Environmental Performance Committee

12 March 2014

Apologies

Confirmation of Agenda

THAT the agenda of the Environmental Performance Committee of 12 March 2014 as circulated be confirmed as the business for the meeting.

Disclosures of Interest

Resolution to Exclude the Public Recommended that in accordance with the

provisions of Standing Orders NZS 9202:2003 Incorporating Amendment No 1, Appendix A&B (p40/42) and Section 48 of the Local Government Official Information and Meetings Act 1987, the public be excluded from the following part/s of the meeting.

Consent, Incident Response and Enforcement Statistics

Recommendation

That the report “Consent, Incident Response and Enforcement Statistics” (Doc # 2964693 dated 24 February 2014) be received for information.

Background to Water Allocation in the Waikato Region

Edmund Brown

Issues pre V6

50% of NZ’s peak electricity produced in Waikato – direct line to Auckland. Conflict between demand for irrigation and hydro and little guidance for decision makers

Auckland's future water source. Some town supplies have been at risk of losing their allocation on the first in first served basis

Importance for dairying and horticulture Many of the shed wash and stock water takes have not been

properly managed and consented where necessary

Issues pre V6 con’t

Many catchments reaching allocation limits but little guidance on how consents should be processed

No water shortage provisions

Limited criteria on water use efficiency

No ability to prioritise applications for the same resource

Poor understanding of water use due to limited recording of meter readings

No accounting of net-take

No government guidance, NPS, NES etc

V6 development process

Discussion document to the public 2004

V6 Notified 20 October 2006

Council Hearings Committee Decision released November 2008 – In use since this time

37 appeals to Environment Court 9 weeks hearing time - February to August 2011 Environment Court’s decision released 30 Nov 2011

No High Court appeals – Operative 10 April 2012

National Guidance

NPS – Freshwater Management Safeguard life supporting capacity Avoid & phase out over allocation Improve & maximise efficiency of allocation & use of water

NZ Energy Strategy 90% NZ’s electricity generated from renewable sources by

2025

NPS – Renewable Electricity Generation

National Guidance cont’d

Vision and Strategy for the Waikato River Establishes co-management of Waikato River (whole catchment) Addresses health and wellbeing of river Primary direction setting document for the River and its catchment Unique to this Region (at this stage)

Water measuring and reporting regulations

Hauraki Gulf Marine Park Act Applies to Waihou, Piako and Coromandel Catchments

V6 Objectives - Operative

Giving effect to the Vision and Strategy to restore and protect the health and wellbeing of the Waikato River

Availability of water for reasonably justified domestic or municipal supply

The efficient allocation and use of water

Protection of water used for the generation of electricity from renewable energy resources

Protection of Huntly Power Station

Importance of existing takes to social and economic wellbeing

V6 Objectives cont’d

Sufficient water is retained to safeguard the life supporting capacity of the water bodies

Allocation decisions need to avoid further degradation of water quality

Sets allocation limits and minimum flows

Protects aquatic life while providing for human use

Some protection of existing users, e.g. electricity generation, agriculture, domestic, industrial takes

Provides for transfer of water permits

Rules for the use of water – including efficiency

Surface Water Allocation Limits

limits set for every catchment in one table in V6 Primary allocable flow – high reliability Secondary allocable flow – lower reliability

Default allocations applied where no specifically assessed primary allocable flow set

• Allows allocation without investigating in stream needs• Range of statistics used by different councils – WRC uses Q5

Information on flows available on Council’s website

Level of cumulative allocation triggers different consent status

SW allocation regime

Amount of the Primary Allocable Flow allocated

Agriculture, 81468 m3/d, 17%

Domestic & Municipal Water Supply, 72172 m3/d, 16%

Horticulture/market gardening, 106753 m3/d, 23%

Recreation, 7585 m3/d, 2%

Other, 398 m3/d, 0%

Industry, 196577 m3/d, 42%

Ground water, 464,950 m3/d

Agriculture, 648250 m3/d, 37%

Domestic & Municipal Water Supply, 589055 m3/d, 34%

Horticulture/market gardening, 100670 m3/d, 6%

Recreation, 143285 m3/d, 1%

Other, 18455 m3/d, 1%

Industry, 369060 m3/d, 21%

Surface water, 1,739,800 m3/d

Freshwater Use In The Waikato

Changing with time

Irrigation demand

Minimum Flow% Q5

Primary Allocable flow 0-30% Q5

Secondary Allocable flow

0-30% Q5

Water harvesting when flow

exceeds median flow

Council process for setting minimum and allocable flows

Policy 1: Establish Allocable and Minimum flows for Surface Water

Policy 2: Determining the Level of Minimum Flows, Primary, Secondary and Water Harvesting AllocableFlows

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Determination of activity status for consents -

dependent on allocation level

Policy 7: How surface takes will be Classified in catchments above Table 3-5 limits

Policy 8: How surface takes will be Classified in catchments within Table 3-5 limits

Policy 9: How Surface Water Takes will be Classified – Takes for Domestic and Municipal

Policy 20: SurfaceWater Harvesting

Consent Application Assessment

Criteria

Policy 11: Consent Application Assessment Criteria – Surface water

Policy 13 : Non-complying Activities within the Waikato River Catchment above Huntly and Karapiro.

Policy 14: Non-complying Activities outside Waikato River Catchment and below Huntly with the Waikato River Catchment

Condition for consents

Policy 15: Consent Duration for the Taking of Water Policy 16: Water Take Recording and Reporting

Policy 17: Water Shortage Conditions

Policy 18: Levels of Priority to Apply During Water Shortages

Policy 21: Shared Use and Management of Water

Policy 3: Determining the Combined Level of Surface Water

Allocation Within a Catchment

Management Tools: Surface Water Take

Council Process Consent Process

Policy 19: Phasing out Exceedences of the Table 3-5 Allocable Flows

Limits as listed in Table 3-5

Council process for settingManagement Level and

Sustainable Yields

Policy 4: Establish Sustainable Yields from Groundwater

Policy 5: Determining Sustainable Yields

Determination of activity status for consents - dependent on

allocation level

Policy 10: How Groundwater Takes will be Classified

Consent Application Assessment Criteria

Policy 12: Consent Application Assessment Criteria – Groundwater

Condition for consents

Policy 15: Consent Duration for the Taking of Water Policy 16: Water Take Recording and Reporting

Policy 17: Water Shortage Conditions

Policy 18: Levels of Priority to Apply During Water Shortages

Policy 21: Shared Use and Management of Water

Management Tools: Groundwater Take

Council Process Consent Process

Implementation Ensure only the water needed is allocated – irrigation

demand guidelines / metering

Develop water shortage restriction mechanisms – review of hydrology network

Assess Council’s role in managing transfers

Set and review flow limits for surface waters

Set initial sustainable yields for aquifers

Tools: Water Allocation Calculator

Tools: Being within limits by 2030

Jane McMullan

Tools: Monitoring water use(Pressure Analysis)

Summary: Operative since April 2012 but much of it in use

since 2006. Very detailed and is leading water allocation in NZ Two broad strings to Variation 6:

Managing the physical needs of the environment e.g. Managing impacts on fish and water quality from allocation decisions

Enabling and managing the allocation of water

Main council projects linked to water allocation: Water Allocation Plan Implementation – D1003

Pressure Analysis project – S1003

Recommendation

That the report “Background to water allocation in the Waikato Region” (Doc # 2151161 dated 25 February 2014) be received for information.

Update on Consents and Monitoring Activity under Variation 6

Variation 6

V6 has provided substantive policy guidance and rule framework for water take and use consent processes since 2006• Oct 2006 Notified version• Oct 2008 Hearings committee report version• Aug 2011 End of Environment Court Hearings

version• Nov 2011 Version incorporating Environment

Court decision• March 2012 Adoption, is now Chap 3.3 Water

Allocation and Chap 3.4 Efficient Use of the WRP

Summary of current allocation

>1300 consented water takes across region (February 2014)

≈ 570 surface water ≈ 1.64 million m³/day ≈ 761 groundwater ≈ 472,000 m³/day

These consents contain terms and conditions derived from pre-V6 era through all its versions

Increasing complexity over that time

Many consents based on former more generous allocation regime, no allied use consent or conditions relating to efficient use

Consent process activity

149 take applications received 2010/2011

213 take applications received 2011/March 2012

> 1450 applications February 2014

(Majority of these for dairy shed use, but still a very significant number for extensive range of other end uses)

Some influences of Variation 6 on consent process Surface water allocation supported by allocation calculator updated

from consents database, can incorporate permitted and s14(3)(b) takes

Systematically used for every application Existing allocation plus application quantum determines consent

activity status (i.e. Controlled, Restricted, Discretionary or Non-Complying)

Allocation determined at point of take, and all downstream catchment locations

Most onerous activity throughout catchment applies Can only be determined at processing, as allocation is dynamic

(expiries, new consents both surface and groundwater, other authorised uses)

Allocation varies, greater summer than winter demand

Influences of Variation 6 on consent process (continued) Water shortage conditions apply to all surface

water take consents, may require reduction or cessation of take, or both

Interconnectivity of surface and groundwater requires close consideration (and application of the separate assessment and management criteria of both if applicable)

Some parts of region require use consent (monthly and annual water balance). Permitted activity elsewhere

Influences of Variation 6 on consent process (continued) RMA ‘adverse effect’ codified; adverse

environmental effect >minor if allocable flow exceeded/minimum flow impinged (irrespective of quantum/rate sought)

Requires definition for notification purposes within 5 working days; a complete process/work flow required, involving different council functions and roles

Some influences of Variation 6 on monitoring

Conditions now more complex, costly, extensive for consent holder and Council:

• Continuous recording of take rate and volume• Electronic facility or requirement for recording and reporting• Continuous monitoring and measurement of source water at

point of take (or water level monitoring for groundwater takes)• Daily reporting, including days when no water taken• Measuring system/device independently calibrated, minimum 5-

yearly interval• Cease take, or take throttling, provisions, may include both of

these (water shortage conditions, may be based on >1 flow site)• Telemetry, web access, links to Council’s hydrological

facilities, >120 sites now on telemetry

Allocation status Some catchments over allocated e.g. Piako, Pukekohe

streams

Primary allocation gone in some catchments e.g. Waihou

All allocation gone in parts of some catchments e.g. Upstream of Huka Falls

Waikato catchment upstream of Karapiro is over subscribed i.e. demand from existing consents plus new applications, if granted, would exceed the allocable flow; this situation has existed since 2006, bar a few days in Dec 2011 when Environment Court Decision increased primary allocable flow of the Waikato upstream of Karapiro from 3.6% Q5 (5.328m³/s) to 5% (7.4m³/s)

Resource priority Where demand exceeds supply of a finite resource,

applications require to be processed in order of receipt i.e. first in-first served. This has been the case upstream of Karapiro since 2006

Each application therefore requires separate and sequential processing to completion

Indefinite time for each process, as each subject to objections and appeals provisions (in addition to other processing events)

History of s357 RMA and Environment Court appeals suggests there may likely be more of same

Watercare application

Watercare Services Ltd application lodged December 2013, 200,000m³/day (150,000 existing)

Total 350,000 = 4.05 m³/s

Allocable flow = 18.81 m³/s

Preceding applications if granted plus WSL if granted would exceed allocable flows of the full catchment (10% Q5, or 18.81 m³/s)

Watercare application (continued)

Domestic and municipal supply do not get priority in queue but do have more favourable Discretionary activity status if have complying water Demand Management Plan

First in first served queue extends to whole Waikato Catchment (as for Piako, Pukekohe Streams and u/s Karapiro)

Implications of over allocation Non-Complying activity status for most activities, domestic and

stock drinking water require resource consent

Enhanced demand for transfer consents

Phase out by 2030 under NPSFW and Regional Plan

Via ‘passive’ means e.g. encourage harvest, voluntary reduction, catchment groups

Via regulatory means e.g. condition review, rostering, decline application

Review allocable flows via Plan Change (Sched 1 process)

Annual growth in land area consented* for irrigation in the Waikato Region

Recommendation

That the report “An update on consents and monitoring activity under Variation 6” (Doc # 2976064 dated 17 February 2014) be received for information.

Update on Farm Dairy Water Consenting under Variation 6

Background Variation 6 process identified few existing dairy

farmers held consent or aware of requirements

EC decision included rules to “grandparent” dairy shed water takes existing prior to October 2008

Two specific and preferential rules require: Application before 1 January 2015 for many Volume of water taken prior to October 2008 (cow

numbers surrogate) Exclusion of stock and riparian enhancement Leak detection mechanisms

Background

“Grandparenting” rules do not relate to: Increased water needs from herd increase after

15 October 2008 New Conversions water needs after 15 October

2008 Future increased water needs Other water use on farm (feedpad, irrigation etc)

These takes governed by same rules for all other water users

Background Approx 2600 farms estimated to require

consent

Close liaison with Dairy Sector Partners

Dairy shed water take project set up to: Raise awareness of need for consent Promote and manage receipt of applications Process applications within Statutory Requirements Develop Compliance Monitoring Strategy

Catchment Group Processing

Promote staggered receipt of processing in catchment groups

Efficient processing, therefore reducing cost

Seven catchments in total

Catchment closing dates have passed for five

Upper Waikato and Piako catchments close this year

Summary of ApplicationsCatchment Est. # dairy

farms# applications

at 14 Feb% applications

at 14 Feb

Waihou 400 268 67%Lower Waikato &

West Coast525 331 63%

Coromandel 30 24 80%Upper Waipa &

King Country180 143 79%

Lower Waipa & Raglan

435 300 69%

Upper Waikato 515 194 38%Piako &

Waitakaruru480 138 29%

Total 2565 1398 55%

Processing of Consents ~200 groundwater consents in Waihou Catchment

Cost $829.50 + GST Consent valid for 15 years Under estimated $1000 and significantly less than $1500 - $3000 historically

case for similar applications

Anticipate future catchment group processing costs similar

Other catchment groups being processed Expected to have completed more groups by this time Intent of rules simple, complexity in implementation Significant time spent interacting with farmers This year expect to complete processing significant number

A number of individual applications received

Future Catchments Upper Waikato Catchment closing date 31 March

2014 Council run drop in days in Reporoa, Putaruru, Atiamuri Letter sent to all landowners in catchment

Piako & Waitakaruru Catchment closing date 31 July 2014

Will run drop in days in Piako Catchment A letter will inform landowners

Reminder communications to all catchments From July 2014

Industry relationships Dairy sector active in raising awareness

Running own strategies Discussing with or involving Council staff Ensuring consistent messaging

Important link with conversion/increased farmers

Remains a key component in implementing these rules

Collaborative approach very successful

Forum for strengthening relationships

Summary ~2600 dairy farms require consent

Grandparenting rules in V6 for dairy shed water Does not include post 2008 increase or conversions

Applications to be made before 1 January 2015

Catchment group process resulting in significant cost saving

Ongoing collaboration with dairy sector partners remains key to ensuring a high rate of applications prior to 1 January 2015

Recommendation

That the report “An update on farm dairy water consenting under Variation 6” (Doc # 2974421 dated 24 February 2014) be received for information.