Environment groups have called for Victoria’s climate change and pollution laws to be fixed after the Victorian Environment Protection Authority’s (EPA) decision not to limit greenhouse emissions or set proper limits on toxic pollution from power stations was ruled legally valid in the Supreme Court on Wednesday, December 21, 2022.

The EPA and three Latrobe Valley energy companies appeared in the Victorian Supreme Court on Tuesday, October 18, for failing to limit pollution from coal-burning power stations.

Last year, Environment Victoria launched landmark legal action against the EPA, energy giant AGL Energy, EnergyAustralia and Alinta.

The conservation group argued the EPA failed to consider the law when it renewed the licences of the Loy Yang A, Loy Yang B and Yallourn power stations without forcing them to lower their greenhouse gas emissions.

According to Environment Victoria, the EPA has failed to require best practice management of toxic emissions, to consider key sections of the Climate Change Act, and to take proper account of the principles of environmental protection in the Environment Protection Act.

The Supreme Court case was the first test of Victoria’s key climate legislation, and is also the first to challenge the regulation of air pollution from Victoria’s coal-burning power stations.

Environment Victoria’s Policy and Advocacy manager, Bronya Lipski, said the EPA has disregarded Victoria’s climate change legislation when amending the three Latrobe Valley power station licences.

“We have nation-leading climate change legislation in Victoria that was put in place in 2017, but we believe the EPA has ignored it,” Ms Lipski said.

“The EPA is supposed to protect the public from environmental pollution, but they’ve completely failed on the biggest environmental challenge of all – climate change.

“Coal-burning power stations are the biggest single source of climate pollution in Victoria, responsible for 40 per cent of the state’s greenhouse gas emissions; the three Latrobe Valley power stations pump out about 112,000 tonnes of carbon dioxide emissions into the atmosphere each day.

“While the EPA fines Victorians for dumping litter, and rightly so, it’s been allowing these power stations to dump millions of tonnes of pollution into the air we breathe,” she said.

“Coal-fired power stations are the biggest single source of the air pollution most toxic to human health, including sulfur dioxide (SO2), oxides of nitrogen (NOx) fine particle pollution (PM2.5) and mercury.”

Ms Lipski says the amended licences are letting the Latrobe Valley power stations emit toxic pollution at levels that wouldn’t be allowed in the United States, Europe or China.

“We believe the EPA has failed to protect the health of the community and the environment, so we’re putting the matter before a judge to decide,” she said.

In the October hearing, Environment Victoria argued the EPA failed to properly consider the law in making its decision on the amended licences, including on climate and air pollution.

On Wednesday, Decemeber 21, Justice James Gorton ruled the EPA didn’t act unlawfully in making its decision.

Environment Victoria chief executive, Jono La Nauze, said the outcome was disappointing.

“This is a very disappointing decision and makes us question whether Victoria’s climate change laws are up to the task,” he said.

“If the Climate Change Act doesn’t require limits to pollution from coal power stations – the biggest single source of emissions in the state – then it’s not really doing what the community expects and needs to be fixed.

“While the Andrews government is building publicly owned renewables through a revived State Electricity Commission, these private coal companies are getting away with profiting off pollution that damages our climate and makes people sick.”

“Our laws must reflect the fact that climate change is already here and hurting communities, and if they’re failing to rein in emissions from the biggest polluters, that’s a serious flaw in their design.

“If Victoria’s Environment Protection Authority isn’t actually protecting the environment and community from the most harmful forms of pollution, then it’s failing to live up to its name.”

EJA senior specialist lawyer, Charley Brumby-Rendell, said if the ruling is upheld, the law needed to be looked at.

“This case was the first test of Victoria’s new Climate Change Act, and the first time pollution from Victorian coal-fired power stations was challenged in court,” Ms Brumby-Rendell said.

“If this decision stands, then these laws are not up to scratch and must be fixed.

“We’ll work with Environment Victoria to consider the decision carefully, and work out the next step in the fight for clean air and environmental justice.

“For years, the community has fought for justice. The EPA’s failure to properly regulate pollution and emissions from coal-fired power stations puts polluters before people and flies in the face of the action we need to protect community health.

“The communities who will be most impacted by coal pollution and climate change must be able to have a say.

“If this decision stands, then our environment laws don’t give communities a real voice – and this must urgently be fixed.”