Assessment of impact on threatened species
73The appellants' construction of s 79C(1)(b), which founds appeal grounds 1-3, is erroneous. The construction is that an effect on threatened species, populations or ecological communities, or their habitats, which is not likely to be a significant effect, is not a relevant matter for evaluation under s 79C(1)(b) of the EPA Act and cannot found a ground of refusal of consent.
74Section 79C(1)(b) has no such limitation. First, the head of consideration in s 79C(1)(b) is expressed in words of high generality. The head of consideration refers to "the likely impacts" of the development, including "environmental impacts on ... the natural ... environments". The concept of environment is itself a broad one, including "all aspects of the surroundings of humans, whether affecting any human as an individual or in his or her social groupings". The head of consideration encompasses all likely impacts of the development on the natural environment, including on threatened species, populations or ecological communities, or their habitats, and not merely those impacts that attain the threshold of being a likely significant effect. The text of s 79C(1)(b), therefore, does not provide any warrant for the appellants' narrow construction.
75Secondly, the context of s 79C(1)(b) does not support the appellants' narrow construction. The likely effects of the development on threatened species, populations or ecological communities, or their habitats, may also arise for consideration elsewhere under s 79C(1) than under s 79C(1)(b).
76Section 79C(1) requires the matters of relevance in s 79C(1) to be taken into consideration "in determining a development application". The development application to be determined is the application made in accordance with s 78A of the EPA Act and cl 50(1) and Pt 1 of Sch 1 of the EPA Regulation. This application must contain the information and be accompanied by the documents specified by those statutory provisions. The information that must be included in the development application includes "an indication as to whether the development is likely to significantly affect threatened species, populations or ecological communities, or their habitats ..." (cl 1(1)(e) of Pt 1 of Sch 1 of the EPA Regulation).
77The documents that must accompany the development application include, for designated development, an environmental impact statement; for development other than designated development, a statement of environmental effects; and for development likely to significantly affect threatened species, populations or ecological communities, or their habitats, a species impact statement (cl 2(1)(c), (e) and (f) of Pt 1 of Sch 1 of the EPA Regulation). These documents require consideration, in varying degrees of specificity and in varying forms, of the environmental impacts of the development and the steps to be taken to protect the environment or lessen the expected harm to the environment. The environment includes threatened species, populations or ecological communities, or their habitats, and the environmental impacts of the development include the impacts of the development on threatened species, populations or ecological communities, or their habitats.
78As a consequence, determination of the development application necessarily involves consideration of information and documents concerning the effects of the development on threatened species, populations or ecological communities, or their habitats, irrespective of whether or not those effects attain the threshold of being likely significant effects.
79The other generic heads of consideration in s 79C(1) may also include the effects of the development on threatened species, populations or ecological communities, or their habitats. Under s 79C(1)(a), environmental planning instruments may require consideration of the effects on native flora and fauna that comprise threatened species, populations or ecological communities or their habitats. A number of State environmental planning policies concern native flora and fauna and their habitats. Examples are: State Environmental Planning Policy 14 - Coastal Wetlands; State Environmental Planning Policy 19 - Bushland in Urban Areas; State Environmental Planning Policy 26 - Littoral Rainforests; State Environmental Planning Policy 44 - Koala Habitat Protection; and State Environmental Planning Policy 71 - Coastal Protection. These policies aim to protect and preserve the particular natural environments concerned and their native flora and fauna, which may include threatened species, populations or ecological communities, or their habitats. The policies control the environmental impacts of development in these natural environments, including by requiring consideration of the environmental impacts in determining a development application or in granting concurrence.
80Local environmental plans may also prescribe matters to be considered in determining a development application, including the effects of the development on specified natural environments and the native flora and fauna and their habitats in these environments. The local environmental plan in this case, Gosford Local Environmental Plan 22, is an illustration. It identified ecologically significant land, including designating management zones for the protection of threatened species, riparian zones, and habitats and habitat links. The impacts of the development on these threatened species, riparian zones, habitats and habitat links are required to be considered in determining a development application for the development.
81Accordingly, a consent authority in determining a development application will be required to take into consideration the provisions of an environmental planning instrument that may require some kind of consideration of the effects of the development on threatened species, populations or ecological communities, or their habitats, irrespective of whether the effects attain the threshold of being likely significant effects.
82Under s 79C(1)(c), the suitability of the site for the development could include matters concerning threatened species, populations, ecological communities, or their habitats. The presence on the site of threatened species, populations or ecological communities, or their habitats, might make the site unsuitable. The concept of habitat is a broad one. It is defined in s 4 of the EPA Act to have the same meaning as in the TSC Act, namely, "an area or areas occupied, or periodically or occasionally occupied, by a species, population or ecological community and includes a biotic or abiotic component". The biotic components include the native flora and fauna. The abiotic components include the climatic, physiographic and edaphic features of the environment of the area. The particular abiotic and biotic components of the habitat may make the site proposed for development unsuitable, such as being subject to flooding, tidal inundation, subsidence, slip or bushfire. Consideration of the suitability of the site for the development, therefore, might involve consideration of the effects of the development on threatened species, populations or ecological communities, or their habitats, on the site.
83Under s 79C(1)(d), the submissions made in accordance with the EPA Act or the EPA Regulation may address the effects of the development on threatened species, populations or ecological communities, or their habitats. Submissions can be made in respect of development that is designated development or advertised development: see s 79(5) and s 79A(2) of the EPA Act and cl 91(2) of the EPA Regulation. The appellants' development in this case was designated development. A person may make a written submission with respect to the development application for designated development. Where the submission is by way of objection, it must set out the grounds of the objection. These grounds could include the effects of the development on any threatened species, population or ecological community, or its habitat, irrespective of whether those effects attain the threshold of being likely significant effects. The consent authority is bound to take all submissions received into consideration in determining the development application.
84Finally, under s 79C(1)(e), the public interest must be considered. The concept of the public interest is broad. It includes, in appropriate cases, the principles of ecologically sustainable development: Telstra Corporation Ltd v Hornsby Shire Council [2006] NSWLEC 133; (2006) 67 NSWLR 256; (2006) 146 LGERA 10 at [121]-[124] and Minister for Planning v Walker [2008] NSWCA 224; (2008) 161 LGERA 423 at [42]-[43]. Ecologically sustainable development is defined in s 4 of the EPA Act as having the same meaning as it has in s 6(2) of the Protection of the Environment Administration Act 1991. In that subsection, the principles of ecologically sustainable development include the principle of "the conservation of biological diversity and ecological integrity - namely, that conservation of biological diversity and ecological integrity should be a fundamental consideration" (s 6(2)(c) of the Protection of the Environment Administration Act 1991). Biological diversity means the diversity of life and is made up of the three components of genetic diversity (the variety of genes or units of heredity in any population), species diversity (the variety of species), and ecological diversity (the variety of communities or ecosystems) (see s 4 of the TSC Act). Hence, consideration of the public interest might involve, in an appropriate case, taking into account the principle that the conservation of biological diversity and ecological integrity should be a fundamental consideration. Threatened species, populations or ecological communities, and their habitats, are but some of the components of biological diversity. Consideration of the effects of the development on these components are not restricted to where there are significant effects - all effects need to be considered.
85The context in which s 79C(1)(b) occurs, therefore, does not provide any support for the appellants' construction that the effects of a development on threatened species, populations or ecological communities, or their habitats, can only be considered under the head of consideration of s 79C(1)(b), or that only likely significant effects on threatened species, populations or ecological communities, or their habitats, can be considered, and not effects less than likely significant effects.
86Thirdly, the reference to s 79C in the chapeau of s 5A(1) of the EPA Act does not demand construing s 79C(1)(b) in the manner contended for by the appellants. At the outset, s 5A in its terms states that it only applies "in deciding whether there is likely to be a significant effect on threatened species, populations or ecological communities, or their habitats". The EPA Act devised and uses this formulation of "whether there is likely to be a significant effect on threatened species, populations or ecological communities, or their habitats" for three purposes: first, to decide whether the particular form of environmental assessment of a SIS needs to be prepared; second, as a head of consideration; and third, to decide whether there needs to be consultation with or the concurrence of a public authority.
87For the first purpose, the statutory formulation is used to decide whether a development application for development needs to be accompanied by the particular form of environmental assessment of a SIS: see s 78A(8)(b) of the EPA Act and cl 50(1)(a) and cl 2(1)(f) of Pt 1 of Sch 1 of the EPA Regulation. The requirement for the particular form of environmental assessment of a SIS was introduced by the TSC Act (the concept of a particular form of environmental assessment for threatened species having first been introduced in the TSC's predecessor legislation, the Endangered Fauna (Interim Protection) Act 1991, ('EF (IP) Act') being a fauna impact statement for endangered fauna). There needed to be a test to decide when a SIS was required. The threshold test of whether the development was likely to significantly affect the threatened species, population or ecological community, or its habitat, was employed (following the similar test in the EF (IP) Act of requiring a fauna impact statement for likely significant effects on endangered species of fauna, which in turn followed the test in s 112 of the EPA Act for requiring an environmental impact statement for likely significant effects on the environment).
88The statutory formulation is used for a similar purpose to decide whether a SIS, or an EIS that includes a SIS, needs to be prepared, furnished to, and examined and considered by, a determining authority before carrying out, or granting an approval in relation to, an activity under s 112 of the EPA Act: see s 112(1) and (1B) of the EPA Act.
89The statutory formulation is also employed to decide whether an EIS in respect of a designated fishing activity under Div 5 of Pt 5 of the EPA Act needs to include a SIS: it will if the designated fishing activity is to be carried out in critical habitat or "is likely to significantly affect threatened species, populations or ecological communities, or their habitats": s 115N(2) of the EPA Act.
90For the second purpose, the statutory formulation is employed to add a head of consideration for a determining authority in its consideration of the effects of an activity, under s 111 of the EPA Act: s 111(4)(b). The statutory formulation also is used as one of the types of information that a development application must contain: cl 50(1)(a) and cl 1(1)(e) of Pt 1 of Sch 1 of the EPA Regulation. The consent authority must consider the development application (including the information it contains and the accompanying documents) in determining the development application: s 79C(1). The requirement to consider whether the development is likely to significantly affect threatened species, populations or ecological communities, or their habitats, was previously found in the former s 90 of the EPA Act.
91For the third purpose, the statutory formulation is employed to decide whether there needs to be consultation with and the concurrence of the Director-General of DECCW. Section 79B(3) provides that development consent cannot be granted for development that, inter alia, "is likely to significantly affect a threatened species, population or ecological community, or its habitat", without the concurrence of the Director-General. Similarly, s 115N(4) of the EPA Act employs the statutory formulation to decide whether the Fisheries Minister, before making a determination with respect to a designated fishing activity, needs to consult with the Minister administering the TSC Act.
92Section 5A provides matters that must be taken into account in deciding whether the statutory formulation is satisfied for these purposes. Although it is mandatory to take these matters in s 5A into account, they are not exhaustive of the matters that may be considered: there may be facts and circumstances relevant to the inquiry of whether the statutory formulation is satisfied which are not specifically contained in any of the matters in s 5A, and in particular in any of the factors in the seven part test in s 5A(2): Plumb v Penrith City Council [2002] NSWLEC 223 at [37]; BT Goldsmith Planning Services Pty Ltd v Blacktown City Council [2005] NSWLEC 210 at [12]; Corowa v Geographe Point Pty Ltd [2007] NSWLEC 121; (2007) 154 LGERA 117 at [52]; Newcastle and Hunter Valley Speleological Society Inc v Upper Hunter Shire Council and Stoneco Pty Ltd [2010] NSWLEC 48 at [85].
93The factors in s 5A(2) and any assessment guidelines are intended to assist the decision-maker to decide whether the level or degree of effects on threatened species, populations or ecological communities, or their habitats, attain the threshold of being significant. The factors and assessment guidelines of relevance to the development or activity concerned must all be considered. A positive answer to any one or more of the seven factors in s 5A(2) does not necessarily mandate an affirmative answer as to whether there is likely to be a significant effect on a threatened species, population or ecological community, or its habitat, but equally does not preclude a negative answer to that question: Carstens v Pittwater Council [1999] NSWLEC 249; (1999) 111 LGERA 1 at [61]; Plumb v Penrith City Council at [36]; Nambucca Valley Conservation Association v Nambucca Shire Council [2010] NSWLEC 38 at [83]; Newcastle and Hunter Valley Speleological Society Inc v Upper Hunter Shire Council and Stoneco Pty Ltd at [86].
94Section 5A does not apply and the factors and assessment guidelines referred to in s 5A provide no assistance for purposes other than to decide whether the effects of the development attain the threshold of being "significant". Hence, s 5A does not apply to decide whether there is any effect at all on threatened species, populations or ecological communities, or their habitats.
95With this explanation of the purpose and application of s 5A of the EPA Act, the reference to s 79C in the chapeau of s 5A(1) is entirely explicable. Section 79C and the other sections to which particular reference is made in s 5A(1) all employ, directly or indirectly, the statutory formulation of whether there is likely to be a significant effect on threatened species, populations or ecological communities, or their habitats. For s 78A, it is for the purpose of deciding whether the development application needs to be accompanied by a SIS; for s 79B, it is for the purpose of deciding whether there needs to be consultation with and the concurrence of the Director-General of DECCW; for s 79C, it is for the purpose of deciding the information required to be contained in, and the documents required to accompany, the development application which is to be determined; for s 111, it is a matter to be considered; and for s 112, it is for the purpose of deciding whether there needs to be a SIS, or an EIS that includes a SIS.
96In deciding whether the statutory formulation is satisfied for each of these purposes, the decision-maker must take into account the factors and the assessment guidelines in s 5A. It is in this sense that s 5A(1) uses the words "in the administration of". The factors and assessment guidelines in s 5A are used in the administration of the sections to decide whether the statutory formulation is satisfied for the various purposes of the sections, such as whether a SIS is needed, or a matter needs to be considered, or whether consultation or concurrence is required.
97This construction of s 5A and s 79C is supported by the legislative history.
98At its commencement, the EPA Act did not deal particularly with threatened species, populations or ecological communities, or their habitats, or require a particular form of environmental assessment, such as a SIS, to assess the likely effects of a development or activity on threatened species, populations or ecological communities, or their habitats. The relevant matters to be considered in determining a development application were listed in s 90. They included s 90(1)(b) "the impact of that development (whether or not the subject of an environmental impact statement) and, where harm to the environment is likely to be caused, any means that may be employed to protect the environment or to mitigate that harm". It also included s 90(1)(c) "the effect of that development on the landscape or scenic quality of the locality" and s 90(1)(m) "whether adequate provision has been made for the landscaping of the land to which that development application relates and whether any trees or other vegetation on the land should be preserved".
99These generic heads of consideration embraced the impact of the development on the native flora and fauna, and their habitats, on the land.
100In 1991, the EF (IP) Act introduced for the first time in NSW requirements for an environmental assessment of development that was likely to have a significant effect on the environment of an endangered species. The EF (IP) Act amended s 90 of the EPA Act to add an additional head of consideration "(c2) whether there is likely to be a significant effect on the environment of endangered fauna". The addition of this head of consideration did not narrow the scope of the other heads of consideration, including s 90(1)(b). They continued to require consideration of all impacts of the development on the native flora and fauna, and their habitats, on the land. However, the added head of consideration required a particular focus of consideration, namely, whether the likely impacts of the development would include an effect on any endangered fauna that met the threshold of being a significant effect on the environment of the endangered fauna.
101To decide whether the effect on endangered fauna reached that threshold, the EF (IP) Act introduced s 4A. That new section provided:
For the purpose of sections 77, 90 and 112, in deciding whether there is likely to be a significant effect on the environment of endangered fauna, the following factors must be taken into account ... .
The section then listed seven factors (which were different to the seven factors that are now in s 5A of the current EPA Act).
102The three sections referred to in the chapeau of s 4A all contained the statutory formulation of whether there was likely to be a significant effect on the environment of endangered fauna. Section 77 (which was the predecessor to the current s 78A of the EPA Act) employed the statutory formulation to require a development application to be accompanied by the special form of environmental assessment of a fauna impact statement "where the application is in respect of development which is likely to significantly affect the environment of endangered fauna" (s 77(3)(d1)). Section 90 employed the statutory formulation to add a new head of consideration in s 90(1)(c2). Section 112 (which is still in the current EPA Act) employed the statutory formulation to require a determining authority not to carry out an activity or grant an approval in relation to an activity, "being an activity which is likely to significantly affect the environment of any endangered fauna," unless a fauna impact statement ('FIS') or an EIS which includes a FIS had been prepared (s 112(1B) and (1C) of the EPA Act).
103Section 4A, therefore, referred to these three sections because they employed the statutory formulation and to require the factors in s 4A to be taken into account in deciding whether the statutory formulation was satisfied for the different purposes of these sections.
104The EF (IP) Act was an interim statute. It was replaced in 1995 by the TSC Act. The TSC Act applied not only to endangered fauna (as had the EF (IP) Act) but also to endangered native flora, as well as to endangered populations of native flora and fauna and endangered ecological communities. However, the TSC Act continued key procedural concepts of the EF (IP) Act. In s 90 of the EPA Act, the head of consideration in (c2) that had been added by the EF (IP) Act was replaced with four heads of consideration, including the new statutory formulation of "whether there is likely to be a significant effect on threatened species, populations or ecological communities, or their habitats":
(c2) the effect of that development on critical habitat,
(c3) whether there is likely to be a significant effect on threatened species, populations or ecological communities, or their habitats,
(c4) any relevant recovery plan or threat abatement plan,
(c5) the effect of that development on any other protected fauna or protected native plants within the meaning of the National Parks and Wildlife Act 1974.
105At this time, no change was made to the other heads of consideration in s 90. Hence, the other heads of consideration, including s 90(1)(b), continued to require consideration of the impacts of a development on the environment, including on the native flora and fauna, and their habitats, on the land. Their breadth of coverage was not reduced by the inclusion of the particular considerations of (c2) to (c5).
106The new statutory formulation was also added as a head of consideration to s 111 of the EPA Act. Section 112(1B)-(1D) were replaced by a new subsection (1B) that used the statutory formulation to decide whether a SIS, or EIS that includes a SIS, was required.
107The former s 77(3)(d1) was replaced with a new provision employing the new statutory formulation to decide whether a development application was required to be accompanied by a SIS.
108With these changes, the former s 4A was omitted and replaced by the new s 5A. Section 5A provided:
For the purposes of this Act and, in particular, in the administration of s 77, 90 and 112, the following factors must be taken into account in deciding whether there is likely to be a significant effect on threatened species, populations or ecological communities, or their habitats ... .
There were then listed eight factors (which were different to the seven factors listed in the current s 5A of the EPA Act).
109The three sections referred to in s 5A all employed the new statutory formulation. The factors in s 5A were required to be taken into account in deciding whether the statutory formulation was satisfied for the different purposes of these sections.
110The next relevant legislative change was in 1997 when the EPA Act was amended to, amongst other things, simplify the matters to be considered in determining a development application. The numerous and specific heads of consideration in s 90 were replaced with the fewer and general heads of consideration in s 79C. Section 79C(1)(b) was cast in terms sufficiently wide as to embrace not only the matters previously falling within the former s 90(1)(b), but also within many of the other heads of consideration in s 90(1) that had dealt with the effects of development on the environment, both the natural and the built, such as s 90(1)(c) (effect on landscape or scenic quality), (d) (social effect and economic effect), (e) (effect of the building in the locality) and (m) (effect on trees and vegetation), as well as the matters concerning threatened species, populations or ecological communities, or their habitats, and protected fauna and native plants, previously falling within the former s 90(1)(c2)-(c5).
111However, the new s 79C(1)(b) did not directly include an express requirement that the consent authority consider whether, if the development was likely to have an effect on threatened species, populations or ecological communities, or their habitats, that effect was likely to be significant. The first s 90(1)(c2) had directly required consideration of the then statutory formulation for endangered fauna and the subsequent s 90(1)(c3) had directly required consideration of the next statutory formulation for threatened species, populations or ecological communities, or their habitats. But s 79C(1) omitted such a direct requirement to consider the statutory formulation. Instead, the requirement to consider the statutory formulation was imposed indirectly - by the requirement to determine the development application that must include information on whether the development was likely to significantly affect threatened species, populations or ecological communities, or their habitats, and be accompanied by a SIS if the development was likely to significantly affect threatened species, populations or ecological communities, or their habitats.
112Although the requirement to decide whether the statutory formulation was satisfied was changed from being direct (under s 90) to indirect (under s 79C), the consent authority, in determining the development application, would still need to address the statutory formulation in considering the information contained in and the documents accompanying the development application. Hence, there still was utility in including reference to s 79C, instead of s 90, in the chapeau of s 5A(1).
113The substitution of the reference to s 79C instead of s 90 in the chapeau of s 5A(1) could not, and did not, have the effect of narrowing the ambit of s 79C(1)(b). If the legislature had intended to narrow the ambit of s 79C(1)(b), by including reference to s 79C in s 5A, it would have done so expressly by changing the clear and general words of s 79C(1)(b) to specifically exclude consideration of an effect on threatened species, populations or ecological communities, or their habitats, that was not likely to be a significant effect. The mere inclusion of the reference to s 79C in s 5A is not sufficient to achieve such an exclusion.
114For these reasons, ground 1 should be rejected. An effect on threatened species, populations or ecological communities, or their habitats, that is not likely to be a significant effect, is not an irrelevant matter for evaluation under s 79C(1).
115Ground 2 is also incorrect. Section 5A only applies and only provides assistance in deciding whether there is likely to be a significant effect on threatened species, populations or ecological communities, or their habitats, for the various purposes of the EPA Act, such as whether a SIS is needed, a matter needs to be considered, or whether consultation or concurrence is required. Section 5A does not apply and does not provide assistance in deciding whether there is any effect on threatened species, populations or ecological communities, or their habitats, or in evaluating the effect of a development on threatened species, populations or ecological communities, or their habitats, other than to decide whether the effect is a significant effect for these purposes of the Act.
116Ground 3 fails with the rejection of the other two grounds. In circumstances where it had been held that the appellants' development would not be likely to have a significant effect on the threatened species of the Eastern Pygmy Possum or its habitat, s 5A did not apply to the evaluation of the effects of the development on the Eastern Pygmy Possum or its habitat. There was no need for evidence assessing the effect on the Eastern Pygmy Possum or its habitat to be provided in accordance with the requirements of s 5A.