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Financial assurance overview and guidance documents
Financial assurance was introduced as a regulatory tool following a number of incidents where EPA conducted a cleanup. This is intended to prevent the Victorian community bearing the resulting financial cost.
The Environment Protection (Scheduled Premises) Regulations 2017 specify which scheduled activities must submit financial assurance. These include premises that have licences to conduct prescribed industrial waste management, landfills, bulk storage and container washing.
Three publications were released in 2016 providing guidance to industries requiring financial assurance:
These documents replace Guidelines for determining financial assurances – Schedule 4 premises (publication 456) and Determination of financial assurance for landfills (publication 777).
Updates have recently been made to the following publications that describe how to comply with financial assurance requirements:
All sites that have a licence condition to maintain a financial assurance will be reviewed against the reformed model. EPA will prioritise the implementation based on risk and will work with duty holders to agree to feasible timeframes for submitting a financial assurance.
Financial assurance proposals should be prepared using the guidance documents above and address the following components (at a minimum):
- amount (including supporting calculations)
- type/s – if the proposed type is not a bank guarantee, the proposal should include a justification and how risks to EPA are managed through use of the proposed type
- an overview of the premises and operations
- an overview of the company
- any information supporting the environmental track record of the company.
Financial assurance proposals should be sent to email@example.com
Landfill estimates must be assessed by an environmental auditor
EPA now requires an EPA-appointed auditor, as opposed to a ‘suitably qualified person’, to assess landfill financial assurance estimates prepared by duty holders. This requirement, and the assessment form that goes with it, will enable a streamlined, efficient approval process that minimises back and forth between duty holders and EPA.
The Landfill financial assurance calculation assessment form (form F1014) must be completed by an environmental auditor and submitted with duty holder estimates.
EPA will be requesting all active and closed landfills to submit up-to-date estimates using this new process, in stages. EPA will contact operators to let them know when they are required to submit an estimate. We understand this is a new process and we will provide support and time extensions where they are legitimately required.
Common questions related to auditor assessments have been answered below.
If you would like to provide feedback on your needs and how they can be accommodated during this rollout process, or have any questions, contact the financial assurance team on 1300 372 842 (1300 EPA VIC) or firstname.lastname@example.org.
Amending or releasing financial assurances
Duty holders can use Application for amendment or release of financial assurance
(form F1002) to apply for an amendment to an existing financial assurance or a release of financial assurance.
Duty holders may apply for an amendment to the amount of financial assurance when there is a change to the environmental conditions underpinning the calculation of the approved financial assurance amount, by contacting EPA via email@example.com
Applications for release of financial assurance should be submitted after EPA has confirmed the corresponding surrender of the licence or notice revocation.
Applications must be accompanied by sufficient evidence supporting an amendment or release of financial assurance to assist EPA to assess the application as quickly as possible.