Sustainability Fund Guidelines February 2012 FOREWORD The Victorian Government recognises the importance of partnering with business, local government and the broader Victorian community to improve our environment, reduce waste and use our resources efficiently. The Sustainability Fund is a perpetual fund that receives money collected from Victorian landfill levies. The purpose of the Sustainability Fund is to support programs and initiatives that facilitate resource efficiency and waste reduction, as well as assisting communities to improve the environment and respond to climate change. These Guidelines ensure that Victorians understand the purpose of the Fund and how monies are administered from the Fund. These Guidelines may be updated at any time in accordance with the requirements set out in the Environment Protection Act 1970. The Hon TED BAILLIEU MP The Hon RYAN SMITH MP Premier Minister for Environment and Climate Change Sustainability Fund – Guidelines 1. THE SUSTAINABILITY F UND Priority Statement It is important that the Fund remains focused The Sustainability Fund (Fund) provides funding on key environmental priorities. To ensure from Victorian landfill levies to programs and that monies from the Fund are strategically government initiatives which, in accordance with applied, the Premier and the Minister will the Environment Protection Act 1970, are publish a “Priority Statement” setting out, in allocated jointly by the Premier and the Minister order of priority, the matters in respect of for Environment and Climate Change (Minister) which the Premier and Minister intend to initiatives which foster: money to be applied from the Fund. If the the environmentally sustainable use of our priorities of the Fund change, a new Priority resources and best practices in waste Statement will be produced. management to advance the social and A draft Priority Statement will be released economic development of Victoria, or and comment invited from the public prior to community action or innovation in relation to being finalised. the reduction of greenhouse gas substance The Priority Statement will be published on emissions or adaptation or adjustment to Sustainability Victoria’s website. The Priority climate change in Victoria. Statement will also be readily available in The Environment Protection Act 1970 sets out paper format and a copy may be requested the Principles of Environment Protection, which from the Fund Secretariat. guide the objectives of sustainable development Guidelines as well as resource use efficiency for Victoria. This document provides guidance to the 2. FUND GOVERNANCE AND Premier and Minister as to how they will PRIORITIES exercise their powers in relation to the application of monies from the Fund. To maximise the effectiveness of the Fund and ensure that a strategic approach is taken to the Advisory Panel application of monies, the Environment An advisory panel appointed by the Minister, Protection Act 1970 requires that a Priority consisting of up to eight people with skills, Statement, Guidelines and an Advisory Panel expertise or knowledge relating to: must be in existence before any funds can be allocated from the Fund by the Premier and the Minister. 2 environment protection and conservation climate change community networks Sustainability Fund – Guidelines issues relating to industry economics and business management finance and law Victoria’s Annual Report has been tabled in local government Parliament, a list of all Fund allocations, the rural and regional affairs, requirements are followed. Sustainability Victoria will report on the allocation of funds in its Annual Report. Once Sustainability Advisory Panel’s recommendations and a list of successful grants will be published on will provide advice to the Premier and the Sustainability Victoria’s website. Minister. The Advisory Panel will make recommendations Who can receive funding? to the Premier and the Minister in relation to the Allocations from the Fund may be made to a application of monies from the Fund. The wide range of incorporated or otherwise functions of the Advisory Panel also include legally constituted entities. These include providing advice on the operation of the Fund community groups, councils, non- Account; on fostering community action or government organisations, businesses and innovation in relation to the reduction of Victorian Government entities. Funding is not greenhouse gas substance emissions or available for individuals, nor can it be used to adjustment to climate change; and on the supplement the core administrative costs of sustainable use of resources or waste an existing organisation. management. The Advisory Panel must also monitor the progress of projects funded from the Contractual obligations Fund. Entities receiving allocations from the Fund are required to enter into appropriate funding 3. FUND EXPENDITURE arrangements that will detail all funding obligations, including the time frame over Fund monies can be expended via two streams. which funding will be available. Recipients of Allocations can take the form of grants to a wide Fund monies will be subject to reporting range of recipients, including community groups, local government, non-government organisations and businesses. In addition, the Premier and the Minister may allocate funding for strategic requirements on the success of the initiative or project, relative to the objectives of the Fund and the agreed deliverables. Funding may be withdrawn if the project fails to initiatives which align with the purpose and deliver on agreed outcomes at review priorities of the Fund. periods. To ensure transparency and accountability of the expenditure of Fund monies, stringent reporting 3 Sustainability Fund – Guidelines Financial limit how closely the benefits of an There is no predetermined limit with respect to applicant’s project align with the the amount of financial support available from priorities of the Fund as defined in the the Fund for individual projects funded as grants priority statement or strategic initiatives. Types of projects that will NOT be considered for grant funding 4. GRANT FUNDING The following applications will not be eligible In making decisions regarding the allocation of for grant funding: Fund monies for grant funding, the Premier and the Minister will consider how the project meets projects that seek retrospective funding for projects or programs that have the priorities for the Fund, as defined in the already started or that have been Priority Statement. Projects may be funded completed; based on recommendations from the Advisory Panel, or the Premier and the Minister may seek applications for funding to supplement advice from the Advisory Panel before allocating the core administrative costs of an Fund monies to a project. existing organisation; projects that duplicate programs already Criteria and conditions for grant funding operating with respect to a specific The purpose of the Fund is to support projects, environmental priority; programs, services or technologies that will benefit Victoria. The project must therefore be projects that are considered inconsistent with Government policy objectives; implemented in Victoria. projects not meeting State and National legislative requirements, and other Funding considerations relevant statutory approvals and permits; In general, funding assessments are based on: and the financial needs of the project in light of the environmental benefits that will be these Guidelines. achieved; applications not made in accordance with the level of support available to the applicant from other funding sources; and 4 Sustainability Fund – Guidelines 5. STRATEGIC INITI ATIVE S In making decisions regarding the allocation of Fund monies for strategic initiatives, the Premier and the Minister will consider how the initiative meets the priorities of the Fund, as defined in the Priority Statement. Projects may be funded based on recommendations from the Advisory Panel, or the Premier and the Minister may seek advice from the Advisory Panel before allocating Fund monies to a strategic initiative. 7. CONTACTING THE SUSTAINABILITY FUND Further information on the Fund is available at www.sustainabilityfund.vic.gov.au The Fund Secretariat can be contacted at: fund@sustainabilityfund.vic.gov.au “Sustainability Fund” or the “Fund” means the fund established within the Environment Protection Fund with money referred to in section 70(3)(aba) of the EP Act (referred to in section 70F(1) of the EP Act as the “Climate Communities Fund Account”). 5