Cessnock Waste Management Centre
Cessnock City Council partnered with Resource Hub to manage critical Preconstruction Operational Purpose Deduction (OPD) claims for their Cessnock Waste Management Centre (CWMC). Facing substantial financial risks due to waste levy liabilities for imported construction materials, the council sought Resource Hub’s expertise to navigate this complex process. The project focused on ensuring regulatory compliance while minimising financial impact, particularly during a time of regulatory change in NSW.
To address the council’s challenges, Resource Hub developed and submitted OPD claims for the CWMC’s Landfill Cell Extension and other infrastructure upgrades for 2024-25. These submissions aimed to exempt imported construction materials from the $170.10 per tonne waste levy, preventing significant cashflow issues. The scope of work included submission preparation, supporting evidence, and engineering quantification to ensure approval.
Challenge
Cessnock City Council faced the dual challenge of significant waste levy liabilities and navigating changes to NSW levy guidelines during the submission process. The need to accurately estimate material quantities for pre-construction OPD claims, without the benefit of weighbridge-confirmed weights, added complexity. Additionally, addressing NSW EPA feedback required revisions to submissions, increasing the effort needed to meet compliance while maintaining tight project timelines.
Cessnock City Council faced multiple challenges, including:
Managing the financial risk associated with substantial waste levy liabilities.
Adapting to changes in NSW levy guidelines and OPD requirements during the submission process.
Estimating material quantities accurately for pre-construction claims without weighbridge-confirmed weights.
Responding to NSW EPA feedback, which required revisions to the submissions and increased effort to meet regulatory expectations.
What We Did
Resource Hub collaborated closely with Cessnock City Council to develop detailed submission documents supported by robust evidence and engineering quantification. The team liaised with the NSW EPA to ensure adherence to evolving regulatory guidelines while incorporating wastage tolerances to account for material variability. Based on feedback from the NSW EPA, Resource Hub refined submission templates and processes to streamline the claims and ensure future submissions would be easier to assess.
Resource Hub’s approach combined technical expertise and regulatory insight to deliver a successful outcome:
- Prepared detailed submission documents with robust evidence and quantification to meet OPD requirements.
- Collaborated with NSW EPA to navigate evolving regulatory guidelines and ensure compliance.
- Allowed for wastage tolerances (10%-20% overrun) in the submissions to account for construction material variability.
- Enhanced submission templates and strategies based on NSW EPA feedback to optimise future claims.
Outcomes
Resource Hub successfully secured OPD claims valued at approximately $5.8 million, significantly reducing the council’s financial burden. The submissions accounted for wastage allowances, enabling flexibility in material use. Tailored recommendations strengthened the council’s operational efficiency, while the positive regulatory outcomes highlighted Resource Hub’s expertise in waste levy compliance. The project’s success also informed improved submission strategies for future pre-construction OPD claims.
Resource Hub delivered significant results for Cessnock City Council:
- Secured approval for OPD claims valued at approximately $5.8 million, alleviating substantial financial pressures.
- Ensured wastage allowances were included, covering unforeseen construction material overruns.
- Strengthened council processes with tailored recommendations to improve efficiency and mitigate risks.
- Enhanced Resource Hub’s future submission strategies to ensure ease of assessment by regulatory authorities.
Conclusion
Through our expertise in waste levy guidelines and infrastructure projects, we helped Cessnock City Council navigate complex regulatory challenges while achieving substantial financial savings. The successful claims not only safeguarded the council’s financial stability but also supported its broader infrastructure goals. Resource Hub continues to work with the council on additional OPD claims for landfill capping, leachate, and utilities infrastructure, ensuring ongoing value and compliance.