Making better sense of Australia’s Environmental Impact Assessment

Surely we can put an end to overlap and duplication

By Peter Burnett

Environmental Impact Assessment (EIA) is a cornerstone of our system for protecting environmental values in Australia. A long standing problem with the EIA process has been the need to do them to meet both state and federal requirements.

You wouldn’t think that eliminating duplication and overlap between federal and state EIA processes (without compromising environmental outcomes) would be that hard. And yet so it has proven to be.

To date, there have been four attempts to address this issue, on each occasion by creating a mechanism under which the Commonwealth could accredit state EIA processes. Success has been limited and, with an election coming on, some are returning to this rather muddy policy watering hole. The Minerals Council of Australia, a major industry stakeholder, has renewed its call for more progress in this area, while Labor on the other hand recently ruled accreditation out, though it remains in favour of efficient regulation.

Surely there’s a solution here? To appreciate how difficult the issue is, consider what has gone before.

A short history of the fight to end duplication

Prime Minister Hawke was the first to put this topic on the agenda. He raised it as part of his 1990 ‘New Federalism’ push. The overarching theme was efficiency, and removing duplication in EIA was one way to achieve it.

The main result was an accreditation mechanism in the Intergovernmental Agreement on the Environment (IGAE, 1992). Unfortunately, attempts by several states to gain accreditation came to nought. This can be put down in part to the fact that Hawke had been replaced as Prime Minister by Paul Keating, and Keating wasn’t a great fan of cooperative federalism.

Next up it was Robert Hill, Environment Minister in the first Howard Government. He went one step further than the IGAE and included provision for accreditation in Australia’s new national environmental law, the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

There were two types of statutory agreement, one for accreditation of environmental impact assessment processes (‘assessment bilaterals’) and another for accreditation of state final decisions on development proposals (‘approval bilaterals’). With an assessment bilateral, there is only one EIA but still two decision-makers, one federal and one state. Only an approvals bilateral gets it down to a single process and a single (state) decision-maker. Despite the availability of a statutory process, agreement proved difficult and although some assessment bilaterals were negotiated in the early 2000s, approvals bilaterals proved a bridge too far.

The Gillard government was the next to take on the challenge, this time under the title of a ‘Seamless National Economy’ program. However, Prime Minister Gillard pulled the plug on negotiations, on the basis that the result of accrediting different state systems would be to ‘create the regulatory equivalent of a Dalmatian dog’.

Finally, the Abbott Government pursued a ‘one-stop-shop’ initiative to accredit the states. It managed to negotiate assessment bilaterals with every state, a modest achievement, but the holy grail of approvals bilaterals fell by the wayside when the Government discovered that it needed some minor tweaks to the EPBC Act to make accreditation work smoothly. Environment groups were successful in persuading several cross-benchers about the risks of environmental standards slipping, and the Government allowed its amendment Bill to lapse with the 2016 election, without calling on a final vote.

Is it worth another try?

Why is doing this so hard?

The first problem is partly that environment is a shared federal and state responsibility. Even though land management is primarily a state responsibility, the feds were actually on the scene first, with the Whitlam Government passing Australia’s first EIA law in 1974. The feds have been there ever since and I can’t see them vacating the field in favour of the states.

Nor can I see a solution in amending the Constitution. The Hawke Government looked at this in 1989 but, in contrast to some non-environmental Constitutional proposals it had taken to referendum, abandoned the idea without taking it to the people. Giving all the power to one level of government seems to be going too far, yet this is cake that resists the cutting knife.

The second problem is that decisions to approve (or not) development proposals like mines are discretionary. While an approvals bilateral under the EPBC Act could protect against egregious decisions (eg a development likely to cause an extinction), it’s much harder to write an agreement that would stop a pro-development state minister from simply ‘going easy’ on a developer by imposing weak conditions. Standards might be maintained on paper, but accreditation might exacerbate the existing weakness of EIA, the so-called ‘death of a thousand cuts’, by making each of those cuts a little larger.

This leaves the option of going around the problem. If we can’t solve it by accreditation, what about a completely different approach? If there are two objectives, reducing duplication while protecting the environment to a high standard, I think there are only two approaches that can work.

Environmental planning

The first is environmental planning, which involves getting ahead of the game and working out, comprehensively, where development can and can’t occur and under what conditions. If environmental planning is done well, approving particular developments can become quite straightforward. Trouble is, it’s expensive and may also be politically unpalatable because it can bring on all your development disputes at once, as the planners start consulting society about various possibilities, some of which may otherwise never have arisen.

The second is a very detailed set of rules, for example a rule prohibiting development in areas of critical habitat for threatened species. A major problem with this approach is that you either have to identify sensitivities such as critical habitat in advance (which starts to look like environmental planning) or identify them during assessment, which could weigh individual assessments down with some expensive and time consuming extra work, thus failing the test of efficiency.

The solution? If there were an easy option, governments would have taken it long ago. My own view is that we have to bite the bullet and do environmental planning. It would cost, but if done well (which has to include doing the consultation well) I think the investment would pay long term dividends, both environmental and economic. Trouble is, modern governments are very focused on the short-term and tend to give short shrift to long term propositions. The solution is there, but don’t hold your breath.

[Image by Sumanley xulx from Pixabay]

2 thoughts on “Making better sense of Australia’s Environmental Impact Assessment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s