ANNUAL REGULATORY PLAN Sustainability, Environment, Water, Population and Communities and Parks Australia 2012-2013 Contents Sustainability, Environment, Water, Population and Communities and Parks Australia Regulatory Plan What regulation does a Regulatory Plan cover? Summary of regulatory changes during the 2011/2012 Financial Year Summary of regulatory activity planned for the current Financial Year 2012/2013 Description of regulatory changes during the 2011/2012 Financial Year Description of regulatory activity planned for the current Financial Year 2012/2013 Sustainability, Environment, Water, Population and Communities and Parks Australia Regulatory Plan This report sets out the regulatory plan for the Department of Sustainability, Environment, Water, Population and Communities (the Department) and Parks Australia. Commonwealth agencies that have a responsibility for business regulation are required to publish a regulatory plan on their web site early in each financial year. The regulatory plan deals with changes within the agency’s area of responsibility and contains information about: changes to business regulation which have occurred since the beginning of the previous financial year; and activities planned in the current financial year which could lead to changes in business regulation. What regulation does a Regulatory Plan cover? A regulatory plan covers business regulation. This includes primary legislation, subordinate legislation, quasi-regulation or treaties which directly affect business, have a significant indirect effect on business, or restrict competition. Quasi-regulation refers to rules or arrangements where governments influence businesses to comply, but which do not form part of the explicit government regulation. A regulatory plan does not include information about the following: regulations that are likely to have no or a low impact on businesses and individuals or the economy; regulations that involve considerations of specific Government purchases; regulations of a state or self-governing territory that apply in a non-self governing territory; and anticipated activity about which it would be inappropriate to publish information on grounds of confidentiality. In addition, there may be regulatory activities undertaken during the next financial year which have not been included in a regulatory plan because they could not be foreseen when the plan was prepared at the start of the financial year. In view of these exclusions, users should not take a regulatory plan to be a comprehensive source of information on past or potential changes to business regulation. 2 Summary of regulatory changes during the 2011/2012 financial year Antarctica Amendment to the Antarctic Treaty (Environment Protection) Act 1980 Amendment to the Antarctic Treaty (Environment Protection) Proclamation 2007 and the Antarctic Treaty (Environment Protection – Historic Sites and Monuments) Proclamation 2007 Environment Commencement of the Product Stewardship Act 2011 and the Product Stewardship (Televisions and Computers) Regulations 2011 Applying an equivalent carbon price to synthetic greenhouse gases Amendments to the Water Efficiency Labelling and Standards (WELS) Scheme Parks and Reserves Australian National Botanic Gardens Management Plan 2012-2022 Water Amendment regulations to improve the operational effectiveness of the Water Act 2007 and prescribe variations to the Snowy Water Licence The National Water Commission Amendment Act 2012 3 Summary of regulatory activity planned for the current financial year 2012/2013 Antarctica Revised Mawson’s Huts Historic Site Management Plan 2012-2017 Development of a revised Threat Abatement Plan for the ‘Incidental catch (or bycatch) of seabirds during oceanic longline fishing operations’ Heard Island and McDonald Islands Marine Reserve Amendment Proclamation 2012 and Heard Island and McDonald Islands Conservation Zone Repealing Proclamation 2012 Heard Island and McDonald Islands Marine Reserve Management Plan Environment Amendments to the Environment Protection and Biodiversity Conservation Act 1999 and the Environment Protection and Biodiversity Conservation Regulations 2000 Review of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and Regulations COAG Plastics and Chemical Regulation Reform Listing of alachlor, aldicarb and endosulfan on the Rotterdam Convention Potential treaty making action for changes to the Stockholm Convention on Persistent Organic Pollutants Second independent review of the Fuel Quality Standards Act 2000 Amendments to the Fuel Quality Standards Regulations 2001 Development of a fuel quality and fuel quality information standard for B20 (diesel biodiesel blend) fuel under the Fuel Quality Standards Act 2000 Development of a fuel quality and fuel quality information standard for E85 fuel under the Fuel Quality Standards Act 2000 Possible amendment of the diesel fuel quality standard under the Fuel Quality Standards Act 2000 Amendments to the Fuel Standard (Autogas) Determination 2003 under the Fuel Quality Standards Act 2000 Third independent review of the Product Stewardship (Oil) Act 2000 Increases to Refrigeration and Air Conditioning (RAC) industry permit application fees Amendments to the Water Efficiency Labelling and Standards Scheme (Royal Assent of Bill, Regulations and Determination) Parks and Reserves Proclamation of new Commonwealth Marine Reserves Management Plans for Commonwealth Reserves 4 Incorporation of the Koongarra Project Area into Kakadu National Park Water Amendment regulations to implement Murray-Darling Basin Plan transitional arrangements and improve the operational effectiveness of the Water Act 2007 Clarification and expansion of the range of enforceable undertakings under the Water Act 2007 Amendments to the Water Market Rules 2009 and Water Charge (Termination Fees) Rules 2009 Examination of options to address stakeholder concerns about the conduct of water market intermediaries Murray-Darling Basin Plan Review of the Murray-Darling Basin Agreement (Schedule 1 to the Water Act 2007) Amendments to the Murray-Darling Basin Agreement (Schedule 1 to the Water Act 2007) and Water Regulations 2008 Operating rules relating to the Commonwealth Environmental Water Holder (CEWH) purchasing, disposing of or otherwise dealing in water and water access rights 5 Description of regulatory changes during the 2011/2012 financial year Antarctic Amendment to the Antarctic Treaty (Environment Protection) Act 1980 Description of Issues Amendments to the Antarctic Treaty (Environment Protection) Act 1980 have been made to implement domestically Australia’s Antarctic Treaty obligations pursuant to: Measure 4 (2004) – Insurance and Contingency Planning for Tourism and Nongovernmental activities in the Antarctic Treaty Area; Measure 1 (2005) – Annex VI to the Protocol on Environmental Protection to the Antarctic Treaty: Liability Arising from Environmental Emergencies; and Measure 15 (2009) – Landing of Persons from Passenger Vessels in the Antarctic Treaty Area. Under amendments pursuant to Measure 4 (2004), operators organising or conducting tourism or other non-governmental activities in the Antarctic: would need to establish and maintain appropriate contingency plans, arrangements for health and safety, search and rescue, medical care, and evacuation prior to commencing an activity; and would require insurance or other arrangements – adequate to meet the costs of search and rescue, medical care and evacuation. The amendments contribute to improved safety outcomes for tourism and other non-governmental activities occurring in the Antarctic. Under amendments pursuant to Measure 1 (2005), operators organising or conducting scientific programs, tourism and all other governmental and non-governmental activities in the Antarctic: would need to undertake reasonable preventative measures to reduce the risk of environmental emergencies and their potential adverse impact; would need to establish and maintain contingency plans for responses to incidents with potential adverse impacts on the Antarctic environment; would need to take prompt and effective response action to environmental emergencies arising from the activities of that operator; and would require adequate insurance or other financial security to cover potential liability for failure to take prompt and effective response action. The amendments contribute to improved response action to environmental emergencies relating to scientific programs, tourism and all other governmental and non-governmental activities occurring in the Antarctic. 6 Under amendments pursuant to Measure 15 (2009), operators organising or conducting tourism or other non-governmental activities in the Antarctic: would need to refrain from making any landings in Antarctica from vessels carrying more than 500 passengers; would need to coordinate with each other with the objective that not more than one tourist vessel is at a landing site at any one time; would need to restrict the number of passengers on shore at any one time to 100 or fewer; and would need to maintain a 1:20 guide-to-passenger ratio. The amendments contribute to improved safety and environmental outcomes for tourism and other non-governmental activities occurring in Antarctica. Date of Effect The Antarctic Treaty (Environment Protection) Amendment Act 2012 received royal assent on 28 June 2012. The operative provisions related to the implementation of each measure will only commence once all Consultative Parties to the Antarctic Treaty have approved the relevant measure. Contact Details Rob Bryson Manager, Territories, Environment and Treaties Australian Antarctic Division Department of Sustainability, Environment, Water, Population and Communities 203 Channel Highway Kingston TAS 7050 Phone: (03) 6232 3275 Facsimile: (03) 6232 3500 Email: Rob.Bryson@aad.gov.au 7 Amendment to the Antarctic Treaty (Environment Protection) Proclamation 2007 and the Antarctic Treaty (Environment Protection – Historic Sites and Monuments) Proclamation 2007 Description of Issues Annex V of the Environmental Protocol to the Antarctic Treaty provides for the designation of Antarctic Specially Protected Areas (ASPAs), Antarctic Specially Managed Areas (ASMAs) and Historic Sites and Monuments (HSMs). These areas are designated by the Antarctic Treaty Consultative Meeting in order to protect outstanding environmental, scientific, historic, aesthetic or wilderness values or ongoing planned scientific research. Entry into ASPAs and ASMAs is regulated under the Antarctic Treaty (Environment Protection) Act 1980 and it is an offence to damage or destroy a HSM. The Antarctic Treaty (Environment Protection) Amendment Proclamation 2011 and the Antarctic Treaty (Environment Protection – Historic Sites and Monuments) Amendment Proclamation 2011 were prepared to implement into domestic law agreed new ASPAs, ASMAs and HSMs, and changes to boundaries, agreed at the 33 rd and 34th Antarctic Treaty Consultative Meeting. Date of Effect The Antarctic Treaty (Environment Protection) Amendment Proclamation 2011 and the Antarctic Treaty (Environment Protection – Historic Sites and Monuments) Amendment Proclamation 2011 came into effect on 16 December 2011. Contact Details Rob Bryson Manager, Territories, Environment and Treaties Australian Antarctic Division Department of Sustainability, Environment, Water, Population and Communities 203 Channel Highway Kingston TAS 7050 Phone: (03) 6232 3275 Facsimile: (03) 6232 3500 Email: Rob.Bryson@aad.gov.au 8 Environment Commencement of the Product Stewardship Act 2011 and the Product Stewardship (Televisions and Computers) Regulations 2011 Description of Issues The Product Stewardship Act 2011 establishes a national framework to allow Australia to more effectively manage the environmental, health and safety impacts of products, and in particular the impacts associated with disposal of products. The framework includes voluntary, co-regulatory and mandatory product stewardship. Voluntary product stewardship provides an avenue for encouraging and recognising product stewardship without the need to regulate. Co-regulatory product stewardship involves a combination of government regulation and industry action. The mandatory product stewardship provisions allow regulations to establish prescriptive product stewardship requirements. The co-regulatory and mandatory provisions only apply to classes of products identified in regulations, and regulations can only be made following regulatory impact assessment. The Product Stewardship (Televisions and Computers) Regulations 2011 support a coregulatory recycling scheme for televisions, computers, printers and computer products. The Regulations require companies that imported or manufactured relevant products in the previous financial year to be members of an ‘approved co-regulatory arrangement’. The administrators of these arrangements must take all reasonable steps to meet outcomes specified in the Regulations, including annual recycling targets and the provision of reasonable access to collection services. To limit the impact of the Regulations on small business, companies that that import or manufacture less than 15,001 computer products or 5,001 televisions, computers or printers in a financial year are not required to be members of an approved co-regulatory arrangement. Date of Effect The Act came into effect on 8 August 2011. The Regulations commenced on 8 November 2011 and were amended on 23 November 2011 and 14 June 2012. Contact Details Michael Bennett Director, Environment Quality Legislation Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6274 2481 Email: michael.bennett@environment.gov.au 9 Applying an equivalent carbon price to synthetic greenhouse gases Description of Issues Under the Australian Government's Clean Energy Future Plan, synthetic greenhouse gases (SGGs) covered by the Kyoto Protocol will have an equivalent carbon price applied from 1 July 2012 through the existing Ozone Protection and Synthetic Greenhouse Gas legislative framework. The existing framework controls and imposes licence, reporting and levy requirements to the manufacture, import and export of: all ozone depleting substances (ODSs); hydrofluorocarbons and perfluorocarbons (which are SGGs); and refrigeration and air-conditioning equipment containing ODSs, hydrofluorocarbons and perfluorocarbons. Legislation and regulation amendments were made to add a carbon charge component, based on the global warming potential of each gas, to the existing levy, and to extend the licence, reporting and levy requirements to importers and manufacturers of: all SGGs, including sulfur hexafluoride; and all equipment containing hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride. Applying an equivalent carbon price to synthetic greenhouse gases will create a financial incentive to reduce emissions by placing a price on every tonne of SGGs. The equivalent carbon price will encourage businesses and customers to: use low or no global warming potential alternative gases; ensure equipment containing synthetic greenhouse gases are correctly installed and undergo regular maintenance; and increase end of life recovery and recycling of gases. Date of Effect 1 July 2012. Contact Details Lili Calitz Assistant Director, Synthetic Greenhouse Gas Carbon Pricing Section Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6275 9054 Fax: (02) 6274 2875 Email: lili.calitz@environment.gov.au 10 Amendments to the Water Efficiency Labelling and Standards (WELS) Scheme Description of Issues In November 2011 the Standing Council on Environment and Water determined its response to the recommendations of the Independent Review of the Water Efficiency Labelling and Standards (WELS) Scheme. It also agreed a strategic plan for 2012-15. Implementing a number of those Standing Council decisions required amendment to the Water Efficiency Labelling and Standards Act 2005, the 2011 Determination and the 2005 Regulations. Key amendments include: introduction of civil penalties; amendments to existing criminal offences; and changes to the registration aspects of the scheme, including the fee model, to enable the scheme to increase its cost recovery ratio. A new determination and regulations will be also be made. Date of Effect The Bill to amend the Act was passed by Parliament on 26 June 2012. Compliance and enforcement aspects of the Bill will take effect the day after it receives Royal Assent while registration aspects are planned to take effect by proclamation in November 2012. Contact Details Angela Gillman Assistant Director, WELS Policy Section Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6275 9054 Email: angela.gillman@environment.gov.au 11 Parks and Reserves Australian National Botanic Gardens Management Plan 2012-2022 Description of Issues Management plans describe how Commonwealth reserves will be managed for a 10 year period, including natural and cultural heritage management, visitor management and approved commercial activities in the reserve. A management plan must apply the requirements of the Environment Protection and Biodiversity Conservation Act 1999 and associated regulations. The management plan for the Australian National Botanic Gardens is based on the management principles and intent of the previous plan, taking into consideration public comments towards the initial development of the plan, and public comments submitted on a draft of the management plan released for public comment in November 2011 (which allowed 70 days for public comments). Office of Best Practice Regulation (OBPR) considers that the management plan has only a ‘minor’ impact on business or the not-for-profit sector and no further analysis (in the form of a Regulation Impact Statement) was required (OBPR ID: 2012/13605). Date of Effect 29 May 2012. Contact Details Mr Peter Byron General Manager Australian National Botanic Gardens GPO Box 1777 CANBERRA ACT 2601 Phone: (02) 6250 9500 Fax: (02) 6250 9599 Email: peter.byron@environment.gov.au 12 Water Amendment regulations to improve the operational effectiveness of the Water Act 2007 and prescribe variations to the Snowy Water Licence Description of Issues The Water Regulations 2008 (Regulations) were amended to improve the operational effectiveness of the Water Act 2007 (Water Act) by: prescribing a number of Victorian water resources plans as Transitional Water Resources Plans (TWRPs) for the purposes of section 241 of the Water Act. Under section 241 of the Water Act, a water resources plan can be prescribed as a TWRP. Under section 245 of the Water Act, a TWRP will prevail over the Basin Plan to the extent of any inconsistency; and changing the Bureau of Meteorology’s (BoM) information gathering powers, including with respect to the time in which information is to be provided to the BoM and the categories to be provided, to enhance the quality and utility of water information. The Regulations were further amended to prescribe variations to the Snowy Water Licence made on 29 April 2010 and 4 October 2011. The variations to the Snowy Water Licence were made under the Snowy Hydro Corporatisation Act 1997 (NSW). The variation impacts upon water availability and sharing arrangements for NSW, Victoria and South Australia under the Murray Darling Basin (MDB) Agreement. Amendments to the MDB Agreement are required to ensure the changes to the Snowy Water Licence are appropriately reflected in the MDB Agreement. Under section 21(7) of the Water Act, the Murray-Darling Basin Plan cannot be inconsistent with a variation made to the Snowy Water Licence if the variation has been prescribed in the Regulations. The draft Basin Plan has been written to be consistent with the two variations. Date of Effect The amendments to the Water Regulations 2008 came into effect on 11 May 2012. Contact Details Tony Bigwood Director, Water Regulation Section Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6274 2730 Email: tony.bigwood@environment.gov.au 13 The National Water Commission Amendment Act 2012 Description of Issues The National Water Commission Amendment Act 2012 amends the National Water Commission Act 2004 to continue the National Water Commission (NWC) as an independent statutory body beyond the previous Act’s sunset date of 30 June 2012. The Act implements the Government’s response to an independent Review of the NWC and refocusses its operations to deliver three core ongoing functions (monitoring, audit, assessment). It closes the Australian Water Fund, but enables the NWC to administer Australian Government funding programs that may be allocated to it in the future. The Act also reduces the number of NWC Commissioners (including the Chair) from seven to five, due to the NWC’s refocused functions. Date of Effect All but Schedule 1, Part 1: 27 June 2012 Schedule 1, Part 1: 1 July 2012 Contact Details Katy Nicholls Director, Strategic Review Section, Water Policy Branch Department of Sustainability, Environment, Water, Populations and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6274 1797 Fax: (02) 6274 2186 Email: katy.nicholls@environment.gov.au 14 Description of regulatory activity planned for the current financial year 2012 / 2013 Antarctic Revised Mawson’s Huts Historic Site Management Plan 2012-2017 Description of Issues Under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), the Mawson’s Huts Historic Site Management Plan 2007-12 was required to be reviewed and if necessary revised within five years of its making. This Plan has now been reviewed and a revised plan is scheduled to be made before December 2012. For one hundred years, Mawson’s Huts have stood as the cornerstone of Australia’s Antarctic history. It was the first base for Australia’s scientific and geographical discovery of Antarctica. This significance has been nationally recognised through the listing of the site as a National Heritage place (2005) and a Commonwealth Heritage place (2004) under the EPBC Act. The Mawson’s Huts Historic Site Management Plan 2012-2017 will provide conservation and management guidance for the historic site for the next five years. The Plan will centre on the ongoing conservation and maintenance work required to protect the National and Commonwealth listed values of the site. The essential conservation principles for the site have not changed. Consultation Opportunities The review of the previous management plan and the development of the revised plan sought informal and formal comments from interested parties and the general public. Prior to its finalisation, the revised plan will be circulated for public comment and following consideration of comments received, advice will be sought from the Australian Heritage Council prior to its final approval. Expected Timetable It is expected that the draft revised management plan will undergo a public consultation period in the next two months and will be finalised before the end of 2012. Contact Details Rob Bryson Manager, Territories, Environment and Treaties Australian Antarctic Division Department of Sustainability, Environment, Water, Population and Communities 203 Channel Highway Kingston TAS 7050 Phone: 03 6232 3275 Fax:(03) 6232 3500 Email: Rob.Bryson@aad.gov.au 15 Development of a revised Threat Abatement Plan for the ‘Incidental catch (or bycatch) of seabirds during oceanic longline fishing operations’ Description of Issues The current Threat Abatement Plan (TAP) was made in July 2006 to address the key threatening process of incidental catch (or bycatch) of seabirds during oceanic longline fishing operations. Under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) the Minister is required to review each TAP within five years and to consider whether a variation is necessary to better achieve its objectives. The Minister reviewed the TAP in July 2011. He concluded that significant progress had been made in reducing seabird bycatch in longline fisheries. However, as the objective of the TAP (zero seabird bycatch) had not yet been achieved, a TAP was still required. The Minister decided that a variation offered the best option for further reducing seabird bycatch and directed the department to develop a variation in consultation with stakeholders. The current TAP continues to be in force while a variation to the plan is being developed. The current TAP prescribes actions in six key areas. These are mitigation, education, international initiatives, research and development, innovation, and data collection and analysis. It is proposed that there continue to be prescribed actions in each of these areas. Many of the prescribed actions in the current TAP have been effective and will continue to be needed. It is expected that the scope of a revised TAP will be largely similar to the current TAP. Consequently, most changes will comprise updates or refinements of current prescriptions to take account of improved knowledge from research or technological and other developments since 2006. Consultation Opportunities In broad terms, the proposed process to develop a variation will involve: 1. initially consulting with the Threatened Species Scientific Committee (TSSC) and government agencies (completed); 2. initially also consulting with industry, environmental organisations and other nongovernment organisations (NGOs) (completed); 3. progressing development of draft text for a revised TAP, with further research and consultation as required on individual issues; 4. consulting with the TSSC prior to release for public comment of a draft revised TAP, revising that draft as required, and releasing it for public comment (for at least three months); 5. evaluating public comments and revising the draft TAP as required, noting that if significant changes are needed, further consultation may be undertaken prior to preparing a final draft TAP; 6. preparing a final draft TAP and consulting with the TSSC prior to it being submitted to the Minister; and 16 7. revising the draft TAP, as required, and submitting it to the Minister for decision. Expected Timetable Consultation with the Office of Best Practice Regulation is expected to occur in late 2012, with the variation to the TAP proposed to be in effect in early 2013/14. Contact Details Rob Bryson Manager, Territories, Environment and Treaties Australian Antarctic Division Department of Sustainability, Environment, Water, Population and Communities 203 Channel Highway Kingston TAS 7050 Phone: 03 6232 3275 Fax: 03 6232 3500 Email: Rob.Bryson@aad.gov.au 17 Heard Island and McDonald Islands Marine Reserve Amendment Proclamation 2012 and Heard Island and McDonald Islands Conservation Zone Repealing Proclamation 2012 Description of Issues A Commonwealth Reserve was declared at Heard Island and Macquarie Island (HIMI) by Proclamation under section 344(1) of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) published in the Gazette on 16 October 2002. By Proclamation made under section 390D of the Act and also published in the Gazette on 16 October 2002 four areas adjacent to the Reserve were declared a Conservation Zone to protect the areas while being assessed to determine whether they should be included in the Reserve. A scientific assessment of the Conservation Zone has been completed and recommended that approximately 6200 km² of the zone should be added to the Reserve on the basis of its high conservation value; and, noting that the values of the remaining areas of the conservation zone (5800 km²) are already adequately represented elsewhere in the Reserve, the area should not be included in the Reserve. There is some fishing activity in the areas that are proposed for inclusion in the Reserve. Despite the reduction in the area of the fishing grounds following the expansion of the Reserve, the same total allowable catch will be available outside the Reserve. The Minister for Sustainability, Environment, Water, Population and Communities (the Minister) is yet to consider the recommendations of the HIMI conservation zone assessment. Consultation Opportunities The Australian Antarctic Division (AAD) has consulted extensively with stakeholders throughout the scientific assessment process. This consultation process began in 2002 when the AAD established the HIMI Stakeholder Group to bring together relevant interest groups (including conservation non-government organisations, the two commercial fishing operators that operate in the HIMI Fishery and relevant commonwealth government agencies). Members of the HIMI Stakeholder Group were consulted on the development and implementation of a Conservation Zone scientific research plan, the assessment of the Conservation Zone’s fishing resource potential and assessments of potential fishing impacts to any conservation values. Further to above, a notice inviting public comment on the proposal was published in accordance with the Act on 21 December 2011. No comments were received during the public consultation period. The Office of Best Practice and Regulation is satisfied that the two regulatory actions would be likely to have a minor impact on the business or not-for-profit sector and accordingly no further analysis (in the form of a Regulation Impact Statement) is required. 18 Expected Timetable Pending ministerial agreement, the AAD expects to instruct the Office of Legislative Drafting and Publishing (OLDP) in August 2012. It is AAD’s assessment that this drafting exercise is straightforward and that the OLDP should be able to prepare the proclamations within a fairly short timeframe. The schedules to the proclamations that outline the boundaries of the new areas of the marine reserve have been developed already by AAD in consultation with Geoscience Australia. AAD expects to advise the Executive Council on the proclamations in October 2012. Contact Details Lihini Weragoda Senior Policy Adviser Australian Antarctic Division Department of Sustainability, Environment, Water, Population and Communities 203 Channel Highway Kingston TAS 7050 Email: Lihini.Weragoda@aad.gov.au 19 Heard Island and McDonald Islands Marine Reserve Management Plan Description of Issues The Heard Island and McDonald Islands Marine Reserve is a Commonwealth Reserve managed by the Director of the Australian Antarctic Division. Section 366 of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) provides that the Director must prepare a management plan for a Commonwealth Reserve. The Australian Antarctic Division is currently preparing a new management plan to replace the current plan which will expire on 24 August 2012. An area adjacent to the Reserve, currently proclaimed as a Conservation Zone under the EPBC Act, is presently being assessed for inclusion in the Reserve. The Office of Best Practice and Regulation (OBPR) reviewed this planned regulatory activity in February 2012. It found that this activity would not have a regulatory impact on business or the not-for-profit sector. Accordingly, no further analysis (in the form of a Regulation Impact Statement) is required. Consultation Opportunities In late 2011 key stakeholders and members of the broader public were invited to comment on the Director’s proposal to prepare a draft new management plan in accordance with section 368(2) of the EPBC Act. In early 2013 key stakeholders and members of the broader public will be invited to comment on a draft of the new management plan in accordance with section 368(5) of the EPBC Act. Expected Timetable In early 2013 a draft of the new management plan will be released for public comment in accordance with section 368(5) of the EPBC Act. Contact Details Rob Bryson Manager, Territories, Environment and Treaties Australian Antarctic Division Department of Sustainability, Environment, Water, Population and Communities 203 Channel Highway Kingston TAS 7050 Phone: (03) 6232 3275 Facsimile:(03) 6232 3500 Email: Rob.Bryson@aad.gov.au 20 Environment Amendments to the Environment Protection and Biodiversity Conservation Act 1999 and the Environment Protection and Biodiversity Conservation Regulations 2000 Description of Issues On 24 August 2011, the Minister for Sustainability, Environment, Water, Population and Communities released the government response to the Independent Review of the Environment Protection and Biodiversity Conservation Act 1999 as part of a broad package of reforms for Australia’s national environment law. Amendments will be made to the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) and the Environment Protection and Biodiversity Conservation Regulations 2000 (EPBC Regulations) which will implement part of these reforms. Further information on the reforms can be found at: http://www.environment.gov.au/epbc/reform/index.html Consultation Opportunities The Government has undertaken significant consultation with a range of stakeholders in preparing its reform package. A regulation impact statement was prepared for the government response to the Independent Review of the EPBC Act and is available from http://ris.finance.gov.au/category/environmentand-energy. Expected Timetable The Government will introduce legislation to amend the EPBC Act during 2012. Amendments to the EPBC Regulations are expected to commence progressively through 2012 and 2013. Contact Details Kelly Pearce A/g First Assistant Secretary, Heritage and Wildlife Division Department of Sustainability, Environment, Water, Populations and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6274 1877 Email: Kelly.Pearce@environment.gov.au 21 Review of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and Regulations Description of Issues The review is intended to ensure that Australia effectively and efficiently meets its international obligations and national policy objectives for managing hazardous substances, hazardous wastes and other wastes. Amongst other matters, the review provides an opportunity to consider industry experience with the operation of the Act and Regulations since they were last reviewed in 2001, and whether there are opportunities to reduce regulatory burdens. Consultation Opportunities An introductory Issues Paper to seek stakeholder feedback on issues to be addressed in the review was open for comment between 14 June and 12 July 2012. A Consultation Paper with a more detailed discussion and analysis of issues will be released for comment in the second half of 2012. The timing of this release will depend on the range of issues raised by stakeholders and the level of analysis required. At this stage it is anticipated that the Consultation Paper will be released in October 2012. Those interested in receiving a copy of the Consultation Paper can email Hazardous.Waste@environment.gov.au. Expected Timetable June-July 2012: Consultation on Issues Paper October 2012: Consultation Paper released December 2012: Report on Submissions 2013: Introduction of any amendments to the Act or Regulations. Contact Details Michael Bennett Director, Environment Quality Legislation Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6274 2481 Email: michael.bennett@environment.gov.au 22 COAG Plastics and Chemical Regulation Reform Description of Issues In 2008, the Productivity Commission examined Australia’s system of regulating chemicals and plastics in its Research Report on Chemicals and Plastics Regulation. The Productivity Commission noted that, in contrast to other sectors such as health, transport and occupational health and safety, there is currently no risk management decision-making body for chemicals in the environment sector and no formal policy oversight by environment ministers. In response to the Productivity Commission recommendations, in November 2008 the Council of Australian Governments (COAG) directed the Environment Protection Heritage Council (EPHC) to develop a proposal for establishing a technical advisory body to propose risk management recommendations on industrial chemicals for consideration by the EPHC (now the Standing Committee on Environment and Water). COAG noted that this proposal would provide for the development of a single national decision on the environmental management of chemicals that could be adopted by reference and applied consistently in all jurisdictions and would close a significant gap in current arrangements for environment protection. At the same meeting, COAG agreed that EPHC would examine the costs and benefits of requiring mandatory environmental labelling of chemicals and examine the feasibility of developing a performance measurement framework for efforts to monitor the impact of chemicals in the environment for impacts both on human health and the environment. Development of this regulatory framework is included as part of the tranche of chemicals reforms under Outcome 16 (chemicals and plastics regulation) of COAG’s National Partnership Agreement to Deliver a Seamless National Economy. In 2009, the initiative was included as a key project under Strategy 12 (reducing hazard and risk) of the COAG-endorsed National Waste Policy: Less Waste, More Resources. Consultation Opportunities It is anticipated that a COAG Consultation Regulation Impact Statement will be prepared and an associated public consultation process undertaken. Expected Timetable It is expected that public consultation on the consultation RIS will occur in the second half of 2012 and a COAG compliant Decision Regulation Impact Statement completed by the end of December 2012. Contact Details Dr Sara Broomhall Director, Chemical Policy Section Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 23 Phone: (02) 6274 1702 Email: sara.broomhall@environment.gov.au Listing of alachlor, aldicarb and endosulfan on the Rotterdam Convention Description of Issues The Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade’s (Rotterdam Convention) Prior Informed Consent (PIC) Procedure provides a mechanism for information exchange on certain hazardous chemicals and pesticides to assist countries in making informed decisions before importing these chemicals. The PIC Procedure requires that all Parties ensure informed consent is received before exporting any chemical listed in Annex III. Australia is a Party to the Rotterdam Convention. Three pesticides, alachlor, aldicarb and endosulfan were listed in Annex III of the Rotterdam Convention at its Fifth Conference of the Parties (COP 5) in June 2011. As a consequence of this listing the Agricultural and Veterinary Chemicals (Administration) Regulations 1995 and the Customs (Prohibited Exports) Regulations 1958 need to be amended to include the three chemicals. In compliance with the Rotterdam Convention, the regulatory amendments will require all potential exporters to obtain a permit from the Department of Agriculture, Fisheries and Forestry before exporting alachlor, aldicarb or endosulfan. Consultation Opportunities Consultation on the current status of the three chemicals in Australia was conducted through the treaty making process. The Joint Standing Committee on Treaties (JSCOT) considered the treaty amendment and provided their response in Report 124 which was tabled on 10 May 2012. Expected Timetable The regulatory amendments to add the three chemicals to the relevant schedules will be made in August/September 2012 following approval by the Executive Committee. Contact Details Dr Sara Broomhall Director, Chemical Policy Section Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6274 1702 Email: sara.broomhall@environment.gov.au 24 Potential treaty making action for changes to the Stockholm Convention on Persistent Organic Pollutants Description of Issues The Stockholm Convention commits governments to reducing, and where feasible, eliminating the production and environmental releases of persistent organic pollutants (POPs), chemicals that are persistent, undergo long range environmental transport, bioaccumulate and are toxic or show adverse effects. Australia ratified the Stockholm Convention in 2004. The Conference of the Parties (COP), at its fourth meeting in May 2009, agreed to list nine new chemicals in the annexes to the Stockholm Convention for restriction or elimination: chlordecone; hexabromobiphenyl; pentachlorobenzene; lindane; alpha hexachlorocyclohexane; beta hexachlorocyclohexane; tetrabromodiphenyl ether and pentabromodiphenyl ether (commercial pentabromodiphenyl ether); hexabromodiphenyl ether and heptabromodiphenyl ether (commercial octabromodiphenyl ether); and perfluorooctane sulfonic acid, its salts and perfluorooctane sulfonyl fluoride (PFOS). Lindane was deregistered on 7 June 2010 at the request of the registrant. It was previously sold under permit to treat symphylids in pineapples in Queensland. Residual stocks could be used by farmers until 7 June 2012. Lindane was deregistered for general use in 1985. For 151 parties, the treaty amendment adding the nine chemicals to Annexes A, B and C came into force on 26 August 2010. For Australia, an amendment to the Annexes only enters into force upon Australia’s ratification of that amendment. Only one of these chemicals, PFOS, is still used in Australia. PFOS is used in a wide variety of applications. There are allowances available under the COP decision to enable continued use of PFOS for certain essential uses. PFOS may also be present in consumer articles currently in use. These aspects will be explored during the domestic treaty-making process. Pentabromodiphenyl ether and octabromodiphenyl ether, which are brominated flame retardants, have been phased out in Australia over the past 5–10 years but may still be present in consumer articles currently in use, such as some, but not all, electrical and electronic equipment, mattresses, and foam cushions such as those used in furniture and car seats. Some obligations may arise for disposal when the articles in use at the time of ratification then become waste. This will be considered in detail as part of the domestic treatymaking process. 25 The COP at its fifth meeting in April 2011 agreed to add the pesticide endosulfan to Annex A of the Stockholm Convention. Endosulfan was deregistered in Australia by the Australian Pesticides and Veterinary Medicines Authority on 12 October 2010 with a two year phase out. Consultation Opportunities Consultation, including preparation of a Regulation Impact Statement (RIS), was conducted prior to the fourth meeting of the COP in 2009 where there was agreement to listing of the nine additional chemicals. Consultation has commenced as part of the domestic treaty-making process. A further RIS will be drafted that will analyse the implementation options (including possible regulatory options) for ratifying the listing of the 9 additional chemicals. As part of the treaty making process a National Interest Analysis must also be prepared. When any proposed treaty amendments are tabled to the Joint Standing Committee on Treaties (JSCOT) there will be an opportunity for comments on the proposed amendments outlined in the tabled documents. Expected Timetable The draft RIS is expected to be released for comment in the 2012/13 financial year but the full treaty process may not be completed in this financial year. Contact Details Dr Paul Bainton Assistant Director, Chemical Policy Section Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6275 9764 Email: paul.bainton@environment.gov.au 26 Second independent review of the Fuel Quality Standards Act 2000 Description of Issues The Fuel Quality Standards Act 2000 provides the legislative basis for national fuel quality and fuel quality information standards for Australia. The Act is in place to: a) regulate the quality of fuel supplied in Australia in order to: i. reduce the level of pollutants and emissions arising from the use of fuel that may cause environmental and health problems; and ii. facilitate the adoption of better engine technology and emission control technology; and iii. allow the more effective operation of engines; and b) ensure that, where appropriate, information about fuel is provided when the fuel is supplied. Section 72 of the Act provides for a review of the Act. The purpose of the review is to evaluate the operation of the Act and to propose actions if necessary. Consultation Opportunities The form that the review of the Act will take has not yet been determined. It is expected that there will be public consultation on the operation of the Act during the review process. The report on the review will be made public when completed. Expected Timetable The review is expected to begin in late 2012 and be completed in early to mid 2013. Any regulatory action arising from the review would not occur before 2013-14. Contact Details Sandra Chambers Acting Director, Fuel and Used Oil Policy Section Department of Sustainability, Environment, Water, Population and Communities PO BOX 787 CANBERRA ACT 2601 Phone 02 6275 9845 Email: sandra.chambers@environment.gov.au 27 Amendments to the Fuel Quality Standards Regulations 2001 Description of Issues Amendments required as a consequence of amendments to the Fuel Quality Standards Act 2000 in November 2009. The proposed amendments relate to: clarifying that financial hardship is not the only basis for waiving of section 14 application fees (relates to regulation 6); removing provisions relating to expert advisers which have been removed from the Act; amending regulation 7A to include a timeframe for providing documents that must accompany fuel supplies as a result of a new civil penalty provision; including provisions relating to administration of infringement notices and enforceable undertakings which are new enforcement provisions in the Act; and extending the power to request further information from applicants for section 13 approvals to a Senior Executive Service (SES) officer within the department. Consultation Opportunities There was a comprehensive consultation process under the first statutory review of the Act during 2004/05. Consultation included the Fuel Standards Consultative Committee which consists of representatives from the fuel industry, vehicle manufacturers, consumers, environment groups, and state, territory and Commonwealth agencies. There will be no further opportunities for consultation as the amendment process will be finalised in early 2012-13. A regulation impact statement (RIS) is not required for these amendments as they are considered to be administrative or machinery in nature. Expected Timetable 6 July 2012: Amendment regulations finalised by Office of Legislative Drafting and Publishing 26 July 2012: Ministerial approval finalised 27 July 2012: Final documents submitted to Executive Council August 2012: Sign off by Governor General at the Federal Executive Council Contact Details Sandra Chambers Acting Director, Fuel and Used Oil Policy Section, Department of Sustainability, Environment, Water Population and Communities GPO Box 787 CANBERRA ACT 2601 28 Phone: (02) 6275 9845 Email: sandra.chambers@environment.gov.au Development of a fuel quality standard and fuel quality information standard for B20 (diesel biodiesel blend) fuel under the Fuel Quality Standards Act 2000 Description of Issues A diesel biodiesel blend (B20) fuel quality standard and fuel quality information standard is being proposed in order to provide certainty to fuel producers, blenders, vehicle manufacturers and motorists, and to avoid adverse impacts associated with poor quality diesel biodiesel blends. Blends of conventional fuels (petrol or diesel) and biofuels (ethanol or biodiesel) are becoming increasingly common on the market. The most common blends are E10 (a blend of 10 per cent ethanol with petrol – captured by the petrol standard), E85 (a blend of between 70 and 85 per cent ethanol with petrol – an E85 standard is being developed), B5 (a blend of 5 per cent biodiesel with diesel – captured by the diesel standard) and B20 (a blend of more than 5 per cent and not more than 20 per cent biodiesel with diesel). B20 is currently captured by the diesel standard which is not suitable as it caps the allowable biodiesel content at 5 per cent. The biodiesel standard is also not suitable as it does not include any diesel content. Regulation of B20 fuel through the new standards will look to: reduce emission and pollution levels arising from the use of B20 fuel, which may cause environmental and health problems; facilitate the adoption of better engine technology and emission control technology; allow for the more effective operation of engines; and ensure that information about B20 is provided when B20 is supplied. Consultation Opportunities A technical discussion paper detailing possible parameters, limits and test methods was publicly released for a six week consultation period in March 2012. Further consultation will be held on the proposed standards during 2012-13 with stakeholders including fuel producers, vehicle manufacturers, fuel suppliers and testing laboratories. Under the Fuel Quality Standards Act 2000, the Minister must consult with the Fuel Standards Consultative Committee (FSCC) and have regard to the FSCC's recommendations before determining a fuel standard or fuel quality information standard. The FSCC will also continue to be consulted on the proposed B20 standards. A minor Regulation Impact Statement (RIS) is expected to be completed in 2012-13. 29 Expected Timetable July 2012: Preliminary Regulation Impact Statement Assessment completed August - October 2012: RIS developed November 2012: Government position paper released for consultation, including RIS data February 2013: Consultation period ends May 2013: Minister briefed with draft B20 standard and RIS for decision Contact Details Sandra Chambers Acting Director, Fuel and Used Oil Policy Section Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6275 9845 Email: sandra.chambers@environment.gov.au 30 Development of a fuel quality standard and fuel quality information standard for E85 fuel under the Fuel Quality Standards Act 2000 Description of Issues An E85 fuel quality standard and fuel quality information standard is being developed in response to expansion of the Australian E85 market. E85, a blend of 70-85 per cent ethanol with petrol, has until recently been a niche fuel. However, in 2010 and 2011, announcements by the fuel and vehicle industries foreshadowed more E85 bowsers and more vehicles compatible with E85. The greater supply and use of E85 fuel provides a renewed impetus to develop an E85 fuel quality and fuel quality information standard. Regulation of E85 fuel through the new standards will look to: reduce emission and pollution levels arising from the use of E85 fuel, which may cause environmental and health problems; facilitate the adoption of better engine technology and emission control technology; allow for the more effective operation of engines; and ensure that information about E85 is provided when E85 is supplied. Consultation Opportunities A position paper detailing the proposed standards was publicly released for a six week consultation period in June-July 2011. Further consultation was held during 2011-2012 with key stakeholders including ethanol producers, vehicle manufacturers, fuel suppliers and testing laboratories, to resolve some technical issues. Under the Fuel Quality Standards Act 2000, the Minister must consult with the Fuel Standards Consultative Committee (FSCC) and have regard to the FSCC's recommendations before determining a fuel standard or fuel quality information standard. The FSCC was also consulted on the proposed E85 standards. A minor Regulation Impact Statement was completed in February 2012. 31 Expected Timetable June-July 2012: Drafting of the determinations by Office of Legislative Drafting and Publishing August 2012: Ministerial approval August/September 2012: Registration on Federal Register of Legislative Instruments Contact Details Sandra Chambers Acting Director, Fuel and Used Oil Policy Section Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6275 9845 Email: sandra.chambers@environment.gov.au 32 Possible amendment of the diesel fuel quality standard under the Fuel Quality Standards Act 2000 Description of Issues In February 2009, the then Minister for the Environment, Water, Heritage and the Arts amended the diesel standard to allow the addition of up to 5 per cent biodiesel to diesel. Prior to this change, the diesel standard was silent on the addition of biodiesel, which enabled suppliers of diesel biodiesel blends that met all other parameters of the diesel standard to supply this product. These amendments also introduced a new parameter (derived cetane number) for diesel biodiesel (B20) blends as the parameter for mineral diesel (cetane index) is not appropriate for blends. The cetane index for mineral diesel remained at 46 (min) while the derived cetane number for blends was 51 (min). This amendment is in line with international standards, however the gap between the two parameters has caused logistical difficulties for fuel producers and suppliers. Consultation Opportunities A technical discussion paper detailing possible parameters, limits and test methods for a proposed B20 standard (a blend of more than 5 per cent but not more than 20 per cent biodiesel with diesel) was publicly released for a six week consultation period in March 2012. As the issues around cetane and density for blends under the diesel standard are similar to those for B20 blends, this consultation will also inform a decision on amendments to these parameters under the diesel standard. Further consultation with fuel producers, suppliers, vehicle manufacturers and environmental groups will also be required. Under the Fuel Quality Standards Act 2000, the Minister must consult with the Fuel Standards Consultative Committee (FSCC) and have regard to the FSCC's recommendations before determining a fuel standard or fuel quality information standard. The FSCC will also continue to be consulted on any potential amendments to the diesel standard. If amendments are necessary, a Regulation Impact Statement (RIS) may be required. Expected Timetable Mid 2012: Further consultation on issues Late 2012: Decision on whether amendments are required Early 2013: RIS developed if required (subject to decision that amendments are necessary) Mid 2013: Minister briefed with draft amendments and RIS for decision Contact Details Sandra Chambers Acting Director, Fuel and Used Oil Policy Section Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6275 9845 33 Email: sandra.chambers@environment.gov.au Amendments to the Fuel Standard (Autogas) Determination 2003 under the Fuel Quality Standards Act 2000 Description of Issues The Fuel Standard (Autogas) Determination 2003 (Autogas standard) regulates the quality of liquefied petroleum gas (LPG) supplied in Australia for automotive use. The Australian Government has a policy position for international harmonisation of standards for vehicles and fuels with the United Nations Economic Commission for Europe vehicle emissions standards. As such Australian fuel specifications are generally harmonised with the corresponding European Directives for market fuel specifications, in this case EN 589. The proposed amendments will look to harmonise the Australian standard with international standards and to reduce the sulfur and residue levels in LPG. Amendments are also proposed for test methods in moisture and odour content to harmonise with EN 589. Consultation Opportunities A discussion paper to review the Autogas standard was released for public consultation in January 2010. A two-month public consultation period was conducted in conjunction with the release of the discussion paper, including written submissions. Consultation was also held with key stakeholders including Commonwealth and state and territory government agencies and further consultation was held in 2011-12 with the LPG industry. Under the Fuel Quality Standards Act 2000, the Minister must consult with the Fuel Standards Consultative Committee (FSCC) and have regard to the FSCC's recommendations before determining a fuel standard or fuel quality information standard. The FSCC was consulted on the proposed amendments to the LPG Standard. Expected Timetable October 2012: Ministerial approval to amend the standard November 2012: Drafting of amendments by the Office of Legislative Drafting and Publishing December 2012: Final Ministerial approval February 2013: Registration on Federal Register of Legislative Instruments Contact Details Sandra Chambers Acting Director, Fuel and Used Oil Policy Section Department of Sustainability, Environment, Water, Population and Communities PO BOX 787 CANBERRA ACT 2601 Phone 02 6275 9845 Email: sandra.chambers@environment.gov.au 34 Third independent review of the Product Stewardship (Oil) Act 2000 Description of Issues The objects of the Product Stewardship (Oil) Act 2000 are: a) to develop a product stewardship arrangement for used oils; and b) to ensure the environmentally sustainable management, re-refining and reuse of used oil; and c) to support economic recycling options for used oil. Section 36 of the Act requires that an independent review of the Act be undertaken every four years. The review will examine the operation of the Act and related customs and excise legislation and the extent to which the objects of the Act have been met. Amendments to the Act and related legislation are a possible outcome of the review. Consultation Opportunities The form that the review will take has not yet been determined, but it will include consultation with stakeholders. Key stakeholders include oil producers, oil recyclers and local government. Expected Timetable The review is expected to begin in late 2012 and be completed in early to mid 2013. Any regulatory action arising from the review would not occur before 2013-14. Contact Details Sandra Chambers Acting Director, Fuel and Used Oil Policy Section Department of Sustainability, Environment, Water, Population and Communities PO BOX 787 CANBERRA ACT 2601 Phone 02 6275 9845 Email: sandra.chambers@environment.gov.au 35 Increases to Refrigeration and Air Conditioning (RAC) industry permit application fees Description of Issues The Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 establish a system by which persons who carry out work in relation to Refrigeration and Air Conditioning (RAC) equipment must be licensed. There is a cost recovery fee charged to apply for a licence. The regulatory change will be a one-off increase to the licence fees in the order of 30 per cent and the addition of annual indexation of the fee according to the labour price index (LPI). LPI is considered a more appropriate index than the Consumer Price Index (CPI) because the majority of administration costs are related to staffing. As the RAC permit scheme is funded on a cost recovery basis it is important that the increased costs of administering the scheme are fully recovered. The permit fees have not increased in 7 years. The one-off increase takes into account increased costs since the original fee requirement was implemented. Permit Type RTA (2 years) RTA (1 year) Restrict-ed RTA (1 year) RHL (2 years) RHL Transitional (1 year) RHL Trainee (1 year) New Proposed Permit Fee % Increase from the current to the new proposed permit fee % Increase from the old to the new proposed permit fee $420 $420 31% 0% $160 $210 $210 31% 0% $100 $120 $130 30% 10% $100 $120 $130 30% 10% $50 $60 $65 30% 8% $20 $24 $26 30% 8% Current Permit Fee Old Proposed Permit Fee (consulted on) $320 Consultation Opportunities In late 2009, the department consulted with the RAC industry (via the members of the RAC Industry Board) on proposed fee increases, which included one-off fee increases and annual indexation with CPI. The RAC industry was supportive of the proposal at that time. In March 2010, the Minister approved in principle the proposed fee increases (including the application of CPI). 36 The proposed fee increases were then reviewed as part of a Cost Recovery Impact Statement (CRIS) completed late 2011. A further increase to the permit fees to take account of increased costs since the original fee requirement was calculated in 2009 was proposed. In addition, it is planned to index the application fee using the LPI instead of CPI. Expected Timetable This change is expected to be implemented in the second half of 2012. Contact Details Janet Hughes Director, Border and Domestic Management Section Department of Sustainability, Environment, Water, Population and Communities PO BOX 787 CANBERRA ACT 2601 Ph: (02) 6275 1784 Fax: (02) 6274 2875 Email: Janet.Hughes@environment.gov.au 37 Amendments to the Water Efficiency Labelling and Standards Scheme (Royal Assent of Bill, Regulations and Determination) Description of Issues The Water Efficiency Labelling Scheme Amendment (Scheme Enhancements) Bill 2012 is anticipated to receive Royal Assent in July 2012. Development of a new determination and regulations to be made under the amended Act will then occur. These will complete the changes to the Scheme agreed by the Standing Council on Environment and Water in November 2011. The Determination will make changes to the registration aspects of the Scheme, such as changes to the fee model (including increasing the fees) and the registration period, to enable the scheme to increase its cost recovery ratio, and to make the Scheme more efficient and cost effective for administrators and registrants. More aspects of the Scheme will be contained in the determination than was previously the case. The new regulations are expected to set the amount of infringement notices in addition to involving minor consequential amendments. Consultation Opportunities Substantial consultations were held early in 2012 to assist in determining the content of the Bill. These consultations included three public forums, meetings with registrants, a consultation paper and receipt of 119 written submissions. The feedback received will also assist in designing the new determination. It is intended that a draft of the new determination will be made available for comment to stakeholders. It is expected that the determination will take effect in November 2012. Expected Timetable The Bill was passed by Parliament on 26 June 2012. Compliance and enforcement aspects of the Bill will take effect the day after it receives Royal Assent while registration aspects will take effect by proclamation in November 2012. The determination is expected to take effect on 2 November 2012, and the regulations are to take effect as soon as they can be completed. Contact Details Angela Gillman Assistant Director, WELS Policy Section Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6274 2450 Email: angela.gillman@environment.gov.au 38 Parks and Reserves Proclamation of new Commonwealth Marine Reserves Description of Issues It is proposed that 40 new Commonwealth Marine Reserves will be declared nationally. These will combine with existing Commonwealth Marine Reserves to form the Commonwealth waters’ component of the National Representative System of Marine Protected Areas (NRSMPA), which includes networks of reserves in the South-west, North-west, North, Southeast and Temperate East marine regions and a reserve in the Coral Sea. The South-east network of marine reserves was declared in 2007. The purpose of the NRSMPA is to establish and manage a comprehensive, adequate and representative system of marine protected areas to contribute to the long term ecological viability of marine and estuarine systems, to maintain ecological processes and systems, and to protect Australia’s biological diversity at all levels. Although the reserves have been designed to minimise impacts on industry and current use, once they come into effect, the new reserves will result in restrictions to some extractive activities in particular Reserves. The 40 new Commonwealth reserves are proposed to be named: 1. Southern Kangaroo Island Commonwealth Marine Reserve 2. Western Kangaroo Island Commonwealth Marine Reserve 3. Western Eyre Commonwealth Marine Reserve 4. Murat Commonwealth Marine Reserve 5. Great Australian Bight Commonwealth Marine Reserve 6. Twilight Commonwealth Marine Reserve 7. Eastern Recherche Commonwealth Marine Reserve 8. South-west Corner Commonwealth Marine Reserve 9. Bremer Commonwealth Marine Reserve 10. Geographe Commonwealth Marine Reserve 11. Perth Canyon Commonwealth Marine Reserve 12. Two Rocks Commonwealth Marine Reserve 13. Jurien Commonwealth Marine Reserve 14. Abrolhos Commonwealth Marine Reserve 15. Shark Bay Commonwealth Marine Reserve 16. Carnarvon Canyon Commonwealth Marine Reserve 17. Gascoyne Commonwealth Marine Reserve 39 18. Montebello Commonwealth Marine Reserve 19. Dampier Commonwealth Marine Reserve 20. Eighty Mile Beach Commonwealth Marine Reserve 21. Roebuck Commonwealth Marine Reserve 22. Argo-Rowley Terrace Commonwealth Marine Reserve 23. Kimberley Commonwealth Marine Reserve 24. Joseph Bonaparte Gulf Commonwealth Marine Reserve 25. Oceanic Shoals Commonwealth Marine Reserve 26. Arafura Commonwealth Marine Reserve 27. Arnhem Commonwealth Marine Reserve 28. Wessel Commonwealth Marine Reserve 29. Limmen Commonwealth Marine Reserve 30. Gulf of Carpentaria Commonwealth Marine Reserve 31. West Cape York Commonwealth Marine Reserve 32. Coral Sea Commonwealth Marine Reserve 33. Gifford Commonwealth Marine Reserve 34. Norfolk Commonwealth Marine Reserve 35. Lord Howe Commonwealth Marine Reserve 36. Central Eastern Commonwealth Marine Reserve 37. Solitary Islands Commonwealth Marine Reserve 38. Cod Grounds Commonwealth Marine Reserve 39. Hunter Commonwealth Marine Reserve 40. Jervis Commonwealth Marine Reserve It is proposed that seven Commonwealth Marine Reserves will be revoked and will be subsumed by the new Commonwealth Marine Reserves. The seven Commonwealth reserves which will be revoked are: 1. Great Australian Bight Marine Park (Commonwealth Waters) (with the area to be included in the area of the new Great Australian Bight Commonwealth Marine Reserve) 2. Lord Howe Island Marine Park (with the areas to be included in the area of the new Lord Howe Commonwealth Marine Reserve) 3. Elizabeth and Middleton Reefs Marine National Nature Reserve (with the areas to be included in the area of the new Lord Howe Commonwealth Marine Reserve) 4. Lihou Reef National Nature Reserve (with the areas to be included in the area of the new Coral Sea Commonwealth Marine Reserve) 5. Coringa-Herald National Nature Reserve (with the areas to be included in the area of the new Coral Sea Commonwealth Marine Reserve) 40 6. Solitary Islands Marine Reserve (Commonwealth Waters) (with the area to be included in the new Solitary Islands Commonwealth Marine Reserve) 7. Cod Grounds Commonwealth Marine Reserve (with the area to be included in the area of the new Cod Grounds Commonwealth Marine Reserve) It is proposed that one Conservation Zone (the Coral Sea Conservation Zone) will be revoked and will be subsumed by the new Coral Sea Commonwealth Marine Reserve. The Proclamation instruments and revocation instruments are in accordance with the Environment Protection and Biodiversity Conservation Act 1999. Consultation Opportunities A notice has been published in the Australian Government Gazette (on 11 July 2012), on the department’s website and in the national press, seeking comments from stakeholders and the public towards the Proclamation of the proposed Commonwealth Marine Reserves. Public comments are invited for the statutory 60 day period. Information on the proposed Commonwealth reserves, including the Regulation Impact Statement (RIS), is available on the department’s website, with limited hard copies available. The department undertook previous public and stakeholder consultation on the draft marine reserves network proposals for the five regions between May 2011 and February 2012. This included a formal 90 day consultation period on draft reserve proposals in each region. Issues raised during these consultations have been considered by the Australian Government in finalising the Commonwealth marine reserves network proposal. Expected Timetable It is expected that the Reserves will be declared in late 2012. Contact Details Rowan Wylie Director, Commonwealth Marine Reserve Proclamations Department of Sustainability, Environment, Water, Population and Communities 203 Channel Highway Kingston TAS 7050 Phone: (03) 6208 2930 Email: marinereserves@environment.gov.au 41 Management Plans for Commonwealth Reserves Description of Issues The department is currently developing management plans for the following Commonwealth reserves: Booderee National Park; Christmas Island National Park; Pulu Keeling National Park; and Kakadu National Park. Management plans describe how Commonwealth reserves will be managed for a 10 year period, which may include natural and cultural heritage management, visitor management and approved commercial activities in the reserve. The plans may continue the restrictions and allowances described in the previous management plans for each location and take into account new developments in management techniques, research undertaken, changes in the environment and social factors. The plans must apply the requirements of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) and associated regulations. Consultation Opportunities In accordance with the requirements of the EPBC Act, a notice is published in the Australian Government Gazette, local press, a nationally circulated newspaper and on the department’s website, seeking comments from stakeholders and the public towards the creation of the draft plans (a “have your say” process). Consultation meetings are held with relevant stakeholders where appropriate. Once the draft plan is approved for release, a notice is then published in the Australian Government Gazette, local press, a nationally circulated newspaper and the department’s website, inviting comments on the draft plan from stakeholders and the public. In each case the public comment period is open for at least 30 days. Draft plans are made available on the internet and in hard copy, and comments from the public and stakeholders are considered when finalising each plan. Expected Timetable The plans normally take approximately 24 months to develop and have the following steps (outlined below for each plan). Booderee National Park Management Plan 1. Notice seeking comments to create a draft plan were published in October 2008. The public comment period closed in November 2008. 42 2. The draft Booderee National Park Management Plan was released for public comment on 4 May 2011. The Management Plan is not expected to have a significant impact on visitor activities in the park or a significant financial impact on business or individuals. 3. Public notice seeking comments on the draft plan was placed in the Gazette, press and internet once the draft plan was approved for release. The comment period closed on 2 August 2011. 4. The final plan is expected to be published in early 2013. Christmas Island National Park Management Plan 1. Notice seeking comments to create a draft plan were published in December 2007. Comments closed in February 2008. 2. The draft Christmas Island National Park Management Plan was released for public comment on 28 March 2012. The Management Plan is not expected to have a significant impact on visitor activities in the park or a significant financial impact on business or individuals. 3. Public notice seeking comments on the draft plan was placed in the Gazette, press and internet once the draft plan was approved for release. The comment period closed on 11 May 2012. 4. The final plan is expected to be published in late 2012. Pulu Keeling National Park Management Plan 1. Notice seeking comments to create a draft plan were published in November 2009. Comments closed in February 2010. 2. The draft Pulu Keeling National Park Management Plan is expected to be released for public comment in late 2012. The Management Plan is not expected to have a significant impact on visitor activities in the park or a significant financial impact on business or individuals. 3. Public notice seeking comments on the draft plan will be placed in the Gazette, press and internet once the draft plan is approved for release. The comment period will be open for 30 days (minimum). 4. The final plan is expected to be published by mid 2013. Kakadu National Park Management Plan 1. Notice seeking comments to create a draft plan was published on 29 February 2012. Comments closed on 13 April 2012. 2. The draft Kakadu National Park Management Plan is expected to be released for public comment in 2013. The Management Plan is not expected to have a significant impact on visitor activities in the park or a significant financial impact on business or individuals. 3. Public notice seeking comments on the draft plan will be placed in the Gazette, press and internet once the draft plan is approved for release. The comment period will be open for 30 days (minimum). 4. The final plan is expected to be published in 2014. 43 Contact Details Booderee National Park Mr Scott Suridge Park Manager, Booderee National Park Village Road JERVIS BAY NSW 2540 Ph: (02) 4442 2207 Fax: (02) 4442 1036 Email: martin.fortescue@environment.gov.au Christmas Island National Park & Pulu Keeling National Park Mr Mike Misso Park Manager, Christmas Island National Park PO Box 867 CHRISTMAS ISLAND INDIAN OCEAN 6798 Ph: (08) 9164 8055 Fax: (08) 9164 8755 Email: mike.misso@environment.gov.au Kakadu National Park Ms Sarah Kerin Park Manager, Kakadu National Park PO Box 71 JABIRU NT 0886 Phone: (08) 89381199 Fax: (08) 8938 1115 Email: sarah.kerin@environment.gov.au 44 Incorporation of the Koongarra Project Area into Kakadu National Park Description of Issues Koongarra is a small area (1228 hectares) that lies within, but is not part of Kakadu National Park. The Proclamation of Kakadu is to be amended, by a further Proclamation under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), to declare Koongarra part of Kakadu. Once declared the area will be managed as part of the park in accordance with the Act. Consultation Opportunities Incorporation of Koongarra was a commitment of the government during the 2010 election. AREVA, the holder of mining applications over the area was consulted before the government made its decision. Usual pre Proclamation processes under the EPBC Act do not apply to declaration of areas lying within the Kakadu region. The process does not require a regulation impact statement (exemption has been given). Expected Timetable The Australian Government is committed to completing incorporation as soon as possible, subject to completion of statutory processes. It is anticipated this should occur in 2012/2013. Contact Details Paul Minogue Director, Legal & Governance Parks Australia Phone: 02 6274 2356 Fax: 02 6274 2309 Email: parkslegal@environment.gov.au 45 Water Amendment regulations to implement Murray-Darling Basin Plan transitional arrangements and improve the operational effectiveness of the Water Act 2007 Description of Issues Implementing Murray-Darling Basin Plan transitional arrangements The Water Act 2007 (Water Act) provides that regulations may be made to recognise existing Murray-Darling Basin State arrangements to facilitate the transition to the Murray-Darling Basin Plan, currently under development. Amendment regulations are proposed to prescribe a number of Victorian salinity water resource plans as Transitional Water Resource Plans (TWRPs). Under section 241 of the Water Act, a water resources plan can be prescribed as a TWRP. Under section 245 of the Water Act, a TWRP will prevail over the Basin Plan to the extent of any inconsistency. Amendment regulations are also proposed to enable the recognition of the Queensland risk assignment regime as having applied the risk assignment framework as set out in section 74A(1) of the Water Act. Clarifying the definition of ‘water resources’ The definition of the Murray Darling Basin water resources under the Water Act allows for water resources within, or beneath the Murray-Darling Basin to be excluded. The original boundary for water resources, informing the definition, was established on the basis of surface water resources. As such the boundaries for groundwater resources in Victoria and South Australia were not necessarily considered in the boundary establishment process. It is predominately the exclusion of groundwater that is being considered. Amendment regulations are proposed to exclude Murray-Darling Basin water resources under the Water Act to align boundaries consistent with the Victorian and South Australian definition. Excluding these Victorian and South Australian water resources will not impact on management of the Murray-Darling Basin to meet the objects of the Water Act. Addressing gaps in water information provided to the Bureau of Meteorology The amendment will require organisations to give water information to the Bureau of Meteorology (BoM) in a prescribed format. The requirement will take effect in a staged process. The first tranche of agencies required to use a prescribed format will be regulation Category A persons – Lead Water Agencies, currently comprising 10 agencies. This will be followed at 6 monthly intervals by Category C (six Hydroelectricity Generators); Category B (21 other state agencies); and Category E (13 rural water utilities). The amendment will also require certain organisations to provide water information for the National Groundwater Information System and the Australian Hydrological Geospatial Fabric (Geofabric). 46 Consultation Opportunities The department has been consulting, and will continue to consult, with relevant stakeholders including states and territories, water and catchment management authorities, environmental and irrigation groups on the development of these amendments as relevant. This consultation will continue to occur in 2012 as the amendment regulations are developed. In relation to addressing gaps in water information, the BoM has consulted with the States and Territories through the forum of the Jurisdictional Reference Group on Water Information (JRGWI). It will undertake follow-up, targetted communications with those impacted by the changes (eight Lead Water Agencies) when the amendment takes effect. Expected Timetable Most of proposed amendments are nearing completion. If the Minister determines to make these amendments, it is likely these amendments will be made in 2012. In relation to the proposed changes to the Bureau of Meteorology’s information gathering powers these amendments are expected to be made in summer 2012/13. Contact Details Tony Bigwood Director, Water Regulation Section Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6274 2730 Email: tony.bigwood@environment.gov.au 47 Clarification and expansion of the range of enforceable undertakings under the Water Act 2007 Description of Issues Section 163 of the Water Act 2007 (Water Act) provides for enforcement agencies to accept court enforceable undertakings. However, there is some uncertainty and lack of clarity on the scope of the undertakings, which the amendment regulation under section 163 of the Water Act is designed to address. The proposed amendment regulation would clarify the existing law and expand the current range of enforceable undertakings that can be accepted by enforcement agencies under the Water Act. Consultation Opportunities Stakeholder consultation will be undertaken on the proposed amendment regulation. An information document will be provided to explain the nature and purpose of the draft amendment regulation. Information pertaining to the amendment regulation will be placed on the department’s website and advertised in appropriate print media, and a letter will be sent to key stakeholders seeking comments on the draft amendment regulation. The Office of Best Practice Regulation has assessed the proposed amendment regulation and has deemed that a Regulatory Impact Statement is not necessary. Expected Timetable Consultation on the draft amendment regulation is expected to commence in August 2012. It is expected that the amendment regulation will be made in late 2012. Contact Details Christopher Biesaga Director, Water Market Section Department of Sustainability, Environment, Water, Population and Communities Phone: (02) 6274 1420 Mobile: 0467 746 585 Email: christopher.biesaga@environment.gov.au 48 Amendments to the Water Market Rules 2009 and Water Charge (Termination Fees) Rules 2009 Description of Issues Some technical issues have arisen in the implementation of the Water Market Rules 2009 and the Water Charge (Termination Fees) Rules 2009. The former Minister for Climate Change, Energy Efficiency and Water, Senator the Hon Penny Wong, asked the Australian Competition and Consumer Commission (ACCC) for advice on a number of possible amendments to the rules to address these technical issues. The ACCC provided its final advice in March 2010. The purpose of these rule amendments is to address these technical issues and clarify some requirements to ensure that the rules operate as originally intended. Consultation Opportunities The ACCC provided its final advice on a number of possible amendments to the Water Market Rules 2009 and the Water Charge (Termination Fees) Rules 2009 to the former Minister in March 2010. In developing its advice, the ACCC engaged in consultation with stakeholders. The ACCC received seven written submissions in response to notices announcing the Minister’s request for advice on proposed amendments in October 2009. The ACCC received ten submissions in response to draft advice and draft amendments which were released in December 2009. The department also undertook targeted consultation with stakeholders in May and June 2010, and again in December 2011 and January 2012. Expected Timetable A public notice will be issued in July 2012 announcing that the Minister proposes to amend the Water Market Rules 2009 and the Water Charge (Termination Fees) Rules 2009. The public notice will be placed: 1. on the department’s website; 2. in a nationally circulating newspaper; and 3. for each Basin State, in a newspaper with an agribusiness focus circulating in the Basin State. The Minister can make the amendments four weeks after the public notice has been issued. It is expected that the amendments will be made in October 2012. Contact Details Christopher Biesaga Director, Water Market Section Department of Sustainability, Environment, Water, Population and Communities Phone: (02) 6274 1420 49 Mobile: 0467 746 585 Email: christopher.biesaga@environment.gov.au Examination of options to address stakeholder concerns about the conduct of water market intermediaries Description of Issues Stakeholders have expressed concerns about the conduct of water market intermediaries. The Australian Competition and Consumer Commission (ACCC) has identified potential gaps in the regulation of water market intermediaries and suggested that governments consider policy responses to address these gaps. The department, along with state and territory governments is currently examining options to address these concerns through COAG processes. Consultation Opportunities The ACCC provided advice on stakeholder concerns in its report Water market intermediaries: industry developments and practices. In developing the advice the ACCC engaged in consultation with stakeholders. The National Water Commission also undertook consultation on issues with water market intermediaries that were discussed in its report Strengthening Australia’s Water Markets 2011. The department also undertook targeted consultation with stakeholders in April and May of 2011. The department, along with state and territory governments will develop a Council of Australian Governments (COAG) Regulation Impact Statement (RIS) as part of its consideration of options to address stakeholder concerns. The RIS process will include consultation with stakeholders. Expected Timetable The department, along with states and territories, is expected to complete the COAG RIS in the second half of 2012 with agreed measures resulting from the RIS to be implemented in 2013. Contact Details Christopher Biesaga Director, Water Market Section Water Policy Branch Department of Sustainability, Environment, Water, Population and Communities Phone: (02) 6274 1420 Mobile: 0467 746 585 Email: christopher.biesaga@environment.gov.au 50 Murray-Darling Basin Plan Description of Issues The Water Act 2007 (Water Act) requires the making of the Murray-Darling Basin Plan (Basin Plan) to guide the integrated and sustainable management of Murray-Darling Basin (Basin) water resources. The Basin Plan will identify, and seek to protect and restore key environmental assets within the Basin and take into account the impact of this protection and restoration on communities, industries and the broader economy. The Basin Plan will include, as required under the Water Act: limits on the amount of water (both surface water and groundwater) that can be taken sustainably from Basin water resources; identification of risks to Basin water resources, and strategies to manage those risks; the requirements for state water resource plans in order for them to be accredited or adopted under the Water Act; an environmental watering plan; a water quality and salinity management plan; rules regarding trading of water rights in Basin water resources; a compliance method; and a monitoring and evaluation program. The Basin Plan is prepared by the Murray-Darling Basin Authority (MDBA) and will be made by the Minister for Sustainability, Environment, Water, Population and Communities for consideration. Consultation Opportunities The MDBA has been working closely with communities, community leaders, state governments and peak groups over the past year in preparing the draft Basin Plan. A 20 week public consultation period on the proposed Basin Plan occurred from November 2011 to April 2012. The Authority has considered submissions received and has prepared a report titled Proposed Basin Plan consultation report which summarises the submissions, how they have been addressed, and alterations made as a result. Following this public consultation, and in accordance with the Water Act, the revised proposed Basin Plan was provided to the Murray-Darling Basin Ministerial Council in May 2012 for comment. The Council submitted its comments to the MDBA on 9 July 2012. Expected Timetable After the views of the Ministerial Council have been considered by the Authority, Council members may make further comment on the Plan. The Authority will then provide its final 51 Basin Plan to the Minister for Sustainability, Environment, Water, Population and Communities for consideration. The Basin Plan will then be finalised. Contact Details Tim Fisher Assistant Secretary, Murray-Darling Basin Reform Branch Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6274 1557 Email: Tim.Fisher@environment.gov.au 52 Review of the Murray-Darling Basin Agreement (Schedule 1 to the Water Act 2007) Description of Issues Clause 142 of the Murray-Darling Basin Agreement (MDB Agreement) requires the MurrayDarling Basin Authority (MDBA) to review the MDB Agreement within 12 months of the Murray-Darling Basin Plan (Basin Plan) first taking effect. Subsequent to the Review, the Authority may recommend to the Murray-Darling Basin Ministerial Council any recommendations it thinks necessary or desirable. Consultation Opportunities Clause 142 of the MDB Agreement requires that the Authority consult with the Murray-Darling Basin Officials Committee when carrying out a review under this clause. Expected Timetable The Minister for Sustainability, Environment, Water Population and Communities is expected to adopt the Basin Plan in September 2012. The Authority may begin the clause 142 review of the MDB Agreement during 2012-13. Contact Details Tim Fisher Assistant Secretary, Murray-Darling Basin Reform Branch Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6274 1557 Email: Tim.Fisher@environment.gov.au 53 Amendments to the Murray-Darling Basin Agreement (Schedule 1 to the Water Act 2007) and Water Regulations 2008 Description of Issues The intent of any amendments to the Murray-Darling Basin Agreement (MDB Agreement) is to improve the management of water resources in the Murray-Darling Basin (Basin) and in particular, the shared water resources of the River Murray System. The governments of the Basin, through the Basin Officials Committee initiated a review of the MDB Agreement in April 2010. An inter-jurisdictional taskforce has been established to undertake this review, chaired by the Australian Government (Taskforce). A number of issues with the MDB Agreement, including codification of River Murray operational rules and problems and anomalies with environmental asset management and water accounting arrangements have been identified to date. Options for addressing these issues are being considered by the Taskforce with mechanisms to improve and amend the MDB Agreement to be identified. In addition, minor and administrative amendments, which do not change the intent of the MDB Agreement but address previous drafting errors and omissions and provide points of clarification, are also planned. Consultation Opportunities The following consultation opportunities will be provided: As an inter-jurisdictional entity, the Taskforce develops and executes projects to investigate possible amendments to the MDB Agreement via a consensus mechanism. Basin Governments are expected to consult with their key stakeholders on any proposed amendments and recommendations from the Taskforce for amendments to the MDB Agreement will be considered by the Basin Officials Committee before agreed amendments are presented to the Murray-Darling Basin Ministerial Council for approval. Basin States and the MDBA will be consulted in the preparation of amendments to the MDB Agreement in accordance with the provisions of the MDB Agreement. Expected Timetable The proposed amendments are in various stages of development with detailed timeframes yet to be determined. The Review of the MDB Agreement is in the preliminary stages of identifying key issues and possible matters for amendment. The Taskforce is currently due to complete its work program by 30 June 2013. Amendments to the MDB Agreement are unlikely to be considered before the completion of the review. Contact Details Tim Fisher 54 Assistant Secretary, Murray-Darling Basin Reform Branch Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6274 1557 Email: Tim.Fisher@environment.gov.au 55 Operating rules relating to the Commonwealth Environmental Water Holder (CEWH) purchasing, disposing of or otherwise dealing in water and water access rights Description of Issues The Water Act 2007 (Water Act) allows the Commonwealth Environmental Water Holder (CEWH) to exercise any powers of the Commonwealth to purchase, dispose of and otherwise deal in water and water access rights, water delivery rights or irrigation rights. The Water Act also establishes the CEWH’s ability to enter into contracts or options contracts. These clauses establish water trading as part of the CEWH’s management functions. The CEWH may only dispose of seasonal allocations and/or entitlements if: these are not required to meet environmental objectives in a given water accounting period and cannot be carried over to the next accounting period (section 106(1)); or the proceeds of the disposal are used to purchase other seasonal allocations and/or entitlements that improve the capacity of the holdings to meet environmental objectives (section 106(2)). The Water Act provides for the Minister to make operating rules relating to the CEWH purchasing, disposing of or otherwise dealing in water and water access rights (section 109). These operating rules may also relate to the making of contracts, including options contracts. In making operating rules, the Minister cannot impose obligations on anyone other than the CEWH or override or limit the operation of a state law. As the Revised Explanatory Memorandum to the Water Act makes clear the operating rules are to establish the general framework within which the CEWH operates, rather than providing specific direction on individual entitlements or contracts. Consultation Opportunities A discussion paper on trade of Commonwealth environmental water was released for consultation over the period November 2011 to May 2012. Through this process, stakeholders were presented with the opportunity to provide input on possible inclusions within the operating rules. Further consultation with stakeholders is anticipated as the operating rules are developed. This consultation may involve: further discussion of possible inclusions via a position paper on Commonwealth water trading (expected to be released around September 2012); and/or requesting written feedback following exposure of draft operating rules. Timing of this has not yet been determined but would likely be in early 2013. Expected Timetable Timing has not yet been determined but the operating rules are unlikely to be enacted prior to mid-2013. 56 Contact Details Jessica Hartmann Director, Portfolio Management Section Commonwealth Environmental Water Office Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 CANBERRA ACT 2601 Phone: (02) 6274 1197 Fax: (02) 6274 2823 Email: Jessica.Hartmann@environment.gov.au 57