EPA Financial Assurance Calculator

Draft Methods for Calculating Financial Assurance for Bulk Storage, Onsite Soil Retention and Waste and Resource Recovery.

The EPA Victoria sought feedback (closed February 2026) on new methods for calculating financial assurance. A financial assurance is like a security deposit. It is money set aside to cover potential environmental clean-up costs. EPA can use financial assurance as a regulatory tool under the Environment Protection Act 2017. They may use them as a condition of:

• Certain EPA permissions
• Environmental notices
• Site management orders or, orders relating to substances that are hazardous to the environment. 

The EPA want to provide calculation approaches for all permission activities. They are proposing the following new or modified calculation methods for financial assurance.

• Bulk storage (GO4): EPA have developed a new calculation approach. 
• Onsite contaminated soil retention facilities (L02): EPA have developed a new calculation approach, like the one already used for landfills. 
• Waste and resource recovery facilities (A13 activities): A calculation method already exists. EPA have made minor changes to the method so that it is more realistic.

The consultation document outlined these new proposed methods. Once finalised, EPA will incorporate these methods into a new publication that replaces EPA Publication 2003.

Calculation of financial assurance for landfills, reportable priority waste (RPW) management and waste and resource recovery facilities.

CMPA Submission (25 February 2026)
Thank you for the opportunity to comment on the Draft Methods for Calculating Financial Assurance for Bulk Storage, Onsite Soil Retention and Waste and Resource Recovery (Consultation paper).

The CMPA is a member of the EPA Construction Sector Consultation Group and the EPA Resources, Energy and Extraction Sector Consultation Group.

The Victorian construction and demolition (C&D) inert waste recycling industry is proud of its contribution to the circular economy with many of our members being at the forefront of product development and reuse of construction materials across the country, these businesses being pioneers in the industry and in business for decades.

The CMPA supports the principle of responsible, balanced legislation that is in the best interests of the State of Victoria and Australia including the protection of resources that enable extraction of resources and processing of C&D waste that is cost efficient to market and to the Victorian taxpayer who is ultimately the end consumer and beneficiary of that resource.

Submission
The CMPA supports the inclusion of the following text in the final Methods for Calculating Financial Assurance for Bulk Storage, Onsite Soil Retention and Waste and Resource Recovery:

“Certain facilities, such as those processing for recycling purposes paddock rock, asphalt, tiles, bricks or concrete, where there are operation processes in place to minimise contaminants, will not be required to provide financial assurances to the EPA.”

Conclusion
The construction and demolition waste recycling industry including paddock rock, asphalt, tiles, bricks or concrete is a vibrant long-established industry producing 7 million tonnes of saleable product per annum in Victoria thereby diverting construction and demolition waste from landfill.

Discussion
CMPA has had extensive interaction with the EPA (Lee Miezis, former CEO and Duncan Pendrigh, former Director Regulatory Services) regarding the EPA Financial Assurance Calculator for paddock rock, asphalt, tiles, bricks or concrete, C&D waste.

Potential financial assurances are an ongoing concern for the viability of the industry and given the wording of the Consultation paper, many sites have their outcomes left open to the interpretation of the paper.

The EPA’s view on the issue, detailed in a letter dated 24 March 2023 to the CMPA (attached to submission) where it was noted that “facilities recycling paddock rock, asphalt, tiles, bricks and concrete would be “unlikely” to require a financial assurance. I have attached the letter from EPA concerning this interaction which deemed the sites visited as low risk and not requiring Financial Assurance for your reference.

The CMPA would request that the wording be changed to reflect this view in the updated Consultation paper. Communications were also held recently with EPA as per attached email 30 January 2026:

“There has been no change to EPA’s view in the letter of March 2023, and the proposed modifications to the calculation method in publication 2003 also does not impact this view and our current approach to considering the need for financial assurance.

As discussed today, we would appreciate your thoughts on any additional wording you feel may be helpful in the publication to clarify the use of the current calculation method, and proposed modifications.”

The Consultation paper requires further clarification to ensure clarity in the incorporation of the intent of the EPA letter received 24 March 2023 and the following is supported:

“Certain facilities, such as those processing for recycling purposes paddock rock, asphalt, tiles, bricks or concrete, where there are operation processes in place to minimise contaminants, will not be required to provide financial assurances to the EPA.”

Feedback from EPA on CMPA submission (received 10 June 2026)

“Thank you for your submission to our Engage Vic consultation on Calculating financial assurance for bulk storage, on-site soil containment and waste and resource recovery facilities.

We have just finalised and gazetted the publication, which is new EPA publication 5008 Calculation of financial assurance for prescribed permission activities replacing the existing publication 2003
.
We were unable to include the text you proposed in the new publication, as this related to EPA’s consideration of the need for a financial assurance to be provided for a permission activity, rather than
calculation methods for financial assurance, which was the focus of the consultation and final publication.

Additionally, whilst it is correct that EPA has advised that facilities recycling paddock rock, asphalt, tiles, bricks and concrete with operational processes in place to minimise contaminants are unlikely to be required to provided financial assurance, EPA will still undertake site specific assessments of the need for financial assurance and cannot make definitive statements without this. As
indicated, our previous advice to you stands on how we have been and continue to consider the need for financial assurance for C&E facilities, and we have been consistent in our approach to this.”