COMMONWEALTH OF AUSTRALIA STATE OF VICTORIA

MEMORANDUM OF

UNDERSTANDING

Between:

the Commonwealth of Australia

(Commonwealth)

And

Victoria

Background

Context

  1. Under the Intergovernmental Agreement on the Environment 1992 (IGA) and Council of Australian Governments’ Heads of Agreement on Commonwealth and State Roles and Responsibilities for the Environment 1997, the Parties committed to working together across shared responsibilities to protect and conserve Australia’s environment.
  2. On 1 March 2012, the Victorian Government committed to reform of Victoria’s environmental impact assessment framework, pursuant to the 2011 Victorian Parliamentary Inquiry into the Environment Effects Statement Process in Victoria.Victoria intends to implement these reforms in 2014.
  3. Both the Commonwealth and Victoriaare committed to cooperative efforts to strengthen intergovernmental cooperation on the environment and to minimise costs to business while maintaining high environmental standards.

Purpose of this MOU

  1. The object of this MOU is to document an agreement for cooperation by the Commonwealth and Victoria,to reduce the regulatory burden on businesswhile maintaining strong and effective environmental outcomes. This will be achieved by streamlining and improving environmental regulation, particularly through the removal of unnecessary duplication in environmental assessment and approvals process.
  2. The parties will streamline regulation by pursuing: outcome-focused bilateral agreements to deliver a one-stop-shop for environmental assessments and approvals under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) and Victorian legislation, by accrediting Victorian assessment and approval processes as satisfying EBPC Act requirements; and a complementary agreed program for strategic assessments.
  3. This MoU is not a legal agreement. However, both Parties commit to using their best endeavours to achieve its purpose.

Objects of bilateral assessment and approval agreements

  1. The objects of the assessment and approvals agreements will be to:
  1. Ensure high standards are maintained for the protection of the environment and, in particular, matters of national environmental significance (NES);
  2. Promote the conservation and ecologically sustainable use of natural resources;
  3. Ensure an efficient, timely and effective process for environmental assessment and approval of actions; and
  4. Remove unnecessary duplicationin the environmental assessment and approvals processes of the Commonwealth and Victoria.

Roles

  1. Consistent with the provisionsof the MoU, and as ultimately agreed between the Parties, Victoria will be responsible for assessing the impacts of projects on matters of NES and for approving projects that would otherwise require approval under the EPBC Act, to reduce duplication between jurisdictions.
  2. Consistent with the objects of the MoU, the Commonwealth will take a more strategic, outcome-focussed,assurance approach to environmental protection when an approval bilateralagreement has been signed.
  3. The Commonwealth and Victoria will work together to identify opportunities to further improve environmental regulation, including administrative streamlining and the use of strategic assessments.

Provisions

1. Parties

1.1.1 The Parties to this MoU are the:

  1. Commonwealth of Australia represented by the Prime Minister and the Commonwealth Minister for the Environment(Commonwealth); and
  2. Victoriarepresented by the Premier and the VictorianMinister for Planning (Victoria).

2. Standards

2.1.1 In developing agreements to integrate Commonwealth and Victorian environmental assessment and approval processes, the Parties agree that maintaining or improving upon environmental standards will be the basis for development of agreements - ensuring strong and effective environmental outcomes and providing certainty for proponents.

2.1.2 In developing and implementing agreements as outlined in this MoU, the Parties agree to ensure that environmental standards are maintained. In particular:

  1. When applying accredited assessment and approvals processes, Victoria will not act inconsistently with relevant provisions under the EPBC Act and regulations, and will considerrelevant statutory guidelines, plans, policies and instruments made under the EPBC Act in its decision-making; and
  2. The Commonwealth will meaningfully consult with Victoria before amending or adopting statutory guidelines, plans, policies and instruments relating to accredited environmental assessment and approvals processes.

3. Consultation

3.1.1 The Parties acknowledge the importance of working with stakeholders and the communityto develop the new arrangements and to build confidence in the one stop shop agreements and maintenance of high environmental outcomes.

4. Accrediting Assessments

4.1.1 The Parties will use their best endeavours to conclude a revised assessment bilateral agreement within 6 months, to extend Victoria’s accreditation to undertake a single assessment process for both Commonwealth and Victorian purposes, noting that time frames may be dependent on the timing of Victoria’s proposed reforms to its environmental impact assessment processes.

4.1.2 The Parties agree the ultimate goal is to move towards 100 per cent use of a single accredited process, where Victoria undertakes comprehensive environmental assessments that meetCommonwealth standards.

4.1.3 When undertaking assessments as part of any accredited processes, Victoria will ensure that matters of NES are separately identified and assessed, in a manner that is not inconsistent with relevant provisions under the EPBC Act and regulations and will consider relevant statutory guidelines, plans, policies and instruments made under the EPBC Act.

4.1.4 The assessment bilateral agreement will include administrative procedures and arrangements to ensure that assessment of projects is undertaken as efficiently as possible, with a robust assurance framework, in order to minimise costs to both Parties and industry. These procedures and arrangements may include but not be limited to:

  1. For proponents:
  • Agreed information requirements;
  • Single assessment reports and proposed conditions; and
  • Single public consultation.
  1. For the Parties:
  • An agreed action plan for streamlining assessments;
  • Information exchange and data sharing within stipulated timeframes;
  • Exchange or placement of staff, as required;
  • Referral arrangements that include early consultation;
  • Identification of project contact officers and ongoing project liaison arrangements;
  • Commitment to assessment schedules for each project with clear timeframes and milestones;
  • Public notification responsibilities;
  • Monitoring compliance with conditions; and
  • Conflict resolution.

5. Accrediting Approvals

5.1.1 The Parties will pursue a comprehensive approvals bilateral agreement to accredit Victorian approval processes under the EPBC Act, and will use their best efforts to conclude the agreementby the end of2014.A priority will be having the approvals bilateral agreement for major projects ‘agreed in principle’ by the end of May 2014, if practicable, followed by the Commonwealth’s statutory consultation periods. These timeframes may be dependent on the timing of Victoria’s proposed reforms to its environmental impacts assessment processes.

5.1.2 The agreement will include a process of regular review.There will beacomprehensive review after 12months of the operation of the agreement and the outcomes achieved, and periodic review after that.

5.1.3 The agreement will include a process to ensure that when proponents first seek regulatory approval from either the Commonwealth or Victoria, there is certainty about whether the assessment or approval bilateral agreement will apply – particularly during the negotiation process.

5.1.4 Any accredited process will ensure that decision-making by Victoria will result in at least equivalent overall protection for matters of NES, and that Victorian decisionmakers will not act inconsistently with relevant provisions under the EPBC Act and regulations, and will consider relevant statutory guidelines, plans, policies and instruments made under the EPBC Act, in considering decisions under an accredited process.

5.1.5 Appropriate outcome-focussed assurance arrangements will be an important part of the approval bilateral agreement, noting that an objective of this MOU is to increase efficiency by reducing red tape.

5.1.6 In the interim, and in any circumstances where approval responsibility under the EPBC Act remains with the Commonwealth, the Parties commit to working to develop joint protocols to minimise the need for specific conditions to be applied by the Commonwealth over and above those applied by Victoria as part of its state approval process.

5.1.7 When an approval bilateral agreement is in place, the parties will agree an approach to managing the transition of projects under assessment at that time.

6. Additional administrative streamlining

6.1.1 To complement the objects of this agreement, Victoria will continue to streamline its assessment and approval processes while maintaining environmental standards. Victoria will engage the Commonwealth on these efforts and where appropriate report to the public on progress.

6.1.2 The following improvements will be pursued administratively by the Parties, until the relevant bilateral agreements are signed:

a.Both Parties will consult one another and take steps to improve the efficiency and effectiveness of their own environmental regulationto the greatest extent possible;

b.The Parties agree to provide greater up-front guidance to industry, and will work towards publishing standard information requirements and conditions for high priority sectors;

c.The Commonwealth agrees to use a single assessment report, where Victoria has undertaken a comprehensive environmental assessment. In addition, the Commonwealth agrees to use the proposed conditions provided by Victoria and, to the greatest extent possible, will avoid imposing additional conditions when making approval decisions under the EPBC Act;

d.For projects where further conditions are imposed by the Commonwealth, additional to those imposed by Victoria, the Parties agree to provide a single document that contains all the conditions of approval for that project imposed by both jurisdictions; and

e.The Parties agree to ensure that wherever conditions of approval are imposed, they are outcome-focused and proportionate to the level of risk.

6.1.3 The Parties agree to pursue active, coordinatedproject management for major projects while both Commonwealth and state assessment and approval responsibilities are involved.

7. Use of strategic assessments

7.1.1 The Parties agree to work towards the development of an agreed priority list for existing and future strategic assessments in Victoria in Quarter 1, 2014.

8. Future cooperation

8.1.1 Both Parties will each identify senior officials responsible for leading negotiations to progress the intention of this MoU.

8.1.2 Both parties will share relevant operational information, including with respect to information systems, to facilitate informed negotiations for accreditation of Victorian assessments and approvals.

8.1.3 To support any accredited arrangement, the Parties will identify agreed areas of cooperation:

  1. a detailed implementation plan that is negotiated and agreed by all Parties to be developed;
  2. exchanging data and joint analysis of environmental conditions and trends; and
  3. coordinating efforts to address adverse trends for matters of NES, for example by identifying options to improve the effectiveness of existing investment in environmental actions, land management and policy settings.

8.1.4 Under any agreement made, the Parties will ensure there are agreed arrangements for greater information sharing, consultation and dispute resolution, including through the use of governance arrangements that promote strong communication and cooperation.

Execution Page

EXECUTED as a Memorandum of Understanding

SIGNED for and on behalf of the

Commonwealth of Australia

as represented by

1

COMMONWEALTH OF AUSTRALIASTATE OF VICTORIA

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SIGNED for and on behalf of Victoria as represented by

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COMMONWEALTH OF AUSTRALIASTATE OF VICTORIA