07 March 2008

Victoria's new Environment and Resource Efficiency Plans - are you ready?

The statutory timeframe for registration by companies required to prepare Environment and Resource Efficiency Plans ("EREPs") is fast approaching.

Does my company need to register?

On 31 March 2008, unless an exemption is in force, occupiers of premises which carry out a "scheduled activity" as at 1 January 2008 must register with the EPA.

Occupiers seeking an exemption from the requirement to prepare an EREP must apply to the EPA for an exemption by 31 March 2008.

Occupiers which fail to register or apply for an exemption may receive a penalty of approximately $6,600.

Is my operation a "scheduled activity"?

A scheduled activity is defined in section 4 of the Environment Protection Act 1970 as:

(a) "the use at a premises of environmental resources in excess of the threshold prescribed for resources of a kind prescribed for the purposes of this definition; or

(b) the disposal of waste off-site from a premises in excess of the threshold prescribed for wastes of a kind prescribed for the purpose of this definition."

The Environment Protection (Environment and Resource Efficiency Plans) Regulations 2007 clarify this somewhat confusing definition by setting out what is included within the definition of "environmental resources", along with the prescribed amounts.

"Environmental resources" are:

  • energy and energy sources. Energy comprises electricity (whether from renewable or other, sources) and, if used to provide energy, steam and compressed air. Energy sources are set out in Schedule 1 to the Regulations and include fuels derived from coal, petroleum products and sulphur (when converted to electricity) as well as a range of other combustible fuels;
  • water.

The prescribed thresholds are the use of:

  • 100 terajoules of energy; or
  • 120 megalitres of water,
100 terajoules of energy; or120 megalitres of water,

in any trigger year, being the financial year (beginning on 1 July 2006 or subsequent year) in which the scheduled activity was undertaken.

The EPA's website contains an online assessment tool which businesses can use to assess their resource use and determine whether they are required to register.

How do I register?

You can register your premises online via the EPA's website. When you log on for the first time you will need to create a new user account to obtain a user ID and password.

Can I seek an exemption from the requirement to register?

Under Regulation 7, a person may apply in writing to the EPA for an exemption from the requirement to register. Exemptions will be granted if the EPA is satisfied that:

  • the energy or water use which exceeded the threshold was uncharacteristically high; or
  • the activity which exceeded the threshold will cease or substantially change within 24 months immediately following the trigger year, such that the energy or water use will fall below the threshold levels.
the energy or water use which exceeded the threshold was uncharacteristically high; orthe activity which exceeded the threshold will cease or substantially change within 24 months immediately following the trigger year, such that the energy or water use will fall below the threshold levels.

If you would like more information on the requirement to register or EREPs generally, please contact Sallyanne Everett. 

Disclaimer
Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this bulletin. Persons listed may not be admitted in all states and territories.
For more information, contact...
Email: Sallyanne Everett, Partner
Tel: +61 3 9286 6965

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