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Streamlining Offshore Environmental Approvals – Single-stage Regulation Impact Statement – National Offshore Petroleum Safety and Environmental Management Authority

On 28 February 2014, the Minister for the Environment and the Minister for Industry announced that environmental approvals for offshore petroleum and greenhouse gas activities would be solely undertaken by the National Offshore Petroleum Safety and Environment Management Authority (NOPSEMA). Previously, petroleum and greenhouse gas activities in Commonwealth waters that were likely to impact on matters of national environmental significance were subject to regulation under both the Offshore Petroleum and Greenhouse Gas Storage (OPGSS) Act 2006 and the Environment Protection and Biodiversity Conservation (EPBC) Act. Now offshore environment activities will only be regulated through the OPGGS Act and administered by NOPSEMA. The Regulation Impact Statement (RIS) prepared by the Department of Industry notes that the dual approvals process was largely duplicative and resulted in additional costs being imposed on industry. The RIS also notes that the extent to which the dual approvals process provides environmental benefits is unclear. The measure is estimated to reduce regulatory costs by $120 million per year to industry. The majority ($110 million) of these savings result from a reduction in the delay to the commencement of projects caused by the dual assessment process. It is considered that streamlining the assessment process will not result in any noticeable impacts on the environment. This is primarily because the OPGGS Act will apply the same fundamental test as the EPBC Act of whether potential impacts and risks to the environment are “acceptable” before an activity may proceed. The proposal has been assessed as likely to have a measurable impact on the broader economy with minor impacts on competition and has therefore been given a C rating (on a scale of A to D) in relation to the level of analysis required. The OBPR notes that as no decision has been previously made, an options-stage RIS was not required. A single-stage RIS was prepared and certified by the Department of Industry and has been assessed as adequate by the Office of Best Practice Regulation.