A trip to the tip and household rates look set to rise as the new carbon tax hits residents’ hip pockets, according to Blue Mountains City Council (BMCC).
A report tabled at Tuesday night's council meeting stated clean energy legislation passed by the Senate on November 8 could see the council potentially liable for emissions generated from its tips, as well as gas and electricity hikes and a reduction in its fuel tax rebate.
“[There is] potentially greater expense to [the] community through increased [tip] gate fees and waste levy,” the council report stated.
“In 2012/13 the council can expect an increase on gas an electricity costs of approximately $160,000 from the carbon tax and a reduction in the fuel tax rebate received from 2012/13 onwards, which will possibly equate to about $30,000 in 2014.”
The Independent Pricing and Regulatory Tribunal (IPART) has indicated councils will get a rise in the statewide rate peg next year to help offset carbon tax costs.
“[IPART] have indicated that some allowance from increased costs due to the carbon tax will be included for in the 2012/13 rate peg,” the report said.
The $23-per-tonne carbon price begins on July 1 of next year and will apply to direct emissions, including those produced by landfill.
Landfill operators that emit more than 25,000 tonnes of carbon dioxide equivalent will be required to purchase and surrender permits and report on their emissions under the National Greenhouse and Energy Reporting Scheme (NGERS).
The price of carbon will increase by 2.5 per cent per year over the next three years before an Emissions Trading Scheme (ETS) comes into effect in 2015, when prices will then be set by the market.
“Although BMCC produces greenhouse emissions from a number of sources, it is only potentially liable under the new scheme for emissions generated from its operational landfill,” the report said.
A study undertaken in 2009 indicated emissions from Blaxland tip could exceed 25,000 tonnes of carbon dioxide equivalent per year from 2014 to 2039, however a further assessment would be undertaken next year that would “provide a better indication of what liability, if any, the Blaxland WMF [Waste Management Facility] might generate”, it said.
Under the new rules, emissions would have to be reported and permits dealt with for as long as they exceeded the thresholds — “including after the landfill has closed in 2033.
“If it is confirmed that emissions from Blaxland WMF exceed the threshold, then there will be a considerable financial liability to be met by council,” the report stated.
“How this will be met will be influenced by the current contract that the council has with Theiss who are operating the facility.
“It is expected however that the costs of the liability will be passed onto council.”
Council staff recommended a further report come back before BMCC in April next year outlining results of the landfill gas assessment for Blaxland, and that clean energy funding opportunities be investigated.
Councillors voted to note the report and accept the staff recommendations.
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