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Load-based licensing

The load-based licensing (LBL) scheme, sets limits on the pollutant loads emitted by holders of environment protection licences, and links licence fees to pollutant emissions. LBL is a powerful tool for controlling, reducing and preventing air and water pollution in NSW.

LBL combines the strengths of several regulatory instruments to achieve better environmental and economic outcomes. In particular, it:

1. sets clear minimum standards for environmental performance
2. incorporates powerful incentives for ongoing pollution reduction
3. gives licensees flexibility to implement cost-effective pollution abatement methods
4. increases regulatory transparency
5. provides the infrastructure for emissions trading schemes
6. enables the long-term tracking of emissions reductions.

• The Protection of the Environment Operations (General) Regulation 2009 sets out the licence fee system and lists assessable pollutants (those pollutants that attract load-based fees).
• Licensees who must pay load-based fees must calculate their emission load using the Load Calculation Protocol.
• Each licensee must submit an annual return at the end of each 12-month licence fee period.
• Licensees may enter load reduction agreements to obtain fee savings in return for future pollutant load reductions.
• Load-based Licensing -A Fairer System that Rewards Cleaner Industry (lblbooklet.pdf 298kb) provides an overview of the LBL scheme and explains how it works.