Board Meeting: 26-27 November 2012 Agenda Number: 11 (v) File Reference: EV0016 LORD HOWE ISLAND BOARD Business Paper Issue: Lord Howe Island Wastewater Update. Background: At its May 2008 meeting the Board recognised that septic tank effluent represents a threat to public health and the Island’s World Heritage values. The Board agreed to have all septic tanks removed or upgraded within the next 5 years. During 2009 and 2010 the LHIWMC worked with consultant Worley Parsons to produce a Wastewater Management Strategy Document. During 2011 the LHIB administration undertook Community Consultation on the preferred options identified in the strategy document with the intention of identifying the community preferred option. The results of the community consultation were presented to the Board at the May 2011 Board meeting. At the May 2011 Board meeting the Board decided to pursue an onsite wastewater treatment solution for the island. Subsequent to this decision the LHIB Administration produced a revised onsite Wastewater Management Strategy which, following community consultation during May and June of 2012, was approved by the LHI Board at the September 2012 Board meeting. Comment Following approval of the strategy the LHIB Administration has commenced the implementation phase. There are several implementation activities that are underway and the following is a summary of the status of these activities. 1. Development of Site specific design guidelines It was reported in the September 2012 Board meeting that the LHIB Administration has commenced further works to assist the community with the implementation of the new strategy. The LHIB Administration has over the last few months been undertaking additional works to site specific design controls that will be available to leaseholders to use when procuring a new system. One of the challenges to onsite treatment of wastewater is the disposal of effluent. Under the new strategy the effluent quality requirements for residential wastewater are quite low. The impact of which complicates the disposal regime. Avoiding surface water logging, potential for human contact, over nitrification of soil and ground water penetration by effluent is a requirement of the design of an effluent disposal system. LHIB has engaged Agsol to undertake further works to identify constraints which impact on the design of individual leaseholder systems. This work is due to be completed in December this year. 2. Investigations of On-site systems With the finalisation of the strategy the LHIB Administration has undertaken further work investigating on-site systems specifically in the context of how they could be installed on the island. This work has been occurring in parallel to the development of the site design guidelines. There are several initiatives being explored. Most of the NSW Health accredited systems will meet the requirements of the strategy if they are installed, operated and maintained appropriately. Some will need additional treatment systems (such as reed beds) to remove nutrients. As mentioned in previous Board papers the LHIB Administration will conduct an EOI process in early 2013 to identify preferred systems that will meet the requirements of the strategy at a price point generally acceptable to the community. As part of this EOI process the LHIB Administration will seek to establish a system price. To keep prices as low as possible, the LHIB will look to offer incentives to system suppliers. These incentives could include reduced warfage, reduced plant hire rates, subsidised accommodation for installers, streamlined DA processes, etc. The benefit for the LHIB is that these incentives will encourage the community to participate earlier to benefit from these incentives. The LHIB Administration is looking at other opportunities to reduce costs and improve outcomes. One of the options being considered is the shared systems – two or more leases share a system effectively reducing the cost/leasehold. The LHIB Administration believes this is potentially feasible. It would require an agreement between leaseholders as to ownership and maintenance arrangements. The strategy has been designed to create flexibility in developing wastewater systems. Reuse of existing infrastructure was seen as an opportunity to not only reduce redundant infrastructure but also as an opportunity to reduce cost. For example where existing septic tanks are in good condition there is an opportunity to continue to use these tanks either as a primary tank which is supplemented by a secondary treatment tank or as an effluent wet weather storage tank. The LHIB Administration has committed to show leadership in the on-site treatment of wastewater and to demonstrate this is considering constructing a couple of demonstration systems that will demonstrate best practice solutions. The LHIB Administration is negotiating two systems (a commercial and a residential) that could be constructed early next year. The demonstration projects would enable leaseholders to see them in action and see how they perform. 3. Community Awareness and education It was identified in the September Board paper that the LHIB Administration plans to undertake further community awareness and education activities on the proposed wastewater management strategy. In early November the LHIB Administration wrote to all leaseholders advising them of the new Wastewater strategy and their obligations to upgrade their systems to meet the requirements of the strategy. The LHIB Administration has allocated additional resources to assist with this community awareness and education process. Over the coming months LHIB will hold information sessions, one on one consultation, and group consultation sessions. Further LHIB will provide the community additional information such as Q & A fact sheets, and regular information bulletins. In addition to the above activities the LHIB Administration will commence work on a fees and charges regime that will be implemented as at the start of the 2013/14 financial year. The development of the fees and charges will consider the costs of systems, maintenance and monitoring requirements. 4. NSW Government funding opportunities At the September 2012 Board meeting the LHI Board asked the Administration to write to NSW Government to ask if there was any opportunity for funding assistance to implement this new strategy. The LHIB Administration has written to NSW Treasury as part of its TAM Plan submission requesting consideration of Capital funding for this program. 5. NSW EPA Correspondence and visit to the island On 7 September 2012, the LHIB Administration received correspondence from the NSW EPA regarding the management of Wastewater on the island. A Copy of this correspondence is attached for the LHI Boards information. The correspondence was received as a result of the LHIB Administration writing to EPA (3 April 2012) asking them to provide comment on the proposed strategy. Follow up correspondence from the LHIB Administration was sent on 7 August again seeking their input. A summary of the EPA correspondence and the LHIB response to the comments is attached. Following receipt of the EPA correspondence, the EPA advised that they wished to visit the island to discuss a number of issues including wastewater. EPA visited the island during the week 15- 18 October 2012. Subsequent correspondence from EPA reinforced their earlier comments regarding the challenges to implement on-site systems. The correspondence identified suspected pollution breaches with some existing systems. The LHIB Administration is following up these issues. The LHIB Administration will write to the NSW EPA seeking their support to work cooperatively with the LHIB to implement this new strategy that will see significant improvements to treatment of the islands wastewater The LHIB Administration proposes to further refine the strategy based on the findings of the Agsol study and the comments from EPA however these changes will not affect or delay the implementation of the strategy as changes would primarily be in regard to the risk assessment process and the determination of disposal areas. These should not impact in the short term on the process to procure new systems. Recommendation: That the Board note the paper. Prepared By: Nicholas Holt Manager Infrastructure and Engineering Services Endorsed By: Stephen Wills Chief Executive Officer EPA Correspondence 1 received 7 September 2012. The following is a summary of the observations and technical comments provided in the correspondence: EPA Comment LHIB Response Whilst EPA has a preference for a centralized option they acknowledged the Boards preference for an on-site approach Noted “The EPA believes that the desired environmental outcomes of this revised strategy will only be achieved in practice if the integrity of the decentralized approach is not diluted by compromising the key elements of the strategy.” Noted “We also note that the islanders initially accepted the estimated costs of replacing/upgrading their existing systems……………..This level of support may not be sustained when the cost implications of a fully decentralized sewage strategy are known” Noted details of costings were provided in information presented in consultation documentation and at community consultation sessions. Further information will be available to the community during the community awareness and education program planned as part of the implementation phase. The effectiveness of the revised strategy …..will be strongly linked ….to both the willingness of islanders to maintain effluent treatment systems ….. and the rigor with which LHIB follows up on identified performance issues”. “This strong regulatory approach will help provide a level of confidence that the environmental outcomes can be achieved from a fully decentralized sewage strategy. “However the Board will need to allocate significant on-going resources to maintain effective regulator control…. If the desired outcomes are to be realized and maintained over the long term.” This has been identified and the strategy details a comprehensive regulatory approach to the management of on-site systems. The strategy includes a comprehensive section on the ongoing management requirements of these systems. Nutrient levels. EPA advised that most small aerated treatment systems only achieve between 25-50mg/l where as the NSW Health guideline specifies 20mg/l. The EPA recommended that method of deriving proposed effluent standards be clarified and that disposal areas be based on conservative estimates of likely achievable effluent quality. Noted. The nutrient levels apecified in the strategy have been amended to reflect the NSW Health guideline requirements. LHIB notes the results for most small systems and the work Agsol is doing to identify irrigation areas has been looking at conservative figures for nutrient removal to ensure irrigation areas are appropriate. The use of reed beds will be encouraged as a final polisher of effluent to help achieve the targets where some systems do not meet the requirement. Effluent Storage. EPA raised concerns about the intention of the strategy to minimise the need for onsite storage due to Noted. The strategy was designed to minimise the requirement for wet weather storage. Based on the work to date by Agsol, most residential situations will have a requirement requirement for high quality effluent. EPA noted that LHIB was examining wet weather storage as part of the work by Agsol and recommends that the strategy be refined based on the outcomes of the assessment. for wet weather storage. This storage will be in the order of 10kl – 20kl. In commercial situations there may be a requirement for wet weather storage to avoid ground waterlogging. The strategy will be refined following the work of Agsol Risk Assessment Process. EPA advised that wet weather storage needs to be taken into consideration and recommends the risk assessment process be amended to reflect wet weather storage and land disposal area is capable of preventing effluent discharge during wet weather events Noted and risk assessment process will be refined following the work by Agsol. EPA recommends justification of a reduced buffer distance to domestic bores or to amend the revised strategy to be consistent with the DLG Guidelines Noted. A 250m buffer around domestic bores is not feasible due to the number and location of Bores. Appropriately designed and maintained irrigation systems with if necessary wet weather storage will need to installed.