Compulsory easement acquisition for transmission lines can now proceed concurrently with an Environmental Effects Statement process following the amendment of section 86 of the Electricity Industry Act 2000 by the Energy and Other Legislation Amendment (Resilience Reforms and Other Matters) Act 2026.
The Energy and Other Legislation Amendment (Resilience Reforms and Other Matters) Bill 2026 (Bill) was introduced to the Legislative Assembly on 3 February 2026 and contains a range of reforms to Victoria’s energy regulatory framework, including amendments relating to the Victorian Energy Efficiency Target, the National Electricity (Victoria) Act 2005, and VicGrid.
The amendments modify the easement acquisition framework under the Electricity Industry Act 2000 (EI Act) and its interaction with Victoria’s environmental assessment regime under the Environment Effects Act 1978 (EE Act).
The house amendment concerning easement acquisition was not part of the Bill as originally introduced and was introduced during the Committee of the whole Council stage on 5 March 2026.
The Bill received Royal Assent on 11 March 2026 (Act No. 9 of 2026), and is now in force.
The amendment makes two changes to section 86 of the EI Act, which governs the power of electricity corporations to acquire easements with the approval of the Governor in Council.
1. Broadens the scope of acquirable easements
In its previous form, section 86 of the EI Act permitted an electricity corporation holding a transmission or distribution licence to acquire an easement over land for the purpose of erecting or laying, and maintaining, powerlines. Acquisition requires the approval of the Governor in Council and is subject to the procedures under the Land Acquisition and Compensation Act 1986 (Vic) (LACA).
As amended, the provision permits acquisition of an easement “which is, or may be, required” for those purposes.
The effect of this change is to permit easements to be acquired where the need for the easement is prospective rather than presently determined, for example, where a transmission route has been identified but the project remains subject to environmental or planning assessment.
2. Disapplies the EES moratorium on acquisition
Previously, where a project had been referred to the Minister for Planning and an EES had been required, section 8C(1) of the EE Act prevented the easement acquisition process from commencing until the EES process was complete. This provision operated as a moratorium to ensure that significant project approvals were not granted before environmental effects have been formally assessed.
This sequential requirement was identified by Government as contributing to delays in the delivery of major transmission infrastructure projects, including the Victoria to New South Wales Interconnector West (VNI West) and the Western Renewables Link (WRL).
To address this, the amendment inserts a new subsection 86(2A) into the EI Act, providing that nothing in section 8C(1) of the EE Act prevents:
The insertion of subsection 86(2A) creates a targeted carve‑out from that moratorium for easement acquisitions under section 86 of the EI Act. The practical consequence is that compulsory acquisition of easements for electricity transmission projects may now proceed in parallel with the EES process.
The Government indicated that the amendment is intended to align Victoria’s approach with other forms of linear infrastructure, such as road, rail and water projects, and with the position in New South Wales.
The amendment enables electricity corporations to commence easement acquisition earlier, with the potential to shorten overall project timelines. The Government has stated that the requirement to pursue voluntary agreement with landowners before compulsory acquisition remains unchanged. However, the ability to commence compulsory acquisition concurrently with the EES process is likely to alter negotiation dynamics between proponents and landowners.
The amendment does not repeal or amend section 8C of the EE Act. The carve‑out applies only to easement acquisitions under section 86 of the EI Act. All other decisions and works subject to the section 8C(1) moratorium remain governed by the EE Act. Transmission projects for which an EES has been required remain subject to environmental assessment; the amendment alters the interaction between that assessment and easement acquisition powers, not the assessment itself.
Landowners along proposed transmission corridors may now receive notices of intention to acquire easements under the LACA before the environmental assessment of the relevant project has concluded. Landowners retain their existing rights under the LACA, including rights to object to the acquisition, to claim compensation, and to have disputed compensation determined by VCAT or the Supreme Court.
The amendment alters the sequencing of processes, allowing acquisition to commence earlier in the project lifecycle. The legislation does not address how easements already acquired would be treated if the EES process results in a material change to route alignment or project scope. While compensation entitlements under the LACA continue to apply, the practical consequences for affected landowners may be significant.
The amendment represents a material shift in the relationship between environmental assessment and compulsory acquisition for electricity transmission infrastructure in Victoria. While the section 8C(1) moratorium has historically ensured that major project approvals do not proceed until environmental effects have been assessed, the new subsection 86(2A) introduces a targeted exception for transmission easements.
The amendment does not remove landowner rights under the LACA or the obligation to undertake an EES where required. It does, however, change the order in which processes may occur and introduces uncertainty for landowners affected by proposed transmission corridors. The practical impact will depend on how the concurrent process is applied, particularly where route alignments evolve through the EES.
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Chris specialises in land valuation, compulsory acquisition and local government rating. His experience in valuation, compensation and rating provides deep insights in carrying out work and managing disputes on behalf of local government.
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