The Australian Department of Climate Change, Energy, Environment and Water (DCCEEW) is seeking public input on proposed Industrial Chemicals Environmental Management Standard (IChEMS) decisions on internationally recognized chemicals of concern and lower-concern chemicals. The newly proposed standards aim to optimize the management of the use, storage, handling and disposal of chemicals within industrial sectors. IChEMS is dedicated to providing a consistent national framework that ensures environmentally sound practices and promotes the adoption of safer chemical alternatives across Australia.

The IChEMS Register classifies chemicals into one of seven categories based on their environmental risks, increasing transparency and guiding industry towards effective risk management. These classifications, along with specific risk management measures aim to protect natural ecosystems and promote sustainable industrial practices.

Public feedback is essential to refine the proposed standards and will directly influence the scheduling of chemicals on the IChEMS Register. Supporting documents for the consultation include indicative lists of chemicals with their respective Chemical Abstracts Service (CAS) Registry Numbers, providing essential data for stakeholders to identify and manage chemicals more efficiently.

Key Proposals for Feedback:

Internationally Recognized Chemicals of Concern:

- Dechlorane Plus® and UV-328: These chemicals are part of the Stockholm Convention on Persistent Organic Pollutants (POPs), indicating a high level of environmental threat requiring stringent controls.

The consultation is on inclusion in Schedule 6 of the IChEMS Register. Inclusion in Schedule 6 will prohibit their import, manufacture, use and export in Australia, with limited exceptions for unintentional trace contamination, research, environmentally sound disposal and articles in use before the date the decision takes effect. The proposed effective date is 1 July 2026.

Chemicals with Lower Environmental Risks:

- Melamine, boric acid and its precursors, and β-alanine: These are considered to pose a lower risk, but still require careful management to prevent environmental damage. The consultation is for inclusion in Schedule 2 (melamine and boric acid) and Schedule 3 (β-alanine) of the IChEMS Register.

Participation and Submission Process

Stakeholders are encouraged to review the detailed proposal and accompanying Q&A document to fully understand the scope and implications of the standards. To submit feedback:

- Access the online survey here (scroll down). The survey allows for comprehensive feedback and the option to attach relevant documents.

- Deadline for Submissions: Feedback must be submitted by 5pm (AEST) on Monday 13 May 2024.

In April 2024, the Australian Industrial Chemicals Introduction Scheme (AICIS) released a comprehensive proposal detailing adjustments to fees and charges for the 2024-25 fiscal year. As part of its regulatory mandate, AICIS aims to manage the introduction and manufacture of industrial chemicals in Australia, ensuring the safety and environmental sustainability of these processes. The proposed fees are based on the principles of full cost recovery in accordance with the Australian Government’s Cost Recovery Policy.

Key Proposals for 2024-25

The AICIS fees and charges document outlines significant updates, including adjustments to registration level thresholds and the indexation of fees to more closely reflect inflation and the actual cost of services provided. The changes are expected to streamline operations, improve the fairness of the distribution of the costs among stakeholders, and ensure that the fees collected match the regulatory efforts. The proposed changes to fees and charges are made up of two components:

- Adjustment of Registration Level Thresholds: The proposed changes aim to realign registration charges according to the scale of introductions, thereby facilitating a more equitable distribution of regulatory costs.

- Indexation of Fees: AICIS plans to increase existing service fees by 3.1% to reflect inflationary pressures, particularly in employee wages and supplier costs.

Stakeholder Engagement and Feedback

AICIS has actively engaged with key industry stakeholders including Accord Australasia, the Australian Chamber of Commerce and Industry, and Chemistry Australia. While there is broad support for the initiative to adjust introduction value thresholds, concerns remain about potential fee increases for top-tier registrants.

The AICIS is seeking broader industry feedback through its consultation hub, which runs from 2 April 2024 to 1 May 2024. This feedback will be crucial in shaping the final proposal to be submitted to the government.

Implications for Industry

Companies involved in the industrial chemicals sector will need to closely review the proposed changes, which could impact the cost structure of chemical introductions in Australia. The adjustment of fees and the method of their application reflect AICIS's commitment to maintaining a balanced approach to regulatory cost recovery while promoting a competitive market environment.

Conclusion

The AICIS's proposed fees and charges for 2024-25 reflect its ongoing efforts to align regulatory costs with the services provided. Stakeholders are encouraged to participate in the consultation process to ensure that their views are considered in the final decision. With these changes, AICIS continues to support the safe and responsible introduction of industrial chemicals in Australia, promoting both public health and environmental protection.

For detailed information on the proposed fees and to participate in the consultation, stakeholders can visit the AICIS consultation hub here or contact AICIS directly through its website.