Queensland Overhauls Environmental Offsets Scheme
Tuesday 18 February 2014 @ 2.45 p.m. | Legal Research
Last week the Queensland government introduced the Environmental Offsets Bill 2014 (bill) which aims to streamline the use of environmental offsets. Environmental offsets are used in property developments and infrastructure and resource projects as a type of compensation for “unavoidable environmental damage.” The Queensland government has taken the view that the current environmental offsets system comprises complex, inconsistent and overlapping policies at national, state and local levels leading to avoidable costs and delays for users of the system.
Key changes in the bill include:
- The development of a single coordinated environmental offsets framework to replace the existing five separate environmental offset policies administered by different agencies in Queensland;
- Reduced “red tape”;
- Removal of inconsistencies between specific issue offset policies;
- Removing the duplication of environmental assessment;
- Stronger environmental outcomes through strategic offset delivery, including the option of financial settlements. It is envisaged that a key benefit for proponents in using financial settlements is that they will not have to manage the on-going administration and running of the offset.
The new all-inclusive system for dealing with environmental offsets will involve a statutory scheme under which environmental offset conditions will be imposed on approvals.
The Bill does not change the primary approval processes, however, it establishes a shared process for offsets regardless of the legislation under which the offset is imposed.
The creation of the new offset system is centered on a number of key concepts and definitions established by the Bill. These include:
- An offset condition: a condition imposed under an act for a prescribed activity for a prescribed environmental matter;
- An environmental offset: an activity undertaken to counterbalance a significant residual impact of a prescribed activity on a prescribed environmental matter;
- A significant residual impact: a significant adverse impact, whether direct or indirect, of a prescribed activity on all or part of a prescribed environmental matter that will remain despite on-site mitigation measures;
- A prescribed activity: an activity directed by an authority under an Act for which an offset condition may be imposed and that is prescribed under a regulation;
- A prescribed environmental matter: a matter prescribed under a regulation and may be a matter of either national, state or local environmental significance.
A key feature of the Bill is that prescribed activities and environmental matters are required to be prescribed by regulation, which means that the detailed operation of the new system will be dependent upon a regulation that has not yet been prepared. The rationale is that this will allow the State to control what constitutes an environmental offsets policy and avoid the creation of multiple overlapping offset policies.
Environment Minister Andrew Powell said,
“This new framework will also reduce costs and regulatory burden and avoid duplication across the three levels of government… This simplified and scientifically-based approach will provide greater certainty that an offset can indeed be achieved.
There has been significant and ongoing engagement over two years across industry, government, natural resource management and conservation sectors in the development of the new framework.
By working with industry and not against them we will deliver strong environmental outcomes and sustainable economic growth for Queensland.
We know the environment is not a political plaything and this legislation will ensure environmental offsets policies are enshrined in law.”
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