Agenda item

11.1

This report details the requirement to introduce separate, weekly food waste recycling collections to Sheffield households, as required by the Environment Act (2021).

This report also sets out three options available to the Council to meet its statutory obligations for food collection services:

Option 1: Introduction of a weekly food waste recycling service by 31 March 2026, and not apply for a Transitional Arrangement.

Option 2: Apply to Central Government for a Transitional Arrangement to defer the introduction of separate food waste collections for five years until 31 March 2031.

Option 3: Apply to Central Government for a Transitional Arrangement to defer the introduction of separate food waste collections until the end of the Veolia Integrated Waste Management Contract in 2038.

This report recommends that Option 3 is best course of action for the Council based upon the reasons set out in this report

11.2

RESOLVED: That the Waste and Street Scene Policy Committee approves Option 3, as set out in paras 1.29 to 1.32 of this report, which proposes an application for a Transitional Arrangement to defer the requirement to introduce separate, weekly food waste collections until the end of the Veolia Integrated Waste Management contract in 2038, subject to Government Ministerial approval of the application for a Transitional Arrangement, and to explore how the council can encourage citizens to consider options for voluntary home and community composting and recycling, working with partners.

11.3

Reasons for Decision

11.3.1

The proposed Option 3 will see the Council submit an application to DEFRA for a Transitional Arrangement until the end of the Veolia Integrated Waste Management contract in 2038.

11.3.2

The proposed option will provide the following benefits to the Council for

the duration of the Transitional Arrangement:

·       Protect the Council from costs for any negative commercial impacts the diversion of the food waste has on the Energy Recovery Facility for the duration of the integrated waste management contract.

·       Protect the Council from the ongoing budgetary pressure associated with the high risk that the New Burdens Funding will not cover all of the revenue or capital costs associated with the service.

·       Provide maximum flexibility for the Council. Government have confirmed they will be in contact with local authorities in receipt of a Transitional Arrangement on an annual basis to determine whether the implementation date of separate food waste collections can be brought forwards. The Council will be able to review when to introduce a food waste service on an annual basis, and this decision process will be informed by the amount of New Burdens funding available from Government to provide an informed position of any budgetary pressures associated with the provision of the service.

·       Recognises only marginal carbon savings associated with the provision of a food waste collection service when compared to disposal via energy recovery, and provides the opportunity to use the £3m included in the Medium Term Financial Analysis from 2025/26 for the food waste service, for the delivery of alternative climate change projects that could deliver additional carbon savings. Please note, the £3m included in the Medium Term Financial Analysis is currently an unfunded corporate pressure.

11.4

Alternatives Considered and Rejected

11.4.1

Option 1 would forgo the opportunity to apply for a Transitional Arrangement, and the Council would be mandated to proceed with the implementation of a weekly food waste collection service by 31 March 2026.

11.4.2

This option has been discounted for the following reasons:

·       The lack of clarity from Government as to the amount of New Burdens funding to be made available. There is a high risk that the New Burdens funding provided would not cover all of the revenue or capital costs associated with the service, and this may exceed the £3m included in the Council’s Medium Term Financial Analysis from 2025/26.

·       Confirmation from Government that New Burdens funding will not be provided to cover any costs incurred under existing residual energy from waste collection contracts for the impact the introduction of separate food waste collection.

·       Marginal carbon savings (78 tonnes CO2 equivalent per year) that would be achieved following the introduction of weekly food waste collections, when compared to the current disposal route via energy recovery.

·       The opportunity to use the £3m included in the Medium Term Financial Analysis from 2025/26 for the food waste service, to be used for the delivery of alternative climate change projects that could deliver additional carbon savings. (See Appendix 2 for more information).

11.4.3

Option 2 would see the Council apply for a Transitional Arrangement, which, subject to Ministerial approval, would defer the requirement to provide separate, weekly food waste collections in Sheffield for 5 years until 31 March 31.

11.4.4

This option has been discounted for the following reasons:

·       the shorter duration of the Transitional Arrangement associated with option 2 (up to 5 years) when compared to option 3 (up to 12 years) means the Council would be mandated to introduce weekly food waste collections in 2031 regardless of the Council’s budgetary position at that time.

·       Option 2 will provide less flexibility than Option 3 and will deny the Council maximum opportunity to take an informed decision as to when to introduce the food waste collection service.

11.1

The Waste Strategy Officer submitted a report that detailed the requirement to introduce separate, weekly food waste recycling collections to Sheffield households, as required by the Environment Act 2021. The report set out three options available to the Council to meet its statutory obligations for food collection services.

11.2

It was moved by Councillor Joe Otten, and seconded by Councillor Tim Huggan, that Option 1 (No application for a Transitional Agreement) be approved. On being put to the vote, the motion was lost. Councillors Sue Alston, Tim Huggan and Joe Otten requested that their votes for the motion be recorded.

11.2

It was then moved by Councillor Alexi Dimond, and seconded by Councillor Mark Jones, that Option 3 (Application for a Transitional Arrangement to defer the introduction of separate food waste collections until the end of the Integrated Waste Management contract with Veolia in 2038), as detailed in the officer recommendations, be approved with the inclusion of the wording “and to explore how the council can encourage citizens to consider options for voluntary home and community composting and recycling, working with partners.” On being put to the vote, the motion was carried.

11.3

RESOLVED: That the Waste and Street Scene Policy Committee approves Option 3, as set out in paras 1.29 to 1.32 of this report, which proposes an application for a Transitional Arrangement to defer the requirement to introduce separate, weekly food waste collections until the end of the Veolia Integrated Waste Management contract in 2038, subject to Government Ministerial approval of the application for a Transitional Arrangement, and to explore how the council can encourage citizens to consider options for voluntary home and community composting and recycling, working with partners.

(NOTE: The result of the vote on the resolution was FOR – 5 Members; AGAINST – 3 Members; ABSTENTIONS – 1 Member.)

11.4

Reasons for Decision

11.4.1

The proposed Option 3 will see the Council submit an application to DEFRA for a Transitional Arrangement until the end of the Veolia Integrated Waste Management contract in 2038.

11.4.2

The proposed option will provide the following benefits to the Council for

the duration of the Transitional Arrangement:

·       Protect the Council from costs for any negative commercial impacts the diversion of the food waste has on the Energy Recovery Facility for the duration of the integrated waste management contract.

·       Protect the Council from the ongoing budgetary pressure associated with the high risk that the New Burdens Funding will not cover all of the revenue or capital costs associated with the service.

·       Provide maximum flexibility for the Council. Government have confirmed they will be in contact with local authorities in receipt of a Transitional Arrangement on an annual basis to determine whether the implementation date of separate food waste collections can be brought forwards. The Council will be able to review when to introduce a food waste service on an annual basis, and this decision process will be informed by the amount of New Burdens funding available from Government to provide an informed position of any budgetary pressures associated with the provision of the service.

·       Recognises only marginal carbon savings associated with the provision of a food waste collection service when compared to disposal via energy recovery, and provides the opportunity to use the £3m included in the Medium Term Financial Analysis from 2025/26 for the food waste service, for the delivery of alternative climate change projects that could deliver additional carbon savings. Please note, the £3m included in the Medium Term Financial Analysis is currently an unfunded corporate pressure.

11.5

Alternatives Considered and Rejected

11.5.1

Option 1 would forgo the opportunity to apply for a Transitional Arrangement, and the Council would be mandated to proceed with the implementation of a weekly food waste collection service by 31 March 2026.

11.5.2

This option has been discounted for the following reasons:

·       The lack of clarity from Government as to the amount of New Burdens funding to be made available. There is a high risk that the New Burdens funding provided would not cover all of the revenue or capital costs associated with the service, and this may exceed the £3m included in the Council’s Medium Term Financial Analysis from 2025/26.

·       Confirmation from Government that New Burdens funding will not be provided to cover any costs incurred under existing residual energy from waste collection contracts for the impact the introduction of separate food waste collection.

·       Marginal carbon savings (78 tonnes CO2 equivalent per year) that would be achieved following the introduction of weekly food waste collections, when compared to the current disposal route via energy recovery.

·       The opportunity to use the £3m included in the Medium Term Financial Analysis from 2025/26 for the food waste service, to be used for the delivery of alternative climate change projects that could deliver additional carbon savings. (See Appendix 2 for more information).

11.5.3

Option 2 would see the Council apply for a Transitional Arrangement, which, subject to Ministerial approval, would defer the requirement to provide separate, weekly food waste collections in Sheffield for 5 years until 31 March 31.

11.5.4

This option has been discounted for the following reasons:

·       the shorter duration of the Transitional Arrangement associated with option 2 (up to 5 years) when compared to option 3 (up to 12 years) means the Council would be mandated to introduce weekly food waste collections in 2031 regardless of the Council’s budgetary position at that time.

·       Option 2 will provide less flexibility than Option 3 and will deny the Council maximum opportunity to take an informed decision as to when to introduce the food waste collection service.

(NOTE: During the discussion of the above item, the Committee agreed, in accordance with Council Procedure rules, that, as the meeting was approaching the 2 hours and 30 minutes time limit, the meeting should be extended by a period of 30 minutes.)