Environment and Sustainable Development 5 Minute Fix 47: asbestos, renewable energy, sea bed mining, environmental penalties

The Clayton Utz team
20 Mar 2024
5 minutes

Waste

NSW: Government announces an Asbestos Taskforce with potential regulatory changes to follow

On 15 February 2024, the NSW Government announced an Asbestos Taskforce< geared at supporting the NSW Environment Protection Authority's investigation of asbestos in mulch, following detection of asbestos containing materials in public places including schools and parks.

It is understood that the Taskforce's role is to streamline agency coordination, prioritise high-risk sites for public safety, and ensure ample resources for site security and remediation as well as to aid the EPA in managing environmental risks on public land and support its criminal investigations into potential legal breaches.

According to the NSW Government, the number one priority is contact tracing down the complex supply chain, followed by sample testing, and reporting and management of any positive results.

The Asbestos Taskforce met for the first time on 16 February 2024, though there are no publicly available documents arising from that meeting at this point in time. It is understood that the NSW Government is considering regulatory changes to strengthen both penalties and deterrence.

Energy

Commonwealth: Guide to First Nations engagement on renewable energy projects

The Clean Energy Council has released its Leading Principles: First Nations and Renewable Energy Projects guide to engaging with First Nations Peoples on renewable energy projects.

The Guide identifies that the current challenges and barriers to effective engagement are:

  • low cultural awareness within industry;
  • identifying First Nations communities;
  • changes in project ownership;
  • engagement conducted for compliance;
  • legacy of extractive industry; and
  • capacity and capability of First Nations.

In a bid to overcome these challenges and barriers, the guide sets out the following key best practice principles, which were originally formulated by the First Nations Clean Energy Network, that should be applied for renewable energy project engagement:

  • engage respectfully;
  • prioritise clear, accessible and accurate information;
  • ensure cultural heritage is preserved and protected;
  • protect Country and environment;
  • be a good neighbour;
  • ensure economic benefits are shared;
  • provide social benefits for community;
  • embed land stewardship;
  • ensure cultural competency; and
  • implement, monitor and report back.

QLD: Proposed standalone hydrogen legislation

Following the passing of the Gas Supply and Other Legislation (Hydrogen Industry Development) Amendment Act 2023 on 10 October 2023, the Department of Energy and Climate released its consultation paper: An effective regulatory framework for Queensland's hydrogen industry with submissions closing on 1 March 2024. The Consultation Paper reflects the Queensland Government's commitment in the 2022 Queensland Energy and Jobs Plan to generate 70% of Queensland's energy through renewable energy by 2023 and 80% by 2035.

The Consultation Paper's scope is limited to renewable hydrogen and does not consider other types of hydrogen production involving fossil fuels and/or carbon capture elements (ie. blue hydrogen). The Consultation Paper considers the current and complex regulatory framework that applies to a renewable hydrogen project and proposes the following possible reforms:

  • amending the Planning Act to make the state the assessment manager for hydrogen production facilities, and creating a state-specific code to establish the assessment benchmarks;
  • the introduction of a hydrogen generation license (HGL) in a standalone Hydrogen Act, which would authorise a proponent to construct, install, operate, maintain and decommission a renewable hydrogen production facility;
  • the introduction of a hydrogen specific Renewable Energy Zone (REZ) legislative framework, which would allow the minister to declare the REZ and empower a delivery body to plan the connections and associated infrastructure for that area;
  • the facilitation of underground storage of hydrogen through either:
    • underground geological formations, which is currently regulated under the Petroleum and Gas (Production and Safety) Act 2004 (Qld) and Mineral Resources Act 1989 (Qld); or
    • underground reservoirs; or
    • a new hydrogen storage framework under the standalone Hydrogen Act.

Planning

NSW: Amendment to the Central-West Orana REZ Access Scheme

On 22 February 2024, the NSW Government published an updated Draft Central-West Orana REZ Access Scheme Declaration and Draft Guidelines for Access Scheme Declarations for public consultation.

The proposed amendments to the declaration aim to enable the Infrastructure Planner, under the Electricity Infrastructure Investment Act 2020 (EII Act), to grant or increase the initial allocation of access rights after conducting an application process (clause 7(1)(a)(ii)). These proposed changes align with the market information notice published by EnergyCo on January 22, 2024.

While there have been no other changes to the connection model, terms and conditions, or target transmission curtailment level of the Central-West Orana REZ access scheme, the revisions maintain the existing benefits to the local community, such as the allocation of a portion of access fees for community and employment purposes.

Additionally, the draft Guidelines for Access Scheme Declarations have been published to align with the reforms introduced by the Electricity Infrastructure Investment Act 2020 (EII Act), facilitating the Infrastructure Planner's ability to grant or increase an initial allocation of access rights after an application process.

This public exhibition provides stakeholders with the opportunity to provide feedback to help inform the final decision of the Minister for Energy regarding amendments to the Central-West Orana REZ Access Scheme Declaration and the Guidelines for Access Scheme Declarations. Public submissions are invited from Thursday 22 February 2024 to Wednesday 20 March 2024 here.

WA: Key reforms planned for the Western Australia's planning system

The WA Government has implemented major reforms to the state planning system, which came into effect on 1 March 2024. The changes arise from Planning and Development Amendment Act 2020, Planning and Development Amendment Act 2023 and the associated regulations and guides provided by the Western Australian Planning Commission (WAPC). The key changes include:

  • A permanent pathway will open for business for the assessment of significant development proposals.
  • A reformed Development Assessment Panel (DAP) system comprising three panels, full-time specialist members and changes to eligibility thresholds will take effect.

The significant development pathway is open to developments valued at $20 million or more with the Perth Metropolitan area or Peel region scheme, or the Swan Valley Planning Scheme. The pathway is also opened to those developments valued at $5 million or more in other parts of the State. The revised significant development pathway seeks to improve the temporary assessment pathway introduced during peak of the COVID-19 pandemic, imposing a 120-day timeframe for the assessment and determination of significant development approvals.

There will be a reduction of the number of DAP panels from five to three (Metro-inner, Metro-outer and Regional). The panels will be comprised of qualified and experienced professionals, on a full or part time, fixed term basis with no changes to current local council representation. The DAP system will become an opt-in pathway for any development proposals proposed over $2 million. The changes will seek to provide flexibility for proponents to choose the assessment pathway they believe is most appropriate for their project.

Future changes addressing the role and composition of the WAPC are set to come into effect on 1 July 2024.

Environmental protection

NSW: Prohibition on sea bed mining and exploration

Introduced on 7 February 2024, the Environmental Planning and Assessment Amendment (Sea Bed Mining and Exploration) Bill 2024 (NSW) proposes to amend the Environmental Planning and Assessment Act 1979 No. 203 (NSW) to prohibit the carrying out of sea bed petroleum and mineral exploration and recovery and related development. If passed, the Bill will implement the Offshore Exploration and Mining Policy that was introduced in February 2022 and will not apply to activities that may benefit the environment. This may include the recovery of sand for beach nourishment, or beach scraping undertaken to prevent erosion in coastal areas.

NSW: Hazardous Chemicals: New controls, offences and requirements

The Environmental Legislation Amendment (Hazardous Chemicals) Bill 2024 (NSW), which was introduced into the Legislative Council on 8 February 2024, proposes to implement national reforms to the management and control of certain chemicals in NSW.

According to the explanatory note, the Bill's initiatives include:

  • applying the Commonwealth register under the Industrial Chemicals Environmental Management (Register) Act 2021 of the Commonwealth to New South Wales (NSW IChEMS register);
  • enabling the Environment Protection Authority (the EPA) to publish chemical use notices to require information to be given to the EPA;
  • creating offences relating to compliance with the NSW IChEMS register and chemical use notices;
  • dealing with certain licences, applications, orders and offences in the Protection of the Environment Operations Act 1997 (NSW); and
  • making other consequential amendments.

NSW: 2023 Annual Air Quality Statement

On 14 February 2024, the NSW Government released the 2023 Annual Air Quality Statement. The Annual Air Quality Statement, a vital component of the 2021-2030 NSW Clean Air Strategy, compiles data from the NSW Air Quality Monitoring Network each year. In 2023, despite warmer and drier conditions, NSW maintained good air quality overall.

Key findings from the report indicate:

  • Marginal deterioration in air quality compared to 2022, which was the state's best year on record due to cooler, wetter weather resulting in fewer bushfires, hazard reduction burns, and windblown dust.
  • Four of NSW's 16 air quality regions consistently met national standards throughout 2023: Central Coast, Lake Macquarie, Lower Hunter, and Southern Tablelands.
  • Except for Newcastle Local, where sea salt raised PM10 levels at Stockton, air quality standards were met at least 96% of the time across all regions.
  • In 2023, there were 47 days across the 16 regions when at least one national standard was not met, compared to 19 days in 2022.
  • Particle pollution, mainly from hazard reduction burns, bushfires, wood heater emissions, and dust, remained the primary source of air pollution, with concentrations increasing by around 30% from 2022.
  • Sulphur dioxide levels exceeded national standards on two days at Muswellbrook station in the Upper Hunter region, and nitrogen dioxide annual standard was not met at Bradfield Highway roadside monitoring station in 2023. Ozone levels exceeded national standards on three days.
  • Despite experiencing a warmer and drier year compared to 2022, late spring rainfall helped moderate intensifying hot and dry conditions and likely contributed to maintaining air quality.
  • Rural areas saw fewer hours of dust on average, despite expanding drought conditions.

QLD: New environmental powers and penalties proposed

The Environmental Protection (Powers and Penalties) and Other Legislation Amendment Bill 2024 was introduced into the Queensland Parliament by the Honourable Leanne Linard, Minister for the Environment on 13 February 2024. The Bill was subsequently referred to the Health, Environment and Agriculture Committee for detailed consideration and report by 12 April 2024.

The Bill is aimed at bridging the regulatory gaps identified in the 2022 review of the Environmental Protection Act 1994 (EP Act) undertaken by retired Judge Richard Jones and Barrister Susan Hedge. The review found that the existing powers and penalties of the EP Act tend to be reactive in nature, rather than proactive. This Bill is the Government's response to the review, with most amendments giving effect to the recommendations from the review.

Key changes the Bill will introduce include (amongst other things):

Amendments

Effect

General environmental duty offence

It will be an offence when a failure to comply with the general environmental duty will likely cause serious or material environmental harm.

Environmental nuisance can be serious or material harm

Despite a matter having prescribed characteristics of environmental nuisance, it may constitute serious or material environmental harm.

Environmental enforcement orders (EEOs)

EEOs will replace environmental protection orders, direction notices and clean-up notices and can be issued to the holder of an environmental authority (EA), irrespective of whether the EA authorises, or purportedly authorises, the activity causing harm.

Environmental investigation

The administering authority may require a person to conduct or commission an environmental investigation about an activity or event causing harm, regardless of whether the activity is authorised by an EA.

Duty to restore the environment

Requires persons who permit or cause contamination that results in environmental harm to, as far a reasonably practicable, restore the environment to the condition it was in before the harm occurred.

Transitional environmental programs (TEPs)

The administering authority may initiate and decide amendments to TEPs having regard to any submission by the transitional environmental holder.

Notification of serious or material environmental harm

The duty of a person to notify to include where the person "ought reasonably to have become aware of the event" giving rise to the harm.

Special thanks to Nicole Besgrove (Brisbane) for co-ordinating the ESD 5 Minute Fix and to Vincent Collins and Maisie McFadyen (Sydney), Zac Bosnakis (Perth) and Jack Lofgren (Brisbane) for their contribution to this edition.

Disclaimer
Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.