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									                                      Environment Effects Statement
                                     Shaw River Power Station Project




2.           PROJECT ASSESSMENTS AND APPROVALS
Shaw River Power Station Pty Ltd (Shaw River Power) will need to obtain a number of approvals
prior to commencing construction and operation of the project. This environment effects statement
(EES) provides the information for the statutory approvals required to construct and operate the
project; each of the components of the project will require separate assessments and approvals.

This chapter lists the statutory approvals required by Shaw River Power and describes their
relevance to the proposed activities. It also describes the EES process and how the key
evaluation objectives and criteria of the scoping requirements issued by the Victorian Department
of Planning and Community Development have been addressed within the EES. Policies and
guidelines relevant to the environmental and social impact assessment and to the construction
and operation of the project are also listed, with pertinent requirements highlighted.

Sections 2.1 and 2.2, describe the approvals framework, including statutory approvals.
Section 2.3, describes the EES process; and Section 2.4 responds to the key evaluation
objectives.

2.1          Assessment and Approvals Framework
A range of legislation, policies, strategies and guidelines from the Commonwealth and the state
set out the approvals framework for the project.

Relevant Commonwealth legislation for the project includes:

•    Environment Protection and Biodiversity Conservation Act 1999.
•    Energy Efficiency Opportunities Act 2006.
•    Native Title Act 1993.

Relevant Victorian state legislation for the project includes:

•    Aboriginal Heritage Act 2006.
•    Catchment and Land Protection Act 1994.
•    Country Fire Authority Act 1958.
•    Crown Land (Reserves) Act 1978.
•    Dangerous Goods Act 1985.
•    Electricity Industry Act 2000.
•    Environment Effects Act 1978.
•    Environment Protection Act 1970.
•    Essential Services Commission Act 2001.
•    Flora and Fauna Guarantee Act 1988.
•    Gas Industry Act 2001.
•    Gas Safety Act 1997.
•    Heritage Act 1995.
•    Land Act 1958.
•    Land Acquisition and Compensation Act 1986.
•    Local Government Act 1989.
•    National Electricity (Victoria) Act 2005.
•    Occupational Health and Safety Act 2004.
•    Pipelines Act 2005.
•    Planning and Environment Act 1987.
•    Rail Corporations Act 1996.
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•   Road Management Act 2004.
•   Water Act 1989.
•   Wildlife Act 1975.

The key pieces of legislation that inform the statutory approvals process for the project are the
Victorian Environment Protection Act, Occupational Health and Safety Act, Pipelines Act and the
Planning and Environment Act. Several key statutory approvals are required under these Acts
before the project can proceed; each is discussed below as it relates to the proposed power
station, Iona–Orford Pipeline (the gas pipeline) and water supply pipelines.

Further information on the legislation, policies and guidelines that influence the approval process
for the project is detailed in Attachment 1.

2.1.1       Power Station Approval
The power station requires four main statutory approvals before construction or operation can
commence. These approvals are:

•   Generation Licence and Connection Agreement under the Electricity Industry Act.

•   Registration and Licence to Operate a Major Hazard Facility under the Occupational Health
    and Safety Act.

•   Planning Scheme Amendment under the Planning and Environment Act.

•   Works approval and licence to discharge under the Environment Protection Act.

The information required to prepare applications for the above statutory approvals is described in
the sections below.

Electricity Industry Act and Associated Legislation
The Electricity Industry Act provides for the establishment, administration and regulation of
electricity generation, transmission and distribution companies. The Australian Energy Market
Operator (AEMO), the company responsible for the planning, operation and development of
Australia’s electricity and gas transmission systems, has certain powers under the Act, including
the responsibility for issuing licences to generate, transmit, distribute and supply electricity in
Victoria.

Under the Electricity Industry Act, Shaw River Power requires approval to generate electricity in
the National Electricity Market (registration as a generator to AEMO) and connect into the state’s
electricity and gas transmission systems (via a Connection Agreement with and design approval
from the AEMO). Shaw River Power also requires an Electricity Generation Licence, which is
issued by the Victorian Essential Services Commission. These approvals do not rely upon the
EES to inform the process; however, they do take into consideration the EES stakeholder
consultation process.

The Electricity Generation Licence and National Electricity Market registration must be granted
before power generation can commence at the power station. As part of the licensing and
registration processes, the applications must be advertised publicly and public submissions must
be invited. The Connection Agreement under the National Electricity Rules is negotiated between
AEMO and Shaw River Power, with AEMO providing Shaw River Power with a formal offer to
connect the power station to the electricity transmission network. Shaw River Power can then
provide electricity generated by the power station to the national grid.


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Occupational Health and Safety Act
The Occupational Health and Safety Act is the cornerstone of legislative and administrative
measures to improve all aspects of occupational health and safety in Victoria. The Act sets out
the key principles, duties and rights in relation to occupational health and safety. The Act covers a
wide variety of circumstances, including the construction and operation of a Major Hazard Facility
such as a power station.

A Licence to Operate a Major Hazard Facility or Registration as a Major Hazard Facility can only
be granted to an operator of a registered facility who provides a compliant licence application and
Safety Case to WorkSafe Victoria. The Safety Case must be compliant with the Occupational
Health and Safety Act and set out how the facility will be operated safely to meet the requirements
of the Major Hazard Facility regulations.

Under the Occupational Health and Safety Act, Shaw River Power must obtain Registration or a
Licence to Operate a Major Hazard Facility prior to operating the Shaw River power station. The
Safety Case for the Shaw River power station will be informed through the preparation of the
EES, and the development of appropriate training packages and implementation plans, including
occupational health and safety management plans and emergency response plans.

The hazard and risk identification assessment discussed in Section 11.10, Hazard and Risk to
People and Facilities, will also inform the Safety Case for the Shaw River power station.

Planning and Environment Act
The Planning and Environment Act governs planning approvals in Victoria. This Act regulates the
use and development of land through planning schemes and the granting of planning permits.

The Planning and Environment Act is the principal Act regulating the use, development and
protection of land in Victoria. The Act provides for a coordinated approach to planning through the
Victorian Planning Provisions, which contain standard planning provisions used in all Victorian
planning schemes.

The Act sets out processes for preparing planning schemes for municipal and other declared
districts, for preparing amendments to the Victorian Planning Provisions and planning schemes
and for preparing planning permits. The policy framework and implications for the project are
discussed in the sections below.

State Planning Policy Framework
The State Planning Policy Framework (DPCD, 1997) is the collection of state planning policies
common to all Victorian planning schemes. State planning policies relevant to the project include:

•   Clause 11.01: Introduction. Net community benefit and sustainable development must be
    considered in all planning decisions.

•   Clause 11.03-2: Environment. Planning is to contribute to the protection of air, land and water
    quality and the conservation of natural ecosystems, resources, energy and cultural heritage.

•   Clause 11.03-3: Management of Resources. Planning must have regard to the conservation
    and efficient use of natural resources, including energy.

•   Clause 11.03-5: Economic Well-Being. Planning can support and foster economic growth and
    development by ensuring that development assists in communities achieving their economic
    potential.


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•   Clause 15.01: Protection of Catchments, Waterways and Groundwater. Planning authorities
    must have regard for relevant aspects of regional catchment management strategies and
    ensure that development and works on or near waterways provide for the protection and
    enhancement of environmental qualities.

•   Clause 15.04: Air Quality. Planning and responsible authorities must consider the state
    environment protection policies, including air quality management. There should be regard by
    responsible authorities for the potential for conflicts between different land uses or
    developments because of air emissions.

•   Clause 15.05: Noise Abatement. Community amenity must not be reduced by noise emissions,
    and planning and responsible authorities must consider the potential for conflicts between
    competing land uses or developments due to noise emissions.

•   Clause 15.07: Protection from Wildfire. The minimisation of risk to life, property, the natural
    environment and community infrastructure from wildfire is a critical component of planning
    decisions.

•   Clause 15.09: Conservation of Native Flora and Fauna. This clause aims to assist in the
    protection and conservation of biodiversity values within the landscape. The Victorian Native
    Vegetation Management: A Framework for Action (NRE, 2002c) requires a three-step
    approach to the retention of native vegetation. The first step is to avoid the removal of native
    vegetation, the second step is to minimise the loss of native vegetation, and the final step is to
    provide appropriate offsets for any loss in vegetation to achieve net gain.

•   Clause 15.12: Energy Efficiency. Planning must consider efficient use of energy and the
    minimisation of greenhouse gas emissions to encourage appropriate land use and
    development.

•   Clause 17.03: Industry. This clause contains provision for separation and buffer areas between
    sensitive uses and industry. This is to reduce the potential for impacts on amenity, health and
    the environment.

•   Clause 18.11: High Pressure Pipelines. Pipelines are to be planned in accordance with the
    Pipelines Act, to allow for appropriate buffers to sensitive land uses and to minimise impacts
    on environmentally sensitive areas. Planning should ensure that there is appropriate provision
    for environmental management plans during construction and management of the pipelines.

Amendment C36 to the Moyne Planning Scheme
The proposed power station site is owned by Shaw River Power and is zoned Farming Zone
under the Moyne Planning Scheme. The development of industry within this zone is a prohibited
use; therefore, a planning scheme amendment is proposed to allow the development of the power
station on the site. The planning scheme amendment (Amendment C36 to the Moyne Planning
Scheme) will rezone the site from Farming Zone to Special Use Zone (SUZ2 for the Moyne
Planning Scheme); this is discussed further in the next section.

In addition, an Environmental Significance Overlay (ESO4 for the Moyne Planning Scheme) will
apply to Farming Zone land within approximately 400 to 1,200 m of the power station. This
reflects the 34 dB(A) contour relating to potential noise impacts from the operation of the power
station.

The planning scheme amendment also proposes amendments to the schedules for clauses 52.03
and 52.17. This is discussed further in the section below.

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The planning scheme amendment has been prepared under the Planning and Environment Act to
reflect the change in land use from agricultural production to power generation. The planning
scheme amendment is exhibited concurrently with the EES and other approval documents.

Special Use Zone (SUZ 2)
The Special Use Zone will provide for the implementation of the State Planning Policy Framework
(DPCD, 1997), the Moyne Planning Scheme (DPCD, 2008b) and the Corangamite Planning
Scheme (DPCD, 2008a) (both of which include the Municipal Strategic Statement and local
planning policies), while facilitating the development and use of a gas-fired power station.

The proposed schedule 2 exempts the proponent from having to seek a planning permit to
develop a gas-fired power station and its associated works and buildings. The approval to
construct and operate a power station within Moyne Shire will be granted through the instruments
of building and works permits. The development must be in accordance with a development plan
that is to the satisfaction of the responsible authority, Moyne Shire Council.

Environmental Significance Overlay (ESO 4)
The Environmental Significance Overlay will require a permit for the development of
accommodation within the noise-affected areas surrounding the power station site. The area has
been determined by the 34 dB(A) noise contour at the nearest occupied residences during
operation of the power station in adverse weather conditions.

The objectives of the Environmental Significance Overlay are to ensure that:

•   The establishment of inconsistent and potentially conflicting accommodation uses and
    developments nearby does not detrimentally affect the construction and operation of the Shaw
    River Power Station.

•   Any accommodation land use or development is not established without prior consideration of
    potential noise impacts from the operation of the power station.

•   Acoustic measures are applied in the design of any accommodation development in proximity
    to the Shaw River Power Station.

Amendment to the Schedule to Clause 52.03 of the Moyne Planning Scheme
The amendment to the schedule to Clause 52.03 proposes to exempt certain aspects of the
proposal from planning approvals for:

•   Altering the access to Hamilton–Port Fairy Road at its intersection with Riordans Road.

•   Native vegetation removal associated with the upgrading of the Riordans Road and Hamilton–
    Port Fairy Road intersection.

•   The use of land owned by Shaw River Power to the west and east of Old Dunmore Road for a
    workers construction camp.

•   The construction of the water supply pipelines from Port Fairy to the power station site.

The incorporated document will replace the controls that provide the above exemptions from
planning permits.

Amendment to the Schedule to Clause 52.17 of the Moyne Planning Scheme
The amendment to the schedule to Clause 52.17 is to provide an exemption from the requirement
for a planning permit to remove native vegetation from the power station site and within the

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Special Use Zone on the basis that such vegetation removal will have been assessed through this
EES process. Native vegetation removal will be conducted in accordance with Victoria’s Native
Vegetation Management: A Framework for Action (NRE, 2002c); and therefore, net gain will have
to be achieved.

Environment Protection Act
The Environment Protection Act establishes the Environment Protection Authority Victoria (EPA)
to, among other things, control discharges of waste to the environment, advise on environmental
policy, promote resource efficiency, reduce environmental impacts and control environmental
impacts of scheduled activities. The Act sets out the principles by which the environment should
be managed.

Controls on discharges are imposed via works approvals and licences. The Environment
Protection (Scheduled Premises and Exemptions) Regulations 2007 specify the kinds of
premises, activities and discharges that require works approvals and licences to discharge.

The proposed power station is classified as a Scheduled Premises under the Environment
Protection (Scheduled Premises and Exemptions) Regulations. A works approval and licence to
discharge will be required under the Environment Protection Act for the power station. The works
approval for the power station will be triggered by the proposed power station use, the potential
air emissions from the power station, sewerage treatment and the on-site water treatment
infrastructure used to upgrade the process water for power generation.

2.1.2       Gas Pipeline Approval
The gas pipeline requires three main statutory approvals before construction can commence.
These approvals are:

•   Licence to Construct and Operate a Pipeline under the Pipelines Act.
•   Works approval under the Environment Protection Act.
•   Connection Agreement under the Gas Industry Act.

The statutory approvals and the key legislation are discussed in the sections below. Further
ancillary approvals are described in Section 2.1.4.

Pipelines Act
The Pipelines Act and the Pipelines Regulations 2007 are the key legislation for the construction
and operation of onshore transmission pipelines. The legislation does not include pipelines
constructed for the transmission of water. The Act outlines provisions for consultation; acquiring of
easements; and the environmental, health and safety requirements of operating a gas pipeline. A
Licence to Construct and Operate a Pipeline must be obtained before construction can
commence on the gas pipeline from Iona to the power station near Orford.

It is proposed to apply for two Licences to Construct and Operate a Pipeline for the gas pipeline.
One licence will be for the pipeline from Iona to the compressor station, and the second licence
will be for the pipeline from the compressor station to the power station. The gas pipeline is
exempt from planning controls as approval is provided under the Pipelines Act.




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Licence to Construct and Operate a Pipeline
To construct and operate a pipeline, a proponent must have the following:

•   Permission to access private and public land.
•   An approved consultation plan.
•   An approved safety management plan for construction.
•   An approved safety management plan for operation.
•   An approved environment management plan for construction.
•   An approved environment management plan for operation.
•   Written consent to operate a pipeline from the Minister for Energy and Resources.
•   A Licence to Construct and Operate a Pipeline.

To achieve a Licence to Construct and Operate a Pipeline, a number of steps must be
undertaken. The steps involved are discussed below.

Consultation Plan
A consultation plan must be prepared and approved by the Minister for Energy and Resources
(Department of Primary Industries) before giving notice of the intention to enter land or notice of a
pipeline corridor to landholders (i.e., owners and occupiers). The consultation plan is designed to
convey essential information to the landholders about the gas pipeline project by the proponent.
Shaw River Power has an approved consultation plan in place for the project. The Minister
approved the consultation plan for the gas pipeline in October 2008.

The purpose of the consultation plan is to outline the procedures the proponent will undertake for
consultation with landholders. The proponent will be responsible for consultation throughout the
life of a project, including construction and operation of the pipeline.

Aspects covered in the consultation plan include details of the pipeline, how potential adverse
impacts will be managed, compensation for affected landholders, compulsory acquisition and
contact information for the proponents of the pipeline. See Section 4, Consultation and
Communication, for further details of the consultation plan.

Safety Management Plan
The safety management plan must be accepted by Energy Safe Victoria prior to the
commencement of the construction or operation of the gas pipeline. The plan must include a
construction safety management plan and an operation safety management plan. The
construction safety management plan must be prepared in accordance with Australian Standard
AS 2885.1:2008, Pipelines - Gas and Liquid Petroleum - Design and Construction; and the
operating safety management plan must be prepared in accordance with Australian Standard
AS 2885.3:2001, Pipelines - Gas and Liquid Petroleum - Operation and Maintenance. The
construction and operation safety management plans must be accepted and approved by Energy
Safe Victoria.

The safety management plan must provide technical details of the pipeline, identify the risks to
the safety of the public from the operation of the pipeline and set out what the licensee will do to
eliminate or minimise the risks. A response plan must also be included to demonstrate that
performance standards are in place that ensure the continued safe operation of the pipeline. The
safety management plans will be prepared prior to construction of the gas pipeline.




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Environment Management Plan
An environment management plan for construction and an environment management plan for
operation must be approved and accepted by the Minister for Energy and Resources (Department
of Primary Industries) before the commencement of the construction and operation of the pipeline
respectively.

The environment management plans will describe the pipeline, the pre-existing environment, any
potential environmental impacts and risks, and environmental performance objectives and
standards for the construction and operation of the pipeline.

Environment Protection Act
The emissions of nitrogen oxides from the compressor station for the gas pipeline will trigger the
requirement for a works approval under the Environment Protection Act. The trigger is the
generation of more than 100 kg/day of nitrogen oxides under the Environment Protection
(Scheduled Premises and Exemptions) Regulations 2007. A works approval application has been
prepared for the compressor station and is exhibited concurrently with this EES.

Gas Industry Act and Associated Legislation
The Gas Industry Act regulates the gas industry in Victoria. The Act provides legislative
requirements for the distribution, transmission and sale of gas. A licence is required to distribute
or retail gas within Victoria.

To connect the proposed gas pipeline into the South West Pipeline, Shaw River Power must
obtain a Connection Agreement under the National Gas Rules from the AEMO for the Victorian
gas transmission system under the Gas Industry Act.

2.1.3       Water Supply Pipelines and Associated Infrastructure Approval
The water supply pipelines and associated infrastructure (including booster pumps, chlorination
stations etc.) require three main statutory approvals before construction can commence. These
approvals are:

•   Licence to construct and operate works under the Water Act.

•   Works approval and licence to discharge for the upgrade to the Port Fairy water reclamation
    plant under the Environment Protection Act.

•   Planning permit or exemption under the Planning and Environment Act.

Further approvals for the construction and operation of the water supply pipelines are discussed
in Section 2.2.

Wannon Water will be responsible for the construction and operation of the water supply pipelines
to the power station. Shaw River Power has entered into an agreement with Wannon Water for
the distribution and treatment of process and amenity water to the power station site. Wannon
Water will be responsible for obtaining approval for the treatment of recycled water at Port Fairy.
This approval will be sought separately to this EES.

Water Act
The purpose of the Water Act is to allocate, conserve and manage terrestrial surface water and
groundwater. The Act protects the rights of the Crown to the use, flow and control of water in a
waterway and of groundwater. It also protects the rights of persons (private individuals) to take
water for that person’s domestic and stock use.

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The Minister may allocate water resources through bulk water entitlements and may issue
licences to take and use water from waterways and groundwater. A licence is required to
construct, alter, remove or abandon works on a waterway, including works to deviate –
temporarily or permanently – a waterway.

Permission will need to be sought to construct the water supply pipelines through several
waterways, including Ware Creek. The design and function of the water supply pipelines will also
have to meet the requirements of the local water authorities and the Department of Sustainability
and Environment (DSE).

Planning and Environment Act
The proposed Amendment C36 to the Moyne Planning Scheme will exempt Wannon Water from
the requirement to apply for planning permission for the construction of the water supply pipelines
from Port Fairy to the power station site. This includes exemption from the requirement for a
planning permit for the removal of native vegetation; however, the requirements of Victoria’s
Native Vegetation Management: A Framework for Action (NRE, 2002c) must still be met,
including the achievement of net gain. An offset management plan will be prepared for approval
by DSE to outline how this net gain will be achieved.

Environment Protection Act
The proposed recycled water treatment plant at Port Fairy is classified as a Scheduled Premises
under the Environment Protection (Scheduled Premises and Exemptions) Regulations. A works
approval and licence to discharge will be required under the Environment Protection Act for the
upgrade to the Port Fairy water reclamation plant and will be submitted by the proposed plant
operator, Wannon Water. The works approval for the recycled water treatment plant will be
triggered by the sewage treatment and the on-site water treatment infrastructure used to upgrade
the reclaimed water from the Port Fairy water reclamation plant.

2.1.4       Other Environmental Approvals
Upon receiving the key statutory approvals, a number of other approvals will be required. These
will be informed by the EES and the key statutory approvals.

Environment Protection and Biodiversity Conservation Act (Cwlth)
The Environment Protection and Biodiversity Conservation Act (EPBC Act) provides for the
protection of the environment, specifically matters of national environmental significance. Actions
likely to have a significant impact on a matter of national environmental significance require
assessment and approval under the EPBC Act.

The EPBC Act includes requirements for the assessment and approval by the Commonwealth of
activities that will or are likely to have a significant impact on World Heritage areas, National
Heritage places, wetlands of international importance, listed threatened species and communities,
or listed migratory species. The EPBC Act also requires the assessment and approval of nuclear
actions, actions in the marine environment and actions on Commonwealth land that are likely to
have a significant impact on the environment.

Three referrals for the project have been submitted to the Commonwealth Minister for
Environment, Heritage and the Arts under the EPBC Act. Shaw River Power submitted the power
station referral and gas pipeline referral, and Wannon Water submitted the water supply pipelines
referral. The status of the EPBC referrals is:



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•   Power station: not a controlled action, determined 18 November 2009 (Referral No.
    2009/5088).

•   Gas pipeline: not a controlled action if undertaken in a particular manner, determined 4
    November 2009 (Referral No. 2009/5089).

•   Water supply pipelines: not a controlled action if undertaken in a particular manner,
    determined 27 January 2010 (Referral No. 2009/5091).

Aboriginal Heritage Act
The Aboriginal Heritage Act requires a cultural heritage management plan for all projects
assessed under the Environment Effects Act. Under the Act, it is an offence to do something that
will harm or is likely to harm Aboriginal cultural heritage, unless the action is performed in
accordance with an approved cultural heritage management plan or a permit.

Two cultural heritage management plans will be prepared for the project: one will be prepared by
Shaw River Power for the power station and gas pipeline, and the other will be prepared by
Wannon Water for the water supply infrastructure.

Registered Aboriginal parties for the project area will be consulted regarding the plans and the
proposed project. The registered Aboriginal parties will be responsible for approving the cultural
heritage management plan. Aboriginal Affairs Victoria assumes the responsibilities of the
registered Aboriginal party where one has not been appointed for a particular area.

Other Consents and Authorities
In addition to all the approvals discussed above, other consents, permits and authorities that will
be required for the Shaw River Power Station Project include:

•   The consent of the Victorian Minister for Environment, Climate Change and Innovation, who is
    responsible for the administration of the Crown Land (Reserves) Act, to carry out works in the
    waterway and public purposes reserves along the gas pipeline alignment. Such consent must
    be granted in accordance with the future Act requirements of the Native Title Act.

•   A permit under the Flora and Fauna Guarantee Act to ‘take’ protected flora, including flora of
    listed communities, if required, and consent to clear native vegetation from Crown land
    reserves, including roadside reserves.

•   A permit under the Wildlife Act to capture and release or translocate wildlife, if required.

•   Consent to construct pipelines on or beneath a waterway in accordance with the Water Act.

•   Consent to construct pipelines across or beneath roads in accordance with the Local
    Government Act and the Road Management Act.

•   Consent to construct pipelines through a railway reserve in accordance with the Rail
    Corporations Act.

•   Consent to disturb known post-contact historical cultural sites in accordance with the Victorian
    Heritage Act.

•   Asset protection permits from road authorities.

•   Overdimensional load permits for the transportation of megalift loads.



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2.2            Summary of Key Approvals and Assessments
Table 2.1 provides a summary of the key environmental and planning approvals required for the
project. The Amendment C36 to the Moyne Planning Scheme, application for two Licences to
Construct and Operate a Pipeline and the three works approval applications will be placed on
public exhibition concurrently with the EES.

Table 2.1          Summary of key approvals and assessments required
Activity                         Legislation                  Approval/Assessment             Relevant Authority
Shaw River Power Station Project
Whole of project         Environment Effects Act         The preparation of an EES is a      Minister for Planning.
                                                         process determined by this Act.
                                                         It facilitates decision-making in
                                                         relation to the other approvals
                                                         set out below in this table.
Power Station
Operation                Electricity Industry Act        Generation Licence and              Australian Energy
                         National Electricity            Connection Agreement.               Market Operator.
                         (Victoria) Act
Operation                Occupational Health and         Registration and Licence to         EPA.
                         Safety Act                      Operate a Major Hazard Facility.    WorkSafe Victoria.
Construction and         Planning and Environment        Planning Scheme Amendment           Minister for Planning.
operation                Act                             Development Plan and Building
                                                         Permit.                             Moyne Shire.
Construction and         Environment Protection Act      Works Approval (prior to            EPA.
operation                                                construction).
                                                         Licence to Discharge (prior to
                                                         operation).
Construction and         Environment Protection          Assessed as not a controlled        Commonwealth
operation                and Biodiversity                action.                             Minister for
                         Conservation Act                                                    Environment, Heritage
                                                                                             and the Arts.
Gas Pipeline
Pipeline construction    Pipelines Act                   Licence to Construct and            Minister for Energy and
and operation                                            Operate a Pipeline.                 Resources
                                                                                             (Department of Primary
                                                                                             Industries).
Compressor station       Environment Protection Act      Works Approval (prior to            EPA.
construction and                                         construction).
operation                                                Licence to Discharge (prior to
                                                         operation).
Connection to            Gas Industry Act                Connection Agreement.               Australian Energy
principal transmission                                                                       Market Operator.
system
Construction through     Pipelines Act                   Licence or consent.                 Minister for
Crown land                                                                                   Environment, Climate
                                                                                             Change and
                                                                                             Innovation.
Construction through     Rail Corporations Act           Agreement.                          VicTrack.
railway reserve




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Table 2.1         Summary of key approvals and assessments required (cont’d)
Activity                       Legislation                 Approval/Assessment             Relevant Authority
Gas Pipeline (cont’d)
Construction through    Road Management Act           Written consent.                   VicRoads.
road reserves                                                                            Corangamite Shire.
                                                                                         Moyne Shire.
Construction works on   Water Act                     Works on Waterway Permit.          Glenelg Hopkins
or beneath a                                                                             Catchment Management
waterway                                                                                 Authority.
                                                                                         Corangamite Catchment
                                                                                         Management Authority.
Construction works on   Water Act                     Works on Waterway Permit.          Glenelg Hopkins
or beneath a                                                                             Catchment Management
waterway                                                                                 Authority.
                                                                                         Corangamite Catchment
                                                                                         Management Authority.
Construction and        Environment Protection        Assessed as not a controlled       Commonwealth Minister
operation               and Biodiversity              action if undertaken in a          for Environment, Heritage
                        Conservation Act              particular manner.                 and the Arts
Water Supply Pipelines and Associated Infrastructure
Pipeline design         Water Act                     Licence to construct and operate   Wannon Water.
                                                      works.                             Department of
                                                                                         Sustainability and
                                                                                         Environment.
Planning permission     Planning and Environment      Planning consent via Planning      Minister for Planning.
                        Act                           Scheme Amendment C36 and           Moyne Shire.
                                                      associated development
                                                      consents.
Construction and        Environment Protection Act    Works Approval (prior to           EPA.
operation                                             construction).
                                                      Licence to Discharge (prior to
                                                      operation).
Construction through    Crown Land (Reserves)         Licence or consent.                Minister for Environment,
Crown land              Act                                                              Climate Change and
                                                                                         Innovation.
Construction works on   Water Act                     Works on Waterway Permit.          Glenelg Hopkins
or beneath a                                                                             Catchment Management
waterway                                                                                 Authority.
Construction through    Road Management Act           Written consent.                   VicRoads.
road reserves                                                                            Moyne Shire.
Construction and        Environment Protection        Assessed as not a controlled       Commonwealth Minister
operation               and Biodiversity              action if undertaken in a          for Environment, Heritage
                        Conservation Act              particular manner.                 and the Arts.
Associated Construction Activities
Removal of native       Flora and Fauna               Permit to take protected flora.    Department of
vegetation              Guarantee Act                                                    Sustainability and
                                                                                         Environment.
Removal of native       Victoria’s Native             Approved offset management         Department of
vegetation              Vegetation Management: A      plan.                              Sustainability and
                        Framework for Action                                             Environment.




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Table 2.1        Summary of key approvals and assessments required (cont’d)
Activity                         Legislation                  Approval/Assessment               Relevant Authority
Associated Construction Activities (cont’d)
Operation of              Country Fire Authority Act     Permit under s. 40 to ‘Use fire in   Country Fire Authority.
construction                                             the open air’.
equipment in the open
air during a Total Fire
Ban
Disturbance to            Aboriginal Heritage Act        Approved cultural heritage           Registered Aboriginal
Aboriginal heritage                                      management plan.                     party or Aboriginal Affairs
sites                                                                                         Victoria.
Disturbance to known      Heritage Act                   Consent to disturb.                  Heritage Victoria.
historic sites


2.3        Assessment and Consent Process
A number of licences, consents and permits will be required for the construction and operation of
the project following the EES process as described in Table 2.1. The EES will provide information
on which to base decisions about these additional requirements.

The assessment and consent process that governed the preparing and exhibiting of this EES is
described in the sections below.

2.3.1         Requirement for an EES
The Ministerial Guidelines for Environment Effects Statements (DSE, 2006) outline a number of
triggers for the requirement for an EES. These guidelines also provide detail about the
administration of the EES process and additional information to the Environment Effects Act.

A referral for an EES was prepared by Shaw River Power and submitted to the Minister for
Planning on 24 July 2008, primarily because the project triggers the referral criteria for individual
potential environmental effects, specifically potential greenhouse gas emissions. The project will
potentially emit more than 200,000 tonnes of carbon dioxide equivalent every year; the level for
referral is 200,000 tonnes per year.

On 7 November 2008, the Minister for Planning determined that an assessment through an EES
was required for the project. The Minister gave the following reasons for his decision:

•   The proposed power station is a major facility that would have significant greenhouse gas
    emissions and potentially significant effects on air quality, noise levels and other aspects of the
    local environment.

•   The potential effects of the proposed gas pipeline on rural land use, flora and fauna, waterway
    and Aboriginal cultural heritage are not yet known and could be significant given the route
    traverses seven endangered or vulnerable ecological vegetation classes, four sites of
    biological significance and four major waterways.

•   The potential effects on the rural landscape may be significant as the power station proposal
    would be a major new industrial element in a rural landscape.

•   An integrated assessment is warranted to inform decision-making under the Planning and
    Environment Act, Environment Protection Act, Pipelines Act and Aboriginal Heritage Act.



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2.3.2       EES Process
The Department of Planning and Community Development (DPCD) manages the EES process
and provides guidance to the proponent in conjunction with a technical reference group. A major
role for the DPCD is the assessment of the adequacy of the EES and the supporting studies for
public exhibition. Shaw River Power and its consultants are responsible for engaging and
consulting with stakeholders, undertaking supporting studies and preparing the EES. The EES
process is outlined in Figure 2.1.

Technical Reference Group
The Victorian Minister for Planning authorised the DPCD to establish a technical reference group
to provide policy, statutory and technical advice to Shaw River Power and DPCD on the adequacy
of EES studies and documents.

The technical reference group was chaired and managed by a DPCD representative and
comprised representatives of government agencies. The terms of reference for the technical
reference group are provided in Box 2.1.

Box 2.1        Terms of reference for the technical reference group
The role of the technical reference group will be to provide advice to Department of Planning and Community
Development and the proponent, as appropriate, on:
• The scoping requirements for the EES.
• The design and adequacy of the technical studies.
• The technical adequacy of the draft EES documentation.
• Coordination of statutory process.



Scoping Requirements
The scoping requirements set out the scope of the environmental matters to be investigated and
documented in the EES. The draft scoping requirements provided the framework for the
preparation of briefs for the supporting studies, which were undertaken by specialist consultants,
engaged by Shaw River Power.

Draft scoping requirements for the project were reviewed by the technical reference group then
publicly exhibited for a period of 15 business days concluding on 18 June 2009. During this
period, stakeholders were invited to submit comments on the adequacy and inclusiveness of the
requirements. Five submissions were received, and the issues raised were considered by the
DPCD in finalising the requirements. The scoping requirements were finalised in July 2009 and
can be seen in Attachment 2.

Preparation of the EES
The technical reference group reviewed the draft supporting studies and a presentation from each
of the specialist consultants. The technical reference group comments were incorporated into the
final supporting studies.

The EES was prepared by Shaw River Power and its consultants and summarises the specialist
consultants’ reports, which are included in full as appendices. The technical reference group and
the DPCD Environment Assessment Unit reviewed the draft EES, and their comments were
incorporated in the document before it was accepted by DPCD for public exhibition.

The EES has been prepared under the Environment Effects Act and in accordance with the
scoping requirements prepared for the project by DPCD.
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Document Submission and Public Exhibition
Several documents have been exhibited as part of this EES process. They are the EES
(comprising the Summary Brochure, the Summary Report, and the Main Report with its
attachments and appendices); Amendment C36 to the Moyne Planning Scheme; works approval
applications for the power station, compressor station and Port Fairy water reclamation plant; and
the Licence Applications to Construct and Operate a Pipeline.

The documents will be on public exhibition for a period of 30 business days, during which time the
public and stakeholders may make submissions to DPCD on Shaw River Power’s proposal.
Submissions received during this period will be reviewed by DPCD, Shaw River Power and,
potentially, an independent panel appointed by the Victorian Minister for Planning to conduct an
inquiry into the project via an independent panel. Shaw River Power must respond in writing to
any submissions made to the Victorian Minister for Planning.

Independent Panel Inquiry
The Victorian Minister for Planning may convene an inquiry under the Environment Effects Act
and an independent panel under the Planning and Environment Act to consider the submissions
received. Anyone making a submission has the opportunity to make presentations to the panel as
part of the assessment and approvals process for the project. Submissions will be treated as
public documents unless the person making the submission convinces the panel to the contrary.
The independent panel inquiry will make recommendations about the project to the Victorian
Minister for Planning under the Environment Effects Act in a public report called a panel report.

Minister for Planning’s Assessment
The Minister for Planning will decide whether or not the EES satisfied the scoping requirements
and whether or not each piece of legislation has been satisfied by the proposal. The Minister will
also note the recommendations of the independent inquiry panel report (if an inquiry has been
convened) at this time.

The Minister for Planning will prepare formal assessment advice, known as the Minister for
Planning’s assessment. The Victorian Minister for Planning’s assessment is made public and
recommends whether the project should be approved and, if so, under what conditions.

2.3.3        Project Assessment and Approval Conditions
On receipt of the Minister for Planning’s assessment, the following decision-makers will decide
whether or not to approve the various aspects of the project and, if so, under what conditions:

•   Victorian Minister for Planning. The Minister will be responsible for the approval of the planning
    scheme amendment.

•   Moyne Shire. Moyne Shire will be responsible for determining whether the development plan
    for the power station is to the satisfaction of the council. This will include building and works for
    the power station and associated infrastructure.

•   Victorian Minister for Energy and Resources. The Minister will be responsible for the approval
    of the Licence to Construct and Operate the gas pipeline.

•   Victorian Minister for Environment, Climate Change and Innovation. The Minister will be
    responsible for the consent to remove native vegetation on private and public land and the
    determination of whether net gain will be achieved.



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•   Victorian Minister for Water. The Minister will be responsible for the approval for the
    construction and operation of the water supply pipelines.

•   EPA. The EPA will determine whether the works approval should be issued for the
    construction and operation of the power station, compressor station and Port Fairy water
    reclamation plant.

•   WorkSafe Victoria. WorkSafe Victoria will determine whether Shaw River Power should be
    issued with a Licence to Operate a Major Hazard Facility for the power station.

•   Commonwealth Minister for the Environment, Heritage and the Arts. The Minister will be
    responsible for issuing approval for the EPBC Act and will determine whether to approve,
    approve with conditions or not approve the proposal. This approval process will occur under a
    separate assessment to the Victorian approval process.

2.4          Evaluation Objectives
The scoping requirements issued by the DPCD include evaluation objectives to guide the
evaluation of the Shaw River Power Station Project and the EES. The evaluation objectives
reflect relevant legislation and government policy, key environmental hazards identified to date
and the principles of ecologically sustainable development. Evaluation objectives have been
issued in draft format in the scoping requirements, as the objectives may be refined during the
preparation of the EES.

The evaluation objectives to guide the evaluation of potential effects of the proposal are detailed
in Table 2.2. The objectives have been set out in the left column and a brief commentary and
guide to where the corresponding issues are addressed in this EES is provided in the right
column.

Table 2.2       Evaluation objectives of the EES
Extracts from Shaw River Power Station EES                            Relevant Sections of EES
Scoping Requirements
To provide for the development of base load and         • Chapter 7, Project Description: Power Station.
intermediate load power generation capacities in        • Chapter 8, Project Description: Gas Pipeline.
the context of government policy objectives to          • Section 10.7, Greenhouse Gas.
maintain a secure, efficient and affordable supply of
energy while reducing the intensity of greenhouse
gas emissions from the energy sector.
To avoid or minimise effects on species and             • Section 10.5, Terrestrial Ecology.
communities listed under the Flora and Fauna            • Section 10.6, Aquatic Ecology.
Guarantee Act 1988 to the extent practicable, to
avoid or minimise effects on other native species
and communities, and to comply with net gain
requirements for biodiversity outcomes.
To protect catchment values, including surface          • Section 10.3, Surface Water, Hydrology and Water
water quality, stream flow, aquatic health and            Quality.
groundwater values, to the extent practicable.          • Section 10.4, Groundwater.
To protect Aboriginal and non-Aboriginal cultural       • Section 11.7, Aboriginal Cultural Heritage.
heritage to the extent practicable.                     • Section 11.8, Non-Aboriginal Cultural Heritage.




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Table 2.2       Evaluation objectives of the EES (cont’d)
Extracts from Shaw River Power Station EES                              Relevant Sections of EES
Scoping Requirements
To avoid or minimise noise, visual and other              •   Section 11.2, Air Quality.
adverse amenity effects, as well as health and            •   Section 11.3, Noise.
safety implications, on local residents during the        •   Section 11.4, Landscape and Visual.
development and operation of the power station,
                                                          •   Section 11.6, Socio-economic.
compressor station and gas and water pipelines.
                                                          •   Section 11.10, Hazard and Risk to People and
                                                              Facilities.
To minimise the disruption of existing land uses,         • Section 11.5, Traffic, Roads and Infrastructure.
infrastructure, traffic and local communities,            • Section 11.6, Socio-economic.
including in relation to the availability of housing      • Section 11.9, Land Use and Planning.
and the potential need to upgrade infrastructure.
To provide a transparent framework with clear             • Chapter 12, Environment, Health and Safety
accountability for managing environmental effects           Management Framework.
and risks associated with the project to achieve
acceptable outcomes.
To enable outcomes consistent with ecologically           • Section 11.6, Socio-economic.
sustainable development over the short and long           • Chapter 12, Environment, Health and Safety
term, having regard to the likely overall economic,         Management Framework.
social and environmental effects.                         • Chapter 13, Ecologically Sustainable Development.




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