The Carbon Pollution Reduction Scheme Bill (CPRS) and landfills

Author: Brian Glendenning, Samantha Ellis

Publish Date: September 15, 2009

The CPRS was passed through the House of Representatives in June but was stalled in the Senate with a decision anticipated around mid August 2009.

The CPRS defines a ’person’ as a body politic, local governing body, trust, body corporate and corporation sole.  Therefore it is highly unlikely that Councils will be exempt from the provisions of the CPRS. 

However, by virtue of the provisions of the CPRS, Councils liability for emissions from landfills may be minimised or avoided.

1.      Landfills closed prior to 1 July 2008 are not included as a liable entity;

2.      Legacy emissions do not count towards liability (emissions deposited prior to 1 July 2011 as permitted under the Regulations);

3.      Any emissions that count towards the OTN (Obligation Transfer Number) will be included in the threshold count but deducted for liability;

4.      If a person holds a liability transfer certificate then the facility will be deemed not to be under the operational control of the person.

However if the landfill emits more than 25,000 tonnes, or 10,000 tonnes if it is located within the distance that will be stated in the Regulations (not yet determined), after taking into consideration the matters noted above it will be a liable entity and will need to purchase emission units to cover its emissions.

Landfill emissions

Emissions from landfill consist mainly of the uncontrolled release of methane from decomposing organic material, such as food, paper, garden waste and wood.   The CPRS details the emissions that are Co2 equivalent and include methane, carbon dioxide, nitrous oxide, synthetic and prescribed greenhouse gases.

What will it cost?

A price cap will be imposed for the first five years of the CPRS and will be charged as follows:

o       Financial year 2011 / 2012 - units will be charged at $10 per unit;

o       Financial year 2012 / 2013 - units will be charged at $40 per unit plus 5% real growth. 

o       Each consecutive financial year until 2015 / 2016 - the cost per unit will increase by 5% real growth adjusted by CPI over the proceeding year’s unit cost.

For further information regarding the Carbon Pollution Reduction Scheme, please contact Samantha Ellis on 02 4907 6334 or Brian Glendenning on 02 4907 6320.

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