Environment Protection (Scheduled Premises) Regulations 2017
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f+4 REGULATORY IMPACT STATEMENT – PROPOSED ENVIRONMENT PROTECTION (SCHEDULED PREMISES) REGULATIONS 2017 Department of Environment, Land, Water and Planning (DELWP) Environment Protection Authority Victoria (EPA) Publication 1639, October 2016. This Regulatory Impact Statement has been prepared in accordance with the requirements of the Subordinate Legislation Act 1994 and the Victorian Guide to Regulation. In accordance with the Victorian Guide to Regulation, the Victorian Government seeks to ensure that regulations are well targeted, effective and appropriate, and that they impose the lowest possible burden on Victorian businesses and the community. The Regulatory Impact Statement (RIS) process involves an assessment of regulatory proposals and allows members of the community to comment on proposed regulations before they are finalised. Such public input provides valuable information and perspectives, and improves the overall quality of regulations. This RIS has been prepared to facilitate public consultation on the proposed Environment Protection (Scheduled Premises) Regulations 2017 (proposed 2017 Regulations). A copy of the proposed 2017 Regulations is attached to this RIS. Public comment or submissions are invited on the Regulatory Impact Statement and the proposed 2017 Regulations. All submissions will be treated as public documents and published on EPA’s website unless the submission clearly indicates the submission is confidential. Please submit comments or submissions by no later than 5pm on Friday 16 December 2016 to: [email protected] or to: Scheduled Premises RIS c/o Policy and Regulation Unit Environment Protection Authority GPO Box 4395 Melbourne Victoria 3001 © EPA Victoria 2016. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1986. Disclaimer: This publication may be of assistance to you, but the State of Victoria and its employees do not guarantee that the publication is without flaw or is wholly appropriate for your particular purposes and therefore disclaims all liability for an error, loss or other consequence that may arise from you relying on any information in this publication. Contents ACRONYMS AND ABBREVIATIONS 7 EXECUTIVE SUMMARY 9 1 BACKGROUND 13 1.1 Introduction 13 1.2 Scheduled premises – the regulatory framework 15 1.2.1 The environment protection framework 15 1.2.2 Trends in scheduled categories 18 1.3 The need for regulation 19 1.4 Scope of the review 20 2 THE ROLE OF THE SCHEDULED PREMISES REGULATIONS 22 2.1 Introduction 22 2.2 The Scheduled Premises Regulations tools 23 2.2.1 Basis for assessing works approvals and licences 23 2.2.2 Works approvals 25 2.2.3 Licences 26 2.2.4 Works approval and licence exemptions 27 2.2.5 Financial assurances 28 2.2.6 Works approval and licensing fees 28 2.2.7 Landfill levies 29 2.2.8 Environment protection levy 29 2.3 EPA tools and approaches 30 2.4 Joint regulators and other regulatory schemes 31 2.4.1 Major projects 31 2.4.2 Land use planning 32 2.4.3 Occupational health and safety 33 2.4.4 Dangerous goods 33 2.4.5 Earth resources 33 2.4.6 Waterways 33 2.5 Interstate and international approaches 34 3 PROBLEM DEFINITION 36 3.1 Environmental harms 36 3.1.1 Air 36 3.1.2 Water 39 3.1.3 Land 41 3.1.4 Noise 44 3.2 Risk-based decision making 44 3.2.1 Industry analysis 45 3.2.2 Waste processing analysis 46 3.2.3 Outcomes 46 4 PROPOSED SUBSTANTIVE CHANGES 49 4.1 PIW management (A01) 49 4.1.1 Regulatory framework for PIW 49 4.1.2 Categorisation of waste 50 4.1.3 Transport and storage of PIW 51 4.1.4 Temporary storage of asbestos waste 51 4.1.5 Temporary storage of less hazardous industrial liquid wastes 54 4.2 Other waste treatment (A02) 56 4.2.1 Category description 56 4.2.2 Methodology for identifying ‘or other treatment’ of waste 57 Regulatory Impact Statement – Proposed Environment Protection (Scheduled Premises) Regulations 2017 2 4.2.3 E-waste reprocessing 58 4.2.4 Glass reprocessing 64 4.2.5 Conclusion and proposed approach 67 4.3 Sewage treatment (A03) 68 4.3.1 Industry description 68 4.3.2 Key environmental risks 69 4.3.3 Current controls 70 4.3.4 Conclusion and proposed approach 73 4.4 Organic waste processing (A07) 74 4.4.1 Industry description 74 4.4.2 Organic waste reprocessing markets 75 4.4.3 Key environmental risks 77 4.4.4 Current controls 78 4.4.5 Conclusion and proposed approach 82 4.5 Intensive animal industry (B01) 82 4.5.1 Key environmental risks 84 4.5.2 Current controls 84 4.5.3 Conclusion and proposed approach 87 4.6 Beverage manufacturing (D09) 89 4.6.1 Category description 89 4.6.2 Key environmental risks 89 4.6.3 Victorian market overview 92 4.6.4 Current controls 92 4.6.5 Conclusion and proposed approach 94 4.7 Potable water treatment (K03) 94 4.7.1 Key environmental risks 95 4.7.2 Current controls 95 4.7.3 Conclusion and proposed approach 98 4.8 Regulation 10 (general exemption relating to air emissions) 99 4.8.1 Description 99 4.8.2 Proposed approach 100 5 OBJECTIVES 101 6 OPTIONS 102 6.1 Overview 102 6.1.1 The base case 102 6.2 Description of the options considered 102 6.2.1 Option 1: Remake current Regulations 102 6.2.2 Option 2 103 7 ANALYSIS 104 7.1 Introduction 104 7.2 Summary of results 104 7.3 Analysis methodology 105 7.4 Option 1: Remake the current Regulations 106 7.4.1 Benefits from a reduction in harmful air emissions 108 7.4.2 Benefits from a reduction in harmful water emissions 109 7.4.3 Reduced costs of incidents for business 110 7.4.4 Reduced government incident response, site inspection and assessment costs 110 7.4.5 Reduced government incident remediation costs 111 7.4.6 Industry costs for annual reporting 111 7.4.7 Industry costs of compliance with licensee conditions 112 7.4.8 Industry costs of works approval applications 112 7.4.9 Industry costs of works approval exemption applications 112 7.4.10 Industry costs of works approval delay costs 113 7.4.11 Industry works approval compliance cost per premises 113 7.4.12 Government costs – administration of licensing 114 Regulatory Impact Statement – Proposed Environment Protection (Scheduled Premises) Regulations 2017 3 7.4.13 Government costs – Routine compliance investigations 114 7.4.14 Government costs – administration of financial assurances 114 7.4.15 Government costs – works approval application administration 114 7.4.16 Government costs – works approval exemption application administration 115 7.5 Option 2: Remake the current Regulations with incremental improvements 115 7.5.1 Option 2A - introducing application thresholds to allow for the temporary storage of asbestos 115 7.5.2 Option 2B – introducing application thresholds to allow for the temporary storage of liquid prescribed industrial waste 116 7.5.3 Option 2C - exempting sewage treatment plants from works approval requirements 117 7.5.4 Option 2D - exempting potable treatment plants from works approval requirements 118 7.5.5 Option 2E - limiting availability of exemptions for premises that emit PM2.5 118 7.5.6 Option 2F - categorising e-waste re-processors under A02 (other waste treatment) 121 7.5.7 Option 2G - categorising glass re-processors under H05 (‘Glass works’) 123 7.5.8 Option 2 – total quantifiable impacts 125 7.5.9 Fees 126 7.5.10 Non-quantified benefits 126 7.5.11 Minor changes to the Regulations 127 8 PREFERRED OPTION 128 8.1 Determination of preferred option 128 8.2 Impact on small businesses 128 8.3 Competition assessment 129 8.4 Implementation and enforcement 131 8.4.1 EPA assessment activity 131 8.4.2 EPA compliance and enforcement activity 131 8.4.3 Initial implementation activity 132 8.5 Evaluation strategy 132 8.5.1 Minimising risks to the environment 132 8.5.2 Impact on business and government 133 9 APPENDICES 134 A. Relevance of the Independent Inquiry into the EPA to the Scheduled Premises Regulations 134 B. Comparative research on interstate and overseas environmental regulators 135 C. Criteria for risk-based industry analysis 137 D. Principal reasons for scheduling each industry category 139 E. Level of activity relating to current scheduled premises categories 148 F. E-waste elements and persistent organic pollutants’ potential effects on the environment and human health 156 G. Draft Human Rights Certificate 159 H. Summary of proposed minor and administrative changes 160 I. Analysis data and assumptions 162 9.1 General assumptions 162 9.2 Specific assumptions for all options 162 9.2.1 Benefits from a reduction in harmful air emissions 162 9.2.2 Benefits from a reduction in harmful water emissions 164 9.2.3 Benefits from a reduction in incidents 165 9.2.4 Reduced government incident response, site inspection and assessment costs 167 9.2.5 Reduced government incident remediation costs 167 9.2.6 Industry costs for annual reporting 167 9.2.7 Industry costs of compliance with licensee conditions 167 9.2.8 Industry costs of works approval applications 167 9.2.9 Industry costs of works approval exemption applications 168 Regulatory Impact Statement – Proposed Environment Protection (Scheduled Premises) Regulations 2017 4 9.2.10 Industry costs of works approval delay costs 168 9.2.11 Industry works approval compliance cost per premises 168 9.2.12 Government costs – administration of licensing 168 9.2.13 Government costs – routine compliance investigations 168 9.2.14 Government costs – administration of financial assurances 169 9.2.15 Government costs – works approval application administration 169 9.2.16 Government costs – Works approval exemption application administration 169 9.3 Specific assumptions for Option 2 170 J.