EPA Victoria Compliance & Enforcement Review

1. International Conference on Environmental Compliance and Enforcement – The emerging global trend- Kolkata March 2013John Merritt, CEO EPA Victoria Compliance & Enforcement Review

2. The Need for Change

3. EPA Open Houses

4. Consultations Public Comment and Consultation on C&E Review closed on 24 October 2010 50 submissions received Consultation with 200 EPA staff and 200 business over 30 sessions Open Houses across Victoria (14) involve 300 participants (more than 200 in focus groups) Report completed in December 2010.

5. Participant Assessment at Open House Forums Q1 - Do you know more about EPA and the Enforcement Review now? • 59% Yes • 31.5% Maybe • 9.5% No Q2 – Do you feel that you were listened to? • 80.5% Yes • 16.5% Maybe • 3% No Q3 – Was the Open House a good way for you to obtain information and share your ideas? • 64.5% Yes • 26.5% Maybe • 9% No Q4 – Were EPA staff helpful, friendly and knowledgeable? • 87.5% Yes • 11.5% Maybe • 1% No Overall Assessment • 4.5% rated 10 / 10 • 25.5% rated 8 / 10 • 11% rated 9 / 10 • 27% rated 7 / 10 • 9% rated less than 5 / 10

6. Comments from the Open House Forums The EPA is crap with compliance and enforcement activities! EPA needs to be more consistent. EPA – “I’ve had a gut full and so has the rest of the community – fix it”. More public education. Thanks for the opportunity and for listening. More information on how to comply and clear information/steps. EPA is doing a good job. This is the first time in 30 years we have seen the EPA leadership actually listening to community.

7. Key themes – Business consultations A. EPA has moved too quickly to reassert its regulatory and enforcement role B. Compliance Framework attitudinal regulatory model makes sense but doubts raised that it has been used in practice. C. Risk-based regulatory model makes sense but levels of risk need to be more clearly spelt out - Appears too focused on acute incidents and impacts. - There should be more attention to widespread cumulative risks to the environment. - There should be a level playing field for businesses that always comply with administrative requirements. D. EPA should be prepared to give compliance advice E. There should be feedback on performance and in response to reports such as annual reports

8. Key themes – Community sessions A. The risk-based regulatory model is preferred but amenity is placed too low. B. Clearly state that protecting the environment includes protecting public health C. There should be more work done on prevention and awareness D. The EPA should be confident to enforce the law E. There should be more focus on prevention and public awareness - particularly of cumulative low risk impacts. F. The EPA should be the “authority” on information regarding the state of the environment, and the risks G. A significant amount of issues arise from poor planning or "buck-passing" between local government and EPA

9. Key themes – EPA Staff A.Modern regulator concept and guidance to protect the environment if in doubt is helpful and requires management support. B. There is a need for clarity and systems to ensure consistency between officers, training and adequate resourcing. C. EPA should be prepared to give compliance advice. D. More should be done to raise awareness and deal with cumulative impacts from low risk activity. E. The Compliance Framework attitudinal model makes sense but it misses concepts of risk and consequence. F. The risk-based regulatory model makes sense but amenity is placed too low G. Roles of councils and EPA are not clear and often there are gaps that EPA. H. EPA should be more strategic and proactive - dealing with diffuse risks I. There should be much better use of available data and transparency.

10. Key findings There is consensus on the concept of shared responsibility to protect the environment The social duty of care EPA had lost focus on its core regulatory role EPA has been largely reactive EPA over the years has lost expertise and experience Lack of clarity about what constitutes compliance EPA reluctant to express a view or give advice Ambiguity in the role of EPA and other agencies There is a key role for EPA in public health The community had been disengaged and was concerned with EPA’s approach

11. EPA’s Regulatory Approach

12. Our regulatory approach “Educating broadly to raise awareness of Victoria’s environmental laws, EPA’s role and to prevent harm to public health and the environment” “Setting environmental standards in state environmental and waste policy, regulations and through environmental licences” A modern regulator is inclusive and transparent – they explain their role and make their expectations clear

13. Our regulatory approach “Supporting people to comply through education, persuasion, guidance and providing advice on compliance” “Monitoring compliance with the law and relevant standards” A modern regulator is authoritative and consistent – they help duty-holders comply and monitor their performance

14. Our regulatory approach “Enforcing the law independently and assertively” “Influencing people through incentive schemes and collaborative actions to go beyond current regulatory requirements” A modern regulator is effective and accountable – they enforce the law and work with others to move it further

15. Key themes in recommendations Re-establish EPA as a prominent and credible regulator EPA to be more authoritative Provide better guidance and support to comply Will require significant investment in expertise ‘Open up’ the EPA Broaden the reach Proactive, evidence and risk based targeting, inspection and enforcement

16. Risk-based targeting

17. Risk based and responsive enforcement

18. Principles & Approach Targeted Proportionate Transparent Consistent Accountable Inclusive Authoritative Effective

19. Targeted

20. Proportionate

21. Transparent

22. Consistent

23. Accountable

24. Inclusive

25. Authoritative

26. Effective

28. The Annual Compliance PlanWhat is it? “The ACP informs the Victorian public of EPA’s planned and proactive compliance activities for the year.” The plan identifies: • What we will focus on and why • What we will respond to • What we will check during an inspection • What duty-holders can do to prepare The plan allows us to: • Schedule and promote our activities • Target our resources EPA Industry Support and Priorities

29. The Annual Compliance PlanWhat’s in the plan? How is work distributed? Pollution/emergency response: High risk public reports, duty-holder notifications, co-regulator reports and emergency events. Maintenance: Sites where an EPA permission, approval, exemption or direction exists. Strategic: Inspections directed by state or local operational strategies targeting sites, sectors or locations to remedy risks or historic issues Contingency: Ensures extraordinary requests or significant incidents can be managed. EPA Industry Support and Priorities

30. The Annual Compliance PlanHow much activity will be occurring and where? EPA Industry Support and Priorities

31. The Annual Compliance PlanHow did we choose activities? Risk assess: all activities inc. licence sites Prioritised issues: impacts & influence Select sites: based on criteria & continuously refine Focus: on follow-up of remedial notices • “A risk based regulator targets their activities and ensure efforts are proportional to that risk.” EPA Industry Support and Priorities

32. The Annual Compliance PlanHow did you prioritise licensed sites? - LORA • Licensed Operator Risk Assessment (LORA) – an outcome of C&E Review • Sets inspection frequency for sites • All sites inspected over a set period • Developed with business & community EPA Industry Support and Priorities

33. The Annual Compliance PlanHow does LORA work? • Site performance + systems = Risk factor • Info collected across six criteria for all sites • Collected during inspections over next 3 years