Circular Economy Infrastructure Fund: Hazardous Waste – Round 2

Sustainability Victoria is supporting businesses and local government through the Circular Economy Infrastructure Fund: Hazardous Waste – Round 2. The fund aims to assist businesses and local government to increase the capacity and capability of Victoria’s resource recovery sector and recover high quality products.

Applications must be submitted by 11:59 pm, Wednesday 15 December. Late applications will not be accepted except under exceptional circumstances.

This grant is part of the Recycling Victoria policy funding.

Fund recipients

For information on the fund recipients. Visit Circular Economy Infrastructure Fund: Hazardous Waste – Round 2 – Funded projects.

Information bulletin

Find out more in the Information bulletin.

1. Fund overview

The hazardous waste stream is available to fund infrastructure projects that target low-level contaminated soils and reportable priority waste.

Funding is available to businesses (domestic and international) and local government that have existing hazardous waste facilities in Victoria or are proposing a new facility to be located in Victoria.

Read the Environment Protection Authority’s classifications for prescribed industrial waste, including reuse, disposal, temporary storage and contaminated soil. Please note: only low-level contaminated soils and reportable priority waste projects are eligible for this fund. Reportable priority waste must be defined as a transaction and transport reportable priority waste to be eligible for this funding.

1.1 Fund objectives

The Recycling Victoria Infrastructure Fund objectives are to:

• increase the recovery and local reprocessing of hazardous waste, and to manage this material in line with the waste hierarchy
• increase the use and quality of recycled materials for remanufacturing and to make new products
• increase economic development opportunities such as jobs, economic performance and growth of precincts.

The hazardous waste stream is seeking projects that will achieve one or more of the following outcomes:

a. Diversion of wastes from Category B landfill disposal.

b. Increased diversion of low-level contaminated soils from landfill disposal.

c. Increased recovery of hazardous wastes for reuse, recycling or energy recovery.

d. Improved management of hazardous wastes for reuse, recycling or energy recovery.

Projects to increase landfill airspace will not be considered but infrastructure that achieve fund outcomes in 2.3 What will be funded may be co-located at landfills.

1.2 Funding available

There is no funding cap per project. The total funding available for this grant round is $9.7 million.

1.3 Co-contribution

Applicants are required to meet the following minimum cash contribution:

Industry must co-contribute at least $3 for every $1 funded.

Local government must co-contribute at least $2 for every $1 funded.

Funding from other government sources (including federal, state or local) cannot be included in your co-contribution.

2. Eligibility

2.1 Who can apply

Applicants must:

• have a current Australian Business Number (ABN), or have a joint venture partner with one, or commits to establish an Australian company prior to commencing project
• be a business or local government that has existing hazardous waste facilities in Victoria, or are proposing a new facility to be located in Victoria
• have been operating in Australia or internationally for a minimum of 12 months by the application closing date
• meet or exceed the minimum co-contribution requirements
• agree to comply with the Terms of Participation in Grant Programs
• agree to comply with the Short form funding agreement for funding of $50,000 or less, or the General Funding agreement for funding more than $50,000.

Applicants and project participants must:

• demonstrate financial capability to undertake the project
• have met program and project timelines in previous Sustainability Victoria funding rounds
• not have failed to address an environmental or safety breach
• not have a breach not yet resolved
• meet due diligence requirements (see section 3.3 Due diligence checks)
• not have a current industrial relations investigation or prosecution.
  

We encourage applications from Aboriginal and Torres Strait Islander businesses.

Sustainability Victoria manages several grants. Although you can apply for more than one grant for a project, you can only receive one grant. If you’ve already applied for a Sustainability Victoria grant and now find this grant is more relevant or suitable, you can withdraw your application by emailing us.

2.2 Who cannot apply

• Individuals.
• Not-for-profit organisations.
• Social enterprises.
• Industry groups and associations.
• Research institutes.

2.3 What will be funded

Funding will be provided for infrastructure projects focused on safe management and/or recovery of low-level contaminated soils and reportable priority waste.

Funding may be provided for:

• infrastructure capital cost for the purchase, installation and commissioning of equipment
• pre-construction activities such as site clearing, earthworks or site accessibility works directly associated with the installation of new equipment
• modification of buildings to house the new equipment.

Projects must:

• be located in Victoria
• meet the eligibility criteria
• meet funding program timelines
• manage waste streams classified as Reportable priority waste listed under Schedule 5—Waste classification of the Environmental Protection Regulations 2021
• meet regulatory or planning requirements or comply with regulation or a regulatory notice or order
• demonstrate a need for Victorian government support
• be commissioned and operational by 30 March 2024.

*Refer to the Environment Protection Authority’s Waste classification assessment protocol to determine if your waste is a reportable priority waste.

Projects must meet one or more of the fund outcomes listed below:

a. Diversion of wastes from Category B landfill disposal

• Treatment technologies which enable recovery and reuse, including waste to energy (WtE) and process derived fuel.
  
• Treatment that reduces contamination to achieve Category C disposal requirements.
  

b. Increased diversion of low-level contaminated soils from landfill disposal

• Treatment to enable reuse (on or off site)
• Mobile and relocatable treatment equipment
• Treatment at site of generation to reduce Category C to Category D to enable on site containment under permit.
• Technologies to support the containment, under permit, at generation site of Category D soils:
  • Short term storage facilities to de-water, categorise soils and aggregate volumes for further management.

c. Increased recovery of hazardous wastes for reuse, recycling or energy recovery

Collection, short term storage, and recovery or treatment facilities. Funding can be for expansion, upgrade or new infrastructure to achieve one or more of the following:

• increased recovery of hazardous wastes for reuse, recycling or waste to energy or process derived fuels
• improved ability to manage feedstock or market fluctuations (volumes and/or quality)
• improved quality of end product
• increased market offerings or reduced reliance on interstate infrastructure.

d. Improved management of hazardous wastes for reuse, recycling or energy recovery

Short-term storage, collection, recovery or treatment facilities that can achieve one or more of the following:

• improved recovery of wastes not covered above for recycling and reuse.

You can submit multiple applications. Each application must be for a different project. An application must not be for multiple projects.

2.4 What will not be funded

Projects must not:

• have commenced construction before signing the funding agreement (equipment can be ordered at applicant’s own risk)
• be undertaken solely to comply with regulation or a regulatory notice or order.

The follow costs are ineligible for funding:

• in-kind contributions
• requests for assistance in managing cash flow
• purchase of land
• routine or cyclical maintenance works
• ongoing operational costs such as, but not limited to, salaries, electricity, water and other utilities
• costs associated with research, demonstration and development
• costs of equipment not dedicated to the project purpose (e.g. all vehicles)
• projects that upgrade existing facilities to meet EPA improvement notices (or similar directions)
• projects that involve the repair of facilities damaged by vandalism, fire or other natural disasters where the damage should be covered by insurance
• business case development
• feasibility studies
• consultancy work
• permit, licensing and approval costs
• project management costs
• contingency costs.

3. Assessment process

3.1 Assessment criteria

The assessment panel will assess the application based on merit according to the criteria below. Weightings are a guide.

What

Weighting: 30%

The project meets one or more objectives of the fund:

• Increase the recovery and local reprocessing of hazardous waste, and to manage this material in line with the waste hierarchy.
• Increase the use and quality of recycled materials for remanufacturing and to make new products.
• Increase economic development opportunities such as jobs, economic performance and growth of precincts.

The project is viable, including a demonstration of:

• technology
• infrastructure
• feedstock
• improved management of hazardous waste
• higher order recovery (where applicable) including:
  • outputs (where applicable)
  • end markets and offtake agreements

• objectives of the project proposed aligning with the strategic priorities of the organisation.

The objectives of the project proposed align with the strategic priorities of the organisation.

Who

Weighting: 20%

Demonstrate the participants’ capability and capacity to successfully deliver the project including:

• applicant’s capability and capacity to deliver the project
• appropriate governance structure to support the implementation of the project
• project partner(s)’ capability to deliver the project
• appropriate commercial structures and contractual agreements
• stakeholder engagement considerations to support the implementation of the project.

How

Weighting: 20%

Demonstrate viability to successfully deliver the project including:

• feasibility to deliver milestones within the timeframe
• appropriate site considerations
• regulatory, statutory and works approvals will be achieved
• financial viability demonstrated through financial assessment and cost benefit analysis:
  • level and certainty of the whole-of-life cost of the project
  • the level and appropriateness of financial support provided
• risk identification and appropriate mitigation measures
• a strong monitoring and evaluation framework to track performance.

Why

Weighting: 30%

Demonstrate why the project is needed including:

• the need for government financial assistance, including any impacts on scope and timing if not funded.
• economic benefit (including value for money for Victorians and potential leveraged funding)
• social benefit
• public health and environmental benefit
• policy and regulatory alignment.

3.2 Diversity consideration

Sustainability Victoria may overlay rankings to achieve an overall mix of projects that represent:

• a geographical spread across Victorian regions
• a mix of project types.

3.3 Due diligence checks

A risk-based approach will be used to assess the Applicant’s social, economic and environmental risks in relation to the project. This assessment will include the Applicant’s Related Entities and may include Project Partners and/or Project Participants (see Section 9: Program definitions).

Applicants (and their Related Entities and, if applicable, their Project Partners and/or Project Participants) must:

• have had no Environmental, Safety or Workplace Breaches in the last five years or, if there was a breach, Sustainability Victoria may assess that the Applicant’s breach poses a satisfactory level of risk;
• have not been the subject of an enforceable undertaking or successful litigation by the Fair Work Ombudsman for a breach of the Fair Work Act 2009 or a fair work instrument within the last five years;
• demonstrate financial capability to undertake the project;
• have adequate insurance as outlined in the funding agreement and:
  • Public liability $20M minimum
  • Professional indemnity $5M minimum
  • WorkCover.
• have not failed to satisfactorily progress or complete previous projects funded by SV within funding program timelines and without sufficient reason; and
• manage any conflicts of interest adequately.

Assessment of satisfactory level of risk will include but not be limited to Sustainability Victoria’s consideration of:

• the seriousness of any finding/s
• whether the finding/s has been resolved to the satisfaction of the relevant enforcement agency, or the Applicant can demonstrate it is working effectively to resolve the finding
• the efforts made by the Applicant including implementation of management systems, to ensure no further finding/s occur
• whether, since the finding, the Applicant has had a satisfactory level of compliance with relevant Environmental and Safety Laws and Workplace Laws.

Sustainability Victoria may conduct due diligence checks on the Project Partners and/or Project Participants involved in the delivery of the project. The Applicant must ensure that any Project Partners and/or Project Participant(s) agree to cooperate with this requirement and will provide information at Sustainability Victoria’s request.

Sustainability Victoria reserves the right not to award funding to Applicants where the due diligence risk (including that of Project Participants and Project Partners) is unsatisfactory or not able to be managed.

4. Funding conditions

Successful applicants approved for funding must do the following.

4.1 Before starting the project

• Participate in an inception meeting to discuss project and funding agreement.
• Determine roles and responsibilities with clear expectations of funding
• Agree to realistic evidence-based and performance-based milestone payments.
• Provide Sustainability Victoria with insurance certificates of currency.
• Sign Sustainability Victoria’s Funding agreement within 30 days of approval.
• Provide a project plan.
• If you receive funding of more than $250,000, plan for capital works signage.
• If your project is based in metropolitan Melbourne or across Victoria, and is given funding of at least $3 million, you need to meet Local Jobs First requirements.
• If your project is in regional Victoria, and is given funding of at least $1 million, you need to meet Local Jobs First requirements.

4.2 During and after the project

• Deliver the project as outlined in the application and comply with the funding agreement.
• Contribute to regular project progress update, meetings and site inspections.
• Notify Sustainability Victoria immediately about any delay or change to the project.
• Provide update reports to Sustainability Victoria at agreed milestones with evidence of expenditure, progress and performance.
• Provide adequate monitoring and evaluation of the project according to the funding agreement.
• Collect and release data to Sustainability Victoria. Sustainability Victoria may share or report on the data.
• Contribute to the project’s promotional activities (for example, provide Sustainability Victoria with support by reviewing and approving written stories or videos).
• Participate in and contribute to Sustainability Victoria activities to distribute the findings to broader stakeholders (for example, government and industry).
• Acknowledge that Sustainability Victoria has contributed funding in all communications related to the project.

5. Timeline

Dates may change.

There is no date for the announcement of application outcomes. We will provide applicants with updates as much as possible and when necessary.

6. How to apply

The grant program involves a competitive, merit-based application process.

1. Ensure that your organisation can apply.
2. Ensure that your project is qualified.
3. Engage with the relevant investment facilitation support services.
4. Read Sustainability Victoria’s funding agreement. Ensure that you can meet the terms and conditions.
   1. For grants $50,000 or less read the Short-form grant funding agreement.
   2. For grants more than $50,000 read the General grant funding agreement.
5. Read Sustainability Victoria’s Terms of participation in grant programs.
6. Create an account and start your application on the SmartyGrants website.
7. Submit your application by 11:59 pm, Wednesday 15 December 2021. Late applications will not be accepted.

Your application

• Allow adequate time to plan, research, gather supporting documentation and draft your application.
• As this is a competitive grant, we cannot review drafts or provide feedback.
• You must use SmartyGrants, unless you have written permission from Sustainability Victoria.

7. Assistance available

7.1 Investment facilitation

We recommend Australian applicants to engage with investment support services before submitting their application to ensure their project is investment ready and set up for success.

Victorian Government Business Offices (VGBOs) can connect your business to the appropriate service for you.

Read about the Victorian Government Business Offices in metro Melbourne

Read about the Victorian Government Business Offices in regional Victoria

Sustainability Victoria offers an investment facilitation service for projects that increase Victoria’s resource recovery sector.

Read about our investment facilitation service.

Or email invest@sustainability.vic.gov.au for more information.

We recommend international applicants to notify their nearest Victorian Government Trade and Investment Office (VGTI) of their intention to apply.

Visit Victorian Trade and Investment Office.

7.2 Information session

There will be one online information session. A recording will be available after the session.

The Information session will include an overview of the hazardous waste stream and application criteria, including:

• objectives
• what Sustainability Victoria is looking for in applicants
• helpful hints and tips in drafting an application.

Date: Thursday 11 November, 2021
Time: 2:00 pm – 3:15 pm

8. Why the Victorian Government is providing this funding

This funding is offered as part of the Victorian Government’s $515 million investment to deliver the biggest transformation and reform of Victoria’s waste and recycling industry. This includes $380 million to deliver Recycling Victoria.

Recycling Victoria will fundamentally:

• reduce waste
• boost jobs
• establish a recycling system Victorians can rely on.

The Recycling Victoria Infrastructure Fund will address urgent challenges that have caused disruption to Victoria’s recycling services. Investing in priority infrastructure will:

• support increase recycling
• respond to new bans on waste export
• safely manage hazardous waste.

9. Definitions

ABN

Australian Business Number

ACN

Australian Company Number

Applicant

The applicant who applies for the funding and is responsible for all details in the submission of an application and the contractual obligations under the funding agreement with Sustainability Victoria if successful for grant funding.

Co-contribution

The Applicant’s required cash or In-kind Contribution to the total project income.

Direct Jobs

Actual new full-time positions created by your business. This can include training or upskilling of employees who would otherwise be made redundant through the implementation of your project.

End Market

The receipt of source-separated recyclable material for utilisation of the material as a finished product or as a raw material for a manufacturing process.

Environmental, Safety or Workplace Breach

An environmental or safety breach is any past or current prosecution, reportable incident, investigation, notice, penalty, warning, regulatory intervention or enforcement action from the Environment Protection Authority (EPA), Victorian WorkCover Authority (WorkSafe) or Fair Work (or international equivalents) or failure to comply with any environmental, safety and workplace laws.

Environmental and Safety Laws

Environmental and safety laws are the Occupational Health and Safety Act 2004, Environment Protection Act 1970 or any other legislation, regulation, order, statute, by-law, ordinance or any other legislative or regulatory measure, code, standard or requirement relating to the protection and safety of persons or property or which regulate the environment including laws relating to land use planning, pollution of air or water, soil or groundwater contamination, chemicals, waste, the use, handling, storage or transport of dangerous goods or substances, greenhouse gas emissions, carbon trading, or any other aspect of protection of the environment.

Full-Time Equivalent Employees (FTE)

The hours worked by one employee on a full-time basis.

Calculating FTE

The calculation is used to convert the hours worked by several part-time employees into the hours worked by full-time employees. For example, you have three employees working the following - 40, 40 and 20 hours per week, giving you 100 hours per week in total.

Assuming full-time hours are 40 hours per week, your full-time equivalent calculation is 100 hours divided by 40 hours which equals 2.5 FTE.

Indirect Jobs

Jobs created by other businesses that come into existence due to the economic growth of your business.

In-kind contribution

An in-kind contribution is a contribution of a good or a service other than money.

In-kind contributions may include, but are not limited to:

• staff time to manage project implementation (project management and installation costs that utilise existing internal resources);
• time spent on project activities by volunteers; and
• donated goods or services related to the project.
• The following activities cannot be considered in-kind contributions:
• operating expenses that are not directly associated with delivering the project; and opportunity costs such as staff ‘downtime’ during the installation of equipment or implementation of activities.

International Businesses

Businesses that are not located in Australia and do not have an ABN. International applicants must either have a joint venture partner with an ABN or must establish an Australian company prior to entering into a funding agreement with SV and a Victorian office prior to receiving funding.

Process Derived Fuel (PDF)

A fuel product produced as alternative to conventional fuels from a variety of wastes including waste solvents, oils, organic materials (including timber) and plastics.

Project Participant/s

An organisation engaged by the Applicant to assist in the delivery of the Applicants’ project; included but not limited to product suppliers, consultants, contractors and major sub-contractors.

Project Partner/s

An organisation/s in an agreed partnership with the Applicant that have a critical role in the project and a formal commitment to delivering the support required to ensure the project’s success. The partnership needs to be demonstrated by a formal agreement between the partners that outlines the governance, financial and intellectual property arrangements and roles and responsibilities of each party. A formal agreement must either be in place or be finalised before commencement of the project.

Public Value

Public value includes a projects ability to

• achieve the Recycling Victoria: A new economy policy objectives
• Demonstrates reduction in environmental impacts and on human health
• Jobs creation (particularly in regional areas)
• Social and community value and benefit sharing

Related Entities

Entities related to the Applicant including:

• holding companies of the Applicant;
• subsidiaries of the Applicant;
• subsidiaries of holding companies of the Applicant;
• companies with common directors or shareholders as the Applicant;
• companies that are a beneficiary under a trust of which the Applicant is a trustee;
• trustees of a trust under which the Applicant is a beneficiary; and
• companies that engage in business at the same address as the Applicant, or the same address as the location of the activity for which funding is sought.

Related Person/s

Related Person means a director, officer, employee, agent, board member or contractor of the Applicant or a Related Entity.

Reportable Priority Waste

Wastes generated from commercial or industrial sources that are generally hazardous by nature which poses the greatest level of risk to human health and the environment. These wastes are regulated under the Environment Protection (Industrial Waste Resource) Regulations 2009.

Secondary Wastes

Wastes produced as a result of the recycling of solvents wastes, including packaging and distillate by-product.

Waste to Energy

The terms ‘waste to energy’ describes a number of treatment processes and technologies used to generate a usable form of energy from waste materials. Examples of usable forms of energy include electricity, heat and process derived fuels (transport fuels). For the purpose of this document the term ‘waste to energy’ or ‘WtE’ is used.

Workplace Laws

Workplace laws are the Fair Work Act 2009, or any other legislation, regulation order, statute, by-law, ordinance or any other legislative or regulatory measure, code, standard or requirement relating to the provision of fair, relevant and enforceable minimum terms and conditions for all persons and to prevent discrimination against employees.