Commonwealth On-Farm Further Irrigation Efficiency Program Design Commonwealth On-Farm Further Irrigation Efficiency Program (COFFIE) The Commonwealth On-Farm Further Irrigation Efficiency program (COFFIE) is the first in the next generation of programs funded by the Australian Government to improve on-farm water use efficiency in the Murray-Darling Basin. The COFFIE program provides funding to help irrigators modernise their on-farm irrigation infrastructure. In return for the infrastructure funding the water savings the irrigator is confident of achieving from the project will be transferred to the Commonwealth. Additional water savings will be retained by the irrigator. Participation in the program is voluntary and demand driven; it does not involve compulsory acquisition or targeting particular communities. The COFFIE program will be rolled out across the Basin to give as many irrigators as possible the opportunity to access funding, though there will be some limits until the existing on-farm funding programs finish. The program will be in addition to other Australian Government programs funding on-farm irrigation infrastructure improvements. How does the COFFIE program work? The Australian Government will source delivery partners who will be responsible for working with irrigators to design, manage and implement projects. This includes ensuring proposals are technically feasible and suitable for the property. Once funding for a proposal is approved, delivery partners will work with irrigators to undertake irrigation projects. Irrigators will transfer a water entitlement that reflects the agreed water savings achieved through the upgraded infrastructure. Any additional water savings are retained by the irrigator. The program funds infrastructure improvements and does not fund water purchase. How is the COFFIE program expected to differ from current ‘gap bridging’ on‑farm irrigation efficiency programs? It is expected that the COFFIE program will be broader than current on-farm programs, including: smaller projects will be accepted — projects will need to make a minimum of 10ML of water savings (smaller projects may be accepted under different pilots of COFFIE) all minimum water efficiency savings are to be transferred to the Commonwealth project funding will be limited to 1.75 times the prevailing average market price of the water access entitlements to be recovered proposals will be accepted at any time until 2024 — there will not be funding rounds proposals do not need to compete against each other, they simply need to meet the eligibility criteria. Irrigators interested in gaining funding should approach relevant delivery partners for assistance in developing a proposal. How much money is available? There is $1.575 billion of funding available for irrigation infrastructure upgrade programs. There is no limit within that amount for the COFFIE program. $35 million is available for the pilots to test the design of COFFIE. When does the COFFIE program start? Consultation has begun on the program design and will continue until mid-2016, including running several pilots. Once the program design is finalised, the intention is to tender for delivery partners and then seek project proposals. The program will run until 2024. Key dates are: November–December 2015: COFFIE program design released for public comment and then the program design will be reviewed. From late 2015: Test the program design through pilots. Mid-2016: Finalise program design. The Australian Government then tenders for COFFIE delivery partners and selects panel of delivery partners. October 2016: Australian Government accepts first project proposals through delivery partners 2016–2024: Australian Government accepts project proposals on an ongoing basis and undertakes multiple tender rounds for delivery partners Who can be a delivery partner? Delivery partners will be sourced through a tender process and assessed based on eligibility requirements which include the ability to deal with project loads, geographically diverse and complex projects. Delivery partners must also demonstrate their links to irrigators in the Basin, and may include: an Irrigation Infrastructure Operator a Catchment Management Authority a commodity or agricultural industry group a regional irrigation body an individual irrigator consortiums local government or state government bodies. I am an irrigator, how do I apply? Irrigators will be able to apply through delivery partners, and amongst other things must be: the registered owner of an eligible surface water entitlement, and able to submit a project that will generate a minimum water saving volume of 10ML. Where can I find more information? Comments are now being sought on the design of the COFFIE program — a Discussion Paper and a draft Statement of Requirements for delivery partners, is available at environment.gov.au/water/rural-water/coffie/consultation. Further details will be posted as the program develops, including information on selected delivery partners. You can also contact the department on 1800 218 478 or email efficiency.measures@agriculture.gov.au.