Deposit and Return Systems and Reverse Vending Pilot Projects - Innovation Fund (DEP 001)

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1 Deposit and Return Systems and Reverse Vending Pilot Projects - Innovation Fund (DEP 001) Guidance Notes for Innovation Fund Grant Application 1. Background and Aims of the Pilot Projects The Scottish Government launched Scotland's first Zero Waste Plan on the 9th June The Plan sets out the Scottish Government's vision for a zero waste society. To achieve this vision the Plan sets out radical new measures, including two new targets that will apply to all waste: 70% target for recycling all waste and maximum of 5% sent to landfill, both by Recycling rates are currently 38%, hence the need to support projects to increase recycling rates. Deposit and return systems can produce high recycling rates and high quality material that can be used for closed loop recycling. In its simplest form, deposit and return systems charge an additional fee on each container which is purchased. The consumer can then have this deposit refunded at dedicated return points when the empty container is deposited back to the system. This provides a strong economic incentive for waste materials (which have been discarded) to be returned, source segregated, and to locations which ultimately result in them being recycled. Reverse vending systems allow the take back of containers (which have had no deposit levied) in exchange for a reward. Equipment used to provide this facility is usually an automated reverse vending machine (RVM), which can, depending on its level of sophistication, recognise different container types and materials, source separate them, in some cases, compact materials to increase storage, and dispense a reward to the facilities user. The Scottish Government, in its election manifesto (2011), committed to pilot a deposit return/reverse vending system for single use plastic, glass and aluminium containers and work with partners in the retail sector to explore options. The deposit return/reverse vending systems are intended primarily to increase recycling of single use containers (for plastics, glass and aluminium containers) and at the same time increase the quality of this material, to support the development of home grown closed loop re processing infrastructure in Scotland. DRS and RV Pilot Projects DEP 001 Page 1

2 The aim of the innovation fund is to support organisations and partnerships to develop deposit and return and reverse vending pilot projects and stimulate public behaviour change. Funding is available for the installation of new infrastructure and equipment and the operation of the pilot project, including the development of communication materials, to support the widespread and appropriate use of the pilot facilities and monitoring of its performance and success. 2. Who can Apply? This will include (but not be limited to) organisations (public and private companies, local authorities, registered charities and others, including consortiums) who can provide deposit and return systems/reverse vending facilities for the following examples of different types of scenarios: Retailers/high streets/shopping malls; Schools/colleges/universities; Public transport hubs e.g. bus stations/airports/railways; Events venues/public attractions e.g. theme parks/arenas; Music and arts festivals; Sports and leisure facilities; Product or sector based systems; e.g. food and drink manufacturers, hospitality organisations; Community based systems e.g. islands, remote communities. 3. What is the scope and requirements of this programme? Zero Waste Scotland s priority materials for the pilot are single use containers of plastics, aluminium and glass. To be eligible to apply for a grant your project must fulfil the following criteria: Your project will need to be located in Scotland; Your project must source its inputs from the waste streams in Scotland; You will need to demonstrate that the project is not viable without the Zero Waste Scotland funding intervention; Your project will need to be commercially sustainable in the medium and long term; DRS and RV Pilot Projects DEP 001 Page 2

3 Your project must be able to demonstrate clearly defined and, where possible, secured end markets for the recyclables collected; You project must provide access to required monitoring and evaluation data, which may be used to prepare press releases and best practice cases studies to encourage replication of the pilot projects across Scotland; You will need to demonstrate an environmental commitment and that you will undertake an overall environmental impact assessment of your project; You will need to demonstrate a commitment to Health & Safety and plans to ensure the safety of the general public and the waste management operatives who will be using the project assets. It will be a condition of all grant funding that project assets and associated communications materials shall use the Recycle for Scotland i1 branding in accordance with Zero Waste Scotland s branding guidelines. Assessment of applications will include the robustness and appropriateness of the applicant s communications and marketing plans to maximise public or consumer participation. 4. What is out of scope? The funding will only apply to projects where new recycling facilities are being introduced i.e. a new scheme or the expansion of an existing trial scheme and should not be used to replace existing equipment or services. 5. Evaluation Criteria Each application will be evaluated against the following criteria: Financial robustness of the proposal and demonstration that the funding provided will positively impact on the long term financial sustainability of the scheme/project (20%); Quality of arrangements for the operation of the scheme and accessibility to the general public (20%); Strength of the applicant s ability to deliver the project within the required timescale of 27 September 2013 (20%); Quality of arrangements for the recycling of the separately collected recyclables (10%); 1 DRS and RV Pilot Projects DEP 001 Page 3

4 Quality of arrangements to communicate the scheme to the general public and incentivise the public or consumers to use the system (10%); Quality of arrangements to monitor and evaluate consumer behaviour change, and provide required data to Zero Waste Scotland (10%); Environmental commitment & overall environmental impact of new collection service (5%); Overall commitment to Health & Safety of both the general public and the operatives who will be utilising the equipment (5%). 6. How much funding is available? The total fund for this programme is 900,000 and we would expect a range of projects to be funded. We will fund up to 100% of pilot project costs. Where the total project costs exceed the grant awarded you will need to put in place co funding proposals which will be assessed for financial robustness. 7. What can be funded? Zero Waste Scotland will fund the capital and operational costs of the pilot project during the trial period. Revenues generated from materials recycling should be used to offset the capital and operational costs of the pilot project. You will need to demonstrate that you have sufficient funding to support the on going operation of your project, once the trial period is complete. We will not fund replacement assets; all funding must be available only for activities that are additional to any baseline operations. 8. What is required in return? A contract will be agreed for each successful applicant based on information provided in the application form, which will cover the trial period and will start from the date of operation. Milestone payments will be agreed, and paid on achievement of these for the ordering, delivery and operation of equipment etc. Successful applicants will be required to provide evidence of expenditure. Milestones and payment schedules will be agreed during the contract negotiation period. Please note that it can take up to 30 working days for Zero Waste Scotland to process requests for payment. Successful applicants will be required to provide information on the tonnage of material collected for recycling, the quality of the material and the end destination for that material from the date of DRS and RV Pilot Projects DEP 001 Page 4

5 operation of the pilot project. Successful applicants will also be required to submit project updates and descriptions of the required monitoring and evaluation data, which Zero Waste Scotland may use to develop best practice case studies. 9. The Application Process and Timescales Applications will be accepted from 11 June 2012 and funding will be available from 3 July We would encourage early applications due to the tight timelines of this programme and the finite budget. The final deadline for applications will be 28 September Please note that there is a finite budget available which will be awarded on a first come first served basis to those applications that successfully meet the criteria of the programme. If unsuccessful, you may re apply so long as you address the reasons why you were rejected previously. All funds must be spent by 27 September 2013 which will mean that all evidence such as receipts should be received by Zero Waste Scotland no later than 6 September We would expect to advise applicants of the outcome of their application within two weeks from the date that Zero Waste Scotland receives the application form. 10. Need more information? For further information call or Marion Croy Project Manager Deposit and Return Systems, Zero Waste Scotland marion.croy@zerowastescotland.org.uk Tel: DRS and RV Pilot Projects DEP 001 Page 5