ENVIRONMENTAL ASSESSMENT REPORT

ENVIRONMENTAL ASSESSMENT REPORT Biodiesel Processing Plant 32 The Avenue, New Norfolk Peter Johnson Earthmoving Pty Ltd Report and recommendations of the Environment Division Department of Environment, Parks, Heritage and the Arts to the Director, Environment Protection Authority August 2008

Applicant Proposal Environmental Assessment Report Peter Johnson Earthmoving Pty Ltd Biodiesel Processing Plant Location 32 The Avenue, New Norfolk, TAS, 7140 NELMS 7646 DA number DA 87/2007 File 110963 Document \\w2k3lndsfp\environment\eeo_enviro_ops\eas_assessments\eas _Projects\Peter Johnson biodiesel\assessment Report\Assessment Report Final Peter Johnson biodiesel plant.doc Assessment process milestones 28 April 2008 Permit application submitted to Council 30 April 2008 Application received by Board 18 June 2008 Environmental Effects Report submitted to Board 5 July 2008 Start of public consultation period 18 July 2008 End of public consultation period Acronyms Board Board of the Environment Protection Authority DEPHA Department of Environment, Parks, Heritage and the Arts Division Environment Division of the DEPHA EER Environmental Effects Report EIA Environmental impact assessment EMPC Act Environmental Management and Pollution Control Act 1994 EPA Environment Protection Authority EPBC Act Environment Protection and Biodiversity Conservation Act 1999 (Cth) LUPA Act Land Use Planning and Approvals Act 1993 SD Sustainable development TSP Act Threatened Species Protection Act 1995 Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Page i

Contents 1 APPROVALS PROCESS... 1 2 SD OBJECTIVES AND EIA PRINCIPLES... 1 3 THE PROPOSAL... 2 4 PUBLIC AND AGENCY CONSULTATION... 6 5 EVALUATION OF ISSUES... 6 6 CONCLUSIONS... 11 7 SUMMARY OF APPENDICES... 11 APPENDIX 1 - PROPOSED PERMIT CONDITIONS... 12 Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Page iii

1 Approvals process An application for a permit under the Land Use Planning and Approvals Act 1993 (LUPA Act) in relation to the proposal was submitted to Derwent Valley Council on 28 April 2008. The proposal is defined as a level 2 activity under Schedule 2 Subsection (1)(a)(i) of the Environmental Management and Pollution Control Act 1994 (EMPC Act), being manufacture (through chemical reaction) of an inorganic chemical. Section 25(1) of the EMPC Act required Council to refer the application to the Board of the Environment Protection Authority (the Board) for assessment under the Act. The application was received by the Board on 30 April 2008. The assessment has been undertaken by the Director, Environment Protection Authority under delegation from the Board. The Director required that additional information to support the application be provided in the form of an Environmental Effects Report (EER). The EER was received by the Director on 18 June 2008. The permit application and EER were released for public inspection for a 14-day period commencing on 5 July 2008. An advertisement was placed in The Mercury newspaper. The EER was also referred to relevant government agencies for comment. No public representations were received. 2 SD objectives and EIA principles The proposal must be considered by the Director, under delegation from the Board, in the context of the sustainable development objectives of the Resource Management and Planning System of Tasmania (RMPS), and in the context of the objectives of the Environmental Management and Pollution Control System (EMPCS) established by the EMPC Act. The functions of the Board are to administer and enforce the provisions of the Act, and in particular to use its best endeavours to protect the environment of Tasmania, and to further the RMPS and EMPCS objectives. The Director, under delegation from the Board, must undertake the assessment of the proposal in accordance with the Environmental Impact Assessment Principles defined in Section 74 of the EMPC Act. Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Page 1

3 The proposal Peter Johnson Earthmoving Pty Ltd proposes to install and operate a biodiesel processing plant at 32 The Avenue, New Norfolk, Tasmania 7140. The property is located within a light industrial area, with some private residences located nearby. Figure 1 shows the general location of the property. The applicant proposes to install a pre-constructed biodiesel processing plant which is constructed on a transportable frame and located fully within a converted shipping container. The biodiesel is processed in the plant by mixing used cooking oil with methanol and potassium hydroxide, and heating the mixture to 50 degrees Celsius for approximately 1.5 hours. This process produces two products biodiesel and glycerol. Both products are drained into 205 litre drums and once cooled, are ready for transport to market. Figure 2 shows a proposed plan of the site. The maximum annual production of biodiesel is estimated to be 3,600 x 205 litre drums (total 738,000 litres; estimated to be approximately 738 tonnes of product produced). The main characteristics of the proposal are summarised in Table 1. A detailed description of the proposal is provided in the Environmental Effects Report. Table 1. Summary of key proposal characteristics Characteristic Description/quantities Activity description Installation and operation of a biodiesel processing plant, to produce up to 738 tonnes of product per annum. Location 32 The Avenue, New Norfolk, Tasmania 7140. Land zoning The property is zoned Special Development under the New Norfolk Planning Scheme 1993. Planning approval was granted by Derwent Valley Council in August 2007 for use and development of the site for the purposes of Limited Impact Industry Salvage Premises and Equipment Sales and Hire Premises. The current application is for an amendment to the existing planning permit DA 87/2007. Land tenure The property is privately owned by Peter Johnson Earthmoving Pty Ltd (certificate of title 139660/1). Site overview The property is located at 32 The Avenue, within the township of New Norfolk, on the corner of The Avenue and Ring Road. The property is the site of the former Boiler House which served the Royal Derwent Hospital. The Boiler House was decommissioned more than a decade ago at the time of site closure, and remained vacant until purchased by the current owner in 2007. There is no known soil or ground contamination of the site. A notice has been issued by Workplace Standards in relation to decontamination of asbestos at the site. The property is currently used for delivery, processing (by cold filtering) and temporary storage of cooking oil (canola) and cardboard recycling. Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Page 2

Surrounding area overview Major equipment Other infrastructure Inputs Water Energy Other raw materials Wastes Liquid Atmospheric Solid Noise Operating hours Project timetable The property is located within an area of light industry (including the Lachlan Park Enterprise Park, Mountain Engineering, mechanical workshop and tyre company, antique retailer, self storage, and earthmoving equipment hire). Private residences are located across The Avenue, at a distance of approximately 50 to 75 metres from the property. Adjacent properties are privately owned. The Lachlan River is approximately 200 metres from the site. The biodiesel processing plant is an Ageratec Biodiesel Processor and is to be located within the existing building on site. No construction is required as the plant is pre-fabricated and housed within a shipping container. Equipment for loading and unloading drums on transport vehicles. Nil. No water is required in the process. The biodiesel processing plant is powered by three phase electric power. Used cooking oil (canola) is the main raw input to the plant. Methanol is required in the biodiesel manufacture process. A maximum of 8 x 200 litre drums of methanol will be stored on site at a time. Potassium hydroxide is also required in the biodiesel manufacture process. A maximum of 12 x 25 litre bags will be stored on site at a time. In addition to the biodiesel, glycerol is the only by-product of the process and is decanted into 205 litre drums as is the biodiesel product. The glycerol is to be shipped interstate for further processing. The biodiesel processing plant is a sealed unit and there are no atmospheric emissions from the operation of this plant. There are no solid wastes produced from the operation of this plant. Other solid wastes generated on site may include empty containers and other general waste. The plant has low noise emissions with no noise emissions expected to extend beyond the property s boundaries. The plant is housed within a shipping container in an existing building which will provide noise attenuation. Proposed operating hours are the same as under the existing planning permit: 0800 to 1630 hours Monday to Friday. The biodiesel processing plant would be installed and operational within four weeks of project approval. Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Page 3

Figure 1. Location map, 32 The Avenue, New Norfolk (corner of Ring Road) (adapted from Attachment 7, Environmental Effects Report) Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Page 4

Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Page 5 Figure 2. Site plan (Attachment 2, Environmental Effects Report)

4 Public and agency consultation The development application and Environmental Effects Report were made publicly available for a 14 day period following advertising in The Mercury newspaper on Saturday, 5 July 2008. No public representations were received. The development application was referred to the Department of Health and Human Services (Population Health). No public health concerns were raised by the Department in regards to the proposal. 5 Evaluation of issues The environmental issues considered relevant to the proposal have been evaluated in Table 2 below. A summary of proposed permit conditions is provided in Appendix 1. Table 2. Assessment of environmental issues Issue Hazardous substances Description of potential impacts The proposed activity will involve the storage and use of used cooking oil (canola), methanol, and potassium hydroxide. Biodiesel and glycerol are the products of the process and will also be stored and handled on site. The used cooking oil and biodiesel are biodegradable and with the glycerol are not considered to be hazardous materials. Methanol is flammable and potassium hydroxide is corrosive. Accidental spillage or release of these substances may contaminate soils, groundwater, and/or waterways. Management measures proposed in EER The following commitments are made in Part D of the EER: o The biodiesel processor will be contained in a bunded area with the capacity to contain 110% of the volume of oil of the processor. o Working areas will be bunded. o Oil and biodiesel transfer operations will occur in bunded areas to ensure any spills are contained. o No discharge of liquids to sewer or stormwater. o Use of portable bunded stands for storage of oil and biodiesel to ensure all spills are contained. o Provision of oil spill kits in working areas. o Storage and handling of methanol and potassium hydroxide in accordance with manufacturer s recommendations and material safety data sheet. o Maintenance and operation of biodiesel processor in accordance with manufacturer s specifications. o Staff training on maintenance and operation of biodiesel processor in accordance Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Page 6

with manufacturer s specifications. o Development of emergency response procedures in event of a biodiesel processor malfunction and/or oil or bio-diesel spill. A maximum of 8 x 200 litre drums of methanol will be stored on site at a time. A maximum of 12 x 25 litre bags of potassium hydroxide will be stored on site at a time. Public and agency comment Nil. Evaluation The site is located at a sufficient distance from the nearest waterway (Lachlan River 200 metres) to ensure a minimal risk of any uncontained spill reaching the waterway. No water is used in the process and no discharge of liquids occurs as the biodiesel processing plant is self-contained with no connection to plumbing required. The two products created by the process, biodiesel and glycerol, are drained directly into drums ready for transport. The commitments made by the applicant in the EER in relation to bunding and appropriate containment of areas of use and storage of these materials, combined with proposed permit conditions, are considered appropriate to manage the potential risk of soil, and surface and groundwater contamination. Recommendation It is recommended that the applicant be required to comply with the commitments listed above (also listed in Attachment 2 of the permit conditions). It is also recommended that the applicant be required to comply with standard permit conditions H1 (Storage and handling of hazardous materials), H2 (Hazardous materials < 250 L), H3 (Spill kits) and H4 (Inventory of hazardous materials). Issue Noise Description of potential impacts Noise created by transport of materials to and from site, and by operation of the biodiesel processing plant, may result in nuisance for nearby residents. Management measures proposed in EER The biodiesel processing plant has low noise emissions and is contained within a shipping container, which will be located within the existing building on site. No noise emissions are expected beyond the boundary of the property. Drums containing biodiesel and glycerol products will be transported on a 3 tonne truck with an estimated number of truck movements of 2 per day. No increase to existing operating hours for the site has been requested by the applicant. Public and agency comment Nil. Evaluation The nearest residences are located approximately 50 metres from the building in which the biodiesel processing plant is to be located. Noise was raised by neighbours as a potential concern during the application for the existing planning permit, however, no representations were received during the advertising of this particular Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Page 7

application, and no complaints have been received by Council in relation to the property. The location of the biodiesel processing plant within a shipping container and within an existing building, are considered to provide adequate noise attenuation. The biodiesel processing plant is powered by three-phase power so no noise is expected to occur from generation of electricity to power the plant. The operating hours requested by the proponent are the same as in the existing planning permit (0800 to 1630 hours, Monday to Friday). Operation within these hours (including deliveries and truck movements) is considered acceptable. Recommendation It is recommended that the applicant be required to comply with permit condition N1 (Hours of operation). Issue Air emissions Description of potential impacts Dust and odours may create nuisance for nearby residents. Management measures proposed in EER The biodiesel processing plant is a sealed unit which emits no odour, dust or particulates to the air. Public and agency comment Nil. Evaluation Based on information provided in the EER, it is considered unlikely that the biodiesel processing plant will produce odours or air pollutants sufficient to create environmental harm or nuisance. Recommendation Nil. Issue Waste management Description of potential impacts By-products of the biodiesel production process may create wastes that are inappropriate for storage on site or disposal to sewer or landfill and may contaminate soils, groundwater, and/or waterways. Management measures proposed in EER The biodiesel processing plant produces only two products, biodiesel and glycerol. No solid waste or waste water is created by the process. Public and agency comment Nil. Evaluation Based on information provided in the EER, it is considered unlikely that the biodiesel processing plant will produce solid or liquid wastes that may contaminate soils, groundwater, and/or waterways. Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Page 8

Management of other waste generated on site (such as empty containers, and other general waste) is not covered in the EER. This may be adequately managed through use of the standard permit condition relating to waste management (WM1 Waste management hierarchy). Recommendation It is recommended that the applicant be required to comply with the standard permit condition WM1 (Waste management hierarchy). Issue Previous site contamination Description of potential impacts The site is part of the decommissioned Royal Derwent Hospital complex. Asbestos has been identified on the site and may have negative health impacts if disturbed. Management measures proposed in EER There is no known soil and ground contamination present on the site. Asbestos is known to be present within the former Boiler House building and Workplace Standards Tasmania issued a notice on 2 May 2008 pursuant to s38 of the Workplace Health and Safety Act 1995 requiring decontamination of asbestos at the site. Work is currently being undertaken to comply with the notice. Public and agency comment Nil. Evaluation The management measures being carried out are considered adequate to remove the asbestos risk, providing the material is wrapped and disposed of at a facility approved to accept the waste. Recommendation Nil. Issue Cultural heritage Description of potential impacts Installation and operation of the biodiesel processing plant may disturb sites of cultural heritage importance. Management measures proposed in EER The site is not on or near a place listed on the Tasmanian Aboriginal Site Index, Tasmanian Heritage Register, or Tasmanian Historic Places Inventory. The Royal Derwent Hospital Complex, listed on the Tasmania Heritage Register, the Willow Court Asylum Precinct and the Willow Court Barracks Building both listed on the Register of the National Estate, are all located within one kilometre of the site. The site itself is the former Boiler House serving the decommissioned Royal Derwent Hospital. A heritage assessment has been undertaken (provided in Attachment 5 of the EER) which concluded that the Boiler House is of low heritage significance. Public and agency comment Nil. Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Page 9

Evaluation The evaluation provided by the applicant in the EER is considered adequate. The biodiesel processing plant is pre-fabricated and no construction works are required on site. Recommendation Nil. Issue Decommissioning and site rehabilitation Description of potential impacts Inappropriate decommissioning procedures at the end of the biodiesel processing plant s life may contribute to future degradation of the site. Management measures proposed in EER According to the EER the proposal involves no activity that will require future rehabilitation. Public and agency comment Nil. Evaluation Appropriate ongoing machinery and site maintenance, combined with use of standard permit conditions relating to operation of plant, and decommissioning and rehabilitation, are considered adequate for this site. Recommendation It is recommended that the applicant be required to comply with standard permit conditions DC1 (Notification of cessation), DC2 (DRP requirements) and DC3 (Rehabilitation following cessation), and OP1 (Plant and equipment). Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Page 10

6 Conclusions The Division is of the view that: (i) (ii) (iii) the RMPS and EMPCS objectives have been duly and properly pursued in the assessment of the proposal; and the assessment of the proposal has been undertaken in accordance with the Environmental Impact Assessment Principles; and the recommendations set out in this report accord with the Board s responsibilities in relation to these objectives and principles. This assessment has been based upon the information provided by the applicant in the permit application and EER. It is concluded that the proposal is capable of being managed in an environmentally acceptable manner such that it is unlikely that the RMPS and EMPCS objectives would be compromised, provided that the recommendations made in this report are satisfactorily implemented, including the commitments made by the applicant in the EER. 7 Summary of Appendices Appendix 1 Proposed permit conditions Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Page 11

Appendix 1 - Proposed permit conditions Summary of proposed conditions The following conditions are recommended. Q1 Maximum quantities regulatory limits Non standard G1 Compliance with EMP and BPEM Standard G2 Access to and awareness of conditions Standard G3 Incident response Standard G4 No changes without approval Standard G5 Change of responsibility Standard G6 Change of ownership Standard G7 Commitments Non standard A1 Odorous gases Standard DC1 Notification of cessation Standard DC2 DRP requirements Standard DC3 Rehabilitation following cessation Standard H1 Storage and handling of hazardous materials Standard H2 Hazardous materials (< 250 litres) Standard H3 Spill kits Standard H4 Inventory of hazardous materials Standard N1 Hours of operation Non standard OP1 Plant and equipment Standard WM1 Waste management hierarchy Standard Environmental Assessment Report Biodiesel Plant, Peter Johnson Earthmoving Pty Ltd Appendix 1