Executive summary of update

This update to the Protection of the Environment Operations (General) Regulation 2022 introduces explicit formulas for calculating load-based fees for assessable pollutants, which were previously undefined. It also clarifies the specific paragraph reference for land pollution in the Act's Dictionary, potentially altering the scope of prescribed matter. Additionally, the update includes future amendments to Schedule 10 definitions related to PFAS firefighting foam and updates to scheduled activities under the principal Act. The primary intent is to enhance clarity and precision in environmental fee calculations and regulatory definitions. The most significant practical consequence is the need for licence holders to re-evaluate their load-based fee calculations using the new formulas.

Impacted parties

This update primarily impacts licence holders subject to load-based licensing schemes, particularly those involved in electricity generation and coal mining, as well as entities whose activities are defined under the Act's land pollution provisions.

Change Analysis

1. Explicit Load-Based Fee Calculation Formulas

What changed?
Previously, Section 42 of the Regulation referred to "Formula 1" and "Formula 2" for calculating load-based fees but did not explicitly define these formulas. The update now provides the precise mathematical expressions for both:

• Formula 1 (when assessable load is greater than the fee rate threshold): Fee = $\frac{(2AL-FRT) \times PFU \times PW \times CZ}{10,000}$
• Formula 2 (otherwise): Fee = $\frac{AL \times PFU \times PW \times CZ}{10,000}$
  Similarly, Section 98(1)** and **Section 99(1), which previously referred to generic formulas for calculating the annual levy for Upper Hunter electricity generation and coal mining licence holders, now explicitly define these formulas:
• Section 98(1) (Upper Hunter electricity generation): EGL = (0.9xFxG/H)+(0.1xFxI/J)
• Section 99(1) (Upper Hunter coal mining): CML = (0.9×F×K/H×L/M)+(0.1×F×N/J)

Why it matters?
This change provides much-needed clarity and certainty for licence holders regarding the calculation of their load-based fees and annual levies. It removes ambiguity and ensures a standardized approach to fee determination. For businesses, this means a more predictable financial obligation and the ability to accurately forecast environmental costs. It also enables more precise internal auditing and compliance checks against the EPA's methodology.

2. Clarification of Land Pollution Definition

What changed?
Section 133(1), which prescribes matter for the definition of "land pollution" or "pollution of land" in the Act's Dictionary, has been amended. The reference to the specific paragraph in the Act's Dictionary has changed from "paragraph (b)" to "paragraph (a)(ii)".

Why it matters?
This is a substantive change to the legal definition of land pollution....