CLEANER ENVIRONMENTS
SMARTER URBAN RENEWAL
MINISTERS’ FOREWORD
A cleaner Victoria presents a new and exciting opportunity for urban renewal.
In August 2014, Melbourne was voted the world’s most liveable city for the fourth consecutive year. This
achievement is in no small part attributable to the health of our environment and economic performance,
which are the envy of the world.
We intend to build on our already strong reputation by further improving the operation of Victoria’s planning
and environmental regulatory systems, to deal with the legacies of historic pollution and promote safe
redevelopment.
Cleaner Environments – Smarter Urban Renewal introduces a bold and comprehensive reform framework. This
collaboration between Victoria’s Planning and Environment portfolios embodies the Coalition Government’s
commitment to transform Melbourne’s vacant, derelict and polluted ex-industrial land into clean, safe sites for
commercial and residential development, to support Melbourne’s growth. Our two portfolios will continue to
work closely to implement this comprehensive four year program of reform.
Earlier this year, the Coalition Government committed to update the contaminated environment regulatory
and policy framework in the metropolitan planning strategy, Plan Melbourne. Through Cleaner Environments –
Smarter Urban Renewal, action is commencing in 2014 to facilitate the remediation of contaminated land and
deliver results on the ground for urban renewal.
Reforms to Victoria’s contaminated environment system are supported by $2.47 million of investment that is
directed to kick-starting urban renewal in priority precincts, such as Fishermans Bend, as well as providing
the Victorian community with a system that is easier to navigate and with improved access to information.
The Cleaner Environments – Smarter Urban Renewal reform framework delivers enhanced community health
and safety, reduced regulatory burden and greater market certainty and confidence for developers and the
community.
Together, the Planning and Environment portfolios will ensure that a new risk -based approach focuses on the
early identification of potential historic pollution issues and reduces red tape when a response to these issues
is required. Greater certainty and clarity about the level of risk and assessment necessary will enable land to
be safely redeveloped through various planning controls. Preliminary risk screening will b e introduced to
avoid unnecessary and costly audits where there is a low level of risk.
These changes will provide greater transparency and assurance for landowners, developers and the
community.
In making these changes, the Victorian Government is addressing longstanding concerns about gaps and
deficiencies in the environment and planning systems that were outlined in the Victorian Auditor -General‘s
2011 report Managing Contaminated Sites. Importantly, the new system will more effectively deploy the
expertise of the Environment Protection Authority and other agencies in delivering high environmental safety
standards.
Consultation will be an essential part of implementing these reforms. The government recognises the
importance of working in partnership with local government and industry to achieve our ambitious objectives
for cleaner environments and smarter urban renewal.
Cleaner Environments – Smarter Urban Renewal is an initiative that will align many interests and we encourage
stakeholders to contribute to implementing this new system to facilitate Melbourne’s growth and renewal.
The Hon Ryan Smith MP
Minister for Environment and Climate Change
The Hon Matthew Guy MP
Minister for Planning
GETTING THE BEST OUT OF URBAN RENEWAL
Preparing our state for future population growth means we need to explore opportunities for alternative sites
to be converted to new, higher value uses, that can build neighbourhoods and employment centres.
Redeveloped brownfield sites, such as those that have had a history of industrial activity, can play an
important role in providing new residential development within established suburbs and deliver significant
social, economic and environmental benefits for all Victorians.
But we need to manage this development safely and ensure that land is suitable for the proposed new use.
This means that where there has been a history of industrial or other polluting activity, risks to human health
and the environment are assessed and managed before redevelopment proceeds.
Victoria needs a modern and highly effective regulatory system to support the management and safe
redevelopment of these contaminated environments. The Victorian Government wants to make it easier to
unlock the value of brownfield sites for appropriate new uses, but not without a strong safety net to manage
any risk to the community.
The Cleaner Environments - Smarter Urban Renewal reforms are focused on dealing with past pollution and
ensuring the safe redevelopment of contaminated land with a history of industrial use. The prevention of
pollution continues to be a critical priority for government and focus for the Environment Protection
Authority.
Cleaner Environments - Smarter Urban Renewal is a comprehensive reform
program designed to strengthen risk management and improve safeguards while
helping to facilitate redevelopment opportunities across Victoria and within
metropolitan Melbourne.
The Victorian Government will update planning and environment statutory instruments to create an
integrated modern framework that is flexible and risk-based. Information to assist the community, decision
makers and system users will be easier to access. The Victorian Government will apply targeted support for
the safe redevelopment of priority renewal sites, and to build capacity for risk management by councils and
private landowners.
Our current system provides a good foundation for managing risk to the commu nity, with robust
requirements for independent sign-off on risk assessment and management, but it suffers from unclear and
overly burdensome processes as well as critical gaps that have emerged over time. It’s now time to sharpen
our processes to be smarter, more risk-responsive and accessible, to support Victoria’s growth aims.
The result will be a clearer, more consistent system that provides the community with greater as surance that
contaminated land has been safely redeveloped. For land owners and developers, the changes will provide
greater clarity and certainty of the requirements for assessment and remediation and the choices available to
manage costs and minimise time delays.
VISION:
Victoria has an efficient and effective framework for managing contaminated environments that facilitates
safe and sustainable urban renewal by:
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Making it EASIER to unlock the value of brownfield sites and return them to productive uses
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Harnessing redevelopment activity to create CLEANER environments
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Directing regulation and resources towards a SAFER environment.
REFORM DIRECTIONS
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Improved safeguards for human health and the environment
Reduced risks and costs to stimulate investment in urban renewal
Clear, workable roles and improved capacity
Strengthened transparency, accountability and strategic risk management
REFORM DIRECTIONS
Over the next four years, the government will pursue the reform proposals outlined below. These will capture
opportunities arising from redevelopment activity and ensure that land is safely redeveloped. The
government will apply a risk-based approach – working with key partners to identify unacceptable risks and
address these through a mix of remediation and management requirements, enforcement regimes and
information provision.
IMPROVED SAFEGUARDS FOR HUMAN HEALTH AND THE ENVIRONMENT
Risk management measures will be targeted to ensure that resources and regulatory safeguards are focused
on critical risks.
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Strengthened risk screening through the planning system to enhance protection from potential
contamination risks.
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Improved community information to help people manage exposure risks related to potential
contamination, with targeted information on safe practices, for example safe use of bore water and
growing vegetables in urban soil.
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Expanded Notification requirements to ensure that where expert assessments identify a serious risk
to human health, this is reported and put on the public record.
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Equipping landowners to understand and manage risks appropriately, with notice of audit conditions
in the Register of land, and encouraging prospective landowners to seek information thr ough a due
diligence checklist for home buyers and investors.
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Targeted identification of potentially high-risk sites by the Environment Protection Authority (EPA),
commencing with closed landfills and former service stations and dry cleaners, to ensure that these
are assessed and appropriately managed before redevelopment for a sensitive use.
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Developing local remediation and renewal plans for key localities to address critical contamination
risks and identify redevelopment opportunities.
REDUCED RISKS AND COSTS TO STIMULATE INVESTMENT IN URBAN
RENEWAL
Improved and clearer regulatory instruments will allow for risk-based, proportionate responses and avoid
unnecessary investment in assessment and clean up.
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Streamlined pathways for developers through changes to planning and environmental audit processes,
enabling fast-tracking of low-risk sites with clear sign-offs by EPA-appointed auditors.
Provide clear statutory expectations on clean up ‘suitable for the proposed use’, providing protection
for human health and the environment, as well as greater up-front certainty for investors and
developers.
Consideration of precinct and sub-regional requirements for groundwater clean up will allow for more
strategic and proportionate responses, while still managing unacceptable risks.
Investment in up-front precinct-based assessment and innovative precinct-scale approaches, and
more efficient regulation and support for safe and timely urban renewal in priority areas such as EGate and Fishermans Bend.
Targeted grant funding to assist with preliminary site assessment work, to attract investment for
redevelopment in areas of lower land value, and deliver social, environmental and economic
outcomes.
CLEAR, WORKABLE ROLES AND IMPROVED CAPACITY
Clearly defined roles and responsibilities for state and local government - recognising that local government
will continue to play a key role as decision maker but with targeted support to improve risk management.
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Improved guidance and training to support more consistent and efficient decision making by system
users and local government.
Ensure decisions are appropriately informed by clear technical advice, including through improved
and consistent approaches to risk screening and support for accreditation of assessors, red ucing
uncertainty for councils and costs and delays for developers.
Provide government funding for a ‘high performance team’ working with local government in key
urban renewal areas to support the roll out of streamlined assessment and remediation through land
use planning processes and deliver faster and more consistent processing.
Support for councils to review existing Environmental Audit Overlays and remove
these from low or no risk sites.
STRENGTHENED TRANSPARENCY, ACCOUNTABILITY AND STRATEGIC RISK
MANAGEMENT
Better integrated, coordinated system with improved access to whole-of-government information.
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Strengthened compliance and risk management safeguards with EPA providing single point
responsibility for enforcement of future audit conditions.
Centralised, searchable database on site assessment and remediation status of land, capturing system
performance data and providing critical information on risk to business, community, council decision
makers and other risk managers.
‘One stop shop’ providing whole-of-government information and integrated statutory instruments for
managing contaminated environments, making processes easier to navigate and generating ‘repeat
developers’.
Transparent performance measures and reporting arrangements to provide whole of system
accountability of both environmental and planning elements of the regulatory system , building
market and community confidence.
Strategic remediation planning and collaboration with industry, focused on long -term planning for
voluntary clean up of contamination and avoidance of future problems.
BROWNFIELD RENEWAL AND PLAN MELBOURNE
The new metropolitan planning strategy, Plan Melbourne, sets out the government’s vision that will guide the
city’s growth to 2050, with a particular focus on accommodating growth and change within activity centres,
employment clusters and urban renewal precincts close to jobs and public transport infrastructure.
Brownfields renewal is a key element of Plan Melbourne, which seeks to:
“facilitate the remediation of contaminated land, particularly on sites in developed areas of Melbourne with
potential for residential development, and bring the land to market sooner.”
Brownfield sites are those where previous land uses (most often for industrial purposes) have ceased and the
land is vacant, derelict and potentially contaminated. Brownfield sites can offer signifi cant redevelopment
opportunities, however, they typically require site assessment and remediation or risk management before
new development goes ahead.
Renewal of brownfield sites can generate significant social, economic and environmental benefits includ ing:
 enhancing neighbourhoods
 providing more housing choice in existing areas
 creating new recreational or green space
 reducing risk to human health through remediation or management works.
Redeveloped brownfield sites will play an important role in meeting the needs of Victoria’s growing
population by providing new residential development within established suburbs, with good access to public
transport and other infrastructure services.
In the United Kingdom, about 60 per cent of urban housing is now built on brownfield sites. In metropolitan
Melbourne there is potential for significant expansion in urban renewal activity.
Brownfield renewal and clean up programs in other jurisdictions demonstrate that attracting private
investment in redevelopment of vacant and disused contaminated sites is an effective strategy to ensure sites
are made safe for use. These provide best practice models which have informed the reform directions set out
for modernising Victoria’s contaminated environments framework.
Redeveloping vacant or underused land into residential and commercial properties or community spaces benefits
both the community and the economy, and improves our liveability.
(Photo)
Photo of Docklands Park. Source: Places Victoria
RENEWAL PRIORITIES
Plan Melbourne proposes a series of new urban renewal precincts where under-utilised land is available for
redevelopment to accommodate future housing needs close to transport and services. The Metropolitan
Planning Authority will work with stakeholders to unlock the capacity of these precincts across metropolitan
Melbourne and deliver high quality new neighbourhoods with a mix of residential, commercial, retail,
industry, transport and community facilities.
Priority renewal precincts include: E-Gate, Fishermans Bend, Arden-Macaulay, Footscray, East Richmond
Station/Cremorne, and the Monash and Sunshine employment clusters. The development of urban infill sites
and established urban renewal precincts, such as Docklands and Southbank, will also continue over the next
decade. In some instances, this renewal activity will involve former industrial sites and other potentially
contaminated land.
With Victoria’s strong projected population growth, regional cities will need to accommodate a greater share
of the population and meet their housing and employment needs. Regional Growth Plans developed for
Victoria’s key regional centres, including Geelong, Ballarat, Bendigo and the Latrobe Valley, identify the
competitive advantages of regions and regional cities and the broad transport directions and planning
arrangements needed to manage regional population growth and encourage investment and development.
In particular, the Regional Growth Plans will ensure that consideration of potential contamination is built into
local planning for future growth and identify a pipeline of renewal and infill opportunities in regional cities
and centres that optimises infrastructure investment and surplus government land. The Cleaner Environments
– Smarter Urban Renewal reform package will support these developments by facilitating redevelopment
activity and supporting local government planning for remediation and renewal.
Converting potentially contaminated brownfield sites to new, more sensitive uses requires careful risk
assessment and management. The proposed reform package will see a range of government and non government stakeholders work together to support safe redevelopment and maximise potential renewal
opportunities.
STREAMLINING PROCESSES IN MAJOR RENEWAL PRECINCTS
Large-scale, under-utilised former industrial sites present significant opportunities for redevelopment but
require careful management in terms of potential contamination.
The Environment Protection Authority is working with the Metropolitan Planning Authority an d Major
Projects Victoria to provide innovative regulatory solutions for major renewal precincts at E -Gate and
Fishermans Bend. It is anticipated that these projects will provide a basis for testing new risk -based
approaches to contaminated land and groundwater and a possible model for other brownfield renewal
precincts.
E-GATE
Detailed site assessment work already undertaken by Major Projects Victoria will facilitate early action to set
clear up-front requirements for remediation within the precinct. This will provide greater certainty for
potential investors and streamline remediation and management, reducing delays and holding costs.
FISHERMANS BEND
The government is investing $500 000 in 2014-15 in precinct-scale groundwater assessment and monitoring
at Fishermans Bend as a basis for establishing a precinct-based approach to the management of groundwater
contamination. The aim is to reduce the costs and time associated with groundwater investigation and
remediation. This will assist developers across the precinct by reducing delays, avoiding wasteful duplication
of investment in site by site groundwater assessments, and setting clear and realistic exp ectations for
developers on the requirements for groundwater remediation and management.
(Photo)
Photo of E gate freeway exit: Peter Glenane - Hi Vis Photography
GUIDING PRINCIPLES FOR MANAGING CONTAMINATION
The following principles underpin the reform directions identified for modernising Victoria’s system for
managing contaminated land, and will inform the implementation of reform proposals.
Risk-based system to focus resources and regulation on the likely risk to human health and the
environment.
This means better protection for the community and reduced red tape for developers because the
Environment Protection Authority (EPA) and councils will use proactive risk identification and risk screening
to target critical priorities.
Certainty on roles and responsibilities to provide greater clarity on government responsibilities and
ensure a transparent system that is accountable to users and the community.
This means local government decision makers will have improved guidance and system users and the
community can be confident of more consistent decision making and coordinated, whole -of-system risk
management. In particular, this means that EPA provides single point responsibility for enforcement of future
audit conditions.
Flexible processes to enable clear and proportionate pathways for managing risk.
This means developers can expect fast tracking for low-risk sites and process efficiencies from precinct-based
approaches, and the community can expect safeguards to be applied where high -risk sites are identified.
Informed decision making to equip individuals and businesses to make informed investment and risk
management decisions.
This means that individuals and businesses will have a single point of access to information, including tracking
system performance, and that information on contamination risks is designed to help them adopt safe
practices and manage financial risks.
WHAT IS A RISK-BASED APPROACH?
Risk-based pathways can ensure that resources are focused on sites that pose the highest risk to human health
and the environment, while avoiding unnecessary and costly remediation of low-risk sites.
A risk-based approach involves considering the likelihood and consequences of impacts, when making
decisions in relation to land that poses an actual or potential contamination risk. This means:
 focusing the system where there are potential risks and having robust approaches for land use
planning and risk assessment
 identifying when action is required to manage contaminated environments
 targeting resources, including private investment, to deal with unacceptable risks to human health and
the environment.
WHY DO WE NEED A RISK-BASED APPROACH?
Different remediation and management requirements are needed for different uses, taking into account the
different types of activities, exposure to soil or groundwater and the sensitivity of the occupants. For example,
a childcare centre will typically have very different requirements to an industrial or commercial site. As a
result requirements need to be designed to ensure that sites are suitable for their proposed use.
Risk assessment is fundamental to getting risk management right. Victoria has a well -established
system for expert assessment of contamination risks through EPA’s statutory audits and appointment of
auditors. Environmental audits by EPA-appointed auditors provide a clear and transparent mechanism for
deciding if contamination poses unacceptable risks to people, their property or the environment and making
judgements about how best to manage these risks.
THE IMPORTANCE OF RISK ASSESSMENT
Cleaning up all historically contaminated sites to levels suitable to all beneficial uses is not always technically
or economically feasible. Risk-based approaches are particularly important given the scale and nature of the
problem, the potential costs of clean up and the social and economic benefits arising from redevelopment.
The proposed reforms will build on the strengths of the existing statutory system to provide greater
consistency and quality assurance for decision makers, investors and the community.
CREATING AN EFFECTIVE FRAMEWORK FOR SAFE URBAN
RENEWAL
CURRENT SYSTEM
The current system has developed in an ad-hoc way since the 1980s and, as identified in recent reviews, there
are critical gaps and unclear or overly burdensome processes.
PROPOSED FRAMEWORK
The proposed reforms will address gaps and more effectively target priorities to provide Victorians with an
efficient and integrated system that delivers safe redevelopment of under-utilised and potentially
contaminated sites.
REFORM HIGHLIGHTS
Facilitating private sector investment in brownfields renewal
The Victorian Government is committed to reducing red tape and ensuring that the statutory framework
operates efficiently and effectively to support safe redevelopment of brownfield sites. Independent reviews
have identified that, in some areas, the current framework creates unnecessary regulatory burden. This will
be addressed through the reform process.
Recognising the social, economic and environmental benefits arising from brownfields renewal, the
government is investing in initiatives to attract and support private sector redevelopment activity.
Following the completion of the statutory reforms, the government will introduce a range of initiatives
designed to maximise the efficient operation of the system on the ground and ensure easier navigation for
system users.
Key initiatives include:
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$258 000 for a high performance team (beginning in 2015-16) to provide expertise for councils
dealing with priority contamination risks and renewal opportunities, delivering greater speed and
certainty of processes
$250 000 of targeted grant funding (from 2016-17) to assist with preliminary site assessment work,
to attract investment for redevelopment in areas of lower land value
$240 000 for local remediation and renewal plans (over 2015-16 and 2016-17) to support the
development of local plans to assist councils in strategic management of potential risks and to inform
private redevelopment activity.
Ensuring safe redevelopment
In capturing the flow on benefits to the community from conversion of brownfield sites to higher value uses,
the critical issue is ensuring that contamination does not pose unacceptable risks to human health and the
environment.
In particular, this means providing specific protections for sensitive uses such as housing or childcare centres.
Land use planning plays an important role in this by: restricting sensitive uses in some areas; and requiring
that potentially contaminated sites proposed for sensitive uses are assessed and contamination risks are
appropriately managed.
The Victorian Government will also work with local government to update land use planning instruments and
support local decision making to provide consistent and proactive risk management.
Key initiatives include:
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$950 000 for enhanced information systems (over 2015-16 and 2016-17) to improve community
access to information on contaminated land and safe practices, and to contribute towards the
development of an integrated, searchable database
Targeted identification of potentially high-risk sites by the Environment Protection Authority, to
ensure that these are assessed and appropriately managed before redevelopment for a sensitive use
$180 000 for training decision makers (beginning in 2015-16) to support the effective roll out of the
new framework.
APPLYING NYC BEST PRACTICE TO VICTORIA
In New York City (NYC), programs designed around voluntary (i.e. developer-driven) clean up are attracting
new investment in urban renewal, with high quality clean ups converting long term vacant lots in
disadvantaged neighbourhoods into affordable housing.
‘Speed and Certainty’
An innovative new Office of Environmental Remediation (OER) is driving clean up and renewal activi ty
throughout NYC. ‘Speed and certainty’ is identified as the formula for attracting private investment and
creating repeat developers. Establishing the requirements for clean up early in the process means that
developers can define the clean up schedule and budget. Rigorous standards build market confidence and
ensure that redeveloped properties are among the safest places in NYC to live and work.
In a typical year, OER enables around $2.25 billion in new private capital investment, over 500,000 square
metres of new building space, creating 2,200 permanent new jobs, 6,500 construction jobs and 1,000 new
units of affordable housing. This new economic activity is taking place on properties that have been vacant, on
average, for 18 years, with their renewal also delivering significant new tax revenues for the city.
Proposed changes to Victoria’s contaminated environments framework apply similar approaches aimed at
speed, certainty and improved safeguards, including:
 creating a high performance team working with decision makers for more effective and efficient
decision making
 undertaking preliminary risk screening to avoid unnecessary audits
 equipping landowners to understand and manage risks appropriately
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introducing the potential for up-front nomination of precincts where limited groundwater
remediation is required, to provide greater certainty and reduce delays.
ROLES AND RESPONSIBILITIES
The management of contaminated land and groundwater relies on a combination of statutory instruments
under the Environment Protection Act 1970 and the Planning and Environment Act 1987, under which the
Department of Transport, Planning and Local Infrastructure, Environment Protection Authority (EPA), local
councils and EPA-appointed auditors share accountability.
The Department of Environment and Primary Industries is responsible for coordinating the implementation
of this reform package.
Strengthening accountability and consistency in a shared delivery model
The reforms will provide for strengthened accountability and more consistent decision making by:
 ensuring that state and local government roles and responsibilities are more clearly defined
 establishing system performance measures
 providing improved guidance, training and expert advice for decision makers
 ensuring access to information for the community and key industry sectors.
The shared delivery model means that potential contamination risks can be factored into local land use
planning decisions and that these decisions are underpinned by independent exp ert advice.
Partners in the safe management and redevelopment of contaminated land and
groundwater include:
State and local government
 Department of Environment and Primary Industries – leading environmental policy development and
coordinating the reform process
 Environment Protection Authority (EPA) – environmental regulator with key compliance and
enforcement role, providing advice on managing risks to human health and the environment
 Department of Transport, Planning and Local Infrastructure – leading policy reforms for the planning
system
 Metropolitan Planning Authority – leading urban renewal policies and programs for the metropolitan
area and the delivery of Plan Melbourne, including management of the redevelopment of Fishermans
Bend
 Department of Health – providing advice to assist the environmental regulator, local government and
other stakeholders in managing potential community exposure risks related to contaminated
environments
 Major Projects Victoria – providing expert project delivery services, including for the redevelopment
of E-Gate
 Local Government – ensuring that land use planning decisions take account of potential
contamination risks
Industry professionals
 EPA-appointed auditors – providing independent expert advice through the statutory audit system
 Site assessors and other suitably qualified professionals – supporting private and public
understanding and management of risks
 Legal, finance and property development sector – supporting due diligence and financial risk
management by private landowners
Individuals and businesses
 Landowners and property development businesses – making investment decisions in relation to the
redevelopment of potentially contaminated land and complying with risk management requirements
associated with their properties
 Businesses or community organisations operating or holding sites with existing contamination –
managing liability risks associated with contamination
 Individuals and broader community – being informed about safe practices so they can reduce the risk
of potential exposure to contaminated land. In most cases this means knowing your backyard, and if
in doubt, growing vegetables in planting boxes
GROWING FOOD IN URBAN SOILS
Growing vegetables in your own garden or a community garden is a great way to get fresh and locally grown
food. In an urban environment, it is important to make sure that the soil is safe for food production.
The government is working in partnership with councils and community organisations to help gardeners
understand risks and management strategies for gardening in urban environments. Key products to be
delivered in 2014 include:
 guidance for land managers, including community garden managers and landowners, on their roles
and responsibilities when food is being grown in urban soils, being developed by the Environment
Protection Authority and Department of Health
 guidance for backyard gardeners in private residences (i.e. renters and owner occupiers), being
prepared by the Department of Health.
CONSULTATION AND COMMUNITY ENGAGEMENT
Consultation with local government, stakeholders and the Victorian community will be an
important part of reform implementation.
The initial focus will be on developing detailed changes to environment and planning statutory instruments.
This will include proposed changes to the audit system, the land use planning provisions, and compliance and
enforcement procedures.
Consultation will include stakeholder feedback in relation to specific issues, as well as formal consultation
processes to take place as part of requirements relating to the review of State environment protection policies
(SEPPs) for the management of contaminated land and groundwater.
(Photo)
Heller Street Park and Residences, Brunswick, by Six Degrees Architects: Photo: Patrick Rodriguez
This award winning architectural design utilised a disused landfill by remediating the contaminated land for
the development of medium density housing and a public park. The new space provides housing in proximity
to established infrastructure and creates a more open and habitable urban environment with an enhanced
sense of community .
IMPLEMENTATION SCHEDULE 2014-2018
The full reform package will be implemented over the next four years and involve a phased approach to
implementation and consultation.
Following changes to legislation and statutory instruments, a range of measures will be introduced to support
the efficient operation of the system on the ground and maximise benefits for the development sector and the
community. An overview of the phase one statutory reform processes, and associated indicative timelines, for
2014-16 is presented on page 22.
PHASE ONE 2014-2016
MODERNISE THE STATUTORY FRAMEWORK
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Complete review of the State environment protection policies (Prevention and Management of
Contamination of Land), and (Groundwaters of Victoria).
Complete amendments to Environment Protection Act 1970.
Update Ministerial Direction No 1 – Potentially Contaminated Land.
Update Environmental Audit Overlay (EAO).
PHASE TWO 2015-2018
STRENGTHEN CAPABILITY AND FACILITATE REDEVELOPMENT
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Equip industry and local government with skills and knowledge.
Develop local remediation and renewal plans.
Target grant funding to facilitate renewal of brownfield sites.
PHASE THREE 2016-2018
BUILD INFORMATION AND ENSURE ACCOUNTABILITY
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Develop ‘one stop shop’ access to updated, whole-of-government information.
Establish new compliance and enforcement systems.
Establish system performance reporting.
EARLY ACTION FOR SAFE AND EFFICIENT URBAN RENEWAL
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Interim amendments to EAO.
Precinct-based approaches for Fishermans Bend and E-Gate.
Build community information and risk awareness.
NEXT STEPS
PHASE 1 – MODERNISE THE STATUTORY FRAMEWORK
Changes to legislation and statutory instruments are the critical priority for action, commenc ing in 2014.
This will involve coordination of parallel strands of activity across planning and environment portfolios, with
the aim of having a new integrated framework in place in 2016.
KEY POLICY PROPOSALS FOR REFORM OF LEGISLATION AND STATUTORY
INSTRUMENTS
1.
Update Environmental Audit Overlay to better target risks
2.
More targeted use of the audit system in planning permit applications
3.
Review definition of ‘sensitive use’ and ‘potentially contaminated land’
4.
Clear, risk-based principles for assessment and remediation of contaminated environments
5.
Changed expectations for clean up of contaminated groundwater
6.
Strengthened compliance and enforcement
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Integrated environment and planning instruments
8.
Mandatory notification of serious health risks
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Transparent performance measures and reporting arrangements
10.
Accreditation of assessors
CONTAMINATED ENVIRONMENTS FRAMEWORK
PLANNING AND ENVIRONMENT ACT 1987
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Victoria Planning Provisions (VPP)
State Planning Policy Framework (SPPF)
Ministerial Direction No 1 - Potentially Contaminated Land
Environmental Audit Overlay (EAO)
General Practice Note - Potentially Contaminated Land
ENVIRONMENT PROTECTION ACT 1970
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Statutory environmental audit system
State Environment Protection Policy (Prevention and Management of Contamination of Land)
State Environment Protection Policy (Groundwaters of Victoria)
KEY POLICY PROPOSALS
1.
Update Environmental Audit Overlay to better target risks
Changes proposed to the Environmental Audit Overlay (EAO) are intended to provide for more proactive risk
management as well as avoiding unnecessary audits of low-risk sites. In particular, a new Preliminary Risk
Screening process is proposed to provide a consistent and robust tool (signed off by an EPA -appointed
auditor) to support risk screening by decision makers and provide greater transparency and assurance for
landowners, developers and the community.
Proposed reforms to be considered include:
1.1 Supporting informed application of the EAO when land is rezoned for sensitive use, including through
the proposed Preliminary Risk Screening process. This will provide a clear basis for council decision
making and avoid unnecessary application of the EAO to low risk sites.
1.2 Encouraging targeted application of the EAO to land already zoned for sensitive use where there is
potential or known contamination.
This would mean that there is clearer guidance for landowners on potential risk and ensures that
appropriate assessment occurs when redevelopment for a sensitive use is proposed. This will
complement activity underway within EPA, and by some councils, to identify potential high -risk sites.
1.3 Simplifying the removal of EAOs and encouraging councils to review existing EAOs, including by using
the proposed Preliminary Risk Screening process to identify low-risk sites.
To improve operation of the EAO in the short term, interim measures, including exemptions from the audit
requirement for specified works, will be introduced pending the coordinated revision of plan ning and
environmental instruments.
2.
More targeted use of the audit system in planning permit applications
The effective operation of the statutory audit system underpins the safe redevelopment of contaminated land
and groundwater. The Planning and Environment Act 1987 requires a Responsible Authority to consider any
significant effects the environment will have on a proposed use or development. Planning permit applications
for sensitive uses which might involve potentially contaminated land pose a particular challenge for councils
because they are required to consider whether an environmental audit is necessary.
The proposed Preliminary Risk Screening process will support risk-based screening of planning permit
applications where there is:
 a potentially contaminated site;
 a proposed sensitive use; and
 no EAO in place.
This Preliminary Risk Screening is intended to identify the need for further investigation including through an
environmental audit and to avoid unnecessary audits.
An important element of the reform package will be to consider appropriate specifications for a Preliminary
Risk Screening, including how it might be linked to the statutory audit system to avoid duplication and
facilitate assessment processes.
3.
Review definition of ‘sensitive use’ and ‘potentially contaminated land’
The definition of ‘sensitive use’ and ‘potentially contaminated land’ are important elements in risk -based
regulation of contaminated environments. They provide the basis for regulatory activity, in particular land use
planning decisions, to be appropriately directed to the critical risks to human health.
With regard to ‘sensitive use’, the Explanatory Note to Ministerial Direction No 1 highlights the risk to young
children where they are likely to be exposed to (and to ingest) soil. However, the extent of risk can vary
considerably, for example the potential risks for residential accommodation or a childcare centre on the upper
floor of a building with no access to the land, will be very different from a low density housing development or
childcare centre with surrounding garden and outside playspaces. These issues need to be considered in
framing the definition and appropriate guidance for decision makers.
Both the Victorian Auditor-General’s report, Managing Contaminated Sites (VAGO 2011), and the Potentially
Contaminated Land Ministerial Advisory Committee’s report (MAC 2012) identified the need to revise the
definition of ‘sensitive use’ in the planning instruments to include other potentially high -risk uses. The
reference to ‘sensitive use’ in the planning system will be reviewed in accordance with the recommendations
by the MAC, including concerns associated with the development of children’s play areas on potentially
contaminated land.
A broader review of the ‘sensitive use’ definitions will also be undertaken to consider human health risk in the
context of both the Victoria Planning Provisions and the SEPP (Prevention and Management of Contamination
of Land). The broader review will also have regard to the definition of ‘potentially contaminated land’ which is
referenced in Ministerial Direction No 1 and the Planning Practice Note as a trigger for risk management. The
review will enhance consistency across planning and environment instruments with respect to these
definitions, to support effective decision making by planners as well as application in other regulatory or risk
management contexts.
4.
Clear, risk-based principles for assessment and remediation of
contaminated environments
The key considerations for dealing with serious risks from contaminated soil and groundwater are to manage
risks for the proposed use and to avoid unacceptable off-site impacts. This focus ensures that regulatory effort
and investment is directed at safe redevelopment of sites, noting ongoing regulatory activity will be important
to ensure that future generations do not inherit further contamination.
4.1 The SEPP (Prevention and Management of Contamination of Land) and SEPP (Groundwaters of
Victoria) will be reviewed in parallel to develop consistent, risk-based approaches to legacy
contamination. These reviews will seek to apply the principle of ‘suitable for the proposed use’, with
clear requirements guiding the management of off-site risks. This will involve a formal statutory
review process, involving detailed consultations with expert practitioners and the broader
community.
4.2 The reframed policies are intended to match the practical demands of risk management and to provide
for:
i. clearer direction to practitioners and decision makers to reduce delays and improve consistency
across the system
ii. greater certainty up-front for developers regarding the policy expectations for clean up ‘suitable for
the proposed use’
iii.choice for site owners based on their redevelopment intentions – i.e. where there is a specific
development proposal, remediation requirements can take into account the proposed use and built
form, but developers may seek to keep their redevelopment options open by remediating so that the
site is suitable for a range of future uses
iv.robust mechanisms for compliance and community information that will build confidence in risk
management approaches within industry and the community.
4.3 Alongside the reframed policies, the statutory audit system will be reviewed to support t he more riskbased focus. In particular, there will be consideration of how audit processes can be clarified to:
i. recognise that the main statutory objective is the completion of a Statement of environmental audit
ii. focus on the suitability of the site for the proposed use (where known) and management of off-site
impacts, with the auditor able to determine which beneficial uses are relevant to the existing and
proposed use or to off-site impacts
iii. allow EPA-appointed auditors to eliminate consideration of certain impacts associated with land
use scenarios and beneficial uses that are not proposed to be realised, and to focus on the specific
proposed site use as presented in the land use planning application
iv. recognise that the scope of audits need only target and assess contaminants that would be likely to
affect the beneficial uses in the current and future land use setting and potential off -site impacts.
5.
Changed expectations for clean up of contaminated groundwater
A new policy approach is proposed for managing contaminated groundwater. While the existing system
ensures that unacceptable risks to human health and the environment are assessed and managed, a range of
new considerations are proposed for determining appropriate environmental outcomes and extent of clean
up, weighing the costs of clean up and the benefits to be derived from clean up.
The intention of the proposed changes is to provide for a more strategic approach to risk -based assessment
and clean up of contaminated groundwater.
In particular, the present system considers groundwater on a site by site basis. A more strategic approach is to
look at groundwater at a precinct or sub-regional scale and, as part of that process, to address the likelihood
of a beneficial use being realised. For example, this would take into account the need to protect groundwater
as a supply of drinking water in urban areas, when there is cheaper, reliable reticulated water for that
purpose.
These changes are proposed as a practical response that recognises:
•
groundwater is often not confined within an individual site, with off-site impacts being an important
issue for consideration
•
there are efficiencies in providing for precinct and sub-regional scale approaches
•
there are significant levels of historic contamination of groundwater in urban areas but in general this
does not appear to pose significant risk to human health
•
the technical difficulties and high costs associated with groundwater clean up
•
the groundwater resource is unlikely to be used in some settings because of the availability of lower
cost, better quality alternatives (for example, reticulated water).
The review of the SEPP (Groundwaters of Victoria) will ensure risks are continued to be managed to protect
human health.
In addition, the review will consider the appropriate extent of clean up required to address risks to the
environment. For example, in situations where highly modified ecosystems are being impacted by a number of
sources of pollution, there may be little chance that groundwater remediation will improve water quality or
environmental outcomes. A further issue for consideration is where there is a limited requirement for
groundwater use, for example, urban areas with access to reticulated water and limited require ment for stock
watering.
The SEPP review will also consider whether changed requirements for clean up of contaminated groundwater
should be implemented on a regional basis (i.e. for metropolitan Melbourne), taking into account the specific
groundwater conditions and water supply options. In particular, there would be benefits in the policy
providing for up-front nomination of precincts or regions where limited groundwater remediation is required.
This would provide greater clarity and certainty for auditors, decision makers, landowners and the
development industry.
Specific options under consideration include:
5.1
Interim measures for high priority renewal precincts – Precinct-scale assessment of
groundwater contamination can be used as a basis for the EPA to apply an up-front zone setting clear
clean up criteria and requirements across the precinct. This is being proposed as an option to facilitate
early action at E-Gate and Fishermans Bend.
5.2
Developing a new approach to groundwater risk management for metropolitan
Melbourne – The SEPP review process will investigate the potential for a similar approach to be
applied to metropolitan Melbourne and other urban areas. This might involve application of an
instrument similar to the Groundwater Quality Restricted Use Zone (GQRUZ) across the entire
metropolitan area that specifies expectations for assessment and risk management/clean up, including
setting aside particular beneficial uses in urban areas. At a minimum, these expectations would
include: dealing with unacceptable risks to human health (e.g. vapour risks) and any significant or
intensified impact on surface waters; and removal of sources of contamination, such as underground
petroleum storage tanks.
The SEPP review will also consider the need for information systems to capture and provide appropriate
information on identified groundwater contamination, to avoid risks to potential future users of groundwater
or site works (for example, dewatering an excavation).
Strategic groundwater resource allocation and management decisions will remain the domain of the rural
water corporations in accordance with the Water Act 1989.
6.
Strengthened compliance and enforcement
To address concerns about gaps and weaknesses in compliance with audit conditions identified in the
Auditor-General’s 2011 report, Managing Contaminated Sites, it is proposed that EPA be assigned single point
responsibility for enforcement of all future audit conditions. This will draw on EPA’s established track record
in targeted, risk-based enforcement and compliance monitoring, and will also contribute to consolidated
reporting on system performance.
Key issues to be considered, in consultation with the local government sector and other stakeholders, include:
i. scope of councils’ responsibilities and mechanisms for recording statement conditions
ii. need for further examination of existing statements with conditions and Section 173 agreements, as
a basis for determining options for their ongoing management
iii. formal notice requirements to current and future landowners of their ongoing obligations (i.e.
where some level of ‘managed’ contamination remains onsite), for example through the Register of
land
iv. establishment by EPA of a single, uniform approach with appropriate compliance checks, integrated
data management and reporting.
7.
Integrated environment and planning instruments
Coordinated policy development through to 2015-16 will ensure that the review of environment and planning
instruments delivers an integrated system with clear roles, responsibilities and accountabilities.
This process will continue to be led by DEPI, in partnership with DTPLI and EPA.
The development of an integrated system will also be pursued through:
i. coordinated review of the State Planning Policy Framework and Victoria Planning Provisions
ii. updated and integrated guidance for system users providing consistent advice and ‘linked up’ access
to all relevant statutory instruments
iii. new integrated database and ‘one stop shop’ online portal providing a single point of access to the
statutory system. The portal will provide comprehensive access to technical guidance, community
information, system performance data and other information related to contaminated environments.
8.
Mandatory notification of serious health risks
Current notification requirements in the Environment Protection Act 1970 are designed to address risks from
an ‘imminent environmental hazard’. This notification requirement is based on expert assessment and
therefore provides authoritative and reliable information. It is also focused on the identification of an actual
exposure risk. However, the current notification requirements do not capture in a timely manner, if at all,
where there is an identified exposure risk which involves longer term, cumulative hazards. While these
situations are likely to be very small in number, they represent a significant risk.
Strengthening protection of human health from risks associated with potentially contaminated land will
involve a range of interventions, including: improved community information; targeted identification of high risk sites; proactive application of the EAO; and changes to statutory requirements. In part icular, the following
proposals have been identified for further consideration as a means of improving the effectiveness of the
current notification requirements under the Environment Protection Act 1970.
8.1 Notification requirements that are clearly framed to include all contamination assessed as posing a
serious risk to human health – i.e. both imminent hazards and where the danger is serious because
there is cumulative exposure over the longer term. Detailed definitions would need to be developed to
support these proposed changes and guide expert decision making. The formulation of the notification
trigger will require further consideration, including detailed technical advice, and appropriate
stakeholder consultation.
8.2 Clear protocols to ensure that appropriate responses and communication of information occur
without delay when serious risks are identified. A range of options for responding to Notifications will
be considered, including:
i. persons/properties affected and other relevant authorities (e.g. council/s) being notified
ii. affected properties being placed on the proposed new integrated database
iii. relevant local council considers application of an Environmental Audit Overlay where the land is
zoned for a sensitive use, to ensure that no new sensitive use occurs without further assessment and
appropriate remediation or risk management conditions being applied to the site
iv. EPA considering issuance of a clean up or pollution abatement notice to the site owner
v. EPA and/or the relevant local authority liaising with persons affected to identify options for site
remediation or risk management. The Department of Health supporting EPA, other government
landowners or the relevant local authority (as required) in the provision of risk communi cation
advice and information to the potentially affected community.
8.3 Current notification requirements apply only to EPA-appointed auditors. Consideration is also being
given to extending a similar requirement for notification to assessors. Further con sideration of this
proposal will involve detailed consultation with the industry.
9.
Transparent performance measures and reporting arrangements
Regular and transparent reporting of system performance is fundamental to improving accountability and
building industry and community confidence. Key indicators of system activity and service delivery will be
identified as part of the implementation of statutory changes and design and development of the proposed
new integrated database. This will include consideration of the requirement for any statutory reporting
requirements dealing with the performance of the system.
Key elements to be considered include: extent and distribution of Environmental Audit Overlays; assessment
and audit activity; status reports on audits started and time taken for completion; numbers of audits with
Statements or Certificates; sites with ongoing audit conditions requiring enf orcement activity; and numbers of
notifications of serious dangers to human health.
The proposed database will provide a critically important mechanism for measuring and monitoring system
performance, noting that this capacity will be developed over the medium term.
10.
Accreditation of assessors
Alongside the proposed changes to the statutory framework, the government is considering the potential for
building industry and community confidence through support for accreditation processes. The accreditation
of assessors, and other suitably qualified professionals, will provide clarity on sources of technical advice (in
addition to EPA-appointed auditors). This will reduce uncertainty and potential risk for council decision
makers and contribute to improved processes for developers.
In addition to the government exploring options for accreditation, there will be fur ther consideration of the
role of accredited assessors in the system, including the potential for EPA and councils to recommend the use
of accredited assessors for some purposes.
OVERVIEW OF STATUTORY REFORM PROCESSES: 2014-16
Indicative timing for the further consideration and development of proposed reforms to the statutory
framework.
LEGISLATION, STATUTORY INSTRUMENTS AND GUIDANCE
DOCUMENTS PROPOSED FOR REFORM
Interim amendments to Ministerial Direction No 1
and Environmental Audit Overlay
Precinct-based groundwater approaches
RESPONSIBLE
AGENCY
INDICATIVE
TIMING
DTPLI
2014
EPA
From late 2014
SEPP (Prevention and Management of Contamination of
Land)
DEPI/EPA
Review commences 2014
Community consultation
due June/July 2015
Completion 2016
SEPP (Groundwaters of Victoria)
DEPI/EPA
Review commences 2014
Community consultation
due June/July 2015
Completion 2016
Environment Protection Act 1970 amendments
DEPI/EPA
Completion 2016
Victoria Planning Provisions, including State Planning
Policy Framework and Environmental Audit Overlay
DTPLI
From end 2015
(following DEPI and EPA
reforms)
DTPLI guidance, including Ministerial Direction No 1
and Planning Practice Note
DTPLI
From end 2015
(following DEPI and EPA
reforms)
New EPA guidance materials
EPA
Commencing 2016
Further detailed advice for stakeholders and the general community on the timing of government consultation
processes will be provided at www.depi.vic.gov.au/cleaner_environments
If you would like to provide feedback on the reform directions and policy proposals outlined in this document
please email cepolicyreview@depi.vic.gov.au
Authorised and published by the Victorian Government,1 Treasury Place, Melbourne.
Printed by Impact Digital, Brunswick
September 2014
Accessibility
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This document is also available in PDF and Word format on the internet at
www.depi.vic.gov.au/cleaner_environments
ISBN 978-1-74146-237-1 (print)
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