Minister for Environment
and Climate Change
Ref:
MBR024783
File:
EP/10/3444
“*MBR024783*”
8 Nicholson Street
East Melbourne Victoria 3002
Australia
PO Box 500
East Melbourne Victoria 8002
Australia
Telephone: +61 3 9637 8890
Facsimile: +61 3 9637 8100
DX 210098
Ms Cheryl Batagol
Chairman
Environment Protection Authority
Level 3, 200 Victoria St
CARLTON VIC 3053
Dear Ms Batagol
MINISTERIAL STATEMENT OF EXPECTATIONS - STAGE TWO
I am pleased to provide you with this Statement of Expectations (SOE) for the Environment Protection
Authority (EPA). This SOE applies for the period 2014-15 and 2015-16, or until otherwise amended. It
is the successor of my SOE dated 26 March 2013, which set performance measures and targets for
2013-14.
Improving regulatory practice: the administration and enforcement of regulation
This SOE sets out my expectations of EPA’s contribution to the government’s program to reduce red
tape affecting businesses, not-for-profit organisations, government service providers and households
by promoting greater efficiency and effectiveness in the administration and enforcement of
regulation.
As Minister for Environment and Climate Change, I am responsible for administering the Environment
Protection Act 1970 that affects businesses and the broader Victorian community. This SOE should be
read within the context of the objectives, obligations and functions outlined in this Act.
This SOE outlines key governance and performance objectives and targets aimed at improving
regulatory practice, improving businesses regulatory experience and reducing the cost to business and
the community.
Demonstrating good regulatory practice
I expect EPA to demonstrate good regulatory practice in relation to all of the following elements – role
clarity, cooperation amongst regulators, stakeholder consultation and engagement, accountability and
Privacy Statement
Any personal information about you or a third party in your correspondence will be protected under the provisions
of the Information Privacy Act 2000. It will only be used or disclosed to appropriate Ministerial, Statutory
Authority, or departmental staff in regard to the purpose for which it was provided, unless required or authorised by
law. Enquiries about access to information about you held by the Department should be directed to the Privacy
Coordinator, Department of Environment and Primary Industries, PO Box 500, East Melbourne, Victoria 8002.
transparency, clear and consistent regulatory activities, risk-based strategies, timeliness and
compliance related assistance and advice1.
More specifically, in its use of risk-based strategies, I expect EPA to be able to justify how it is
allocating its efforts, to have data that supports how it has allocated resources, to actively promote its
activity to key stakeholders, to promote and justify its application of risk-based sanctions and to use
risk to inform its requests to industry for data and information. I expect that all reasonable steps are
made to minimise the risk of environmental harm whilst acknowledging that the regulator can never
eliminate it.
In relation to timeliness, I expect EPA to clearly communicate the timelines for its processes to duty
holders and the community, to avoid duplication and align its timelines as far as practicable with other
regulators. EPA needs to avoid unnecessary delay costs and business opportunity costs for duty
holders.
EPA must continue to work closely with, and learn from, its regulator peers and partners. It is my
expectation that EPA will participate in and encourage cross jurisdictional programs, share data and
intelligence, and aim to collectively improve businesses’ regulatory experience. I expect it to dedicate
effort to sharing, learning, and clarifying overlaps and gaps with its regulator peers.
As part of being accountable and transparent, I expect that EPA will clearly communicate its decisions
and plans, including the reasons for its statutory decisions.
I also expect EPA to provide clear and effective compliance related assistance and advice to duty
holders. This includes providing duty holders with practical examples of what compliance looks like,
targeting education and support materials to areas of need and for industries that are the focus of
compliance inspections, and ensuring that regulatory officers provide consistent and appropriate
compliance advice.
I further expect EPA to be clear on the scope and boundaries of its role, and to have the capacity and
quality checking processes to ensure it is fulfilling its role. EPA needs to clearly understand and
communicate how it intersects and works with other regulators.
Based on consultation with EPA and the Department of Environment and Primary Industries, I have
identified opportunities that will illustrate EPA’s commitment to these elements of good regulatory
practice.
1
These 8 elements of good regulatory practice are outlined in Department of Treasury and Finance, Statement
of Expectations Guidelines (March 2014).
MBR024783
2
Measure
Target
Good
regulatory
practice element(s)
Approvals reform
1. Pilot new approach to Pilot launched by early 2015
providing earned autonomy
to high performing EPA
licensees
Risk-based
strategies
2. Periodic reviews of the Prioritisation framework and Risk-based
currency and effectiveness of procedures
developed
and strategies
EPA licence conditions
reviews of licences commenced by
30 June 2015
3. Publication of EPA works Published for all works approval Accountability
approval
summary decisions from 31 December 2014 transparency
assessment reports
and
4. Extend maximum duration of Five year permits available by 30 Risk-based
permits
to
transport June 2015
strategies
prescribed
waste
or
prescribed industrial waste
from 12 months to five years
Audit reform
5. Time taken by EPA for a clean 90% within 56 days in 2014-15
up to extent possible (CUTEP)
decision following submission
from
an
environmental
auditor.
Timeliness
6. Percentage
of
CUTEP 25% in 2014-15
decisions
exempt
from
approval by EPA (that is,
decision made by the auditor)
Risk-based
strategies
7. Harmonisation of auditor Auditors are appointed using the Cooperation
appointment process with same
criteria
and
similar amongst regulators
NSW EPA (pilot project for processes by 30 June 2015
national harmonisation)
MBR024783
3
Measure
Target
Good
regulatory
practice element(s)
Guidance and information
8. Quality of EPA’s guidance for Establish and report on the Compliance related
duty holders
percentages of duty holders that, assistance
and
in 2015-16 compared to 2013-14, advice
regard:
(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 Accountability
percentages of the general public, transparency
customers
and
community
stakeholders that, in 2015-16
compared to 2013-14, regard:
and
(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
support for organisations with
delegated powers under the
Act
Establish and report on the level
of support that organisations with
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
In developing actions to achieve these improvements and targets, EPA is expected to consult with
business and the broader community as appropriate.
In relation to performance measures 1, 2, 5 and 6, I expect EPA to set and publish new targets for the
2015-16 financial year by 31 July 2015.
MBR024783
4
Reporting
Reporting on your progress to achieve these SOE performance targets should be undertaken in the
context of annual financial reporting to avoid dual reporting streams. As part of annual reporting,
regulators are expected to report on:
• current baseline levels for performance targets set in this SOE; and
• activities to be undertaken to reach the performance targets and improvements set out in this
SOE.
I also expect that these SOE performance targets will be incorporated into EPA’s Corporate Plan, and
this SOE should be published on EPA’s website upon receipt.
I expect that within three months of receipt of this letter, EPA will respond to this SOE, outlining how
it intends to achieve the performance improvements and targets set in this SOE. This response should
include details of the specific activities that will be undertaken by EPA.
I look forward to seeing EPA continuously working towards achieving best practice in the
administration and enforcement of regulation.
Yours sincerely
THE HON RYAN SMITH MP
Minister for Environment and Climate Change
MBR024783
5