Environment Effects Statement - EES Technical Report N Business impact assessment - Gas Import Jetty and Pipeline ...
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Environment Effects Statement July 2020 EES Technical Report N Business impact assessment
Gas Import Jetty and Pipeline Project
AGL and APA
11-Jun-2020
Business impact
assessment
Gas Import Jetty and Pipeline Project EES
Technical Report N
Prepared for – AGL Wholesale Gas Limited and APA Transmission Pty Limited – 60592634
AECOM Gas Import Jetty and Pipeline Project
Business impact assessment
Business impact assessment
Gas Import Jetty and Pipeline Project EES Technical Report N
Client: AGL and APA
ABN: 84 603 054 404
Prepared by
AECOM Australia Pty Ltd
Level 10, Tower Two, 727 Collins Street, Melbourne VIC 3008, Australia
T +61 3 9653 1234 F +61 3 9654 7117 www.aecom.com
ABN 20 093 846 925
11-Jun-2020
Job No.: 60592634
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Technical Report N: Business impact assessment
Table of Contents
Executive summary i
Methodology i
Existing conditions i
Impact assessment ii
Mitigation measures iii
Abbreviations v
Glossary of terms vi
1.0 Introduction 1
1.1 Purpose 1
1.1.1 Why understanding business impact is important 1
1.2 Project description 2
1.2.1 Gas Import Jetty Works 2
1.2.2 Pipeline Works 2
1.2.3 Construction 2
1.2.4 Operation and maintenance 3
1.2.5 Decommissioning 3
1.3 Project Area 4
1.3.1 Study areas 6
2.0 Scoping requirements 10
2.1 Draft evaluation objectives 10
2.2 Assessment of specific environmental effects 10
3.0 Legislation, policy and guidelines 12
4.0 Methodology 16
4.1 Existing conditions assessment 16
4.2 Risk assessment method 16
Application of mitigation measures 18
4.3 Impact assessment 19
4.4 Assumptions and limitations 19
4.5 Stakeholder engagement 19
4.6 Linkage to other technical reports 20
5.0 Existing conditions 22
5.1 Study area characteristics 22
5.1.1 Local government area characteristics 22
5.1.2 Hastings characteristics 24
5.2 Existing businesses within the study area 26
5.2.1 Gas Import Jetty Works 26
5.2.2 Pipeline Works 27
6.0 Risk assessment 33
7.0 Impact assessment 36
7.1 Gas Import Jetty Works 36
7.1.1 Construction (Risk ID B1) 36
7.1.2 Operation 36
7.2 Pipeline Works 37
7.2.1 Construction 37
7.2.2 Operation 41
8.0 Recommended mitigation measures 42
9.0 Conclusion 44
9.1 Impact assessment summary 44
9.1.1 Gas Import Jetty Works 44
9.1.2 Pipeline Works 44
9.2 Residual risk 44
10.0 References 45
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Table of Figures
Figure 1 Project Area overview 5
Figure 2 Study area LGAs 7
Figure 3 Study area SA2s 7
Figure 4 Study area SA2s 8
Figure 5 Areas of interest (overview) 9
Figure 6 Urban growth boundary 24
Figure 7 Summary of persons commuting to the Hastings - Somers SA2 25
Figure 8 Travel mode used by persons commuting to the Hastings - Somers SA2 26
Figure 9 Summary of commercial land use (parcels) 28
Figure 10 Land use along pipeline alignment 28
Figure 11 Land use (Hastings) 29
Figure 12 Number of businesses in SA1 study area 30
Figure 13 Businesses by SA1 in Hastings 30
Figure 14 Employment Size (in SA2 study area) 31
Figure 15 Annual Turnover (in SA2 study area) 31
Figure 16 Number of businesses in Hastings-Somers SA2 by industry 32
Figure 17 Southern commercial area 38
Figure 18 Central commercial area 39
Figure 19 Northern commercial area 40
Table of Tables
Table 1-1 Land-based study areas used in this business impact assessment 6
Table 2-1 Scoping requirements for business impact assessment 10
Table 3-1 Primary legislation and associated information 12
Table 4-1 Existing conditions data 16
Table 4-2 Business impact assessment consequence rating criteria 17
Table 4-3 Likelihood guide 18
Table 4-4 Risk assessment matrix 18
Table 4-5 Stakeholder engagement 20
Table 6-1 Business risks 34
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Executive summary
This report assesses the potential impacts on non-agricultural businesses as a result of the Gas
Import Jetty and Pipeline Project (the Project).
AGL Wholesale Gas Limited (AGL) and APA Transmission Pty Limited (APA) propose to establish a
gas import jetty and pipeline respectively, consisting of a:
• floating storage and regasification unit (FSRU) at Crib Point Jetty (Gas Import Jetty Works)
• gas pipeline between Crib Point and Pakenham to connect to the Victorian Transmission System
(VTS) east of Pakenham (Pipeline Works).
The Project would supply imported natural gas into the south-eastern Australian gas market for
industrial, commercial and residential gas customers meeting a projected domestic gas shortfall and
improving gas supply certainty.
Potential impacts on agricultural businesses are detailed further in EES Technical Report O:
Agriculture impact assessment.
Methodology
A review of the existing conditions was conducted through a combination of desktop research and
data analysis, including employment statistics, commercial land use and business type data and an
assessment of journey to work data. To enable an understanding of existing conditions, traders were
door-knocked on two occasions and face-to-face discussions were held regarding the Project and
pipeline alignment. Traders were invited to attend a Business Impact Forum to identify potential
impacts from the Project and discuss mitigation approaches. A survey was available for local
businesses to complete at the forum and online. As a low level of local businesses decided to provide
feedback on the Project, the impact assessment has also drawn on the experience of previous
business impact assessments (BIA) such as the Edithvale and Bonbeach BIA in describing the nature
and magnitude of different impacts.
The mitigation measures were developed to avoid or minimise potential adverse effects of the Project
on non-agricultural businesses. In many cases, the effects on these businesses are shared by other
stakeholders (e.g. residents) and therefore some mitigation measures perform the same function for
both residential and commercial uses.
Existing conditions
The existing conditions review found that all non-agricultural businesses with the potential to be
materially impacted by the construction and/or operation of the Project are in Hastings. Judicious
selection of the pipeline alignment and the use of existing, under-utilised infrastructure at Crib Point
(Berth 2 of the Crib Point Jetty) has avoided other non-agricultural businesses.
Most businesses that may be affected by the Project are considered small businesses in terms of
revenue (less than two million dollars per annum in turnover) and employees (fewer than 20
employees). In addition, businesses are very car dependent, with a large majority of employees,
customers and suppliers accessing the sites by private vehicle. For instance, close to 70 percent of
workers drove to work from within the same suburb (i.e. live and work in the Hastings-Somers
Statistical Area 2) in a private vehicle.
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Impact assessment
The impacts associated with the Gas Import Jetty Works and the Pipeline Works were considered
separately. Impacts were examined during both the construction and operational phases. The impact
assessment has been developed based on feedback from stakeholders, inputs from other technical
reports, and an assessment of potential impacts based on an understanding of existing conditions.
The assessment identified that the primary risk to businesses is associated with potential temporary
disruption to business operations during construction of the pipeline through the Hastings region,
resulting from changes to road and/or car parking conditions. These temporary changes could restrict
access to businesses for customers, staff and deliveries.
APA has carried out a pipeline alignment selection process having regard to potential environmental
and amenity impacts, discussions with landholders, business operators and the broader community,
constructability considerations and ensuring the Project can be delivered and operated safely. For this
assessment, the by APA pipeline alignment through Hastings was altered to use the existing Stony
Point rail corridor as much as practicable, substantially reducing the potential for business impacts,
compared to other options that were considered (i.e. a pipeline alignment along Frankston-Flinders
Road). The selection of trenchless construction methodology through much of Hastings also assists in
minimising construction activities on the surface.
Potential disruptions to business operations during construction would be predominantly limited to four
businesses within the northern commercial area in Hastings. It is expected that any impacts on these
four businesses would be temporary during the construction period. Consultation with potentially
affected businesses should be carried out prior to the commencement of construction near these
businesses, to identify appropriate mitigations, such as the provision of temporary alternative access
arrangements.
There is also a minor risk of potential amenity impacts on businesses in Hastings from the generation
of noise and dust during construction. The likelihood of these events materially affecting businesses is
low when having regard to the alignment of the pipeline through Hastings, which generally avoids the
more-sensitive business frontages along roads. Potential amenity impacts on businesses during
construction would be appropriately managed through the range of mitigation measures that would be
implemented as part of the Environmental Management Plan (EMP) for the Project.
There are not expected to be any material risks to ongoing business operations during the
construction period for the Gas Import Jetty at Crib Point. Only one business was identified within the
relevant study area (the Victorian Maritime Centre at Crib Point) and potential indirect impacts from
construction at the adjacent Crib Point Jetty would be managed through the implementation of
mitigation measures standard for construction projects of this scale and type, such as ensuring
ongoing access through provisions to be set out in the Traffic Management Plan (TMP) and the EMP.
It is not considered that there would be any business impacts during the operational phase for either
the Pipeline Works or Gas Import Jetty Works of the Project.
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Mitigation measures
The following mitigation measures are recommended for the Project:
MM ID Recommended mitigation measures Works Stage
MM- Stakeholder Engagement Management Strategy Gas Import Design,
SE01 A Stakeholder Engagement Management Strategy should be Jetty Construction
prepared to facilitate ongoing consultation between the Works and and
proponent and the community (including relevant Councils, Pipeline Operation
government authorities, adjoining affected landowners and Works
businesses and other community groups directly impacted by
the Project).
The Stakeholder Engagement Management Strategy should be
a requirement of the EMP for the Gas Import Jetty Works. For
the Pipeline Works, the Stakeholder Engagement Management
Strategy should be consistent with the Consultation Plan being
prepared for the Pipeline Licence. The Stakeholder Engagement
Management Strategy should:
• identify people and organisations to be consulted during the
design and work phases
• set out procedures and mechanisms for the regular
distribution of accessible information about or relevant to the
Project
• identify opportunities to provide information regularly about
construction activities, schedules and milestones
• detail the measures for advising the community in advance
of upcoming works (where necessary)
• set out procedures and mechanisms for consulting with
relevant council(s) and government authorities/agencies
• set out procedures and mechanisms:
• through which the community can discuss or provide
feedback to the Proponent,
• through which the Proponent will respond to enquiries or
feedback from the community, and
• to resolve any issues and mediate any disputes that may
arise in relation to environmental management and delivery
of the Project.
The Stakeholder Engagement Management Strategy should be
implemented for the duration of the construction works and for
12 months following completion of construction.
MM- Pipeline alignment change to Stony Point rail corridor Pipeline Construction
BU01 The pipeline alignment and construction methodology in Works
Hastings has been changed to the Stony Point rail corridor to
reduce amenity (traffic, visual, air quality and noise) impacts on
businesses along Frankston-Flinders Road and sensitive
receptors in Hastings.
Specific mitigation measures have been developed to address business impacts as part of other
Technical Reports prepared for the EES. The following Technical Reports describe specific mitigation
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measures regarding noise and dust emissions, and traffic management during construction of the
Project:
• EES Technical Report G: Air quality impact assessment
• EES Technical Report H: Noise and vibration impact assessment
• EES Technical Report J: Transport impact assessment.
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Abbreviations
Abbreviation Definition
ABS Australian Bureau of Statistics
AECOM AECOM Australia Pty Ltd
AGL AGL Wholesale Gas Limited
ANZSIC Australian and New Zealand Standard Industrial Classification
APA APA Transmission Pty Limited
ATO Australian Taxation Office
Db(A) Decibels
BIA Business impact assessment
EES Environment Effects Statement
EMF Environmental Management Framework
FAFR Flinders Aquaculture Fisheries Reserve
FSRU Floating storage and regasification unit
LGA Local Government Area
LNG Liquefied natural gas
PoHDA Port of Hastings Development Authority
SA1 Statistical Area 1
SA2 Statistical Area 2
SSIP State Significant Industrial Precinct
VIFSA Victoria in Future Small Areas
VRCA Victorian Regional Channel Authority
VTS Victorian Transmission System
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Glossary of terms
Term Definition
Statistical Area 1 Statistical Areas Level 1 (SA1) are geographical areas built from whole Mesh Blocks.
Whole SA1s aggregate to form Statistical Areas Level 2 (SA2) in the Australian Statistical
Geography Standard (ASGS) Main Structure. The SA1s have generally been designed
as the smallest unit for the release of census data. SA1s have a population of between
200 and 800 people with an average population size of approximately 400 people.
Statistical Area 2 Statistical Areas Level 2 (SA2) are medium-sized general purpose areas built up from
whole Statistical Areas Level 1. Their purpose is to represent a community that interacts
together socially and economically. SA2s generally have a population range of 3,000 to
25,000 persons.
Local Government A spatial unit which represents the whole geographical area of responsibility of an
Areas incorporated Local Government Council.
Decibel scale The decibel scale is logarithmic in order to produce a better representation of the
response of the human ear.
A 3 dB increase in the sound pressure level corresponds to a doubling in sound energy.
A 10 dB increase in the sound pressure level corresponds to a perceived doubling in
volume.
The decibel levels of common sounds are:
0 dB(A) Threshold of human hearing
30 dB(A) A quiet country park
40 dB(A) Whisper in a library
50 dB(A) Open office space
70 dB(A) Inside a car on a freeway
80 dB(A) Outboard motor
90 dB(A) Heavy truck pass-by
100 dB(A) Jack hammer / subway train
110 dB(A) Rock Concert
115 dB(A) Limit of sound permitted in industry
120 dB(A) 747 take off at 250 metres
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1.0 Introduction
This report assesses the potential business impacts associated with the construction and operation of
the Gas Import Jetty and Pipeline Project (the Project).
AGL Wholesale Gas Limited (AGL) and APA Transmission Pty Limited (APA) propose to establish a
gas import jetty and pipeline respectively, consisting of a:
• floating storage and regasification unit (FSRU) at Crib Point Jetty (Gas Import Jetty Works)
• gas pipeline between Crib Point and Pakenham to connect to the Victorian Transmission System
(VTS) east of Pakenham (Pipeline Works).
The Project would supply imported natural gas into the south-eastern Australian gas market for
industrial, commercial and residential gas customers meeting a projected domestic gas shortfall and
improving gas supply certainty.
The Project was referred by AGL and APA to the Victorian Government under the Environment Effects
Act 1978 as two separate projects consisting of the Gas Import Jetty Works and Pipeline Works on 13
September 2018. On 8 October 2018, the Minister for Planning issued a decision determining that an
Environment Effects Statement (EES) is required for the Project due to the potential for a range of
significant environmental effects.
Both the Gas Import Jetty Works and Pipeline Works were also referred to the Commonwealth
Government under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) as
separate projects and each were designated as a controlled action requiring impact assessment under
the EPBC Act. The EES process is the accredited environmental assessment for the controlled action
decisions under the EPBC Act in accordance with the bilateral agreement between the
Commonwealth and Victoria.
1.1 Purpose
The purpose of this report is to provide a business impact assessment (BIA) for the EES and to
develop mitigation measures for potential impacts. This will inform the development of an
Environmental Management Framework (EMF) for the Project. The mitigation measures listed in the
EMF would be implemented in the approvals and management plans for the Project.
This report does not include the assessment of agricultural businesses which may potentially be
affected by the Project, as this has been detailed in EES Technical Report O: Agriculture impact
assessment. Subsequently, this has limited the scope of this assessment to non-agricultural
businesses and commercial areas.
1.1.1 Why understanding business impact is important
The Project presents a unique set of challenges and opportunities for local traders, residents, and the
wider community, particularly in Hastings. Local businesses contribute to the character of the
neighbourhood and provide significant economic benefits for local residents. As such, they are valued
by the communities in which they operate.
The purpose of this report is to understand the impacts on local businesses from the Project and
subsequently inform the management and mitigation of impacts during the design, construction and
operational phases. The BIA involved an assessment of construction and operation activities as they
relate to business impacts as well as consultation with a cross-section of business stakeholders who
are located within the study area.
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1.2 Project description
The Project is made up of two sets of works: the Gas Import Jetty Works and the Pipeline Works.
The Gas Import Jetty Works and the Pipeline Works would be undertaken by AGL and APA
respectively and are described in the following sections.
1.2.1 Gas Import Jetty Works
The Gas Import Jetty Works would consist of a liquefied natural gas (LNG) import facility, which
comprises:
• continuous mooring of an FSRU at Berth 2 of the existing Crib Point Jetty, which would store LNG
and regasify LNG into natural gas
• Jetty Infrastructure on the Crib Point Jetty including marine loading arms (MLAs) and gas piping
to transfer the gas from the FSRU to the Crib Point Receiving Facility
• Crib Point Receiving Facility, including metering, odorant injection and nitrogen injection, which
would be located on land adjacent to the Crib Point Jetty.
An FSRU is a vessel approximately 300 metres in length and 50 metres in breadth. Visiting vessels
carrying LNG (LNG carriers) would berth alongside the FSRU to transfer LNG from the LNG carriers to
the FSRU which could take up to approximately 36 hours. The FSRU would store the LNG as a liquid
and when required, return LNG back into a gaseous state by heating the LNG using either seawater or
gas-fired boilers (a process known as regasification).
Following regasification, the natural gas would be transferred through gas piping along the jetty from
the FSRU to the Crib Point Receiving Facility. The Crib Point Receiving Facility would include
treatment facilities to inject odorant and nitrogen (as required) into the natural gas to meet VTS gas
quality specifications.
1.2.2 Pipeline Works
The Pipeline Works would comprise a bi-directional gas transmission pipeline to transport gas from the
Crib Point Receiving Facility to the VTS east of Pakenham. The pipeline would be approximately 57
kilometres long with a nominal diameter of 600 millimetres. The pipeline would be buried at a depth of
generally 1.2 metres below ground (to the top of the pipe).
The Pipeline Works also comprises the following facilities:
• the pigging facility at the Crib Point Receiving Facility, which would allow for in-line inspections of
the pipeline with a pipeline inspection gauge (pig)
• the above ground Pakenham Delivery Facility situated adjacent to the Pakenham East rail depot
to monitor and regulate the gas
• the below ground End of Line Scraper Station (EOLSS) located at the connection point to the
VTS, north of the Princes Highway in Pakenham
• two above ground mainline valves (MLVs) that would be situated along the pipeline alignment,
which would allow for isolation of the pipeline in an emergency.
1.2.3 Construction
The key construction activities for the Gas Import Jetty Works include:
• establishment of construction sites including laydown areas
• installation of Jetty Infrastructure on the Crib Point Jetty, including MLAs, gas piping mounted to
the jetty, electrical and instrumentation equipment and a firefighting system
• construction of the Crib Point Receiving Facility.
Construction for the Gas Import Jetty Works would take approximately 18 to 27 months, depending on
weather conditions.
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The key construction activities for the Pipeline Works include:
• establishment of laydown areas
• construction of the pigging facility at Crib Point Receiving Facility, Pakenham Delivery Facility,
two MLVs and the EOLSS
• pipeline construction using construction techniques such as trenching, horizontal directional
drilling (HDD) or boring, typically within a 30-metre-wide pipeline construction right of way (ROW).
Construction for the Pipeline Works would take approximately 18 to 24 months, depending on weather
conditions.
Pending on the staging of the works outlined above, construction for the entire Project is expected to
take approximately 18 to 27 months.
1.2.4 Operation and maintenance
When commissioned, the operation of the FSRU would be undertaken by an experienced third-party
operator. The Crib Point Receiving Facility and associated Jetty Infrastructure would either be owned
and operated by AGL or an experienced third-party operator. The Pipeline Works would be owned and
operated by APA.
The FSRU may leave Western Port during the Project lifetime for activities such as scheduled
maintenance and extreme weather events.
The gas import jetty would initially receive approximately 12 LNG carriers per year with capacity to
increase to approximately 40 LNG carriers per year. The number and frequency of LNG carriers
arriving annually would depend on their storage capacity and gas demand.
The Crib Point Receiving Facility is designed to be automated and may be operated unmanned under
normal operating conditions.
An operational easement of generally 15 metres in width would apply to the pipeline alignment. The
pipeline easement would be inspected for any operational or maintenance issues on a routine basis in
accordance with APA procedures. The pipeline would also be designed and constructed so that
pigging can be undertaken to inspect the integrity of the pipeline as required. Pigging would be
undertaken around 10 years after construction and then at a frequency determined by the first
inspection.
The Pakenham Delivery Facility is also designed to be automated and operate unmanned under
normal operating conditions.
The EOLSS would be buried with valves contained within concrete pits. The connection to the VTS
would operate unmanned. Excavation of the site to access the EOLSS would be required for the
pigging activities.
1.2.5 Decommissioning
The FSRU is expected to operate for approximately 20 years. However, the operating period may be
shortened or extended to address security and stability of gas supply to south-eastern Australia. When
the Project is no longer required, the FSRU would leave Western Port.
The Jetty Infrastructure installed on the Crib Point Jetty and the Crib Point Receiving Facility would be
decommissioned and removed when no longer required. The Crib Point Jetty would remain as an
operational jetty under the management of the Port of Hastings Development Authority (PoHDA).
The pipeline is designed and built with a design life of 60 years. If the Pipeline Works are no longer
required, they would be decommissioned in accordance with Australian Standard AS2885 Pipelines –
gas and liquid petroleum and relevant legislative and approval requirements at the time of
decommissioning.
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1.3 Project Area
The Project Area is situated between Crib Point and Pakenham East, Victoria within the local
government areas of Mornington Peninsula Shire, City of Casey and the Shire of Cardinia. The Project
Area includes the construction and operation footprints for the Gas Import Jetty Works and the
Pipeline Works. The Project Area is detailed in EES Attachment VII Map book. An overview of the
Project showing the proposed pipeline alignment and current options is shown in Figure 1.
The Gas Import Jetty Works would be situated at the existing Crib Point Jetty and on land immediately
adjacent. The Crib Point Jetty is located within the Port of Hastings and the Western Port Ramsar site.
The Pipeline Works would be located on land between the Crib Point Receiving Facility and a
connection point to the VTS east of Pakenham. The pipeline alignment has been selected to minimise
impacts on sensitive land uses and where possible follows existing pipeline easements. The pipeline
would be located on land used for several purposes including rural residential living, road corridors,
industry, conservation reserves, hobby farming, horse studs and agriculture. The pipeline would
generally follow the Stony Point rail reserve through Hastings. Towards Pakenham, the pipeline would
cross the Gippsland rail line prior to reaching the proposed Pakenham Delivery Facility adjacent to the
Pakenham East rail depot and connecting to the VTS north of the Princes Highway.
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Figure 1 Project Area overview
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1.3.1 Study areas
For the purposes of the assessment, related but distinct land-based study areas have been identified.
This reflects the available data, which is available at different levels. These levels include:
• Local Government Areas (LGAs): An LGA is a spatial unit which represents the whole
geographical area incorporated within a Local Government Council.
• Statistical Area Level 1 (SA1): SA1s are generally the smallest unit for the release of census data
from the ABS. SA1s have a population size between 200 and 800 people, with the average being
approximately 400 people.
• Statistical Area Level 2 (SA2): SA2s are a general-purpose medium-sized area comprising of
whole SA1s. The aim of SA2s is to represent a community that interacts together socially and
economically.
To describe existing conditions and impacts, the business impact assessment assesses four land-
based study areas (see Table 1-1). For completeness, the study area for this business impact
assessment also considered the Western Port marine environment.
Table 1-1 Land-based study areas used in this business impact assessment
Study area type What it is used for
LGA Used to assess broader area characteristics such as population and general area
characteristics.
SA2 Employment data (number of employees, revenue), business type, method of
journey to work statistics and population growth rates are presented at the SA2
level.
SA1 Number of businesses and business density are shown at SA1 level allowing for
assessment of potential impacts on discrete areas near the Project.
Land use parcels Type of land use has been identified by individual land parcels. This is important as
impacts from the Project are different depending on how sensitive the commercial
land use is to temporary or permanent changes.
Figure 2 to Figure 4 show the three different levels of data that is presented, forming the different
perspectives on the study area for this assessment.
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Figure 2 Study area LGAs
Figure 3 Study area SA2s
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Figure 4 Study area SA2s
The primary focus of this business impact assessment (Section 7.0) is three areas of interest within
Hastings being the northern, central and southern commercial areas shown in Figure 5. These were
chosen as areas of focus because they contain businesses which may be directly affected by
construction activities, potentially through vehicle/pedestrian access and parking limitations as well as
noise, dust and vibration. The land between the southern and central commercial areas is residential
and no businesses are therefore expected to be impacted in this area. Notwithstanding, the use of the
railway corridor and trenchless construction is also proposed within this residential area to avoid
potential direct and indirect impacts on the surface. The remainder of the study area contains primarily
agricultural businesses or residential uses and therefore are outside the scope of this BIA.
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Figure 5 Areas of interest (overview)
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2.0 Scoping requirements
The EES scoping requirements for the Project were issued by the Victorian Minister for Planning in
February 2019, and augment the key matters listed in the Minister's decision to require an EES. The
scoping requirements set out the specific matters to be investigated and documented in the EES in the
context of the Ministerial guidelines for assessment of environmental effects under the Environment
Effects Act 1978. The EES is an accredited assessment process for the purposes of the assessment
of the Project under the EPBC Act, and the EES scoping requirements also include matters to be
assessed under the EPBC Act.
2.1 Draft evaluation objectives
The following draft evaluation objective is relevant to business and identifies the desired outcomes in
the context of potential Project effects. The draft evaluation objectives, as set out in the final scoping
requirements, provide a framework to guide integrated assessment of the environmental effects of the
Project. These draft evaluation objectives are to be used in the context of the relevant legislative
requirements set out in Section 3.0.
Draft evaluation objective for business impact assessment
Social, economic, amenity and land use – To minimise potential adverse social, economic,
amenity and land use effects at local and regional scales.
2.2 Assessment of specific environmental effects
The following extracts from the scoping requirements, issued by the Minister for Planning, are relevant
to the draft evaluation objective(s) listed above.
Table 2-1 Scoping requirements for business impact assessment
Aspect Scoping requirement Relevant section
Key issues • Potential for Project works to affect Section 7.0 (Impact assessment)
business (including farming) operations or
other existing or approved facilities or land
uses.
• Potential for temporary or permanent
changes to use of or access to existing
infrastructure in the Project Area and in its
vicinity.
Priorities for • Identify existing and reasonably Section 5.0 (Existing conditions)
characterising the foreseeable land uses and businesses
existing environment occupying land to be traversed by, or
adjacent to, the Project.
• Identify relevant strategic plans specifying
or encouraging land use outcomes for land
to be occupied by the Project.
Design and mitigation • Identify options for mitigating impacts from Section 6.0 (Risk assessment)
measures the Project construction or operation on Section 7.0 (Impact assessment)
adjacent businesses and community Section 8.0 (Mitigation measures)
facilities including open space.
Assessment of likely • Identify implications for current land uses Section 7.0 (Impact assessment)
effects and immediately foreseeable changes in
land use.
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Aspect Scoping requirement Relevant section
Approach to manage • Measures to manage other potentially Section 8.0 (Mitigation measures)
performance significant effects on amenity,
environmental quality and social wellbeing
(including access to open spaces) should
also be addressed in the EES, including a
framework for identifying and responding to
emerging issues, as part of the EMF
(Section 5).
• Describe any further measures that are
proposed to enhance social outcomes, and
either manage risks to landscape and
recreational values, or enhance visual
amenity outcomes both for residents living
near the Project and for visitors to the
locality, to form part of the EMF (see
Section 5).
In the context of this report, ‘effects’ includes all potential direct, indirect, on-site and off-site
environmental impacts resulting from the Project. The description and assessment of effects is not
confined to the immediate area of the Project but also considers the potential of the Project to impact
on adjacent or other areas that could be affected, in the context of a systems-based approach.
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3.0 Legislation, policy and guidelines
Table 3-1 summarises the relevant legislation that applies to the Project in the context of this business
impact assessment as well as the implications and required approvals.
Table 3-1 Primary legislation and associated information
Document Description Implications for the Project Works area
State
Legislation
Environment The Environment Effects Act On 8 October 2018, the Gas Import Jetty
Effects Act provides a regime where Victorian Minister for Works and Pipeline
1978 projects with potentially Planning determined that an Works
(Environment significant environmental EES was required for the
Effects Act) impacts may require the Gas Import Jetty Works and
preparation of an EES for Pipeline Works (as a single
assessment by the Minister joint project). In February
for Planning. An EES may be 2019, the Minister for
required for declared ’public Planning issued the scoping
works’ or works determined requirements for the Project.
by the Minister for Planning The EES has been prepared
to require an EES following in accordance with these
referral. Where an EES is scoping requirements, which
required, the Minister for require the assessment of a
Planning will issue scoping range of specific
requirements to guide environmental effects.
preparation of the EES. The EES would be placed on
Once the EES is prepared it public exhibition and an
is placed on exhibition for inquiry would be appointed to
public comment (typically for consider the environmental
20 to 30 days). effects of the projects. At the
The Minister for Planning conclusion of the EES
may appoint an inquiry to assessment process the
assess the impacts of the Minister for Planning’s
project, taking into account Assessment Report would be
the EES studies and any provided to the relevant
public submissions. This can statutory decision-makers to
involve a formal hearing. inform their decisions
The Minister for Planning whether to grant approvals
subsequently provides an for the projects.
assessment (typically within
25 business days of the
inquiry report being
received), having considered
the proponent’s response,
public submissions, EES
documents and the inquiry
report. The relevant statutory
decision-makers must
consider the Minister for
Planning’s Assessment when
deciding whether to approve
the project and, if so, on what
conditions.
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Document Description Implications for the Project Works area
Planning and The Planning and The Planning and Gas Import Jetty
Environment Environment Act establishes Environment Act is relevant Works and Pipeline
Act 1987 a framework for planning the due to the potential impacts Works
(Planning and use, development and on landowners, where the
Environment protection of land in Victoria. land is used for business
Act) The Planning and purposes.
Environment Act provides for More specifically, the pipeline
the preparation of planning construction has the potential
schemes in each municipality to disrupt the way in which
consistent with the Victoria owners utilise and develop
Planning Provisions (VPPs) their land for business
and procedures by which purposes. Where applicable,
planning schemes may be these matters are addressed
amended and planning through consultation with
permits obtained to govern landowners and
land use and development. compensation where
applicable under the
Pipelines Act. Measures to
reduce the potential
disruption to businesses from
pipeline construction include
ongoing consultation with
business owners and
alternative access
arrangements as outline in
the Transport Management
Plan (TMP).
Transport The Transport Integration Act Business owners and Gas Import Jetty
Integration Act provides a legislative employees can reasonably Works and Pipeline
2010 framework for transport in expect to be considered and Works
(Transport Victoria. The Act seeks to consulted during the EES on
Integration integrate land use and traffic implications of the
Act) transport planning and Project.
decision-making by applying Interruption to movement
the framework to land use during construction needs to
agencies whose decisions be considered.
can significantly impact on Potential impacts associated
transport. The Transport with pipeline construction
Integration Act requires works have been significantly
agencies, including the reduced by utilising the Stony
Department of Transport and Point rail corridor for the
Planning Authorities, to pipeline alignment through
consider the potential impact Hastings, combined with the
of land use planning use of horizontal directional
proposals on transport. drilling (HDD) as the
The vision statement states construction methodology.
that Parliament recognises Interruption to movements
the aspirations of Victorians during operation of the
for an integrated and Project is associated with the
sustainable transport system movement of nitrogen trucks
that contributes to an to and from the Crib Point
inclusive, prosperous and Receiving Facility.
environmentally responsible
State.
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Document Description Implications for the Project Works area
Road The Road Management Act The Road Management Act Gas Import Jetty
Management provides a statutory provides a statutory Works and Pipeline
Act 2004 (Road framework for the framework for the Works
Management management of Victorian management of the Victorian
Act) road networks and facilitates road network. Consent may
the coordination of road be required under the Act for
reserves for roadways, works on, in or under any
pathways, infrastructure and road.
similar purposes. A Traffic Management Plan
While the Minister for Roads (TMP) would be prepared to
is responsible for mitigate any impacts to
administering the Act, business during construction
VicRoads is responsible for of the Project.
the management of freeways
and arterial roads that are
used by through traffic.
Arterial roads not used by
through traffic and service
roads will be managed by the
relevant local council. Non-
arterial roads will be
managed by whichever
person or body is prescribed
to do so.
Pipelines Act The Pipelines Act is the The Pipelines Act intends Pipeline Works
2005 (Pipelines primary Act governing the that responsible authorities
Act) construction and operation of consider several relevant
pipelines in Victoria. The 'Principles of sustainable
Pipelines Act covers ‘high development', including that
transmission’ pipelines for long and short-term
the conveyance of gas, oil economic, environmental,
and other substances. social and equity
DELWP and Energy Safe considerations should be
Victoria are responsible for effectively integrated into
administering the Act and the decision-making.
Pipelines Regulations 2017. The Pipelines Act requires
that landowner and business
interests are an integral part
of the planning and design
process for pipelines and
provides for compensation
where appropriate.
Local
Policy / guidelines / standards
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Document Description Implications for the Project Works area
Planning Policy The Planning Policy To ensure integrated Gas Import Jetty
Frameworks Framework (PPF) decision-making, authorities Works and Pipeline
(PPF) encourages and facilitates must take into account the Works
sustainable land uses related general principles and
to business and industrial specific policies contained in
land uses. the PPF. The Project would
The key PPF clauses of deliver improved access and
relevance to business are: efficiency associated with
• Clause 11 which states resource access. However,
that planning should respond access to jobs and
to the needs of existing and businesses and business
future communities through operations may be
provision of zones and temporarily interrupted during
serviced land for, amongst construction.
other things, employment,
commercial and community
facilities and infrastructure
• Clause 17.01-1 which
promotes the achievement of
net community benefit in
relation to accessibility,
efficient infrastructure use
and the aggregation and
sustainability of commercial
facilities.
Mornington The aim of the Mornington Relevant objectives under Gas Import Jetty
Peninsula Peninsula Planning Scheme the Mornington Peninsula Works.
Planning is: Planning Scheme are:
Scheme • to provide a clear and • to encourage the
consistent framework within concentration of major retail,
which decisions about the residential, commercial,
use and development of land administrative, entertainment
can be made and cultural developments
• to express state, into activity centres that are
regional, local and highly accessible to the
community expectations for community.
areas and land uses Access to businesses will be
• to provide for the considered in the EES
implementation of state, Technical Report N:
regional and local policies Business impact
affecting land use and assessment.
development.
Mornington Alongside the Mornington Regulatory authorities will Gas Import Jetty
Peninsula Peninsula Planning Scheme, have regard for the Localised Works and Pipeline
Localised the Localised Planning Planning Statement in Works
Planning Statement sets out the assessing the potential
Statement (July policies and provisions that impacts of the Project.
2014) control land use and
development in the
Peninsula.
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4.0 Methodology
A systematic risk-based approach has been applied to understand the existing environment, the
potential impacts of the Project and how to avoid, minimise or manage the risk of impact.
The following sections outline the method for the business impact assessment.
4.1 Existing conditions assessment
A review of the existing conditions was conducted through a combination of desktop research and
data analysis, using the data sources displayed in Table 4-1.
Table 4-1 Existing conditions data
Parameter Data source Study area
Population ABS Census (2016) SA2
Employment data ABS Businesses by Industry Division (2016) SA2
Business types ABS Businesses by Industry Division (2016) SA2
Method of journey to work ABS Census (2016) SA2
Population growth rates Victoria in Future (2016) VIFSA (SA2 proxy)
Number of businesses Worksafe statistics (2016) SA1
Commercial land use DEDJTR Victorian Land Use Information System (2016) Land parcels
Technical reports that informed the findings include:
• EES Technical Report G: Transport impact assessment
• EES Technical Report H: Noise and vibration impact assessment
• EES Technical Report I: Air quality impact assessment
• EES Technical Report O: Agriculture impact assessment
• EES Technical Report L: Land use impact assessment
• EES Technical Report M: Social impact assessment.
The desktop review was an essential first step for assessing and reviewing the potential impacts on
local businesses from the Project, as it gave direction towards the parties necessary for consultation to
understand impacts during both the construction and operational phases.
4.2 Risk assessment method
The EES scoping requirements for the Project require that a risk-based approach be adopted for
assessment of the potential impacts of the Project. A risk assessment was carried out using an
approach that is consistent with Australian/New Zealand Standard AS/NZS ISO 31000:2018 Risk
Management Process.
The risk assessment process provides a method for:
• facilitating a consistent approach to risk assessment across the various specialist studies in the
EES
• identifying key Project risks to inform where detailed investigations are required
• ensuring that the level of investigation is proportionate to the relative environmental risk
• assessing the effectiveness of proposed mitigation measures and whether additional measures
may be required.
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Risk can be defined as a combination of:
• the magnitude of potential consequences of an event
• the likelihood of the event occurring.
The risk assessment process developed for the Project involved the assignment of consequence and
likelihood ratings which combined to give an overall risk level for each identified risk.
The initial findings of the impact assessment were used to identify and describe cause-and-effect
pathways for the Project and thereby determine links between Project activities and their subsequent
environmental consequences (known as risk pathways). These risk pathways were identified
considering the assets, values and uses requiring protection identified during the existing conditions
assessment.
Assigning consequence of risks
In this risk assessment, the consequences of a risk occurring were assigned using a consequence
guide. Specific consequence categories were developed considering existing conditions in the study
area. The consequence rating criteria used in the risk assessment specifically for risks relating to
business is shown in Table 4-2.
Table 4-2 Business impact assessment consequence rating criteria
Level Qualitative description
Negligible The net change in real annual business income in the precinct is in the range of 0-5
per cent.
On average, that would result in only the most very marginal businesses in the
precinct being unprofitable.
Minor The net change in real annual business income in the precinct is in the range of 5-10
per cent.
On average, that would result in only the marginal businesses in the precinct being
unprofitable.
Moderate The net change in real annual business income in the precinct is in the range of 10-15
per cent.
On average, that would result in many businesses in the precinct being on the verge
of being unprofitable.
Major The net change in real annual business income in the precinct is in the range of 15-20
per cent.
On average, that would likely result in most businesses being unprofitable.
Severe The net change in real annual business income in the precinct is greater than 20 per
cent.
On average, that would likely result in all businesses being unprofitable.
Assigning likelihood of risks
A likelihood rating for each identified risk pathway has been assigned using the guide in Table 4-3.
The likelihood criteria in the risk assessment range across a scale from ‘almost certain’ where ‘the
event is expected to occur in most circumstances or is planned to occur’ to ‘rare’ where ‘the event may
occur only in exceptional circumstances.’
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Table 4-3 Likelihood guide
Level Description
Rare The event may occur only in exceptional circumstances
Unlikely The event could occur but is not expected
Possible The event could occur
Likely The event will probably occur in most circumstances
Almost Certain The event is expected to occur in most circumstances or is planned to occur
Risk matrix and risk rating
Together the consequence and likelihood were combined to arrive at a risk rating, using the matrix
shown in Table 4-4.
Table 4-4 Risk assessment matrix
Consequence ratings
Negligible Minor Moderate Major Severe
Rare Very Low Very Low Low Medium Medium
Unlikely Very Low Low Low Medium High
Likelihood
Possible Low Low Medium High High
rating
Likely Low Medium Medium High Very High
Almost certain Low Medium High Very High Very High
Further information regarding the risk assessment process and the risk register for the Project is
detailed in EES Attachment III Environmental risk report.
Application of mitigation measures
An initial set of mitigation measures have been developed as part of this impact assessment. These
mitigation measures are based on compliance with legislation and standard requirements that are
typically incorporated into the delivery of infrastructure projects of similar type, scale and complexity.
As the Pipeline Works design, construction methodology and operation strategies were well
progressed at the commencement of this impact assessment, mitigating measures that were already
incorporated in the Pipeline Works design were included as initial mitigation measures.
Initial risk ratings were applied to each of the identified risk pathways assuming that these initial
mitigation measures were in place.
Where the initial risk ratings were categorised as medium or higher, additional mitigation measures
have been developed as part of this impact assessment.
The initial and additional mitigation measures have been incorporated into the Project description and
design (where relevant) by AGL and APA and included in the EMF to effectively manage the
environmental performance of the Project during construction and operation. See Chapter 25
Environmental Management Framework for further detail on how the mitigation measures are
proposed to be implemented.
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The risk and impact assessment process is iterative. Potential impacts were reassessed after the risk
assessment and after mitigation measures were refined. The level of residual risk was reassessed
using the same methodology to confirm the mitigation measure is effective in mitigating or managing
potential impacts such that the Project is able to satisfy the draft evaluation objectives set out in the
EES scoping requirements.
4.3 Impact assessment
An impact assessment was conducted to have an informed view about the likely impacts of the
Project. This provides an opportunity to identify key issues and the businesses impacted so they can
be addressed and mitigated.
Inputs into the impact assessment were derived from two major sources. These were:
• Consultation with non-agricultural businesses in the study area.
• Findings from other technical reports (see Section 4.1 for a list of relevant reports).
An overview of the consultation carried out with potentially affected businesses is set out in Section
4.5.
Impacts on agricultural businesses are discussed in EES Technical Report O: Agriculture impact
assessment.
4.4 Assumptions and limitations
Assumptions and limitations relating to this assessment are provided below:
• AECOM is not responsible for the accuracy of third-party data including information obtained
through stakeholder consultation.
• Existing businesses were identified through aerial photo analysis, desktop research and a site
inspection conducted in March 2019.
• The findings presented in this report are based on a limited scope of feedback received from
businesses and are therefore not a complete reflection of all existing businesses and the potential
impacts on those businesses that may arise from the Pipeline Works.
• This report does not assess any changes in business or property values because of the Project.
4.5 Stakeholder engagement
A program of stakeholder and community engagement has been undertaken to assist with Project
development (see Chapter 26 Stakeholder engagement).
Specific stakeholder engagement undertaken as part of this impact assessment is summarised in
Table 4-5. This consultation has occurred as part of the broader suite of engagement activities
undertaken by AGL and APA during the development of the Project and the preparation of the EES.
These engagement activities are summarised in Chapter 26 Stakeholder engagement).
Three businesses formally provided feedback through face-to-face interviews and surveys. The
survey and face to face interviews were based on the same questionnaire, and sought information
from businesses on:
• size of businesses, the characteristics of their customer bases, and the size of their customer
catchments
• mode of travel for customers, and how the projects could potentially impact staff and customer
travel patterns
• an understanding of potential impacts of the construction and operation phases of the Project,
including factors such as customer access
• potential mitigation approaches for the risks to their business operations.
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