Failure to develop and implement an Environmental Management System (EMS) at each site could become a costly exercise in 2014 as the NSW EPA progresses towards its risk based licencing system.

The EPA will change the calculation of licence administration fees by introducing an Environmental Management Category – either A, B, C, D or E. The Category will act as a multiplier to the fee, resulting in either an increase, decrease (or no change). For example any sites classified as “E” will have their fee doubled, those classed as an “A” will be recognised as having the highest level of performance and receive a 5% reduction.

New approach under the Protection of the Environment Operations (General) Amendment (Licensing Fees) Regulation 2013

  • Each licence will be allocated an overall risk level of 1, 2 or 3. A higher risk level may result in more intensive monitoring and reporting obligations on the licensee.
  • Each site will be allocated an environmental management category considering the site’s enforcement history and regulatory actions, if any.  Answering “yes” to the question “Does the licensee have an EMS certified to ISO14001?” provides an automatic reduction of 40 points.  If the EMS is not certified, certain elements of a system such as records of regulator training earn points.

Two things to do right now

1 Arrange for an independent initial environmental review (IER) of air/odour, water, noise and waste.  This will identify environmental aspects and residual risks after controls; legal requirements related to the environmental aspects; pollution incidents and spills; the concerns of stakeholders and the community plus any other issues of note.

2 Use this information to inform the development or enhancement of an existing EMS.  I recommend building on Quality and Workplace Health and Safety Systems to integrate the management of environmental risks within the company’s existing risk framework.

For further information on the changes to the licencing system and how we can help please contact Suzy Orme.