Environment, Community and Local Government is subject to the provisions of the Freedom of Information (FOI) Acts 1997 – 2003 and all submissions received in relation to this public consultation will be subject to these Acts. The Department is also subject to the provisions of the European Communities (Access to Information on the Environment) Regulations 2007-2011 and all submission will also be subject to these Regulations. The submissions will also be published on the Department’s website (www.environ.ie) Next Steps Submissions received will inform the drafting of legislation to reform the regulation of household waste collection. 41 Appendix 1 42 Appendix 1 (continued) 43