Cost recovery: Part IV Environmental Protection Act

When does cost recovery begin?

Regulations outlining fees and charges were gazetted on 17 December 2021 and will come into effect on 1 January 2022. Fees for compliance activities will come into effect on 1 July 2023. A policy outlining fees for compliance activities will be prepared for 1 July 2022.

Why do you need to charge for assessments?

The introduction of a cost recovery model for EIA is a step towards sharing the cost of protecting the environment between the community and those who obtain a benefit from environmental assessments. 

Cost recovery will enable the State Government to better meet the expectations of industry and the community in protecting the environment. The department will use the funding received to provide an effective service while ensuring strong environmental protection remains.

Does this mean the assessment of my proposal will be quicker?

Other reforms, which are well underway – including changes to the EPA’s procedures, amendments to the EP Act and the introduction of Environmental Online – will mean assessments are completed in a more efficient manner. 

Access to recovered funds will enhance the department’s capacity to meet demand for assessment services during peak times. Resourcing will be able to be scaled up and down to match demand. 

How much will it cost proponents for an environmental impact assessment?

The cost of undertaking an assessment of a new proposal will vary depending on the level of assessment and the complexity of individual proposals.  The average cost of an assessment is expected to be approximately $448,000.

Invoicing of fees will be staggered throughout the assessment process. Proponents will only be expected to pay the fees for each stage of the EIA process as they are triggered. Payment of fixed fees is triggered when proponents request specific activities. 

See the full list of fees and an explanation and examples of how the fees will be charged in the implementation policy.

Can the department recover more than its costs? 

The powers provided under s48AA of the EP Act do not provide for the department to recover more than it costs to operate the scheme. Recovered funds are to be held in a special purpose account which is subject to the auditing and reporting requirements of the Office of the Auditor General. Annual revenue and expenditure will be published in the department’s annual report. 

How have the fees been decided, and do they reflect an accurate assessment of cost?

The fees are based on a cost model which reflects approximately 80 per cent of the cost of undertaking environmental assessments. The cost model was developed by an experienced consultant and reviewed by EY, which found that the methodology and assumptions applied by the department were ‘logical and reasonable’. 

The cost model will be independently reviewed after 18 months and made publicly available. The review will draw on a full financial year of data to assess whether the cost model continues to accurately reflect the cost of assessments. 

What are the key stages for charging?

Fixed, variable and compliance fees will be payable at various milestones during the EIA process. 

These charging points include referral, determination, assessment, EPA report on recommendations, and implementation. View a complete table of fees. 

Will a proponent be charged for changing a proposal after it has been approved?

Yes. The proponent must pay a fee of $48,000 if they request an approval of an amendment to an approved proposal, or amendment of conditions relating to an approved proposal, or both under s.45C of the EP Act.  

Will there be a transition period for industry or will charges begin in their entirety on 1 January?

Yes. Fees will not be charged retrospectively for work completed prior to 1 January. Proposals currently submitted and under assessment will only need to pay a fee of $48,000 for the preparation of the EPA report and recommendations. Other fees apply for additional requests and for proposals not yet at Stage 3 of the EIA process. 

For proponents with proposals referred prior to 1 January 2022, payment of fees due between 1 January and 30 June 2022 will be deferred until 1 July 2022. This is to assist proponents with potential budget cycle impacts during the transition period.

See Section 7 of the implementation policy for further information and explanation. 

Will charging for assessments be a disincentive for individuals and community groups to refer projects to the EPA?

Third-party referrers will not be charged, but where a third-party referral leads to a decision to formally assess a proposal, proponents will be required to pay. 

How will the department report on the amount of fees collected and how they are used? 

The department will publish revenue and expenditure, as well as the number of assessments, in its annual report. Reporting will be based on an annual evaluation. This will enable tracking and reporting of recovery and inform future reviews of fees and charges. Data on assessment activity will underpin these evaluations. A digital environmental impact assessment database (Environment Online) will become operational for Part IV of the EP Act in the first quarter of 2022. This will allow for more efficient and accurate collection of data relating to assessments.

Does everyone have to pay?

The regulations provide the department’s Director General with the discretion to consider fee reductions, waivers, refunds and extensions of time to pay Part IV fees and charges. 

See Section 6 of the implementation policy for an outline of these special circumstances.

The cost of assessments vary depending on how complex each proposal is.

See a table of fixed fees and a table for complexity fees for requests under Part IV of the Act.

Currently we are developing a fee calculator to help estimate fees payable.

Table of fees for cost recovery for requests under the Part IV of the Environmental Protection Act 1986 and as prescribed in the Environmental Protection (Cost Recovery) Regulations 2021.

[1] In r. 3 and EMP refers to an environmental management plan, environmental management system or environmental improvement plan.

Each fee unit in this table is charged at $16,000.

[2]     Species or ecological communities include threatened species or threatened ecological communities, as defined in the Biodiversity Conservation Act 2016 section 5(1), or listed threatened species or listed threatened ecological communities, as defined in the Environment Protection and Biodiversity Conservation Act 1999; new or undescribed species; species or ecological communities categorised as Priority 1 or 2 under the Conservation Codes at https://www.dpaw.wa.gov.au/images/documents/plants-animals/threatened-species/Listings/Conservation%20code%20definitions.pdf; vegetation units of regional significance; and stygofaunal or troglofaunal communities.

For further information on cost recovery and how it may apply to your proposal, please complete the form below: