NGERS and CPRS Implications for Councils

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NGERS and CPRS Implications for Councils
Newcastle City Council identifying Councils
obligations and exposure to NGERS the CPRS
Karen Toirkens
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Newcastle City Councils landfill operations a
snapshot

• Operations commenced at Summerhill Waste
  Management Centre (off Minmi Road, Wallsend) in
  1995.
• Currently receives approx. 220,000 tonnes of
  waste p.a.
• Currently licensed to dispose waste until 2015.
• Permission to continue operations until 2030
  currently being sought.
• Initially estimated annual emissions at gt 100,000
  tonnes CO2-e
• Emissions from Councils previous operations at
  Astra Street are not covered by the scheme (i.e.
  site closed prior to 30 June 2008 cut-off stated
  in the White Paper).
• Have been extracting and flaring landfill gas
  from the mixed solid waste cells since 2005.

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Understanding our liabilities the journey so far

• Sought legal advice in December 2008 following
  the release of the White Paper to better
  understand
• the relevant aspects of the White Paper
• if the Summerhill WMC would be included in the
  CPRS
• what NCC should do in preparation for the CPRS.
• Significant penalties for non-compliance,
  including
• Civil penalties for corporations of up to
  220,000
• Civil penalties for a CEO (or equivalent
  officers) of a corporation of up to 220,000.

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Major difference exclusion of legacy emissions

• Legacy emissions those emissions from waste
  already deposited in the landfill prior to Scheme
  commencement.
• Future emissions those emissions arising from
  waste yet to be deposited i.e. waste received
  following Scheme commencement.
• Previously, legacy emissions counted towards
  participation threshold, but permits didnt have
  to be acquired for them until 2018.
• Legacy emissions still count towards reporting
  obligations and the threshold under NGERs, but no
  longer apply to emission liabilities.
• The exclusion of legacy emissions reduces cost
  liability considerably however, still need to
  ensure gate fees fully reflect future emissions
  so that post-closure obligations can be met.

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Methane v Carbon Dioxide

• Landfill gas is generated from organic matter,
  therefore the net greenhouse impact of the carbon
  dioxide emitted following decomposition is
  considered to be zero.
• However, methane (CH4) has 21 times the global
  warming potential of carbon dioxide (CO2) i.e.
  it has a net additional impact on atmospheric
  greenhouse gases.

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Methane v Carbon Dioxide

• i.e. one tonne of methane 21 tonnes CO2-e

CH4
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Are we a Constitutional corporation?

• Confusion between CPRS reporting requirements
  under NGERS
• Confirmation with internal legal team
• Section 220 of the Local Government Amendment
  (Legal Status) Act 2008 No 92 defines the Legal
  Status of a Council as
• A council is a body politic of the State with
  perpetual succession and the legal capacity and
  powers of an individual, both in and outside the
  State.
• A council is not a body corporate (including a
  corporation).
• A council does not have the status, privileges
  and immunities of the Crown (including the State
  and the Government of the State).
• A law of the State applies to and in respect of a
  council in the same way as it applies to and in
  respect of a body corporate (including a
  corporation).

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Is our landfill covered?

• Based on draft CPRS legislation, persons
  (including local governments) that have
  operational control over a landfill emitting
  25,000 t CO2-e p.a. or above will be liable under
  the CPRS and will have to report under NGERS from
  Scheme commencement.
• To avoid waste displacement from covered to
  uncovered sites, this threshold will be reduced
  to 10,000 t CO2-e p.a. where a landfill is within
  a prescribed distance (yet to be determined) from
  another landfill accepting similar waste.
• The participation threshold will return to 25,000
  t CO2-e or more, 10 years after the site closes.

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• Source www.renewableaustralia.com

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Estimation of landfill emissions
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NGERs methods for estimating landfill emissions

• Method 1 uses a Tier 2 First Order Decay model
  developed by the Intergovernmental Panel on
  Climate Change (IPCC) in 2006. Involves the use
  of IPCC default methane generation constants (k
  values) for climate zones.
• Method 2 involves measuring gas flows and
  development of a site specific methane generation
  constant (k)
• Method 3 involves measuring gas flows in
  conformance with a USEPA method and development
  of a site specific methane generation constant
  (k).

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What is a methane generation constant?

• A methane generation constant (k) determines the
  rate at which organic matter decays, and hence,
  the rate at which methane is generated.
• k-values are dependent on site-specific factors
  such as moisture content of the waste, which is
  affected by things such as local climatic
  conditions and landfilling practices.
• The k-value used is extremely sensitive in
  determining the amount of methane generated.

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Evaluation of emissions at Summerhill WMC

• NCC engaged a consultant to evaluate emissions
  from Summerhill WMC in accordance with Method 1
  guidelines and direct methane emissions
  measurement at the landfill site.
• The study was undertaken when legacy emissions
  were included under the CPRS.
• It was assumed that landfilling continues at the
  site to 2030.
• Flux chamber tests were undertaken at 51
  locations across the surface of the mixed solid
  waste landfill in November 2008 to
• determine the total emission of methane from the
  landfill
• compare this to the Method 1 estimate
• determine the capture efficiency of the existing
  landfill gas extraction system.

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Evaluation of emissions at Summerhill WMC
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Possible explanations for the discrepancy

• The composition of the waste mix adopted in the
  NGERs Method 1 model is based on NSW waste
  audits, and is different to the actual
  composition at Summerhill WMC.
• The k-values used in the NGERS model are too high
  for the site.

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Next steps

• Council is now considering undertaking fieldwork
  at the site to determine a site specific k-value
  in order to use Method 2 of the NGER methods to
  determine methane emissions at the site.
• This approach could reduce Councils liability
  under the proposed CPRS.
• A financial strategy will need to be developed to
  cover any liability costs and to ensure that
  future costs are reflected in disposal fees so
  that post-closure obligations can be met.
• An understanding of acquiring permits will also
  be required.

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Questions welcome

• Karen Toirkens
• Environment and Climate Change Services
• Newcastle City Council
• 4974 2549
• ktoirkens_at_ncc.nsw.gov.au