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Research Note 16 1999-2000

Assessment Bilateral Agreement under the Environmental Protection and Biodiversity Conservation Act 1999(1)

Angus Martyn
Law & Bills Digest Group
23 November 1999


What is a bilateral agreement?

The Environnmental Protection and Biodiversity Conservation Act 1999 (the 'EPBC Act') comes into force in July 2000. Under the EPBC Act, a bilateral agreement is a written agreement between the Commonwealth and a State or Territory which relates to virtually any matter connected with the environment. A key purpose of such bilateral agreements will be to allow accreditation of State(2) environmental processes and systems by the Commonwealth.(3) In this context, an accredited process is one that is run by a State for which the Commonwealth agrees beforehand satisfies its own legal and/or policy requirements, thus doing away with the need for a separate process.

It is likely that the most common initial use of bilateral agreements will be to accredit State environmental assessment processes. Such assessment bilateral agreements (s.47 of the EPBC Act) still leave the Commonwealth free to make its own decision about whether a proposal should go ahead after the completion of the State assessment process.(4) The EPBC Act also allows for so-called s.46 approval bilaterals, under which the Commonwealth would agree to be bound by decisions made by the State on the basis that those decisions were in accordance with a management plan that itself is part of the bilateral agreement. Such management plans must be tabled in Parliament and are subject to disallowance, giving either House effective power of veto over the Governments entry into approval bilaterals.

In terms of what they actually apply to, either type of bilateral agreement may cover what is described in the EPBC Act as a 'class of actions'. A bilateral may define a class as narrowly or broadly as the signing Governments wish. For example, an agreement might provide that the Commonwealth accredits a State's intended assessment process for a specified mine development. Alternatively, it might say that, until further notice, this process satisfies the Commonwealths requirements for any future mining assessments that arise in the next five years. Given the effort required to negotiate a bilateral, it is probable that their coverage will be relatively broad rather than restricted to individual projects.

How is an assessment bilateral agreement made?

For the Commonwealth to develop an assessment bilateral agreement, it must first publish(5) its intention to do so.

A draft agreement must then be published and public comment invited for a period of at least 28 days. In revising the draft, the (Commonwealth) Environment Minister must 'take into account' any comments received during this period and must 'consider' the role of interests of indigenous peoples in relation to a number of matters: see s.49A (C) of the EPBC Act.

Once the bilateral agreement has been completed and signed, the Commonwealth Minister must publish it, along with his/her reasons for entering into the agreement and a report on the public comments received on the draft agreement.

What standards apply to bilateral agreements?

The EPBC Act provides that before the Minister can enter into an assessment bilateral:

  • the Minister must be 'satisfied' that the accredited assessment process will in fact assess all impacts on Part 3 'matters of national environmental significance'
  • the State must agree that, in relation to certain actions,(6) the environmental impacts additional to those affecting matters of national environmental significance will be assessed to the 'greatest extent possible'
  • the Minister must be guaranteed of receiving a final assessment report containing sufficient information to allow him/her to make an 'informed decision' of whether to approve the relevant proposal
  • the agreement must include provision for the Auditor-General to audit Commonwealth (but not State) activities in relation to the agreement.

The Minister is also bound by certain conditions where agreements relate to some of the matters of national environmental significance. In general terms, these are that the Minister must be 'satisfied' that the agreement is 'not inconsistent' with Australia's treaty obligations, promotes management of any relevant world heritage properties or Ramsar convention wetlands in accordance with principles to be set down in regulations, and, in the case of threatened species/ecological communities, promote the species/communities conservation status and are not inconsistent with any recovery or threat abatement plans.

In addition, there are a number of proposed benchmarks for bilateral agreements listed in the Commonwealth's October 1999 consultation paper.(7) If adopted, these would be incorporated into regulations. The major proposals are:

  • Transparency-all assessment documents are to be publicly available unless they would be restricted under the EPBC Act on the grounds of national security, advice to the Minister or commercial in confidence
  • Guidelines for assessment-this proposal specifies that an agreement is to contain provisions that assessment guidelines are to be prepared in certain ways and have a certain scope according to the level of assessment decided upon. This may include, for example, that public comment be sought on draft guidelines
  • Level of assessment-s.87(1) of the EPBC Act sets out four increasingly intense 'levels' of assessment. Agreements must set out criteria which the relevant State Minister must consider in deciding on which general level to adopt. However, these criteria do not specify the choice of any particular level according to the anticipated impacts, degree of public concern etc
  • Public comment on draft documentation-the agreement must contain certain minimum standards for public consultation, including advertising of the assessment process. Under this proposed benchmark, it appears these standards will be similar to the those set out under the EPBC Act
  • Assessment and inquiry reports-agreements must specify that assessment and/or inquiry reports must contain certain things such as proposed conditions of approval, monitoring and enforcement provisions etc.

Suspected contraventions

Any person may refer to the Minister a matter that they believe is a contravention of the agreement. Except where the referral is vexatious/frivolous, or insufficient supporting information is supplied, the Minister must make a decision on the alleged contravention, including the taking of any remedial actions. The Minister's reasons must be published.

Remedial actions can include suspension or cancellation of the agreement if the Minister is not satisfied that the State is both complying with the agreement and giving effect to it such that it 'accords' with the object of the Act and 'promotes the discharge of Australia's obligations' under international agreements.

Except in emergency situations in relation to matters of national environmental significance, the Minister must consult with the relevant State or Territory Minister before suspending or cancelling the agreement and give 10 business days notice before it takes effect. Published reasons for suspension/cancellation must be given as soon as practical.

How does a suspension or cancellation affect existing proposals?

Once a decision has been made by the Minister on the basis of an assessment done under a bilateral agreement, the fact that the agreement is suspended or cancelled at a later stage does not invalidate the decision. For example, if the activity in question was approved by the Minister, it may continue to go ahead.

Also, if the Minister has already received the assessment report as defined under s.130(2) of the EPBC Act at the time of the suspension or cancellation, the Minister may still approve or reject the proposal in question.

If the assessment is incomplete or the report not received at the time of the suspension or cancellation, the Minister cannot make a decision and would have to make other arrangements. For example, the Minister could decide to trigger an 'assessment on preliminary information' process (see Part 8 of the EPBC Act) and make a decision at the completion of this assessment process.

Endnotes

  1. See also Research Note No. 15 which deals with environmental impact assessment triggers under the Act.
  2. 'State' should be read to include self-governing Territories, e.g. ACT.
  3. See the Commonwealth's Consultation Paper Regulations and Guidelines under the EPBC Act, October 1999, p. 5.
  4. These type of agreements are the focus of this research note.
  5. Details as to publishing requirements will be included in regulations yet to be drafted.
  6. The actions relate to the four Constitutional heads of power on which the EPBC Act relies: corporations, trade and commerce, external affairs and Territories.
  7. See endnote 2 above, p. 7.

 
 

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