NORTH LONDON WASTE AUTHORITY REPORT TITLE: STRATEGY UPDATE REPORT OF: PROCUREMENT DIRECTOR FOR SUBMISSION TO: NORTH LONDON WASTE AUTHORITY DATE: 22nd June 2012 SUMMARY OF REPORT The report provides an update on waste, energy, planning and finance strategy issues that are relevant to the Authority and its current procurement exercise. RECOMMENDATIONS The Authority is recommended to: 1. Note the HMRC position on Landfill Tax rates as outlined in Section 2; 2. Delegate authority to the Director of Procurement to provide responses to the following three Enfield planning documents in line with the information provided in Section 3: Enfield’s Draft Development Management Document; Enfield’s Central Leeside Area Action Plan; and Draft Meridian Water Masterplan Supplementary Planning Document. 3. Approve the officer response as submitted to meet the consultation response deadline for the Haringey Local Plan Strategic Policies document (formerly the Core Strategy) as summarised in Section 4 and attached at Appendix 1; 4. Delegate authority to the Director of Procurement in consultation with the Chair and Vice Chair to provide a consultation response to the Waste Electrical and Electronic Equipment: call for evidence (Section 5); 5. Delegate authority to the Director of Procurement to provide a response to the forthcoming Government consultation on waste wood restrictions to landfill in line with the information provided in Section 5; and 6. Delegate authority to the Director of Procurement to provide a response to the forthcoming Government consultation on the MRF Code of Practice in line with the information provided in Section 5. SIGNED: …………Director of Procurement th DATE: 13 June 2012 ………………………………. 1. PURPOSE OF REPORT 1.1 This report provides an update on strategy issues that are relevant to the Authority’s operations and procurement. This includes: Government changes to Landfill Tax (Section 2); Three Enfield planning documents (Section 3); Haringey Local Plan: Strategic Policies (formerly Core Strategy) (Section 4); Detail on forthcoming consultations including the waste electrical and electronic equipment: call for evidence consultation; restricting wood waste to landfill and the MRF code of practice. 1.2 The Authority is invited to note the report except where specific delegated authority is required to respond to consultations or where a draft consultation response is attached for approval. 2. CHANGES TO LANDFILL TAX 2.1 In May 2012, the HMRC issued a brief for landfill site operators and their advisors. The brief sought to clarify the landfill tax rates (i.e. the lower landfill tax rate of £2.50/tonne or the standard landfill tax rate of £64/tonne) available for different materials. This is to ensure that all landfill operators consistently apply the landfill tax legislation, allowing operators to compete fairly. It had been reported that some landfill operators were incorrectly applying the lower rate. The brief also provided guidance on the evidence that would need to be supplied to demonstrate that the lower landfill tax rate would apply. 2.2 The HMRC has clarified that the standard rate will apply to inert materials (e.g. fines, rock and soil) that are contaminated with other waste types, for example, organic waste and plastics. This is important to the Authority as inert materials sent to landfill from waste transfer stations, MRFs and HWRCs that are mixed with other wastes will now be charged at the full rate. The lower rate will only apply if materials can be shown to be genuinely inert materials. 2.3 Officers are currently reviewing the HMRC guidance and will obtain clarity from contractors on which materials will operationally attract the standard rate of landfill tax. However, the initial view is that it will not have significant impact on current operations There may also be the opportunity to use the existing energy from waste facility to process any commercial wastes contaminated with other waste types that will now be subject to the standard landfill tax rate. Officers are discussing with bidders on it’s procurement if the update will have any impact on their proposals. 2.4 The HMRC briefs are not consultation documents so no response is required. However, if the changes are of significance to the Authority’s ongoing operations and procurement, officers will discuss any concerns with the LGA. 3. ENFIELD PLANNING DOCUMENTS Draft Development Management Document (DMD) 3.1 Enfield is currently consulting on its proposed draft development management document (DMD). This document is relevant to the Authority as it sets out the policies against which any planning application at the Edmonton EcoPark site will be determined. 3.2 Officers have reviewed this document and consider that while the draft policies are in line with a standard approach from local planning authorities, some of the proposed policies may impact the Authority’s plans for the EcoPark site and the Authority is recommended to delegate authority to the Director of Procurement to submit a consultation response to the draft DMD on the basis that: There will be an emphasis on achieving good design for any new developments along the River Lee, which includes any new developments on the EcoPark site. This policy should be supported, but further information should be provided as how good design should be approached for different building types and land uses. Within the draft DMD, there is a policy that sets standards related to the Buildings Research Establishment Environmental Assessment Method (BREEAM) for the sourcing of materials. This policy should be supported, but recommend that an equivalent standard can be used where relevant. Policy within the draft DMD relating to tall buildings should be made more clearly supportive for large buildings in industrial areas. Energy efficiency standards are proposed within the draft DMD. Further information is required to understand how these would apply to new waste treatment facilities on the EcoPark site. Within the draft DMD, there is a policy that requires all new developments to be “air quality neutral”, as far as possible by applying best available techniques. It is recommended that further information is provided on what this means and whether there will be different targets for different building types. Within the draft DMD, there is a policy requiring high water efficiency standards which proposes a requirement for a greywater and rainwater harvesting feasibility study for all large non-residential development. It is recommended that further clarity is provided for industrial water uses and whether alternative standards would apply. Within the draft DMD, there is a policy which supports the use of freight by water at the EcoPark. This policy should be supported. Some requirements are not reasonably related to the development of the EcoPark, for example the requirement that new developments should contribute to improving green infrastructure such as parks, allotments, recreation grounds and play areas and the draft DMD should take this into account. Discover Central Leeside 3.3 This interim Area Action Plan (AAP) is relevant to the Authority as it provides a framework for development in and around the EcoPark area. Generally the AAP is complementary to the Authority’s plans for the EcoPark site. 3.4 The Authority is recommended to delegate authority to the Director of Procurement to submit a consultation response to the interim AAP on the basis that: The Edmonton EcoPark forms a key site within the AAP area and this document acknowledges that the site is the flagship waste treatment site for north London and that this use will be its core purpose. The document also emphasises the potential of the proposed Upper Lee Valley Decentralised Energy Network (ULV DEN) and links the EcoPark as the primary energy source for the DEN. The supportive language on the provision of new waste facilities is to be welcomed, but a concern remains on whether the ULV DEN will be delivered. Consideration will also need to be given as to how the ULV DEN will impact the planning of new waste management developments on the site. The Interim AAP also highlights that there will be increasing pressure on the design and management of the EcoPark, as new residential developments are located closer the site and as expectations of design quality rise. It is important to fully understand what these expectations are. The document shows proposed footpaths running across the southern end of the EcoPark site and along the eastern bank (i.e. the EcoPark side) of Salmon’s Brook. This appears to replicate the proposal within the GLA’s Upper Lee Valley draft Opportunity Area Planning Framework (ULV OAPF). In line with the Authority’s previously submitted (please refer to December 2011 Strategy Update) response to the ULV OAPF, this should be opposed on the grounds of health and safety, lack of desire lines and incompatibility with development requirements for the site. The leisure role of the River Lee and the paths along it are highlighted and proposed to be strengthened within the document. Although river freight is also supported, there is the concern that the latter opportunity will be undermined by an expectation that the first priority is for the amenity and convenience of waterside users and leisure uses of the river itself. Enfield Meridian Water Supplementary Planning Document (SPD) 3.5 Enfield is currently consulting on the masterplan for the Meridian Water area, which will be adopted as a Supplementary Planning Document (SPD). The masterplan does not create policy, but explains how the key objectives established in the Core Strategy for the Meridian Water Place Shaping Area could be delivered. Therefore, it will be a material consideration in the determination of planning applications. 3.6 The Authority has previously responded to an earlier consultation on the Meridian Water Masterplan (please refer to September 2011 Strategy Report). This response commented specifically upon the practical barriers to the development of a DEN to supply the Meridian Water development as well as expressing concern that development proposals for new bridges across the River Lee from and to the development should not restrict the potential movement of freight along the river 3.7 The Authority is recommended to delegate authority to the Director of Procurement to submit a consultation response to the Meridian Water SPD on the basis that: Images of design proposals for bridges to and from the development such as Angel Works Bridge still show bridge bases close to the water level, raising concerns as previously noted about the restrictions they might impose upon use of the river Lee for freight transport to and from the EcoPark which is north of the site. The SPD envisages that Meridian Water will create a new energy demand in the area and that a resilient and secure energy system will be critical to the sustainability of masterplan. The opportunity to create a DEN at Meridian Water, fitting with Mayoral objectives, reducing carbon emissions, supporting new industries and providing communities and businesses with reliable and efficient energy supplies is supported within the SPD. The EcoPark is seen as providing an opportunity to kick start the DEN but as noted above concern remain whether the ULV DEN will be delivered. Consideration will also need to be given as to how the ULV DEN will impact the planning of new waste management developments on the site. The SPD notes that the Authority “is in the process of procuring new waste services, which will include redeveloping the 43 ha (EcoPark) site to accommodate a range of waste recycling facilities and a Solid Recovered Fuel plant”. A response is required to confirm that Authority fuel generated from the Waste Service Contract will be committed under the procurement to the Fuel Use Contractor and will therefore not be available. 4. HARINGEY’S LOCAL PLAN: STRATEGIC POLICIES 4.1 This is the new name for the Haringey Core Strategy, which is being reviewed in light of the publication of the Government’s National Planning Policy Framework (NPPF) and following an Examination in Public (EiP) of the Plan. 4.2 The majority of the changes are word replacements e.g. changing all references from ‘Core Strategy’ to ‘Local Plan Strategic Policies’. There is also a proposal to insert a new paragraph in the document explicitly supporting the presumption in favour of sustainable development which is enshrined in the NPPF. 4.3 The Authority has previously provided a response to the Core Strategy consultation (June 2010) and specifically supported the allocation of the Pinkham Way site as a Locally Significant Industrial Site (LSIS). This was one the key issues on which the EiP was held earlier this year. 4.4 In the light of the nature of the proposed changes and modifications officers have submitted a response to the Local Plan Strategic Policies document which principally endorses the changes proposed and reiterates the points made in previous representations. 4.5 To meet the deadline for the response officers have submitted a response which is attached at Appendix 1. The Authority is recommended to approve the officer response at Appendix 1. 5. FORTHCOMING CONSULTATIONS Waste Electrical and Electronic Equipment: Call for Evidence 5.1 The Department for Business Innovation and Skills (BIS) is calling for evidence from electronic producers and producer compliance schemes on the costs of compliance with the WEEE regulations. There are concerns within the industry that it is costly for businesses to comply with the WEEE regulations. The majority of obligated companies pay for the cost of WEEE reuse and recycling through producer compliance schemes. Typically producer compliance schemes contract with local authorities to ensure that sufficient WEEE is collected to meet the statutory obligations for the reuse and recycling of WEEE. The NLWA has a contract with a producer compliance scheme on behalf of the seven north London Boroughs. Therefore, the consultation may be relevant to the Authority’s ongoing operations and procurement if it potentially impacts the service provided by the producer compliance schemes. 5.2 Officers are currently reviewing the consultation document and it is recommended to delegate authority to the Director of Procurement in consultation with the Chair and Vice Chair to submit a consultation response if necessary. Restricting Wood Waste to Landfill 5.3 On 12 June, the Government announced that an informal consultation will be launched in July 2012 on restricting waste wood to landfill. 5.4 The wood waste market is changing significantly with the development of higher value applications such as panelboard and animal bedding which is leading to higher quality standards for wood waste segregation. There is also a rapidly increasing demand for wood-based biofuel, including a new ‘woodfuel’ hub/distribution centre in north London. 5.5 The main route for collecting municipal dirty, i.e. treated and painted and clean (untreated or unpainted) wood waste is via the network of HWRCs, with a proportion of arboricultural wood collected either via the HWRC network or by green garden waste collection services. The remainder is furniture for recycling or reuse, and a proportion of wood waste will also be disposed as residual waste. 5.6 The Authority’s reference case for the Waste Services Contract procurement is consistent with restricting wood waste to landfill. All the existing HWRCs in north London already segregate wood waste and the Constituent Boroughs are engaging proactively with the London Reuse Network which is expanding furniture reuse services across London. 5.7 The Authority is recommended to delegate authority to the Director of Procurement to submit a consultation response to the informal consultation on restricting wood waste to landfill the basis that whilst a restriction on wood waste to landfill would mean increased competition of supply of material to recycling and reuse applications, overall the potential introduction of wood waste restrictions to landfill can be supported. MRF Code of Practice 5.8 On 12 June, Government announced that a consultation on the MRF code of practice will be launched in August 2012. 5.9 Officers have previously reported to the Authority on the proposed MRF code of practice (please refer to June 2011 and April 2012 Authority Strategy Update reports). 5.10 The aim of the MRF code of practice will be to address the performance of co-mingled collections, which has become increasingly important due to the proposed change of the transposition of the Waste Framework Directive. The code is expected to be developed with input from the Environmental Services Association (ESA) and industry and will initially be voluntary for MRF operators to sign up to and is likely to become mandatory. 5.11 It is anticipated that the code will include requirements for the measurement of the quality of input and output material as this will give users of MRF’s confidence contamination levels. in the quality of recyclates and 5.12 Both of the Authority’s existing MRF services suppliers have confirmed that they welcome the proposals for an industry-led code of practice at MRFs and that they support a code of practice which assists with confirming the quality of MRF outputs. To date the NLWA feedstock supplied to the MRFs has been of high quality and it is not anticipated that the introduction of a code of practice, which will include requirements for measuring the quality of input material as well as output material, would cause difficulties for the Authority or the constituent boroughs’ collection services. 5.13 As part of the procurement process for its new Waste Management Contract, the Authority has set requirements on the quality of input and output material to and out of any MRF used. These requirements are in line with good industry practice and should the code become mandatory Waste Service Bidders will be required to achieve the requirements of the code. 5.14 The Authority is recommended to delegate authority to the Director of Procurement to submit a consultation response to the consultation on the MRF code of practice the basis that if the code is in line with good industry practice it will be supported. 6. LEGAL ADVISER COMMENTS The Legal Adviser has been consulted and has no comments to add. 7. FINANCE ADVISER COMMENTS 7.1 The Financial Adviser has been consulted and has no comments to add. REPORT ENDS Contact: Tim Judson Director of Procurement Mobile 07748 656 467 Tim.Judson@Camden.gov.uk Local Government Act 1972- Access to Information Documents used: HMRC (2012) Revenue and Customs Brief 15/12. Landfill Tax: material used on a landfill site and classification of waste HMRC (2012) Revenues and Customs Brief 18/12. Landfill tax: further clarification on Revenue and Customs Brief 15/12 London Borough of Enfield (May 2012) Discover Enfield, Enfield’s Draft Development Management Document (DMD) – ‘Planning a better Enfield with you’ London Borough of Enfield (May 2012) Discover Central Leeside - Towards a draft Area Action Plan – ‘Planning a better Enfield with you’ London Borough of Enfield (May 2012) Meridian Water, Supplementary Planning Document, Draft Upper Lea Valley boroughs: Enfield, Hackney, Haringey and Waltham Forest and the GLA family: Transport for London (TfL), the London Development Agency (LDA) and the Mayor of London (November 2011) Upper Lee Valley Opportunity Area Planning Framework – Consultation draft London Borough of Enfield (November 2010) The Enfield Plan – Core Strategy 2010-2025 (Core Strategy) Development Plan Document (DPD) London Borough of Haringey (April 2012) Haringey’s Local Plan (formerly the Local Development Framework), National Planning Policy Framework – Proposed Changes to Haringey’s Local Plan Strategic Policies (formerly the Core strategy). Available at: http://www.haringey.gov.uk/index/housing_and_planning/planningmainpage/policy_and_projects/local_development_framework/corestrategy.htm Department for Communities and Local Government, (March 2012) National Planning Policy Framework. Available at: http://www.communities.gov.uk/publications/planningandbuilding/nppf Department for Business Innovation and Skills (May 2012) Waste Electrical and Electronic Equipment: call for evidence. Available at: http://www.bis.gov.uk/Consultations/waste-electrical-and-electronic-equipmentcall-for-evidence?cat=open APPENDIX 1: OFFICER RESPONSE TO HARINGEY’S LOCAL PLAN STRATEGIC POLICIES (FORMERLY THEIR CORE STRATEGY) By email to: ldf@haringey.gov.uk LDF Team London Borough of Haringey 6th Floor River Park House 225 High Road Wood Green London N22 8HQ 13th June 2012 Dear Local Development Framework Team, Ref: Consultation on Haringey's Local Plan: Strategic Policies (formerly Core Strategy) The North London Waste Authority (NLWA) understands that the LB Haringey is consulting on the former Core Strategy, now the Haringey Local Plan: Strategic Policies document in the light of the publication of the NPPF and the Planning Policy for Traveller Sites and provides an officer response below. Members will review the response at the next Authority meeting on 22nd June; any further changes to this response will be submitted thereafter. As the proposed changes outlined in the consultation documents, including the Schedule of Modifications are principally factual changes to update the document in the light of the publication of national policy and framework publications, the Authority has no specific comments upon the changes proposed. Accordingly the Authority supports the changes that are outlined in the consultation documentation – these updates are necessary to bring Haringey’s Local Plan: Strategic Policies in line with national guidance. The NLWA submitted a representation on the Core Strategy Proposed Submission in June 2010 and further wrote in support of the document in November 2011. A NLWA officer additionally attended the EiP of the then Core Strategy in March 2012. We reiterate our previous comments below: Specifically we support the designation of the Former Friern Barnet Sewage Works as a Locally Significant Industrial Site (LSIS). The NLWA is a part owner of this site, and has submitted a planning application for the site to be used for a waste facility and vehicle depot in partnership with LB Barnet, which is currently on hold, pending the outcome of the North London Waste Plan EiP. The site is already designated in Haringey’s UDP as a Defined Employment Area (Employment Location) and changing the classification to LSIS will provide the appropriate level of protection to the long term future of this site and facilitate bringing it back into beneficial use. The site’s use as an industrial area is well established, having been previously used as a sewage treatment works (STW) and landfill site. The remnants of the STW are still visible at the northern end of the site. We consider that the site is suitable for designation as a LSIS use for the following reasons: it is a brownfield site; it has good access to the adjacent North Circular; the majority of the site is in Flood Zone 1; beyond immediate transport corridors it is already adjacent to the Bounds Green Industrial Estate and Friern Bridge Retail Park; It does not have any national or international environmental, archaeological or heritage designations; it is a suitable size for a LSIS; and it is separated from residential neighbours by the north circular road and the retail park to the north, by the railway and commercial area to the east, by the golf club to the south and by Hollickwood Park to the west Following an extensive site selection and consultation process, the site has been identified as being suitable for waste use in the North London Waste Plan (NLWP) Submission Version. The characteristics of a waste management facility are considered to strongly reflect those of many industrial activities, and the compatible allocation in the NLWP therefore serves to reinforce that the site is correctly designation in the Core Strategy. Finally, the designation of Pinkham Way as a LSIS is also consistent with the recently adopted London Plan. Policy 4.4 requires boroughs to work with the Mayor and other partners to “a adopt a rigorous approach to industrial land management to ensure a sufficient stock of land and premises to meet the future needs of different types of industrial and related uses in different parts of London”. The Mayor’s Industrial Capacity SPG (2008) elaborates on this policy and lists a number of criteria in paragraphs 4.11 – 4.13 which may justify the retention or release of a site in industrial use. The criteria are based on general economic and land use factors and indicators of industrial demand. In developing criteriabased policies, boroughs should seek to retain those sites in industrial use that are functionally the most important for industrial users. Pinkham Way site scores well when considered against the majority of these criteria, but in particular its designation meets the following criteria: meets demonstrable local strategic long term demand for industrial development and/or long term strategic demand; meets demand and addresses the particular needs of waste management, recycling, energy, transport and utilities and enabling waste to be managed in one of the nearest appropriate installations; is well located in relation to the strategic highway network or local highway network, in particular causing minimal traffic impact in residential areas; offers potential for 24-hour working, or provides facilities for ‘bad neighbour uses’ without detriment to residential amenity, being well screened from neighbouring uses, particularly residential areas; provides sufficient space for adequate operational parking and turning space for goods vehicles; and has been vacant for a considerable period (normally at least two years, and up to five years in areas of generally strong demand), without realistic prospect of industrial re-use. Please do not hesitate to contact me should you require any further information. Yours sincerely David Beadle Managing Director