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Chapter 5: the Planning Approvals Process

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Chapter 5: the Planning Approvals Process Chapter 5: The planning approvals process Key findings 5.1 Proponents raised concerns about the timeliness of key decisions being made in the wind farm approvals process. It takes between 4½ and 31 months for the Minister for Planning to approve wind farm applications in Victoria. Councils and/or The Victorian Civil and Administrative Tribunal take between 8½ and 51 months. These timeframes do not compare favourably with New South Wales or South Australia. 5.2 It takes between 2 and 9½ months for Planning Panels to prepare wind farm reports and another 1 to 15 months for the Minister for Planning to make a decision. 5.3 The timeliness of the Victorian approvals framework for wind farms could be considerably enhanced with the introduction of statutory deadlines, for instance with Planning Panels required to produce reports on renewable energy projects for the Planning Minister within 90 days. The Committee recommends that the Planning Minister should make a decision on wind farm applications within 90 days of receiving a Planning Panel report. 5.4 The 30 megawatt threshold that demarcates responsibility for wind farm applications between local councils and the Minister for Planning is outdated and increases the complexity of the approvals process. Furthermore local councils expressed concern that they currently do not have the capacity, expertise and resources to act as the responsible authority for wind farm projects. 5.5 Coordination between agencies and the accountability of state government departments involved in the planning approvals process would be significantly improved with the appointment of a departmental Project Manager for each renewable energy facility application. Technical Reference Groups should also be integrated into the approvals process for renewable energy facilities. 5.6 Local councils have an integral role in the approvals process for wind farms, whether they constitute the responsible authority for the project or not. The important role of local councils, as a key stakeholder in the approvals process, should be recognised and strengthened with the appointment of council representatives on renewable energy facility Technical Reference Groups. 5.7 The publication of a set of standard development approval conditions for wind farm projects would provide greater clarity for proponents. The approval conditions could address issues such as site refurbishment, tip height limits and flora and fauna management and reporting. The conditions would not preclude the application of additional policies developed by local government on renewable energy facilities. 103 Inquiry into the Approvals Process for Renewable Energy Projects in Victoria 5.8 In general, wind farm proponents were critical of the role of planning panels as part of the approvals process. However planning panels allow the community to express their views on wind farm applications in a direct and immediate way. 5.9 Local Councils are concerned with the current monitoring and enforcement provisions for wind farms. Councils advised the Committee that they do not have the information, expertise and resources to satisfactorily fulfil the monitoring and enforcement function. 5.10 The revised Victorian policy and planning guidelines on wind farms do not provide guidance on the emerging problem of cumulative impacts. Introduction This chapter discusses some of the main issues raised by wind farm proponents and local councils in relation to the approval of wind farm applications in Victoria. The Committee believes that many of the current shortcomings could be readily addressed, resulting in significant improvements to the timeliness, transparency, coordination and outcomes of the approvals process. There are four main stages to the approvals process for renewable energy projects in Victoria, as discussed in chapter three: • first stage: pre-application consultation; • second stage: primary consent phase; • third stage: secondary consent phase; and • fourth stage: monitoring, enforcement and decommissioning. The Department of Planning and Community Development (DPCD) administratively coordinates all of the approvals assessments ‘where they apply and it is practical to do so’.450 Mr Jeffrey Gilmore, Executive Director of Planning Policy and Reform, DPCD advised the Committee at a briefing that: ‘This enables efficiency for both proponents and decision makers’.451 Furthermore: ‘Victoria has a comprehensive, consultative and transparent decision making framework for wind energy facilities for the industry and public …’.452 Mr Gilmore also advised the Committee that: I think there are always ways we can make our processes better. I was at an industry conference in Adelaide … It was clear that people who are working in the Victorian system believe it is working for them. Those who view it from a long way away – and we have had some of these issues raised with us directly – do not see it that way. The fact is that Victoria’s approval processes are as quick, if not quicker, than those in South Australia. The regulatory approvals and requirements on the proponents 450 Mr J Gilmore, Executive Director, Planning Policy and Reform, Department of Planning and Community Development, briefing to the Environment and Natural Resources Committee, 21 July 2009 451 Mr J Gilmore, Executive Director, Planning Policy and Reform, Department of Planning and Community Development, briefing to the Environment and Natural Resources Committee, 21 July 2009 452 Mr J Gilmore, Executive Director, Planning Policy and Reform, Department of Planning and Community Development, briefing to the Environment and Natural Resources Committee, 21 July 2009 104 Chapter 5: The planning approvals process are equal to or better than in South Australia. So it is sort of an industry perception problem rather than a reality problem…453 The Regional Director of the Grampians and Barwon South West region of DPCD advised the Committee that: One of the things I noted in reading some of the [inquiry] transcripts is there has been quite a bit of criticism of the length of time it takes to get an approval. One thing I would note is that I think it was reportedly said that that is some other states it only takes two months. Whether that is correct or not, we are talking about major projects and multimillion dollars in a state which is the most populated in Australia, where there are lots of people and other things that may well be impacted. I would just like that to be noted in terms of how you manage a process – whether it is really short or long, most major projects – multimillion dollars – often can take 12 months or two years.454 Nevertheless, evidence received by the Committee indicates that there are shortcomings with the current approvals process. These issues are discussed in detail below. The Committee believes that there are a number of opportunities to improve the process – not only for proponents, but also the Victorian community, local government and state government departments and agencies. Timeliness of decision making One of the key differences between a council and the Minister for Planning being the Responsible Authority for an application is that time limits apply to the council decision making process. As explained in chapter 3, if a council does not make a decision on an application within 60 days, the matter can be taken to the Victorian Civil and Administrative Tribunal (VCAT). Councils in south west Victoria explained how this can influence the decisions made by wind farm proponents: Some proponents are submitting applications at 29.9 MW to avoid a panel and direct state Departmental involvement, and then go straight to VCAT. If a Council is the Responsible Authority, the State Government Department is seen to have less influence. This has been seen to be an advantage by proponents in avoiding being requested to undertake comprehensive studies. The 60 day limit for permits subject to appeal to VCAT is also seen by proponents to shorten the approval timeframes. Other proponents take the opposite view, as they believe the Minister is unlikely to refuse a wind energy facility outright, as this has only happened once in Victoria to date.455 Although Union Fenosa advised that this option is less attractive than it used to be, because of the time it now takes to get a hearing date at VCAT.456 453 Mr J Gilmore, Executive Director, Planning Policy and Reform, Department of Planning and Community Development, briefing to the Environment and Natural Resources Committee, 21 July 2009 454 Mr K Jackson, Regional Director of the Grampians and Barwon South West Region, Department of Planning and Community Development, Environment and Natural Resources public hearing – Port Fairy, 8 September 2009, transcript of evidence, p.210 455 Shires of Moyne, Southern Grampians, Glenelg, Corangamite and the City of Warrnambool, submission no.24, pp.6–7 456 Mr A Terrill, Associate, Tract Consultants, on behalf of Union Fenosa Wind Australia, Environment and Natural Resources Committee public hearing – Melbourne, 6 July 2009, transcript of evidence, p.28 105 Inquiry into the Approvals Process for Renewable Energy Projects in Victoria Several proponents raised concerns about the timeliness of key decisions being made in the approvals process. 457 Delays in the approvals process have an impact on investment decisions. As Marianne Lourey, Executive Director, Energy Sector Development, Department of Primary Industry explained ‘Whenever there is a lack of coordination or long time frames involved, they all do add
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