The Morrison government is facing an uphill task to pass its overhaul of environmental approval laws, with key Senate crossbenchers still opposed to parts of the contentious proposal.
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But Environment Minister Sussan Ley remains hopeful she can win the crossbenchers over, as she warns jobs and economic activity are at risk if changes designed to streamline approvals for major projects are blocked.
The government wants to sign bilateral agreements with states and territories allowing them to make assessments, in line with a set of new national environment standards.
A new watchdog would be established to audit the agreements, but it wouldn't have the power to rule on individual projects.
Labor and the Greens are strongly opposed to the changes, arguing they don't reflect the recommendations from Graeme Samuel's scathing review of the Environment Protection and Biodiversity Conservation (EPBC) Act.
Their opposition means that the fate of two pieces of legislation, which have now reached the Senate, will rest with key crossbenchers.
South Australian senator Rex Patrick said there was "quite a big gap" between his position and that of the government.
Senator Patrick wants the national standards recommended by Professor Samuels to be adopted, not the watered-down version pushed by Ms Ley.
He also wants more information about the transfer of decision-making powers, calling for assurances that the states would have "suitably qualified" officials making environmental assessments.
Tasmanian senator Jacqui Lambie supported a streamlined approvals process, provided it was done right.
"Call me stubborn, but I'm not letting this go. I'll do absolutely everything I can to get rid of the useless paperwork in our environment laws, but I won't be letting big business run amok, either," she said.
"The Liberal Party doesn't want delay, and neither do I. It's up to them to work with the crossbench."
Centre Alliance MP Rebekha Sharkie is against the proposed legislation, as is her upper house colleague Stirling Griff.
"The standards that the government has proposed are simply not effective," Ms Sharkie said during debate in the House of Representatives earlier this week.
"Instead, they will lock in the current failing regime for at least another two years.
"The regulator, as proposed by the government, is not independent. Instead, it will be part of the department and subject to interference by the minister."
After the bill to create new environmental standards and the watchdog passed the lower house on Wednesday night, Ms Ley told reporters that she was "talking very constructively" with Senate crossbenchers.
Ms Ley again attacked Labor for its opposition to legislation which she said was "good for the economy, good for the environment and ... particularly good for jobs."
Opposition environment spokeswoman Terri Butler said Labor would consider supporting legislation to overhaul the EPBC Act - but only if it was aligned with Professor Samuels' suite of recommendations.
Insisting Labor was "absolutely pro-jobs", Ms Butler said the government was to blame for the delays in the environmental approvals process.
"Gutting the Environment Department, slowing down all of the processes and then saying 'look over there at the Labor Party, they won't pass reforms that we say are important' ... that is just trickery and I don't think people are going to fall for it."
The next opportunity for the Senate to debate the legislation will be the first week of August.
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