ENVIRONMENT PROTECTION (BEVERAGE CONTAINERS AND PLASTIC BAGS)
AMENDMENT BILL 2014

LEGISLATIVE ASSEMBLY OF THE 
NORTHERN TERRITORY

MINISTER FOR LANDS, PLANNING AND THE ENVIRONMENT
Serial No. 76
EXPLANATORY STATEMENT

GENERAL OUTLINE 
This Bill amends the Environment Protection (Beverage Containers and Plastic Bags) Act.
The purpose of the Bill is to ensure that effect is given to the original intent of the Act by improving clarity and functionality of existing provisions and introducing new provisions to improve efficiencies of the scheme’s operation and administration.  The Bill will strengthen enforcement potential under the Act to remedy systematic discrepancies experienced by participants of the scheme.  

NOTES ON CLAUSES
Part 1 			Preliminary Matters
Clause 1 			Short title
This is the formal Clause which provides for the citation of the Bill. The Bill when passed will be cited as the Environment Protection (Beverage Containers and Plastic Bags) Legislation Amendment Act 2014.

Clause 2			Commencement
This sets the commencement date for the Act as being the date fixed by the Administrator by Gazette notice.
Part 2	Amendment of Environment Protection (Beverage Containers and Plastic Bags) Act
Clause 3 		Act Amendment
This is a technical clause that identifies that the Bill is amending the Environment Protection (Beverage Containers and Plastic Bags) Act. 
Clause 4			Section 3 amended
The Object of the Act has been amended to better align with the intent of the Bill.  It includes that the intent is to reduce beverage container waste by providing communities throughout the whole of the Territory, as far as practicable, with access to facilities for the collection of empty containers and the payment of refund amounts.
Clause 5  			Section 4 amended
Section 4	Definitions
A number of definitional changes will take place.
The definitions of CDS principles and CEO have been removed.
Approved in relation to a waste management arrangement (WMA) means the arrangement has been approved under section 23A by the NT EPA.
Approved form meaning a form approved under section 85 has been inserted.
Commonwealth CCA has been added and refers to the Competition and Consumer Act 2010 (Cth).
The definition of contaminated, in relation to a container has been placed in the definitions clause and removed from the previous section 18(5).  New provisions rely on the definition of contaminated so it has been incorporated into section 4 to avoid it being duplicated across various sections.
Coordinator arrangement is a WMA that has been made between CDS coordinators. 
Material type is now referred to throughout the Act, so the definition has been included in new section 8A to mean the type of material from which the containers are manufactured.  
The definition of NT EPA has been inserted into this clause.  Section 6 now states that the NT EPA is to be responsible for the administration of the Act.  All references to the CEO have been removed from the Act and replaced with NT EPA.
Operator arrangement refers to a WMA that has been made between an operator of an approved collection depot and a CDS coordinator. 
Quarter mean each three month period of a financial year.
Supplier means a CDS participant that holds a supply approval. 
Supplier arrangement refers to a WMA that has been made between a supplier and a CDS coordinator.
Supplier barcode document refers to its definition as provided in section 24A(1)(b)(i).
Supplier sales document refers to its definition as provided in section 24(1)(b)(ii).
Occupier, on, place and premises has been amended to correct a previously incorrect cross referencing.  The definitions now correctly refer to section 60.
The reverse vending machine note in reference to section 19 has been removed as this is now relevant to all collection depots, not just reverse vending machines.  
Clause 6			8A Meaning of material type inserted
This section will be inserted to define material type of an approved container.  This is the type of material from which the container is manufactured and includes for example, plastic, aluminium, glass and further breakdowns such as coloured and clear plastic.
Clause 7			Part 2, Division 2 replaced
Division 2	Establishment of CDS and waste management arrangements
Division 2 will be repealed and has been rewritten to better reflect the needs in establishing the CDS and developing WMAs that are consistent with achieving the object of the Act.  Reference to the WMAs giving effect to the CDS Principles will be removed as the CDS principles are no longer a separate document but the relevant components will be incorporated into the Act.  
Section 10	CDS Established
This section will establish the CDS and identifies the matters covered by the CDS. The section will state that the establishment of the CDS includes the sorting of approved containers by material type to address the current operational requirement to sort by brand type.  It will also include that the approval of a WMA between CDS participants must be appropriate for the CDS.  It will not only refer to the delivery of empty approved containers to a collection depot but also the acceptance of those approved containers and the payment of refunds for them.  The establishment of the CDS will also include the acceptance by CDS coordinators of empty approved containers that have been delivered by collection depots and sorted by material type, and the subsequent payment for those containers.  Reference to WMAs giving effect to the CDS Principles will be removed.
Section 11	Waste management arrangements generally.
This section has been rewritten to state that a WMA is a written arrangement between two or more CDS participants and will relate to approved and/or regulated containers as appropriate to the participant.    
Reference to the WMA giving effect to the CDS Principles will be removed as the CDS Principles will no longer be a separate document but the relevant components will be incorporated into this section.  Those components considered to be relevant that will be included are:  minimising the handling and sorting of empty containers, provisions for payments, dispute resolution process and those matters prescribed by regulation.  These will be stipulated to assist in addressing key operational issues within the scheme, including inefficiencies with the current high sorting of containers and the need for adequate dispute resolution processes to avoid the need to address payments through the court system.  A provision in a WMA will be of no effect if it is contrary to the Act. 
Section 12 	Coordinator arrangement 
Reference to the CDS Principles will be removed from this section.  It will now deal with the WMA between CDS coordinators and will be referred to as a coordinator arrangement.  To ensure the CDS operates as intended, CDS coordinators will need to come to an arrangement/s in order to allow for any one of them to be accepting all containers belonging to all of the CDS coordinators combined.  This could be in the form of one or more arrangements, or a single arrangement, as long as the effect of them is that of having one arrangement agreed between all of the CDS coordinators.  The effect of these arrangement/s will need to be that one coordinator pulling out of the scheme will not impact on the rest of the participants.  A schedule has been developed to detail the requirements of the coordinator arrangement.
This section will also authorise CDS coordinators to make and give effect to a coordinator agreement that complies with this Act, even if the arrangement would be regarded as contravening Part IV of the Competition and Consumer Act 2010 (Commonwealth CCA).  To address this, only the behaviours specified in the Schedule or required to deal with the matters listed in section 11(2) will be excepted from the Commonwealth CCA.
This section does not limit the new proposed section 11 of the Act. 
Clause 8			Section 17 amended
The definition of “bulk quantity” in relation to containers will be amended from being defined as 500 containers to 1500 containers.  As the scheme has now been in place for over 2 years, the presentation of pre scheme containers is no longer a significant issue.  This increase will also assist in reducing red tape and waiting times for consumers at collection depots.
Clause 9    			Sections 18 to 20 replaced
Sections 18 to 20 will be repealed and replaced with new sections that better reflect the intention of the scheme.
Section 18	Acceptance of empty approved containers by operator of a collection depot
This section has been rewritten.  The title will be changed from “collection depot to pay refund amount for empty containers” to better reflect the content of this section.
To better achieve the purpose of the Act, section 18 will now clearly state that it is an offence of strict liability for a collection depot to not accept all containers providing they are approved and purchased in the Territory or corresponding jurisdiction after the start of the CDS.  
Further protection for the collection depot will be built into this section, in that a collection depot will not be required to accept an empty container if they are unable to verify that a supply approval is in force or if they are unable to identify the approved refund marking.  If a WMA stipulates otherwise, however, a collection depot will be required to accept those containers.  Such a stipulation may be provided, for example, if agreements are made for the acceptance of materials that have been crushed prior to receipt and the approved refund marking cannot be identified as a result of this. 
Before accepting empty containers, the operator of a collection depot may require the person delivering the containers to sort them by material type.  This will allow for increased efficiencies at the depot with less waiting time for the community.  
Section 19 	Payment of refund amount by operator of collection depot
The title of this section will be amended to better reflect its content.  This section has been rewritten to address a collection depot’s requirement to pay a refund amount generally (i.e. all depot types) as opposed to how specifically a reverse vending machine payment must be made.  
Section 20 	Acceptance of and payment for empty approved containers by CDS coordinator
This section has been rewritten to better align with the Act’s intention for written WMAs for the processing of containers being the basis for payments within the scheme.  Prior to the proposed changes, section 20 provided an avenue for a collection depot operator to be reimbursed for refunds paid out and reasonable costs of handling the products.  This section was used in an unintended way by some participants who chose not to negotiate agreements.  To address this, WMA’s will be approved by the NT EPA and provide the basis for payment.
Section 20 will now apply if there is an approved WMA in place between the collection depot operator and the CDS coordinator.  It will apply if the collection depot operator delivers empty approved containers to a CDS coordinator that they have an arrangement with.  The materials will have been sorted by material type and a refund amount will have been paid out on each approved container.  Under this section, the collection depot operator will be able to claim from the CDS coordinator a refund amount and handling fee for the containers payable in accordance with the approved WMA.  The CDS coordinator will be required to accept the empty approved containers unless they are unable to identify the container as being an approved container, they are not satisfied that the container was purchased in the Territory or corresponding jurisdiction after the start of the CDS, or the container is contaminated or has a removable lid.  A CDS coordinator will not be able to refuse to accept the empty containers, however, if their approved WMA requires acceptance in that circumstance.  
The CDS coordinator will be required to pay the collection depot operator the refund amount and related amount in accordance with the approved WMA.  This will address some existing issues in which some operators are relying on being paid reasonable costs in the absence of a formal agreement being in place.  This section will not be commenced until a proposed section 12 coordinator arrangement has been approved to allow for containers to be sorted by material type.
Clause 10 			Section 21 amended
Section 21	Making application 
As the NT EPA will be responsible for the administration of the Act, CEO has been omitted and replaced with NT EPA.  Section 21 will include that a CDS approval application must be accompanied by a copy of each proposed WMA relevant to the approval, and for a coordinator approval, a copy of the agreements listed in proposed section 12(3) as entered into by the parties to the agreement.
To improve public access to the CDS, the application for a collection approval will be required to state the days and times during which it is proposed to open the collection depot to the public.  
Clause 11			Sections 23 and 24 replaced
Sections 23 and 24 will be repealed and replaced.  New sections 23A, 24A, 24B and 24C are being inserted.  These changes are designed to provide greater clarity in the requirements for approving applications and the conditions to be imposed on different types of approvals. 
Section 23	Deciding application
The title has been rewritten to better reflect the new content of this section.  Section 23 has been rewritten.  
Previously the CEO (or delegate) gave approvals; this will be changed to the NT EPA.  The NT EPA will grant a CDS approval if under section 23A, the NT EPA has approved each WMA relevant to the approval.  The NT EPA will be required to take into account the proposed location of the collection depot and the provisions of the WMA prior to granting an approval.  The NT EPA will be required to be satisfied that the collection depot will be accessible to the general public in the proposed location and open on a consistent and regular basis.  This will aim to address the current operational issues of some collection depots not being open to the public and operating without a formal arrangement in place.
Section 23A	Approval of waste management arrangement
This will be a new section.  The NT EPA will formally approve a WMA if satisfied that the arrangement includes provisions that deal with matters mentioned in proposed section 11(2) and if relevant, proposed section 12(3).  Section 11(2) will include information that a WMA must address.   The NT EPA will also be required to be satisfied that if other provisions are included, they are not inconsistent with the Act and that all provisions are appropriate for the CDS.  This intends to address existing issues surrounding some collection depots operating without formal waste management arrangements in place and going through the court system to be refunded costs.
Under proposed section 24(b), the holder of an approval will be required to submit any varied or replacement WMA to the NT EPA for approval.  If the NT EPA refuses to approve a WMA given to it in accordance with proposed section 24(b), the NT EPA will be required to give the CDS approval holder a review notice for the refusal.  
Refusing to approve a waste management arrangement under this section is reason to refuse to grant a CDS approval. In this circumstance a review notice must be given under section 25(4).
The NT EPA will be authorised to approve a WMA between CDS coordinators, if the arrangement is authorised under proposed section 12(5)(b) of the Act.
Section 24 	Conditions of CDS approval generally
To enable increased enforceability of the Act, this section will include that a CDS approval is subject to the holder of the approval having in place one or more approved WMA relevant to the approval.  If a WMA is varied or replaced, that variation will need to be submitted for NT EPA approval, pending consideration of the arrangements under section 23A.
The NT EPA may, if necessary, vary the conditions of the CDS approval. A CDS approval will be subject to the conditions listed in sections 24A(1), 24B and 24C as relevant. 
Section 24A	Conditions of a supply approval
A condition of a supply approval is that the containers to which the approval relates must bear the approved refund marking.  
For those approved containers that display a barcode and are for sale in the Territory, suppliers will be required to provide CDS coordinators with whom they have an approved supplier arrangement, the barcodes for those approved containers (a supplier barcode document).  This will enable CDS participants to make use of sorting technology that utilises barcodes to avoid manual sorting and improve efficiencies in the scheme.
The supplier will also be required to provide the CDS coordinator with whom they have an approved supplier arrangement, the total number of approved containers by material type that have been sold in the NT during the immediately preceding quarter (a supplier sales document) within 21 days of the end of the quarter.  This will be used to enable coordinators to calculate market share for the purpose of establishing the proportion of redeemed containers that each supplier is responsible for. 
Section 24B 	Conditions of collection approval
A collection approval will be subject to the depot being accessible to the general public and open to the general public on a consistent and regular basis.  This aims to address the current operational issue of some collection depots only operating on a commercial basis and not being open to the public.  It will allow for an even playing field for existing and future participants.
Section 24C	Conditions of coordinator approval
Within seven days of receiving a supplier barcode document from a supplier, CDS coordinators will be required to provide each other CDS coordinator and each collection depot operator with whom they have an operator arrangement, a copy of the supplier barcode document.  If the coordinator receives a supplier barcode document from another coordinator they will be required to then forward that supplier barcode document to the collection depots with which they have an operator arrangement.  This will assist in achieving efficiency in the CDS by allowing collection depot operators to utilise barcode reading technology for minimising handling of containers and maintaining accurate records. 
A coordinator will not be permitted to require a collection depot to sort empty approved containers into more than the number of material types prescribed by regulation, which initially will be 9 material types.  This will reduce the amount of handling required at the collection depot which will improve efficiencies.  A CDS coordinator approval will be subject to the approval holder having adequate facilities and arrangements in place to ensure they are able to accept all empty approved containers that the holder is required to accept under section 20, and from an approved collection depot operator with whom they have a WMA. 
A CDS coordinator will not be permitted to refuse to accept the empty approved containers that have not been sorted by product names they display and will not be able to require an operator to sort containers by product name.  
This section will not be commenced until a section 12 coordinator arrangement has been approved to allow for containers to be sorted by material type.
Clause 12			Section 26 amended
Section 26	Duration of approval
To provide CDS participants with the flexibility and the opportunity to trial arrangements between each other, section 26 will be amended to state that an approval remains in force for a period not exceeding 5 years.
Clause 13			Section 30 amended
Section 30	Variation of conditions
As the NT EPA will be responsible for the administration of the Act, reference to the CEO will be removed and replaced with NT EPA.
The NT EPA will be able to decide to vary the conditions of a CDS approval if amendment to, or replacement of, an approved WMA relevant to the approval requires it.
Clause 14			Section 37 amended
Section 37	Grounds for suspending or cancelling an approval
The reference to the grounds for suspending or cancelling a CDS approval based on not complying with the CDS Principles will be removed from section 37 as the CDS Principles have been removed from the Act.  To improve enforcement potential, it will be replaced with a provision that the NT EPA has grounds for suspending or cancelling a CDS approval if the holder of the approval has failed to comply with a condition of the approval or an approved WMA relevant to the approval or if the approval holder has failed to achieve a target set under section 49(3) within the specified period.  An approval will also be able to be suspended or cancelled if an approved WMA relevant to the approval can no longer operate according to its provisions.  This will enhance compliance and enforcement associated with the Act.
Clause 15			Section 49 Replaced
Section 49	Minister or NT EPA may establish targets for reuse, recycling or other disposal of approved containers
This section has been replaced with a new section that allows the Minister or the NT EPA to establish targets for reuse, recycling or other appropriate disposal of approved containers which must then be published on the NT EPA’s website.
The targets can apply to all CDS participants, or to particular classes of CDS participants, or set targets to be achieved by the holders of a particular class of CDS approvals.
If the targets are established for the holders of a particular class of CDS approvals then a notice must be given by the NT EPA stating what the targets are, the period in which they must be achieved and stating that failure to achieve the targets is a ground for suspending or cancelling a CDS approval.
All compliance with established targets must be monitored by the NT EPA.
Clause 16			Section 86 repealed
Section 86	Delegation by CEO
As the NT EPA will be responsible for the administration of the Act, delegation by CEO will be removed. 
Clause 17			Section 91A inserted
Section 91A will be a new provision titled “acquisition on just terms”.  This is a standard provision that states that if the operation of the Act results in an acquisition of property otherwise than on just terms, the person is entitled to receive from the Territory the necessary compensation. A court may decide the amount of compensation or make the order to ensure the acquisition is on just terms.  
Clause 18			Section 92 replaced
Section 92	Annual report
This section will be amended to say the NT EPA (as opposed to the Minister) must prepare a report about the administration of the Act and that the Minister must table the annual report in the Legislative Assembly within 4 months (as opposed to 3 months) after the end of the financial year. This is to maintain consistency with other similar reporting requirements of the NT EPA.
Clause 19			Section 93 amended
Section 93	Regulations
The need to make a regulation that provides for matters relating to the CDS Principles will be removed as the relevant sections of the CDS principles will be incorporated into the Act at section 11(2).
A provision to create a regulation relating to matters to improve the efficiency and effectiveness of the whole of the CDS or any feature of the CDS will be inserted.  This will provide the NT EPA with an avenue for creating efficiencies as the CDS matures and opportunities for improvements arise.  
Section 93(2A) will provide that a regulation may be made for improving efficiencies, even if the improvement of the efficiency or effectiveness of a particular matter results in another matter being less efficient or effective.    
Clause 20 			Part 7 inserted
Part 7	Transitional matters for Environment Protection (Beverage Containers and Plastic Bags) Legislation Amendment Act 2014
Part 7 has been inserted to provide transitional arrangements for CDS participants that are already operating within the existing CDS. It will provide specified time periods for complying with certain parts of the new Act.
Section 94 	Definitions
Additional required definitions have been developed for the transitional arrangements.
Amended refers to the provision of this Act as in force on and after the commencement day.
Amendment Act means the Environment Protection (Beverage Containers and Plastic Bags) Legislation Amendment Act. 
Appropriate WMA is a waste management arrangement that meets the criteria for approval specified in section 23A(1)(a) to (d). 
CEO as defined in the former Act.
Commencement day is defined as being the date fixed by the Administrator by Gazette notice.
Existing validated approval is defined in section 96(4).
Former means that provision as in force immediately before the commencement day.
Former Act means this Act as in force before the commencement day.
Related WMA refers to a waste management arrangement to which an existing validated approval relates. 
Replacement approval will be issued when an existing validated approval has been submitted to the NT EPA with related, appropriate WMAs.
Section 95	Existing application relating to CDS approval
An existing application will be an application under the former Act for a CDS approval, renewal of a CDS approval or the variation of a CDS approval that has not yet been decided.
This new provision will state that the NT EPA must decide whether existing applications meet the new requirements under amended Part 2, Division 6, subsections 1 and 2 (as relevant) .  The NT EPA may request further information from the applicant. 
Section 96	Validation of CDS approvals
Section 96 will state that all approvals granted before the commencement day are declared as being existing validated approvals irrespective of how the approvals were given.  For an approval no longer in force before the commencement day, it will be declared that the approval was valid and had effect under the former Act in accordance with the conditions of approval.  This will address an inability to enforce a number of early approvals as they may not have addressed the CDS principles to their fullest ability.  This will also allow CDS participants to continue their current operations, with minimal disruptions to their business until such time that they have aligned with the new requirements of the Act. 
Section 97 	Continuation of existing valid approval and related waste management arrangements
An existing validated approval will continue to be in force following the commencement day subject to the conditions under former section 24(3).  For a supply approval, it will be subject to the conditions in new section 24A(1) and for a collection approval, the conditions in new section 24B.  An existing validated approval will also continue to be in force providing its related WMAs are appropriate WMAs as determined by the NT EPA subject to the conditions of approval in the amended section 24(b).  That is, the WMA must be approved by the NT EPA and include the relevant conditions provided in section 24.  
If, as a result of granting a CDS participant a replacement approval, another CDS participant no longer has an appropriate WMA in accordance with section 23A, the NT EPA will give a notice under section 98(2) for the holder to apply for a replacement approval.
If no WMAs are appropriate, the NT EPA must advise the holder of the approval to apply for a replacement approval to be approved under section 23A of the amended Act.  If an existing validated approval has more than one WMA and not all of them are appropriate, the NT EPA may give notice requiring the holder of the approval to submit one or more WMAs within a specified period to enable the NT EPA to decide whether or not to approve arrangements under section 23A to replace the related WMAs.
If the holder of the approval applies in writing to the NT EPA, the specified period may be extended by a further period not exceeding the duration of the original period.  If the notice given by the NT EPA is not complied with, the NT EPA can request the approval holder to show cause as to why its approval should not be suspended or cancelled under Part 2, Division 6, Subdivision 3 on the ground that the holder has contravened a requirement of the NT EPA. A related WMA will continue to apply until it is replaced by an approved WMA as per the conditions imposed by subsection (1)(d) or the until the day on which the existing validated approval ceases to be in force or until it is cancelled under section 100.
This section does not prevent the holder of a CDS approval granted under the former Act from applying to the NT EPA for a cancellation of the approval because the holder has ceased to be a CDS participant.
Section 98	 CDS approval required to replace existing validated approval
The new section 98 will apply to the holder of a related appropriate WMA that has ceased to meet the criteria for approval, due to a CDS participant that is party to that WMA being granted a replacement approval.  Under these conditions, the NT EPA must give the holder of the existing validated approval a notice requesting the holder to apply, within a relevant prescribed period, for a replacement approval to replace the existing validated approval, referred to as a replacement approval.  This must be done as soon as practicable after the NT EPA becomes aware that the related WMA has ceased to be an appropriate WMA.  
If an existing validated approval has no related WMA that is appropriate, the NT EPA must give notice as soon as practicable after the commencement day, requesting the holder apply, within a relevant prescribed period for a replacement approval.  
The existing validated approval will be cancelled if a replacement approval is granted or if the holder does not apply for a replacement approval within the prescribed period.  
Subject to section 99(6) if the holder applies in writing no later than 30 days before the end of the relevant prescribed period, the NT EPA may extend the prescribed period for up to six months.  
The NT EPA must give the holder a review notice if refusing to extend the replacement period and Part 2, Division 7 Reviews applies. That is the affected entity can apply to the Local Court for a review of the merits of the decision.    
Part 2, Division 6, Subdivision 1 applies in relation to an application for a replacement approval.
In this section, the relevant prescribed period in relation to section 97(1)(e) is two months after the day on which the notice is given. In relation to section 97(1)(f) it is six months for a coordinator approval or eight months for a collection or supply approval.
Section 99 	Arbitration
This is a new section that applies if the parties to a related WMA are unable to reach an agreement about the provisions of an appropriate WMA within the prescribed period.
If a coordinator arrangement cannot be agreed upon within the relevant period then the matter must be settled by an arbitrator. If it is a supplier or operator arrangement then the parties may choose to have a decision by an arbitrator.
If the parties cannot reach an agreement a notice signed by the parties must be given to the NT EPA before the end of the negotiation period stating that an agreement could not be reached and that the matter must be referred for arbitration. The notice must also state whether or not the parties have reached an agreement about the arbitrator who is to decide the matter and, if so, provide the details of the arbitrator.
If the parties cannot come to an agreement on who the arbitrator should be, the NT EPA must appoint an arbitrator.
The NT EPA can extend the negotiation period to enable the arbitration to be completed, the signing of, and granting of, an appropriate WMA.
In relation to a coordinator arrangement, if a CDS coordinator disagrees with the arbitrator’s decision the coordinator may decide not to continue as a CDS coordinator. If this is the case they must give written notice of this to the NT EPA and each CDS participant with whom the coordinator has a related WMA.
All costs of arbitration are shared equally between the parties including any CDS coordinator who has decided not to continue as a CDS coordinator.
In this section, the negotiation period means the relevant prescribed period under section 98 or if the period has been extended under section 98(5) – the extended period. Prescribed period means 14 days before the end of the negotiation period.
Section 100 	Cancellation of existing validated approval
Under new section 100, if the NT EPA grants a replacement approval under the new provisions, the NT EPA must cancel an existing validated approval.  That is, an approval under the previous legislation that has been replaced with an approval under the new provisions.  If the approval holder does not apply for a replacement CDS approval within the required time period after the notice has been given (as stated in section 98(4)(b)), the NT EPA must cancel the existing approval.  The NT EPA must give a notice of cancellation under subsection (1)(b).
Section 101 	Continuation of certain rights under existing validated approval
This new section will be for approved collection depot operators who hold an existing validated approval or a cancelled validated approval who have delivered relevant containers to a CDS coordinator before, on or after the commencement day.  Former section 20(2) to (4), which allows a depot operator to require a CDS coordinator to pay the refund amount and reasonable costs within 30 days of receiving a notice, will continue to apply.  This provision will be to ensure that collection depot operators are reimbursed by CDS coordinators (in the absence of a formal waste management arrangement) for all refund amounts and associated handling fees that have been paid out prior to the changes taking effect.  
In this section, relevant containers means containers to which a circumstance mentioned in former section 20(1)(a) to (c), being approved containers for which a depot operator has paid a refund, applies. Cancellation notice means a notice given under section 100(2).
This section will not be commenced until a Section 12 coordinator arrangement has been approved to allow for containers to be sorted by material type.
Section 102	Suspension or cancellation of the CDS approval under Part 2
If the CEO has given a show cause notice to a CDS approval holder under the former Section 38 and had not made a decision in relation to the suspension or cancellation of the approval before the commencement date, the NT EPA will be required to continue to deal with the matter under amended Part 2, Division 6, Subdivision 3. 
Section 103	Offences
A prosecution for an offence against amended section 18(1) or 19(1) may be commenced if the containers are delivered to the collection depot after the day this part of the Bill commences and no payment of the refund is made.  The repeal of these sections does not affect current prosecutions dealing with containers delivered before the commencement of this part of the Bill. 
Section 104	Continuation of approved forms 
Forms previously approved will continue to have effect as if they had been approved by the NT EPA under amended section 85.
Section 105	Transitional regulations
It is proposed that regulations may provide for a matter of a transitional nature to allow the facilitation of a provision of the former Act to a provision of the amended Act.  The regulation may be retrospective providing it is after the commencement of this part of the Bill, providing it does not disadvantage a person by decreasing their rights or imposing liabilities.  Regulations made under this section will expire one year after the date that this section commences.  
Clause 21			Schedule inserted
Schedule	Agreements for coordinator arrangement provisions 
In accordance with section 51 of the Competition and Consumer Act 2010 (Cth) (the CCA), this proposed schedule details the arrangements that the Northern Territory will authorise CDS participants to enter into to give effect to the legislative amendments.  This Schedule is to facilitate the matters referred to in section 12(5)(b). All other components of the CCA must be adhered to.
1	Definitions
This clause provides definitions for terms that will be used within the schedule.  
Accepted containers are approved containers that are the subject of a primary coordinator’s approved supplier arrangements or have been accepted by a secondary coordinator from a collection depot operator.
Market share refers to the coordinators share of the total number of all approved containers sold in the NT during a quarter based on the sales declarations for that quarter.  
Primary Coordinator is a CDS coordinator who has an approved supplier arrangement relating to particular approved containers.
Sales declaration refers to a statutory declaration given under an agreement in clause 2.
Secondary Coordinator is a coordinator who accepts containers from a collection depot with whom they have an approved operator arrangement with but is not a party to the approved supplier arrangement that relates to those containers.   
2 	Quarterly sales declaration
CDS coordinators will be required to provide each other with a statutory declaration stating the total number of approved containers by material type, anticipated to be sold in the NT during the quarter.  This anticipated amount should be based upon the coordinators aggregated supply information from the previous quarter.  CDS coordinators will also be required to provide the total number of approved containers actually sold in the NT in the previous quarter and an adjustment of the previous quarter based on the actual sales.  
The statutory declaration must be given by a CDS coordinator within 7 days after they have been given all of the supplier sales documents for the previous quarter.
The sharing of this information will enable the market share of containers sold in the NT to be calculated for the purpose of establishing the proportion of redeemed containers each coordinator is responsible for. 
3	Sorting empty approved containers
This clause will require each coordinator to establish in each operator agreement the material types into which empty approved containers must be sorted, which can be no more than 9 material types.  This will improve efficiencies as there will no longer be sorting by brand type, reducing the level of handling required by collection depots.  
4	Weighing and counting empty approved containers
This proposed section will state that an agreement must be established to specify the method that the secondary coordinator will use for weighing, counting and recording accepted containers in the material types into which they are sorted when accepted.  This is so that the secondary coordinator has an agreed method for establishing the quantities that the primary coordinator will be invoiced for. 
5	Operator costs and process fees
An agreement must be in place for a primary coordinator to pay the secondary coordinator for the operator costs and a process fee.  The operator costs are the refund amounts paid to the collection depot for accepted containers and the amount paid to the collection depot for the collection, sorting, aggregation and delivery of accepted containers.  The process fee is to carry out the processes necessary to prepare accepted containers for transportation for reuse, recycling or appropriate disposal.  
To ensure that payment is calculated on a fair and equitable basis, a formula has been established.  This formula involves the market share multiplied by the sum of the operator costs and the process fee.  The agreement must require that a written claim for payment along with all copies of evidence of how the claim was calculated be provided to the primary coordinator.   The claim must be paid within 14 days.  
The CDS coordinators can specify a different method of calculation for the payment costs and proceeds of sale in the agreement.
6.	Transportation costs and proceeds of sale
This proposed clause requires an agreement between a primary coordinator and a secondary coordinator in relation to the transportation of accepted containers for their reuse, recycling or appropriate disposal and the sale of those containers.  This may involve the primary coordinator paying the secondary coordinator if the transport costs exceed the proceeds of the sale or the secondary coordinator paying the primary coordinator if the proceeds of the sale exceed the transport costs.  
A formula has been provided to establish the amount payable.  This involves market share multiplied by the cost of transportation minus the proceeds of sale made from the sale of the accepted containers.  The secondary coordinator must give the primary coordinator a written statement about the payment to be made, along with documents of evidence of the calculation of the amount payable.  
The CDS coordinators can specify a different method of calculation in the agreement for the payment costs and proceeds of sale.
The coordinator that is liable for payment must do so within 14 days. 
7.	Revision of claims for payment
If a primary coordinator’s market share requires revisions because of an adjustment of the numbers of approved containers stated in sales declarations, it will be a requirement that an agreement be in place for that secondary coordinator to revise the claim made.  The secondary coordinator must provide a statement showing the revision and how it is calculated.  The statement must specify if the primary coordinator is liable to pay an additional amount.  This amount must be paid within 14 days.  The agreement must also specify if the secondary coordinator is liable to refund an amount to the primary coordinator due to overpayment.  This must also be paid within 14 days.
8	Audits
To promote transparency, it is proposed that an agreement specify an external auditor appointed by the coordinators to review the relevant information of each coordinator for a financial year and provide the coordinators a written report based on the findings.  
The auditor may be utilised if at any time a CDS coordinator reasonably believes that any of the relevant information provided by another coordinator is inaccurate.  The agreement must specify the auditor payment process as outlined here.  This agreement must also detail how payments between coordinators are adjusted if it is found that inaccurate information has been provided.  An auditor must have the necessary formal qualifications and cannot be a CDS participant or an employee of a CDS participant.
In this clause, relevant information means financial and other information that is relevant to the matters that are subject of a coordinator agreement.
9	Statutory declarations
Under this proposed section, CDS coordinators may require that any information given under an agreement in clauses 3 to 8 must be given in a statutory declaration.
Clause 22			Act Further Amended
Minor amendments will be made to the Act to facilitate the transfer of responsibility for the administration of the Act from the CEO to the NT EPA.
Part 3	Amendment of Environment Protection (Beverage Containers and Plastic Bags) Regulations 
Clause 23			Regulations Amended
Minor amendments will be been made to facilitate the transfer of responsibility for the administration of the Act from the CEO to the NT EPA.
Clause 24			Regulation 2FA amended
Minor amendments will be made to facilitate the transfer of responsibility for the administration of the Act from the CEO to the NT EPA.
Clause 25			Regulation 2FB inserted
Regulation 2FB will be inserted in relation to section 24C(c) providing that the number of material types cannot exceed nine splits.
Clause 26			Regulations 11 amended
Minor amendments will be made to facilitate the transfer of responsibility for the administration of the Act from the CEO to the NT EPA.
Clause 27			Expiry 
This Act will expire on the day after it commences.