With the shock retraction of permission from the Environmental Protection Authority for councils to create and sell agricultural compost from organic material in the red bins, the output from Alternative Waste Treatment plants has become expensive rubbish.

Based on a scientific report that councils have not yet seen, the EPA declared on October 25 that contaminants in the compost produced from mixed waste in the red bins rendered it unacceptable.

The backflip on processes and technology actively encouraged by the state government over many years has blindsided councils previously lauded for their waste diversion programs.

Although the EPA has agreed to pay all additional costs incurred by affected councils for the next 12 months, including handling and transportation costs, and have gazetted to remove the $80 per tonne landfill ‘levy’ from the red bin compost, the longer-term financial implications for councils like Bellingen Shire are substantial.

We are currently sending 2,144 tones of red bin waste through the Biomass Solutions plant, at a cost of $160 per tonne, as part of a contract that runs until 2027.

This equates to about $350,000 per annum and potentially $3.15 million over the next nine years –  money basically being spent to massage rubbish.

And as well as the waste of money, there’s the impact on our landfill capacity.

The tip at Raleigh was supposed to last until 2034, but that depended on maintaining our exemplary diversion rate of 78 per cent.

The amount of waste dumped at the Raleigh Waste Management Centre fell significantly after the three-bin system was introduced, from 8,166 tonnes per year of waste landfilled in 1998 to 1,398 tonnes by 2013.

Setting up a new site will involve not only huge costs much sooner than expected, but also an onerous assessment process.

At last night’s council meeting, general manager Liz Jeremy said the EPA’s offer to fund 12 month’s worth of short-term cost increases was “hardly adequate” in the face of the dramatic financial burden that may ensue.

Councillors approved a resolution to seek an urgent meeting with Minister for the Environment Gabrielle Upton “to discuss financial responsibility for the now redundant mixed waste processing cost of $160 per tonne (indexed) through to the conclusion of the mixed waste processing contract in 2027 as well as the loss of all value for the mixed waste compost” and to also advise the Member for Oxley, Melinda Pavey, of their concern “with the lack of notice provided by the EPA decision and the financial responsibility for this decision”.

Related: What a waste: backflip on red bin compost