Environment Victoria v AGL Loy Yang

IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE

COMMON LAW DIVISION

JUDICIAL REVIEW AND APPEALS LIST

S ECI 2021 03415

ENVIRONMENT VICTORIA INC	Plaintiff
v
AGL LOY YANG PTY LTD & ORS (according to the attached schedule)	Defendants

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JUDGE:	Gorton J
WHERE HELD:	Melbourne
DATE OF HEARING:	18, 19 and 20 October 2022
DATE OF JUDGMENT:	21 December 2022
CASE MAY BE CITED AS:	Environment Victoria v AGL Loy Yang
MEDIUM NEUTRAL CITATION:	[2022] VSC 814

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JUDICIAL REVIEW – Decision of Environment Protection Authority to amend defendants’ licences – Identification of the power being exercised – Treatment of an anterior decision limiting the scope of any amendments – Whether there were mandatory considerations in relation to principles of environmental protection, climate change, environmental policies and s 20B reports – Whether there was a failure to have regard to a mandatory consideration – Environment Protection Act 1970 ss 1B-1L, 20(9), 20B, 20C – Climate Change Act 2017 s 17 – Environment Protection Act 2017 – Supreme Court (General Civil Procedure) Rules 2015 ord 56.

STATUTORY INTERPRETATION – The meaning of the word ‘should’ in ss 1B-1L of the Environment Protection Act 1970 and whether it means ‘must’ or ‘may’ or neither – Comparison of consecutive statutory regimes – Application of s 20C of the Environment Protection Act 1970 where the Environment Protection Authority exercised a power of its own motion.

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APPEARANCES:	Counsel	Solicitors
For the Plaintiff	Mr R Merkel KC, Mr R Watters, Mr M Albert and Mr C Lum of counsel	Environmental Justice Australia
For the First Defendant	Mr B Lim of counsel	Herbert Smith Freehills
For the Second Defendant	Mr M Collins KC and Ms E Latif of counsel	Clayton Utz
For the Third Defendant	Mr J Gobbo KC and Ms C van Proctor of counsel	Allens
For the Fourth Defendant	Mr J Pizer KC and Ms E Smith of counsel	Victorian Government Solicitor’s Office

TABLE OF CONTENTS

A.  Background................................................................................................................................... 1

B.  The extension of time.................................................................................................................. 3

C.  The power, the process, the 5 March 2021 amendments and the reasons......................... 4

D.  Preliminary observations relating to the Authority’s failure directly to regulate the emission of greenhouse gases..................................................................................................................... 9

E.  The ‘principles of environmental protection’....................................................................... 11

E.1Were the ‘principles of environmental protection’ in ss 1B to 1L of the 1970 Act mandatory considerations?................................................................................................................... 11

E.1.1... The legislation in more detail.............................................................................. 11

E.1.2What does ‘should’ mean in ss 1B to 1L of the 1970 Act?................................. 18

E.1.3The introduction in 2001 of the principles of environmental management... 20

E.1.4Subsequent amendments and the use to which they may be put.................... 21

E.2Did the Authority have regard to the principles of environment protection?........... 24

F... The climate change considerations in the Climate Change Act 2017............................... 25

F.1... Were the climate change considerations identified in ss 17(2), (3) and (4) of the Climate Change Act 2017 mandatory considerations?.............................................................................. 25

F.2... Did the Authority have regard to the climate change considerations?..................... 27

F.2.1The decision constituted by the amended conditions imposed…