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Recycling Modernisation Fund Application.Pdf CITY PLANNING, ECONO MIC DEVELOPMENT & EN VIRONMENT 10 AUGUST 2021 6.4 Covering Report Refer to Confidential Agenda in accordance with Section 254J (3) (g) of the Local Government Regulation 2012 RECYCLING MODERNISATION FUND APPLICATION REPORT OF: Health, Environment & Waste Manager REPORT OVERVIEW EXECUTIVE SUMMARY In June 2021, Logan City Council, Ipswich City Council and Redland City Council each resolved to progress to the Early Tenderer Involvement Phase for the procurement of a Material Recovery Facility under the sub-regional waste alliance of Councils (the Alliance) process. On 13th July 2021, the Queensland Recycling Modernisation Fund (QRMF) opened for applications. Attachment 1 contains the QRMF Guidelines. The objective for the QRMF is to support the waste export ban, deliver against Queensland Government waste diversion targets and stimulate investment, growth and jobs in the domestic recycling industry. This report seeks Council’s endorsement to delegate authority to the Chief Executive Officer to complete and submit a funding application under the QRMF for a new Material Recovery Facility project on behalf of the Alliance Councils. Criteria: Legislative - It is a legislative requirement that cannot be delegated CORPORATE PLAN PRIORITY Environment (EN) CONFIDENTIAL AGENDA INFORMATION It is recommended that this report be considered in a closed session pursuant to Section 254J of the Local Government Regulation 2012 (Qld) for the reason(s) that the matter involves: Section 254J (3) (g) negotiations relating to a commercial matter involving the local government for which a public discussion would be likely to prejudice the interests of the local government It is considered necessary to take the discussion of this report into a closed session as the confidential attachments contain commercial-in-confidence financial information regarding a current procurement. RECOMMENDATIONS IT IS RECOMMENDED:- For consideration. Report Page 1 of 4 CITY PLANNING, ECONO MIC DEVELOPMENT & EN VIRONMENT 10 AUGUST 2021 REPORT DETAILS INTERESTED PARTIES • Commonwealth Department of Agriculture, Water & Environment • Queensland Government Department of Environment & Science • Queensland Government Department of State Development, Tourism & Innovation • Queensland Treasury Corporation • Ipswich City Council • Redland City Council • Local Government Association of Queensland • South East Queensland Council of Mayors • Waste Management and Resource Recovery Association of Australia • Waste & Recycling Industry Queensland • Australian Consumer and Competition Commission • Waste consultancy sector PURPOSE OF REPORT/BACKGROUND QRMF Background The QRMF is a co-contribution fund between the Australian and Queensland Governments under a National Partnership Agreement, with the balance of funding obtained from applicants. The Australian and Queensland Governments will each invest $20 million in the $40 million fund and applicants will match this to deliver a total of $80 million in new recycling investment in Queensland. The objective for the QRMF is to support the waste export ban, deliver against Queensland Government waste diversion targets and stimulate investment, growth and jobs in the domestic recycling industry. The aims are to build processing capacity and markets for recycled products and support innovative new infrastructure to sort, process and remanufacture waste plastics, mixed and unsorted paper and cardboard, unprocessed glass or whole used tyres. Alignment of Alliance work to date and the aims of the QRMF The Alliance arrangement and the work undertaken so far demonstrates the commitment and intent of the Alliance Councils to collaborate in supporting national, state and SEQ recycling target outcomes. There is strong alignment with the Alliance project as a key outcome sought through the QRMF is acceleration of projects that address critical infrastructure gaps in Queensland’s waste management and resource recovery industries. The Alliance has a clear path forward to procuring this infrastructure, subject to the agreed milestones being approved by Councils. Presently, the Alliance Councils are progressing the early tenderer involvement phase involving the shortlisted proponents for a materials recovery facility (MRF). In order to submit the application, evidence must be provided that the project is supported and that the applicant can fund the project costs not covered by the grant funding. For local government applicants, this will be an endorsement of the project from elected members (through Council resolution). ANY PREVIOUS COUNCIL DECISIONS At its meeting of 26 May 2021 (Minute 221/2021), Council resolved to progress to the Early Tenderer Involvement Phase a Material Recovery Facility, subject to minimum ongoing participation thresholds being reached as a result of the decisions of other Sub-Regional Waste Alliance Councils. Since that time both Redland and Ipswich City Councils have resolved to progress this solution type and there are now three Alliance Councils moving forward with the procurement process. Report Page 2 of 4 CITY PLANNING, ECONO MIC DEVELOPMENT & EN VIRONMENT 10 AUGUST 2021 FINANCIAL/RESOURCE IMPLICATIONS This information is confidential and is included in the confidential attachments to this report. RISK MANAGEMENT IMPLICATIONS This information is confidential and is included in the confidential attachments to this report. LEGAL/POLICY There are no legislative requirements associated with the application to the QRMF. Regional groups of councils are encouraged to apply, but the guidelines state that one organisation should be identified as the lead applicant and administrator of the project. Legal advice has been obtained to confirm that the executed Heads of Agreement and Australian Competition and Consumer Commission (ACCC) authorisation together with this Council resolution will be sufficient evidence for Logan City Council to submit the application on behalf of the Alliance Councils. Alignment with Council's Policy and Plans An application under the QRMF aligns with the following Corporate Plan 2021-2026 focus area and key initiatives: Focus Area 3 – Environment: The value of our varied and thriving natural environment is core to our identity, lifestyle, wellbeing and economy. We will prioritise activation, community connection and enhancement of our rivers, waterways and habitat corridors and the wildlife within them. We will consider the environment holistically and consider impacts broadly in terms of sustainable development, climate and resource recovery. Key Priority 3.7: Increase resource recovery, recycling and landfill diversion through improvements to our collection service and waste infrastructure, and through regional partnerships. An application also aligns with SEQ Waste Plan target end state to have increased recycling sorting and processing capacity in the region by 2030. COMMUNITY AND OTHER CONSULTATION Consultation Consulted Comments/Actions Date Waste alliance Project 14 July 2021 Discuss the project readiness to apply for team QRMF funding and broader context of City Deals Advocacy Program 15 July 2021 Meeting with Advocacy Program to discuss the application for QRMF funding Council of Mayors SEQ 15 July 2021 Consulted with Council of Mayors to seek clarification on the City Deal Finance Branch 16 July 2021 Discuss the financial aspects of the QRMF funding Queensland Government 21 July 2021 Online meeting with funding program team Department of State from DSDILGP to seek clarification on Development, application guidelines and merit criteria for Infrastructure, Local QRMF Government and Planning (DSDILGP) ELT briefing 29 July 2021 Update regional procurement process for MRF and QRMF Report Page 3 of 4 CITY PLANNING, ECONO MIC DEVELOPMENT & EN VIRONMENT 10 AUGUST 2021 CONCLUSION This report seeks Council’s endorsement to delegate authority to the Chief Executive Officer to complete and submit a funding application under the QRMF for a new Material Recovery Facility project on behalf of the Alliance Councils. REPORT PROPERTIES Report Attachments Number Attachment Title Attachment 1 Queensland Recycling Modernisation Fund Program Guidelines Report Authorisations Authorisation Officer Names and Titles Report Authors Michael Asnicar, Health, Environment & Waste Manager Authorising Officers Michael Asnicar, Health, Environment & Waste Manager Health, Environment & Waste Branch Branch and Directorate Strategy & Sustainability Report Page 4 of 4 .
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