Blue Mountains City Council

The Australian Government’s Clean Energy Legislative Package is complex and presents both challenges and opportunities for BMCC and indeed all local councils.

 

BMCC will be required by law to purchase permits for gas emissions generated at Blaxland landfill once they exceed 25,000 tonnes per year. Alternatively BMCC can invest in infrastructure and services to reduce these emissions to below the carbon pricing threshold. Either way, Council will have increased expenses in responding to the new Clean Energy legislation. Therefore waste fees and charges need to increase to ensure that we are not left with a financial liability that cannot be met.  These fees and charges are also increasing to accommodate the operational costs of running waste management services in the City; the NSW Government Waste & Environment Levy; and increases to GST.

 

Therefore, only a portion of the total increase in BMCC waste fees for 2012/13 relates to the carbon pricing mechanism, this portion being $17 per household bin service, for example, regardless of bin size. A trip to the tip with mixed waste in 2012/13 will cost a minimum of $17.50, up from $13.50. Of this, $1.43 relates to carbon pricing and $4.24 is due to the NSW State Government Waste Levy.

 

It is the case that BMCC will not have a carbon price liability in 2012/13. However, the waste received during 2012/13 will generate gas emissions, contributing to Council’s liability from 2013/14 and 40 years beyond. BMCC therefore, incurs a liability for emissions over a long period of time but only has an opportunity to collect fees to cover that liability when the waste is received. This is why the total increase in waste fees in 2012/13 includes a carbon pricing component.

 

BMCC continues to work proactively to reduce emissions from landfill. The most recent initiative being the investment of up to $120,000 in a trial carbon capture system at Blaxland landfill. We are also investigating opportunities to create carbon credits under the Carbon Farming Initiative. The NSW Government Waste & Environment Levy accounts for a higher component of the total waste fees. This Levy detracts from Council’s ability to invest in the investigation, planning and implementation of emission reduction initiatives.

 

True to our commitment to being a sustainable Council leading a sustainable City, residents can be assured that the Council has set the fees and charges for 2012/13 on the best available information and will continue to take all necessary steps to reduce both waste to landfill and the generation of emissions.

 

For an accurate and detailed account of the proposed waste fees and charges in 2012/13, including the carbon pricing component, and the impact of the Clean Energy legislation on BMCC, I refer residents to the council reports of 23 April 2012 (Items 3 & 9)