Product Stewardship (Televisions and  p ) g Computers) Regulations  6 October 2011

National Waste Policy – agreed by COAG in October  2010  2010 Key Direction 1 – Taking  Responsibility bl Product Stewardship Act  P d t St d hi A t 2011 Regulations for National TV  p and Computer Scheme

Product Stewardship p Product stewardship is an approach to reducing the  environmental and other impacts of products by environmental and other impacts of products by  encouraging or requiring manufacturers, importers,  distributors and other persons to take responsibility for  p p y those products. 

Co‐regulation A co‐regulatory approach to product stewardship involves a  combination of government regulation and industry action, combination of government regulation and industry action,  whereby government sets the outcomes and requirements  , y y g to be met, while industry has flexibility in determining how  those outcomes and requirements are achieved. 

Product Stewardship legislation  The Product Stewardship Act 2011 (the Act) commenced 8 August  Required to publish an annual list of products being considered for  coverage under the Act – by  2012/13 F/Y. / /

 Likely we will publish the National Waste Policy Implementation  list this year – y includes TVs, computers, tyres, Mercury containing  , p , y , y g lights, packaging.

 Early list is important given the requirement that 12 months must  elapse between publishing a notice that a products is being  elapse between publishing a notice that a products is being considered for regulation, and making regulations

 Establish an Advisory Group to advise on products that should be  considered – id d later this year. l t thi

 Consult on Voluntary Accreditation process – later this year.

Product Stewardship (Televisions and Computers) Regulations

 Environment Protection and Heritage Council agreed televisions and  computers would be first covered by the Act – computers would be first covered by the Act based on a regulation  based on a regulation impact statement (www.ephc.gov.au)

 Co‐regulatory: government sets the outcomes, industry works out how to  g y g , y achieve the outcomes.

 Industry run and funded collection and recycling of televisions, computers  and computer products (product identified in Schedule 1 of regulations)  d t d t ( d t id tifi d i S h d l 1 f l ti )

 liable parties must join an Approved Arrangement (Section 18 of the Act)   Approved Arrangement ‐ a set of activities or measures designed to  achieve the outcomes (ie reasonable access requirement, targets)  in  regulations on behalf of one or more liable parties

 Arrangement Administrator – administers an arrangement on behalf of  one or more liable parties and is required to take reasonable steps to  achieve the outcomes set out in regulations. achieve the outcomes set out in regulations.

Implications for stakeholders Implications for stakeholders

 Regulations apply only g pp y y to importers and domestic  p manufactures of covered products above the  threshold, arrangements and arrangement  administrators

 Does not change existing regulatory and policy  framework

 Opportunities for third party service providers  (including local government)

 Opportunity for the community to appropriately  recycle TVs and computers

Liable parties (section 18)  A person that imports or domestically manufactures covered  products – computers, computer products and televisions.

 Liable parties must be a member of an approved co‐regulatory  arrangement 

 Failure to meet this obligation could result in substantial civil  Failure to meet this obligation could result in substantial civil penalties (section 18(1) and 43 of the Act)

 Small business protected by an import/manufacture threshold p y p  The draft regulations include the following thresholds            (Reg 2.02(2)):   Televisions 5,000 units  Computers/printers 5,000 units  Computer products 15,000 units C t d t 15 000 it

Outcome: Reasonable access to collection  services       (Reg 3.03)

 Reasonable access defined in the Regulations using a set  g g of metrics

 Requires reasonable access to collection services is 

available in metropolitan, regional and remote areas of  available in metropolitan regional and remote areas of Australia by 1 July 2013

 Arrangement Administrators have flexibility in the type  g y yp of collection services they offer, 

 Metrics establish an objective basis for the Regulator to  assess for compliance f li

 Coverage will also be driven by rising recycling targets  over time over time

ABS Remoteness Classification Structure

Metrics  i  Metro areas: at least one service for every 250,000 people in  each metro area (min 55 services per arrangement) each metro area (min. 55 services per arrangement)

 Inner Regional areas: at least one service within 100km of  every town of 10,000 people or more (min. 24 services; 94%  of population with access within 100km)

 Outer Regional areas: at least one service within 150km of  every town of 4,000 people or more (min. 21 services; 94% of  every town of 4 000 people or more (min 21 services; 94% of population with access within 150km)

 Remote areas: at least one service within 200km of every  town of 2,000 people or more and at a frequency of at least  once every two years (min. 24 services every 2 years; 77% of  population with access within 200km)

Outcome: Recycling Targets (Regulations Division 3.3)  Recycling means the initial processing of a product, including disassembly  or shredding, for the purpose of recovering useable materials

 Scheme target will be set as a percentage of the waste estimated to be  generated in the year (Schedule 2) generated in the year (Schedule 2)

 Percentage targets for each product class rise every year to 80% by 2021  Incentives are built in to credit overachievement and action from start of  regulations (eg recycling from start counts toward first target June 2013)

 Waste arising is estimated on the basis of recent imports (three year  Waste arising is estimated on the basis of recent imports (three year average multiplied by a scaling factor of 0.9 to account for growth/export)

 Recycling target for a co‐regulatory arrangement will be allocated based  on import/manufacture share of members

 Import/manufacture share of each member to be based on number of  units imported/manufactured in each tariff code (converted to weight ‐ units imported/manufactured in each tariff code (converted to weight Schedule 2)

TV waste profile to 2030 TV waste profile to 2030

Residential computer waste profile to 2030 Residential computer waste profile to 2030

Business computer waste profile to 2030 Business computer waste profile to 2030

Source: TV and Computer Recycling Targets and Scheme Design, Meta Economics (analysis commissioned by DSEWPaC, 2011)

Modelled Current Capacity vs target pathways Modelled Current Capacity vs target pathways

Million Units

Source: Wright Rawtec Report (2010)

Units Presenting for Recycling

50

40

30

20 Potential Capacity 11,488,000

10 Current Capacity 8,293,000

0 1

2

3

Demand Scenario:

4 High

5

6 Moderate

7 Medium

8

9

This graph shows the  differences in forecast  recycling take‐up between the  li k b h High and Moderate Demand  Scenarios on one hand, and  Medium and Low Demand  Medium and Low Demand Scenarios on the other hand.  

10 Year

Low

Assumes: a substantial increase in TV and computer recycling – from  just over 4 million units/year (25,000 tonnes) currently to between 33  and 41 million units/year (116 000 to 169 000 tonnes/year) by year and 41 million units/year (116,000 to 169,000 tonnes/year) by year  10.

Scheme Recycling Target pathway Target pathway based on moderate capacity utilisation (current  recycling rate is 17% of estimated end of life products by weight) Scheme year

Targett (percentage T ( t off estimated waste)

2012-13

30

2013-14

33

2014-15

35

2015-16 2015 16

37

2016-17

40

2017-18

48

2018-19

56

2019-20

64

2020-21

72

2021- 22

80

Estimated recycling from forecast of waste  generated

Material recovery target (Reg 3.06) – regulation  impact assessment required  Material recovery target is the proportion of products in a class  of products to be sent after recycling for processing into useable  materials in a particular financial year

 Consultation paper considered including KPI. Feedback through  the consultation process showed there is support for a target.

 Mass Balance report estimates overall TV/computer material  Mass Balance report estimates overall TV/computer material recovery rate to be 91%, but: Range of recovery rates (from 74% to 99%) Poor reporting and data quality and discrepancies in 

measurement

 75% material recovery target to be applied from year 3 to allow  75% material recovery target to be applied from year 3 to allow development of a consistent reporting methodology

 Annual reporting will be required on level of material recovery

Timeline for the National Television and Computer  p Product Stewardship Scheme Regs in effect ff t Regs approved

Formal notice to liable parties: 6 months th tto become member of an approved arrangement Regs tabled in Parliament

Jun 11

Jul 11

Aug 11

Sep 11

Oct 11

Consultation Exposure Draft Regulations Bill passed by Parliament 22 Jun 2011

Product Stewardship Act commenced 8 Aug 2011

Nov 11

Dec 11

Jan 12

Feb 12

Application and h assessmentt phase

Arrangement target calculated based on membership

Arrangements commence services & Enforcement phase commences

Mar 12

Apr 12

May 12

Closing Cl i d date t ffor applications

Jun 12

Jul 12

Aug 12

Sep 12

July 2012 – June 2013 Fi t Target First T t Period P i d

Oct 12

Next steps

 Written submissions received by Monday 10 October are  currently being analysed l b l d

 Regulations finalised, taking into account public  submissions and comments submissions and comments

 Assuming consultation does not result in many changes  Regulations expected to commence in November 2011 Regulations expected to commence in November 2011

 Further information www.environment.gov.au/ewaste email: [email protected]