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ENVIRONMENT PROTECTION AMENDMENT (BEVERAGE CONTAINER DEPOSIT AND RECOVERY SCHEME) BILL 2011

   Environment Protection Amendment
    (Beverage Container Deposit and
       Recovery Scheme) Bill 2011

                         Introduction Print


               EXPLANATORY MEMORANDUM


                                  General
The Bill amends the Environment Protection Act 1970 to make further
provision for environmentally sustainable uses of resources and best practices
in waste management by establishing a beverage container deposit and
recovery scheme to be administered by the Environment Protection
Authority.

                               Clause Notes
Clause 1    sets out the main purpose of the Bill, which is to amend the
            Environment Protection Act 1970 to establish a beverage
            container deposit and recovery scheme to be administered by the
            Environment Protection Authority.

Clause 2    states that the Act will come into operation on 1 July 2012.

Clause 3    inserts new definitions of the terms authorised collection depot,
            authorised transfer station, beverage, beverage container,
            beverage container environmental levy, import, labelled, refund
            value and Scheme.

Clause 4    inserts a new Division 6 in Part IX of the Environment
            Protection Act 1970 to establish a beverage container deposit
            and recovery scheme.
            New section 52 sets out the objective of the Division, which is to
            promote the principles of environment protection by regulating
            the use, sale and recovery of beverage containers.


571PM1                                1      BILL LC INTRODUCTION 14/6/2011

 


 

New section 52A sets out the purpose of the Division, which is to give effect to the objective specified in section 52, by establishing a Beverage Container Deposit and Recovery Scheme, to be funded by the beverage container environmental levy. New section 52B provides that a Beverage Container Deposit and Recovery Scheme is established. New section 52C sets out the functions of the Environment Protection Authority (the Authority) in administering the scheme. The Authority will manage the operation of the Scheme, collect the beverage container environmental levy, grant exemptions for products that will not require the levy, authorise collection depots and transfer stations to participate in the scheme, enter into agreements with authorised transfer stations and depots, facilitate and promote the Scheme and provide information and advice to the Minister in relation to the operation of the Scheme. It enables levy funds to be used via grants and other financial incentives to encourage the use of recyclable and reusable containers and the increased use of recycled material from beverage containers. It enables levy funds to be used for supporting kerbside recycling services, offsetting the collection industry costs for the operation of the Scheme, product development to improve the recyclability and reusability of beverage containers and other activities and programs connected with recycling which facilitate environmentally sustainable uses of resources and promote best practices in waste management. New section 52D provides that an importer or producer of a beverage container for the purpose of sale within Victoria is liable to pay the beverage container environmental levy, unless they are granted an exemption. Penalty: 2400 penalty units and in the case of a continuing offence a daily penalty of 1200 penalty units for each day the offence continues. New section 52E sets the amount of the beverage container environmental levy at 10 cents. It enables a higher amount to be set by regulation. This section is consistent with the 10 cent levy in the South Australian and Northern Territory container deposit schemes. New section 52F provides that a producer or importer must pay the levy within 14 days after the end of the month in which the beverage container was sold to a wholesaler, retailer or 2

 


 

individual. This section enables the funds to be received by the Authority's Environment Protection Fund before refunds are reimbursed to authorised depots and transfer stations. Penalty: 100 penalty units. New section 52G provides that all beverage containers must be labelled as refundable. The labelling requirements are similar to those required by the South Australian and Northern Territory beverage container schemes. Penalty: 100 penalty units. New section 52H prescribes that a person must not sell a beverage container unless the container is labelled in accordance with the relevant labelling requirements. Penalty: 100 penalty units. New section 52I(1), (2) and (3) provides for the Authority to approve a premises to be an authorised collection depot. The Authority may enter into an agreement with the operation of such depot in respect of the location, operation, and functions of the authorised collection depot. The agreement may include provisions relating to delivery of sorted empty beverage containers to an authorised transfer station, payment by the Authority of refund value pay by the depot, payment of any penalty by the operator for failure to comply with the agreement. New section 52I(4) sets out (but does not limit) the types of collection depots that can be authorised. Depots may involve manual or mechanised handling, including reverse vending machines. Depots may be at council sites, community centres and community based facilities, shopping centres and centre car parks, service stations or other retailers, schools, "drive through" recycling centres and at authorised transfer stations. Depots are intended to collect used beverage containers directly from the public, and to issue refunds under the Scheme. Depots are intended to sort the used containers and deliver to an authorised transfer station. New section 52J(1), (2) and (3) provides for the Authority to approve a premises to be an authorised transfer station. Authorised transfer stations are intended to receive used containers from authorised depots and other large collectors. They will generally not deal directly with the public except via an authorised collection depot on their premises. The Authority may enter into an agreement with the operation of such transfer station in respect of the location, operation, and functions of the 3

 


 

authorised collection depot. The agreement may include provisions relating to receiving and processing empty beverage containers, payment by the Authority of refund value paid by the authorised transfer station, sale of processed materials, payment of any penalty by the operator of the authorised transfer station for a failure to comply with the agreement, the submission of a monthly report to the Authority on the number and types of empty beverage containers received and processed. The reports from authorised transfer stations will provide the Authority with data for reporting to the Minister under new section 52C(1)(i). Any fees or agreements between authorised depots and authorised transfer stations are not part of this legislation. New section 52J(4) provides for an agreement to be entered into under subsection (2) provisions relating to accepting and paying a refund on crushed and broken empty beverage containers using an estimate of refund value. New section 52K prohibits the claim of a refund of the levy on a beverage container which the person knows or has reason to believe was not purchased in Victoria. Penalty: 240 penalty units. It enables the operator of a collection depot to request a person presenting a beverage container for the purpose of claiming a refund of the levy to complete a declaration stating that the person has no reason to believe that the beverage container was not purchased in Victoria. Such declaration is mandatory for any person presenting 3000 or more beverage containers within a 48 hour period to a manual depot. Penalty: 100 penalty units. Where a person has not complied with a request for a declaration, the depot may not refund the levy. Penalty: 100 penalty units. The authorised depot must keep any declaration for three years and make it available for inspection. Penalty: 300 penalty units. These provisions are consistent with the South Australian and Northern Territory container deposit schemes. New section 52L provides that an authorised collection depot or authorised transfer station must pay a refund of the levy to a person returning a used beverage container. Penalty: 35 penalty units. A depot may refuse to accept the container if the container is in an unsafe condition, or the operator has reason to believe that the beverage container was not sold in Victoria, or a request to complete a declaration under section 52K has not been complied with. Reverse vending machine depots may reject 4

 


 

containers which are returned in a condition which prevents the machine from reading the label. New section 52M provides that the Authority must review the amount of the refund value at least once every 5 years. The Authority must have regard to the minimum refund value necessary to maintain the appropriate level of incentive to reuse or recycle, ensure high rates of recovery, reduce litter and litter- related costs, reduce waste, disposal and recycling costs and conserve resources. New section 52N enables the Authority to grant exemptions under new section 52D. This is intended to provide an exemption for beverages sold in containers that are intended for re-use or re-filling by the producer or retailer, and for which a separate deposit and refund scheme is provided. Such exemption is consistent with the principle of wastes hierarchy set out in section 1I of the Act, by providing a financial incentive to re-use containers. New section 52O provides that this Division does not extend to existing beverage containers imported into Victoria or produced in Victoria before the commencement of the Act. Clause 5 amends section 70 of the Environment Protection Act 1970 to enable the Environment Protection Fund to receive beverage container deposit levy monies and apply those monies for the purposes of the Scheme. Clause 6 amends section 71 of the Environment Protection Act 1970 to enable regulations to be made to prescribe a class of beverage not to be a beverage for the purpose of the definition of beverage, prescribe a class of beverage containers not to be a beverage container for the purposes of the definition of beverage container, prescribe a higher beverage container environmental levy amount, prescribe different labelling requirements and prescribe criteria and considerations for beverages exempted from the scheme under section 52N. Clause 7 provides for the repeal of this amending Act on the first anniversary of the day on which it receives Royal Assent. The repeal of this Act does not affect the continuing operation of the amendments made by this Act (see section 15(1) of the Interpretation of Legislation Act 1984). 5

 


 

 


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