Scheme Overview

Gerry Morvell, BSC Chair

CEC Solar Masterclass at All Energy

24 October 2019

Why is a scheme needed?

▪ Projected exponential rise in generation of waste

batteries

Why is a scheme needed?

▪ Current recycling rates very low in Australia▪ Only 3% of batteries are collected for recycling

▪ Approx 700m of batteries hoarded, dumped or landfilled

OECD: Organisation of Economic Co-operation & Development

Government agenda

▪ Product Stewardship Act

▪ Large batteries listed in 2016/17

▪ Meeting of Environment Ministers decision to include large batteries in the scope of the Battery

Stewardship Scheme in late 2018

▪ National Waste Policy Action Plan was revised and

approved in late 2018

▪ Identifies two waste streams in particular

▪ Batteries and Photovoltaics

▪ Sets out the schedule for battery stewardship

▪ Battery Stewardship Scheme launch 2020

▪ Battery Stewardship Scheme full implementation by 2022

▪ Companies that import batteries

▪ Original Equipment

manufacturers

▪ Distributers

▪ Retailers

Shared Responsibility ~ Scheme supply chain

Sorting

facility

Collection

pointLogistics

provider

Processor

Importer

▪ Power Tools▪ Handheld batteries▪ Products with

batteries not covered by other schemes

▪ Energy storage▪ Electric Vehicles

▪ NGOs▪ Retailers▪ Postal service▪ State and local

government▪ Schools▪ Installers▪ Brands▪ Institutions

▪ Retailers▪ Logistics operators▪ e-waste collectors▪ Waste

management companies

▪ Take back programs

▪ Partner schemes

▪ Local councils▪ Retailer depots▪ Collectors▪ Community groups▪ Private companies

(recyclers)▪ Onshore processors

BSC member update1. Government

2. Adeal

3. Advanced Resources Recycling

4. Australia Post

5. Aust. Battery Recycling Initiative

6. Aust. Industry Group

7. Aust. Information Industry Ass. (Mobile Muster)

8. Aust. Mobile Telecommunications Ass.

9. Aust. Toy Association

10. Aust. NZ Recycling Program (ANZRP)

11. ALDI

12. BatteryRescue

13. BatteryWorld

14. Bicycle Industries Australia

15. Bosch

16. Bunnings

17. Call2Recycle

18. Canon

19. CISCO

20. CESA

21. Clean Energy Council

22. Close the Loop

23. CMA Ecocycle

24. CO2 View

25. Energizer

26. Dodd & Dodd Group

27. Department of Energy & Environment

28. QLD Dept of Environment & Science

29. E-Cycle Solutions

30. Enirgi Power Recycling

31. Envirostream

32. Equilibrium

33. Electric Vehicle Council

34. Global Renewables

35. Infoactiv

36. Institute for Sustainable Futures

37. Kidsafe

38. Lex Enviro Services

39. Makita

40. MRI

41. MRI E-Cycle Solutions

42. National Retailers Association

43. National Waste and Recycling Industry Council

44. NSW EPA

45. Ocean Batteries

46. Officeworks

47. Outdoor Power Equipment Association

48. Panasonic

49. Positec (Rockwell, Worx)

50. QLS

51. Ramcar

52. R&J Batteries

53. RF Industries

54. Resourc

55. Stanley Black & Decker (Dewalt)

56. Sims E-Recycling

57. SA EPA

58. Southern Sydney Regional Organisation of Councils

59. Sealed Battery Performance

60. Sustainability Victoria

61. Super Retail Group (BCF, Supercheap …)

62. Supercharge Batteries

63. Sydney Harbours Federation Trust

64. Techtronic Industries (Ryobi, AEG, Milwaukee, …)

65. Tes-amm

66. TradeTools

67. Visy

68. Western Australian Local Government Association (WALGA)

69. Woolworths

Essential foundations

ACCREDITATION/VERIFICATION

INCREASED COLLECTION & RECYCLING

Member 2 Member

Agreements

Addressing

market failure

Environment, health

& safety benefit

BATTER STEWARDSHIP SCHEME Board / Governance / Administration / Marketing / Education / Incentives / Monitoring & Review

Purchasing

preferences to

reduce free riders

Levy on importsResource recovery &

reduction in

EH&S impacts

Rebate

Leveraging

Collection Model

Proposed levy

▪ 4 cents / Equivalent battery Unit (EBU) - 24 grams

▪ Report EBU imports to independent agency*

▪ Pay levy based on imports

▪ Pass levy on to the consumer

▪ Measures to address importer pressures

▪ Importers with take back schemes able to pay

net levy

▪ (i.e. levy less rebate based on past

performance)

▪ Payment now due quarterly rather than an

upfront annual payment

* Protection of market intel

Establishment of the EBU

Battery Average weight Example EBU Indicative levy

AAA Alkaline 10 0.4 $0.02

AA Alkaline 23 0.97 $0.04

AA Rechargeable 24 1 $0.04

9V Alkaline 42 1.8 $0.07

C 64 2.7 $0.11

D 113 4.7 $0.19

Button cell 2 0.1 $0.00

Lantern 6V 574 24.1 $0.96

Power tool 741 31.2 $1.25

Mobile phone battery 60 2.5 $0.10

Laptop/tablet battery 343 14.4 $0.58

Light industrial battery 361 15.2 $0.61

e-Bike 2769 117 $4.66

Energy storage system ? /24gms *.04 cents

Member to member agreements to facilitate participation

Sorting

facility

Collection

point

Logistics

provider

Processor

Importer

Participants self select by joining the

scheme which includes a commitment

to supporting the scheme by working

primarily with other members

Approaches will differ

depending on the commercial

arrangements of the member

organisations involved

Model for energy storage may differ

in that collection point & logistics

provider may be one in the same:

the ‘installer’ or ‘de-installer’

The leveraging model is unique and a game changer

▪ Building the battery collection network

▪ Proposed rebate structure

▪ Metro collections: $2.50/kg

▪ Regional collections: $3.50/kg

▪ Sorting $1.00/kg

▪ Processing $1.00/kg

▪ Accreditation process to maintain

integrity of the program

▪ Environmental, health, & safety

▪ Traceability

▪ Recovery rates

Sorting

facility

Schematic – overview of obligations

Collection

point

Logistics

providerProcessorImporter

Report imports to

independent agency*

Implement import

standards (TBD)

Pay levy based on

imports

Use scheme branding

or co-branding

Audit of import

data/obligations

* Protection of market intel

Pass levy on to the

consumer

Use accredited service

providers

Demonstrate delivery only to BSC accredited downstream suppliers using commercial

arrangements throughout the recycling chain

Shipment records / maintain chain of custody

Use approved containers

Conformance to quality, environmental, health, and safety systems/control

Use accredited service providers

Use scheme branding / co-branding

Provide drop-off

Mass balance/tracking

Report recovery ratesReport collection rates

Sort/aggregate Process batteries

90% landfill diversion

Pick up service

Participate in audits

Report sorting ratesOnline training

Health check

BSC, CEC and EVC project

▪ To ‘ground truth’ current design for large batteries

▪ To understand barriers and constraints

▪ Inter-jurisdictional storage and transport

▪ Regulatory and indemnification (insurance) measures

▪ Collection, onshore processing and export.

▪ Market opportunities and impediments for successful recovery

▪ Examine the appropriateness of the existing regulatory framework for storage and transport of

electric vehicle and energy storage batteries.

▪ To understand reuse/refurbishment issues

▪ Impact of multiple lifecycles of electric vehicle batteries,

▪ Impact of changing of ownership on liable parties and levy recovery.

▪ Explore implications of reclassifying the used battery sector from the current ‘waste’ industry to

manufacturing’ classification in recognition of positive impact on the economy and GDP

▪ Identify regulatory amendments and best practice guidance for storage and transport

Performance monitoring will be critical

▪ No explicit targets for collection

▪ Goal is to collect as much as possible with

continual improvement

▪ Regular monitoring and reporting to demonstrate

performance improvement

▪ Recovery rate

▪ 90%? diversion from landfill to be demonstrated by

participating recyclers

▪ Audits and verification

▪ Imports

▪ Obligations

▪ Announced and unannounced

Moving from planning to action

2020

Scheme deploymentDevelopment of management

systems; branding &

marketing; education &

incentives; operational

procedures, & accreditation

process

Members

formally join

the BSCAccreditation

process initiated

Collections take off!Member implementation

of collection, sorting, and

processing systems

Systems

evolutionAdaptation &

improvement in

response to on the

ground experience

2021

ACCC

Determination

Final Scheme

design

releasedConsultation with

BSC members and

feedback

incorporated

Initiators show

in principle

supportFormalize

support for

ACCC application

2019 Q4

Submission to ACCC

for authorisationACCC evaluation, public

consultation, &

determination

Report to

MEMsProgress, design,

industry

engagement

BSC consultation to understand industry reality and needs, improve approach, confirm industry support,

and develop operational procedures

Become an initiator

▪ Initiators will become part of the ACCC

application

▪ Demonstrate support for the proposed scheme

design

▪ Initiator form can be downloaded from the BSC

website resources page

Be part of the solution

Take a deeper dive - resources are available online

Give us a call or provide written feedback

Thank you

Contacts

▪ Libby Chaplin

▪ 0467 515 260

▪ libby.chaplin@bsc.org.au

▪ Gerry Morvell

▪ 0408 990 825

▪ gerry.morvell@bsc.org.au

The full version of the scheme design document can be downloaded at:

https://bsc.org.au/document-types/scheme-design-documents/

An updated version will be released in Oct 2019Now is a great time to get involved and help shape the path forward