The NSW Environment Protection Authority has embarked on its most significant reform of the environment protection licensing system since the Protection of the Environment Operations Act 1997 (NSW) (POEO Act) commenced in 1999. The Environmental Legislation Amendment Act 2025 (NSW) (ELA Act), which commenced on 12 December 2025, provides the legislative foundation. But the operational changes – the ones that affect day-to-day compliance – are being rolled out through updated licence conditions on a rolling basis from late 2025 through to 2028.

This article is an update on these reforms.

The headline reforms are the abolition of Annual Returns for most Environment Protection Licence (EPL) holders and their replacement with near real-time non-compliance reporting through the EPA's eConnect digital portal. But the picture is more nuanced than that headline suggests. Some obligations are active now. Others are future aspirations without confirmed dates. And the mechanism of implementation – through licence conditions rather than statute – means that each EPL holder's obligations depend on the specific conditions of their individual licence.

This article explains what has changed, what is coming, and what EPL holders should do now to prepare.

The old regime: Annual Returns and periodic reporting

The Annual Return

For over two decades, the centrepiece of EPL compliance reporting was the Annual Return. It arose from the combined operation of the POEO Act, s 66(3), which authorises licence conditions requiring certified compliance statements, and the standard licence condition R1 imposed in individual EPLs, which required submission of an Annual Return within 60 days after the end of each reporting period.

The Annual Return contained:

• A Statement of Compliance, certified by the licence holder or an approved person under s 66(3).
• A summary of monitoring data required by licence conditions.
• A record of complaints relating to pollution from the licensed activity.

For load-based licence (LBL) holders, the pollutant load data used to calculate the annual licence fee.

The licence holder was required to retain a copy of the Annual Return for at least four years after the due date.

Enforcement of Annual Return obligations

Failure to lodge an Annual Return was not a trivial matter. Subject to evidentiary matters and appetite for enforcement, it could be prosecuted as a criminal offence under the POEO Act - specifically, a breach of licence conditions under s 64, which carries maximum penalties of $2,000,000 for a corporation and $500,000 for an individual, plus daily penalties for continuing offences.

The EPA has prosecuted EPL holders for failing to lodge returns. For example, Environment Protection Authority v Davis [2019] NSWLEC 79; Environment Protection Authority v Wollondilly Abattoirs Pty Ltd [2019] NSWLEC 72; and Environment Protection Authority v Transpacific Industries Pty Limited [2010] NSWLEC 85.

Given these cases, there should be an assumption from EPL holders that similar attention will be given to contraventions of the new 14-day requirements.

Monitoring conditions

Separately from the Annual Return, s 66(1) of the POEO Act empowers the EPA to impose licence conditions requiring monitoring of operations, discharges, and ambient conditions, including the provision and maintenance of measuring and recording devices and the analysis, reporting and retention of monitoring data.

The most extensively litigated EPL monitoring condition precedents in NSW are the Orica Botany cluster of cases - seven separate prosecutions decided on 28 July 2014 (Environment Protection Authority v Orica Australia Pty Ltd [2014] NSWLEC 103 to [2014] NSWLEC 110) - which collectively addressed the practical scope of monitoring obligations at a complex industrial facility. Follow-up proceedings continued as recently as 2021 (Orica Australia Pty Ltd v Environment Protection Authority [2021] NSWLEC 1190), confirming the underlying principles remain current.

More recently, Environment Protection Authority v Sydney Water [2022] NSWLEC 100 and Environment Protection Authority v Maules Creek Coal Pty Ltd (No 4) [2025] NSWLEC 92 demonstrate that the EPA continues to actively enforce monitoring and reporting conditions. The most recent decision identified in this research, Environment Protection Authority v Clarence Colliery Pty Ltd [2026] NSWLEC 13, was decided in February 2026 - after the commencement of the reforms - confirming that existing monitoring and reporting obligations are being enforced even as the reform program is rolled out.

Publication of monitoring data

Since 2012, s 66(6) of the POEO Act has required licence holders to publish pollution monitoring data within 14 days of obtaining it. If the licence holder maintains a website relating to the licensed business, the data must be made publicly and prominently available on that website. If they do not maintain such a website, they must provide a copy to any person who requests it at no charge. This obligation is distinct from, and predates, the new near real-time reporting reforms.

The legislative trigger: Environmental Legislation Amendment Act 2025

The ELA Act was introduced on 6 August 2025, passed both Houses on 18 September 2025, and commenced in two stages: limited provisions on 23 September 2025 (date of assent), and the majority on 12 December 2025 (by proclamation).

The ELA Act is the legislative foundation for the licensing reforms, but it is important to understand what it does and does not do. The ELA Act does not itself legislate the removal of Annual Returns or introduce a statutory real-time reporting obligation. Those changes are being implemented administratively by the EPA through licence condition updates. The ELA Act provides the enabling framework and makes a series of related amendments to the POEO Act.

The key POEO Act amendments made by the ELA Act are:

• Material harm threshold increased: The monetary threshold in the definition of "material harm to the environment" in s 147 has been increased from $10,000 to $50,000. This affects the s 148 duty to notify pollution incidents: the monetary trigger for reporting is now substantially higher, though harm to health or ecosystems that is "not trivial" remains reportable regardless of the monetary threshold. This took effect on 12 December 2025. This is a sensible amendment given that $10,000 in clean-up costs is a low amount having regard to modern costs and rates for tip fees, for example.
• Ministry of Health removed from notification list: Section 148(8)(d) has been repealed, removing the Ministry of Health from the list of "relevant authorities" that must be notified of a pollution incident. This took effect on 23 September 2025. This is another sensible amendment given the practical difficulties associated with this notification for industry.
• Non-delegation of licence obligations: A new s 7A provides that obligations under environment protection licences cannot be delegated or transferred to another person, including contractors. This substantially narrows the "caused by another person" defence previously available under s 64(2). EPL holders can no longer point to a contractor's failure as a defence to a licence condition breach. This took effect on 12 December 2025.
• Expanded Protection of the Environment Policies: Section 30 has been amended so that PEPs may now apply to any person, not just public authorities. Licence conditions may require compliance with a PEP, and breach would constitute an offence under s 64.
• Extended executive liability: Director and officer personal liability has been extended across all environment protection legislation, including for s 64 licence condition breaches and s 66(2)/(4) false information offences.
• New sentencing considerations: Courts must now consider (i) impacts on Aboriginal cultural values and practices and (ii) environmental justice principles, including disproportionate impacts on disadvantaged or vulnerable communities.
• New offence: harassment of EPA officers: Section 320B creates a new offence for harassing NSW EPA officers or employees who administer or exercise functions under environment protection legislation. Registration of notices on title: Section 108B empowers the EPA and councils to register clean-up, prevention, and prohibition notices on the certificate of title for the relevant property.

What has changed now

As at March 2026, the following changes are active and in effect:

Annual Returns abolished for most EPL holders

The EPA has removed the requirement to submit Annual Returns for most licence holders. This is being implemented through updated licence conditions - the standard condition R1 requiring Annual Returns is being replaced or removed on a rolling basis as the EPA updates individual licences under s 58 of the POEO Act.

The exception is load-based licence (LBL) holders, who retain a simplified Annual Return obligation. LBL holders must continue to submit an Annual Return to report the pollutant load data used to calculate their annual licence fee under the load-based licensing scheme (POEO Act, Schedule 2). The content is simplified - it is limited to fee calculation data rather than the full compliance statement previously required.

14-day non-compliance reporting via eConnect EPA

The centrepiece of the reform is the new near real-time non-compliance reporting obligation. Licence conditions are being updated to require EPL holders to report non-compliances via the EPA's eConnect digital portal within 14 days of becoming aware of the non-compliance. 

For each non-compliance reported, the licence holder must provide:

• The date the licence holder became aware of the non-compliance, and the date(s) it occurred.
• Whether the non-compliance relates to air, water/land, noise or waste matters.
• The location, duration, cause or suspected cause of the non-compliance.
• Mitigation actions taken or proposed.
• Actions taken or proposed to prevent recurrence.

If the non-compliance has not been rectified within 14 days of discovery, it must still be reported within the 14-day window, and the licence holder must indicate that it is continuing.

It should be noted that, at present, there is no materiality threshold for this obligation. Unlike the s 148 duty to notify (discussed below), which is triggered only by pollution incidents causing or threatening "material harm", the 14-day non-compliance reporting obligation captures all non-compliances - including trivial ones. This is a significant expansion of the reporting obligation. It will require extra administrative and operational controls to be put in place to meet this obligation.

Interim monitoring data summaries

While the Annual Return has been abolished, licence holders are now required to submit an annual summary of monitoring data via file upload in eConnect EPA at the end of each licence reporting period. The summary must report maximum, minimum, and mean values for each monitored parameter.

This is an interim arrangement. The EPA's stated intention is to move to near real-time monitoring data submission, but this has not yet been mandated (see Section 5 below).

eConnect EPA as mandatory platform

All reporting - non-compliance reports and monitoring data summaries - must now be submitted through the EPA's eConnect EPA digital portal. EPL holders who have not already registered for eConnect EPA should do so immediately.

What is coming next

The EPA has described a staged approach to implementing further reforms. The following are anticipated but not yet in effect:

Near real-time monitoring data submission

The EPA's stated long-term objective is for EPL holders to submit monitoring data in near real-time rather than as annual summaries. However, the EPA has been explicit that this requirement will not be implemented immediately. The EPA is exploring options and pursuing a staged approach, aligned with software system updates and platform development.

No specific date has been published for the commencement of mandatory near real-time monitoring data submission. The EPA describes the timeline as covering 2026 to 2028, but without specific milestones for the monitoring data transition. The annual summary approach described above is the current interim arrangement.

Public-facing data platform

The EPA is developing a new public-facing platform to improve community access to monitoring information in near real-time. This is separate from the existing s 66(6) obligation for licence holders to publish their own monitoring data. The EPA's platform would provide a centralised public display of environmental monitoring data from licensed premises.

Dynamic risk indicators

The five-year Environmental Risk Assessment (ERA), which focused on predominantly static risk factors, is being removed and replaced with dynamic risk indicators. The EPA's stated intention is that access to more timely data (through near real-time reporting) will enable collaborative identification of emerging environmental trends and proactive risk management. Specific details of the dynamic risk indicator framework have not been published.

Climate change licensee requirements

New climate change reporting requirements will be phased in from 1 January 2027 for EPL holders emitting more than 25,000 tonnes of CO2 equivalent per year. First emissions reports are due 31 March 2027. Climate Change Mitigation Action Plans (CCMAPs) must be published on licensee websites by 31 March 2027 or 31 August 2027, depending on the licensee type.

EMC protocol reform

The Environmental Management Calculation (EMC) Protocol, which determines licence administrative fees, is being reformed to introduce a simpler fee system. The reformed protocol may result in modest increases or decreases to current fees for individual licensees. The timing of the EMC Protocol reform is being staged in alignment with other reform components.

The critical distinction: reforms operate through licence conditions

This is the single most important point for EPL holders to understand: the annual return abolition and non-compliance reporting reforms are not embedded in the POEO Act or the POEO (General) Regulation 2022. They are being implemented through licence conditions.

This has several practical consequences:

• Each licence is different: The EPA is updating licence conditions on a rolling basis under s 58 of the POEO Act. This means that the specific obligations of each EPL holder depend on when their licence conditions were last updated. Two EPL holders may have different reporting obligations at any given time during the transition period.
• Check your licence: The only way to know whether the new reporting obligations apply to a particular EPL is to check the current conditions of that licence. The EPA's general announcements describe the reform program, but they do not substitute for reading the licence itself.
• The EPA can vary conditions at any time: Under s 58(3)(b), the EPA may vary a licence on its own initiative. It does not need the licence holder's application or consent. This means the EPA can update any EPL's conditions to implement the new reporting regime at any time. Section 58(6) requires public consultation only where a variation would authorise a "significant increase in the environmental impact" of the licensed activity - updating reporting conditions is unlikely to meet that threshold.
• Breach of a licence condition is a criminal offence: The s 64 offence applies to breach of any licence condition, including the new non-compliance reporting conditions. Failure to report a non-compliance within 14 days of discovery could expose the licence holder to prosecution under s 64, with maximum penalties of $2,000,000 for a corporation and $500,000 for an individual.
• The non-delegation principle applies: The new s 7A means that the obligation to report non-compliances cannot be delegated to a contractor. Even where the non-compliance was caused by a contractor's actions, the licence holder must report it. And the licence holder cannot rely on the contractor to do so on their behalf.

Three reporting obligations EPL holders must not confuse

The reform landscape now involves three distinct reporting obligations with different triggers, thresholds, and mechanisms. EPL holders must understand the differences to avoid both under-reporting and duplicate reporting.

Obligation 1: Section 148 - Duty to Notify Pollution Incidents

This is a long-standing statutory obligation, not part of the new reforms. Under POEO Act, s 148, a person carrying on an activity must immediately notify each "relevant authority" when a pollution incident occurs that causes or threatens material harm to the environment.

"Material harm" is defined in s 147 as harm that involves actual or potential harm to health or ecosystems that is "not trivial", or results in actual or potential loss or property damage exceeding $50,000 (threshold increased from $10,000 by the ELA Act, effective 12 December 2025).

Notification must be made by telephoning the EPA's Environment Line on 131 555 (immediate verbal notification), followed by written particulars within 7 days.

The leading authority on s 148 is Environment Protection Authority v Bulga Coal Management Pty Limited [2014] NSWLEC 5, which established the foundational framework for the pollution incident notification obligation.

"Relevant authority" now means the EPA, the local authority (if the EPA is the appropriate regulatory authority), SafeWork NSW, and Fire and Rescue NSW. The Ministry of Health was removed from the list by the ELA Act (effective 23 September 2025).

Obligation 2: 14-Day Non-Compliance Reporting (new)

This is the new obligation introduced by the licence condition reforms. It requires reporting of any non-compliance with licence conditions via eConnect EPA within 14 days of becoming aware.

Key differences from s 148:

• Trigger: Any non-compliance with any licence condition (not just pollution incidents causing material harm).
• Threshold: None. Even trivial non-compliances are reportable.
• Timeframe: Within 14 days of awareness (not immediately).
• Method: Via eConnect EPA digital portal (not by telephone).
• Source of obligation: Licence conditions (not statute).
• Enforcement: Breach of licence condition under s 64.

Obligation 3: Section 66(6) - Publication of Monitoring Data

This predates the reforms and continues to apply. Within 14 days of obtaining pollution monitoring data, the licence holder must publish it on their website (or provide it to any person on request if they do not maintain a website).

This is a distinct obligation from both s 148 notification and the new non-compliance reporting. It concerns the publication of monitoring data, not the reporting of non-compliances or incidents.

Summary table

Broader reform context: penalties, non-delegation and executive liability

The reporting reforms should not be viewed in isolation. They sit within a broader legislative program that has significantly strengthened the EPA's enforcement powers and the personal accountability of licence holders and their directors. 

The Environment Protection Legislation Amendment (Stronger Regulation and Penalties) Act 2024 (NSW), which commenced on 3 April 2024, doubled maximum penalties for Tier 1 POEO Act offences. Maximum penalties for a corporation now reach $10 million for wilful offences and $4 million for negligent offences. For individuals, the maximums are $2 million plus seven years' imprisonment (wilful) or $500,000 plus four years (negligent).

That Act also introduced new EPA powers including Preliminary Investigation Notices, Recall Notices, and public warning statements, as well as the power to seek Prohibition Orders under s 253B preventing a person from holding or applying for an EPL.

The 2024 Act and the 2025 ELA Act together represent a coordinated program of regulatory strengthening. The combination of increased reporting obligations, expanded penalties, non-delegation of obligations, and extended executive liability creates a significantly more demanding compliance environment for EPL holders. Directors and officers who previously relied on delegating environmental compliance to operational staff or contractors can now face direct personal liability particularly where, for example, money should have been spent on improving environmental controls but wasn't (for whatever reason).

The only Court of Appeal authority identified in this area, South East Forest Rescue Inc v Forestry Corporation of New South Wales (No 2) [2024] NSWCA 113, addresses breach of EPL conditions including reporting obligations, providing binding appellate authority on the consequences of non-compliance.

Practical steps for EPL holders

• Check your current EPL conditions. This is the most important step. The reforms are implemented through licence conditions, which are being updated on a rolling basis. Check whether your licence conditions have been updated to reflect the new 14-day non-compliance reporting obligation and the removal of the Annual Return condition. If they have not yet been updated, they will be.
• Undertake training of all staff and contractors on these new requirements.
• Register for eConnect EPA. If your organisation is not already registered on the EPA's eConnect digital portal, do so immediately. All non-compliance reporting and monitoring data submissions must now be made through this platform.
• Implement a non-compliance tracking system. The 14-day reporting obligation requires timely identification and reporting of all non-compliances not just material ones. Organisations need a system for identifying, recording, and escalating licence condition non-compliances so that the 14-day reporting window is not missed.
• Review delegation and contractor arrangements. The new s 7A non-delegation principle means that licence holders cannot delegate their reporting obligations to contractors. Even where a contractor's actions cause a non-compliance, the licence holder must identify and report it. Review existing contracting arrangements to ensure that the licence holder has visibility of all activities that could give rise to non-compliances, and that the licence holder not the contractor is responsible for reporting.
• Prepare annual monitoring data summaries. Until the EPA mandates near real-time monitoring data submission, licence holders must submit annual summaries of monitoring data (maximum, minimum, and mean values) via eConnect EPA at the end of each reporting period. Ensure that monitoring data is being collected and aggregated in a format that allows these summaries to be prepared.
• For LBL holders: prepare simplified Annual Returns. Load-based licence holders retain an obligation to submit a simplified Annual Return for fee calculation purposes. Ensure that pollutant load data is being collected and that the simplified return can be prepared by the due date.
• Monitor EPA announcements on real-time reporting. The EPA has not published a specific date for mandatory near real-time monitoring data submission. When this date is announced, it is likely to come with a transition period. EPL holders should monitor the EPA's licensing reforms page and consider future investment in monitoring infrastructure including continuous emissions monitoring systems (CEMS) if applicable - ahead of any mandate.
• Note existing CEMS standards. For EPL holders who already operate or plan to install continuous emissions monitoring systems, the EPA's approved methods require data to be reduced to one-hour averages calculated from four or more data points equally spaced over each one-hour period, with a minimum data capture rate of 90 per cent and system availability of at least 95 per cent.
• Understand the three reporting obligations. The s 148 duty to notify pollution incidents (immediate, by telephone), the 14-day non-compliance reporting obligation (via eConnect), and the s 66(6) monitoring data publication requirement (within 14 days, on the licensee's website) are three separate obligations. Ensure that your compliance systems address all three, with clear protocols for each.

Qualifications and limitations

• This article is current as at 20 March 2026. The EPA's licensing reform program is being implemented on a staged basis and the position may change as further licence condition updates are rolled out, as the EPA publishes additional guidance, and as near real-time monitoring data requirements are finalised.
• The reforms are being implemented through licence conditions. This means that the specific obligations of any particular EPL holder depend on the current conditions of their individual licence. The general descriptions in this article reflect the EPA's published reform program but do not substitute for a review of specific licence conditions.
• No High Court or appellate authority exists on the specific reforms. The annual return and monitoring frameworks are governed by Land and Environment Court decisions. The only appellate authority identified, South East Forest Rescue Inc v Forestry Corporation of New South Wales (No 2) [2024] NSWCA 113, addresses EPL condition breach generally rather than the specific reform provisions.
• The EPA has not published a specific timeline for near real-time monitoring data submission. The EPA describes a "staged approach" aligned with software system updates, covering 2026 to 2028, but no specific dates have been confirmed. EPL holders should not assume a particular commencement date.
• The POEO (General) Regulation 2022 is due for automatic repeal on 1 September 2027 under the Subordinate Legislation Act 1989. It is likely that a replacement regulation will be made, and it may incorporate provisions reflecting the reformed reporting regime. EPL holders should monitor this development.
• Specific data transmission protocols, formats, and equipment approval processes for near real-time monitoring data submission have not been published by the EPA. These details will be critical for EPL holders when the near real-time monitoring mandate is announced, but are not currently available.

This article is intended as general information only and does not constitute legal advice. EPL holders should obtain specific advice in relation to their individual licence conditions and compliance obligations.

The EPA's licensing reform program is being implemented on a staged basis, and the position may change as further licence condition updates are rolled out. The specific obligations of any particular EPL holder depend on the current conditions of their individual licence. We are continuing to monitor developments as the reform program progresses and are advising clients on their specific licence obligations and compliance strategies.

If you would like to discuss how these reforms affect your operations, please contact Luke Walker and Simon Ball from our Environment & Planning team.