COMMONWEALTH OF AUSTRALIA STATE OF SOUTH AUSTRALIA MEMORANDUM OF UNDERSTANDING Between: the Commonwealth of Australia (Commonwealth) And State of South Australia 1 COMMONWEALTH OF AUSTRALIA STATE OF SOUTH AUSTRALIA Background Context A. Under the Intergovernmental Agreement on the Environment 1992 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 South Australia 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 South Australia to deliver a one-stopshop for environmental approvals under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) removing duplication in assessment and approvals processes, while ensuring the objects of the EPBC Act are met for matters of National Environmental Significance (NES). D. This MoU is not a legal agreement. However, both Parties commit to using their best endeavours to achieve its purpose. Objects E. Consistent with the objects specified in section 44 of the EPBC Act, the objects of this MOU and the assessment and approvals agreements will be to: a. Ensure, high standards and outcomes are maintained for the protection of the environment and, in particular, matters of NES; b. Promote the conservation and ecologically sustainable use of natural resources consistent with relevant legislation; c. Ensure the adoption of best practice regulatory processes for achieving 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 South Australia. 2 COMMONWEALTH OF AUSTRALIA STATE OF SOUTH AUSTRALIA Roles F. Consistent with the objects of the MoU, South Australia will become responsible for: a. Assessing projects for the purpose of the EPBC Act to reduce duplication between jurisdictions; and b. Approving projects when an approval bilateral agreement has been signed and implementation milestones as may be specified in the agreements are reached. 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. H. The Parties agree to consider options such as the sharing of information and expertise to facilitate South Australia fulfilling its assessment and approval functions. 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. The State of South Australia represented by the Premier. 2. Standards 2.1.1 In developing an agreement to integrate Commonwealth and South Australian environmental assessment and approval processes, the Parties agree that: a. Maintaining EPBC Act risk and outcome-based standards will be the basis for development of agreements to ensure strong and effective environmental outcomes and provide legal certainty for proponents; and b. Except where required to meet EPBC Act outcome-based standards, or to enhance efficiency and provide certainty for proponents, it is their intention that minimum changes will be made to state processes for the purposes of this reform. 2.1.2 In developing and implementing agreements as outlined in this MoU, the Parties agree that to ensure that environmental standards are maintained: 3 COMMONWEALTH OF AUSTRALIA STATE OF SOUTH AUSTRALIA a. South Australia will not act inconsistently with relevant Commonwealth EPBC Act statutory guidelines, plans and policies in its decision-making; and b. The Commonwealth will meaningfully consult with South Australia before amending or adopting guidelines, plans and policies. The parties will agree to arrangements for ongoing governance that will include processes for this consultation to occur. 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. 4. Accrediting Assessments 4.1.1 By March 2014, the Parties will agree a comprehensive assessment bilateral agreement to accredit South Australia to undertake a single assessment process for both Commonwealth and South Australian purposes. 4.1.2 The Parties agree the goal is to lift the use of single accredited assessment processes to 100 per cent of proposals where the relevant processes have been agreed to be within the scope of this reform, subject to South Australia undertaking comprehensive environmental assessments that meet Commonwealth standards, and subject to completion of necessary implementation arrangements agreed by the Parties. 4.1.3 When undertaking assessments as part of any accredited authorisation processes, South Australia 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 through agreed governance arrangements, in order to minimise costs to both Parties and proponents. 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; and Clarity as to the responsible decision maker/s. b. For the Parties: 4 COMMONWEALTH OF AUSTRALIA STATE OF SOUTH AUSTRALIA 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 5. Accrediting Approvals 5.1.1 The Parties will pursue a comprehensive approvals bilateral agreement to accredit South Australia to undertake approvals under the EPBC Act, to be concluded by 18 September 2014. 5.1.2 The Parties agree in principle that a broad range of approvals will be considered in progressing an approvals bilateral agreement. 5.1.3 The agreement will include a process of regular review. There will be: a. A comprehensive joint review after 12 months of the operation of the agreement and the outcomes achieved, and periodic joint review after that; b. A process to ensure that when proponents first seek regulatory approval from either the Commonwealth or South Australia, there is certainty about whether the assessment or approval bilateral agreement will apply, particularly during the process of negotiating the approvals bilateral agreement; c. Any accredited process will ensure that any decisions proposed by South Australia will result in at least equivalent protection for matters of NES, and that South Australian 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 5 COMMONWEALTH OF AUSTRALIA STATE OF SOUTH AUSTRALIA conditions to be applied by the Commonwealth over and above those applied by South Australia 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. 6. Additional administrative streamlining 6.1.1 To complement the objects of this agreement, South Australia will continue to streamline its assessment and approval processes while maintaining environmental standards. 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 and as necessary will collaborate to this end; b. The Parties agree to provide an agreed standard of up-front guidance to industry, and will work towards publishing standard information requirements and conditions for high priority sectors in the first instance; c. Where the Commonwealth retains approval of a proposal containing a controlled action, the Commonwealth agrees to use a single assessment report, where South Australia has undertaken a comprehensive environmental assessment. In addition, the Commonwealth agrees to use the proposed conditions provided by South Australia and, to the greatest extent possible, will avoid imposing additional conditions when making approval decisions under the EPBC Act; d. The Commonwealth and South Australia 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 South Australia, 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 necessary to maintain environmental standards as required by relevant State and Commonwealth legislation. 6 COMMONWEALTH OF AUSTRALIA STATE OF SOUTH AUSTRALIA 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. 7. Use of strategic assessments 7.1.1 During 2014, the Parties agree to work towards development of agreed priorities and approaches to strategic assessment that will be effective in the South Australian context and meet both parties’ requirements for assessment frameworks that provide an efficient mechanism for protecting the environment. . 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: 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. 8.1.4 Parties will agree an ongoing framework for joint governance of arrangements implemented pursuant to this MOU. 7 COMMONWEALTH OF AUSTRALIA STATE OF SOUTH AUSTRALIA 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 COMMONWEALTH OF AUSTRALIA STATE OF SOUTH AUSTRALIA SIGNED for and on behalf of the State of South Australia as represented by Premier of SOUTH AUSTRALIA Name (print) Signature Date 9 COMMONWEALTH OF AUSTRALIA STATE OF SOUTH AUSTRALIA