State Agreement Approach

State Agreement Approach: A Way to Streamline Regulatory Approvals

The state agreement approach (SAA) is a process that aims to streamline regulatory approvals for large-scale projects in Australia. The SAA is an alternative to the traditional regulatory approach, which requires projects to obtain approvals from multiple government agencies. This can be a time-consuming and resource-intensive process that can delay projects and increase costs. The SAA seeks to simplify the process by coordinating approvals through a single agreement with the state government.

Under the SAA, a project proponent negotiates an agreement with the relevant state government agency that outlines the regulatory approvals required for the project. The agreement sets out the conditions that the project must meet to obtain regulatory approval, as well as the timeline for obtaining these approvals. Once the agreement is in place, the project proponent can proceed with the regulatory approvals process, knowing that they have a clear roadmap to follow.

The benefits of the state agreement approach include reduced regulatory burden, faster project approvals, and greater certainty around project timelines and costs. By coordinating approvals through a single agreement, the SAA can eliminate duplication and streamline the approvals process. This can be particularly beneficial for large-scale projects, which can require approvals from multiple agencies and may involve complex environmental and social considerations.

The SAA has been used successfully in a number of major projects in Western Australia, including the Gorgon and Wheatstone LNG projects. In these cases, the SAA helped to simplify the approvals process, reducing the burden on project proponents and accelerating project timelines.

While the SAA is a useful tool for large-scale projects, it is not suitable for all projects. The SAA requires a high degree of coordination between the project proponent and the state government agency, as well as a willingness to negotiate and compromise. It may not be feasible for smaller projects or projects with limited resources.

In conclusion, the state agreement approach is a valuable tool for streamlining regulatory approvals for large-scale projects in Australia. It offers project proponents a clear roadmap for obtaining regulatory approvals and can help to reduce the burden of the approvals process. While the SAA is not suitable for all projects, it has been successfully used in a number of major projects in Western Australia and should be considered as an option for projects that meet the criteria for its use.