Murray–Darling Basin National Partnership Agreement: milestone assessments for year ending 30 June 2013 © Commonwealth of Australia 2013 This publication is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the Commonwealth Coat of Arms, the National Water Commission logo and where otherwise stated. The full licence terms are available from http://creativecommons.org/licenses/bync/3.0/au/ Use of National Water Commission material under a Creative Commons Attribution 3.0 Australia licence requires you to attribute the work in all cases when reproducing or quoting any part of a Commission publication or other product (but not in any way that suggests that the Commonwealth or the National Water Commission endorses you or your use of the work). Please see the National Water Commission website copyright statement http://www.nwc.gov.au/copyright for further details. Other uses Enquiries regarding this licence and any other use of this document are welcome at: Communication Director National Water Commission 95 Northbourne Avenue Canberra ACT 2600 Email: bookshop@nwc.gov.au ISBN: 978-1-922136-28-2 Murray–Darling Basin National Partnership Agreement: milestone assessments for year ending 30 June 2013 November 2013 An appropriate citation for this publication is: National Water Commission 2013, Murray–Darling Basin National Partnership Agreement: milestone assessments for year ending 30 June 2013, NWC, Canberra Murray–Darling Basin National Partnership Agreement: milestone assessments for year ending 30 June 2013 2 95 Northbourne Avenue Canberra ACT 2600 T 02 6102 6000 nwc.gov.au Chair Senator the Hon Simon Birmingham Parliamentary Secretary to the Minister for the Environment Parliament House CANBERRA ACT 2600 Dear Senator Birmingham I am pleased to present the National Water Commission’s assessment against the milestones set out in Schedule A of the National Partnership agreement on Implementing Water Reform in the Murray-Darling Basin (the Agreement). The Commonwealth and signatory Basin States have agreed that the National Water Commission will assess jurisdictional performance against these milestones on an annual basis. Pursuant to section 7(1)(g) of the National Water Commission Act 2004, this assessment report has been prepared to assist the Commonwealth water minister in deciding whether to authorise payments to Basin States. The Commission received Statements of Assurance for the 2012-13 assessment period from the Australian Capital Territory, South Australia and Victoria by the due date of 31 August 2013. The Commission was also provided with supporting letters from the Department of the Environment and from the Murray-Darling Basin Authority. The Commission has conducted the required performance assessment and has found that each of the three participating jurisdictions has met all of their commitments under the Agreement for 2012-13. In accordance with Part 4 of the Agreement the Commission will also provide a copy of its annual assessment report to the relevant Basin States. Yours sincerely The Hon Karlene Maywald 31 October 2013 Murray–Darling Basin National Partnership Agreement: milestone assessments for year ending 30 June 2013 3 Contents Letter of transmission from Commission Chair 3 1 Background 6 1.1 Commission’s role 7 1.2 Assessment scope 7 1.3 Assessment approach 7 1.4 Focus of assessments 7 1.5 Additional information 8 2 Assessment for the Australian Capital Territory 9 2.1 Summary of findings 9 2.2 Bridging the gap 9 2.3 Implementation of the Constraints Management Strategy 10 2.4 Cooperation in environmental watering 10 2.5 Supply measures projects 12 3 Assessment for South Australia 13 3.1 Summary of findings 13 3.2 Bridging the gap 14 3.3 Implementation of the Constraints Management Strategy 16 3.4 Cooperation in environmental watering 16 3.5 Supply measures projects 19 4 Assessment for Victoria 21 4.1 Summary of findings 21 4.2 Bridging the gap 22 4.3 Implementation of the Constraints Management Strategy 23 4.4 Cooperation in environmental watering 24 4.5 Supply measures projects 26 Appendix 1 Ministerial letter of referral 27 Appendix 2 Extract from the NPA outlining the Commission’s role 29 Murray–Darling Basin National Partnership Agreement: milestone assessments for year ending 30 June 2013 4 Appendix 3 Schedule A to the National Partnership Agreement on Implementing Water Reform in the Murray–Darling Basin 31 Appendix 4 Statement of assurance transmission letters 35 Appendix 5 Assessment expectations 38 References 43 Abbreviations and acronyms 44 Tables Table 2.1: Summary of findings for the Australian Capital Territory 9 Table 3.1: Summary of findings for South Australia 13 Table 4.1: Summary of findings for Victoria 21 Table A5.1: Assessment expectations 38 Murray–Darling Basin National Partnership Agreement: milestone assessments for year ending 30 June 2013 5 1 Background The National Water Commission was established under the National Water Commission Act 2004 (Cwth) to assist with the implementation of the national water reform agenda. It is an independent statutory body that provides advice to the Council of Australian Governments and the Australian Government on national water issues and improved management of Australia’s water resources. On 5 June 2013, Victoria signed the Intergovernmental Agreement on Implementing Water Reform in the Murray–Darling Basin (IGA), which is an undertaking by the Australian Government and the participating Murray–Darling Basin state governments to build on existing achievements by implementing the next tranche of water reforms to further improve the health of the basin and secure a future for its communities. The objective of the IGA is to ‘ensure that the Commonwealth led Basin water reforms, including the Basin Plan, are implemented in a cost effective manner to support the national interest of improving river and wetland health, putting water use on a sustainable footing, enhancing irrigation productivity, providing water for critical human needs, and providing farmers and communities with more confidence to plan for a future with less water.’ Subsequently, the Australian Capital Territory (ACT) and South Australia also signed the IGA on 6 and 27 June respectively. Alongside the Water Act, the IGA furthers the objectives of the National Water Initiative (NWI) for the Murray–Darling Basin (NWI clause 23). Part 7 of the IGA commits the Australian Government to providing support to the basin states via the National Partnership Agreement on Implementing Water Reform in the Murray–Darling Basin (the NPA). The NPA sets out in clause 10 that: ‘The objectives and outcomes of this Agreement will be achieved by the Parties fully implementing the requirements of the Basin Plan and the Intergovernmental Agreement on Implementing Water Reform in the Murray–Darling Basin, in particular by Basin States: a) enabling the Commonwealth to meet its commitment to ‘bridge the gap’ between baseline diversion limits and SDLs [sustainable diversion limits], including by removing barriers to trade that are inconsistent with the Basin Plan, processing water entitlement trade applications within agreed timeframes, unbundling water entitlements from land where the benefits exceed the costs, and agreeing to enable groundwater and overland flow recovery through market-based approaches; b) cooperatively identifying and agreeing on initiatives to be considered by the Murray–Darling Basin Authority under the Surface Water SDL adjustment mechanism; c) implementing the Basin Plan, including preparing Water Resource Plans consistent with Basin Plan requirements to provide certainty for water users; d) ensuring the characteristics of licensed entitlements held for environmental use will not be enhanced or diminished, relative to like entitlements held and used for other purposes, except as otherwise agreed between the Commonwealth and the relevant State(s) to facilitate improved environmental watering; and e) working collaboratively with the Commonwealth and each other in exercising their environmental watering and planning responsibilities in accordance with the Basin Plan Environmental Watering Plan, and have regard to the Basin annual environmental watering priorities, as prepared by the Murray–Darling Basin Authority.’ Murray–Darling Basin National Partnership Agreement: milestone assessments for year ending 30 June 2013 6 As part of their responsibilities under the NPA, each basin state has committed to implementing the agreement in accordance with milestones set out at Schedule A to the agreement, and reporting on milestone progress. 1.1 Commission’s role The Commission has been tasked with assessing jurisdictional performance against milestones in the NPA (see Appendix 1). Our role is described in clause 14 to the NPA: to ‘assess the Basin States’ annual progress reports in accordance with Part 4—Performance Monitoring and Reporting’ (see Appendix 2). Using the statement of assurance and any supporting documentation provided by each participating basin state, we have assessed the state’s performance against the milestones set out in Schedule A to the NPA (see Appendix 3). This assessment report assists the Australian Minister for Water in relation to basin state performance against milestones outlined in Schedule A for 2012–13, the extent to which they have been met and, where the state has not met a performance milestone, any steps and activities that it took to meet the milestone. The Minister will decide whether payment should be made to a basin state under the NPA. 1.2 Assessment scope Our assessment is limited to the actions listed in Schedule A of the NPA. It does not include advice on water reform policy, as our role in relation to the NPA is to assess performance only. The assessment is also limited to those jurisdictions that have signed the NPA (the ACT, South Australia and Victoria). 1.3 Assessment approach In conducting our assessment, we have engaged and consulted with Australian Government agencies, including the Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC) and the Murray–Darling Basin Authority (MDBA), and the participating basin states. Each state was required to provide a reform report to the Commission by 31 August (Appendix 4). To facilitate a shared understanding of the assessment approach, we provided an assessment framework outlining our expectations to each state before it prepared a statement of assurance (Appendix 5). The information provided in the statements of assurance and publicly available material was compared with our expectations and assessment criteria. DSEWPaC and state agencies were given an opportunity to comment and provide feedback before we finalised the report. 1.4 Focus of assessments Our assessment addresses milestone progress made by the basin states during the reporting period (1 July 2012 to 30 June 2013). Where basin state reform reports identified actions not yet complete, we noted progress made on those actions during the assessment period. Murray–Darling Basin National Partnership Agreement: milestone assessments for year ending 30 June 2013 7 1.5 Additional information In correspondence dated 30 August 2013, the MDBA advised us that there are no instances that it is aware of in which a basin state has not met commitments as outlined in Appendix 5. Similarly, DSEWPaC has stated that, to the extent that the department and the Commonwealth Environmental Water Office have access to information on particular milestones, no specific instances have been identified in which particular milestone commitments were not met. Murray–Darling Basin National Partnership Agreement: milestone assessments for year ending 30 June 2013 8 2 Assessment for the Australian Capital Territory 2.1 Summary of findings Findings for the ACT are summarised below in the order they appear in the agreement. Full findings and details of the assessment follow in subsequent sections of this chapter. Table 2.1: Summary of findings for the Australian Capital Territory National Partnership commitments Assessment summary Finding 2) The territory has supported the Commonwealth in bridging the gap Not applicable to the ACT Not applicable 3) Following publication of the Constraints Management Strategy by the MDBA, confirmation that any actions taken by the territory to remove or address constraints are consistent with the measures agreed through the interjurisdictional governance procedure for the SDL adjustment mechanism Not applicable to the ACT Not applicable 4) The territory has cooperated in arrangements for Basin Plan environmental watering The characteristics of licensed entitlements held for environmental water use in the ACT have not been enhanced or diminished relative to like entitlements held and used for other purposes. Commitment met 5) For New South Wales, Victoria and South Australia only, the state has provided a brief description of supply measure projects for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism Not applicable to the ACT Not applicable 2.2 Bridging the gap Expectations The Commission expected to see that the ACT has supported the Commonwealth in bridging the gap and the intent of the commitment had been met. Specifically, we expected to see that: Murray–Darling Basin National Partnership Agreement: milestone assessments for year ending 30 June 2013 9 no restrictions were introduced on the trading of water access entitlements, except where consistent with the Basin Plan water trading rules no action has been taken to impede Commonwealth measures to acquire water for environmental purposes applications for water entitlement and allocation trades to which the Commonwealth was a party were processed consistent with the agreed service standards relating to trade processing times for state approval agencies, supported by a list of trades undertaken and the times taken to process those trades regulated systems have entitlements that are consistent with the provisions of clauses 28–32 of the NWI in the timeframe agreed in the IGA. Findings 2.3 Not applicable to the ACT. Implementation of the Constraints Management Strategy Expectations The item was not assessable in 2013. Schedule A, item 3, requires that, following publication of the Constraints Management Strategy by the MDBA, any actions taken by the territory to remove or address constraints are to be consistent with the measures agreed through the interjurisdictional governance procedure for the SDL adjustment mechanism. The Constraints Management Strategy is due to be published by the MDBA by the end of November 2013. 2.4 Cooperation in environmental watering Expectations The Commission expected to see that the ACT has supported the Commonwealth in bridging the gap and that the intent of the commitment had been met. Specifically, the Commission expected to see that: characteristics of licensed entitlements held for environmental use have not been enhanced or diminished relative to like entitlements held and used for other purposes where feasible and agreed by the ACT, and where associated third-party impacts have been considered, measures have been implemented to facilitate the use of environmental water by protecting environmental water in-stream and on land through: - the delivery of held environmental water in-stream though arrangements such as water shepherding to facilitate environmental flows - further use of environmental water at multiple locations along the river, such as through return flow provisions Murray–Darling Basin National Partnership Agreement: 10 milestone assessments for year ending 30 June 2013 the MDBA has been provided with annual environmental watering priorities, consistent with the Basin Plan, including: - provision of annual environmental watering priorities, consistent with the Basin Plan - undertake environmental watering consistent with the Environmental Watering Plan - reasons for any environmental watering that was not in accordance with the annual basin environmental watering priorities environmental watering in regulated catchments has occurred having regard to the views of local communities and persons materially affected by the management of environmental water 12 months after the MDBA has made the Basin-wide Environmental Watering Strategy (due in 2014), or within another timeframe agreed between the MDBA and the ACT, long-term environmental watering plans for surface water resource plan areas have been developed consistent with the requirements of the Basin Plan (i.e. by 2015). Findings The ACT has met this commitment. The characteristics of licensed entitlements held for environmental water use in the ACT have not been enhanced or diminished relative to like entitlements held and used for other purposes. Characteristics of licensed entitlements The ACT has not taken any action to alter the characteristics of licensed entitlements held for environmental use. The territory’s statement of assurance confirmed that environmental watering from streams occurs before water is diverted for consumptive use (ACT Government 2013). The ACT has implemented a legislatively based system of water access entitlements that has the characteristics required under the NWI. The Environmental flow guidelines are a disallowable instrument under territory legislation and were revised and reissued in April 2013. Measures implemented to facilitate the use of environmental water The item was not assessable in 2013. Schedule A, item 4(b), requires that, where feasible and agreed by the relevant basin state, and where associated third-party impacts have been considered, measures will be implemented to facilitate the use of environmental water by protecting environmental water in-stream and on land through: • the delivery of held environmental water in-stream though arrangements such as water shepherding to facilitate environmental flows • further use of environmental water at multiple locations along the river, such as through return flow provisions. As no agreement has been made, there is no assessment in 2013. Annual environmental watering priorities The ACT is not required to provide annual environmental watering priorities to the MDBA. Murray–Darling Basin National Partnership Agreement: 11 milestone assessments for year ending 30 June 2013 Consultation on environmental watering The ACT’s statement of assurance notes that the territory had little involvement in Basin Plan environmental watering in 2012–13, so this milestone is not applicable in 2013. Long-term environmental watering plans for surface water resource plan areas Schedule A, item 4(f), requires that 12 months after the MDBA has made the Basin-wide Environmental Watering Strategy, or within another timeframe agreed between the MDBA and the basin state, long-term environmental watering plans for surface water resource plan areas have been developed consistent with the requirements of the Basin Plan. The Environmental Watering Strategy is due in 2015, so there is no assessment in 2013. 2.5 Supply measures projects Expectations For New South Wales, Victoria and South Australia only, the Commission expected to see that the state has provided the Commonwealth with a brief description of supply measure projects for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism. Findings Not applicable to the ACT. Murray–Darling Basin National Partnership Agreement: 12 milestone assessments for year ending 30 June 2013 3 Assessment for South Australia 3.1 Summary of findings Findings for South Australia are summarised below in the order they appear in the agreement. Full findings and details of the assessment follow in subsequent sections of this chapter. Table 3.1: Summary of findings for South Australia National Partnership commitments Assessment summary Finding 2) The state has supported the Commonwealth in bridging the gap South Australia did not introduce any restrictions or suspensions on the trading of water access entitlements. Commitment met It did not take any action to impede Commonwealth measures to acquire water for environmental purposes. Applications for water entitlement and allocation trades were processed consistent with the agreed service standards for trade processing times. The River Murray Prescribed Water Course is the only regulated surface water system within the South Australian Murray–Darling Basin. Water access entitlements for this system have been unbundled in line with clauses 28 to 32 of the NWI since 2009. 3) Following publication of the Constraints Management Strategy by the MDBA, confirmation that any actions taken by the state to remove or address constraints are consistent with the measures agreed through the interjurisdictional governance procedure for the SDL adjustment mechanism Not assessed Not assessable in 2013 4) The state has cooperated in arrangements for Basin Plan environmental watering Commitment met South Australia did not enhance or diminish licence entitlements held for environmental use relative to like entitlements held and used for other purposes during 2012– 13. Murray–Darling Basin National Partnership Agreement: 13 milestone assessments for year ending 30 June 2013 5) For New South Wales, Victoria and South Australia only, the state has provided a brief description of supply measure projects for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism. 3.2 South Australia submitted its annual watering priorities for the River Murray, SA Murray Region and Eastern Mount Lofty Ranges water resource plan areas to the MDBA on 30 May 2013. South Australia consistently applied the Basin Plan’s Principles to be applied in environmental watering to environmental water received from the Commonwealth Environmental Water Holder, the Living Murray initiative and South Australian Government holdings during 2012–13. Environmental watering in regulated catchments has occurred having regard to the views of local communities and persons materially affected by the management of environmental water. South Australia has provided the Commonwealth with a brief description of supply measure projects for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism. Commitment met Bridging the gap Expectations The Commission expected to see that South Australia has supported the Commonwealth in bridging the gap and the intent of the commitment had been met. Specifically, we expected to see that: no restrictions were introduced on the trading of water access entitlements, except where consistent with the Basin Plan water trading rules no action has been taken to impede Commonwealth measures to acquire water for environmental purposes applications for water entitlement and allocation trades to which the Commonwealth was a party were processed consistent with the agreed service standards for trade processing times for state approval agencies, supported by a list of trades undertaken and the times taken to process those trades regulated systems have entitlements that are consistent with the provisions of clauses 28–32 of the NWI in the timeframe agreed in the IGA. Murray–Darling Basin National Partnership Agreement: 14 milestone assessments for year ending 30 June 2013 Findings South Australia has met this commitment. South Australia did not introduce any restrictions or suspensions on the trading of water access entitlements. It did not take any action to impede Commonwealth measures to acquire water for environmental purposes Applications for water entitlement and allocation trades were processed consistent with the agreed service standards for trade processing times. The River Murray Prescribed Water Course is the only regulated surface water system within the South Australian Murray–Darling Basin. Water access entitlements for this system have been unbundled in line with clauses 28 to 32 of the NWI since 2009. Restrictions on trade South Australia’s statement of assurance stated that in 2012–13 South Australia released a policy statement signalling its preparedness to respond to interstate River Murray water allocation trade suspensions or other actions imposed by the upstream states that might threaten the South Australian River Murray Entitlement Flow for 2013–2014 (SA Govt 2013). The policy was not required to be actioned in 2012–13, and no suspension or volumetric limit was imposed by South Australia on any aspect of the interstate water allocation market. The MDBA advised that basin states are not required to inform it of trade restrictions until July 2014 (MDBA letter dated 30 August 2013). As the Basin Plan water trading rules do not take effect until 1 July 2014, the MDBA is not actively considering restrictions that may not be allowable under those rules. Commonwealth measures to acquire water South Australia stated in its statement of assurance that it did not take any action to impede Commonwealth measures to acquire water for environmental purposes during 2012–13 (SA Govt 2013). Murray–Darling Basin National Partnership Agreement: 15 milestone assessments for year ending 30 June 2013 Processing times for trades South Australia provided the processing times for each water entitlement and allocation trade completed during the reporting period, which demonstrated that it had met the Commonwealth standards for trade processing times (SA Govt 2013, attachments 2 and 3). South Australia recorded 100% compliance against the service standards for allocation trades to the Commonwealth. It recorded 100% compliance against the service standards for registrations of entitlement trades and 98% performance against the standard for the approval of entitlement trades to which the Commonwealth was a party. South Australia noted that, in two cases in which trades did not meet the standards, there was a delay of approximately six weeks in gaining consent from the interested party. This period of time is ordinarily counted as being out of South Australia’s control. When these cases are subtracted, South Australia is 100% compliant with the required standard. NWI-consistent entitlements The River Murray Prescribed Water Course is the only regulated surface water system within the South Australian Murray–Darling Basin. Water access entitlements for this system have been unbundled in line with clauses 28–32 of the NWI since 2009. 3.3 Implementation of the Constraints Management Strategy Expectations The item was not assessable in 2013. Schedule A, item 3, requires that, following publication of the Constraints Management Strategy by the MDBA, any actions taken by the state to remove or address constraints are to be consistent with the measures agreed through the interjurisdictional governance procedure for the SDL adjustment mechanism. The Constraints Management Strategy is due to be published by the MDBA by the end of November 2013. 3.4 Cooperation in environmental watering Expectations The Commission expected to see that South Australia has supported the Commonwealth in bridging the gap and that the intent of the commitment had been met. Specifically, the Commission expected to see that: characteristics of licensed entitlements held for environmental use have not been enhanced or diminished relative to like entitlements held and used for other purposes where feasible and agreed by South Australia, and where associated third-party impacts have been considered, measures have been implemented to facilitate the use of environmental water by protecting environmental water in-stream and on land through: - the delivery of held environmental water in-stream though arrangements such as water shepherding to facilitate environmental flows - further use of environmental water at multiple locations along the river, such as through return flow provisions Murray–Darling Basin National Partnership Agreement: 16 milestone assessments for year ending 30 June 2013 the MDBA has been provided with annual environmental watering priorities consistent with the Basin Plan, including: - provision of annual environmental watering priorities, consistent with the Basin Plan - undertake environmental watering consistent with the Environmental Watering Plan - that a statement of reasons has been provided to the MDBA for any environmental watering that was not in accordance with the annual basin environmental watering priorities environmental watering in regulated catchments has occurred having regard to the views of local communities and persons materially affected by the management of environmental water 12 months after the MDBA has made the Basin-wide Environmental Watering Strategy (due in 2014), or within another timeframe agreed between the MDBA and the ACT, long-term environmental watering plans for surface water resource plan areas have been developed consistent with the requirements of the Basin Plan (i.e. by 2015). Findings South Australia has met this commitment. South Australia did not enhance or diminish licence entitlements held for environmental use relative to like entitlements held and used for other purposes during 2012–13. The state submitted its annual watering priorities for the River Murray, SA Murray Region and Eastern Mount Lofty Ranges water resource plan areas to the MDBA on 30 May 2013. South Australia consistently applied the Basin Plan’s Principles to be applied in environmental watering to environmental water received from the Commonwealth Environmental Water Holder (CEWH), the Living Murray initiative and South Australian holdings during 2012–13. Environmental watering in regulated catchments has occurred having regard to the views of local communities and persons materially affected by the management of environmental water. Characteristics of licensed entitlements South Australia’s statement of assurance stated that characteristics of licence entitlements held for environmental use were not enhanced or diminished relative to like entitlements held and used for other purposes during 2012–13 (SA Govt 2013). Measures implemented to facilitate the use of environmental water The item was not assessable in 2013. Schedule A, item 4(b), requires that, where feasible and agreed by the relevant basin state, and where associated third-party impacts have been considered, measures will be implemented to facilitate the use of environmental water by protecting environmental water in-stream and on land through: • the delivery of held environmental water in-stream though arrangements such as water shepherding to facilitate environmental flows • further use of environmental water at multiple locations along the river, such as through return flow provisions. As no agreement has been made, there is no assessment in 2013. Murray–Darling Basin National Partnership Agreement: 17 milestone assessments for year ending 30 June 2013 Annual environmental watering priorities Consistent with this requirement, South Australia submitted its annual environmental watering priorities for the River Murray, SA Murray Region and Eastern Mount Lofty Ranges water resource plan areas to the MDBA on 30 May 2013 (SA Govt 2013). The annual priorities for the River Murray Water Resource Plan area are available on the website of the Department of Environment, Water and Natural Resources.1 The South Australian River Murray Water Resource Plan area received environmental water from the CEWH, the Living Murray initiative and South Australian holdings during 2012–13. South Australia stated in its statement of assurance that environmental watering was undertaken consistently with the Principles to be applied in environmental watering (SA Govt 2013). South Australia stated that, for planned environmental water, the Water Allocation Plan for the River Murray Prescribed Water Course provides for the taking and use of water for environmental purposes. It noted that this plan will be reviewed to ensure that its provisions are consistent with the Basin Plan, including the Environmental Watering Plan. There is no held water in the Eastern Mount Lofty Ranges Water Resource Plan area. South Australia advised in its statement of assurance that the diffuse, widely distributed nature of the environmental assets and water capture means that the most useful and practical approach to providing water to the environment is to set water taking limits and rules that result in a flow pattern that provides an adequate environmental water regime over space and time. These rules are set through a draft water allocation plan that was developed before the Basin Plan came into effect in November 2012. Once adopted, the Eastern Mount Lofty Ranges Water Allocation Plan will be listed as a transitional water resource plan under the Water Act 2007. South Australia advised that it will review this water allocation plan as part of developing a water resource plan to ensure that its provisions are consistent with the Basin Plan, including the Environmental Water Plan. Consultation on environmental watering The River Murray Prescribed Water Course is the only regulated surface water system within the South Australia Murray–Darling Basin. The 2012–13 Annual Environmental Watering Plan for the South Australian River Murray sets out the environmental water requirements for 2012–13, including the timing, volumes and priorities for environmental watering (DEWNR 2012). The South Australian statement of assurance describes consultation undertaken on the annual environmental watering plan, including with local communities through: • the South Australian Murray–Darling Basin Natural Resources Management Board • the River Murray Advisory Committee • local action planning groups through the Community Action for the Rural Environment committee • the Community Advisory Panel for the Coorong, Lower Lakes and Murray Mouth • the Nature Foundation SA • the Ngarrindjeri Regional Authority, including the Mannum Aboriginal Community Association Incorporated • the First Peoples of the River Murray and Mallee Region. 1 See the section titled ‘River Murray Annual Environmental Watering Plans’ at http://www.environment.sa.gov.au/about-us/plans. Murray–Darling Basin National Partnership Agreement: 18 milestone assessments for year ending 30 June 2013 The South Australian Murray–Darling Basin Natural Resources Management Board, the River Murray Advisory Committee and the Community Advisory Panel for the Coorong, Lower Lakes and Murray Mouth include members who are landholders in the River Murray system and who represent the interests of people materially affect by water management issues, including the delivery of environmental water. South Australia advised that it is currently doing further work to identify the landholders who could be affected by high-flow events in the future through a high flows augmentation project and by working with the MDBA on the development of the Constraints Management Strategy. South Australia advised that during 2012–13, in addition to the consultations described above, it also worked collaboratively with non-government organisations, local action committees, community groups and landholders on environmental water delivery and site management issues. Examples included: • working with the Nature Foundation SA to identify suitable sites for the delivery of environmental water that is managed on behalf of the CEWH • working with local action planning committees to undertake community monitoring of 30 managed wetlands • working with landholders on the protection and restoration of wetlands on private land, including the installation of flow management structures and weed control. Long-term environmental watering plans for surface water resource plan areas Schedule A, item 4(f), requires that 12 months after the MDBA has made the Basin-wide Environmental Watering Strategy, or within another timeframe agreed between the MDBA and the basin state, longterm environmental watering plans for surface water resource plan areas have been developed consistent with the requirements of the Basin Plan. The Environmental Watering Strategy is due in 2015, so there is no assessment in 2013. 3.5 Supply measures projects Expectations For New South Wales, Victoria and South Australia only, the Commission expected to see that the state has provided the Commonwealth with a brief description of supply measure projects for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism. Findings South Australia has met this commitment. South Australia has provided the Commonwealth with a brief description of supply measure projects for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism. Local Ideas for Local Wetlands South Australia anticipates that the environmental works and measures from this project will improve environmental outcomes at six wetlands within the South Australian River Murray corridor. The project has an estimated capital expenditure of $6.4 million. Pre-feasibility investigations are complete, and a feasibility study is being prepared for Phase 1 of the project (SA Govt 2013). Murray–Darling Basin National Partnership Agreement: 19 milestone assessments for year ending 30 June 2013 The six selected project proposals identified as being of highest priority to the community and with the greatest potential to contribute to the outcomes of the Basin Plan were for: • Bookmark Creek and Wetlands • Martin Bend Wetlands • Tolderol Wetland • Teringie Wetland • Woltowa Wetland • Hindmarsh Island Wetland Complex. Further details on these projects are publicly available on the Natural Resources SA Murray–Darling Basin website.2 Chowilla Floodplain Regulator This project involves the construction of a major environmental regulator on Chowilla Creek and a range of complementary works. South Australia anticipates that the regulator will allow the management of flow to enable flooding across the floodplain under relatively low river flow conditions. It incorporates fish passages for large-, medium- and small-bodied native fish. Smaller ancillary structures on Woolshed Creek and Chowilla Island, along with blocking banks, and a channel to the Chowilla Island Loop Wetland will help to manage flows while the regulator is operating. Construction of the Chowilla Creek environmental regulator began in January 2010 and has included funding from the Living Murray program (MDBA 2012). Riverine Recovery Project South Australia anticipates that this project has potential to generate wetland evaporative savings through a range of activities that restore wetlands along the South Australian Murray River, including reintroducing wetting and drying cycles with the aim of achieving improved wetland habitats and water quality. It comprises a number of on-ground elements to improve the health of the river, floodplains and wetlands, including work on: • early on-ground works • wetlands • Pike floodplain • Katfish Reach (Katarapko floodplain) • weir pool manipulation. The project aims to return environmental water savings to the Commonwealth for environmental purposes in the southern connected basin (SA Govt 2012). Stage 1 of the project is funded as a South Australian State Priority Project. However, funding has not yet been secured for Stage 2 and is subject to the development of a business case, which is due to be completed in June 2014. 2 http://www.naturalresources.sa.gov.au/samurraydarlingbasin/projects/environmental-works-andmeasures. Murray–Darling Basin National Partnership Agreement: 20 milestone assessments for year ending 30 June 2013 4 Assessment for Victoria 4.1 Summary of findings Findings for Victoria are summarised below in the order they appear in the agreement. Full findings and details of the assessment follow in subsequent sections of this chapter. Table 4.1: Summary of findings for Victoria National Partnership commitments Assessment summary Finding 2) The state has supported the Commonwealth in bridging the gap Victoria did not introduce any restrictions or suspensions on the trading of water access entitlements. Commitment met It did not take any action to impede Commonwealth measures to acquire water for environmental purposes. Applications for water entitlement and allocation trades were processed consistent with the agreed service standards for trade processing times. Victorian entitlements in regulated surface water systems are largely consistent with the provisions of NWI clauses 28–32, with two exceptions (detailed in Section 4.2). 3) Following publication of the Constraints Management Strategy by the MDBA, confirmation that any actions taken by the state to remove or address constraints are consistent with the measures agreed through the interjurisdictional governance procedure for the SDL adjustment mechanism Not assessed. Not assessable in 2013 4) The state has cooperated in arrangements for Basin Plan environmental watering The characteristics of licensed entitlements held for environmental water use in Victoria have not been enhanced or diminished relative to like entitlements held and used for other purposes. Commitment met Victoria has provided annual environmental watering priorities, Murray–Darling Basin National Partnership Agreement: 21 milestone assessments for year ending 30 June 2013 consistent with the Basin Plan, to the Authority. 5) For New South Wales, Victoria and South Australia only, the state has provided a brief description of supply measure projects for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism. 4.2 Environmental watering in regulated catchments has occurred having regard to the views of local communities and persons materially affected by the management of environmental water. Victoria has provided the Commonwealth with a brief description of supply measure projects for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism. Commitment met Bridging the gap Expectations The Commission expected to see that Victoria has supported the Commonwealth in bridging the gap and that the intent of the commitment had been met. Specifically, we expected to see that: no restrictions were introduced on the trading of water access entitlements, except where consistent with the Basin Plan water trading rules no action has been taken to impede Commonwealth measures to acquire water for environmental purposes applications for water entitlement and allocation trades to which the Commonwealth was a party were processed consistent with the agreed service standards for trade processing times for state approval agencies, supported by a list of trades and the times taken to process those trades regulated systems have entitlements that are consistent with the provisions of clauses 28–32 of the NWI in the timeframe agreed in the IGA. Findings Victoria has met this commitment. Victoria did not introduce any restrictions or suspensions on the trading of water access entitlements. It did not take any action to impede Commonwealth measures to acquire water for environmental purposes. Applications for water entitlement and allocation trades were processed consistent with the agreed service standards for trade processing times. Murray–Darling Basin National Partnership Agreement: 22 milestone assessments for year ending 30 June 2013 Victorian entitlements in regulated surface water systems are largely consistent with the provisions of clauses 28–32 of the NWI, with the exception of the Coliban and Wimmera systems. Restrictions on trade The MDBA advised that basin states are not required to inform it of trade restrictions until July 2014 (MDBA letter dated 30 August 2013). As the Basin Plan water trading rules do not take effect until 1 July 2014, the MDBA is not actively considering restrictions that may not be allowable under those rules. Victoria’s statement of assurance stated that, in the period since the approval of the Basin Plan on 22 November 2012, it did not introduce any restrictions or suspensions on the trading of water access entitlements (Vic. Govt 2013). Commonwealth measures to acquire water Since the approval of the Basin Plan on 22 November 2012, Victoria has not taken any action to impede Commonwealth measures to acquire water for environmental purposes (Vic. Govt 2013). Processing times for trades Victoria provided the processing times for water entitlement and allocation trades completed during 2012–13, which demonstrated that they had met the standards for trade processing times. Victoria recorded 100% compliance against the service standards for allocation trades and for water share transfers from 23 November 2012 to 30 June 2013 (Vic. Govt 2013). NWI-consistent entitlements Victorian entitlements in regulated surface water systems are largely consistent with the provisions of clauses 28–32 of the NWI, with the exception of the Coliban and Wimmera systems. Victoria’s statement of assurance lists the Murray, Ovens, Goulburn, Broken, Campaspe and Loddon regulated surface water systems as consistent with the provisions. In the Coliban system, entitlements are held by individuals and companies in the form of take-and-use licences under section 51 of the Victorian Water Act 1989. The licences are tradeable. Victoria advise that the Coliban regulated water system is relatively small and is isolated. It is currently being remodelled and there is no plan to unbundle entitlements. In contrast, the entitlement structure in the Wimmera system is undergoing a review that will include an assessment of whether the benefits of unbundling exceed its costs. The Wimmera system mainly supplies small customers of Grampians Wimmera Mallee Water, which holds the primary rights on behalf of its customers. 4.3 Implementation of the Constraints Management Strategy Expectations The item was not assessable in 2013. Schedule A, item 3, requires that, following publication of the Constraints Management Strategy by the MDBA, any actions taken by the state to remove or address constraints are to be consistent with the measures agreed through the interjurisdictional governance procedure for the SDL adjustment mechanism. The Constraints Management Strategy is due to be published by the MDBA by the end of November 2013. Murray–Darling Basin National Partnership Agreement: 23 milestone assessments for year ending 30 June 2013 4.4 Cooperation in environmental watering Expectations The Commission expected to see that Victoria has supported the Commonwealth in bridging the gap and that the intent of the commitment had been met. Specifically, the Commission expected to see that: characteristics of licensed entitlements held for environmental use have not been enhanced or diminished relative to like entitlements held and used for other purposes where feasible and agreed by Victoria, and where associated third-party impacts have been considered, measures have been implemented to facilitate the use of environmental water by protecting environmental water in-stream and on land through: - the delivery of held environmental water in-stream though arrangements such as water shepherding to facilitate environmental flows - further use of environmental water at multiple locations along the river, such as through return flow provisions the MDBA has been provided with annual environmental watering priorities, consistent with the Basin Plan, including: - provision of annual environmental watering priorities, consistent with the Basin Plan - undertake environmental watering consistent with the Environmental Watering Plan - that a statement of reasons has been provided to the MDBA for any environmental watering that was not in accordance with the annual basin environmental watering priorities environmental watering in regulated catchments has occurred having regard to the views of local communities and persons materially affected by the management of environmental water 12 months after the MDBA has made the Basin-wide Environmental Watering Strategy (due in 2014), or within another timeframe agreed between the MDBA and the ACT, long-term environmental watering plans for surface water resource plan areas have been developed consistent with the requirements of the Basin Plan (i.e. by 2015). Findings Victoria has met this commitment. The characteristics of licensed entitlements held for environmental water use in Victoria have not been enhanced or diminished relative to like entitlements held and used for other purposes. Victoria has provided annual environmental watering priorities, consistent with the Basin Plan, to the MDBA. Victoria consistently applied the Basin Plan’s Principles to be applied in environmental watering to environmental water received from the CEWH, the Living Murray initiative and Victorian holdings during 2012–13. Environmental watering in regulated catchments has occurred having regard to the views of local communities and persons materially affected by the management of environmental water. Murray–Darling Basin National Partnership Agreement: 24 milestone assessments for year ending 30 June 2013 Characteristics of licensed entitlements During 2012–13, Victoria did not take any action to alter the characteristics of licensed entitlements held for environmental use (Vic. Govt 2013). Victoria’s statement of assurance confirmed that characteristics of licence entitlements held for environmental water use were not enhanced or diminished relative to like entitlements held and used for other purposes during the period since the approval of the Basin Plan on 22 November 2012. Measures implemented to facilitate the use of environmental water The item was not assessable in 2013. Schedule A, item 4(b), requires that, where feasible and agreed by the relevant basin state, and where associated third-party impacts have been considered, measures will be implemented to facilitate the use of environmental water by protecting environmental water in-stream and on land through: • the delivery of held environmental water in-stream though arrangements such as water shepherding to facilitate environmental flows • further use of environmental water at multiple locations along the river, such as through return flow provisions. As no agreement was made, there is no assessment in 2013. Annual environmental watering priorities Victoria’s statement of assurance states that the MDBA has been provided with annual environmental watering priorities, consistent with the Basin Plan, including the Environmental Watering Plan’s Principles to be applied to environmental watering (Vic. Govt 2013). The 2013–14 seasonal watering plan of the Victorian Environmental Water Holder has also been made publicly available at its website (VEWH 2013).3 Victoria stated in its statement of assurance that environmental watering was undertaken consistently with the Principles to be applied in environmental watering (Vic. Govt 2013). Consultation on environmental watering Victoria’s statement of assurance stated that environmental watering advisory groups or equivalent processes were used in 2012–13 by northern Victorian catchment management authorities to provide input into environmental water planning and implementation processes (Vic. Govt 2013). The annual watering plan of the Victorian Environmental Water Holder confirms that key stakeholders with an interest in environmental watering in the relevant regulated catchments were consulted in the development of annual environmental watering priorities, including Goulburn–Murray Water and the MDBA (River Operations) (VEWH 2012). Long-term environmental watering plans for surface water resource plan areas Schedule A, item 4(f), requires that 12 months after the MDBA has made the Basin-wide Environmental Watering Strategy, or within another timeframe agreed between the authority and the basin state, long-term environmental watering plans for surface water resource plan areas have been developed consistent with the requirements of the Basin Plan. The Environmental Watering Strategy is due in 2015, so there is no assessment in 2013. 3 www.vewh.gov.au. Murray–Darling Basin National Partnership Agreement: 25 milestone assessments for year ending 30 June 2013 4.5 Supply measures projects Expectations For New South Wales, Victoria and South Australia only, the Commission expected to see that the state has provided the Commonwealth with a brief description of supply measure projects for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism. Findings Victoria has met this commitment. Victoria has provided the Commonwealth with a brief description of supply measure projects for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism. Victoria’s statement of assurance stated that 12 supply measure projects have been identified for consideration under the adjustment offset mechanism (Vic. Govt 2013). The statement also provided the details of the first project to be considered by the SDL Adjustment Assessment Committee in July 2013 (the Belsar Yungera Feasibility Study). The Belsar Yungera Floodplain Management Project is a significant supply measure project on the River Murray near the township of Robinvale in north-west Victoria. The proposed infrastructure works are water retaining and regulating structures that aim to take advantage of the landscape and existing infrastructure to provide extended flooding areas and durations. Victoria anticipates that the project will provide more efficient delivery and use of water to facilitate significantly larger flooding events on the floodplain using less water (Vic. Govt 2013). Further information on the Belsar and Yungera Island Floodplain project is publicly available in the feasibility and design study undertaken by GHD (GHD 2012). Murray–Darling Basin National Partnership Agreement: 26 milestone assessments for year ending 30 June 2013 Appendix 1 Ministerial letter of referral Murray–Darling Basin National Partnership Agreement: 27 milestone assessments for year ending 30 June 2013 Murray–Darling Basin National Partnership Agreement: 28 milestone assessments for year ending 30 June 2013 Appendix 2 Extract from the NPA outlining the Commission’s role 19) The Head of the Basin State water agency will submit an annual Statement of Assurance to the NWC (the Assessor) by 31 August (or the first working day thereafter) each year, covering the period of the previous financial year. 20) The Statement of Assurance will: a) state which milestones applicable to that reporting year have been achieved, as outlined in Schedule A; and b) state which milestones applicable to that reporting year have not been achieved, as outlined in Schedule A, and the reason/s for non-achievement, and any steps and activities that were undertaken by the Basin State in an effort to meet the milestone; and c) state which milestones identified as not achieved in preceding years have been achieved; and d) be accompanied by any additional supporting documentation relating to Milestones 2 to 9 in Schedule A that a state deems to be relevant to meeting a milestone; and e) be accompanied by a brief description of supply measure projects for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism, as referred to in Schedule A. This only applies to New South Wales, Victoria and South Australia for the statements of assurance submitted in 2013, 2014 and 2015. 21) In relation to the initial (2013–14) contribution for supply measures, by 31 August 2013 (or first working day thereafter), New South Wales, Victoria and South Australia will provide to the Commonwealth Department with responsibility for water a brief description of supply measure projects in that State for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism (the report), consistent with Milestone 1 in Schedule A. Payment will only be made on the acceptance by the Commonwealth Minister with portfolio responsibility for water of a report the Minister considers to be satisfactory. 22) Using the Statement of Assurance and any supporting documentation, the Assessor will conduct an assessment of each Basin State’s performance against the milestones set out in Schedule A. The Assessor’s performance assessment reports will indicate: a) whether the Basin State has met the performance milestones outlined in Schedule A for the applicable reporting year, and the extent to which they have been met; and b) where a Basin State has not met a performance milestone, any steps and activities that were undertaken by the Basin State to meet the milestone. 23) In consultation with the Commonwealth Department with portfolio responsibility for water, the Assessor may make one formal request for a Basin State to provide additional information to help inform their annual assessment report. 24) The Assessor will provide its annual assessment report on each Basin State’s performance against milestones to the Commonwealth Minister with portfolio responsibility for water, by 31 October, or the first working day thereafter. The Assessor will then provide a copy to the relevant Basin State. 25) The Commonwealth Minister with portfolio responsibility for water will authorise, based upon the funding and performance reporting arrangements set out in this Agreement, whether payment should be made to a Basin State having regard to that Basin State’s assessment report and completion of its milestones and, in the circumstance of any adverse finding assessed by the Commonwealth as being not material to that state’s cooperation with the reforms. Murray–Darling Basin National Partnership Agreement: 29 milestone assessments for year ending 30 June 2013 26) In consultation with the Commonwealth Department with portfolio responsibility for water, following a decision by the Commonwealth Minister with portfolio responsibility for water and release of the report to the Basin State, the Assessor will publish a copy of each Basin State’s annual assessment report on its website. Murray–Darling Basin National Partnership Agreement: 30 milestone assessments for year ending 30 June 2013 Appendix 3 Schedule A to the National Partnership Agreement on Implementing Water Reform in the Murray–Darling Basin Murray–Darling Basin National Partnership Agreement: 31 milestone assessments for year ending 30 June 2013 Murray–Darling Basin National Partnership Agreement: 32 milestone assessments for year ending 30 June 2013 Murray–Darling Basin National Partnership Agreement: 33 milestone assessments for year ending 30 June 2013 Murray–Darling Basin National Partnership Agreement: 34 milestone assessments for year ending 30 June 2013 Appendix 4 Statement of assurance transmission letters Murray–Darling Basin National Partnership Agreement: 35 milestone assessments for year ending 30 June 2013 Murray–Darling Basin National Partnership Agreement: 36 milestone assessments for year ending 30 June 2013 Murray–Darling Basin National Partnership Agreement: 37 milestone assessments for year ending 30 June 2013 Appendix 5 Assessment expectations Table A5.1 outlines the Commission’s expectations for statements of assurance provided by basin states, and identifies verification sources (where sought). Table A5.1: Assessment expectations National Partnership commitments Expectations Third-party sources of verification information for Commission’s assessment 1) For New South Wales, Victoria and South Australia only, the state has provided a brief description of supply measure projects for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism. List of proposed supply measures projects to be provided to DSEWPaC No assessment by the Commission required a) confirmation that no restrictions were introduced on the trading of water access entitlement, except where consistent with the Basin Plan water trading rules (a) Statement by state that action has not occurred Sources include trade working group, media releases, jurisdictional websites and gazettes. (b) confirmation that no action has been taken to impede Commonwealth measures to acquire water for environmental purposes b) Statement by state that action has not occurred Confirming source: DSEWPaC (c) confirmation that applications for water entitlement and allocation trades to which the Commonwealth was a party were processed consistent with the agreed service standards for trade processing times for state approval agencies (c) Statement by state that service standards have been adhered to, supported by a list of trades and the times taken to process those trades Confirming sources: DSEWPaC and CEWH (d) specification of entitlements in regulated surface water systems, (d) Provision by state of a list of systems where this applies, accompanied by a statement Review by NWC of entitlement characteristics in areas nominated by the state as being DSEWPaC to assess 2) The state has supported the Commonwealth in bridging the gap, as measured by: Confirming sources: DSEWPaC and the MDBAa Murray–Darling Basin National Partnership Agreement: 38 milestone assessments for year ending 30 June 2013 consistent with clauses 28 to 32 of the NWI in the timeframe agreed in the IGAb, unless where otherwise agreed 3) Following publication of the Constraints Management Strategy by the MDBA, confirmation that any actions taken by the state to remove or address constraints are consistent with the measures agreed through the interjurisdictional governance procedure for the SDL adjustment mechanism that identifies which of those regulated systems have entitlements that are consistent with the provisions of clauses 28–32 of the NWI consistent with the NWIc Not assessable until after the Constraints Management Strategy has been published by the MDBA (due at the end of November 2013). No assessment in 2013 (a) Except as otherwise agreed between the Commonwealth and the relevant state to facilitate improved environmental watering, confirmation that the characteristics of licensed entitlements held for environmental use have not been enhanced or diminished relative to like entitlements held and used for other purposes (a) Statement by state that action has not occurred Sources include announcements by jurisdiction ministers, media releases, jurisdictional websites and gazettes. Not necessarily public information. (b) Where feasible and agreed by the relevant basin state, and where associated third-party impacts have been considered, confirmation that measures have been implemented to facilitate the use of environmental water by protecting environmental water instream and on land through: (b) Not assessable until an agreement has been made. None was made during 2012–13. 4) The state has cooperated in arrangements for Basin Plan environmental watering, as measured by: Confirming source: DSEWPaC As no agreement has been made, there is no assessment in 2013 (i) the delivery of held environmental water instream though arrangements such as Murray–Darling Basin National Partnership Agreement: 39 milestone assessments for year ending 30 June 2013 water shepherding to facilitate environmental flows (ii) further use of environmental water at multiple locations along the river, such as through return flow provisions (c) confirmation that the MDBA has been provided with annual environmental watering priorities, consistent with the Basin Plan Statement by state that annual environmental watering priorities have been provided, supported by copy of priorities provided if not public, or link to location if public. Jurisdictional websites and the MDBA website (d) confirmation that the management and delivery of planned and held environmental water is consistent with the Basin Plan; including: (d) The basin plan requires this to be reported to the MDBA by 1 October for the prior watering year under clauses 13.14 and 8.44 of the Basin Plan. This information may be published on jurisdiction websites. (a) the Environmental Watering Plan’s principles to be applied to environmental watering (b) that a statement of reasons has been provided to the MDBA for any environmental watering that was not in accordance with the annual basin environmental watering priorities (e) confirmation that environmental watering in regulated catchments has occurred having regard to the views of local communities and persons materially affected by the management of environmental water Confirming sources: DSEWPaC and MDBA if not public Confirming sources: DSEWPaC and MDBA if not public. For 2013, where a report to the MDBA has not yet been made, a statement by the state that confirms that the management and delivery of planned and held environmental water were consistent with the Basin Plan and outlines reasons for inconsistencies. Where a report has been provided to the MDBA, a statement by the state that confirms that the management and delivery of planned and held environmental water was consistent with the Basin Plan, with a copy of the material provided either linked to or attached.d (e) Statement by the state that: identifies all environmental watering events (including CEWH-held water) undertaken during the year outlines the process for determining the views of local communities and persons materially affected by the management of Confirming sources: DSEWPaC (drawing on material from DSEWPaC and CEWH) and the MDBA on coordinated planning, delivery and monitoring of watering events undertaken in conjunction with states. This information may form part of reporting provided to the MDBA under (d), and so may also be published on jurisdiction Murray–Darling Basin National Partnership Agreement: 40 milestone assessments for year ending 30 June 2013 environmental water, and how those were considered in undertaking watering.e (f) 12 months after the MDBA has made the Basin-wide Environmental Watering Strategy, or within another timeframe agreed between the MDBA and a basin state, confirmation that long-term environmental watering plans for surface water resource plan areas have been developed consistent with the requirements of the Basin Plan 5) For New South Wales, Victoria and South Australia only, the state has provided a brief description of supply measure projects for which feasibility and business cases are being developed for consideration under the SDL adjustment mechanism. websites. (f) Not assessable in 2013 No assessment in 2013 Confirmed by the state and copy provided. Confirming source: DSEWPaC Notes a While the trading rules do not take effect until July 2014, this is still assessable in 2013 to the extent that rules may be introduced before then that will be inconsistent with the trade rules once they take effect. b See clause 3.4 (d) of the NPA. Parties must, in regulated surface water systems, specify entitlements consistent with clauses 28 to 32 of the NWI within three years of the agreement, unless otherwise agreed. c Extract from the NWI: 28. The consumptive use of water will require a water access entitlement, separate from land, to be described as a perpetual or open-ended share of the consumptive pool of a specified water resource, as determined by the relevant water plan (paragraphs 36 to 40 refer), subject to the provisions at paragraph 33. 29. The allocation of water to a water access entitlement will be made consistent with a water plan (paragraph 36 refers). 30. Regulatory approvals enabling water use at a particular site for a particular purpose will be specified separately to the water access entitlement, consistent with the principles set out in Schedule D. 31. Water access entitlements will: i) specify the essential characteristics of the water product; ii) be exclusive; iii) be able to be traded, given, bequeathed or leased; iv) be able to be subdivided or amalgamated; v) be mortgageable (and in this respect have similar status as freehold land when used as collateral for accessing finance); vi) be enforceable and enforced; and vii) be recorded in publicly-accessible reliable water registers that foster public confidence and state unambiguously who owns the entitlement, and the nature of any encumbrances on it (paragraph 59 refers). 32. Water access entitlements will also: i) clearly indicate the responsibilities and obligations of the entitlement holder consistent with the water plan relevant to the source of the water; ii) only be able to be cancelled at Ministerial and agency discretion where the responsibilities and obligations of the entitlement holder have clearly been breached; iii) be able to be varied, for example to change extraction conditions, where mutually agreed between the government and the entitlement holder; and Murray–Darling Basin National Partnership Agreement: 41 milestone assessments for year ending 30 June 2013 iv) be subject to any provisions relating to access of water during emergencies, as specified by legislation in each jurisdiction. Extract from NWI Schedule A: Timeline for implementation of key actions d Key actions Date IGA paragraphs Responsibility Water access entitlements to immediate 28–34 States be defined and implemented Extract from the Basin Plan: 8.44 Reporting required where Basin annual environmental watering priorities not followed (1) If a person undertakes environmental watering other than in accordance with the Basin annual environmental watering priorities, that person must give to the Authority a statement of reasons why environmental watering has not been undertaken in accordance with the Basin annual environmental watering priorities. Note: See section 25D of the Acts Interpretation Act 1901 for content required in a statement of reasons. (2) The person must give the statement to the Authority as soon as practicable, but in any event within 4 months after the end of the water accounting period in which the environmental watering was undertaken. Note: This aligns with the period by which an annual report must be produced on the implementation of the environmental management framework. See section 13.14 and item 10 of the table in Schedule 12. 13.14 Reporting requirements for Basin States, the Department etc. (1) For each matter listed in Schedule 12, each reporter listed for the matter must, for each reporting period and by the reporting day, produce a report (including data) on the matter as at the end of the reporting period. (2) If the reporter is not the Authority, the reporter must, by the reporting day, give the report to the Authority. Note: The Authority is required to publish copies of all reports: see section 13.22. Extract from Schedule 12 of the Basin Plan: Item Matter Reporter Category Chapter Environmental watering plan e 7 The achievement of environmental outcomes at a Basin scale, by reference to the targets in Schedule 7. Authority, CEWH 5 yearly Chapter 8 8 The achievement of environmental outcomes at an asset scale. Basin States 5 yearly Chapter 8 9 The identification of environmental water and the monitoring of its use. Basin States, CEWH, Authority Annual, subject to s13.15 Chapter 8 10 The implementation of the environmental management framework (Part 4 of Chapter 8). Basin States, CEWH, Authority Annual, subject to s13.15 Chapter 8 Extracts from the IGA: 5.1 The Parties agree that their environmental water holders and managers will work collaboratively, in close consultation and where appropriate by agreement, in exercising their responsibilities in accordance with the Basin Plan Environmental Watering Plan, and have regard to the Basin annual environmental watering priorities, as prepared by the MDBA. 8.2 The Parties agree to use existing Basin State frameworks and community based networks, including indigenous community networks, and other mechanisms as required to draw on expertise in the management of environmental water. 8.3 The Parties agree to build on these existing arrangements in order to strengthen the involvement of local communities in the implementation of the Basin Plan and associated water reform. In determining the necessity and appropriateness of changes, the Parties will consider the relevant requirements of participation in Basin environmental watering planning processes, and mechanisms to support transparency and accountability. Murray–Darling Basin National Partnership Agreement: 42 milestone assessments for year ending 30 June 2013 References ACT Government 2013, ACT response against relevant assessment criteria for 2013 assessment, ACT Government, Canberra. DEWNR (Department of Environment, Water and Natural Resources) 2012, 2012–13 Annual Environmental Watering Plan for the South Australian River Murray, Adelaide. GHD 2012, Belsar and Yungera Island Floodplain complex feasibility investigation and concept design: final report, Mildura. SA Govt 2012, The Riverine Recovery Project, South Australian Government, Adelaide. SA Govt 2013, 2013 Statement of Assurance: National Partnership Agreement on Implementing Water Reform in the Murray–Darling Basin, South Australian Government, Adelaide. MDBA 2012, The Living Murray: planned works on the Chowilla floodplain, MDBA, Adelaide. VEWH (Victorian Environmental Water Holder) 2012, Seasonal Watering Plan 2012–13, VEWH, Melbourne. VEWH (Victorian Environmental Water Holder) 2013, Seasonal Watering Plan 2013–14, VEWH, Melbourne. Vic. Govt 2013, 2012–13 Statement of Assurance: National Partnership Agreement on Implementing Water Reform in the Murray–Darling Basin, Victorian Government, Melbourne. Murray–Darling Basin National Partnership Agreement: 43 milestone assessments for year ending 30 June 2013 Abbreviations and acronyms ACT Australian Capital Territory CEWH Commonwealth Environmental Water Holder DSEWPaC Department of Sustainability, Environment, Water, Population and Communities IGA Intergovernmental Agreement on Implementing Water Reform in the Murray–Darling Basin MDBA Murray–Darling Basin Authority NPA National Partnership Agreement on Implementing Water Reform in the Murray– Darling Basin NWI National Water Initiative SDL sustainable diversion limit Murray–Darling Basin National Partnership Agreement: 44 milestone assessments for year ending 30 June 2013