VARIATIONS TO STATE ENVIRONMENT PROTECTION POLICY (AIR QUALITY MANAGEMENT) AND STATE ENVIRONMENT PROTECTION POLICY (AMBIENT AIR QUALITY)

Transcription

1 POLICY IMPACT ASSESSMENT VARIATIONS TO STATE ENVIRONMENT PROTECTION POLICY (AIR QUALITY MANAGEMENT) AND STATE ENVIRONMENT PROTECTION POLICY (AMBIENT AIR QUALITY)

2 POLICY IMPACT ASSESSMENT VARIATIONS TO STATE ENVIRONMENT PROTECTION POLICY (AIR QUALITY MANAGEMENT) AND STATE ENVIRONMENT PROTECTION POLICY (AMBIENT AIR QUALITY) EPA Victoria 40 City Road, Southbank Victoria 3006 AUSTRALIA January 2002 Publication 826 ISBN EPA Victoria

3 FOREWORD Clean air is fundamentally important to Victoria s social, economic and environment health our triple bottom line. We have seen real improvements in Victoria s air quality in the last 20 years, mainly due to reductions in emissions from industry, motor vehicles and domestic sources, such as backyard burning. Despite these improvements, recent scientific studies confirm that air pollution is still associated with impacts on the health and well being of people in Melbourne. In addition, the improvements that have been achieved in overall air quality are not necessarily reflected in the local air quality being experienced in parts of Victoria. Some people continue to be affected by local sources of offensive odour, and the cumulative impact of diffuse sources of emissions can be significant in some areas. In recent years global atmospheric issues, such as the enhanced greenhouse effect and depletion of the ozone layer, have become important too. There is no room for complacency. While we can count on technological development to contribute to reducing emissions, the pressure on Victoria s air quality is only likely to increase due to the growing population and economic activity in the State. Victoria s air quality needs to be managed in an integrated manner that takes into account the latest scientific information and trends in environmental management to ensure Victoria s triple bottom line is protected and enhanced. We also have a requirement to meet the national air quality goals, specified under the National Environment Protection Measure for ambient air quality, by The State environment protection policy (Air Quality Management) sets out the statutory policy framework for managing emissions into the air environment in Victoria. The framework has been developed to ensure that: the environmental quality objectives of the State environment protection policy (Ambient Air Quality) the nationally agreed ambient air quality goals and standards are met; our air quality continues to improve and we achieve the cleanest air possible, having regard to the social and economic development of Victoria; and Victorian and national measures to address the enhanced greenhouse effect and depletion of the ozone layer are supported. i

4 The policy has been extensively reviewed and updated to meet these aims. The review took into account the views of many interested stakeholders in the community, industry and government. This Policy Impact Assessment (PIA) provides an explanation of the provisions in the policy, the rationale behind the provisions, and the key impacts, both positive and negative, of adopting the new policy. BRIAN ROBINSON CHAIRMAN ii

5 EXECUTIVE SUMMARY Why is Air Quality Important? There are many reasons why air quality is an important issue for all of us. The air we breathe is fundamental to our health and well being. This is especially true for people who are susceptible to air pollution: the young, the elderly, asthmatics, and people with lung or heart-related illnesses. Offensive odours seriously affect the lives of many people. EPA receives more complaints about offensive odours than any other issue. Poor visibility due to air pollution detracts from our ability to appreciate the environment around us. As well as the health and well being of people, the quality of our air influences the health and well being of other forms of life too. Certain air pollutants can also affect materials, buildings and other structures. For all these reasons, poor air quality can significantly affect the liveability of an area and its attractiveness as a place to invest and live. What is Victoria s Air Quality Like? Generally speaking, Victoria s air quality is good and has improved in the last 20 years. EPA Victoria routinely monitors air quality in Melbourne, Geelong and the Latrobe Valley for a variety of pollutants. The results of this monitoring show general improvements in air quality in these regions over this time. The improvements have only come about as a result of the combined efforts of the community, industry and government. Emissions have been reduced from a variety of sources to bring about the improvement in air quality. The improvements have mainly resulted from tighter emission controls on motor vehicles and cleaner motor vehicles fuels, the adoption of cleaner production processes in industry, and controls on such activities as backyard burning. Despite the improvements we still have breaches of some of our air quality standards in these regions. Also, recent research conducted by EPA Victoria has found that at current air pollution levels in Melbourne, statistically significant associations exist between daily mortality and hospital admissions for respiratory and cardiovascular disease and ambient levels of particles, nitrogen dioxide, ozone and carbon monoxide. In addition, the air quality in some local areas in Victoria is not as good as it is in others due to the contribution of significant local sources of emissions. Communities are still clearly expressing the view that they want cleaner air in their neighbourhoods. iii

6 How is Victoria s Air Quality Protected? Victoria s approach to environment protection, and its environmental management systems and practices, are based on the provisions of the Environment Protection Act One of the most important instruments for environmental management under the Act is the State environment protection policy (SEPP). SEPPs establish a statutory policy framework for protecting the environment. SEPPs are statutory instruments which must be followed by EPA and other government agencies in developing and implementing their own strategies, plans and programs, and must be complied with by all individuals and organisations (whether public or private) in Victoria. The air environment in Victoria is currently protected by two SEPPs. These were created in February 1999 by dividing the State environment protection policy (The Air Environment) - the first SEPP for the air environment, made in 1981 and subsequently amended several times - into two policies: The State environment protection policy (Ambient Air Quality) or SEPP (AAQ) The State Environment Protection Policy (Air Quality Management) or SEPP (AQM) The SEPP (AAQ) contains the indicators, standards, goals, and monitoring and reporting protocol of the National Environment Protection Measure for Ambient Air Quality (or Ambient Air Quality NEPM ), which was made by the National Environment Protection Council in June When it was made in 1999, the SEPP (AAQ) also carried forward three ambient air quality objectives of the State environment protection policy (The Air Environment) that were not replaced by the provisions of the Ambient Air Quality NEPM, namely for visibility reducing particles and the two 8-hour ozone objectives. The SEPP (AQM) carried forward all of the remaining provisions of the State environment protection policy (The Air Environment) as it stood in February The remaining provisions were not amended when the two new policies were created. The SEPP (AQM) sets the framework for managing emissions to the air environment. These emissions are managed in such a way as to ensure that the air quality objectives of the SEPP (AAQ) are met. EPA has reviewed both SEPPs. All of the provisions of the SEPP (AQM) have been reviewed. For the SEPP (AAQ), only those ambient air quality objectives that were not replaced in adopting the Air NEPM were reviewed. Why have SEPP (Air Quality Management) and SEPP (Ambient Air Quality) been updated? It is critical that the SEPP (AAQ) and SEPP (AQM) reflect the latest developments in environmental management to ensure that the community s aspiration for the cleanest air possible, having regard to the State s social and economic development, is achieved. Emissions to the air environment must also be managed to ensure that the objectives of the SEPP (AAQ) are met. In June 1999 EPA determined that the SEPP (AQM) would be varied, and that all of its provisions would be reexamined in developing a draft of the varied policy. The following issues were considered central to the review: iv

7 recent developments in environmental management at State, national and international levels; significant developments in environmental management technologies and associated practices, in particular the move towards cleaner production in industry; recent progress in environmental research; new scientific information on the impacts of hazardous air pollutants that had become available since the last policy review; continuing developments in the modelling of air pollution; the provisions in the Act for the review of SEPPs; and changes to local government boundaries that affect the definition of Air Quality Control Regions. What changes have been made? Principles of Environment Protection With the introduction of a set of guiding principles into the Environment Protection Act 1970 early in 2001, the policy has been amended to reflect those principles. The incorporation of these principles in the policy reflects national agreements and important shifts and developments in environmental management in recent years. The principles include the integration of economic, social and environmental considerations; shared responsibility; product stewardship; wastes hierarchy; and integrated environmental management. Greater Emphasis on Non-Industrial Sources of Emissions When the first SEPP for the air environment was introduced in 1981, there was a strong focus on controlling emissions from industrial sources. Since then, significant advances have been made in reducing emissions from industry. Although industry remains an important source of emissions, and is still comprehensively addressed in the new SEPP (AQM), in recognition of the fact that there are many other significant sources of emissions there is much greater emphasis on other sources. Motor vehicles are still the major overall source of many air pollutants, especially in Melbourne. The SEPP (AQM) reinforces EPA s participation in national processes to set emissions standards for new vehicles and improve fuel quality, and also puts in place a range of new initiatives to improve the in-service performance of motor vehicles. Measures to reduce emissions by investigating and encouraging alternatives to using motor vehicles and new cleaner technologies are also provided. v

8 Solid fuel heating, such as wood heating or open fires, can be a major source of some pollutants in the cooler months. The SEPP (AQM) puts in place a range of measures to help reduce emissions from these domestic sources. A variety of burning practices in the open can also have impacts on air quality from the smoke they generate, and new tools for cooperatively addressing this with stakeholders have been introduced, and effective tools currently in place have been reinforced. More Hazardous Pollutants Managed to a Higher Level of Control The number of pollutants recognised as being the most hazardous the Class 3 indicators : those that are carcinogenic, mutagenic, teratogenic, highly toxic or highly persistent has been increased from eight to 26. This is in light of recent developments in the understanding of the health effects of these pollutants. The requirement under the SEPP (AQM) is that emissions of these pollutants be reduced to the maximum extent achievable. All the design criteria in the policy for emissions from new premises have been updated in light of recent information on the health effects of these pollutants. Some important pollutants that fall into less hazardous categories, but nevertheless are still important to manage, have also been incorporated into the policy for the first time, such as PM 10 and PM 2.5. Greater Flexibility in Managing Emissions As indicated above, emissions of Class 3 indicators must be reduced to the maximum extent achievable under the policy. This is a slight change from the previous SEPP (AQM), which required these pollutants to be reduced to the maximum extent achievable by technology. The reduced emphasis on expensive end-of-pipe technology means that industry will be encouraged to consider examining opportunities higher up the wastes hierarchy to reduce emissions, such as avoiding the creation of hazardous emissions in the first place. The benefits of applying this cleaner production approach to emissions management are well documented and can have benefits both in terms of reduced emissions and more cost-effective solutions. Risk Assessment An important environmental management tool the SEPP (AQM) formally incorporates for the first time is risk assessment. The ability to conduct a risk assessment will enable emissions generators to better assess the impact of their emissions on the surrounding environment. vi

9 This will have benefits for industry by enabling environmental management investment to be better targeted to where it is most needed, and for local communities by enabling a better appraisal of the impacts of industry in their area to be conducted. New Health-Based Local Air Quality Standards For the first time in the SEPP (AQM), health-based standards that can be used for monitoring local air quality have been introduced. These intervention levels are air quality standards that have been developed for a set of pollutants that have many sources. They are intended to be used in neighbourhoods where the cumulative impact of a variety of sources may be causing local air quality problems. Intervention levels will be one of the criteria used to assess whether a Neighbourhood Environment Improvement Plan (NEIP) needs to be developed to improve air quality in a neighbourhood. These intervention levels will not be used to assess the impacts of single sources of pollutants. The normal tools under the Environment Protection Act 1970, such as licences and pollution abatement notices, will continue to be used to control emissions from such sources. Better Management of Greenhouse Gas Emissions from Industry Consistent with the emerging trend of better integration of environmental management, the SEPP (AQM) now incorporates consideration of emissions of greenhouse gases with other emissions management. When companies apply to EPA for a works approval in future, they will be required to consider their emissions of greenhouse gases, and energy consumption that leads to the generation of greenhouse gases, as part of that works approval. This will lead to benefits for industry too as it is well recognised that investment in energy efficient processes and technology generally has very quick pay back periods, and thereafter results in significant savings. Protocols for Environmental Management Another new tool introduced into the policy is the Protocol for Environmental Management (PEM). PEMs will deal with the detail of air quality management and will be able to be readily updated to reflect the latest developments in environmental management practice and science. PEMs will be developed with stakeholders and provide an opportunity for public comment to ensure that a range of perspectives are taken into consideration in their development. State Environment Protection Policy (Ambient Air Quality) As indicated previously, three ambient air objectives of the 1981 State environment protection policy (The Air Environment) were not replaced by the provisions of the Air NEPM, and were included in the SEPP (AAQ) in February 1999 without review. These were the visibility objective and two 8-hour ozone objectives for protection vii

10 of vegetation. In June 1999, EPA determined that these objectives should be reviewed at the same time as the review of the SEPP (AQM). It has been decided to retain the visibility objectives as visibility remains one of the key indicators by which the community assesses air quality. It has been decided to remove the two 8-hour ozone objectives as they were based on information that is no longer considered to be relevant for the protection of vegetation in Victoria, and other objectives give an indication of this protection. What will the impacts be? The 1981 SEPP has helped to drive significant improvements in air quality in Victoria during the past 20 years. Despite these improvements, air pollution is still of concern to many Victorians and recent studies show that air pollution has an impact on people s health in Melbourne. The pressure on our air environment is only expected to increase as Victoria s economy and population base continues to grow, particularly in Melbourne and other major urban centres. In this context, the proposed variations to SEPP (Air Quality Management) retain the successful general approach of the 1981 SEPP and update it in a number of important ways to ensure continued improvements in air quality in Victoria. In particular, the proposed variations update the 1981 policy framework to ensure that air quality management in Victoria reflects the: improved scientific information that has become available during the past 20 years, including improved knowledge about the health impacts of various pollutants; changes in industry practices during the past 20 years; and emergence of important global air quality issues such as global warming and ozone depletion that were little understood in There are a variety of factors that affect the behaviour of people and organisations who generate air pollutants. For example, while in 1981 most companies may have been solely motivated by a desire to comply with air quality laws, many companies are now motivated by a variety of factors to reduce air emissions. The SEPP has been updated to recognise and capitalise on the multiple factors that can drive air quality improvements. Furthermore, the SEPP provides considerable flexibility to manage air emissions from a variety of sources on a case-by-case basis. In impact assessment terms, this means that it is not possible to cleanly attribute benefits and costs to the proposed SEPP. For example, EPA cannot argue that all the benefits from reduced industrial air emissions flows from the adoption of the SEPP. Similarly, it is not possible to specify that all the costs of industrial emission actions can be attributed to the SEPP. viii

11 Where possible, case studies and range estimates are provided in this PIA to illustrate the nature and scale of impacts. The impacts are summarised in Chapter 5. Overall, the SEPP will set the framework for continued improvements in air quality achieved through cost-effective means for industry and the broader community. ix

12 TABLE OF CONTENTS FOREWORD... I EXECUTIVE SUMMARY...III WHY IS AIR QUALITY IMPORTANT?...III WHAT IS VICTORIA S AIR QUALITY LIKE?...III HOW IS VICTORIA S AIR QUALITY PROTECTED?...IV WHY HAVE SEPP (AIR QUALITY MANAGEMENT) AND SEPP (AMBIENT AIR QUALITY) BEEN UPDATED?...IV WHAT CHANGES HAVE BEEN MADE?...V WHAT WILL THE IMPACTS BE?... VIII GLOSSARY 1 INTRODUCTION THE IMPORTANCE OF AIR QUALITY STATE ENVIRONMENT PROTECTION POLICY...1 What is a State environment protection policy?...1 Which SEPPs protect air quality? REASONS FOR THE POLICY REVIEW POLICY DEVELOPMENT PROCESS POLICY IMPACT ASSESSMENT AIR QUALITY IN VICTORIA AIR POLLUTANTS OF CONCERN IN VICTORIA... 8 Common Air Pollutants... 8 Air Toxics SOURCES OF AIR POLLUTANTS CURRENT AIR QUALITY...14 Regional Air Quality...14 Local Air Quality Global Air Quality FUTURE AIR QUALITY POLICY OPTIONS OPTION 1: DO NOTHING OPTION 2: MAINTAIN THE CURRENT POLICY STRUCTURE BUT REVISE THE SCHEDULES TO THE SEPP (AIR QUALITY MANAGEMENT)...19

13 3.3 OPTION 3: VARY THE POLICIES PREFERRED OPTION IMPACTS OF EACH OF THE ALTERNATIVE OPTIONS...21 Option 1: Do Nothing...21 Option 2: Maintain the current policy structure but revise the schedules to the SEPP (Air Quality Management) POLICY CHANGES AND ASSESSMENT OF POLICY IMPACTS STATE ENVIRONMENT PROTECTION POLICY (AIR QUALITY MANAGEMENT)...24 Structure of the SEPP (AQM)...24 Assessment of the Impacts of the Policy Clauses STATE ENVIRONMENT PROTECTION POLICY (AMBIENT AIR QUALITY)...87 Objective for visibility reducing particles...87 Objectives for photochemical oxidants...88 Assessment of the impacts of the policy variations SUMMARY OF IMPACTS...90

14 GLOSSARY AQIP BACT BAP BAU BPEM CFCs CO CO 2 EPA GEM MEA MEAT MVEC NEIP NEPC NEPM NGS NRTC NO 2 NO X O 3 PAH PEM PIA Air Quality Improvement Plan Best Available Control Technology Best Available Practices Business as Usual Best Practice Environmental Management Chlorofluorocarbons Carbon Monoxide Carbon Dioxide Environment Protection Authority Guideline for Environmental Management Maximum Extent Achievable Maximum Extent Achievable by Technology Motor Vehicle Environment Committee Neighbourhood Environment Improvement Plan National Environment Protection Council National Environment Protection Measure National Greenhouse Strategy National Road Transport Commission Nitrogen Dioxide Oxides of Nitrogen Ozone Polycyclic Aromatic Hydrocarbons Protocol for Environmental Management Policy Impact Assessment

15 PM 2.5 PM 10 SEPP SEPP (AAQ) SEPP (AQM) SO 2 UNFCCC VGS VOC Particulate Matter of an aerodynamic diameter less than 2.5 micrometres Particulate Matter of an aerodynamic diameter less than 10 micrometres State environment protection policy State Environment Protection Policy (Ambient Air Quality) State Environment Protection Policy (Air Quality Management) Sulphur Dioxide United Nations Framework Convention on Climate Change Victorian Greenhouse Strategy Volatile Organic Compounds

16 1 INTRODUCTION 1.1 The Importance of Air Quality The quality of the air that we breathe is important to all Victorians. Air pollution can have adverse impacts on our health, our enjoyment and appreciation of our surroundings, the health of the living environment, and the integrity and appearance of materials and the built environment. Air quality is also an important indicator of the liveability of a city, town or region and its potential to attract tourism and business investment. Air quality is consistently ranked as the main environmental concern within urban communities. Victorians place a high value on air quality and want the cleanest air possible that is consistent with achieving the State s economic and social development goals. This challenge needs to be viewed from two perspectives. On the one hand, many of the activities that generate emissions of air pollutants have important economic and social benefits (for example, the economic productivity of industry, and the high mobility afforded by motor vehicle usage). On the other hand, air pollution may have economic and social costs associated with health-related and other impacts. Recent research conducted by EPA Victoria (Melbourne Mortality Study, Ambient Air Pollution and Daily Hospital Admissions in Melbourne (publication 789)) has found that at current air pollution levels in Melbourne, statistically significant associations exist between daily mortality and hospital admissions for respiratory and cardiovascular disease and ambient levels of particles, nitrogen dioxide, ozone and carbon monoxide. Much of what we do on a daily basis has an impact on the air environment. Air quality is strongly influenced by emissions from those industries (both large and small) which make the products that we buy, from the motor vehicles that we drive, and from the fuels that we use to heat our homes. The impacts of these sources on air quality are particularly strong in cities such as Melbourne and in larger regional centres. Improving air quality requires action by all sectors of the community, including government, industry, communities and individuals. 1.2 State Environment Protection Policy What is a State environment protection policy? Victoria s approach to environment protection, and its environmental management systems and practices, are based on the provisions of the Environment Protection Act This Act established the Environment Protection Authority (EPA) and defines its powers, duties and functions. The Act s provisions include statutory powers, instruments and measures to: manage environmental quality; establish environmental standards and criteria; regulate emissions, discharges and wastes; and prevent and clean up pollution. Some of the most important instruments for environmental management include State environment protection policies (SEPPs), industrial waste management policies, regulations, works approvals, licences and pollution abatement notices. 1

17 SEPPs establish a statutory framework for protecting the environment. The Governor in Council declares SEPPs, on the recommendation of EPA. These policies: identify the beneficial uses of the environment (including particular segments such as the air environment, or a particular water body or catchment) that are to be protected; establish environmental indicators and associated environmental quality objectives to establish if the environment is being protected; and define programs for attainment of these objectives so that identified beneficial uses are adequately protected. Attainment programs usually specify a range of approaches, measures and instruments for policy implementation, and often require the compliance and cooperation of government agencies, industry and the community to manage sources of pollution, reduce environmental impacts and improve environmental quality. SEPPs are statutory instruments which must be followed by EPA and other government agencies in developing and implementing their own strategies, plans and programs, and must be complied with by all individuals and organisations (whether public or private) in Victoria. SEPPs are developed through a consultative process and when declared by Governor-in-Council, express in law the community s expectations for the protection of the environment. SEPPs provide the management approach and technical basis for the application of works approvals, licences and other statutory measures to manage the environment. The application of these instruments and measures must always be consistent with the requirements of SEPPs. Which SEPPs protect air quality? Two SEPPs currently protect Victoria s air environment. These were created in February 1999 by dividing the State Environment Protection Policy (The Air Environment) (made in 1981 and subsequently amended several times) into two policies: The State environment protection policy (Ambient Air Quality) or SEPP (AAQ), and The State Environment Protection Policy (Air Quality Management) or SEPP (AQM). The SEPP (AAQ) contains the indicators, standards, goals and monitoring and reporting protocol of the National Environment Protection Measure for Ambient Air Quality (or Ambient Air Quality NEPM ), which was made by the National Environment Protection Council in June When it was made in 1999, the SEPP (AAQ) also carried forward three ambient air objectives of the State Environment Protection Policy (The Air Environment) that were not replaced by the provisions of the Air NEPM, namely for visibility reducing particles and the two 8-hour ozone objectives. The SEPP (AQM) carried forward all of the remaining provisions of the State environment protection policy (The Air Environment) as it stood in February The remaining provisions were not amended when the two new policies were created. The SEPP (AQM) sets the framework for managing emissions to the air environment. These emissions are managed in 2

18 such a way as to ensure that the air quality objectives of the SEPP (AAQ) are met. Both of the current SEPPs identify the following beneficial uses of the air environment: health and well-being of humans; life, health and well-being of other forms of life, including animals and vegetation; visibility; useful life and aesthetic appearance of buildings, structures, property and materials; and aesthetic enjoyment and local amenity. Both SEPPs have been reviewed by EPA. All of the provisions of the SEPP (AQM) have been reviewed. However, for the SEPP (AAQ), only those ambient air quality objectives that were not replaced in adopting the Air NEPM were reviewed. 1.3 Reasons for the Policy Review It is critical that the SEPP (AAQ) and SEPP (AQM) reflect the latest developments in environmental management to ensure that the community s aspiration for the cleanest air possible is achieved. Emissions to the air environment must also be managed to ensure that the objectives of the SEPP (AAQ) are met. In June 1999, EPA determined that the SEPP (AQM) would be varied, and that all of its provisions would be re-examined in developing a draft of the varied policy. In reaching this determination, EPA drew upon its experience and involvement in environmental management at the local, State, national and international levels. The following issues were considered central to the review: recent developments in environmental management at State, national and international levels; significant developments in environmental management technologies and associated practices; recent progress in environmental research; new scientific information on the impacts of hazardous air pollutants that had become available since the last policy review; continuing developments in the modelling of air pollution; the provisions in the Act for the review of SEPPs; and changes to local government boundaries that affect the definition of Air Quality Control Regions. Some of these developments are elaborated on below. Approaches to environmental management practice in Victoria, Australia and overseas have shifted significantly towards: avoiding the creation of wastes through cleaner production and eco-efficiency, rather than controlling wastes at the end of a process; integrating environmental management across all environmental media; working in partnership with stakeholders, rather than managing by command and control ; 3

19 promoting non-regulatory approaches, such as best practice guidelines and environmental management systems, to support regulatory measures; and in the case of air quality, placing greater emphasis on managing mobile, domestic and other diffuse sources, as well as point sources. To achieve the best possible air quality in Victoria, a philosophy of continuous improvement needs to be adopted in all aspects of air quality management and by all Victorians. Also, it is now widely accepted that the responsibility for managing air quality should be shared by all levels of government, business and industry, as well as groups and individuals. Under the principle of product stewardship, producers and users of goods and services (and those who manage their wastes) should share responsibility for managing environmental impacts over the life cycle of those goods and services. Commonwealth, State and Territory Governments and the Australian Local Government Association made the Intergovernmental Agreement on the Environment in Under this agreement the development and implementation of environmental policies and programs in Australia is to be guided by an agreed set of policy principles, including ecologically sustainable development, the integration of economic and environmental considerations, and the use of economic measures in environmental management. The principle of eco-efficiency, which recognises that economic, social and environmental goals are interrelated, is now being pursued in environmental management in an integrated manner to maximise overall benefits to society. The use of the waste hierarchy for environmental management, with its preference for waste avoidance and minimisation over waste treatment and disposal, is also now widely practiced in Australia. Many of these principles were built into the Environment Protection Act 1970 early in 2001, and now guide everything done under the Act. Research into the health impacts associated with exposure to air pollution continues to produce findings of relevance to air quality management. These findings may be used to classify and prioritise these substances and to develop criteria for assessing and managing their potential impacts on public health and the environment. Risk assessment is beginning to play a more significant role in environmental management. The setting of management priorities, the establishment of environmental criteria and objectives, and the assessment of environmental and health impacts all involve the assessment of risk, even if this is not formally acknowledged in decision making. The establishment of the National Environment Protection Council (NEPC) and the Motor Vehicle Environment Committee (MVEC) represent a new direction for Environment Protection in Australia. In particular the development of NEPMs provides nationally consistent targets for protection of the environment. International and national commitments on greenhouse gas emissions and ozone-depleting substances (for example, as expressed through the National Greenhouse Strategy and the National Strategy for Ozone Protection) also provide new directions for the environmental protection in 4

20 Victoria. National and international commitments in relation to greenhouse gas emissions are being reflected and built on in Victoria through the development of the Victorian Greenhouse Strategy. Finally, approaches to local and regional air quality management have developed considerably over the last two decades, and it is now important to review and restate the preferred management approaches in policy terms to ensure that the community s aspirations for clean air are achieved. The above developments have been considered in this policy review, and are reflected in the provisions of the SEPP (AQM). As indicated in section 1.2.2, three ambient air objectives of the 1981 State environment protection policy (The Air Environment) were not replaced by the provisions of the Air NEPM, and were included in the SEPP (AAQ) in February 1999 without review. In June 1999 EPA determined that these objectives should be reviewed at the same time as the review of the SEPP (AQM). 1.4 Policy Development Process Following EPA s determination in June 1999, a detailed internal review of the SEPP (AQM) was conducted, and a preliminary draft of a varied SEPP (AQM) was prepared for public comment. The work of this review was primarily based on an assessment of policy development needs arising from the developments and issues identified in section 1.3 above. The preliminary draft was released, together with a draft Air Quality Improvement Plan (AQIP) for the Port Phillip Region and the Melbourne Mortality Study, in June Comments were invited from the public on the preliminary draft SEPP (AQM) and the draft AQIP. Twenty-nine submissions were received on the preliminary draft SEPP (AQM). These comments were considered in developing the formal draft SEPP (AQM) and draft PIA. In December 2000 the formal draft SEPP (AQM) and draft PIA were released for public comment. EPA conducted an extensive consultative process with more than 80 consultation sessions conducted in Melbourne and many regional centres. Ninety-three submissions were received on the draft Policy and draft PIA and comments contained in these submissions have been considered in the finalisation of the Policy. This PIA also addresses the outcome and implications of EPA s review of three ambient air quality objectives in the current SEPP (AAQ). Given the relative simplicity of the actions proposed by EPA as a result of this review, no draft policy document was prepared. However, it should be emphasised that comments were also invited on EPA s proposals for revising SEPP (AAQ). EPA considered a range of possible policy options for protecting Victoria s air environment before preparing the draft variation. These options were judged against their ability to achieve the desired outcome of a flexible and robust framework consisting of the principles, approaches and measures for managing air quality at the local, regional and State levels and addressing global environmental issues. Three possible approaches considered were: Option 1: do nothing and allow the SEPP (AQM) to continue in its current form; Option 2: maintain the current policy structure but revise the Schedules to the SEPP (AQM); and 5

21 Option 3: vary the policies to reflect developments over the course of the last decade. The assessment of these options is provided in Chapter 3. EPA considered each of these options and has varied the SEPP (AQM) to reflect developments over the course of the last decade, and the SEPP (AAQ) to update the relevance of the indicators for vegetation protection and visibility. This option provides a modern and flexible policy framework for the management of emissions to the air environment. In particular, this option provides a mechanism to drive continuous improvement in air quality and achieve the cleanest air possible consistent with the pursuit of Victoria s economic and social development goals. A series of background papers were released with the draft SEPP (AQM) and draft PIA to explain the background to some of the policy issues, and the reasoning behind the proposed variations. These papers dealt with: the classification of air quality indicators, and the development of design criteria (for assessing proposals involving new or expanded sources of emissions) and intervention levels (for assessing actual impacts on neighbourhood air quality) for these indicators; issues relating to, and possible approaches to, odour management; prescribed burning, waste burning and fire management; the management of emissions of greenhouse gases and energy use (for which a draft Guideline for Environmental Management was also prepared); modelling of emissions from point, line and area-based sources; and approaches to assessing the health risks associated with air pollutants. Comments were invited on the issues outlined in these background papers, and on the draft Guideline for Environmental Management Greenhouse and Energy. All public comments received were evaluated by EPA and considered in the finalisation of the policies. A summary of public comments and EPA s responses to those comments has been prepared and distributed to all individuals and organisations that submitted comments. 1.5 Policy Impact Assessment A Policy Impact Assessment (PIA) is required for each new SEPP or SEPP variation. PIAs are intended to provide information on the need to develop or vary statutory policy, the nature and meaning of policy proposals, and their practical impacts and implications. In particular, PIAs seek to explain the intended means of implementing a new or varied policy, and the likely environmental, social and economic impacts of implementation. The PIA is also the medium by which the process of policy development is clearly outlined for the Victorian community, including the seeking and review of public comments. The information in a draft PIA is provided to assist those who are interested in reviewing a draft policy to understand and evaluate the possible 6

22 implications of policy change and to provide informed comment on policy proposals (should they wish to do so). A final version of the PIA is produced when the formal policy proposal is recommended by EPA to the Governor in Council, after public comments have been evaluated and any changes considered necessary have been made to the draft policy. This PIA has been prepared to accompany the final SEPP (AQM) when recommended by EPA to Governor-in-Council for declaration. This PIA explains the policy changes and associated impacts and also highlights issues raised through the public consultation and changes made to the policy to address these issues. This PIA contains the following sections: information on levels and trends in emissions and air quality in Victoria (Chapter 2); a discussion of the policy and of the policy options considered (Chapter 3); a discussion of the policy variation and its impacts (Chapter 4); and a summary of the impacts of the policy proposals (Chapter 5). 7

23 2 AIR QUALITY IN VICTORIA 2.1 Air Pollutants of Concern in Victoria The air pollutants identified in the SEPP (AQM) fall into three categories: common widespread air pollutants that are emitted from numerous, widely-distributed sources or formed as secondary pollutants in the atmosphere; air toxics, which are present in low concentrations with characteristics such as toxicity or persistence so as to be a hazard to human, plant or animal life; and air pollutants (such as nuisance coarse dust and odour) that can be a nuisance and therefore affect people s amenity. In the SEPP (AQM) the common air pollutants are classified as Class 1 indicators, and the air toxics as Class 2 and 3 indicators. Class 3 indicators are those air toxics that are considered to be extremely hazardous because of their carcinogenic, mutagenic, teratogenic, highly toxic or highly persistent properties. In general, Class 1 indicators are of concern at a regional level due to the large number of sources of these pollutants. Class 2 and 3 indicators are mainly of concern for local air quality, although some Class 3 indicators, such as benzene, can also be of concern at a regional level due to a number of widespread sources, for example motor vehicles. While these distinctions are useful from an air quality management perspective, it should be recognised that they are not clear-cut. The Class 1 indicators may also have local impacts in the vicinity of sources of their emissions. Some common air pollutants are not actually emitted directly from sources, but formed in the atmosphere via chemical reactions between other pollutants. These pollutants are termed secondary pollutants. Ozone, the main constituent of photochemical smog, is an example of such a pollutant. Ozone has been defined as an environmental quality indicator in the SEPP (AAQ). The background paper released with the draft SEPP (AQM) PIA Indicators for Air Quality Management and Criteria Assessment (EPA Publication 743) provided details of the Class 1, 2 and 3 indicators that are defined under the SEPP (AQM). Common Air Pollutants The common pollutants identified in the SEPP (AAQ) include carbon monoxide (CO), photochemical oxidants (expressed as ozone or O 3 ), airborne particles (as PM 10 ), nitrogen dioxide (NO 2 ), sulfur dioxide (SO 2 ) and lead. Photochemical oxidants are formed from complex chemical reactions involving oxides of nitrogen (which are principally nitric oxide (NO) and nitrogen dioxide (NO 2 )) and volatile organic compounds (VOCs). These reactions take place in the atmosphere under stable atmospheric conditions and strong solar radiation. Airborne particles may have a diverse chemical composition and a range of particle sizes. 8

24 Ozone in our air and in the ozone layer Ozone is involved in two atmospheric processes. A layer of ozone occurs naturally in the stratosphere and is essential to human health as it filters out harmful ultraviolet rays. Action to protect the ozone layer from ozone-depleting substances has been under way for some time now, and the SEPP (AQM) explicitly supports this action for the first time. An Industrial Waste Management Policy has been developed to address ozone-depleting substances in Victoria. Ground level ozone occurs in the troposphere (that is, near the Earth s surface) and is the principal measure of photochemical smog. Ozone in the troposphere can be harmful to human health and other aspects of the environment. Each form of ozone is the same chemical (O 3 ), but the environmental impact varies depending on whether the ozone occurs in the stratosphere or in the troposphere. Air Toxics The SEPP (AQM) categorises air toxics into Class 2 and Class 3 air quality indicators. Class 2 indicators are those substances that are considered to pose a threat to beneficial uses of the air environment by virtue of their toxicity, bio-accumulation or odorous characteristics. Class 3 indicators are extremely hazardous substances that are known to be carcinogenic, mutagenic, teratogenic, highly toxic or highly persistent. Generally speaking, Class 2 and 3 indicators are emitted into the atmosphere within an airshed at much lower volumes than the common air pollutants, but most of them are considered to be hazardous at much lower concentrations. Class 2 and 3 indicators are not routinely monitored. Their management relies largely on minimisation of their emissions at source. EPA conducts campaign monitoring for air toxics, usually around potential hot-spots such as near industrial complexes or major roads. A significant amount of data has been collected in Melbourne and is summarised in the State of Knowledge Report on Air Toxics (Environment Australia 2001). The results of this monitoring are mainly for benzene, 1,3-butadiene, toluene, xylene, and formaldehyde and indicate that levels of these pollutants experienced in Melbourne are quite low by international standards. 2.2 Sources of Air Pollutants There are many sources of air pollution in Victoria. Motor vehicles remain the major source of the common air pollutants, especially NO 2 and CO. Domestic wood heating is a significant source of particles in cooler months. For the air toxics, both industry and motor vehicles are significant sources. Figure 1 illustrates the relative contributions of the main sources of some common air pollutants or their precursors (PM 10, PM 2.5, CO, NO X ) to total annual emissions in the Port Phillip Region in (Port Phillip Emissions Inventory, EPA Publication 632). It can be seen that motor vehicles are major contributors to total emissions of CO and NO X with 83 per cent and 63 per cent of emissions arising from this source respectively. Heavy vehicles (buses 9

25 and trucks) contribute 16per cent of CO and 22 per cent of NO X from all motor vehicles. The contribution of motor vehicles to NO 2 concentrations is clearly reflected in figure 2. This figure, which shows the results of regional modelling in Geelong, clearly illustrates the highest concentrations of NO 2 occur near major roads, reflecting traffic density. Motor vehicles are also a significant source of emissions of PM 10 and PM 2.5. Industry contributes 23 per cent of NO X and 36 per cent of PM 10 to the total emissions of these pollutants. Domestic wood heating contributes 38 per cent of PM 10, 45 per cent of PM 2.5 and 11 per cent of CO emissions. Figure 3 shows the relative source contributions for the air toxics benzene, formaldehyde, vinyl chloride, 1,3-butadiene, PAHs and cadmium and compounds. Motor vehicles are a major source of benzene, 1,3- butadiene, formaldehyde and PAHs with 80 per cent, 76 per cent, 64 per cent and 41 per cent of total emissions from this source respectively. Motor vehicles also contribute significantly to total VOCs, a Particles (PM10) precursor to ozone. Industrial sources contribute significantly to emissions of many air toxics including cadmium and compounds and vinyl chloride. Approximately 3 per cent of benzene emissions, 14 per cent of 1,3-butadiene and 4 per cent of formaldehyde emissions arise from industrial sources across the Port Phillip Control Region. Figure 4 shows the spacial distribution of 1,3-butadiene across the Melbourne metropolitan area. Although levels of 1,3-butadiene are widely distributed, the contribution from industry in the western suburbs is clearly seen. Domestic wood combustion is the major source of particle emissions and also contributes significantly to PAHs, formaldehyde and benzene. The charts showing contributions to PM 10 and PM 2.5 emissions exclude various sources of fugitive emissions, for example, from wind-blown dust, reentrained road dust, sea salt and the extractive industry. These sources are likely to be as significant as the anthropogenic sources shown. Particles (PM2.5) Motor vehicles 17% Other sources 9% Motor vehicles 25% Industry 15% Wood combustion 38% Industry 36% Other sources 15% Wood combustion 45% Carbon monoxide Oxides of nitrogen Motor vehicles 83% Other sources 5% Industry 1% Wood combustion 11% Motor vehicles 63% Other sources 13% Industry 23% Wood combustion 1% Figure 1: Percentage contributions to annual total emissions in the Port Phillip region,

26 Maximum Concentration ( ppb ) NO2 300PTH 321GEE 330GRO GEE Geelong South GRO Grovedale PTH Point Henry Figure 2: Modelled concentrations of nitrogen dioxide (1-hour maximum) in the Geelong region. 11

27 Benzene 1,3-butadiene Motor vehicles 80% Industry 3% Wood combustion 8% Other sources 9% Motor vehicles 76% Industry 14% Other sources 10% Formaldehyde Vinyl Chloride Industry 4% Wood combustion 24% Motor vehicles 64% Other sources 8% Industry 100% PAHs Cadmium and compounds Motor vehicles 41% Other sources 6% Industry <1% Wood combustion 53% Other sources 18% Wood combustion 5% Industry 77% Figure 3: Percentage contributions to annual total emissions in the Port Phillip region,

28 Average Concentration (BTD) (µg m -3 ) 210MTC 230PTC 091FOO 250PAI 040RMI 260BRI 027ALP 280BOX 035DAN ALP Alphington BOX - Box Hill BRI Brighton DAN Dandenong FOO Footscray MTC - Mount Cottrell PAI - Paisley PTC - Point Cook RMI - RMIT (City) Figure 4: Modelled concentrations of 1,3-butadiene (annual average) in the Melbourne region 13