COMMONWEALTH OF AUSTRALIA NEW SOUTH WALES GOVERNMENT MEMORANDUM OF UNDERSTANDING Between: the Commonwealth of Australia (Commonwealth) And New South Wales 1 Background Context A. Under the Intergovernmental Agreement on the Environment 1992 (IGAE) and Council of Australian Governments’ Heads of Agreement on Commonwealth and State Roles and Responsibilities for the Environment 1997, the Parties committed to working together across shared responsibilities to protect and conserve Australia’s environment. B. Both the Commonwealth and New South Wales are committed to cooperative efforts to strengthen intergovernmental cooperation on the environment and to minimise costs to business while maintaining high environmental standards. Purpose C. The purpose of the MoU is to set out the agreed arrangements that will be pursued by the Commonwealth and New South Wales to deliver a one stop shop for environmental approvals under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) removing duplication in assessment and approvals processes, while maintaining environmental outcomes. D. This MoU is not a legal agreement. However, both Parties commit to using their best endeavours to achieve its purpose. Objects E. The objects of the assessment and approvals agreements will be to: a. Ensure high standards are maintained for the protection of the environment and, in particular, matters of national environmental significance (NES); b. Promote the conservation and ecologically sustainable use of natural resources; c. Ensure an efficient, timely and effective process for environmental assessment and approval of actions; and d. Remove unnecessary duplication in the environmental assessment and approvals processes of the Commonwealth and New South Wales. 2 Roles F. Consistent with the objects of the MoU, New South Wales will become responsible for assessing projects for the purpose of the EPBC Act to reduce duplication between jurisdictions, and – within 12 months – approving projects, when an approval bilateral agreement has been signed. G. Consistent with the objects of the MoU, the Commonwealth will take a more strategic approach to environmental protection and assurance when an approval bilateral agreement has been signed. Provisions 1. Parties 1.1.1 The Parties to this MoU are the: a. Commonwealth of Australia represented by the Prime Minister and the Commonwealth Minister for the Environment (Commonwealth); and b. New South Wales represented by the Premier and the New South Wales Minister for Planning and Infrastructure(New South Wales). 2. Standards 2.1.1 In developing an agreement to integrate Commonwealth and New South Wales environmental assessment and approval processes, the Parties agree that maintaining EPBC Act standards will be the basis for development of agreements - ensuring strong and effective environmental outcomes and providing legal certainty for proponents. 2.1.2 In developing and implementing agreements as outlined in this MoU, the Parties agree that to ensure that environmental standards are maintained: a. New South Wales will not act inconsistently with relevant Commonwealth EPBC Act statutory guidelines, plans and policies in its decision-making; and b. The Commonwealth will consult with New South Wales before amending or adopting guidelines, plans and policies. 3. Consultation 3.1.1 The Parties acknowledge the importance of working with stakeholders and the community to develop the new arrangements and to build confidence in the one stop shop agreements and maintenance of high environmental outcomes. 3 4. Accrediting Assessments 4.1.1 Within 6 months, the Parties will conclude a comprehensive assessment bilateral agreement to accredit New South Wales to undertake a single assessment process for both Commonwealth and New South Wales purposes. 4.1.2 The Parties agree the goal is to lift the use of single accredited assessment processes to 100 per cent, where New South Wales undertakes comprehensive environmental assessments that meet EPBC Act standards. 4.1.3 When undertaking assessments as part of any accredited authorisation processes, New South Wales will ensure that matters of NES are separately identified and assessed, taking into account Commonwealth guidelines, plans and policies. 4.1.4 The assessment bilateral agreement will include administrative procedures and arrangements to ensure that assessment of projects is undertaken as efficiently as possible, with regular oversight by officials, in order to minimise costs to both Parties and industry. These procedures and arrangements may include but not be limited to: a. For proponents: Agreed information requirements; Single assessment reports and proposed conditions; and Single public consultation. b. For the Parties: An agreed action plan for streamlining assessments; Information exchange and data sharing within stipulated timeframes; Exchange or placement of staff, as required; Referral arrangements that include early consultation; Identification of project contact officers and ongoing project liaison arrangements; Commitment to assessment schedules for each project with clear timeframes and milestones; Public notification responsibilities; Monitoring compliance with conditions; and Conflict resolution. 4 5. Accrediting Approvals 5.1.1 The Parties will pursue a comprehensive approvals bilateral agreement to accredit New South Wales to undertake approvals under the EPBC Act, to be concluded by 18 September 2014. The Parties will seek to have an approvals bilateral agreed in principle by the end of April 2014, followed by the statutory consultation period. 5.1.2 The Parties agree that the broadest range of approvals will be pursued under an approvals bilateral agreement. 5.1.3 The agreement will include a process of regular review. There will be: a. A comprehensive review after 12 months of the operation of the agreement and the outcomes achieved, and periodic review after that; b. A process to ensure that when proponents first seek regulatory approval from either the Commonwealth or New South Wales, there is certainty about whether the assessment or approval bilateral agreement will apply – particularly during the negotiation process; c. Any accredited process will ensure that any decisions proposed by New South Wales will result in at least equivalent protection for matters of NES, and that New South Wales decision-makers will not act inconsistently with relevant EPBC statutory guidelines, plans and policies in considering decisions under an accredited process; d. Appropriate assurance arrangements will be an important part of the approval bilateral agreement; e. In the interim, and in any circumstances where approval responsibility under the EPBC Act remains with the Commonwealth, the Parties commit to working to develop joint protocols to minimise the need for specific conditions to be applied by the Commonwealth over and above those applied by New South Wales as part of its state approval process; and f. When an approval bilateral agreement is in place, the parties will agree an approach to managing the transition of projects under assessment at that time. 5 6. Additional administrative streamlining 6.1.1 To complement the objects of this agreement, New South Wales will continue to streamline its assessment and approval processes while maintaining environmental standards. New South Wales will engage the Commonwealth on these efforts, and report to the public on progress. 6.1.2 The following improvements will be pursued administratively by the Parties, while the aforementioned negotiations progress: a. Both Parties will take steps to improve the efficiency and effectiveness of their own assessment processes to the greatest extent possible; b. The Parties agree to provide greater up-front guidance to industry, and will work towards publishing standard information requirements and outcome-focused conditions for high priority sectors; c. The Commonwealth agrees to use a single assessment report, where New South Wales has undertaken a comprehensive environmental assessment. In addition, the Commonwealth agrees to use the proposed conditions provided by New South Wales and, to the greatest extent possible, will avoid imposing additional conditions when making approval decisions under the EPBC Act; d. The Commonwealth and New South Wales undertake to meet to the greatest extent possible statutory timeframes; e. For projects where further conditions are imposed by the Commonwealth, additional to those imposed by New South Wales, the Parties agree to provide a single document that contains all the conditions of approval for that project imposed by both jurisdictions; and f. The Parties agree to ensure that wherever conditions of approval are imposed, they are outcome-focused and strictly necessary to maintain environmental standards. 6.1.3 The Parties agree to pursue active, joint project management for major projects while both Commonwealth and state assessment and approval responsibilities are involved. 6 7. Use of strategic assessments 7.1.1 The Parties agree to finalise the strategic assessments of a Biodiversity Plan for Coal Mining in the Upper Hunter Valley NSW and a Program for protection of matters of national environmental significance in the Lower Hunter Region and to progress approval of classes of actions under these strategic assessments. 7.1.2 The Parties agree to work towards the development of an agreed priority list for existing and future strategic assessments in New South Wales by December 2013. 8. Future cooperation 8.1.1 Both Parties will each identify senior officials responsible for leading negotiations to progress the intention of this MoU. 8.1.2 To support any accredited arrangement, the Parties will identify agreed areas of cooperation including: a. a detailed implementation plan that is negotiated and agreed by all parties to be developed; b. exchanging data and joint analysis of environmental conditions and trends; and c. coordinating efforts to address adverse trends for matters of NES, for example by identifying options to improve the effectiveness of existing investment in environmental actions, land management and policy settings. 8.1.3 Under any agreement made, the Parties will ensure there are agreed arrangements for greater information sharing, consultation and dispute resolution, including through the use of governance arrangements that promote strong communication and cooperation. 7 Execution Page EXECUTED as a Memorandum of Understanding SIGNED for and on behalf of the Commonwealth of Australia as represented by Prime Minister Commonwealth Minister for the Environment Name (print) Name (print) Signature Signature Date Date 8 SIGNED for and on behalf of New South Wales as represented by Premier of NEW SOUTH WALES NEW SOUTH WALES Minister for Planning and Infrastructure Name (print) Name (print) Signature Signature Date Date 9