Environment Effects Statement · 2020. 8. 11. · business impact assessments (BIA) such as the...

Business impact assessmentEES Technical Report N

Environment Effects StatementJuly 2020

Prepared for – AGL Wholesale Gas Limited and APA Transmission Pty Limited – 60592634

Gas Import Jetty and Pipeline Project EES Technical Report N

Gas Import Jetty and Pipeline Project

AGL and APA

11-Jun-2020

Business impact assessment

AECOM Gas Import Jetty and Pipeline Project




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




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




i

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.




ii

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.




iii

Mitigation measures

The following mitigation measures are recommended for the Project:

MM ID Recommended mitigation measures Works Stage

MM-

SE01

Stakeholder Engagement Management Strategy A Stakeholder Engagement Management Strategy should be prepared to facilitate ongoing consultation between the proponent and the community (including relevant Councils, government authorities, adjoining affected landowners and 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.

Gas Import

Jetty

Works and

Pipeline

Works

Design,

Construction

and

Operation

MM-BU01

Pipeline alignment change to Stony Point rail corridor The pipeline alignment and construction methodology in 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.

Pipeline

Works

Construction

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




iv

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.




v

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

Areas

A spatial unit which represents the whole geographical area of responsibility of an

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)

30 dB(A)

40 dB(A)

50 dB(A)

70 dB(A)

80 dB(A)

90 dB(A)

100 dB(A)

110 dB(A)

115 dB(A)

120 dB(A)

Threshold of human hearing

A quiet country park

Whisper in a library

Open office space

Inside a car on a freeway

Outboard motor

Heavy truck pass-by

Jack hammer / subway train

Rock Concert

Limit of sound permitted in industry

747 take off at 250 metres




1

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.




3

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.




5

Figure 1 Project Area overview




6

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.




7

Figure 3 Study area SA2s

Figure 2 Study area LGAs




8

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.

Figure 4 Study area SA2s




9

Figure 5 Areas of interest (overview)




10

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

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.

Section 7.0 (Impact assessment)

Priorities for

characterising the

existing environment

• Identify existing and reasonably

foreseeable land uses and businesses

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.

Section 5.0 (Existing conditions)

Design and mitigation

measures

• Identify options for mitigating impacts from

the Project construction or operation on

adjacent businesses and community

facilities including open space.

Section 6.0 (Risk assessment)


Section 8.0 (Mitigation measures)

Assessment of likely

effects

• Identify implications for current land uses

and immediately foreseeable changes in

land use.





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Aspect Scoping requirement Relevant section

Approach to manage

performance

• Measures to manage other potentially

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).

Section 8.0 (Mitigation measures)

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 Effects Act 1978 (Environment Effects Act)

The Environment Effects Act provides a regime where projects with potentially significant environmental impacts may require the preparation of an EES for assessment by the Minister for Planning. An EES may be required for declared ’public works’ or works determined by the Minister for Planning to require an EES following referral. Where an EES is required, the Minister for Planning will issue scoping requirements to guide preparation of the EES. Once the EES is prepared it is placed on exhibition for public comment (typically for 20 to 30 days). The Minister for Planning may appoint an inquiry to assess the impacts of the project, taking into account the EES studies and any public submissions. This can involve a formal hearing. The Minister for Planning subsequently provides an 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.

On 8 October 2018, the Victorian Minister for Planning determined that an EES was required for the Gas Import Jetty Works and Pipeline Works (as a single joint project). In February 2019, the Minister for Planning issued the scoping requirements for the Project. The EES has been prepared in accordance with these scoping requirements, which require the assessment of a range of specific environmental effects. The EES would be placed on public exhibition and an inquiry would be appointed to consider the environmental effects of the projects. At the conclusion of the EES assessment process the Minister for Planning’s Assessment Report would be provided to the relevant statutory decision-makers to inform their decisions whether to grant approvals for the projects.

Gas Import Jetty Works and Pipeline Works




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Planning and Environment Act 1987 (Planning and Environment Act)

The Planning and Environment Act establishes a framework for planning the use, development and protection of land in Victoria. The Planning and Environment Act provides for the preparation of planning schemes in each municipality consistent with the Victoria Planning Provisions (VPPs) and procedures by which planning schemes may be amended and planning permits obtained to govern land use and development.

The Planning and Environment Act is relevant due to the potential impacts on landowners, where the land is used for business purposes. More specifically, the pipeline construction has the potential to disrupt the way in which owners utilise and develop their land for business purposes. Where applicable, these matters are addressed through consultation with landowners and 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 Integration Act 2010 (Transport Integration Act)

The Transport Integration Act provides a legislative framework for transport in Victoria. The Act seeks to integrate land use and transport planning and decision-making by applying the framework to land use agencies whose decisions can significantly impact on transport. The Transport Integration Act requires agencies, including the Department of Transport and Planning Authorities, to consider the potential impact of land use planning proposals on transport. The vision statement states that Parliament recognises the aspirations of Victorians for an integrated and sustainable transport system that contributes to an inclusive, prosperous and environmentally responsible State.

Business owners and employees can reasonably expect to be considered and consulted during the EES on traffic implications of the Project. Interruption to movement during construction needs to be considered. Potential impacts associated with pipeline construction works have been significantly reduced by utilising the Stony Point rail corridor for the pipeline alignment through Hastings, combined with the use of horizontal directional drilling (HDD) as the construction methodology. Interruption to movements during operation of the Project is associated with the movement of nitrogen trucks to and from the Crib Point Receiving Facility.





14


Road Management Act 2004 (Road Management Act)

The Road Management Act provides a statutory framework for the management of Victorian road networks and facilitates the coordination of road reserves for roadways, pathways, infrastructure and similar purposes. While the Minister for Roads is responsible for administering the Act, VicRoads is responsible for 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.

The Road Management Act provides a statutory framework for the management of the Victorian road network. Consent may be required under the Act for works on, in or under any road. A Traffic Management Plan (TMP) would be prepared to mitigate any impacts to business during construction of the Project.


Pipelines Act 2005 (Pipelines Act)

The Pipelines Act is the primary Act governing the construction and operation of pipelines in Victoria. The Pipelines Act covers ‘high transmission’ pipelines for the conveyance of gas, oil and other substances. DELWP and Energy Safe Victoria are responsible for administering the Act and the Pipelines Regulations 2017.

The Pipelines Act intends that responsible authorities consider several relevant 'Principles of sustainable development', including that long and short-term economic, environmental, social and equity considerations should be effectively integrated into decision-making. 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.

Pipeline Works

Local

Policy / guidelines / standards




15


Planning Policy Frameworks (PPF)

The Planning Policy Framework (PPF) encourages and facilitates sustainable land uses related to business and industrial land uses. The key PPF clauses of relevance to business are: • Clause 11 which states that planning should respond to the needs of existing and future communities through provision of zones and serviced land for, amongst 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.

To ensure integrated decision-making, authorities must take into account the general principles and specific policies contained in the PPF. The Project would deliver improved access and efficiency associated with resource access. However, access to jobs and businesses and business operations may be temporarily interrupted during construction.


Mornington Peninsula Planning Scheme

The aim of the Mornington Peninsula Planning Scheme is: • to provide a clear and consistent framework within which decisions about the use and development of land can be made • to express state, regional, local and community expectations for areas and land uses • to provide for the implementation of state, regional and local policies affecting land use and development.

Relevant objectives under the Mornington Peninsula Planning Scheme are: • to encourage the concentration of major retail, residential, commercial, administrative, entertainment and cultural developments into activity centres that are highly accessible to the community. Access to businesses will be considered in the EES Technical Report N: Business impact assessment.

Gas Import Jetty Works.

Mornington Peninsula Localised Planning Statement (July 2014)

Alongside the Mornington Peninsula Planning Scheme, the Localised Planning Statement sets out the policies and provisions that control land use and development in the Peninsula.

Regulatory authorities will have regard for the Localised Planning Statement in assessing the potential impacts of the Project.





16

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 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.




17

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.’




18

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

Likelihood

rating

Rare Very Low Very Low Low Medium Medium

Unlikely Very Low Low Low Medium High

Possible Low Low Medium High High

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.




19

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.




20

Businesses were also consulted by APA on 22 May 2019 about the selection of the proposed alignment for the pipeline and how they may be affected.

Some key issues raised in these consultations by the businesses were:

• How the pipeline construction works may impact access and road traffic within the vicinity of their businesses

• Parking availability

• Amenity impacts.

These issues were used to inform the impact assessment section in this report.

Table 4-5 Stakeholder engagement

Activity When Key issues discussed Engagement outcome

Community consultation sessions

Five sessions held in February-March 2019

Pipeline alignment options. Possible impacts.

Potential community impacts were highlighted.

Doorknocking for businesses in Hastings

6 March 2019 Project group representatives went individually to businesses to communicate the 14 March business consultation forums

Engagement with local businesses about the consultation process. Written details of the forums were left with businesses.

22 May 2019 Over 100 businesses were door-knocked regarding the Hastings rail alignment update

Engagement with local businesses about the updated rail alignment. Written details of the updated alignment were left with businesses.

Business consultation forums

14 March 2019 (two sessions held)

Pipeline alignment options. Possible impacts.

Potential impacts were highlighted by attending businesses.

Survey - hard copy and online

12 March 2019 to 19 March 2019

Survey gathering information about businesses and possible impacts.

Identified business characteristics and potential impacts.

Data used in the analysis of existing conditions presented in this assessment was used to give direction towards parties necessary for consultation and to understand impacts during the construction and operational phases.

4.6 Linkage to other technical reports

The business impact assessment should be read in conjunction with other relevant technical reports forming part of the EES. Other impacts relating to traffic and transport and air quality have been considered in detail in other technical reports.

This report considered:

• EES Technical Report J: Transport impact assessment



• EES Technical Report O: Agriculture impact assessment




21

• EES Technical Report L: Land use impact assessment

• EES Technical Report M: Social impact assessment.

Where relevant to business, other technical reports are considered and referenced.




22

5.0 Existing conditions

As discussed in Section 1.3.1, several different study areas have been used to explore the existing conditions in this business impact assessment report.

The broader area characteristics section below uses data at the LGA level, while the Hastings characteristics uses a combination of SA2, SA1 and commercial land use parcel data.

The Port of Hastings is a significant business for the local area providing nine fulltime equivalent jobs in

20181.

Impacts on the Port of Hastings have not been considered, however, as the construction and operation of

the pipeline are highly unlikely to have any impact on its operations. Most businesses relevant to this impact assessment are in the three interest areas in Hastings with nearly all affected businesses outside Hastings being agriculture land or agribusinesses. An assessment of potential impacts on agricultural businesses is included in EES Technical Report O: Agriculture impact assessment.

5.1 Study area characteristics

5.1.1 Local government area characteristics

The pipeline alignment is in three LGAs:

• Mornington Peninsula Shire

• City of Casey

• Cardinia Shire.

The following sections describe the characteristics of each of these LGAs relevant to the business impact assessment.

Mornington Peninsula Shire

The Mornington Peninsula Shire has over 190 kilometres of coastal boundaries, bordered by Port

Phillip Bay on its west coast, and Western Port Bay on its east coast. It is a mixture of urban areas,

resort towns, tourist developments and rural land. Mornington Peninsula Shire is one of the major

holiday destinations for Melbourne residents, and its population includes a high proportion of retirees.

It includes the industrial and port area of Hastings, as well as natural attractions like Cape Schanck

and Point Nepean National Park. The main industries include iron and steel manufacturing and

building/construction2.

The Shire is served by three Major Activity Centres: Mornington, Rosebud, and Hastings. Activity

centres are a particularly important part of the economy, both in terms of their direct contribution to

employment and activity, and through indirect influences on a wide range of economic and social

outcomes. The Hastings activity centre extends east-west along High Street as the primary ‘spine’,

and with Kmart/Woolworths located as the major retail anchors on the southern side and a Coles

supermarket in the north. ALDI and Ritchies IGA supermarkets are also in the centre and highlight the

strong role of Hastings in meeting the day-to-day retail needs of residents in this part of the Shire.

1 The state of the public sector in Victoria, 2017-2018, Victorian Public Sector Commission 2 Mornington Peninsula Shire, Victoria State Government, 2019




23

City of Casey

The City of Casey is the third-fastest growing LGA in Australia behind Gold Coast and Brisbane City

Councils. It has five distinct geographic regions stretching from the foothills of the Dandenong Ranges

to the coastal villages of Western Port Bay. Urban development is concentrated in the northern part of

the municipality. The main industries include building construction, agriculture, and building structure

services3. In the City of Casey there are 16 growth areas. The four closest to the proposed pipeline

are:

• Clyde South

• Devon Meadows

• Botanic Ridge

• Casey Fields South.

Cardinia Shire

Cardinia Shire is situated on the south-eastern fringe of the Melbourne metropolitan area and contains significant rural and horticultural land. The Shire has a young and rapidly growing population. The main industries include food manufacturing, agriculture, meat and meat product manufacturing, motor vehicle and parts manufacturing4.

Officer-Pakenham is considered a State Significant Industrial Precinct (SSIP). It is classified as an emerging location (due to its high forecast growth) and currently has 240 workplaces. This number is expected to increase over time. There is also a Hastings SSIP, however, most of the land in Hastings is occupied by a range of non-industrial uses. These pieces of land will be converted to industrial purposes once there is sufficient industry demand.5

Urban growth

Approximately two thirds of the 57 kilometre pipeline would run through areas outside the Greater Melbourne Urban Growth Boundary as shown in Figure 6. The majority of this land is classified as ‘Green Wedge’, which is areas containing a mix of agriculture and other low-density activities. As these green wedges do not support urban development, any perceived impact the gas pipeline may have on future urban growth opportunities would not be a valid consideration.

3 Casey City, Victoria State Government, 2019 4 Cardinia Shire, Victoria State Government, 2019 5 Urban Development Program State Significant Industrial Precincts 2016, Victoria State Government, 2016




24

Figure 6 Urban growth boundary

To assess population growth, data from the Victoria in Future Report (2019) was used. The proposed pipeline alignment crosses six Victoria in Future Small Areas (VIFSA – these are equivalent to SA2s), which comprise the study area. These include the Emerald-Garfield District, Officer-Pakenham District, Cranbourne District, Koo Wee Rup District, Pearcedale-Tooradin District and Hastings-Somerville District. These VIFSAs are in the Mornington Peninsula, Casey and Cardinia LGAs.

The Cranbourne District has been the fastest growing with the average annual population growth rate from 2016 to 2018 being 12.37 per cent according to Victoria in Future (VIF). This trend is projected to continue increasing, with the average annual growth rate expected to be 17 per cent from 2021 to 2036. This trend holds for the other districts as well with average annual growth rate being 6.02 per cent from 2016 to 2018 and increasing to 10.99 per cent from 20219 to 2036.6

5.1.2 Hastings characteristics

The 2016 Census revealed that the suburb of Hastings (Hastings-Somers SA2) has a population of 9,609 with 4,352 private dwellings. From 2011 to 2016 the population grew by 927 residents indicating a small growth trend, with the median age being 41 years old which is slightly higher than the rest of Victoria (37 years).

The largest number of workers in the area is employed in the Supermarket/Grocery Store industry (5.3 percent) with the next largest employer being Defence (3.6 percent) and Aged Care and Residential Service (3.6 percent). The most common occupations in Hastings include Technicians and Trades Workers at 21.5 percent, Community and Personal Service Workers at 13.7 percent and Labourers at 13.3 percent.

6 Victoria in Future data tables, VIF2019 LGAs VIFSAs ERP 2011-2031, Victoria State Government, 2018




25

Of the 7,774 people working in the Hastings-Somers SA2, almost half live locally. Figure 7 shows where the remaining workers commute from, with the majority living in the adjacent Somerville SA2 or locally on the peninsula.

Source: ABS Census 2016

Figure 7 Summary of persons commuting to the Hastings - Somers SA2

Figure 8 illustrate the most common methods of transport for journeys to work for those who work in the Hastings-Somers SA2. The most common mode is private vehicle (69 percent), while active transport (walking or cycling) comprises 12 percent of journeys to work. Hastings is serviced by a bus route which runs along Frankston-Flinders Road and High Street with buses running infrequently and a train station with services running hourly. The limited public transportation availability encourages more private vehicle usage and suggests that the road network (and parking) is extremely important around Hastings for workers travelling to and from their place of employment. This illustrates the potential for negative impacts associated with access restrictions on the road network.




26

Source: ABS Census 2016

Figure 8 Travel mode used by persons commuting to the Hastings - Somers SA2

Currently, there is on-street parking along a large proportion of Frankston-Flinders Road with the majority of individual businesses also having private car spaces for customers and staff. Trader consultation revealed that the majority of customers and employees used private vehicles to access their businesses.

The consultation also found that the customer base was mainly from the local area. The general sentiment was that many of the trips to stores were premeditated, and a smaller portion of their trade is from passers-by.

5.2 Existing businesses within the study area

This section describes the existing businesses within the study area around the Gas Import Jetty Works and the Pipeline Works.


5.2.1.1 Victorian Maritime Centre

The Victorian Maritime Centre is the only business situated nearby to the Gas Import Jetty Works and is opposite the landside area of the Crib Point Jetty, on The Esplanade at Crib Point. The Victorian Maritime Centre is a tourist attraction for the region. It is open to the public on weekends between 10am and 3pm.

5.2.1.2 Flinders Aquaculture Fisheries Reserve

The Flinders Aquaculture Fisheries Reserve (FAFR) is located about 15 kilometres to the south west of the Crib Point Jetty. All offshore marine aquaculture within Western Port occurs within the FAFR. The FAFR is about 0.3 kilometres offshore (east) from the township of Flinders and is about 440 hectares in size. The FAFR is serviced by the Flinders Jetty (about one kilometre to the south west of the FAFR), which has mooring and vehicle access.

Longline culture of blue mussels is the predominant marine aquaculture activity undertaken in the FAFR. Abalone cage aquaculture is also currently undertaken. Other current and potential uses of the FAFR include:

• commercial shipping – the FAFR is not within commercial navigation channels, however a small area of the FAFR is within Victorian Regional Channel Authority (VRCA) jurisdictional waters




27

• recreational boating, fishing and diving

• charter boat operators

• commercial fishing.

The FAFR is outside of the study area for this business impact assessment, however has been

included here for completeness.

5.2.1.3 Port of Hastings Development Authority and Victorian Regional Channels Authority

The Port of Hastings Development Authority (PoHDA), as Port Operator, is responsible for managing

the operations at the Port of Hastings, including maintaining the associated port infrastructure (except

for the BlueScope owned steel wharves).

The Port of Hastings is one of Victoria’s four commercial trading ports and is a key driver for the local

and regional economy. Its channels offer the deepest navigable commercial waters in Victoria with an

annual capacity of over 2,000 vessel movements per annum. Development has focussed on bulk

commodities with most of the trade being liquid bulk commodities. The value of trade each year is

approximately $1.4 billion. The Port’s main trade commodities include crude oil, liquefied petroleum

gas, unleaded petrol, diesel and steel. The Port’s facilities include the Stony Point jetty and depot, Crib

Point liquid berths 1 and 2, Long Island Point bulk liquid and gas berth and the BlueScope jetty, owned

by BlueScope. Stony Point is used by passenger ferries, the Royal Australian Navy, the fishing

industry, small commercial vessels and harbour tugs.

The Victorian Regional Channels Authority (VRCA) manages the commercial navigation of the

channels in Hastings port waters including management of shipping control, provision of navigation

aids, channel management, marine environment protection and safety and security.

PoHDA are working with AGL to ensure that Berth 2 at the Crib Point Jetty is ready and in suitable

condition for use for the Project. The Project would ensure compliance with the relevant obligations for

vessels operating in Port of Hastings waters, including the use of the commercial shipping channels

under the management of the VRCA.


Most of the land along the proposed pipeline alignment is being used for agricultural purposes

(discussed further in the EES Technical Report O Agriculture impact assessment). The predominant

commercial/industrial areas are in the town of Hastings. In Figure 9, land classified as retail services

can also be seen near Pakenham. This land, however, does not contain any businesses and therefore

there are not expected to be any impacts to businesses within this area. The businesses in Hastings

that may be affected by the Project generally have fewer than 20 employees7 and an annual turnover

of less than $2 million.8

Figure 9 and Figure 10 present the total area of land use by land parcel that intersects with the proposed pipeline alignment. This shows most land use affected by the proposed pipeline is agricultural. Within Hastings (Figure 11), the land uses directly affected by the pipeline alignment are principally industrial, residential and retail/services. This alignment has been moved from Frankston-Flinders road to the rail corridor to minimise impacts on the businesses.

7Businesses by Industry Division by Statistical Area Level 2 by Employment Size Ranges, June 2014, June 2015 & June 2016,

Australian Bureau of Statistics, 2017 8 Businesses by Industry Division by Statistical Area Level 2 by Turnover Size Ranges, June 2014, June 2015 & June 2016, Australian Bureau of Statistics, 2017




28

Source: Victorian Land Use Information System 2016 Department of Economic Development, Jobs, Transport and Resources

Figure 9 Summary of commercial land use (parcels)

Source: Victorian Land Use Information System 2016 Department of Economic Development, Jobs, Transport and Resources.

Figure 10 Land use along pipeline alignment




29

Source: Victorian Land Use Information System 2016 Department of Economic Development, Jobs, Transport and Resources

Figure 11 Land use (Hastings)

As shown in Figure 11, most businesses within the Study Area within Hastings are located on Frankston-Flinders Road and High Street with the highest density around Hastings Station. A mix of commercial and retail uses exist further south from the southern commercial precinct and there is a cluster of manufacturers, industrial sites located to the north of the northern commercial precinct. A mix of industrial and metal fabricating shops also exist in the southern commercial precinct.

Figure 12 and Figure 13 shows business density, which is the number of businesses per 100 hectares (ha). Business density is another measure of assessing where impacts are most likely to be realised. As seen in Figure 12, the majority of the study area has fewer than five businesses per 100ha, with the only area of higher business density (up to 50 businesses per 100ha) found in Hastings (shown in Figure 13). This is lower than the average of 50-100 businesses per 100ha in inner Melbourne.




30

Source: ABS Businesses by Industry Division by Statistical Area Level 2

Figure 12 Number of businesses in SA1 study area


Figure 13 Businesses by SA1 in Hastings




31

Figure 14 shows that most workplaces in the SA2s within the vicinity of the pipeline do not have more than 20 employees (including the owner). It should be noted that these numbers may have changed since the Census was taken in 2016, and also non-employing in Figure 14 does not mean there are 4,736 non-employing businesses in the area, as this figure would likely include contractors/tradespeople that do not have a fixed location, self-managed superannuation funds and other non-commercial ABNs. Despite this potential skewing of the data, it still demonstrates the small business characteristic of the area.


Figure 14 Employment Size (in SA2 study area)

The Australian Taxation Office (ATO) classifies a small business as having less than $2 million aggregated turnover. This reflects the small business characteristic of the Project Area with most businesses having an aggregated turnover between $100,000 and $200,000 with the next largest category being less than $50,000 aggregated turnover (Figure 15). It is important to understand these characteristics in order to identify possible impacts and mitigation measures that relate to the type of businesses that are in the study area.


Figure 15 Annual Turnover (in SA2 study area)

Within the Hastings-Somers SA2, the major industries in terms of number of businesses are:

• retail trade

• arts and recreation

• manufacturing.

Other common industries are shown in Figure 16. Common business types within the major industries include: metal fabricating, storage, manufacturing and automotive parts, wrecking and sales.




32

Source: AECOM analysis conducted using aerial imagery February 2019

Figure 16 Number of businesses in Hastings-Somers SA2 by industry

The type of industry and number of businesses by type further reiterates the importance of vehicle access – whether it is parking for retail trade or truck access for the manufacturing businesses. Accommodation and food services and arts and recreation service industries are particularity sensitive to disruption to access and amenity, as their customers may be deterred by negative amenity changes and the businesses may be reliant on foot traffic for their customer base. With the pipeline alignment moving to the railway corridor, these businesses have greatly benefited as impacts to access and amenity would be minimal.




33

6.0 Risk assessment

An assessment of business risks posed by the Project was undertaken in accordance with the method described in Section 4.2. The initial and residual business risks associated with the Project are summarised in Table 6-1.

The initial risk ratings presented below consider an initial set of mitigation measures (where relevant), which 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. Risk ratings were applied to each of the identified risk pathways assuming that these mitigation measures were in place.

Where the initial risk ratings were categorised as medium or higher, additional mitigation measures have been developed (where possible). These Project-specific mitigation measures have been incorporated into the Project description or Project design.

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7.0 Impact assessment

The following sections discuss the potential impacts on non-agricultural businesses from the construction and operation of the Project. Potential impacts on the ongoing operation of the Port of

Hastings have been assessed in Section 7.1.2 below.

During construction, opportunities for local suppliers and employment would include a range of general

trade and support services such as catering and food contractors, vegetation management, security guards

and patrols, and fencing contractors.

7.1 Gas Import Jetty Works

7.1.1 Construction (Risk ID B1)

The Gas Import Jetty Works would have a minimal impact on businesses with the Victorian Maritime Centre the only business situated nearby. Where access to this facility may be obstructed during construction, alternative access arrangements would be put in place. Further detail on the measures to be employed to ensure ongoing access to this facility would be included in the Traffic Management Plan that would be prepared for the Project. There may also be an impact on amenity for visitors to the Victorian Maritime Centre due to noise and dust in the area from construction activities. These impacts would be suitably managed through the implementation of noise and air quality controls that would be included in the EMP and are not expected to be significant.

The FAFR is outside of the study area for this business impact assessment, however has been

included here for completeness. There is not expected to be any impacts on the FAFR during

construction of the Gas Import Jetty Works.

Construction of the Gas Import Jetty Works may require the use of barges around the Crib Point Jetty.

The operation of barges during construction would be carried out in accordance with the relevant

provisions of the PoHDA Operating Handbook and the requirements of the VRCA where commercial

shipping channels would be used. Where this is the case there is not expected to be any adverse

impacts on the use of other commercial enterprises that use PoHDA facilities or the commercial

shipping channels.

The Project would ensure compliance with the relevant obligations for vessels operating in Port of

Hastings waters, including the use of the commercial shipping channels under the management of the

VRCA.

7.1.2 Operation

It is not expected there would be any impacts from the ongoing operation of the Gas Import Jetty on the Victorian Maritime Centre or nearby port operations. The operation of the Gas Import Jetty Works is consistent with the current use of the Crib Point Jetty for industrial purposes and would not impede on the ongoing use of the jetty for other purposes (including the use of the adjacent Berth 1). LNG carriers entering and leaving the Port of Hastings to deliver LNG to the FSRU would be managed by the Port of Hastings and the VRCA under existing port management protocols and are not expected to impact on the use of the Port of Hastings or the commercial shipping channels by other vessels.

As identified in EES Technical Report J: Transport impact assessment there would not be a noticeable increase in traffic volumes on roads around the Crib Point Jetty during operation. Up to five nitrogen delivery trucks would use The Esplanade per day at different times of the year. This is not expected to result in access or amenity impacts on businesses located south of the Crib Point Jetty due to the low forecast volume of Project related vehicles in consideration of existing volumes of passenger and commercial vehicles in this area. In addition, vehicles travelling to or from the FSRU at Crib Point are anticipated to access the facility from the north via The Esplanade.

Businesses that use the FAFR would not be impacted by the Project. The FAFR is serviced by separate infrastructure including the Flinders Jetty and therefore does not rely on access to or use of the Crib Point Jetty. The FAFR is 6.4 kilometres to the west of the Western Channel managed by VRCA and although there is a small area of the FAFR within the VRCA jurisdictional area, the

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movement of LNG carriers using commercial shipping channels within Western Port would not impact on this fisheries reserve.

An assessment of the potential impacts of the Project on the marine environment is provided in EES Technical Report A: Marine biodiversity impact assessment.

7.2 Pipeline Works

Early iterations of the pipeline alignment through Hastings were along Frankston-Flinders Road. Ongoing alignment options analysis conducted by APA included interrogation of potential environmental and amenity impacts, discussions with landowners, business operators and the broader community, constructability considerations and ensuring the Project can be delivered and operated safely.

As a result, the pipeline alignment through Hastings has been modified to use the existing Stony Point rail corridor as much as practicable. The use of this alignment substantially reduces the potential for business impacts when compared to the pipeline alignment along Frankston-Flinders Road. The selection of trenchless construction methodologies through much of Hastings also assists in minimising construction activities on the surface, further reducing potential impacts.

Discussions between APA, members of the team conducting this business impact assessment and potentially affected businesses found that consulted businesses supported the decision to revise the pipeline alignment to the rail corridor and away from Frankston-Flinders Road. Primarily, this support was associated with moving the pipeline away from most business frontages and car parking areas, therefore limiting potential disruptions to business operations. Most businesses that were consulted were not concerned about the Project if impacts to their business operations were minimal.

7.2.1 Construction

7.2.1.1 Disruption to business operations (Risk ID B1)

Initially, four primary potential impacts which may occur during the pipeline construction phase were identified:

• access restrictions or temporary changes to existing access arrangements

• reduced availability of carparking for customers and staff

• amenity impacts such as noise and dust

• reduced business visibility because of construction plant and equipment, which could have a negative impact on passing trade.

The extent of these potential impacts on businesses would vary dependent on the pipeline construction technique to be used. A brief overview of the potential impacts from each construction technique is also included below.

Potential impacts on businesses from open cut trenching

Where the open cut technique is to be used around Hastings, it would progress at a rate of around 30

to 55 metres per day from occupation to complete reinstatement. Where open cut trenching is

proposed, individual businesses may experience disruption to normal operations for one to three days.

The pipeline alignment has been selected to avoid driveways and access points to businesses.

Potential impacts on businesses from trenchless construction

Trenchless construction is a minimal surface impact method of installing underground utilities without

the need for excavating or trenching. Without careful consideration of the locations of entry and exit

locations for this type of construction, this technique may result in temporary amenity impacts such as

noise and vibration on businesses directly adjacent to the entry and exit points.

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After an options analysis and consideration of these potential impacts on businesses in Hastings, APA

selected the proposed alignment and construction technique along the existing rail corridor, as it

significantly reduces the likelihood of visual, air quality and other potential amenity impacts occurring,

as well as the severity of any residual impacts.

Potential impacts are discussed in more detail in the following sections for the southern, central and northern commercial areas at Hastings.

Access and visibility changes

Southern commercial area – specific impacts

Figure 17 shows the pipeline alignment through the southern commercial district. The pipeline alignment (yellow line), does not directly impede business access in the southern commercial area as it runs along the rail corridor and uses trenchless construction. Therefore, there would be negligible disruption. This also means that there are not expected to be any reduced business visibility, meaning that there would be few if any impacts to passing trade.

Figure 17 Southern commercial area

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Central commercial area – specific impacts

Figure 18 shows the pipeline alignment through the central commercial area at Hastings. The pipeline alignment follows the railway corridor and does not cross any business driveways, resulting in no disruption to access for businesses in this area. Most of the area would also be constructed via trenchless boring with the opening and exits being located away from businesses, causing negligible disruption. Business visibility impacts have also been almost completely reduced, resulting in negligible impacts to passing trade.

Figure 18 Central commercial area

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Northern commercial area – specific impacts

Figure 19 shows the alignment path through the northern commercial district along Kanowna Street, where the pipeline would cross business driveways. The pipeline construction phase is likely to have a relatively low level of impact on the activities of these businesses. Access arrangements would be developed in discussion with these businesses prior to the commencement of construction in order to ensure access is maintained. This area contains mostly industrial businesses that do not rely heavily on passing trade.

Figure 19 Northern commercial area

Management and mitigation

As the rail corridor is the proposed alignment, there is not expected to be any access impacts for businesses within Hastings up to Hodgins Road. Access points for the businesses between Reid Parade and Hodgins Road would remain unaffected with the pipeline being constructed behind the businesses and primarily using a trenchless technique. This is a positive outcome as the importance of access in and out of businesses was highlighted by traders during consultation, with many having heavy vehicles operating in and out of their sites. Prior to commencement of works and any temporary road closures, stakeholder and community consultation would be carried out and advanced notice given to affected residents, businesses or industries.

Reduced availability of car parking

Another concern raised throughout the trader consultation process was the potential for changes to roadside parking during the construction phase. Nearly all the traders consulted noted that the majority of their employees and customers travelled by private vehicle to their businesses. This means that any reduction in on-street parking from construction activities or construction workers using car spaces near these businesses would have the potential to adversely impact their businesses.

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Planning for the construction period would consider the treatment of parking spaces during the construction phase to limit any adverse effects. This may include identifying alternative construction workforce parking areas in the Traffic Management Plan that would be prepared for the Project. Prior to commencement of works and any temporary parking closures, stakeholder and community consultation would be carried out and advanced notice given to affected residents, businesses or industries. With the implementation of these mitigation measures there would be a minor risk of disruption to business operations for businesses in Hastings.

7.2.1.2 Potential amenity impacts such as noise and dust (Risk ID B2)

Construction activity from the Pipeline Works has the potential to cause air, noise and dust emissions. While steps would be taken to mitigate these emissions, businesses within the immediate vicinity of the entry and exits of the trenchless pipeline sections may be impacted.

The risk of dust, noise and/or vibration impacts to businesses would be minor due to the separation distance between businesses and the pipeline alignment and the location of the pipeline alignment at the rear of most business premises through the southern, central and northern commercial areas at Hastings. There may also be an impact on amenity for visitors to the Victorian Maritime Centre due to noise and dust in the area from construction activities. These impacts would be suitably managed through the implementation of noise and air quality controls that would be included in the Construction EMP (CEMP) and are not expected to be significant.

Noise levels are predicted to be up to 62 dB(A) at the nearest businesses during certain construction activities. This is not predicted to result in significant amenity impacts and would be a temporary condition while construction is occurring. In addition, most businesses in the study area in Hastings are not of a nature that temporary amenity impacts would materially affect the customer experience. Businesses in the hospitality sector, of which six were identified in Hastings, usually have the potential to be most impacted by a decrease in amenity. Amenity impacts to these six hospitality businesses are expected to be negligible.


The selection of the rail corridor alignment has significantly reduced the risk of potential amenity impacts on businesses within the Hastings study area. Careful management of the construction process, including the use of trenchless construction technique would further ensure that potential amenity impacts on businesses in Hastings are managed and mitigated. This would include close consultation with traders around specific construction periods where noise and dust may be especially prominent.

7.2.2 Operation

Operational impacts would be minimal as the pipeline is underground, with the only potential impacts on businesses during the unlikely event of maintenance activities requiring excavation. Where there is the potential for these activities to cause disruption to nearby businesses, these businesses would be consulted, and suitable management measures put in place, like those being employed during the construction period. Above ground facilities at Crib Point and Pakenham are not expected to impede on the ongoing operation of nearby businesses.

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8.0 Recommended mitigation measures

This section outlines the recommended mitigation measures for business identified as a result of the risk and impact assessment.

The recommended mitigation measures listed in Table 8-1 combine the initial and additional mitigation measures applied during the risk assessment to arrive at recommended mitigation measures for the design, construction and operation of the Gas Import Jetty Works and the Pipeline Works. In the course of finalising this report, consultation was undertaken with AGL and APA and other members of the team (designers, contractors and other specialists) to ensure the recommended mitigation measures would be achievable and compatible with those proposed by other specialists. These recommended mitigation measures have been refined as a result of these discussions and should be incorporated into the EMF, which would be implemented through the Project approvals as described in Chapter 25 Environmental Management Framework to effectively manage the environmental performance of the Project.

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

measures regarding noise and dust emissions, and traffic management during construction of the

Project:



• EES Technical Report J: Transport impact assessment.

Table 8-1 Recommended mitigation measures


MM-SE01

Stakeholder Engagement Management Strategy A Stakeholder Engagement Management Strategy should be prepared to facilitate ongoing consultation between the proponent and the community (including relevant Councils, government authorities, adjoining affected landowners and 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


Design, Construction and Operation

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• 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-BU01

Pipeline alignment change to Stony Point rail corridor

The pipeline alignment and construction methodology in 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.

Pipeline Works

Construction

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9.0 Conclusion

A business impact assessment has been undertaken to determine the potential impacts of the Project on businesses, and to identify recommended mitigation measures where appropriate in order to reduce potential risks of the Project.

9.1 Impact assessment summary

The business impact assessment focused on the risk of potential impacts of the Project on non-agricultural businesses and the identification of appropriate management and mitigation measures.

A risk assessment process was used to identify potential hazards and impact pathways during construction and operation of the Project. The risk assessment identified risk ratings for the following key risk areas

• disruption to business operations from changes to road and/or car parking conditions, which may affect access for customers, staff and deliveries

• adverse amenity changes such as noise and/or dust being generated by construction of the Project affecting businesses where amenity is part of the customer experience.


There are not expected to be any material impacts during the construction of the Gas Import Jetty Works at Crib Point, with only one business identified within proximity to the study area (the Victorian Maritime Centre at Crib Point). Access to this facility should be maintained during construction and management measures typical for projects of this type and scale should be used to manage potential amenity impacts such as noise and dust from construction activities.


By locating the pipeline in the existing Stony Point rail corridor through Hastings and primarily using HDD, direct and indirect impacts on businesses have been avoided or minimised as far as practicable.

9.2 Residual risk

A risk assessment was used that identified potential construction and operational risks and associated risk pathways, consequences of impacts on businesses and the likelihood of these impacts occurring to arrive at a risk rating.

With the mitigation measures in place, there are no risks that have a residual risk rating of medium or above. The residual risk of impacts on businesses is low with the implementation of the recommended mitigation measures.

Based on the outcomes of the assessment of potential impacts in this assessment report, the Project is considered to satisfy the draft evaluation objective to minimise potential adverse economic impacts.

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10.0 References

Department of Economic Development, Jobs, Transport and Resources, Victorian Land Use Information System, 2016

Businesses by Industry Division by Statistical Area Level 2 by Employment Size Ranges, June 2014, June 2015 & June 2016, Australian Bureau of Statistics, 2017

Businesses by Industry Division by Statistical Area Level 2 by Turnover Size Ranges, June 2014, June 2015 & June 2016, Australian Bureau of Statistics, 2017

Census of Population and Housing: Commuting to Work - More Stories from the Census, 2016, Australian Bureau of Statistics, 2018

Urban Development Program State Significant Industrial Precincts 2016, Victoria State Government, 2016

Victoria in Future data tables, VIF2016 LGAs VIFSAs ERP 2011-2031, Victoria State Government, 2018

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www.gasimportprojectvictoria.com.au

General and Gas Import Jetty enquiries1800 039 [email protected] Pipeline enquiries1800 531 [email protected]

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