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Minister for the Environment (the Minister)
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1. Establishment powers
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- a. Invite applications to be the producer responsibility organisation (PRO) for a scheme
- b. Appoint a PRO on advice from the Secretary for the Environment (the Secretary)
- c. Ability to set scheme commencement date (and expiry date if required)
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2. Regulatory parameters for schemes
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Powers to set regulatory parameters for how a specific EPR scheme will operate, including:
- a. setting and varying specific categories of products that would be subject to the scheme
- b. setting performance parameters such as mandatory return rate targets and requirements where targets are not met
- c. developing definitions of requirements for recycling, processing, repair, reuse and safe disposal
- d. parameters for take-back obligations and exemption criteria
- e. obligations for all participants within scheme to comply with conditions such as design requirements and information disclosure requirements
- f. setting a deposit level in regulation
- g. obligations for take-back service providers and operators (eg, covering cashflows such as payments and reimbursements)
- h. setting and collecting charges (including frameworks for how charges are set such as input methodologies) and eco-modulation of scheme charges
- i. specifying how particular parties will be covered by the scheme (eg, material recovery facilities, councils) including provisions for fraud prevention
- j. prohibiting first responsible suppliers from selling their products unless they meet certain obligations
- k. regulating products, materials and waste in the ways outlined in section 23 of the WMA (for products whether included in an EPR scheme or not)
Primary legislation would establish that charges would be:
- a. set by the PRO with consideration for parameters set out for the scheme (eg, through input methodologies)
- b. collected by the PRO or Secretary (or authorised party)
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3. Monitoring and intervention
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- a. Require reports and/or information from PRO in accordance with information disclosure requirements
- b. Require the PRO to replace an existing scheme charge with a charge specified by the Minister
- c. Issue a Gazette notice allowing for exceptions to scheme requirements in exceptional circumstances
- d. Review the operation of the scheme after a specified period of time, and in other defined circumstances (such as failure to meet targets)
If scheme performance issues arise, the Minister would have the ability to:
- a. appoint a Crown review team
- b. appoint a Crown Manager
- c. dissolve the PRO Board
- d. take over and manage assets of the PRO
- e. make changes to the Board
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Secretary for the Environment (or authorised third party)
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4. Establishment responsibilities
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- a. Priority setting tool for identifying potential products for EPR
- b. Undertake non-statutory process to develop further details for how a successful scheme may be designed and operated (eg, through open procurement process with requirements to ensure industry, Māori and public interests are represented)
- c. Set criteria for assessment of PRO application
- d. Provide advice to the Minister on appointing a PRO
- e. Be required to act independently in discharging functions, powers and duties
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5. Setting detailed requirements
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Develop and publish:
- a. information disclosure requirements
- b. scheme-specific design requirements
- c. framework for setting and collecting scheme charges
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6. Registration and approval of regulated products
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- a. Establish and operate registration portal and categorise regulated products
- b. Approve products for sale in the scheme
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7. Monitoring and provision of advice on scheme performance
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- a. Undertake full review of scheme as required
- b. Monitor scheme performance
- c. Enforce obligations using improved CME tools
- d. Appoint auditors to support compliance monitoring
- e. Provide advice to the Minister as required
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Producer responsibility organisation
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8. Establishment
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- a. Secure funding to set up corporate office, systems and procedures
- b. Enter into arrangements with producers/importers/other relevant parties (eg, take-back service providers and operators, councils)
- c. Set up relevant scheme logistics (eg, establishing a return network and transport logistics, or procuring counting and consolidation facilities)
- d. Enter into arrangements for recycling and/or reuse and/or repair of products and/or materials
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9. Ongoing scheme operation
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- a. Promote the scheme and ensure participants have necessary information to participate in the scheme
- b. Coordinate and manage the scheme in compliance with regulations and requirements set by the Secretary
- c. Manage financial elements of scheme including:
- setting scheme charges, and reviewing and updating as required
- collecting deposits and/or scheme charges from producers and/or importers
- paying handling fees to return point operators
- arranging payment of refunds directly or indirectly (eg, via return point operators)
- d. Manage sites required for scheme operation (eg, consolidation and counting sites)
- e. Arrange for transport and/or recycling and/or processing and/or repair and/or reuse of specified products
- f. Collect agreed information from scheme participants
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10. Reporting and advice
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- a. Provide regular reporting as set out in the information disclosure requirements
- b. Provide advice to the Secretary on specified topics
- c. Provide to the Minister (through the Secretary) on assessments of scheme performance, financials and forward projections
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Scheme participants (eg, producers, manufacturers, importers, retailers, return point operators, councils, materials recovery facilities, recyclers, consumers, exporters, online retail platforms)
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11. Comply with obligations placed on them
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- a. First responsible suppliers are prohibited from selling their products unless they meet certain obligations
- b. Take-back service providers and operators will be subject to obligations (eg, to enter into service agreements with PROs, covering payments of deposits, handling fees, etc)
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Ministry for the Environment
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12. Ensure appropriate compliance monitoring and enforcement
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- a. Monitoring schemes and identifying non-compliance through a range of means
- b. Where non-compliance is identified, applying CME tools appropriate to the level and severity of offending using the tiered approach outlined in table 2.
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