The Hon Ryan Smith MP
Minister for Environment and Climate Change
PO Box 500
EAST MELBOURNE VIC 8002
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Our Ref: SU006623
The Hon Ryan Smith MP
Minister for Environment and Climate Change
PO Box 500
EAST MELBOURNE VIC 8002
Dear Minister
EPA Reply to Statement of Expectations for EPA 2014-16
Thank you for your letter of 30 June 2014, containing your Statement
of Expectations for the Environment Protection Authority Victoria
(EPA) for the next two financial years (the 2014-16 SOE).
This letter confirms EPA’s commitment to demonstrating good
regulatory practice and outlines our plans for achieving the
performance targets in your 2014-16 SOE.
Demonstrating good regulatory practice
In recent years, EPA has demonstrated its commitment to improving
its regulatory practice through a wide range of actions and initiatives.
This has included reforming our licences and our approaches to
compliance and enforcement and customer service, developing our
science and engineering capability and expertise, and reviewing and
commencing reforms to our approval processes and audit work.
During the period of this 2014-16 SOE – which coincides with the final
two years of our 5 Year Plan – we remain committed to further
reforms to transform EPA into a modern regulator.
EPA’s commitment to improving regulatory practice more broadly is
illustrated by its strong level of involvement in regulatory networks.
This includes co-chairing the Better Regulation Cluster of the
Australasian Environmental Law Enforcement and Regulators
Network (AELERT). In this forum, EPA Victoria and the Queensland
Department of Environment and Heritage Protection have led the
development of a ‘regulatory circumplex’ that further defines the
elements of good regulatory practice and enables a regulator’s
performance to be compared with different benchmark levels (see
Attachment 1). A member of EPA’s leadership team also chairs the
Public Sector Regulators Community of Practice, which is run by the
Institute of Public Administration Australia and the Australia and New
Zealand School of Government.
Our plans to meet the 2014-16 SOE performance targets
Your 2014-16 SOE includes 10 performance measures and targets.
Seven of these relate to EPA’s approvals and audit reforms, building
on the 2013-14 performance measures in your first SOE for EPA. The
remaining three performance measures and targets relate to the
quality of EPA’s guidance and information for duty holders and
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external stakeholders. The actions we have planned to achieve the
2014-16 SOE performance targets are outlined below.
EPA approvals reform
Measure
Target
Good regulatory practice
element(s)
1. Pilot new approach to
Pilot launched by early 2015 Risk-based strategies
providing earned autonomy
to high performing EPA
licensees
2. Periodic reviews of the
currency and effectiveness of
EPA licence conditions
3. Publication of EPA works
approval summary
assessment reports
Prioritisation framework
and procedures developed
and reviews of licences
commenced by 30 June
2015
Risk-based strategies
Published for all works
approval decisions from 31
December 2014
Accountability and
transparency
4. Extend maximum duration of Five year permits available
permits to transport
prescribed waste or
prescribed industrial waste
from 12 months to five years
Risk-based strategies
by 30 June 2015
The above performance measures build on reforms that EPA has
made to its approvals processes in 2013-14. This has included
introducing a risk-based assessment pathway process, publishing
guidance on EPA-granted exemptions, developing a procedure to
better coordinate assessments with co-regulators, and revising EPA’s
works approval application form and guideline.
In relation to performance measure 1 above, EPA will pilot a new
approach to providing earned autonomy with high performing EPA
licensees in a targeted industry sector. While this will not require any
changes to legislation or regulation, it will require EPA to update its
guidance and internal procedures.
Performance measure 2 relates to EPA’s commitment to introduce a
systematic process to periodically review standard licence conditions
and EPA licences, with a maximum period of five years between
reviews of each EPA licence.1 EPA will commence a licence
modernisation project in 2014-15 that will enable performance target
2 to be met. This project will examine how best to review licence
conditions, emission limits and the process for prioritising licence
reviews. EPA will then commence a periodic licence review process
by mid-2015 by reviewing the licences of a targeted industry sector.
1
EPA, Approvals Review Final Report (publication 1521, April 2013), page 26, reform H
2
Performance measure 3 reflects EPA’s commitment to publishing the
assessment and reasoning that informs its works approval decisions.2
This will be a valuable resource for industry proponents and
interested third parties. To achieve performance target 3, EPA will
amend its operating procedures and website.
Performance measure 4 relates to a recent amendment to the
Environment Protection Act 1970, which provides a head of power for
EPA to issue five year transport permits.3 However, to make five year
transport permits available by 30 June 2015 will also require
amendments to two sets of regulations4, changes to EPA’s finance
system and Integrated Business Information System, and updates to
EPA’s website and guidance materials.
I confirm that, in relation to performance measures 1 and 2, EPA will
set and publish new targets for the 2015-16 financial year by 31 July
2015.
EPA audit reform
Measure
Target
5. Time taken by EPA for a clean 90% within 56 days in
Good regulatory practice
element(s)
Timeliness
up to extent possible (CUTEP) 2014-15
decision following submission
from an environmental
auditor.
6. Percentage of CUTEP
25% in 2014-15
Risk-based strategies
Auditors are appointed
using the same criteria and
similar processes by 30
June 2015
Cooperation amongst
regulators
decisions exempt from
approval by EPA (that is,
decision made by the
auditor)
7. Harmonisation of auditor
appointment process with
NSW EPA (pilot project for
national harmonisation)
Performance measures 5 – 7 above complement and will extend
EPA’s 2013-14 audit reform achievements.
2
EPA, Approvals Review Final Report (publication 1521, April 2013), page 29, reform J.1
3
The Environment Protection and Sustainability Victoria Amendment Act 2014 was passed by
Parliament in early 2014. A new section 53F(1A) of the Act – which will take effect on
proclamation – will state that EPA ‘may issue or renew a permit to transport prescribed
waste or prescribed industrial waste for up to 5 years’.
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Environment Protection (Fees) Regulations 2012, Reg. 14 and Schedule 4, and Environment
Protection (Industrial Waste Resource) Regulations 2009, Reg. 22(2). EPA will work closely
with the Department of Environment and Primary Industries on these regulation
amendments.
3
Performance target 5 represents a further reduction in the time that
EPA takes to make a CUTEP decision. Although the target nominally
remains at 56 days, it now excludes the less complex CUTEPs
determined by auditors, which were part of the 2013-14 target. EPA is
committed to achieving target 5 in relation to CUTEPs submitted from
1 July 2014 onwards. To help achieve target 5, EPA will implement a
system to make faster initial assessments of CUTEP applications.
Similarly, performance target 6 is a significant extension on the 201314 SOE target (which was for 10% of CUTEP decisions to be made
by auditors). The target increases from 10% to 25% six months after
the introduction of EPA’s revised CUTEP policy and criteria.5 EPA will
conduct a quality assurance of the CUTEP decisions made by
auditors and consider whether this policy can be extended and the
target increased further in 2015-16.
Performance measure 7 relates to the harmonisation of
environmental auditor processes across jurisdictions. This work will
result in multiple benefits – increased efficiency, reduced costs,
equivalent standards and stronger relationships between the
regulators. Performance measure 7 requires bilateral harmonisation
between EPA Victoria and NSW EPA. It is a pilot project that will
inform any national harmonisation. The 2014-15 project will deliver
harmonised criteria and processes for auditor appointment (with
Victoria introducing written examinations), coordinated invitations for
new auditors across the two jurisdictions and co-representation on
selection panels for environmental auditor appointments.
I confirm that, in relation to performance measures 5 and 6, EPA will
set and publish new targets for the 2015-16 financial year by 31 July
2015.
5
EPA, Environmental auditor (contaminated land): Guidelines for issue of certificates and
statements of environmental audit (publication 759.2, February 2014)
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Quality of EPA guidance and information
Measure
Target
Good regulatory practice
element(s)
8. Quality of EPA’s guidance for
Establish and report on the
percentages of duty
holders that, in 2015-16
compared to 2013-14,
regard:
Compliance related
assistance and advice
duty holders
(a) EPA’s guidance
publications as accessible,
sufficient and consistent;
and
(b) the guidance contained
in EPA’s remedial notices
as clear and easy to
understand
9. Quality of information and
support for the general public
and for people who seek or
report information on the
activities of EPA and/or
Victorian environmental
issues, and for people
reporting pollution, litter and
smoky vehicles to EPA
Establish and report on the
percentages of the general
public, customers and
community stakeholders
that, in 2015-16 compared
to 2013-14, regard:
Accountability and
transparency
(a) EPA’s information and
support as accessible and
meaningful; and
(b) EPA’s promotion of its
compliance and
enforcement activities and
performance as effective.
10. Quality of information and
Establish and report on the
support for organisations
level of support that
with delegated powers under organisations with
the Act
delegated powers report
receiving from EPA to
deliver those delegated
functions, in 2015-16
compared to 2013-14
Accountability and
transparency; cooperation
amongst regulators; role
clarity
Performance measures 8 - 10 relate to the quality of EPA’s guidance
and information for duty holders and other external stakeholders.
EPA will establish benchmark results through analysis of its previous
outcomes social research results. This research is conducted by an
external research provider working with EPA experts and
researchers. It uses telephone and online surveys to collect feedback
from the general public, customers, community stakeholders,
business, government stakeholders, strategic stakeholders and
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environmental partners on a wide range of performance topics. The
feedback gathered on EPA’s services and activities is integrated with
internal EPA data on those services and activities. EPA will repeat its
outcomes social research in 2015-16 and compare the results. EPA
will also analyse the extent to which EPA’s activities and external
factors have contributed to both the 2013-14 and 2015-16 research
results.
EPA is committed to a range of activities in 2014-15 that will
contribute to improvements in EPA’s guidance and information.
These include updates to EPA’s guidance for duty holders,
implementing an internal quality assurance program to ensure our
compliance and enforcement actions are consistent and to the
highest standard, and working closely with co-regulators on the
assessment of approval applications and on regionally significant
issues and sites.
EPA’s analysis of the 2013-14 outcomes social research results will
be completed in late 2014. This will help to identify further actions to
improve EPA’s guidance and information in 2015-16.
Reporting
I confirm that EPA will:



include its SOE performance targets in its 2014-15 and 2015-16
Annual Plans
in relation to performance measures 1, 2, 5 and 6, set and publish
new targets for the 2015-16 financial year by 31 July 2015 and
publish them in its 2015-16 Annual Plan
report on the achievement of all of its SOE performance targets in
its 2014-15 and 2015-16 Annual Reports.
Yours sincerely
CHERYL BATAGOL
CHAIRMAN
__ /__ /2014
Att. – AELERT regulatory circumplex
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Attachment 1 – AELERT regulatory circumplex
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