Chapter 1


Chapter 1

Introduction

1.1        On 22 March 2012 the Senate referred the Environment Protection and Biodiversity Conservation Amendment (Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development) Bill 2012 [Provisions] (the bill) to the Environment and Communications Legislation Committee (the committee) for inquiry and report by 20 June 2012.[1]

1.2        The provisions of the bill were referred on the recommendation of the Senate Selection of Bills Committee who wished for the committee 'to give careful examination to the detail of the legislation'.[2]

1.3        The bill was introduced to the House of Representatives on 22 March 2012 by the Minister for Sustainability, Environment, Water, Population and Communities, the Hon. Tony Burke.[3] The bill passed the House on 29 May 2012 with one amendment (see 'Outline of the bill' in Chapter 2).[4]

1.4        The bill has yet to be introduced to the Senate.

1.5        In accordance with usual practice the committee advertised the inquiry on its website.  In addition the committee wrote to relevant organisations inviting submissions.  The committee received 30 submissions (see Appendix 1) and held one public hearing in Canberra on 7 June 2012 (see Appendix 2).

1.6        The committee would like to thank the organisations and individuals that made submissions to the inquiry and the representatives who gave evidence at the public hearing.

Purpose of the bill

1.7        The bill seeks to amend the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) to create an Independent Expert Scientific Committee (IESC) on coal seam gas and large coal mining developments. [5]

1.8        The establishment of the IESC is part of an initiative announced by the Prime Minister, the Hon. Julia Gillard, on 21 November 2011 to provide independent scientific advice to the Commonwealth and designated state and territory governments on coal seam gas and large coal mining developments where they have a significant impact on water.[6]

1.9        In support of the IESC, the Commonwealth government has negotiated a National Partnership Agreement with relevant state and territory governments to ensure that they seek the advice of the IESC when considering applications for coal seam gas and large coal mining developments that have a significant impact on water.

Outline of the bill

1.10      The bill would establish an Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development (IESC).

1.11      The bill would require the Commonwealth environment minister to request and consider the advice of the IESC where a proposed action involves a coal seam gas development or a large coal mining development and is likely to have a significant impact on water resources and may have an adverse impact on a matter of national environmental significance.[7] In these instances the minister would be required to take into account all relevant advice provided by the IESC before deciding whether to approve or not approve an action that impacts on a matter of national environmental significance.[8]

1.12      In circumstances where the minister has requested advice from the IESC, it is proposed that the "clock be stopped" for two months on the prescribed time in which the minister is required to make a decision.[9]  This would allow the IESC adequate time to prepare their advice.

1.13      The IESC is proposed to commence on 1 July 2012.[10]

Definitions

1.14      Under the bill, a coal seam gas development is defined as:

...any activity involving coal seam gas extraction that has, or is likely to have, a significant impact on water resources:

(a) in its own right; or

(b) when considered with other developments, whether past, present or reasonably foreseeable developments.[11]

1.15      A large coal mining development is similarly defined as any coal mining activity that has, or is likely to have, a significant impact on water resources in its own right, or when considered with other developments.[12]

1.16      The term 'water resource' in the bill takes its definition from the Water Act 2007 and relates to any surface water, ground water, watercourse, lake, wetland or aquifer (whether or not it currently has water in it).[13]  The term also includes all aspects of the water resource including water, organisms and other components and ecosystems that contribute to the physical and environmental value of the water resource.

1.17      The bill does not define the term 'significant impact'.

Membership

1.18      The IESC would consist of at least five, but not more than eight members. Members of the IESC are to be appointed by the minister on a part-time basis. The minister must also appoint one member of the IESC to be the Chair.

1.19      When appointing members (other than the Chair) the minister would have to ensure that each member possesses appropriate scientific qualifications that the minister considers relevant to the performance of the IESC, including but not limited to: ecology geology, hydrology, hydrogeology, natural resource management, and health.[14]

1.20      Following the successful passing of an amendment to the bill in the House of Representatives on 29 May 2012, the bill would require a majority of the members to hold scientific qualifications and expertise in one or more of the following areas: geology, hydrology, hydrogeology, and ecology.[15]

1.21      The minister would also have to ensure that each member's appointment is not being made to represent any particular body, group or community to ensure the independence of the IESC.[16]

1.22      The terms and conditions of appointment, termination and remuneration of the IESC would be consistent with those set out in Division 3 of Part 19 of the EPBC Act.[17] This would ensure the IESC operates in a way that is consistent with other statutory bodies established under the EPBC Act (such as the Threatened Species Scientific Committee).[18]

Functions

1.23      The IESC would provide within two months of a request from either the Commonwealth environment minister or a minister of a declared state or territory, scientific advice in relation to proposed coal seam gas or large coal mining developments under their jurisdiction that are likely to have a significant impact on water resources.[19]

1.24      At the request of the Commonwealth environment minister, the IESC would also to provide advice relating to:

  • how bioregional assessments should be conducted in areas where a coal seam gas development or large coal mining development is being carried out or is proposed;
  • priority areas in which bioregional assessments should be undertaken;
  • bioregional assessments commissioned by the minister; and
  • priorities for research projects to improve scientific understanding of the impacts of coal seam gas developments and large coal mining developments on water resources.

1.25      The functions of the IESC would also include:

  • publishing information about improving the consistency and comparability of research in relation to the impacts of coal seam gas and coal mining developments on water resources;
  • publishing information relating to the development of standards for protecting water resources from the impacts of coal seam gas and coal mining;
  • collecting, analysing, interpreting and disseminating scientific information in relation to the impacts of coal seam gas and large coal mine developments on water resources;
  • doing any other function prescribed by the regulations; and
  • doing anything incidental or conducive to the performance of the functions above.

1.26      The IESC's role would be advisory only and it would have no responsibility for issuing approvals for projects or recommending whether a project should or should not be approved.

Note on inquiry

1.27      This inquiry has specifically examined the provisions of the bill (that is the establishment and operation of an independent expert scientific committee) and has not examined the wider issues of coal seam gas extraction and large scale coal mining.

1.28      The Senate Rural and Regional Affairs and Transport References Committee (RRAT) is examining the impacts of coal seam gas mining as part of a wider inquiry into the management of the Murray Darling Basin.[20] The inquiry's interim report tabled on 30 November 2011 focuses on the impacts of mining coal seam gas on the Murray Darling Basin.[21] The RRAT committee is due to table its final report on 29 June 2012.

Report structure

1.29      This report is divided into two substantive chapters. Chapter 2 briefly outlines the background and policy context in which the legislation is proposed. Chapter 3 then discusses key issues raised during the course of the committee's inquiry and outlines the committee's recommendation.

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