Victorians have lost confidence in the ability of the state's Environment Protection Authority to do its job, according to a highly critical internal review.

It found the EPA had become confused about its role as an environmental regulator, had lost focus on prosecuting businesses and become ''fractured, reactive and inconsistent''.

The internal investigation was ordered last year by EPA chief executive John Merritt after damning external reviews by the Victorian Ombudsman and Auditor-General.

Headed by former WorkSafe Victoria investigations director Stan Krpan, the latest report said: ''A reactive strategy, limited procedures and lack of accredited training meant that EPA had not adequately supported authorised officers to consistently and effectively apply and explain the law.''

Mr Merritt, a former WorkSafe Victoria boss who became EPA chief a year ago, described the review as ''robust and frank'' and said he had accepted all 119 recommendations. Work had begun on this.

EPA commissioned Stan Krpan, the former Director of Legal Services and Investigations at WorkSafe Victoria (Victoria’s Health and Safety regulator) to conduct this independent review.

The review involved a comprehensive assessment of how EPA educates and supports duty-holders to comply with the law and how it enforces against those that don’t.

The review found that EPA needs to:

  • reclarify its core role as an environmental regulator by promoting and adhering to the principles of a modern regulator
  • refocus its energy on building staff expertise and knowledge and using that expertise to support duty-holders to comply with the law
  • make smarter, more targeted and transparent decisions to tackle the issues that pose the greatest risk to human health and the environment

''The report reflects what I too had heard from the community and businesses,'' Mr Merritt said. ''Our core role is being the environmental regulator … we haven't done it well, the report is clear about that, and we intend to do it extremely well.''

The report is in line with Mr Merritt's public position since joining the EPA that the authority had stopped prosecuting at the level it should and faced a perception it was toothless.

The report can be found at www.epa.vic.gov.au