EPA Victoria
Concise Annual Report 2010
Transforming into a modern regulator.
Protecting, caring for and improving our environment since 1971
Inside this report
1 About EPA Victoria
2 Chairman and Chief
Executive Officer’s
report
3New governance structure
• Environment Protection
Board
• Audit Committee
4Organisational structure
6EPA’s transformation
to a modern regulator
• Transforming the way
we work
• Ombudsman’s report
into methane gas leaks
• Victorian Auditor General’s
report into hazardous
waste management
• Meeting community
aspirations
• Strengthening compliance
and enforcement
8Our Performance
• Major prosecutions
• Meeting our commitments
About EPA Victoria
EPA Victoria will be an
effective and modern
regulator that drives
emission impact reduction
and resource efficiency for
the benefit of the Victorian
community
Our vision
Our mandate:
The Victorian community living sustainably
To implement the legislation that allows us
to:
Our purpose
To protect, care for and improve the
environment
Our values
Respect, integrity, collaboration, innovation
Aspirations
“The aspirations of the people of Victoria
for environmental quality should drive
environmental improvement”
Environmental Protection Act 1970 s.1L
• Establish environmental standards and
assess against them
• Regulate against these standards
• Work with organisations to meet the
standards and go beyond
EPA Victoria was established as an
independent statutory authority under the
Environment Protection Act 1970.
The Act defines EPA’s powers, duties and
functions, and provides a framework for the
prevention and control of air, land and water
pollution and industrial noise.
During the reporting period, the Minister for
the Environment and Climate Change, the
Hon. Gavin Jennings, MLC, was the minister
responsible for EPA Victoria.
.
2009/10 is a transition year for EPA. We are in the
process of mapping out how we will become a modern
regulator and how we will implement our vision for the
Victorian community. When this process is complete,
we will be a strengthened regulator that is transparent,
accountable, responsive and decisive.
EPA Annual Report 2010
1
Chairman and
Chief Executive Officer’s report
Transforming to a modern regulator
We are pleased to present our first
annual report as Chairman and
CEO of EPA Victoria. In fact, it is
the first time EPA has had both a
Chairman and CEO operating in
separate roles. This more robust
and strengthened governance
arrangement marks an exciting new
era for EPA and we are very pleased
to be working together to lead EPA
into the next phase of its operation.
Year of Transition
In our short time at the helm of EPA we have
had the privilege of working with a talented
and highly skilled team: a team who are
working with us to map out a new strategic
direction to transform EPA into a modern
regulator. We would like to acknowledge Mick
Bourke, former Chairman and CEO of EPA,
who laid the foundation and framework for
this transformation. This process is well under
way as we focus on our core mandate and
renew our work with business and community
to ensure the environment is protected.
The global community, including the Victorian
community, is facing urgent and escalating
environmental challenges. These challenges
are rapidly increasing, as are the expectations
upon us to meet them. For nearly 40 years
EPA has been protecting and caring for our
environment. However, in recent years it
has become evident that we must transform
the way we work in order to better deliver
outcomes for the environment, business
and the community. We are committed to
transforming into a transparent, accountable,
responsive and decisive organisation in order
to deliver this reform and our vision of a
modern regulator.
As we work with management, employees
and stakeholders to address Victoria’s
environmental challenges and deliver on our
legislative mandate, 2009–10 has been a
transition year.
Transformation
into a modern
regulator
We will deliver our vision of ‘modern
regulation’ by focusing on improving
environmental outcomes and undertaking
targeted analysis to ensure we are addressing
the greatest risks to the environment. We will
encourage the community to measure us on
our environmental performance and, if we
get it wrong, we expect to be challenged.
We believe this will make a difference to the
way we protect the environment for future
generations.
In addition we are reforming our regulatory
systems and processes and reviewing and
reforming our compliance and enforcement
functions, all of which will see a reinvigorated
EPA emerge. As we focus on this core work,
our partnerships with our sister organisations
within the Government’s environmental
portfolio – the Department of Sustainability
and Environment and Sustainability Victoria
– become even more important and we
will be working closely with them to ensure
we are delivering strong outcomes for the
environment.
Two important reports that have recently
been released further highlight the need for
change. Firstly the Ombudsman’s report,
Brookland Green Estate – Investigation
into methane gas leaks, and secondly the
Victorian Auditor-General’s Office (VAGO)
report, Hazardous Waste Management.
Both have provided important findings and
recommendations that will improve the way
we operate. In this annual report we will
address our response to both these reports
in detail and illustrate how they have helped
us drive change across the organisation. We
will also highlight our key outcomes for the
year that ensure the environment continues
to be protected.
Meeting community
aspirations
A key pillar of our transformation is a
renewed focus on our relationship with
the community. The Victorian community
demands high environmental standards
and expects companies and individuals to
behave responsibly. We have met with a
number of community groups and have been
impressed by their significant knowledge
of our work. It is our role to ensure the
community in which we operate has trust
in our organisation and that we meet their
aspirations. Over the coming 12 months we
intend to engage many of our stakeholders
to ensure we are indeed on track to meeting
their aspirations.
Sustainable future
Very fittingly, at the same time as we are on
a journey to transform our organisation, we
have also transformed our surrounds. In May
2010 the Minister for the Environment and
Climate Change, Gavin Jennings, opened
our new head office at 200 Victoria Street,
Carlton. It is the redevelopment of a preloved building into one of Melbourne’s most
sustainable commercial office buildings. It is
one of the first commercial retrofit buildings
in Australia aiming to have a 6 Star Green
Star rating in office design, as built and
office interiors. It delivers on our vision of the
Victorian community living sustainably and
shows leadership in creating a sustainable
workspace that is also economically viable.
We are excited and committed to lead EPA
into the next phase of its operation. We would
like to thank EPA staff, who work tirelessly
to ensure our environment is protected.
Together with our management and staff,
we will work hard over the next 12 months
to deliver a strengthened regulator that is
transparent, accountable, responsive and
decisive – our vision of a modern regulator.
Cheryl Batagol
Chairman
John Merritt
Chief Executive Officer
Deputy Chairman
2 EPA Annual Report 2010
New governance structure
For the first time in EPA’s 40-year
history the roles of Chairman and
CEO have been split, in order
to strengthen the governance
arrangements of EPA. Both the
Chairman and the CEO advise
the Minister, represent EPA to the
Government more broadly, liaise
with stakeholders and the media,
and are responsible for building
relationships with our clients and the
community.
Ms Cheryl Batagol
Chairman
Cheryl Batagol commenced as Chairman
of EPA in September 2009. The role of
the Chairman is to set the standards and
the strategic direction for EPA, liaise with
stakeholders and monitor the organisation’s
performance. Cheryl provides counsel
on contentious statutory decisions and is
responsible for oversight on matters such
as EPA’s governance and risk management
arrangements, compliance with statutory
requirements and delegated statutory
decision-making. All statutory decisions have
been delegated to the CEO.
Environment
Protection Board
The Environment Protection Board comprises
three members – a president and two
members appointed by the Governor-inCouncil on the recommendation of the
Minister.
The board is responsible for providing advice
to the Minister and the Chairman of EPA on
administration, corporate planning, strategic
direction and policies, and on national
and international trends in environment
protection.
It was established under section 8 of the
Environment Protection Act 1970 and
oversights the administration and policies of
EPA, and has an advisory role only.
Members are independent, non-executive
directors, appointed on a part-time basis
for up to three years and are eligible for
reappointment.
During the reporting period, the board
members were Mr Bob Welsh (president),
Mr Mike Waller and Ms Diane James.
The terms of the previous board members
expired on 12 May 2009; the new board was
appointed on 18 August 2009. Three board
meetings were held between the directors’
appointment and 30 June 2010.
Mr Bob Welsh, Ms Diane James and Mr Mike
Waller all attended three meetings. They
were remunerated in accordance with the
Victorian Government’s guidelines for the
appointment and remuneration of part-time,
non-executive directors of statutory bodies
and advisory committees. The president
received $11,000 and the members $8800
each.
Environment Protection Board
president
Mr Bob Welsh has served as Environment
Protection Board president since his
appointment to the board in May 2006.
Bob is the chief executive of VicSuper
Pty Ltd, the inaugural chairperson of
Sustainability Victoria, the founding
chairperson of the Investor Group on Climate
Change, Australia/New Zealand and director
of Ecotrust Australia. He is a member of
the Premier’s Climate Change Reference
Group and Woolworths Limited Corporate
Responsibility Panel. Bob also serves as
director of VicSuper Ecosystem Services Pty
Ltd, which is a subsidiary of VicSuper. He
has a bachelor of economics and a diploma
in financial planning. He is also a chartered
accountant.
Environment Protection Board
members
Mr Mike Waller was appointed to the board
in August 2009.
Mike is a director and co-founder of Heuris
Partners Ltd, a consultancy specialising in the
minerals and energy sectors. He is the chair
of Sustainability Victoria and a member of
Board of Australia 21. Mike has been director
of public policy, chief economist and head of
environment and community relations policy
with BHP Billiton. Before joining BHP, Mike
held senior positions in both the UK Treasury
and a number of Australian government
departments, including head of the
microeconomic division of Prime Minister and
Cabinet and deputy head of the Department
of Transport. Mike holds an honours degree
in economics from the University of Reading
and has undertaken senior executive training
at the London Business School.
Ms Diane James was also appointed to the
board in August 2009. Currently Diane is a
director of Barwon Water and is a former
chair of judges for the Banksia Environmental
Awards. Over the past 20 years she has
chaired a number of state and federal bodies
involved in coastal and oceans management,
including the Victorian Coastal Council,
which she chaired for 11 years. In the private
sector Diane runs a marketing, distribution
and export company. She was deputy chair
of the 2009 Australian Masters Games and
is a director of St Laurence Community
Services. Diane is currently studying for
a graduate certificate in innovation and
entrepreneurship.
EPA Audit Committee
The Audit Committee (‘the Committee’) is an
independent committee established under
section 13 of the Environment Protection Act
1970 and its operation is consistent with the
provisions of the Financial Management Act
1994 and the associated Directions of the
Minister for Finance under that Act.
The primary objective of the Audit
Committee is to assist EPA in maintaining
good governance, including the conduct
of its responsibilities for financial reporting,
management of risk, maintaining a reliable
system of internal controls, and monitoring
organisational performance.
The Committee comprises three
independent members and an internal
appointee and reports to EPA’s Chairman.
In 2009–10 the independent members
were the chair, Mr Hugh Parkes, Ms Barbara
McLure, and Ms Megan Boston.
EPA’s solicitor, Mr Mark Payton, was the
organisation’s internal member. Seven
committee meetings were held between 1
July 2009 and 30 June 2010.
EPA Annual Report 2010
3
Organisational structure
Environment Protection
Board (Advisory)
Chairman
Cheryl Batagol
Chief Executive Officer
Deputy Chairman
John Merritt
Legal services
Office of Chairman and CEO
Client Services
Matt Vincent
4 EPA Annual Report 2010
Environmental
Services
Bruce Dawson
Business
Development
Jason Borg
Future Focus
Stuart McConnell
Corporate Resources
Katrina McKenzie
Our Culture:
Confident people working
together for the future
During 2009–10, EPA’s executive
management team comprised
five directors. All directors occupy
executive contract positions.
The past 12 months have seen a lot of
changes in our executive team. We would
like to again thank Mick Bourke (CEO
2002–September 2009), Bruce Dawson
(1986–2010), Terry A’Hearn (1993–2010),
John Williamson (2000–2010) and Wayne
Robins (2003–2010) for their many years of
dedicated service.
Mr John Merritt
Mr Bruce Dawson
CEO
Director Environmental Services
In February 2010 John Merritt was welcomed
to EPA as the new Chief Executive Officer.
The role of our CEO is to manage the dayto-day business operation of EPA, providing
leadership and strategic management. Our
CEO makes statutory delegated decisions,
manages risk, makes financial and resourcing
decisions and advises the Chairman on
significant management issues.
Environmental Services Directorate is
responsible for delivering many of EPA’s
established services. The directorate
delivers licensing, approvals, pollution
response and investigation, compliance,
enforcement, monitoring, partnership and
audit program services. The objective of the
directorate is to deliver high-quality services
in a timely way, leading to improvements in
environmental quality.
Ms Katrina McKenzie
Director Corporate Resources
The Corporate Resources Directorate
partners with the business to enable
delivery of EPA objectives. The directorate
provides support and advice to shape and
drive organisational efficiency, strategy and
change. Service areas support enterprisewide governance and include finance, risk,
technology, business systems and reform,
people and culture and organisational
transition.
Mr Matt Vincent
Director Client Services
Client Services is responsible for industry
compliance and pollution response to
southern metropolitan Melbourne and
regional Victoria. The directorate also
provides a single point of contact for all
licensed industry across Victoria and coordinates EPA’s response to major Victorian
infrastructure projects.
Mr Jason Borg
Director Business Development
The Business Development Directorate
is responsible for achieving greater
environmental outcomes through the
improvement of EPA’s services and the
development of new services. It collaborates
with the Victorian community to understand
their aspirations for the Victorian environment
and works with Victorian business to drive
higher environmental standards through work
that goes beyond compliance. In addition the
directorate communicates to all stakeholders
about EPA programs and the Victorian
environment and works with the government
to ensure legislation remains relevant for
driving improved environmental outcomes.
Mr Stuart McConnell
Director Future Focus
The Future Focus Directorate sets the
environmental standards, develops strategic
interventions to protect the environment
and gathers and shares the knowledge
EPA needs to meet its future challenges.
Strategic business planning and performance
management systems help to ensure
alignment with EPA’s priorities. Through
environmental assessment programs we
assess our performance against EPA’s
objectives, assess progress against the
environmental standards and inform the
development of strategic interventions.
EPA Annual Report 2010
5
EPA’s transformation to a modern regulator
Transforming the way we work
We will be confident
people who work together,
using the right mix of
regulatory and beyondcompliance tools, to deliver
the best environmental
outcomes
We are changing the way we work.
EPA is driving transformation across
the organisation in order to better
achieve our objectives and deliver
our mandate. Our aim is to be a
modern, transparent and energetic
regulator.
The nature of regulation has to keep pace
with changes in the economy and society.
This transformation will ensure we have the
people, ability, skills and processes in place to
protect the Victorian environment for future
generations.
We started our transformation with an internal
restructure in 2008, and recognition that our
organisation needed to change. However,
organisations do not change – people do.
Therefore, one of the most important aspects
of our transformation is a shift in our culture
– a shift that will ensure our leadership and
6 EPA Annual Report 2010
employees are motivated and supported to
deliver responsive, decisive and transparent
services to our stakeholders.
A recent internal study revealed a significant
difference between the actual culture and
where we preferred to be as an organisation.
Using these results as a starting point, we
began a program of engaging with the
executive, directorate management teams,
the leadership team and staff to establish
our preferred culture statement and guiding
behaviours. This was followed by introduction
workshops for every unit, which the majority
of staff attended.
The need to move to our preferred
culture was particularly highlighted by the
Ombudsman’s report. It identified issues
within our culture that contributed to poor
outcomes in the community.
We won’t know we have been successful
in changing our culture unless we measure
the effectiveness of the implementation
initiatives. We have done this by undertaking
a number of activities to track the change in
our culture.
To specifically address the issues identified in
the Ombudsman’s report, Brookland Greens
Estate – Investigation into methane gas leaks,
we ran ‘Speak Up’ workshops, which all staff
participated in. During these sessions we
plotted the entire series of events, over an
18-year period, from the inception of the
landfill in the early 1990s to the emergency
management arrangements, due to methane
gas leaks, in 2008. We have taken a very
critical look at our organisation and culture.
We intend to learn why and where we failed,
and to improve.
This year has also seen our leadership given
more support and training to ensure they
are operating at the right level to live the
preferred culture and to drive accountable
performance with an engaged workforce. This
has resulted in our managers participating
in a Leadership Development Program. In
addition, transformation and culture key
performance indicators have been developed
and deployed. This means our senior
managers will be judged and recognised
by their ability to live and breathe the new
culture.
Not only does an effective and healthy culture
contribute to a positive working experience
for everyone and make EPA a rewarding
place to work, it also ensures that we
improve the way we work and that we deliver
better outcomes for the environment and
community.
EPA’s transformation to a modern regulator
Ombudsman’s report into methane gas leaks
In October 2009 the Victorian
Ombudsman released his report,
Brookland Greens Estate –
Investigation into methane gas leaks.
The report investigated problems
at the Brookland Greens housing
estate in Cranbourne. Methane, a
component of landfill gas, was leaking
from the site of the closed Stevensons
Road landfill adjacent to the estate
and had been detected at dangerous
levels in a number of locations,
including homes in the estate.
It is an important report for EPA, and one that
we take extremely seriously. It has provided us
with independent review and an opportunity
to improve the way we operate. We
acknowledge that serious deficiencies in our
internal processes resulted in poor outcomes
for both the environment and the community.
We have used this report to further drive
change across the organisation.
EPA has heard the frustration of residents and
recognises the importance of learning the
lessons from this major incident. EPA has got
the message and is changing the way it works.
We are focusing on getting
the basics right, reforming
our services and systems
and engaging with our
community so we can
understand and meet
their aspirations for the
environment
EPA has accepted all thirty seven of the
Ombudsman’s recommendations that relate
to EPA operations. Fifteen recommendations
are implemented and complete. Nineteen
recommendations are being implemented
through current reform projects. Three
recommendations are being addressed
through a whole-of-Government approach.
Table 1 summarises the broad issues raised
by the Ombudsman and the reforms being
undertaken by EPA in response. Table 1: Reforms undertaken in response to the Ombudsman’s recommendations
Issues raised by Ombudsman
Reforms undertaken
EPA’s statutory decision-making processes, including process and
consistency issues relating to works approvals, licences and licence
amendments.
EPA has centralised statutory decision-making and strengthened governance arrangements
relating to works approval decisions, including a peer review process, new works approval
guidelines and updated delegations.
EPA’s licence reform project is reviewing and reissuing all EPA licences with standardised
conditions, which are more readily enforceable. All licences will be reviewed and reissued
by 31 December 2010. To date, 75 per cent of licences have been reissued. EPA has introduced Annual Performance Statements, requiring licensed sites to report on
their environmental performance and have the statement signed off by the most senior
officer of the organisation.
Weaknesses in EPA’s record keeping and file management systems.
EPA is undertaking a Business System Reform program and will be implementing a client
information management system that will meet this recommendation. EPA has short-listed
potential vendors and will roll out the program throughout 2010–11.
EPA policies regarding the design and management of landfills,
particularly as they relate to buffers and the risks associated with
landfill gas migration.
EPA’s review of the Best Practice Environmental Management - Siting, Design,Operation
and Rehabilitation of Landfills identified a number of areas that required strengthening, or
updating due to changes in technology. These included landfill gas management, buffer
distances, enhanced degradation landfill, alternative capping and liner technologies. Public
consultation on the draft document has now closed and the final document is due for
release in September 2010. EPA’s approach to compliance and enforcement, including issues
regarding the appropriateness of enforcement versus collaborative
action and a need for clear frameworks for decision-making and
escalation.
EPA has completed the development of a new Compliance Framework. This framework
sets out EPA’s strategic approach to supporting and improving environmental compliance.
The implementation of the framework will be phased in across all regulatory services by
mid-2011.
EPA is currently undertaking a major enforcement and compliance reform project,
incorporating the recommendations of the Ombudsman’s and recent VAGO reports. Having completed the first stage, which will soon be released for stakeholder comment,
EPA has engaged an expert external consultant to lead the next stage of this project. A
final report will be delivered by 30 December 2010, following interim findings on priority
areas by 30 September. Implementation of recommendations will commence in parallel
with the review and will continue into 2011.
EPA Annual Report 2010
7
EPA’s transformation to a modern regulator
Victorian Auditor-General’s report into hazardous waste management
EPA is committed to
transforming into a
transparent, accountable,
responsive and decisive
organisation
In June 2010 the Victorian AuditorGeneral’s Office (VAGO) report into
hazardous waste management was
released. This report, together with
the Ombudsman’s, comes at a critical
time in the 40-year history of EPA
Victoria.
The audit examined whether EPA’s control
and regulation of hazardous waste has
reduced inappropriate disposal. In particular,
it examined business information systems,
monitoring and enforcement actions, as well
as whether the expected benefits from the
Environment Protection (Industrial Waste
Resource) Regulations 2009 were being
achieved.
The audit focused on EPA’s internal systems
and administrative practices as they relate to
information management and compliance.
The report does not make findings about
the actual management of hazardous waste
by industry. EPA accepts its systems need
improvement; however, the community can
be assured that the risks posed by hazardous
waste are known and understood, and are
appropriately managed in Victoria.
However, we understand that our
processes need improvement. Through
continued development of our services
and strengthening of our compliance
and enforcement, EPA will continue to
build its capabilities. We will improve our
regulatory approach, continue to protect the
environment and ensure that the aspirations
of the Victorian community are met. EPA is
currently undertaking a number of initiatives
in order to implement the recommendations
outlined in the VAGO report, including the
following:
• Business System Reform (BSR) program
will address many of the information
management issues identified by VAGO,
including information quality controls,
business intelligence capabilities and
timely reporting. A closed tender for
the BSR program was issued in May
2010. This covers three of the nine
recommendations. While the BSR is being
embedded, EPA will implement enhanced
management reporting to monitor key
metrics.
• EPA has commenced work on
programs that address three more
recommendations, including a review of
compliance and enforcement, reviewing
environmental audit and annual reports,
and revising our financial assurance
program.
• The Enforcement Review Panel has
been revitalised, which addresses and
completes a further recommendation.
• To address the remaining two
recommendations EPA will review its
records management practices and
implement systems to ensure licensees are
meeting their audit requirements.
8 EPA Annual Report 2010
EPA’s transformation to a modern regulator
Meeting Community Aspirations
The reduction in gross environmental
pollution in the last 40 years is
a significant achievement and is
evidence of the value of a robust and
effective environmental regulator.
A key contributor to this achievement is a
large number of community members who
actively work with EPA every day, reporting
pollution, participating in environmental
programs, sharing opinions on proposed
activities and contributing to policy and
regulatory standards.
This shared sense of ownership for the
environment and for the liveability of Victoria
is fundamental to a healthy and sustainable
environmental future. An active, informed
and caring community is an essential arm of
an effective environmental regulator. EPA
recognises its role in both understanding
and acting on the aspirations of the
Victorian community for the environment
and supporting the community to help EPA
protect and care for our environment.
Brooklyn industrial
precinct
The western suburbs have long housed
industry and residents side by side. For local
residents this proximity has meant that air,
dust and odour issues in the area remain an
ongoing concern. Over the past year EPA
has collaborated with councils, residents and
industry, through the Brooklyn Community
Reference Group (BCRG), to plan and
implement actions to improve air quality and
reduce noise from the industrial precinct. In
order to see further improved outcomes for
the community EPA has undertaken a number
of initiatives, including:
• identifying opportunities for improving
the environmental performance of
Community aspirations
will drive the standards
that we set for our
environment. We will be
clear on the outcomes that
we are delivering and put
our effort where it counts
industries
• providing better information and
education to industry and residents
• actively addressing issues of noncompliant practice, including issuing fines
and prosecuting industry.
Dust has been a priority for action this year.
A comprehensive monitoring program
commenced in October 2009 to specifically
measure the effect of dust from the industrial
estate on Brooklyn and Yarraville suburbs.
The program found significant breaches
of national air quality standards. Over 20
Pollution Abatement Notices (PANs) have
been issued to companies in the area to
mitigate dust. In addition an EPA dust
specialist has advised industry on the best
measures to put in place in order to reduce
dust emissions.
As well as dust, odour has continued to be
a problem emanating from the Brooklyn
precinct. In February 2009 SITA Australia Pty
Ltd was found guilty of breaching its licence
by allowing offensive odour to discharge
beyond the boundary of its Brooklyn
composting facility. SITA was ordered to pay
$40,000 to fund a Brooklyn Environmental
and Educational Sustainability Program run
by Hobsons Bay City Council. Seven further
cases of odour offences are currently under
investigation.
In 2010 and 2011 EPA will continue to work
with local residents, Council and industry
to ensure that the environment is protected
and that industry has the expertise to meet
best practice standards for reducing its
environmental impact.
The aspirations of the
people of Victoria for
environmental quality
should drive environmental
improvement
Environment Protection Act
1970 s.1L
Improving transparency
Online works approval submissions
In 2009–10 EPA successfully trialled the use
of a web-based submission process for works
approvals. Works approvals are required
for activities that have the potential for
significant environmental impact. Traditionally
community members have been able to
provide written submissions. This process
will continue, but will be enhanced by the
new online system that is now available for
some works approvals. The new forum-based
website allows community members to
leave comments or a full submission on any
proposed works approval.
All comments on the website are accepted
as submissions and considered as part of the
works approval. The process was trialled for
the upgrade of the Eastern Treatment Plant,
as well as being used for the Barwon Water
Northern Water Treatment Plant and the
ANL composting facility at Coldstream. We
will continue to promote this new function
and hope that the community will find this
an easier and less time intensive process –
creating more options for community input.
Community Liaison Committees
EPA is a regular attendant at over 55
Community Liaison Committees (CLCs) that
are run across the state. These industry-led
committees meet to discuss site operation
and environmental performance. In 2009–10
EPA executive and senior management
have been progressively visiting all CLCs,
with further visits planned in 2010–11.
Presentations on licence reform and EPA
strategic priorities have been keenly received
by groups.
EPA Annual Report 2010
9
EPA’s transformation to a modern regulator
Strengthening compliance and enforcement
Our community demands
high environmental
standards and expects
companies and individuals
to behave responsibly.
Modern regulation means
understanding our clients
in order to influence them
most effectively to comply
with and even exceed legal
requirements. Businesses
rightly expect us to
support their efforts to
comply with the law
EPA undertook intensive and targeted
licence compliance blitzes of more
than 80 industrial sites in early 2010.
As part of the rolling round of inspections,
EPA has visited landfills, meatworks, dairy
factories, food processors, composting
facilities and wastewater treatment plants.
EPA director Matt Vincent said industry
compliance checks are a key function of
environmental regulation.
“The blitzes aim to keep industry on their
toes when it comes to environmental
performance and ensure they are fulfilling
their environmental obligations”, he said.
“Our theory is that if operators are doing the
right thing, then they really should have no
concerns when they get a visit from EPA to
inspect their premises.”
The blitzes have so far examined things like
waste transport certificates and management
procedures, waste containment and treatment
systems, environmental management
practices, stormwater protection, litter control
and general housekeeping of sites to assess
environmental risk.
Results from the Gippsland inspections
undertaken in mid-April revealed just half of
the 23 licensed sites to be compliant with their
licences.
This result was echoed in south-west Victoria,
with just 65 per cent of 20 sites inspected
found to be up to scratch.
10 EPA Annual Report 2010
Mr Vincent said both Gippsland and southwest Victoria had yielded some disappointing
results.
“We certainly expect better and were
somewhat surprised by the fact that some of
the more basic environmental expectations
were being overlooked. Poor housekeeping
was a common feature, with chemicals and
fuels stored incorrectly, inefficient stormwater
management, and poor maintenance of
groundwater monitoring bores”, he said.
“We also had one operator who didn’t know
where his EPA licence was, which is really
poor.”
Results from the north-west compliance blitz
proved more heartening, with 90 per cent
of industrial sites inspected found to be
complying with licence conditions.
In May 2010 a team of 20 EPA officers
inspected 40 sites covering the regional
areas of Mildura, Swan Hill, Echuca, Bendigo,
Castlemaine, Horsham and Stawell.
The bulk of sites visited were performing
to the expected environmental standards,
but Mr Vincent said there is always room for
improvement.
“Managing environmental risk needs to be
better at some sites, as EPA officers observed
incorrect storage of waste, as well as poor
onsite management of dam and wastewater
treatment ponds – which EPA will be following
up in coming months.”
The compliance checks will continue as part of
EPA’s role as a modern, energetic regulator.
Our Performance
Major prosecutions
As already outlined in this report,
EPA has a renewed focus on
strengthening the compliance and
enforcement arm of the organisation.
This intention has been articulated
clearly to industry and the wider
community and it heralds a new,
more invigorated approach to
compliance and enforcement.
A full list of prosecutions for 2009–10 can be
found on page 57. A significant prosecution is
highlighted below.
Eco-Chem Pty Ltd
On 6 April 2010 Daryl John Owens, a former
director of Eco-Chem Pty Ltd pleaded guilty
in the Moorabbin Magistrates’ Court to one
charge of contravening two conditions of an
EPA licence. Magistrate P. Smith convicted
and fined the accused an aggregate of
$25,000. He was further ordered to pay EPA’s
legal costs of $42,705.74 and compensation
of $265,000 towards the anticipated cost of
cleaning up the premises.
This is a significant finding for EPA and is a
clear example of EPA holding individuals to
account. Through the Environment Protection
Act 1970 (the Act) EPA will pursue both
companies and individuals in order to ensure
that people who contravene their obligations
under the Act are held accountable.
EPA’s CEO John Merritt said, “No company
or its directors has the right to walk away from
environmental problems they caused on the
site.”
“This company has neglected its responsibility
and left an expensive mess for others to clean
up. That is not appropriate and this case
needs to serve as a reminder to others that
EPA can and will hold you accountable for
your actions if you do the wrong thing by the
environment or the community.”
We will take a regulatory
approach that aims to find
the right balance. It is a
proportionate, risk-based
approach that provides the
ultimate reassurance that
tough action will be taken
on those who fail to meet
acceptable standards, but
still drives environmental
improvements and rewards
good performance
operated a rented warehouse under an EPA
licence. The licence was for the consolidation
and storage of Prescribed Industrial Waste
from the dry-cleaning industry. Two key
conditions restricted both the quantum (2
tonnes) and duration (6 months) of such
storage.
EPA concerns about excess quantum and
duration during 2005 resulted in a licence
amendment requiring the removal of excess
waste. By early 2006 only some of the excess
had been removed.
A liquidator was appointed by the Supreme
Court in April 2006.
Subsequent EPA investigations involving an
external expert found that approximately
100 tonnes of dry-cleaning waste had been
left at the premises. A Clean Up Notice was
issued to both the accused and the company
in October 2008. Notices of Contravention
followed in December 2008.
In February 2009 a meeting of the company’s
creditors voted to wind up the company. At
that meeting EPA registered a debt of an
estimated $1.3 million for the outstanding
requirements under the Clean Up Notices.
In August 2009 charges alleging breach of
licence and the Clean Up Notice were issued
against both the company and the accused.
On 6 April 2010, after the magistrate found
the accused guilty, counsel for EPA applied
for a compensation order under section 65A
of the Act for $530,500 – being the minimum
immediately quantifiable anticipated cost of
clean-up. He explained that, if the company
were to be found guilty, the same order would
be sought.
The charges against the company were
adjourned to an ex parte hearing to be held
on 6 July 2010, also before Magistrate Smith.
In June 2010 EPA arranged for the clean-up
and removal of all the drums of waste from the
premises.
TABLE 2: Prosecutions
Year
2009–10
2008–009
2007–08
2006–07
2005–06
No. of Prosecutions
13
8
18
13
12
Successful
13
8
16
12
12
-
-
2
1
-
100%
100%
88.8%
92.3%
100%
Not Successful
% Successful
Prosecutions
Commencing in late 2003, Eco-Chem Pty Ltd
EPA Annual Report 2010
11
Our Performance
Major prosecutions
EPA will only accept an
undertaking where it is
the most appropriate form
of enforcement response
and will achieve a more
effective and long-term
environmental outcome
than prosecution
New enforcement tool
A new enforcement tool has recently
been utilised for the first time under the
Environment Protection Act 1970 (the Act).
Enforceable undertakings were introduced
into the Act as a mechanism that can be
tailored in individual circumstances to achieve
environment protection outcomes as well as
deliver timely and cost-effective responses to
environmental breaches.
In essence, enforceable undertakings are a
committment in which an alleged offender
voluntarily undertakes to perform various tasks
in settlement for contravention of the Act. EPA
will only accept an undertaking where it is the
most appropriate form of enforcement response
and will achieve a more effective and long-term
environmental outcome than prosecution.
The capacity to agree on an undertaking in
response to a breach of the Act will enable
efficient and effective resolution of some issues
without the need for costly and time-consuming
court proceedings. Importantly, enforceable
undertakings provide an opportunity for EPA to
require that a company put in place mechanisms
that may prevent future breaches of the Act,
promoting systemic behavioural changes in a
proactive manner.
Governance processes have been set in place
to ensure a robust and transparent application
of this enforcement tool. Guidelines, required
under the Act, have been published by EPA.
12 EPA Annual Report 2010
They provide information about when an
undertaking will be considered by EPA,
the development and approval process
and information about acceptable and
unacceptable content. In addition, an
Enforceable Undertakings Panel has been
appointed to provide EPA with advice on each
individual undertaking offer.
The panel, selected to provide a breadth of
skills and expertise, comprises Professor Arie
Freiberg (Chair of the Victorian Sentencing
Advisory Council and Dean of the Faculty
of Law at Monash University), Professor Neil
Gunningham (academic at the Australian
National University), Dennis Monahan
(consultant with background in environment
protection), Diane Sisely (Director Australian
Centre for Human Rights Education RMIT) and
Christine Parker (academic at the University
of Melbourne). The panel is not a decisionmaker. The responsibility for accepting
or rejecting an offer of an enforceable
undertaking ultimately rests with EPA. In
making this decision, EPA considers the
panel’s advice.
South East Water enforceable
undertaking
On 11 June 2010 EPA approved South East
Water Limited’s (SEWL) proposal of an
enforceable undertaking as an alternative to
court prosecution. This followed a sewage spill
of approximately 40,000 litres at the company’s
Mt Martha premises in September 2008.
It was alleged that the company had, by
the discharge of effluent to the waters of
Balcombe Creek and surrounding environment,
breached its licence in contravention of section
27(2) of the Act; had caused or permitted
an environmental hazard in contravention
of section 27A(1)(c) of the Act; and had
polluted the waters of the Balcombe Creek in
contravention of section 39(1) of the Act.
Under the terms of the enforceable
undertaking, SEWL commits to:
1. Determine industry ‘best practice’ with
respect to early warning leak detection
systems in order to establish options for
the future application of such a system to
its higher risk rising mains in Victoria.
2. Review and update its rising main
‘renewal and reinspection program’, which
assesses the current pipe condition of the
company’s higher risk rising sewer mains
and sets in place a program to renew or
reinspect each rising main, based on the
risk rating allocated to it.
3. Establish site-specific contingency plans
for managing future rising sewer main
failures for all higher risk rising mains.
4. Install and trial a minimum of three early
warning leak detection systems on a rising
main. Using the information obtained
through these trials, SEWL will identify
a preferred system and will install and
trial this on a minimum of four additional
higher risk sewer rising mains.
5. Disseminate the findings from this
undertaking to the water industry and
interested community members.
All commitments within the undertaking must
be delivered by 11 December 2012.
SEWL must engage an EPA-appointed auditor
to review the undertaking and provide written
assurance to EPA that it has been successfully
implemented. If the undertaking is not
successfully implemented, EPA may seek to
enforce it in the Magistrates’ Court.
Our Performance
Meeting Our Commitments
Corporate Objectives:
• reduce emissions impact
• improve resource
efficiency
The past 12 months have seen a
great deal of change across EPA.
With a new Chairman and CEO at
the helm, we are now focused on
implementing the legislation that
allows EPA to establish environmental
standards, assess and regulate
against them, work with organisations
to meet the standards and go
beyond. With this new focus we are
reprioritising our performance targets
to meet this new mandate. We will
report fully on these in 2010–11.
Some of our key achievements for the year
are outlined following.
Delivering regulatory
reform – establishing
standards
The environment protection challenges
we face are unprecedented. Existing and
emerging challenges require rethinking
approaches to environment protection. This
includes looking at the way we meet out
protection goals through our standard setting.
EPA has reviewed its strategic approach
to setting standards for environmental
protection and based on this will proceed to
review selected State Environment Protection
Policies with DSE in 2010-11.
EPA is responsible for preventing or
controlling pollution (including noise) and
improving the quality of the environment.
One of the tools available to EPA is the
licensing of certain, scheduled premises that
might present such a risk to the environment.
EPA’s licensing system is over 30 years old.
Environmental challenges have changed.
Communities are more aware and have
higher expectations, and businesses are more
responsive to environmental needs. Adapting
to these changes, EPA has been reforming the
licensing system.
Licence reform
New reformed licences are more consistent
and simpler, and they clearly state the
environmental outcome required. New public
reporting obligations require that the most
senior person in the company holding the
licence attest to their level of compliance. This
new level of transparency will provide EPA
and the community with greater assurance
that licence holders take their responsibilities
seriously. Ultimately, the environment will
benefit from a more streamlined, consistent
and efficient licensing system.
KEY OUTCOMES:
• EPA is on track to complete the reform
by December 2010. The first reformed
licences were issued in March 2010, with
274 single-site licences and 28 corporate
licences issued as of 30 June 2010.
• In the 2009–10 year EPA has reformed 75
per cent of all environmental licences.
EPA Annual Report 2010
13
Our Performance
Meeting Our Commitments
The Annual Performance
Statement system supports
EPA’s responsibility to
set simple, clear licence
obligations
Annual Performance Statement
A key feature of the reform is improved licence
reporting through the Annual Performance
Statement (APS). The APS is an online
submission system that requires the highest
officer in the company, such as the chief
executive officer (CEO) or managing director,
to attest to compliance with each licence
condition. It reduces red tape for licence
holders – so they can focus on protecting the
environment – and increases transparency
and accountability through public reporting.
The APS system supports EPA’s responsibility
to set simple, clear licence obligations, and a
licence holder’s responsibility to demonstrate
compliance against those obligations.
KEY OUTCOMES:
• APS guidance documents finalised and
licences containing APS requirement
issued.
• Online portal to prepare and submit APS
currently being completed.
14 EPA Annual Report 2010
Regulation of landfill and landfill
licences
EPA requirements for environmental
management of landfill operations have
changed as part of the licence reform
program. These changes have led to landfill
licences being less prescriptive and requiring
licence holders to better identify and manage
the environmental impacts of their landfill
operations.
This shift in responsibility has also increased
the requirement for environmental
assessments and audits of landfill
management activities by environmental
auditors appointed under the Environment
Protection Act 1970.
In fulfilling its role of establishing standards
and regulating against them, EPA has
also undertaken a full review of landfill
management. The Best Practice Environment
Management (BPEM) – siting, design,
operation and rehabilitation of landfills
guideline is being reviewed to respond
to advances in landfill technology and
management practices. This review will
also address many recommendations of the
Ombudsman’s report into methane gas leaks
at the Brookland Greens residential estate
from the former Cranbourne landfill.
The BPEM provides further definition of
the requirements set out in the Waste
Management Policy (siting, design and
management of landfills) and complements
the licence reform program by specifying the
performance requirements at each stage of a
landfill’s life, i.e. siting, design, operation and
rehabilitation.
KEY OUTCOMES:
• Scoping stage of landfill BPEM completed.
EPA identified a number of sections that
required strengthening or updating due to
changes in technology and best practice.
These included landfill gas management,
buffer distances, enhanced degradation
landfill, alternative capping and liner
technologies.
• Consultation took place from May to June
2010. Nineteen submissions were received
through the public consultation process
and numerous verbal submissions were
collated during the workshops held across
Victoria.
• Final BPEM to be released Sept 2010.
Our Performance
Meeting Our Commitments
Regulating against
standards
EPA regulates a diverse set of activities on
behalf of the Victorian community. These
range from licensing industries to control
and reduce emissions and resource use, to
ensuring individuals do not litter or drive
polluting vehicles, to ensuring organisations
that are large users of water and electricity
have plans in place to minimise the use of
these precious resources.
An important piece of work completed in
December 2009 was the new Compliance
Framework. This sets EPA’s strategic approach
to supporting, improving and streamlining
environmental compliance for the benefit
of the Victorian environment, community,
businesses and the economy.
KEY OUTCOMES:
New Compliance Framework completed. The
framework will:
• provide certainty on compliance
obligations for parties subject to EPA
regulation
• enable compliance risks to be identified
and managed
Strengthening compliance and
enforcement
EPA works with a wide range of the community
in its work to protect the environment. In
some areas of environment protection, such
as managing emissions from motor vehicles
and preventing litter, we regulate and work
with individual community members. In other
areas, such as emissions control and improving
resource efficiency, we regulate and work with
companies that range from sole traders to
large multinational businesses with multiple
sites across Victoria.
The new Compliance
Framework sets EPA’s
strategic approach to
supporting, improving and
streamlining environmental
compliance
In our experience, the vast majority of people
want to do the right thing by their neighbours
and their community. However, in some cases
individuals do not meet their environmental
obligations.
KEY OUTCOMES:
• Compliance and Enforcement Review
Phase 1 complete – review included
independent advice from compliance
and enforcement experts and legal
practitioners.
• Compliance blitz across Victoria,
strengthening compliance and
enforcement (see page 10).
• provide clear pathways for decisionmaking to address non-compliance
• allow ongoing feedback and evaluation to
continue to shape the framework.
The implementation of the Compliance
Framework will be phased in across all
regulatory services. Priority has been given to
the following services, where implementation
is due for completion by January 2012:
•
•
•
•
licences
landfill levy and financial assurances
notices
environment and resource efficiency plans
(EREP).
EPA Annual Report 2010
15
Our Performance
Meeting Our Commitments
Yarra River recreational
water quality has remained
relatively stable over the
past 14 years - mainly due
to extensive investment
in infrastructure, river
management, corrective
action and reduction in
sources of pollution
EPA on the Yarra
As part of the State Government’s
commitment to improving the environment,
Our Environment Our Future (Environment
Sustainability Action Statement), EPA received
additional funding of $4.5 million for a
dedicated team to track sources of pollution
to the Yarra River.
This additional funding was used to establish
the Yarra River Investigation and Response
Program (YRIRP) between 2006 and 2010.
The team members, consisting of pollution
response and enforcement officers, scientific
staff and engagement professionals,
concentrated their efforts on finding, fixing
and preventing pollution, and researching the
sources and impacts of pollution in the Yarra
River catchment.
These activities were focused on the inner
and middle parts of the Yarra catchment,
including the Moonee Ponds, Darebin, Merri
and Gardiners Creek catchments, where the
majority of development, including commercial
and industrial development, has occurred.
The program focused on building
partnerships with a number of agencies,
non-government organisations and key local
government authorities, without which the
program would not have been as successful.
16 EPA Annual Report 2010
KEY OUTCOMES:
• Over 1200 businesses were inspected,
leading to substantial improvement in
water quality and pollution prevention.
• Significant improvements in the
management of commercial vessels on the
Yarra River.
• Over 30 sources of pollution identified by
our major partner, Melbourne Water, were
rectified.
• Improved knowledge in a number of areas
concerning management and prevention
of pollution to waterways, including;
improved pollution detection and
management techniques and improved
ways of engaging with businesses and
community.
• Improved publications on stormwater
pollution prevention for use by small
business, such as car repairers, and
improved guidance on signage along
waterways identifying potential trouble
spots for use by local government.
Improving resource
efficiency and reducing
emissions impacts
Environment Protection
Amendment (Landfill Levies) Bill
2010
A key activity in driving resource efficiency
is the Environment Protection Amendment
(Landfill Levies) Bill 2010 that was enacted on
1 June 2010 and will come into operation on 1
July 2010. With the passing of this legislation
landfill levies will increase for municipal and
industrial waste. Higher levies will drive
increases in recycling and resource efficiency,
reductions in waste to landfill, create jobs and
improve Victoria’s environment. Revenue from
the increases will be used to further these
outcomes, including reinvestment programs
for industry and support for councils. There
will also be increased funding for EPA and
other environmental agencies to cover new
and existing programs. We will report on
the progress and outcomes of these new
programs in 2010-11.
To reduce emissions impacts we are also
focusing on the reports that we receive
through the Pollution Watch Line and in
particular the top 5 companies that generate
most reports. This is part of a normal risk
based approach to regulatory practice. As
has already been highlighted in this report,
that has resulted in a focus on the Brooklyn
industrial precinct and the associated dust
and odour issues.
Our Performance
Meeting Our Commitments
EPA encourages a proactive business
approach to helping organisations shift their
focus from compliance to resource efficiency
and best practice continuous improvement.
In the past year we have worked closely with
Nubrick/Australbricks a manufacturer of brick
products – a manufacturing process with
significant environmental risks and impacts.
EPA has worked closely with Australbricks,
together with other agencies, to reach agreed
emission reduction targets and an agreed
management plan to protect the local flora
and fauna.
Since then there have been annual targets
for the reduction of Category B waste to
landfill, with reduction efforts supported by
landfill levy increases and by reinvestment of
those levies via the HazWaste Fund. Another
contributing factor was the implementation of
the new Industrial Waste Resource Regulations
in July 2009. KEY OUTCOMES:
The trend established over the last three
years suggests the elimination of Category
B non-soil waste disposal to landfill by 2020. We are track to meet this target, however, it is
expected that reduction efforts will become
more difficult as the total approaches zero.
• australbricks submitted and received
works approval for the construction of a
new $65 million brick manufacturing plant
• new facility will reduce emissions by
up to 75%
• new facility will increase resource use
efficiency by up to 40%.
Reducing hazardous waste
Hazardous waste, known as “prescribed
industrial waste” (PIW) in Victoria’s
environment protection laws, is the byproducts of everyday goods and services, such
as the manufacturing of motor vehicles, paint
and plastics, dry-cleaning services, fast-food
outlets, dental surgeries and hospitals.
The hazard classification of prescribed
industrial waste (PIW) was introduced in July
2007, identifying PIW from highest hazard
(Category A) to lowest (Category C), with
Category B waste being the highest level of
hazard authorised for landfill disposal.
The Category B target for 2008–09 was
40,000 tonnes (exceeded with a total of 43,744
tonnes disposed to landfill). The 2009–10
total represents a reduction in annual landfill
disposal of Category B waste of 9944 tonnes.
KEY OUTCOMES:
• Introduction of the Environment Protection
(Industrial Waste Resource) Regulations
2009 with supporting guidance and
systems in place to support the new
regulations.
• Reduction of disposal of Category B waste
sent to landfill to 33,800 tonnes, which was
below our target of 35,000 tonnes. GRAPH 1: Category B hazardous waste to
landfill
70,000
Actual
Target
HazWaste Fund
The HazWaste Fund is the Victorian
Government’s vehicle for investing prescribed
industrial waste landfill levy revenue back
into industry to support initiatives to reduce
hazardous waste. A list of projects for which
contracts have been entered is publicly
available on the EPA website. See http://
www.epa.vic.gov.au/projects/piw_reduction/
hazwaste_project_table.asp
The types of projects funded span:
• Infrastructure and implementation projects
- these projects attract the highest
investment, where financial support is
provided to purchase capital expenditure
to change or improve a process that has
been proven to reduce the production of
hazardous waste.
• Research and development and
demonstration projects - these projects
generally involve a trial or ‘proof-ofconcept’ of a new technology or change in
current process, and demonstrating this to
the market place. In some cases financial
support is given to new commercial
ventures.
• Knowledge and capacity-building projects
- these projects are typically desk-top or
feasibility studies, but can also apply to
investments into training or education
tools for specific industries to achieve
waste reductions.
HazWaste Fund financial summary
60,000
Expenditure 2009–10
50,000
Expenditure to date
40,000
New commitments 2009–10
30,000
Total commitments
to date
$1,007,504
$5,021,102
$12,916,196
$18,773,441
20,000
Note: There is a lag in the actual spend vs
commitment for the following reasons:
10,000
0
2007/08
2008/09
2009/10
Upon a funding offer being made to a
company “commitment”, there is a 6 month
timeframe during which EPA and the company
negotiate the funding agreement.
Payments “expenditure” occur as milestone
payments throughout the progress of a
project, and is only paid when project
milestone have been completed. Some
projects have up to a two year timeframe,
and the bulk of the funding in infrastructure
projects is “back-ended” to ensure the
projects are successful.
EPA Annual Report 2010
17
Our Performance
Meeting Our Commitments
EPA’s 22 Client
Relationship Managers
worked with more than
700 industry clients in
seeking the best outcome
for the environment and
the community
Creating a client focused
organisation
During 2009/10, EPA’s 22 Client Relationship
Managers (CRMs) worked with more than 700
industry clients in seeking the best outcome
for the environment and the community. CRMs are the key point of contact for
industry and work to match EPA services with
business needs and ensure that industry is
clear on its environmental obligations. CRMs
work strategically with the client to identify
opportunities to improve environmental
performance overall. EPA understands that
even a compliant industry needs to do more
and the CRMs are there to drive continued
improvement. CRMs are vigilant on non
compliance, but also act as a coach for those
businesses that understand the benefits of
moving beyond minimum environmental
standards.
Responding to our changing
environment
To build organisational resilience to climate
change EPA Victoria conducted a risk
assessment in 2009 to identify risks arising
from projected climate change out to 2030.
Risks identified had potential financial, legal,
safety, environmental, strategic, service
delivery and reputational impacts to EPA. 18 EPA Annual Report 2010
Themes identified from the assessment
included risks associated with:
• increase and frequency of extreme events
• rapid introduction of new technology
• a changing dynamic environment
• changing priorities and behaviours in
response to climate change
• changing social, economic and
environmental landscape.
From this risk assessment work, three priority
areas that have particular implications for the
work of EPA were identified.
Innovative regulation
Environment and Resource Efficiency Plans–EREP
Victorian businesses continue to realise
significant financial and resource savings
through the Environment and Resource
Efficiency Plans (EREP) program.
Through EREP, large energy and water using
businesses identify cost effective ways to save
energy, water and waste. Importantly, sites
must implement actions with a payback period
of three years or less.
KEY OUTCOMES:
• This year businesses continued to
implement actions, working towards
realising expected overall program
savings of 5000 megalitres of water, 4500
terajoules of energy, 900,000 tonnes of
greenhouse gas emissions and 100,000
tonnes of solid waste.
• These actions are also expected to deliver
$70 million in cost savings. The savings
come from a wide range of actions –
from simple maintenance measures,
such as reprogramming systems and
repairing leaks, to large scale projects
with significant capital investment. Large
savings are being delivered through those
actions with little or no upfront costs and
the average payback period of mandatory
actions is less than one year.
Amcor Australasia is one of many businesses
reporting that the EREP program has helped
them make large resource and financial savings,
often with very little capital outlay. One of the
projects at their Laverton North site involved
reprogramming the production line to turn the
ovens off when not in use. This has led to savings
of 3,000 GJ of energy per year (equivalent to
around 60 households energy use).
In addition to driving resource use reductions,
businesses are seeing the value in involving
staff from right across the business. John
Newton, Group Manager for Sustainability and
Environment, Amcor Australasia, commented
that “one of the key additional benefits we’ve
found was relating to staff engagement
and engaging people on the factory floor,
involving them in the process, involving them
in the project identification and ultimately the
implementation”.
Goodman Fielder found the integrated
approach to resource efficiency and ability to
transfer opportunities identified through EREP
to other sites particularly useful. “As EREP is the first state-based compliance
program that looks at energy, water and
waste from a holistic perspective, it really
encouraged a business such as Goodman
Fielder to understand where our energy and
water was being used” said Daan Schiebaan,
Goodman Fielder Group Environment
Manager.
The opportunities identified by Goodman
Fielder are being rolled out at their other
numerous baking sites across Australia and
New Zealand.
For more written and video case studies, go to
www.epa.vic.gov.au/erep
Our Performance
Meeting Our Commitments
Beyond compliance
EPA will continue to enforce regulatory
standards, but we will also support those
who want to go beyond minimum standards
and reduce resource use. We will support
innovators and devote resources to our
beyond-compliance measures. Below are
examples of our work in this area and key
outcomes for 2009–10.
Sustainability covenants
Sustainability covenants are voluntary
agreements through which EPA and an
organisation or group of organisations can
explore new, creative ways of reducing the
environmental impact and increasing the
resource efficiency of their products and
services. This partnership approach, coupled
with our compliance measures, can extend
EPA’s reach and deliver tangible benefits for
the environment.
EPA has numerous sustainability covenants
spanning industries and sectors. Over the
past year we have partnered with two new
industries in order to further drive innovation
and support industry to foster improved
environmental performance.
EPA and the Victorian Transport
Association
On 20 July 2009 EPA and the Victorian
Transport Association (VTA) signed a threeyear sustainability covenant. Through the
covenant, EPA and VTA intend to work
together to support VTA member companies
and the wider freight sector to protect
the environment and contribute to a more
sustainable Victoria.
A key objective of the covenant will be to pilot
a program for the freight sector to reduce
fuel, save money and reduce greenhouse gas
and air pollutant emissions. EPA and VTA will
also work together to increase awareness and
understanding of key environmental issues
in the freight domain, support and recognise
leadership in the sector, and work towards
a low carbon future for the transport and
logistics sector.
KEY OUTCOMES:
• EPA and VTA held four workshops with
27 members from the freight industry
between October 2009 and April 2010,
which looked at how to translate the
US SmartWay freight initiative into
the Australian context. This included
identifying the issues and challenges
for the industry in addressing their fuel
consumption and environmental impact.
• During 2009–10 the program also
identified and started to develop key
tools and resources to support it, such as
the fleet assessment tool, which allows
fleets to calculate their baseline fuel
consumption and emissions performance.
Wider industry participation will be sort
from August 2010.
Turning a ‘waste’ into a
‘resource’ has reduced
Qenos’s prescribed waste
by 600–750 tonnes per
year
EPA and the Plastics and Chemicals
Industries Association
On 17 March 2009 EPA and the Plastics and
Chemicals Industries Association (PACIA)
signed their second three-year sustainability
covenant. This covenant will focus on
the implementation of the Sustainability
Leadership Framework for Industry, which
was developed under the first covenant, and
achieving on-the-ground outcomes for PACIA
members. This will be accomplished through
the development and delivery of tools, training
and support programs to individual PACIA
member companies. Two great examples of
tangible outcomes from this partnership that
were achieved over the past year are with
Australian Vinyls and Qenos.
KEY OUTCOMES:
• Australian Vinyls was one of the 20 highest
water users in Victoria, and through the
covenant PACIA and EPA supported
a water treatment trial that led to the
construction of a new water treatment
plant. This is now saving 326ML of water
per year and has cut Australian Vinyls’ total
water use by 50 per cent.
• Qenos investigated alternative uses for a
wax by-product that represented 50 per
cent of its total prescribed waste. Turning
a ‘waste’ into a ‘resource’ has reduced
Qenos’s prescribed waste by 600–750
tonnes per year.
EPA Annual Report 2010
19
Our Performance
Meeting Our Commitments
EPA is committed to
achieving real reductions in
greenhouse gas emissions.
We have been carbon
neutral since 2005/06
Carbon Innovators Network
EPA launched the Carbon Innovators Network
in 2007 to address a growing business need
for support and advice on climate change.
Since then, the network has grown to over
1400 members representing business and
industry, government and not-for-profit
sectors.
The network brings together business leaders
and climate change experts to stimulate
debate and innovation in carbon management.
The benefits of membership include regular
information updates and e-newsletters, free
discussion forums, networking and events,
opportunities for businesses to be publicly
recognised for their leadership in carbon
management, influence over the tools and
resources that EPA develops, and tailored
business support and advice as required.
KEY OUTCOMES:
• In 2009–10 EPA held 11 events, including
three regional events and two senior
executive functions, covering topics
such as Carbon Management, Marginal
Abatement Cost Curves and Cogeneration
and Trigeneration Renewable Energy
Technologies.
• In September 2009 EPA launched the
Carbon Innovators Network website, www.
carboninnovators.net.au, which includes
an online discussion forum and member
directory.
20 EPA Annual Report 2010
• In May 2010 an event was held in Traralgon
with the Gippsland Climate Change
Network, looking at the business risks
and opportunities associated with climate
change in the region.
• Four Carbon Matters newsletters were
released, covering topics such as the
introduction of the Renewable Energy
Target, Greenearth Energy’s Geelong
geothermal project, the implications of the
Copenhagen climate conference and the
application of EPA’s carbon management
principles.
Carbon Offset Guide
The Carbon Offset Guide is an independent
directory of Australian carbon offset providers
developed through a partnership between
EPA and Global Sustainability at the Royal
Melbourne Institute of Technology (RMIT).
The guide was developed in 2007 to provide
an independent directory on the emerging
carbon offset market. It is a resource to
businesses, government agencies, NGOs and
individuals seeking information about carbon
offsets.
The website is updated every six months. The
survey for the July 2010 release was sent out
in April 2010 and saw the number of providers
rise to 91 across Australia, offering a variety
of national and international offset projects:
http://www.carbonoffsetguide.com.au/
Cap and Trade
From 1 December 2009 to 31 December 2009,
EPA Victoria ran an internal Carbon Cap and
Trade scheme between its seven sites. At
the beginning of the scheme we anticipated
an overall reduction of 3%. The program
proved to be significantly more successful;
EPA achieved a 24.5 % reduction across
emission sources covered by the scheme, and
an average of 22% reduction across the sites
involved.
EPA is committed to achieving real reductions
in greenhouse gas (GHG) emissions. We
have been carbon neutral since 2005/06 and
continue to reduce our energy use and direct
and indirect GHG emissions through various
other activities including fleet management
and greening of our buildings.
Whilst alternative options existed for driving
GHG emission reductions (e.g. performance
management processes), we recognised
significant additional benefits would be gained
through the design and implementation of a
internal Carbon Cap and Trade scheme.
Some of these benefits include:
• Engaging all staff in discovering cost
effective ways to reduce our emissions.
• Assisting our clients by learning first hand
about emissions trading and managing
the impacts a price on carbon creates.
There has been serious consideration of
an emissions trading scheme (ETS) both
in Australia and various other countries
around the world. Regardless of the
outcome of these discussions, a future
carbon price in some form looks likely and
will impact upon nearly all businesses in
some way. • Enhancing our reputation though an
innovative program to reduce our own
GHG emissions and demonstrate best
practice to industry and the wider
community.
EPA directory
In October 2009 EPA Victoria relocated
from its Southbank offices to new premises
at 200 Victoria Street, Melbourne, a six star
green star office building that is a vibrant and
healthy workspace that delivers on all aspects
of environmental, social and economic
sustainability.
Melbourne head office
Street address
200 Victoria Street Carlton, Victoria 3053
Postal address GPO Box 4395QQ Melbourne, Victoria 3001
DX Mail DX210082
Telephone Australia: (03) 9695 2700
International: +61 3 9695 2700
(from outside Australia)
Fax Australia: (03) 9695 2780
International: +61 3 9695 2780
Internet: www.epa.vic.gov.au
Information centre
200 Victoria Street Carlton, Victoria 3053
Telephone: (03) 9695 2722 or +61 3 9695 2722
(from outside Australia)
Fax: (03) 9695 2780 or +61 3 9695 2780
Our information centre provides a wide range
of information on topics such as air and water
quality, environmental legislation and a range
of environmental guidelines covering a variety
of industrial and business activities.
Macleod Office and Centre for
Environmental Sciences
Ernest Jones Drive Macleod, Victoria 3085
Telephone: (03) 8458 2300
Fax: (03) 8458 2301
DX Mail: 210675
EPA Southern Metro
35 Langhorne Street Dandenong, Victoria
3175
Telephone: (03) 8710 5555
Fax: (03) 9794 5188
DX Mail: 211566
EPA Gippsland
7 Church Street Traralgon, Victoria 3844
Telephone: (03) 5173 9800
Fax: (03) 5174 7851
DX Mail: 219292
EPA North East
27–29 Faithful Street Wangaratta, Victoria
3677
Telephone: (03) 5720 1111
Fax: (03) 5721 2121
DX Mail: 219454
EPA Victoria is continuing its
commitment to sustainability by
producing an online annual report
for 2009-10. The report is available at
www.epa.vic.gov.au
A limited number of hardcopies of our
concise annual report are available
from head office.
Produced by EPA Victoria
ISBN0 7306 7682 X
EPA publication number 1352
EPA North West
165–171 Hargreaves Street Bendigo, Victoria
3550
Telephone: (03) 5438 1000
Fax: (03) 5443 6555
DX Mail: 214537
EPA South West State Government Offices
Corner Little Malop and Fenwick streets
Geelong, Victoria 3220
Telephone: (03) 5226 4825
Fax: (03) 5226 4632
DX Mail: 216073
www.epa.vic.gov.au T: 03 9695 2722 F: 03 9695 2780
This publication is copyright. No part of it may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968 © State of Victoria, EPA Victoria 2009
ISBN0 7306 7682 X EPA publication number 1352