National Government Advisory Group (NGAG) on Chemicals Security – Implementation Plan for Productivity Commission Recommendations Chemicals and Plastics Regulatory Reform – Security Sensitive Ammonium Nitrate (SSAN) Reforms Harmonisation of State and Territory regulations on SSAN will be achieved through the Chemical Security Management Framework, including utilising the National Government Advisory Group (NGAG) to consider and agree approaches to achieve the reforms, and the National Industry Reference Group to seek expert industry advice on relevant proposals. Proportionate and harmonised risk treatment measures will be developed and agreed, including having regard to the chemical security risk assessment for SSAN, the Productivity Commission’s recommendations and COAG’s responses. NGAG will assume responsibility for the oversight of this reform and report directly to COAG through the BRCWG until the completion of the Seamless National Economy National Partnerships in December 2012. From January 2013 NGAG will report through the COAG Business Advisory Forum Taskforce (the Taskforce) to COAG on progress. The stages of implementation for this reform are set out in Table 1 below. Table 1 Stages of Implementation Output 2012-13 2013-14 2014-15 SSAN risk assessed and existing controls re-examined under the Chemical Security Management Framework. All jurisdictions: Finalise SSAN security risk assessment by August 2012 All jurisdictions: NGAG to agree on proposed control measures by November 2013 (includes targeted industry consultation and re-examination of existing regulations). Ongoing milestones to be identified and agreed as project progresses (part of PC recommendation 10.4) Notes: Key steps under the Framework are: risk assess the chemical of security concern develop and agree measures to decrease the assessed risks implement agreed measures Outputs 2 and 3 are dependent on the risk assessment and control measures under Output 1. All jurisdictions: Commence development of proposed control measures through NGAG, incorporating outputs 2 and 3, by November 2012 All jurisdictions: NGAG to report to COAG (through BRCWG) on reform progress by December 2012 All jurisdictions: Review implementation plan following finalisation of control measures by December 2013 and submit revised implementation plan to COAG through the Taskforce by December 2013. All jurisdictions: NGAG to report to COAG through the Taskforce on progress in implementation by December 2013. 1 Output 2012-13 2013-14 2014-15 Subject to re-examination of controls under Output 1, nationally uniform approach to conducting security checks for access to SSAN, managed by a single agency such as Auscheck, and a database established for recording and sharing information on current, refused or revoked security clearances. Subject to outcome of 1, but consistent with milestones for output 1. Subject to outcome of 1, but consistent with milestones for output 1. Subject to outcome of 1, but consistent with milestones for output 1. As for 2. above As for 2. Above As for 2. above (PC recommendation 10.1) Subject to re-examination of controls under Output 1, nationally uniform SSAN regulations that include: consistent reporting requirements storage requirements based on agreed physical properties of SSAN, provided adequate security controls are met provision for a single security plan to be lodged for transporting SSAN nationally licence durations that are nationally consistent reporting requirements for assessment timeframes of regulatory agencies mutual recognition of licences/authorities issued in another Australian jurisdiction (PC recommendation 10.2) 2 PC Report Recommendations Recommendation 10.1: Commonwealth, state and territory governments should implement a nationally uniform approach to conducting security checks for access to security sensitive ammonium nitrate, irrespective of other harmonisation measures. The background checking process should be managed by a single agency such as AusCheck. A database that reports current, refused or revoked security clearances should be established, and the information shared across jurisdictions. Recommendation 10.2: State and territory governments should consider the following improvements for achieving greater national harmonisation of the security sensitive ammonium nitrate (SSAN) regulations: removing major inconsistencies in reporting requirements basing storage requirements on agreed physical properties of SSAN, provided adequate security controls are met ensuring that a single security plan can be lodged for transporting SSAN nationally making licence durations nationally consistent requiring regulatory agencies to commit to, and report on, timeframes for assessing licence applications. Recommendation 10.4: Commonwealth, state and territory governments should establish an agreed framework for assessing the security risks and appropriate control measures associated with chemicals of security concern. This framework should incorporate strong governance arrangements, underpinned by an intergovernmental agreement, that ensure measures are implemented consistently across jurisdictions. Once established, this framework should be used to re-examine the controls on ammonium nitrate. 3 COAG Response November 2008: ‘COAG’s Review of Hazardous Materials Steering Committee is considering reforms of security sensitive ammonium nitrate arrangements. Opportunities for reform were noted by COAG at its meeting on 2 October 2008. The Steering Committee will further develop recommendations for consideration by COAG at its first meeting 2009.’ COAG Response April 2009 COAG agreed to the following regulatory reforms for security-sensitive ammonium nitrate (SSAN): subject to verification as required: jurisdictions will allow a person licensed to carry out specific activities with SSAN in one jurisdiction to conduct lawfully the same licensed activities in other Australian jurisdictions through legislative or administrative recognition or the issue of a corresponding licence, permit or authorisation. This provision excludes the import, manufacture and storage of SSAN, and jurisdictions will recognise an authority issued by another jurisdiction for unsupervised access to SSAN provided that a person holding an authority is listed on an employer’s/supervisor’s SSAN security plan that is lodged with the receiving jurisdiction; in principle, SSAN licences or authorities should be first issued in the jurisdiction that is the primary place where an authorised activity takes place. Where there is no clear primary place of activity, then SSAN licences or authorities should be first issued where an individual or company is administratively based; jurisdictions undertake to provide, on request, information to another jurisdiction on the current status of a SSAN licence, permit or authority including the basis of the relevant person’s unsuitability, should that status be negative; and pending further consideration of the national database of refused and revoked licences and authorities, jurisdictions undertake to notify other jurisdictions immediately upon revoking or refusing a SSAN licence or authority and identify the basis of the relevant person’s unsuitability. COAG BRCWG response 2012 AGD consider an appropriate way forward for this reform and report back through BRCWG to COAG with recommendations on proposed reform outcomes and an implementation plan for delivering reforms by no later than August 2012. 4