Proposed Basin Plan consultation report


review and process for adjusting Sustainable Diversion Limits



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2015 review and process for adjusting Sustainable Diversion Limits


31.Issue

Some submissions expressed strong support for the review of SDLs in 2015. However, other submissions mentioned concerns about the process for the review. Of particular concern was the process for implementing any changes to SDLs resulting from the review through an amendment to the Basin Plan. An amendment to the Basin Plan can be disallowed by Parliament. If the Parliament at that time does not agree to allow any amendments to the Basin Plan arising from the review this may result in projects being fully implemented, but SDLs not being adjusted accordingly.

The proposed Basin Plan does not compel the Government or the Parliament to accept any proposals to adjust the SDL contained in the Statutory Instrument.’



Some of these submissions suggested embedding the adjustments to SDLs within the Basin Plan more strongly to prevent this situation. One suggestion was to reduce the 2,750 GL/y reduction amount by the volume the MDBA expects can be recovered through the review and amend the Plan only if this volume is not achieved.

Some also expressed the view that the review of SDLs in 2015 prolonged the uncertainty around what the final SDLs might be in 2019. These submissions expressed concern that this uncertainty would impact on investor confidence.

Some submissions expressed doubt that additional information on which to base a review would be available by 2015.

RESPONSE

MDBA notes the support for the 2015 SDL, considering that good environmental outcomes for the Basin require consideration of environmental works and measures, river operations that optimise social, economic and environmental outcomes, and the most effective and efficient use of all environmental water. Consequently MDBA remains convinced that an opportunity to review SDLs prior to them becoming enforceable in 2019 will provide for the best possible opportunity to achieve such optimisation.

MDBA actively explored options to include in the proposed Basin Plan provisions to allow the benefits of environmental works and measures projects to be recognised without requiring a formal amendment of the Basin Plan. However, while it was found that the provisions of the Act, in particular given the likely significance of such changes, would imply a formal amendment process, MDBA is open to a workable mechanism along these lines.

A key consideration is that such a mechanism should operate on a basis whereby:



  • it allows for a decrease in SDLs only if the social and economic outcomes are at least equivalent (and no worse than) those proposed in the Basin Plan; or conversely

  • it allows for an increase in SDLs only if the environmental outcomes are at least equivalent (and no worse than) those proposed in the Basin Plan.

For example, if an SDL adjustment mechanism were in place, it would be possible to decrease the surface water SDLs to, say, a 3,200 GL/y reduction on the basis that constraints were addressed and the additional water for the environment was sourced only from further investments in more efficient infrastructure.

Similarly, the mechanism could operate so as to increase SDLs to, say, a 2,400 GL/y reduction on the basis that investment in works and measures enabled the achievement of environmental outcomes with less water.

Of course, a further possibility is that the mechanism is applied such that overall improvements are made to social-economic and environmental outcomes.

While the desire to minimise the uncertainty that might arise from including adaptive mechanisms in the proposed Basin Plan is acknowledged by MDBA it is considered that, on balance, the benefits that may be accrued from a review of SDLs would outweigh this.

MDBA considers that there is significant information available which, upon further analysis through the review of river operations already commenced by Basin states and MDBA, can be used to usefully inform the review.

32.Issue



Some submissions expressed the view that the review of SDLs in 2015 should also consider other matters in addition to those listed in section 6.06 of the proposed Basin Plan. These other matters included:

  • more-specific environmental objectives at a water resource unit level

  • consideration of how these objectives could best be met and their corresponding environmental water requirements

  • a specific implementation plan

  • specific monitoring, evaluation and adaptation plans.

RESPONSE

MDBA agrees that the review of SDLs in 2015 should be sufficiently wide ranging to capture innovative approaches to improving the efficient use of water in the Basin. Section 6.06 of the proposed Basin Plan already allows for consideration of these matters in the 2015 review. In addition to works and measures and river operational rules and practices, MDBA will consider changed methods of delivering water, new knowledge and any proposals which could advance the objectives and outcomes of the Basin Plan. MDBA may also consider any other matter which it feels is relevant.

33.Issue

Some submissions expressed a view that there should be greater clarity around MDBA’s plans for the 2015 review of SDLs, including a detailed program of future work and investment and a clear and transparent process for adjusting SDLs as a result of the review.

The review will be critical to implementing an adaptive management approach. The Plan must define what will be involved in assessing progress with water recovery and making any necessary adjustments to SDLs.’



RESPONSE

MDBA agrees with this issue and is developing a workplan in collaboration with Basin states and the Australian government.

The program of work will cover reviews of river operational practices and rules, constraints, new knowledge and the potential role of works and measures.

The 2015 SDL review will consider and assess the contribution new works and measures, changed river management and operational practices, improved methods of delivering water, new knowledge, and other proposals to advance the objectives of the Basin Plan can make towards achieving Basin Plan outcomes. A robust assessment process to evaluate the impact of any possible SDL adjustments and the Basin Plan amendment process will provide a transparent process for adjusting the SDLs as a result of the review. These issues are discussed further in the responses to issues 172 and 173.



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