MAJOR PROJECT ASSESSMENT: Port Kembla Coal Terminal Project (MP 08_0009)

Director-General’s Environmental Assessment Report Section 75I of the Environmental Planning and Assessment Act 1979

June 2009

Cover photo: Aerial view of the Port Kembla Coal Terminal © Crown copyright 2009 Published June 2009 NSW Department of Planning www.planning.nsw.gov.au

Disclaimer: While every reasonable effort has been made to ensure that this document is correct at the time of publication, the State of , its agents and employees, disclaim any and all liability to any person in respect of anything or the consequences of anything done or omitted to be done in reliance upon the whole or any part of this document

Port Kembla Coal Terminal Project Environmental Assessment Report

EXECUTIVE SUMMARY

Port Kembla Coal Terminal (PKCT) is an export coal terminal located at Port Kembla, in the LGA. PKCT receives coal by both road and rail from the Southern and Western coal fields, where it is blended and loaded on ships for transport to domestic and international markets.

PKCT is currently permitted to receive coal by public road between 7 am and 6 pm Monday to Saturday, with provision for these times to be extended during declared emergencies or rail transport disruptions. Whilst there is no formal limitation on the total tonnage which can currently be received by road, these time restrictions constrain PKCT’s capacity to receive coal by public road to around 5.2 million tonnes per annum (Mtpa), unless an emergency is declared. PKCT is now seeking approval for: • delivery of up to 10 Mtpa of coal and bulk products to its terminal by road 24 hours a day, 7 days a week; and • continuation of its existing rail and road receival, stockpiling and shiploading operations.

The proposal would provide continued employment for up to 123 people at PKCT, and is classified as a project to which Part 3A of the Environmental Planning and Assessment Act 1979 (EP&A Act) applies. Consequently, the Minister is the approval authority for the project.

The Department of Planning exhibited the Environmental Assessment (EA) for the project from 16 September 2008 until 17 October 2008 and received 155 submissions on the project, including 5 from public authorities, 9 from special interest groups and 141 from the general public, including a petition. No objections to the proposal were received from public authorities, however 122 of the public submissions, including the petition, objected to at least some aspect of the proposal. The Department has considered these issues carefully during its assessment of the project and has recommended conditions of approval to address significant issues. It has also incorporated particular recommendations from public authorities into the recommended conditions of approval. The Department of Planning has assessed the project application, EA, submissions on the proposal and PKCT’s Response to Submissions in accordance with the relevant requirements of the EP&A Act, including the objects of the Act and the principles of ecologically sustainable development.

The EA indicates that the additional 446 truck movements a day (each way) required to deliver up to 10 Mtpa of coal and bulk products would form a very small percentage of the overall vehicles travelling along nearly all coal haulage routes and that normal traffic growth would have a significantly greater impact on the road network. The EA also indicated that whilst road traffic noise levels generated on proposed coal haulage roads are currently in excess of noise objectives set by the ECRTN, the predicted additional noise levels increases due to 24/7 coal haulage are generally within the 2dB(A) level allowable by ECRTN criteria for all roads. The sole exception to these conclusions is in respect of Bellambi Lane during night time (ie between 10 pm and 7am). However, potential traffic and noise impacts on residences along Bellambi Lane are unlikely to be as significant as modelled in the EA for a number of years as coal dispatches from NRE No 1 are unlikely to rise above 1.1 Mtpa (from the current 800 ktpa) before the end of 2010. NRE No 1 Colliery must obtain a project approval under Part 3A of the EP&A Act prior to December 2010 if it is to continue production after that date. The Department considers it is appropriate that long-term management of trucking numbers from NRE No 1 and related noise and traffic impacts on Bellambi Lane are assessed under that mine’s current project application and managed through any resulting project approval. Notwithstanding, to minimise potential traffic and noise impacts on residences along Bellambi Lane, the Department concurs with PKCT’s commitment to limits receivals from NRE No 1 to between 7 am and 10 pm Monday to Friday, and between 8 am and 6 pm on weekends and public holidays. This would eliminate the modelled night time exceedances. The EA also indicates that air quality and greenhouse gas emissions are minor and manageable.

Finally, the project offers a number of social and economic benefits for the region, as it would: • assist the ongoing viability of PKCT; • use existing facilities at PKCT more efficiently; • provide continued employment for 123 people; and • facilitate significant royalty income and generate significant tax income for Government.

The Department of Planning is satisfied that the project’s benefits sufficiently outweigh its costs and that the project is able to be conducted in a manner that is consistent with the objects of the EP&A Act. Consequently, it believes the project is in the public interest, and should be approved subject to conditions.

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Port Kembla Coal Terminal Project Environmental Assessment Report

1. INTRODUCTION

1.1 Background Port Kembla Coal Terminal (PKCT) is an export coal terminal located at Port Kembla, in the Wollongong local government area (see Figure 1). PKCT receives coal by both road and rail from the Southern and Western coal fields where it is blended and loaded on ships for transport to international and domestic markets. PKCT is therefore a key link in the export coal supply chain for the and Lithgow areas .

Figure 1: Location of PKCT

PKCT currently receives coal from the following collieries: Appin, West Cliff, Dendrobium, NRE No 1, Wongawilli, Metropolitan, Tahmoor, Baal Bone, Charbon, Clarence, Ivanhoe No 2 and Springvale. Coal from Appin, West Cliff and NRE No 1 is delivered to the PKCT by public roads (see Figure 2). Coal from the remaining collieries is delivered to PKCT via rail, except for Dendrobium, where coal is delivered by rail first to the Dendrobium Coal Preparation Plant (Dendrobium CPP) located within the BlueScope Steel precinct, and then transported to PKCT by private road. PKCT also receives and dispatches other “bulk products”. Currently these comprise coke from Coalcliff Coke Works, Corrimal Coke Works and BlueScope Steel and slag from Australian Steel Mill Services.

In financial year 2008 PKCT received 12.6 million tonnes per annum (Mtpa) of coal, of which 39% was delivered by road and 61% was delivered by rail. Over 90% of coal received is exported, with the remainder being shipped to Australian markets (principally Whyalla). Bulk products comprise only a small

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Port Kembla Coal Terminal Project Environmental Assessment Report proportion of throughput, commonly around 500 kilotonnes pa (ktpa), although dispatches have varied between 150 ktpa and 600 ktpa. PKCT also dispatches small quantities of coal by road to the coke works. Currently, coal dispatches by road average just 550 tonnes per week.

Currently, PKCT is limited in its ability to receive coal deliveries by public road (ie via its Springhill Road / Port Kembla Road entrance) to between 7 am and 6 pm Monday to Saturday. It is important to note that these times can be extended during declared emergencies and rail transport disruptions. In addition, coal from Appin and West Cliff Collieries and Dendrobium CPP may be delivered to PKCT via BlueScope Steel’s internal roads outside of these hours (see Figures 2 and 4). NRE No 1 currently does not deliver coal outside of the approved hours.

1.2 Surrounding Land Use PKCT is located on the north-eastern side of the . Various industrial activities associated with port operation and Port Kembla Steelworks are also located in this area, including the Grain Handling Terminal and the General Cargo Handling Facility.

The closest residents to PKCT are located approximately 700 metres (m) to the north and north-west of the northern site boundary (see Figure 1). Residential receivers are also located along proposed coal haulage routes, namely Bellambi Lane, Mount Ousley Road, the Northern Distributor, Southern Freeway, Masters Road and Springhill Road (see Figures 3 and 4).

1.3 Planning Approvals PKCT currently operates under a 1979 development consent, granted by Wollongong City Council, which limits the quantity of coal which can be received by PKCT via public roads to 2 Mtpa. This restriction was overcome in 1982, when the Government gazetted State Environmental Planning Policy (SEPP) No 7 – Port Kembla Coal Loader , to manage the hours during which coal could be received at PKCT by public road. The 1979 council consent is otherwise very limited in scope.

SEPP 7 has since been replaced by clause 73 of the State Environmental Planning Policy (Infrastructure) 2007 . Both SEPP 7 and the Infrastructure SEPP limited the hours in which PKCT is permitted to receive coal deliveries by public road to between 7 am and 6 pm Monday to Saturday, with provision for these times to be extended during declared emergencies and rail transport disruptions. Neither instrument contains a formal limitation on the total tonnage which can be received by road, only the hours in which it can be delivered. However, the existing time restrictions constrain PKCT’s capacity to receive coal by public road to around 5.2 Mtpa. Current deliveries are around 3.5 Mtpa by public road and 1.4 Mtpa by private road.

2. PROPOSED PROJECT

2.1 Project Description There are a number of recent approvals and anticipated applications for potential expansions of coal mining operations in both the Southern and Western Coalfields. PKCT projects that these expansions will increase its coal exports to between 18 and 23 Mtpa by 2014. As a consequence, road deliveries to PKCT are projected to increase to around 10 Mtpa by 2014. PKCT is therefore seeking approval under Part 3A of the Environmental Planning and Assessment Act 1979 to extend its road receival hours to 24 hours a day, seven days a week (24/7).

PKCT’s project application (MP 08_0009) seeks approval for: • delivery of up to 10 Mtpa of coal and bulk products to its terminal by road 24 hours a day, 7 days a week; and • continuation of its existing rail and road receival, stockpiling and shiploading operations.

The proposal would not result in changes to onsite infrastructure that is associated with stacking, reclaiming or shiploading of coal or the size and operation of coal stockpiles. The proposal would provide continued employment for up to 123 people.

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Port Kembla Coal Terminal Project Environmental Assessment Report

A comparison of current operations versus proposed operations is summarised in Table 1. The current and proposed heavy vehicle haulage routes are shown in Figures 2, 3 and 4. The project is described in full in the project’s Environmental Assessment (EA), which is attached as Appendix F.

Table 1: Major Components of Current Operations versus Proposed Operations

Current Operation Proposed Operation • Hours of operation for road receival of coal from • Hours of operation for road receival of coal from: Appin-West Cliff, Dendrobium and NRE No 1 o Appin-West Cliff and Dendrobium Collieries: 24 Collieries: 7.00 am to 6.00 pm on any day other hours, 7 days a week; and than a Sunday or a public holiday. o NRE No 1 Colliery: 15 hours a day Monday to Friday and 10 hours a day on Saturday and Sunday and Pubic Holidays. • Road haulage routes from Appin and West Cliff • No change Collieries to PKCT via Appin Rd, Mt Ousley Rd, Southern Freeway, Masters Rd, Springhill Rd, Port Kembla Rd. • Road haulage routes from NRE No 1 Colliery to • No change PKCT via Bellambi Lane, Northern Distributor, Southern Freeway, Masters Rd, Springhill Rd, Port Kembla Rd. • Haulage routes from Dendrobium Colliery to • Haulage routes from Dendrobium Colliery to Dendrobium CPP via rail, and then from Dendrobium CPP via rail, and then from Dendrobium CPP to PKCT via private road within Dendrobium CPP to PKCT via Springhill Rd and the BlueScope Steel precinct. Port Kembla Rd or via private road within the BlueScope Steel precinct. • Port Kembla Coal Terminal onsite hours of • No change operation: 24 hours a day, 7 days a week. • Port Kembla Coal Terminal onsite coal storage • No change capacity: 600,000 tonnes. • Port Kembla Coal Terminal onsite road receival • Port Kembla Coal Terminal onsite road receival volume: uncapped (currently 4 Mtpa of coal and volume: 10 Mtpa of coal and bulk products. bulk products). • Daily truck movements on public roads: 372 (each • Daily truck movements on public roads: up to 818 way). (each way). • PKCT onsite employees: 89 direct employees and • No change 34 contractors.

2.2 Project Need and Justification The current restriction on road receival hours between 7 am and 6 pm Monday to Saturday was originally introduced in SEPP 7 to minimise the impacts of road haulage of coal on residents of Wollongong at a time when there were eleven mines delivering coal to PKCT by road. Coal trucks were required to transit through residential areas and also commonly through the main streets of Wollongong, en-route to PKCT. Since the introduction of SEPP 7, significant changes have been made to coal haulage routes, including the introduction of the Northern Distributor, as well as widening of roads and the installation of jersey barriers on Mt Ousley Road. In addition, truck fleet safety, noise emissions and other environmental practices have improved markedly, and trucks now carry much higher payloads, resulting in fewer truck movements. Further, only three of the original 11 road delivery mines are still operational today.

SEPP 7 permitted PKCT to receive coal deliveries by public road outside of the approved hours during declared emergencies and rail transport disruptions. Use of SEPP 7 emergency provisions has been approved by the Minster on several occasions, effectively providing for 24-hour road deliveries of coal for periods of up to several months. These increased deliveries are believed to have caused minimal adverse impact on local noise levels and led to minimal expressions of community concern.

Public road deliveries to PKCT are projected to increase from 3.5-4 Mtpa currently to around 10 Mtpa by 2014. This additional tonnage of coal transported by public roads will require an increase in truck movements from 372 to 818 (each way). A number of benefits can be realised by spreading this increased number of truck movements over a greater number of hours, including lower numbers of trucks on major arteries during the morning and afternoon peak periods and reduced overall congestion. It also enables more efficient use of both the PKCT infrastructure and company truck fleets.

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Port Kembla Coal Terminal Project Environmental Assessment Report

Figure 2: Overview of Illawarra Coal Transport Routes (Road & Rail) to PKCT

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Figure 3: Sensitive Receivers along Road Transport Routes to PKCT

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Figure 4: Sensitive Receivers along Road Transport Routes to PKCT, continued

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Port Kembla Coal Terminal Project Environmental Assessment Report

3. STATUTORY CONTEXT

3.1 Major Project Under Section 75B(1) of the EP&A Act, the Minister can order that a proposed development is a project to which Part 3A of the EP&A Act applies. On 30 December 2007, the then Minister for Planning issued an order that the proposed PKCT Project should be assessed and determined under Part 3A of the EP&A Act due to its State and regional environmental planning significance.

Consequently, the Minister for Planning is the approval authority for the project.

3.2 Permissibility The PKCT site is currently zoned 5(A) Special Uses (Port) under the Wollongong Local Environmental Plan 1990 , and the proposed development is permissible with consent in this zone. Consequently the Minister may approve the carrying out of the project. The site is also proposed to be zoned SP2 Infrastructure under the Draft Wollongong Local Environmental Plan 2009, and proposed development would be permissible with consent in this zone.

3.3 Exhibition and Notification Under Section 75H(3) of the EP&A Act, the Director-General is required to make the project’s Environmental Assessment (EA) publicly available for at least 30 days.

After accepting the EA for the project, the Department: • made it publicly available from 16 September 2008 until 17 October 2008:  on the Department’s website, and  at the Department’s Information Centre and the offices of the Nature Conservation Council and Wollongong City Council; • notified relevant State government authorities and Wollongong City Council by letter; and • advertised the exhibition in the .

This satisfies the requirements in section 75H(3) of the EP&A Act.

During the assessment process the Department also made a number of documents available for download on the Department’s website. These documents included the: • project application; • Director-General’s requirements for the EA; • the EA; and • the Proponent’s Submissions Report.

3.4 Environmental Planning Instruments Under Section 75I of the EP&A Act, the Director-General’s report is required to include a copy of or reference to the provisions of environmental planning instruments that substantially govern the carrying out of the proposal.

The Department has considered the proposal against the relevant provisions of several State Environmental Planning Policies (SEPPs) and other environmental planning instruments, and is generally satisfied that these instruments do not substantially govern the carrying out of this project, and that the project is able to be conducted in a manner that is consistent with these instruments (see Appendix C).

However, clause 73 of the State Environmental Planning Policy (Infrastructure) 2007 does substantially govern the carrying out of the project. While clause 73(4) permits coke and coal to be hauled to PKCT by road if it is delivered “in accordance with an approval under Part 3A of the Act”, it also requires that PKCT must be carried out in accordance with particular clauses of the existing council consent. Consequently, clause 73 will have to be amended for the development to be carried out solely in accordance with any Part 3A approval, and without regard to the existing council consent. Clause 73 of the Infrastructure SEPP would need to be amended notwithstanding that the recommended conditions of approval contains a requirements to surrender the existing council consent within 12 months of the approval.

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Port Kembla Coal Terminal Project Environmental Assessment Report

3.5 Objects of the Environmental Planning and Assessment Act 1979 The Minister is required to consider the objects of the EP&A Act when making decisions under the Act. The objects of most relevance to the Minister’s decision on whether or not to approve the proposed modifications are found in section 5(a)(i),(ii),(vi) and (vii). They are: ‘The objects of this Act are: (a) to encourage: (i) the proper management, development and conservation of natural and artificial resources, including agricultural land, natural areas, forests, minerals, water, cities, towns and villages for the purpose of promoting the social and economic welfare of the community and a better environment, (ii) the promotion and co-ordination of the orderly and economic use and development of land, (vi) the protection of the environment, including the protection and conservation of native animals and plants, including threatened species, populations and ecological communities, and their habitats, and (vii) ecologically sustainable development (ESD).’

The Department is satisfied that the project encourages the proper use of resources (section 5(a)(i)) and the promotion of orderly and economic use of land (section 5(a)(ii)), particularly as the proposed project seeks to continue the existing operations and is therefore able to be undertaken using existing facilities and infrastructure. Environmental protection (section 5(a)(vi)) is considered in Section 5 of this report.

The Department has carefully considered ecologically sustainable development (ESD), (section 5(a)(vii)) during its assessment of the project. This assessment (particularly Section 5) integrates all significant economic and environmental considerations and seeks to avoid any potential serious or irreversible damage to the environment, based on an assessment of risk-weighted consequences. PKCT has considered a number of alternatives to the proposed project (including the alternative of not proceeding) and considered the proposal in the light of the ESD principles (see Appendix F).

3.6 Statement of Compliance Under Section 75I of the EP&A Act, the Director-General’s report is required to include a statement relating to compliance with the environmental assessment requirements issued for the project.

The Department is satisfied that the Director-General’s environmental assessment requirements have been complied with.

4. ISSUES RAISED IN SUBMISSIONS

During the exhibition period, the Department received 155 submissions on the project, including: • 5 from public authorities; • 9 from special interest groups; and • 141 from the general public, including a petition with 55 signatures.

No objections to the proposal were received from public authorities, however 122 of the public submissions, including the petition, objected to at least some aspect of the proposal. A summary of the issues raised is provided below. A full copy of the submissions is attached in Appendix E.

The Department has considered these issues carefully during its assessment of the project (see Section 5), and where necessary, recommended conditions of approval to address significant issues. It has also incorporated a number of recommendations from public authorities into the recommended conditions of approval.

4.1 Public Authorities The Department of Environment and Climate Change (DECC) requested that PKCT: • clarify the difference between background noise levels at the 163 Kembla Street and 392 Keira Street noise monitoring locations, and confirm whether noise from existing operations was removed from background data; • clarify the noise assessment criteria in the specialist noise report regarding predicted noise levels;

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Port Kembla Coal Terminal Project Environmental Assessment Report

• consider Horizon Seaside Links Aged Care Complex at the southern end of the Wollongong Golf Course in the noise impact assessment; • consider how noise events (eg compression engine braking, ineffective muffling, empty wagon booming, loose tail gates, etc.) would be effectively and proactively managed and mitigated along coal transport routes; • consider the reduction in traffic and noise levels on Bellambi Lane that would result from the opening of the Northern Distributor Extension and potential measures to ameliorate against continuing noise impacts from coal trucks on this road, in addition to those proposed in the EA; • consider two scenarios for noise levels in Bellambi Lane following the opening of the Northern Distributor Extension – a) without any changes to existing coal haulage; and b) with the expanded haulage proposed in the EA and consider the net noise differences between these scenarios and any appropriate noise mitigation measures; • consider reasonable options to maximise the use of rail to transport coal to and from PKCT using a modal split between truck and rail deliveries; and • clarify assumptions and emissions factors used to calculate greenhouse gas emissions.

The Roads and Traffic Authority (RTA) requested that PKCT: • clarify existing and future truck movements on public roads from the Dendrobium CPP, and consider road safety and traffic efficiency impacts from truck movements from the CPP on both the local and State road network, in particular along Cordeaux Road; • clarify calculations used to estimate additional coal truck movements along Springhill Road, including typical capacity for typical trucks and confirm whether volumes in Table 8.1 of the traffic report are one way or two way movements; • consider other developments within the Port precinct to ascertain the cumulative impacts of development on the State road network; • consider mid-block capacity and coordination of signals on Springhill and Masters Roads in light of cumulative (development) impacts in the Port precinct; • confirm if intersection modelling includes 10 Mtpa SIDRA modelling for both am and pm peaks at the intersections of Springhill Road and Masters Road, Port Kembla Road and Tom Thumb Roads and key intersections with and Cordeaux Road; • consider infrastructure improvements to ameliorate any traffic and safety impacts; • consider a commitment to avoid night-time haulage on Bellambi Lane as per the EA; and • consider the management of vehicle noise, particularly engine brake noise.

The Ministry of Transport requested that PKCT: • consider the potential impact on the viability of Port Kembla due to cumulative impacts on the road network from proposed coal truck movements; and • consider the impact of deterioration in the modal share of rail that will occur if road receival hours are extended.

The Wollongong City Council (Council) requested that PKCT: • assess noise impact on residents along haulage routes, including setbacks of up to 100 metres, and conduct a survey of residents living along the F6 Freeway, Northern Distributor, Mount Ousley Road and Bellambi Lane regarding heavy vehicle noise; • consider developing a network model for intersection capacities to avoid congestion at key intersections and impacts on local streets resulting from re-routing of passenger vehicles; • consider future increases of coal haulage and compliance with DECC’s air quality limits for total suspended particulates (TSP) and fine particulate matter (PM 10 ); and • assess total concentration of nutrients prior to any discharges of water into Port Kembla Inner Harbour.

The Department of Primary Industries (DPI) provided a brief submission which did not provide specific comments on the EA, as development and operation of PKCT fall outside of DPI’s responsibility.

4.2 Community and Interest Groups Of the 9 special interest groups to make submissions, 2 supported the proposal, 4 raised issues and 3 objected. Key special interest groups raising issues or opposing the proposal included the Wollongong Transport Coalition, the Wollongong Climate Change Action Network and the Illawarra Community and Environment Connection.

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Port Kembla Coal Terminal Project Environmental Assessment Report

Of the 141 submissions from the general public, 122, including the petition, objected to the proposal. A further 16 public submissions raised issues over the proposal and 3 supported it. The main grounds for objection included: • noise, road safety and driver behaviour, dust and air pollution, impact on infrastructure and greenhouse gas emissions due to an increase in heavy traffic movements; • choice of road transport in preference to provision of a rail link, in particular the completion of the Maldon-Dombarton rail line to transport coal more efficiently from the Western Coalfield; • reopening of O’Brien’s Drift as an alternative to coal truck transportation via Mt Ousley; and • limited community consultation during the environmental assessment process.

4.3 Response to Submissions PKCT has provided responses to the issues raised in submissions (see Appendix B). The Department has considered the issues raised in submissions, and PKCT’s responses to these issues, in its assessment of the project (see Section 5 below).

5. ASSESSMENT

5.1 Traffic The EA includes a specialist traffic impact assessment report prepared by Cardno Eppell Olsen. The study was undertaken to determine existing and predicted traffic volumes under a number of different scenarios to ascertain impacts on the efficiency of the road network, ability of the road infrastructure to accommodate the additional freight load, road safety and changes in modal split of road/rail freight haulage. The study took into account a number of operating scenarios for coal to be delivered to PKCT by public roads from Appin, West Cliff and NRE No 1 collieries and Dendrobium CPP, including: • current 11 hours a day, six days a week (11/6) deliveries of approximately 4 Mtpa; • potential 11 hours a day, six days a week (11/6) deliveries of a proposed 10 Mtpa; and • proposed 24 hours a day, seven days a week (24/7) deliveries of 10 Mtpa.

Capacity and Efficiency of Road Network The traffic study indicated that coal trucks generally form a very small percentage of the overall vehicles travelling along the coal haulage routes (with one exception, see below) and that background growth in other traffic has (and would have) a significantly greater impact on the road network than would the project. The assessment also indicated that there is spare capacity at all of the modelled intersections (ie Masters Road and Springhill Road; Springhill Road and Port Kembla Road; and Springhill Road and Tom Thumb Road) and that the predicted increases resulting from the project would not affect the ability of these intersections to operate at the current Level of Service C, or better, during both the morning and afternoon peak periods. This level of service is for stable flow – acceptable delays, with most drivers being restricted to some extent in their freedom to select their desired speed and to manoeuvre within the traffic stream.

The traffic study indicates that the daily total of truck movements would have to increase from the present 372 (each way) to 818 (each way) to accommodate the projected increase of 6 Mtpa of coal delivered by road (see Table 2). The study recommends that it is preferable to increase the current 11/6 road receival hours to 24/7 to accommodate this increase, as spreading the necessary number of additional truck movements across the full 24 hours would result in a lower number of trucks during the morning and afternoon peak periods and less overall congestion on public roads.

Clause 73 of the Infrastructure SEPP allows PKCT to seek approval to receive coal and bulk products by public roads 24/7 for periods up to 3 months. Under these provisions, PKCT undertook an approved 24/7 trial between 3 March and 14 April 2008. Data collected during this period were used to verify the modelling methodology used in the traffic study. The traffic study also considered the cumulative traffic impacts from the Port precinct, including those related to the recently approved General Cargo Handling Facility.

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Table 2: Summary of Current and Predicted Traffic Movements

Increased tonnage but Current Operations no change to time Proposed Change Delivery Period (11/6 @ 4 Mtpa) restrictions (24/7* @ 10 Mtpa) (11/6 @ 10 Mtpa) In Out In Out In Out Total Daily (24h) 372 372 840 840 818 818 Day (7am–6pm) 294 320 687 732 595 610 Night (6pm-7am) 78 52 153 108 223 208 Peak Day (per hour) 40 45 94 93 74 61 Peak Night (per hour) 8 6 13 10 31 27 Average Day (per hour) 27 29 62 67 54 55 Average Night (per hour) 6 4 12 8 17 16 Note 1: This accounts for proposed delivery 24 hours a day, 7 days a week except for NRE No 1 where delivery is proposed between 7 am and 10 pm Monday to Friday and between 8 am and 6 pm on Saturdays, Sundays and public holidays.

Bellambi Lane The exception to the general rule that coal trucks form a very small percentage of overall traffic flow is Bellambi Lane, which is the public road which first receives coal dispatched from NRE No 1 Colliery at Russell Vale (see Figure 3). Due to the proposed opening of the new extension of the Northern Distributor in mid 2009, it is predicted that there will be significant decreases in total traffic volumes on Bellambi Lane. It is expected that this road will subsequently be reclassified from an arterial road to a collector road. Consequently coal trucks from NRE No 1 will form a higher percentage of the future traffic mix on Bellambi Lane, regardless of whether there is any actual increase in coal trucks.

Currently, NRE No 1 usually trucks coal to PKCT on four days per week (Tuesday, Thursday, Friday and Saturday), with an average number of trucks dispatched on these days of 110-120. The current truck fleet varies between 8 and 10, and the average number of trips made each working day by these trucks is from 12 to 14, within the current 11 hour window.

The traffic impact assessment predicted that average daily truck numbers from NRE No 1 along Bellambi Lane would increase from an average of 80.6 (each way, 11/6) for the 2008 delivery of 800 ktpa of coal to 301 (each way, 24/7) at the modelled maximum delivery of 3.5 Mtpa of coal, using an average loading of 31.8 tonnes.

However, Gujarat NRE Minerals Limited has since indicated that the volume of coal transported from NRE No 1 to PKCT would increase very progressively and the modelled maximum delivery is unlikely to be reached before 2013 or 2014. In 2009, only 1.0 Mtpa is anticipated to be trucked to PKCT. During 2010, this figure is projected to rise to 1.1 Mtpa. This quantity of production results in daily each-way average truck numbers for these two years of 101 and 111 (for the present 6 day trucking week), or 86.4 and 95 (for the proposed 7 day trucking week).

To ensure that any potential impacts on Bellambi Lane residents are minimised, in particular noise impacts associated with proposed 24/7 operations, PKCT (in consultation with Gujarat) has committed to only receive deliveries from NRE No 1 if that coal is dispatched from the colliery between 7 am and 10 pm Monday to Friday and between 8 am and 6 pm on weekends and public holidays (hereinafter referred to as “15/5, 10/2”). The primary benefit of the proposed limitation on receival hours would be to substantially decrease night-time and evening road noise on Bellambi Lane (see section 5.2). Gujarat advises that, in 2009 and 2010, the number of trucks hauling coal from NRE No 1 is expected to increase to 9 to 11 and 10 to 11 respectively. It is apparent that there is substantial capacity for NRE No 1 to deliver its anticipated short term production within the 15/5, 10/2 period. If 11 trucks each make 13 deliveries per day, then 1.1 Mt can be delivered in 243 working days, which is slightly over five delivery days per week on average, compared with the present four delivery days.

NRE No 1 Colliery (the former South Bulli Colliery) must obtain a project approval under Part 3A of the EP&A Act prior to December 2010 if it is to continue production after that date. Director -General’s requirements have recently been issued in respect of this project and Gujarat NRE Minerals is currently preparing the required EA. Given this, and that coal dispatches from NRE No 1 are unlikely to rise above 1.1 Mtpa before the end of 2010, the Department considers it is appropriate that longterm management of trucking numbers from the colliery and related noise and traffic impacts on Bellambi Lane are assessed under NRE No 1’s current project application and managed through any resulting project approval. This is

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Port Kembla Coal Terminal Project Environmental Assessment Report especially appropriate since the potential impacts take place at the “front door” of the mine, and at the maximum distance from the receiving facility (ie PKCT). There are also limitations on the extent to which a project approval for PKCT can manage the actions of a 3 rd party (ie the dispatch of coal, coke or other bulk products by a mine or other facility).

Consequently, the Department considers that there is no immediate need to closely manage receival by PKCT of coal trucks dispatched along Bellambi Lane from NRE No 1, beyond the limitation on receival hours put forward by PKCT and Gujarat. The proponent’s commitment to receive trucks from NRE No 1 only during the 15/5, 10/2 window avoids unreasonable noise and traffic impacts in this location. The Department therefore recommends conditions to limit deliveries from NRE No 1 to between 7 am and 10 pm Monday to Friday and between 8 am and 6 pm on weekends and public holidays.

Cumulative Impacts The traffic study considered the cumulative impacts of heavy vehicle traffic from the Port precinct, including the recently approved General Cargo Handling Facility, which is predicted to contribute 407 daily vehicle movements (each way) by 2016 in addition to the extra 446 daily truck movements (each way) contributed by PKCT’s proposal. The traffic study however, indicates that the road network which services the Port can adequately carry this maximum predicted traffic volume without significant reduction in the current level of service. The Department is therefore satisfied that PKCT’s proposal will not have an adverse impact on the viability of the Port. In addition, PKCT has indicated that it may truck coal from Dendrobium CPP via Springhill Road, rather than internal roads within BlueScope Steelworks. This would reduce potential traffic congestion and road safety issues within the Port Precinct.

The RTA requested that the project’s cumulative impacts also account for the Soy Bean Processing and Biodiesel Facility, proposed to be located within the Port precinct. However, the Department concurs with PKCT’s decision not to include this facility in the cumulative assessment as it is still under assessment and may or may not be approved. Nevertheless, the Department considers that, even if the facility was approved, it is unlikely to significantly contribute to an impact on cumulative traffic movements in the Port precinct.

Both the RTA and Council raised concerns regarding cumulative traffic impacts, particularly on Springhill Road and Masters Road. However, the traffic study indicated that there would be minimal deterioration in existing carriageway capacities on not just Springhill Road and Masters Road but on all proposed haulage routes, even under the maximum haulage scenario. The study indicated that the proposal would result in 2.4% and 2.0% increases in traffic volumes along Masters Road during the morning and afternoon peaks, respectively. On Springhill Road, the projected increases would be 3.1% and 3.6% during the morning and afternoon peak hours, respectively.

Modal Split PKCT currently receives coal by rail from nine collieries and by public road from three collieries. These collieries (Appin, West Cliff and NRE No 1) have no access to rail infrastructure. The traffic study indicates that there is no real opportunity to develop rail line and associated loading facilities at these collieries due to terrain, land constraints and economic viability issues. Consequently, for the foreseeable future, all coal produced at Appin, West Cliff and NRE No 1 collieries will require to be transported by road to PKCT (or other markets, such as BlueScope Steelworks). PKCT is also seeking approval to transport coal from Dendrobium CPP by public road (ie Springhill Road and Port Kembla Road) as opposed to the current transportation via private road within the BlueScope Steel precinct.

In financial year 2008 PKCT received 12.6 Mtpa of coal, of which 39% was delivered by road and 61% was delivered by rail (see Figure 5). However, of the 39% delivered by road, more than one third (1.4 Mtpa) was delivered by private road. In its “high case” scenario, the traffic study predicts that total coal exports through PKCT would increase to 23 Mtpa by 2014. PKCT predicts that, under this scenario, 58% of coal and bulk products would be delivered by rail and 42% by road (see Figure 5). Of the total coal delivered by road, 27% or 2.6 Mtpa would be delivered primarily by rail (ie coal first transported from Dendrobium Coal Mine to Dendrobium CPP), with final delivery by truck by either private road through BlueScope Steel (as at present) or else along the short section of Springhill Road and Port Kembla Road.

Figures 5 and 6 show historic and projected deliveries of coal by road and rail to PKCT. It can be seen that the total tonnage of coal delivered by rail has been steadily increasing since 2000. Notably, the percentage of coal delivered by road has been steadily decreasing whilst the percentage of coal delivered by rail has been steadily increasing.

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25.0

20.0 9.6 8.8 8.2 7.2 15.0 5.3 4.9 7.7 Road Tonnes 7.9 10.0 6.8 4.9 6.4 5.1 4.9 4.2 5.5 Rail Tonnes 5.2 5.8 3.4 3.7 4.1 5.0 3.1 3.9 4.2 Million tonnes of coal per annum per coal of tonnes Million 5.0

0.0 91 9293 9495 9697 989900 0102 0304 0506 070809 1011 1213 14 Financial Year

Figure 5: PKCT’s Annual Coal Receivals - by Transport Mode

80

70

60

50

40 % rail

Percentage % road 30

20

10

0 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 Financial Year

Figure 6: PKCT’s Annual Coal Receivals - Percentage Modal Split

The Department considers that, while the proposal would alter the current overall modal split, the historical trend is unlikely to be impacted (ie percentage of coal delivered by rail would continue to rise, whilst the percentage of coal delivered by road would continue to decline).

The nine collieries that currently have access to existing rail infrastructure would continue to use rail to transport coal to PKCT. In addition, there is no formal policy requirement to maintain any particular road/rail modal split. The Department can see no benefit in artificially constraining a modal split between rail and road transport. Since such a split is unlikely to be sufficient incentive to construct new rail lines, the effective outcome would be an overall limitation on the amount of coal that could be transported by road. This may amount to a restraint on trade for those mines which are considering increasing their production but which have no access to rail infrastructure.

A number of submissions from the general public called for the reopening of O’Brien’s Drift as an alternative to truck transport of coal via Mount Ousley and completion of the Maldon-Dombarton rail line to facilitate transport of coal from the Western Coalfield.

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O’Brien’s Drift is a partly above and partly below ground conveyor system, which was built in 1966 by the former BHP to transport coal from its coal mines in the area down the to the rail loading facility within the then Colliery (now the Dendrobium Colliery). However, the Drift has since been decommissioned, as coal from Dendrobium Colliery is brought directly to the surface at the Kemira Valley rail loading facility for transport by rail to the Dendrobium CPP at BlueScope. The assessment indicated that the capacity of this rail line is fully utilised with the coal produced (or expected to be produced) at Dendrobium Colliery.

Additionally, if the Drift was to be reinstated to accept coal from Appin and West Cliff Collieries, this coal would first have to be hauled via Picton Road. Picton Road is a busy road and historically has had safety issues. Over the last five years there have been 152 reported crashes along this road, nine of which were fatal. The Department therefore does not consider this to be a viable option to haul coal to PKCT.

The construction of the Maldon-Dombarton rail line commenced in 1983, with a major purpose being to bring coal from the Western Coalfields to Port Kembla while avoiding the metropolitan rail network. Due to a downturn in coal exports from Port Kembla, construction of the rail line ceased in 1988.

With the increase in coal exports and growing trade through the Port Kembla port, the Government now intends to commission a pre-feasibility study to review the engineering and economic requirements of the rail line and assessment of the work completed to date, together with its suitability for the proposed rail freight task. This broad-scale approach would then form a basis for a further study to be undertaken to prove the economics of the proposal, should this study find the line to be feasible.

Since the study is still incomplete, the Department concurs with PKCT’s argument that the line does not currently present a solution as an alternative method of transporting coal from the Western Coalfields. Nevertheless, PKCT has indicated in its Response to Submissions that it is willing to participate in the feasibility study and co-ordinate input from its customers. It will consider any potential proposal for the completion of the Maldon-Dombarton rail line, including public-private partnership, in lthe ight of its customers’ future forecasts, as well as other regional freight requirements, following completion of the feasibility study.

Road Safety A safety audit of the proposed coal haulage routes undertaken as part of the traffic assessment indicated that a section of Mount Ousley Road, south of Bulli Pass, exhibits a relatively high crash history. However 14.4% of crashes involved articulated vehicles, with coal trucks representing an average of approximately 6.8% of heavy vehicle traffic on the same route in 2008.

Nonetheless, the assessment indicated that road safety would not be compromised on any haulage route as a result of the proposal. Increasing the current 11/6 road receival hours to 24/7 would spread the necessary number of additional truck movements across the full 24 hours, which in turn would result in a lower number of trucks during the morning and afternoon peak periods and less overall congestion.

However, to ensure safety concerns on public roads are adequately managed; PKCT has, in consultation with the Department, DECC, RTA, a representative of PKCT’s Community Consultative Committee, client mines and their principal coal haulage contractors; developed a Driver’s Code of Conduct. This code aims at managing drivers’ behaviour and includes measures to manage speed limits, compression braking and queuing on local roads, and provides for incident management and reporting and compliance monitoring. The Driver’s Code of Conduct has also been endorsed by the principal road haulage companies which deliver to PKCT (Bulktrans Pty Ltd and Brindles Pty Ltd) and their client mines (BHP Billiton Illawarra Coal Pty Ltd and Gujarat NRE Minerals Ltd). It is included, along with PKCT’s Statement of Commitments, in the recommended conditions of approval. The Department is also recommending conditions which require PKCT, in consultation with affected mines and principal haulage operators, to develop a program to implement the Driver’s Code of Conduct to the satisfaction of the Director-General. This program must include a driver induction program to cover speed limits, compression braking, truck washing, load covering and queuing on local roads; and include measures to ensure the code is enforced. The Department is satisfied that the proposal would not substantially impact on road safety.

Conclusion The Department has considered the EA’s traffic study and issues raised by the public and agencies during and after public exhibition and PKCT’s responses provided in its Submissions Report. The Department is satisfied that the proposed coal haulage routes have more than sufficient capacity to

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Port Kembla Coal Terminal Project Environmental Assessment Report accommodate the predicted additional 446 each-way truck movements per day. The EA’s traffic study has demonstrated that all intersections would operate satisfactorily and that the proposal is unlikely to result in undue delays or queuing.The study has also demonstrated that it is preferable to spread these extra truck movements over extra hours, rather than to crowd them into the existing 11/6 traffic window (including week-day peak hours). No other major development within the Port Kembla precinct is constrained to permit deliveries or dispatches only within an 11/6 window. The Department concludes that there is no substantive reason, based on traffic management, road safety, or commercial equity, to constrain road receival at PKCT to the existing hours of 11/6.

The Department has also closely considered community concerns regarding potential traffic impacts. PKCT’s forecasts indicate that the projected increase in coal and bulk products received at PKCT via public roads would be gradual. Total road deliveries in 2014 are projected to be 9.6 Mt, but only 7.0 Mt are projected to be definitely delivered by public roads. The remainder (2.6 Mt) may continue to be delivered by private road, as at present (ie from Dendrobium CPP through the BlueScope precinct). Consequently, public road deliveries are not projected to reach 10 Mtpa until at least 2014, and potentially not until some time beyond that date.

The Department has therefore recommended that the project approval should only initially permit receival of 7.5 Mtpa of coal and bulk products via public roads. It is recommended that approval to receive a further 2.5 Mtpa via public roads should be consequent on a further review and approval by the Director - General. When the Proponent seeks this approval, it must submit a report which reviews the transport- related impacts associated with road deliveries, demonstrates that these impacts are generally consistent with the predicted and/or approved impacts, and examines whether there any other reasonable and feasible measures that could be implemented to minimise these impacts. Subject to this additional review and approval, the Department is satisfied that the proposed increase in heavy traffic movements can be effectively managed to ensure an acceptable level of environmental performance.

5.2 Noise The EA includes a specialist noise report prepared by Wilkinson Murray Pty Ltd in accordance with the NSW Industrial Noise Policy (INP) and the Environmental Criteria for Road Traffic Noise (ECRTN) . The noise study was carried out to establish existing noise levels and to predict noise impacts on residential receivers close to PKCT and along the proposed coal haulage routes. The noise impact assessment also considered the cumulative impacts from the Port precinct, including the recently approved General Cargo Handling Facility.

PKCT undertook an approved trial, between 3 March and 14 April 2008, to assist in verifying the modelling methodology used for the noise impact assessment.

As a result of the consultation and exhibition process, DECC and RTA requested further clarification of the background noise levels, noise assessment criteria, calculations used to estimate additional coal truck movements along coal haulage routes, intersection modelling and cumulative impacts. These requests were supported by a number of public submissions which raised concerns regarding noise impacts due to an increase in heavy traffic movements. The Department also requested PKCT to undertake additional noise monitoring at Swan Street, east of Corrimal Street. In satisfaction of these requests, PKCT submitted a revised noise report in its Submissions Report.

The Department has considered the revised noise report and issues raised by agencies and the public during and following public exhibition of the proposal, along with PKCT’s responses presented in the Submissions Report in assessing the likely impacts of the proposal.

Operational Noise The EA’s assessment of operational noise considered both existing and predicted noise from PKCT, including noise associated with conveying and stockpiling, loading of ships, transport noise on private roads within the Port precinct, and general noise around the terminal.

Attended and unattended noise logging was undertaken at two representative locations (392 Keira Street and 163 Kembla Street) during day, evening and night periods between 8 and 22 March 2008, and between 2 and 9 May 2008. This monitoring was used to establish the various rating background noise levels (RBLs) for the project. The RBLs were then used to develop Project Specific Noise Levels (PSNLs), equivalent to the RBL + 5dB(A), against which the predicted noise impacts from the project could be assessed (see Table 3). On the Department’s request, PKCT undertook additional unattended

NSW Government 17 Department of Planning

Port Kembla Coal Terminal Project Environmental Assessment Report noise monitoring at 16 Swan Street between 11 and 20 December 2008 to assess impacts on residences along Swan Street east of Corrimal Street, which are very close to PKCT. A separate report on 16 Swan Street was prepared which indicated that properties east of Corrimal Street experience background noise levels 3 – 6 dB higher than those measured at 163 Kembla Street, most likely as a result of surf noise. The report concluded that background levels recorded at 163 Kembla Street remain a representative and conservative indicator of industrial noise for all of Swan Street and the Horizon Seaside Links Aged Care Complex.

The noise report predicts that the calculated noise levels at the corner of Keira and Fox Streets may exceed the night time criteria by up to 2 dBA under a worst case scenario - enhanced weather conditions, PKCT being operational at the maximum capacity and simultaneous receival of coal by both road and rail (see Table 3).

Table 3: Project Specific Noise Levels (PSNLs)

Calculated Noise Level (dBA) RBL + Noise Criteria LA dB(A ) Residential Time RBL Non- 5dB eq,15min Enhanced recommended Location Period enhanced LA eq,15min by Department dB(A ) Autumn Spring Summer Winter of Planning Cnr of Day 46 34 41 42 40 41 51 51 Swan/ Evening 45 35 43 44 44 42 50 50 Kembla Sts) Night 44 36 43 43 44 42 49 49 Cnr of Day 46 37 42 42 40 42 51 51 Swan/ Evening 45 37 43 45 44 43 50 50 Corrimal Sts) Night 44 38 44 44 44 43 49 49 Cnr of Day 50 40 43 44 42 43 55 55 Keira/Fox Evening 44 40 44 45 45 43 49 49 Sts Night 38 41 44 45 45 43 43 45 Note: The monitoring locations can be seen on Figure 5.

The Department considers that an appropriate methodology was employed to both collect data and assess the noise impacts. The Department is satisfied that the night-time RBL of 38 dB(A) established for the corner of Keira and Fox Streets (392 Keira Street) has not been compromised by a noise contribution from existing facilities at PKCT. Moreover this background level is lower than the 40 dB(A) suggested in Australian Standard AS1055.3 – 1997 for a R3 Category Area (area with medium density transportation or some commerce or industry).

The Department considers that the predicted worst case scenario exceedances of the calculated PSNLs for Keira Street by up to 2 dB(A) are being a minor and unlikely exceedance of the Intrusive Criteria which does not result in an exceedance of the Amenity Criteria for the land classification. As a result, the Department has recommended the revised PSNL for Keira Street to allow compliance under enhanced meteorological conditions. The draft and recommended PSNLs are set out in Table 3.

Road Traffic Noise The assessment of road traffic noise was undertaken to both establish existing road traffic noise levels and to predict noise impacts on the residential receivers due to the proposed increase in road receival hours. Public roads subject to the assessment as part of the project are shown in Figures 2, 3 and 4 and include: Bellambi Lane, Northern Distributor, Springhill Road, Mount Ousley Road, Southern Freeway and Masters Road. was not considered as part of the assessment as there were no noise- sensitive receivers identified within close proximity. Noise generated on private haul roads, such as BlueScope internal roads, is considered as operational noise for the purposes of the assessment and is managed by PSNLs which apply to the PKCT and BlueScope sites.

The road traffic noise assessment considered the criteria and objectives established by the ECRTN and concluded that increased heavy vehicle volumes would have no significant impact on existing road traffic noise levels on any proposed route, with the possible exception of Bellambi Lane.

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All the proposed haulage routes are currently used to transport coal to PKCT and most carry high volumes of additional heavy vehicles. As a result, road traffic noise levels generated on these roads are high and often in excess of noise objectives set by the ECRTN. Where these objectives are currently exceeded, the ECRTN recognises that it is desirable to reduce road traffic noise levels, however where this is not reasonable or feasible, the ECRTN seeks to limit any additional increases to less than 2 dB(A) above existing levels. The noise study predicted that noise level increases due to proposed 24/7 coal haulage are within this 2dB(A) level for all roads except Bellambi Lane during night time (see Table 4). To mitigate the predicted noise exceedances along Bellambi Lane during night time, PKCT and Gujarat propose to limit receivals from NRE No 1 to between 7 am and 10 pm Monday to Friday, and between 8 am and 6 pm on weekends and public holidays (15/5, 10/2).

Table 4: PKCT Haulage Routes - Calculated LA eq Noise Level Changes from 2008 to 2013

Noise Level Change dB Operating Location Weekday Weekend ECRTN Criteria Scenario Day Night Day Night

Mount Ousley <0.1 0.1 0.1 0.2 + 2 Road F6 (north) 0.3 0.5 0.4 0.8 + 2 F6 (south) 24/7 0.3 0.5 0.4 0.8 + 2 Masters Road 0.8 1.3 1.6 1.9 + 2 Springhill Road 0.3 0.3 0.3 0.3 + 2 Northern 24/7 0.5 1.4 0.7 1.9 + 2 Distributor 15/5 & 10/2 0.5 N/A 0.7 N/A + 2 Bellambi Lane 24/7 -0.4 6.8 1.4 3.9 + 2 15/5 & 10/2 0.6 N/A 0.8 N/A + 2 Note: Calculations based on projected maximum coal dispatched from Gujarat NRE No 1, and also account for reductions in traffic volumes due to the opening of Northern Distributor Extension

Due to the proposed opening of the new extension of the Northern Distributor, road traffic noise levels on Bellambi Lane which currently exceed noise objectives set by the ECRTN are predicted to drop to acceptable levels. Whilst coal haulage proposed under the 15/5, 10/2 scenario is not predicted to result in any significant increase in road traffic noise levels over that which currently occurs, it would lead to levels for Bellambi Lane for the daytime period in excess of ECRTN criteria after the Northern Distributor extension is opened, providing that proposed full production at NRE No 1 (3.5 Mtpa) is realised.

However, regardless of any approval given to PKCT, the predicted worst case scenario for road traffic noise impacts on residences along Bellambi Lane is unlikely to eventuate, as tonnages trucked from NRE No 1 are not likely to increase above the 1.1 Mtpa unless Gujarat first seeks and obtains approval under Part 3A of the EP&A Act for the ongoing operation of the mine, as required by the end of 2010. The Department therefore considers that the Gujarat NRE No 1 application would be a more appropriate mechanism through which to effectively manage road traffic noise impacts along Bellambi Lane. Nevertheless, to minimise potential road traffic noise impacts on residences along Bellambi Lane, the Department has recommended that PKCT limits receivals from NRE No 1 to coal dispatched from the colliery between 7 am and 10 pm Monday to Friday, and between 8 am and 6 pm on weekends and public holidays.

As discussed in Section 5.1, the Department has also recommended that PKCT implement its ‘Drivers Code of Conduct’ to minimise traffic-related noise impacts. This would minimise the potential for any adverse noise impacts to residences. Specifically, the code would include measures to limit use of engine brakes at all times and to prohibit their use on Springhill and Port Kembla Roads.

Cumulative Noise The noise assessment has considered cumulative impacts from the Port precinct, including the recently approved General Cargo Handling Facility (GCHF) for which noise level increases of less than 1dB were predicted. The Department considers that noise impacts from the GCHF are minor and consequently cumulative noise impacts due to the proposal would not result in any significant cumulative increase in noise levels in the surrounding noise catchment or that surrounding the major transport haulage routes to the Port precinct.

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Port Kembla Coal Terminal Project Environmental Assessment Report

Conclusion The Department is satisfied that PKCT has assessed the potential noise impacts of the project in accordance with relevant DECC guidelines, and adopted all reasonable and feasible noise mitigation measures. The noise study has indicated that whilst road traffic noise levels generated on proposed coal haulage roads are currently in excess of noise objectives set by the ECRTN, the predicted additional noise levels increases due to 24/7 coal haulage are generally within the 2dB(A) level allowable by ECRTN criteria for all roads. The sole exception is Bellambi Lane, during night time (ie between 10 pm and 7am). However, the proponent has committed to only receive deliveries dispatched down Bellambi Lane during daytime and evening (ie between 7 am and 10pm), or less in the case of weekends and public holidays. The Department and DECC are both satisfied that noise impacts from the project, including with respect to increased heavy traffic movements, can be effectively managed to ensure an acceptable level of environmental performance, provided that PKCT: • complies with its project specific noise limits; • limits receivals from NRE No 1 to the hours between 7 and 10 pm Monday to Friday and between 8 am and 6 pm on weekends and public holidays (ie 15/5, 10/2); • develops and implements a noise monitoring program that includes attended and unattended noise monitoring, a monitoring protocol for evaluating compliance with the noise criteria, and proposed mitigation measures to ensure project specific noise criteria are met; and • develops and implements a comprehensive Driver’s Code of Conduct to minimise onsite and offsite noise impacts from heavy traffic movements.

These requirements have been incorporated into the recommended conditions of approval. With these measures in place, the Department is satisfied that noise impacts on residential receivers located close to PKCT and along proposed coal haulage routes would be adequately managed.

5.3 Air Quality The EA includes a specialist air quality report, prepared by Katestone Environmental in accordance with DECC’s Approved Methods for the Modelling and Assessment of Air Pollutants in New South Wales .

Since the early 1980s, PKCT has operated 12 dust deposition gauges within and adjacent to its site to measure dust deposition. PKCT has subsequently installed two continuous dust monitors to further improve the monitoring of fugitive dust in surrounding residential areas (see Figure 7).

To establish the background air quality in the area, including total suspended particulates (TSP), fine particulate matter (PM 10 ) and dust deposition, PKCT has used data from its dust deposition gauges as well as data from DECC and BlueScope Steel dust monitors. The air quality report includes consideration of likely dust emissions from the project in isolation, as well as the total cumulative dust emissions from other industrial activities contributing to background dust concentration, together with an analysis of deposited dust (ie insoluble solids).

Dispersion model simulations were undertaken to predict long term (24-hour and annual average) concentrations of PM 10 , annual average concentrations of TSP and annual average dust deposition rates. This modelling was based on the 24/7 operating scenario. It considered conservative background dust deposition rates representative of residential areas to the north, to characterise the worst-case annual average levels. The modelling also took into account all management and mitigation measures currently employed by PKCT to control windblown dust from coal stockpiles and other dust generating activities, including: • automated coal stockpile spray system; • road sweeper and water cart; • enclosed rail receival facility; • fully enclosed inloading conveyors; • wind guards on outloading conveyors; • enclosed coal transfer points (with the exception of TS6 which has an enclosed chute); • truck washing facilities; and • variable height stackers to load coal into stockpiles.

Project and cumulative air quality assessment criteria were adopted on the basis of DECC’s 24-hour, monthly and annual air quality modelling goals to protect health and amenity, to ascertain the extent to which surrounding residential properties would be impacted by the project.

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The air quality report indicated that background PM10 and dust deposition levels are generally well within the respective DECC criteria, except for exceedances in TSP (see Table 5). The elevated levels of TSP are most likely due to the existing mix of industrial activities, motor vehicles and natural sources such as windblown salt. Furthermore, the report indicated that the predicted project-specific 24-hour average and annual average concentrations of PM 10 , the annual average concentrations of TSP and annual average dust deposition rates would meet the relevant DECC criteria at all nearby residences under the proposed 24/7 scenario.

Table 5: Maximum Air Quality Emissions – Predicted Ground Level Concentrations

Residential Receivers Scenario Scenario Pollutant Averaging and Period Units Criteria km/N) (1.3 R1 (1.7 R2 km/NW) (1.65 R3 km/WNW) (2.5 R4 km/SW) (2.8 R5 km/SSW) km/S) (2.6 R6 Project Particulate 24 hour / 50 4.7 2.3 1.5 1.1 1.9 2.2 (proposed matter µg/m 3 24/7 (PM 10 ) Annual / 30 0.4 0.2 0.1 0.1 0.1 0.2 operation) µg/m 3 TSP Annual / 90 0.8 0.4 0.3 0.3 0.3 0.4 µg/m 3 Deposited Annual / g/m 2 2 0.07 0.04 0.01 0.02 0.03 0.03 Dust / month (insoluble solids) Cumulative Particulate 24 hour / 50 49.1 48.3 48.5 48.5 48.3 49.1 (proposed matter µg/m 3 24/7 (PM 10 ) Annual / 30 18.9 18.8 18.8 18.7 18.7 18.7 operation 3 plus µg/m background) TSP Annual / 90 102 101 101 101 101 101 µg/m 3 Deposited Annual / 4 3.7 3.6 3.6 3.6 3.6 3.6 Dust g/m 2 / (insoluble month solids)

The air quality report also indicated that predicted cumulative 24-hour average and annual average concentrations of PM 10 and annual average dust deposition rates at nearest residences to PKCT would also meet the relevant DECC criteria. Unsurprisingly, the assessment also indicated that the cumulative annual average concentrations of TSP would exceed relevant DECC criteria. The Department recognises that this predicted cumulative exceedance would largely result from windblown salt and other operations in and around the Port and BlueScope precinct, with less than 1% being modeled as attributable to PKCT operations. Moreover, the proposal would not result in changes to the existing size or mode of operation of the coal stockpiles.

A number of submissions raised air quality as being an issue adjacent to the proposed coal haulage routes, as well as in close proximity to the collieries, particularly NRE No 1. The assessment has indicated that increasing road receival of coal would not increase dust emissions on haulage routes, provided that existing dust controls are diligently applied and tracking-out of coal along access roads close to both PKCT and the dispatching collieries is minimised. To ensure dust emissions along coal haulage routes are effectively managed, PKCT has committed to develop and implement a Driver’s Code of Conduct, which would include mitigation measures such as mandatory covering of trucks and wheel washing before departure from both PKCT site and its client mines.

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Port Kembla Coal Terminal Project Environmental Assessment Report

Figure 7: PKCT’s Dust Monitor Locations

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Port Kembla Coal Terminal Project Environmental Assessment Report

Conclusion The Department and DECC are satisfied that PKCT has assessed the potential air quality impacts in accordance with relevant DECC guidelines and appropriately considered reasonable and feasible dust mitigation measures.

The specialist air quality report indicates that increasing road receival of coal would not increase dust emissions, provided that existing dust controls are diligently applied and tracking-out of coal along access roads is minimised. The Department acknowledges that whilst the cumulative annual average concentrations of TSP are predicted to exceed relevant DECC criteria, this largely results from windblown salt and other operations in and around the Port and BlueScope precinct, with less than 1% being attributable to PKCT operations.

As such, the Department considers that air quality impacts are unlikely to be increased as a result of the proposal and concurs with the report’s conclusion that emissions from the proposal would not result in a significant contribution to overall dust levels in the vicinity of the project site or associated haulage routes.

Nevertheless, to ensure that the cumulative dust impacts of the project are effectively managed, the Department has recommended appropriate dust management conditions, which would require PKCT to: • comply with project-specific air quality criteria; • develop and implement an Air Quality Monitoring Program to include dust deposition monitoring, a monitoring protocol for evaluating compliance with air quality impact criteria, and proposed mitigation measures to ensure project-specific air quality criteria are met; • develop and implement a ‘Driver’s Code of Conduct’ to minimise dust impacts due to onsite operations and coal haulage movements; and • implement all reasonable and feasible mitigation measures to minimise dust emissions.

These requirements have been incorporated into the recommended conditions of approval. With these measures in place, the Department is satisfied that potential air quality impacts would be adequately managed.

5.4 Greenhouse Gas The EA contains a quantitative and qualitative greenhouse gas report prepared by Cardno Forbes Rigby. This report included an assessment of Scope 1 emissions (direct emissions from PKCT, including the operation of the coal loader and diesel consumption by loaders and trucks onsite), Scope 2 emissions (indirect emissions associated with electricity consumption at PKCT) and Scope 3 emissions (indirect upstream and downstream emissions, including the transport of coal and bulk products to PKCT and the shipping and combustion of energy and coking coal both in Australia and overseas) for both current and proposed operations.

A number of public submissions raised concerns regarding greenhouse gas emissions (GHGEs). In addition, DECC requested clarification regarding the assumptions and emissions factors used to calculate GHGEs. PKCT therefore included a revised greenhouse gas assessment as part of its Submissions Report, which gave full consideration of the National Greenhouse Accounts Factors 2008 . However, as with the original report, the revised report was based on assumed throughput figures for 2007 (5.2 Mt for road receivals and 6.5 Mt for rail) which were less than actual (5.5 Mt for road receivals and 6.7 Mt for rail). Projections for the year 2014 were based on 10 Mt received by road, but rail receivals were kept constant (6.5 Mt, as against projected receivals of 13.4 Mt). These inaccurate receival figures had a major impact on projected Scope 3 emissions, particularly for the combustion of product coal. The Department therefore sought a further revision to the greenhouse assessment, which was received from PKCT on 30 April 2009.

The final revised assessment indicated that GHGEs directly attributable to the project (ie Scope 1 and Scope 2 only) were around 19 ktpa CO 2-e in 2007, rising to around 22.8 ktpa CO 2-e in 2014 (see Table 6). The main contributors are diesel consumption onsite and the use of electricity from the grid. The small projected increase is surprising, and essentially reflects an estimate by PKCT that onsite electricity and diesel consumption and waste generated would all increase only by a factor of 20% between 2007 and 2014. This is despite the fact that coal and bulk product throughput is expected to increase by 92% over this time. However, even if electricity and diesel consumption increased by 60%, only some 30 ktpa CO 2-e of Scope 1 and Scope 2 emissions would occur in 2014, which is very low in comparison with existing State and national emissions (158.2 Mtpa CO 2-e and 560 Mtpa CO 2-e in 2007-08, respectively).

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Port Kembla Coal Terminal Project Environmental Assessment Report

PKCT has also reported a breakdown of Scope 3 emissions, including the transport of coal and bulk products to PKCT, sea transport of product coal and other products and the combustion of product coal (see Table 6). Road receivals (including from Dendrobium CPP via BlueScope Steel) in 2007 were 5.5 Mt, and have been assessed as 10 Mt in 2014. Projected emissions associated with road transport of coal increase from 7.5 ktpa CO 2-e in 2007 to 10.4 ktpa CO 2-e in 2014 (see Table 6). The low rate of increase reflects the fact that most increased road receivals are projected to come from Dendrobium CPP and NRE No 1, which have short transport distances when compared to the current average (dominated by Appin and West Cliff).

GHGEs associated with sea transport of product coal and other products is projected to increase from 920 ktpa CO 2-e in 2007 to 1765 ktpa CO 2-e in 2014 (see Table 6). However, this assessment is based only on one way trips, whereas two way trips were used for both road and rail receivals. There is a reasonable argument, therefore, that the sea transport emissions could be doubled, as most bulk carriers would not be transporting other bulk products from PKCT’s coal destinations, but rather travelling to another source of bulk product exports (perhaps back to PKCT) to pick up another delivery.

GHGEs associated with combustion of product coal would increase from 27.9 Mtpa CO 2-e in 2007 to 53.44 Mtpa CO 2-e in 2014 (see Table 6). This increase simply reflects the increase in overall tonnage of coal projected to be shipped from PKCT in 2014. Overall Scope 3 emissions are dominated by combustion of product coal, and to a lesser extent, by sea transport to international markets. Scope 3 emissions associated with road and rail receivals are very low in comparison. Rail-based emissions are actually higher than road per tonne of coal delivered (1.78 kg CO 2-e versus 1.37 kg CO 2-e), but this simply reflects the much greater average transport distance for coal delivered to PKCT by rail.

Table 6: Predicted Greenhouse Gas Emissions

Current 11/6 operation Proposed 24/7 operation

(FY07) (FY14) Scope 1 emissions (t CO 2-e pa) 340 408 Scope 2 emissions (t CO 2-e pa) 18,690 22,428 Scope 3 – road transport (receivals) (t CO 2-e pa) 7,516 10,413 Scope 3 – rail transport (receivals) (t CO 2-e pa) 11,930 17,166 Scope 3 – sea transport (dispatch) (t CO 2-e pa) 920,124 1,764,828 Scope 3 – product coal combustion (t CO 2-e pa) 26,928,450 51,649,650 Scope 3 – other (t CO 2-e pa) 630 705 Total Scope 3 emissions (t CO 2-e pa) 27,868,650 53,442,762 Total GHGE emissions (t CO 2-e pa) 27,887,680 53,465,598

While PKCT has presented information with respect to Scope 3 emissions in accordance with the Director -General’s environmental assessment requirements, it has highlighted that the Greenhouse Gas Protocol 2004 only lists Scope 3 emissions as an optional reporting requirement. The Protocol indicates that reporting Scope 3 GHGEs can result in double-counting, make comparisons between organisations and projects problematic and can potentially result in yield emission values higher than true values. For example, should the road and rail transport emissions noted above be applied to the bulk freight transport industry, the dispatching mines or PKCT (which is really only a transceival facility)? PKCT therefore argues that only those GHGEs directly attributable to the operation of the project (ie Scope 1 and Scope 2) should be considered as part of the assessment.

The Department accepts the basic premise of this position. The reality is that the great majority of Scope 3 emissions are driven purely by a current, existing global demand for energy, independent of the continued operation of PKCT. Some 96.6% of all emissions associated (both indirectly and directly) with the operation of PKCT derive from the burning of product coal. Some 93% of this combustion will take place overseas, and the remainder will occur at the Whyalla Steelworks. Whether or not the project is approved, this energy demand will remain. In the medium term, global energy demand will need to be addressed through demand management, market and pricing mechanisms to influence energy/ fuel choice and substitution of less greenhouse gas-intensive energy generation technologies. Until these measures are in place on a broad scale, there will be an on-going need for the supply of coal for the purpose of energy production. Refusal of the application for increased road receival hours at PKCT would not alleviate the current demand for energy, the need for coal to supply that energy or the resultant GHGEs. A refusal would instead mean the loss of the economic benefits likely to be realised through the operation of the project.

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Port Kembla Coal Terminal Project Environmental Assessment Report

It should be noted that the figures calculated by the Proponent present the likely magnitude of GHGEs and include a minor and acceptable level of uncertainty based on assumed scenarios, combustion equipment and fuel efficiencies. Some of these are noted above. The Department is satisfied that the uncertainties generated through these assumptions do not significantly alter the overall outcome of the greenhouse assessment or its implications.

Further, while PKCT may apply day to day measures to minimise the consumption of fuel and electricity, the Department does not consider that the emissions savings likely to be achieved through these measures would significantly alter the Scope 1 and Scope 2 emissions. Nonetheless, the Proponent has committed to review onsite electricity use and identify and implement economically-viable opportunities to reduce its usage.

The Department is therefore satisfied that in its greenhouse assessment dated 30 April 2009, the Proponent has applied appropriate data and calculation methodologies in deriving all significant Scope 1, Scope 2 and Scope 3 GHGEs. Conclusion

The assessment indicated that GHGEs attributable to the project (ie Scope 1 and 2) are in the order of 22,836 tonnes per annum of CO 2-e. The Department considers that these GHGEs are minimal in a global context. The great majority of Scope 3 emissions are associated with the burning of product coal, rather than the operation of PKCT itself. PKCT is in fact a minor (albeit crucial) component in the overall chain of production, delivery and consumption of coal for both energy and coking purposes. The Department considers that the great majority of Scope 3 emissions associated with the project is likely to eventuate whether or not the project is approved. There is no substantive reason, based on greenhouse policy, to prevent approval of the project.

5.5 Surface Water PKCT commissioned a water quality assessment to review its existing surface water management system and to predict potential water quality impacts due to the proposed increase in road receival of coal.

Stormwater runoff from PKCT’s coal stockpiles, internal roads and hardstand areas is captured and treated to remove coal fines prior to discharge into the Port Kembla Inner Harbour. Site runoff is directed to a number of collection ponds and then pumped to a treatment lagoon for chemically-aided coagulation and settlement (see Figure 8). The meandering layout of the lagoon promotes ‘beaching’ of suspended solids and dense macrophyte planting improves the uptake of other pollutants. Clarified water is then either discharged to the Port Kembla Inner Harbour or re-used onsite for dust suppression. Discharge of clarified water into the Port Kembla Inner Harbour is undertaken in accordance with PKCT’s Environmental Protection Licence (EPL).

The EPL specifies both concentration limits for discharges and requirements for monitoring. Table 8 outlines the applicable concentration limits. PKCT’s annual EPL report indicates that discharged water meets licence requirements.

The EA indicates that increased road-based deliveries would have no impact on the management of surface water at PKCT. Alterations to the existing surface water management system are not required.

Table 8: Wastewater Discharge Criteria

Pollutant Units 100 percentile concentration limit Oil and Grease mg/L 10 pH pH 6.5-8.5 Total Suspended Solids mg/L 50

The Department considers that the existing EPL conditions and surface water management systems would adequately control onsite water flows and mitigate any impacts on the environment due to project. Nonetheless, to ensure that the surface water impacts of the project are effectively managed, the Department has recommended that PKCT be required to prepare and implement a Water Monitoring Program, including wastewater assessment criteria, a monitoring protocol for evaluating compliance with these criteria and proposed measures to ensure project specific criteria are met. This requirement has been incorporated into the recommended conditions of approval.

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Port Kembla Coal Terminal Project Environmental Assessment Report

Figure 8: PKCT’s Existing Surface Water Infrastructure

5.6 Other Issues The project may generate a range of other environmental impacts – including visual amenity, waste, biodiversity and heritage impacts. However, these impacts are not predicted to be significant, and the Department is satisfied that they can be controlled, mitigated or managed either through the commitments made by PKCT or by the imposition of appropriate conditions of approval. These impacts as well as a number of socio-economic benefits are addressed in Table 9 below.

Table 9: Other Impacts

Aspect Consideration Recommended Condition Visual • PKCT is an existing facility that has been operating for • The Department has over 100 years and is located within an existing industrial recommended a condition area. requiring PKCT to prepare a • The proposed increase in road receival hours would not Landscape Management Plan result in changes to the size or operation of stockpiles. in consultation with Council, Additionally, no changes are proposed to onsite providing details of screening infrastructure. trees to be planted on the • Notwithstanding, PKCT has committed to improve onsite road receival earth bund and soft landscaping through the planting of trees on the road along the northern site receival earth bund and along the northern site boundary. boundary and outlining a • The Department considers visual impacts to be minimal, program for implementation. given that the proposal would not alter existing levels of visual impact from the site. Waste • PKCT has an existing waste management system which • The Department has prioritises waste avoidance, reduction, reuse, recycling, recommended conditions treatment and disposal. The proposed increase in road requiring PKCT to: receival hours would result in minimal increase in waste  monitor the amount of generated at the terminal and as such would not waste generated by the compromise the effectiveness of this system. development; • The Department considers the minimal change to the  investigate ways to volume of waste as a result of the proposal is immaterial minimise waste; and can be effectively managed by the existing waste  implement reasonable management system. and feasible measures to

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Port Kembla Coal Terminal Project Environmental Assessment Report

Aspect Consideration Recommended Condition minimise waste; and  report on waste management and minimisation in the Annual Environmental Management Report. Biodiversity • Green and Golden Bell Frogs have been sighted at the • The Department has PKCT site. However, the Seven Part Test undertaken as recommended a condition part of the assessment indicated that no adverse impact is requiring PKCT to prepare likely as a result of the proposed increase in road receival and implement a Green and hours. Golden Bell Frog • PKCT has committed to develop a Management Plan Management Plan. following a Green and Golden Bell Frog survey. • The Department considers that Green and Golden Bell Frog impacts are unlikely, provided that an appropriate management plan is developed and implemented. Socio- • The project would provide a number of social and • None required economics economic benefits for the region, as it would: • assist the ongoing viability of PKCT; • use existing facilities at PKCT more efficiently; • provide continued employment for 123 people; and • generate significant royalty and tax income for the Government.

Heritage • The Department considers that, given no changes are • None required proposed to the existing onsite infrastructure and operations, heritage impacts are unlikely.

Based on this consideration, the Department is satisfied that all minor environmental impacts are able to be adequately mitigated, managed, offset and/or compensated for. The Department has recommended a range of conditions to ensure this occurs.

6. RECOMMENDED CONDITIONS

The Department has prepared recommended conditions of approval for the project (see Appendix B), and summarised these conditions in Appendix A.

These conditions are required to: • prevent, minimise, and/or offset adverse impacts of the project; • set standards and performance measures for acceptable environmental performance; • ensure regular monitoring and reporting; and • provide for the ongoing environmental management of the project.

PKCT has accepted the recommended conditions.

7. CONCLUSION

The Department has assessed the project application, EA, submissions on the project, and PKCT’s Response to Submissions in accordance with the relevant requirements of the EP&A Act, including the objects of the Act and the principles of ESD.

The EA indicates that the proposed additional 446 truck movements a day (each way) would form a very small percentage of the overall vehicles travelling along the coal haulage routes, except for Bellambi Lane, and that normal traffic growth would have a significantly greater impact on the road network. Bellambi Lane would experience a higher percentage increase in the number of trucks, however this

NSW Government 27 Department of Planning

APPENDIX A - SUMMARY OF CONDITIONS OF APPROVAL

Aspect Condition Requirement(s) Schedule 2: Administrative Conditions Minimising Harm 1 Obligation to minimise harm to environment Terms of Approval 2-5 Project to be carried out in accordance with project documentation Limits of Approval 6-8 Restriction on receival of coal and bulk products to 10 million tonnes per annum and restriction on dispatch hours from NRE No 1 Colliery Management 9 Progressive submission of any environmental management plan or Plans/Monitoring monitoring program Programs Surrender of Consents 10 Obligation to surrender existing consents within 12 months Structural Adequacy 11 Structural adequacy of buildings and structures Demolition 12 Demolition requirements Operation of Plant and 13 Operation of plant and equipment requirements Equipment Dispute Resolution 14 Dispute resolution requirements Schedule 3: Specific Environmental Conditions Noise 1 Noise impact assessment criteria 2 Noise Monitoring Program 3 Requirement to seek continual improvement of noise performance Transport 4 Requirement to keep records of coal and bulk products received at the site each year 5 Traffic management 6 Driver’s Code of Conduct Air Quality 7 Air quality impact assessment criteria 8-9 Requirements to minimise air quality impacts during operations 10 Air Quality Monitoring Program Meteorological 11 Meteorological monitoring requirements Monitoring Surface Water 12 Discharge limits 13 Water Management Plan Biodiversity 14 Green and Golden Bell Frog Management Plan Visual Amenity 15 Lighting emissions 16 Landscape Management Plan Greenhouse and 17 Requirements to minimise energy use and greenhouse gas emissions Energy Efficiency 18 Greenhouse and Energy Efficiency Plan Waste 19 Requirement to monitor and minimise waste Hazards 20 Control of dangerous goods 21-22 Fire control Schedule 4: Environmental Management, Monitoring Auditing and Reporting Environmental 1 Preparation and implementation of an Environmental Management Management Strategy Incident Reporting 2-3 Requirement to report incidents Annual Reporting 4 Annual Environmental Management Report Auditing 5-7 Requirement to undertake regular independent environmental audits Access to Information 8-9 Requirement to make publically available any environmental management plans/programs/strategies Appendices Site Plans 1 PKCT site plans Statement of 2 PKCT’s commitments on the project Commitments Driver’s Code of 3 PKCT’s code of conduct for drivers hauling coal to its site Conduct

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APPENDIX B – CONDITIONS OF APPROVAL

NSW Government Department of Planning

APPENDIX C – CONSIDERATION OF ENVIRONMENTAL PLANNING INSTRUMENTS

Section 75I(2) of the Environmental Planning and Assessment Act 1979 requires that reference be made to the provisions of any State Environmental Planning Policy that substantially governs the carrying out of the project of any other environmental planning instrument that would (but for Part 3A of the Act) substantially govern the carrying out of the project. Consideration of the proposed development in the context of the objectives and provisions of the relevant environmental planning instruments is provided below.

State Environmental Planning Policy (Infrastructure) 2007 Infrastructure SEPP commenced in January 2008, consolidating and updating a number of State planning instruments, including SEPP 7 - Port Kembla Coal Loader and SEPP 11 – Traffic Generating Developments. The Infrastructure SEPP details planning provision and development controls for infrastructure works and development located adjacent to particular types of infrastructure. The project was referred to the RTA and Council for comment in accordance with the traffic generating development provisions of the Infrastructure SEPP. In clause 73, the Infrastructure SEPP details provisions specifically relating to the PKCT, which would need to be amended if this Part 3A application is approved by the Minister. This issue is further addressed in Section 3.4 of the report

State Environmental Planning Policy No 33 – Hazardous and Offensive Development SEPP 33 aims to identify proposed developments with the potential for significant offsite impacts, in terms of risk and/ or offence (odour, noise etc). A development is defined as potentially hazardous and/ or potentially offensive if, without mitigating measures in place, the development would cause significant risk and/ or offence to offsite receptors. The Department is satisfied that the project is not potentially hazardous or offensive, and that the proposal is generally consistent with the aims, objectives, and provisions of SEPP 33.

State Environmental Planning Policy No 55 – Remediation of Land SEPP 55 aims to ensure that potential contamination issues are considered in the determination of a development application. In particular, SEPP 55 requires consideration of whether the land subject to the development application is suitable for the proposed development. The project constitutes continued operations located in a heavy industrial area. The Department is satisfied that the project does not have a significant risk of being impacted by existing contamination given its historical land use, and that the project is generally consistent with the aims, objectives, and provisions of SEPP 55.

State Environmental Planning Policy No 71 – Coastal Protection SEPP 71 applies to the site as it is within the coastal zone. SEPP 71 aims to protect and manage the NSW coast through improving public access, protecting Aboriginal cultural heritage, protecting visual amenity and coastal habitats and managing the scale, bulk and height of development along the coast. In particular, SEPP 71 requires consideration of a number of matters prior to determining a development application.

The Department is satisfied that the proposed development is not inconsistent with the aims and matters for consideration in SEPP 71. The Department acknowledges that the project constitutes continued operations located in a heavy industrial area and does not require changes to existing infrastructure or operations. As such it would not alter existing levels of visual impact from the site. It would have a negligible impact on existing scenic qualities. Existing water quality protection measures would ensure that adequate protection is provided for aquatic flora and fauna, including Port Kembla Inner Harbour. The site is unlikely to contain any Aboriginal sites and does not contain other items of heritage/historic significance.

Illawarra Regional Environmental Plan No 1 This REP provides a framework for coordinated action to ensure best use of land resources, improvement in the quality of life, protection of regional needs and interests and the establishment of a stable and attractive climate for public and private investment in the Illawarra Region.

The proposal would enable PKCT to fully utilise its existing capacity whilst minimising impacts on the community by spreading the predicted increased number of truck movements over a greater number of hours, which would result in a lower number of trucks during the morning and afternoon peak periods and

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reduced congestion. The Department is satisfied that the project is generally consistent with the aims, objectives, and provisions of IREP 1.

Wollongong Local Environmental Plan 1990 PKCT site is zoned 5(A) Special Uses (Port) under the Wollongong Local Environmental Plan 1990 , and the proposed development is permissible with consent in this zone.

Draft Wollongong Local Environmental Plan 2009 PKCT site is zoned SP2 Infrastructure under the Draft Wollongong Local Environmental Plan 2009, and the proposed development is permissible with consent in this zone.

NSW Government Department of Planning

APPENDIX D – RESPONSE TO SUBMISSIONS

See attached CD-R

NSW Government Department of Planning

APPENDIX E – SUBMISSIONS

See attached CD-R

NSW Government Department of Planning

APPENDIX F – ENVIRONMENTAL ASSESSMENT

See attached CD-R

NSW Government Department of Planning