Where a project involves an "environmentally relevant activity", environmental approvals and licences will be required under the Environmental Protection Act 1994. These are grouped by the Envrionmental Protection Agency or the relevant local government (in some circumstances) and authorise persons to carry out an environmentally relevant activity on a site. New environmentally relevant activities will require development approval from the relevant local government in accordance with the Integrated Planning Act 1997.
It is important that these approvals are obtained by the private party, and that government stands back from the approvals process. Environmental approvals and licences are the means by which the facility technology and operational specifications are reviewed externally and checked for conformity with state environment protection policies. The Envrionmental Protection Agency may impose conditions on activities with the potential to cause pollution, and has enforcement powers with respect to those conditions, as well as powers of prosecution for pollution offences.
To encourage best environmental design and practice, and to insulate government from legal liability for project operation over which it has no direct control, the private party must bear this risk.