Department of Sustainability, Environment, Water, Population and Communities

Outcome 4: SUSTAINABLE WATER

Adaptation to climate change, wise water use, secure water supplies and improved health of rivers, waterways and freshwater ecosystems by supporting research, and reforming the management and use of water resources.

Main responsibilities for this outcome

In 2012–13 the department contributed to the sustainable and efficient use of Australia’s water resources through delivery of water reforms under the Water Act 2007, the 2004 National Water Initiative, the National Water Quality Management Strategy, and other Council of Australian Governments (COAG) agreed measures. The Murray–Darling Basin Plan was signed into law on 22 November 2012. The department continues to work with the Murray–Darling Basin Authority (MDBA), basin governments, stakeholders and communities to help implement new Sustainable Diversion Limits specified in the Murray–Darling Basin Plan through water purchase and infrastructure investments, including priority projects agreed under the 2008 Intergovernmental Agreement on the Murray–Darling Basin. Delivery of independent scientific advice to facilitate robust decision making through the establishment of the new statutory Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development. Agreement on a scientific methodology and collaborative arrangements for delivery of the bioregional assessments with the Bureau of Meteorology, Commonwealth Scientific and Industrial Research Organisation (CSIRO) and Geoscience Australia.

Water Efficiency Division Water Reform Division Office of Water Science

Objectives

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  Help communities and industries, particularly in the Murray–Darling Basin, become more resilient and sustainable, and better positioned to adapt to future water availability.
  
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  Help to make irrigation more efficient and ensure that water savings are shared between irrigators and the environment.
  
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  Develop an effective and transparent water market.
  
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  Help urban communities and businesses use water resources more efficiently and better secure their water supply.
  
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  Improve the health of rivers, wetlands and freshwater ecosystems.
  
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  Help to meet the Sustainable Diversion Limit specified in the Murray–Darling Basin Plan by recovering water for environmental use through water purchase and infrastructure initiatives.
  
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  Support key bilateral partners to also improve their water management.
  
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  Improve community confidence in decision making about the impacts of coal seam gas and coal mining developments on water resources.
  

Key achievements

Murray–Darling Basin Plan

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  The Murray–Darling Basin Plan (the Basin Plan), was signed into law on 22 November 2012 and commenced operation on 24 November 2012. The department provided advice to the minister in the discharge of his responsibilities in making the Basin Plan.
  
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  The department also chaired Commonwealth–state official processes that supported ministerial decision-making and comments on the Basin Plan.
  
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  The Basin Plan limits water use at environmentally sustainable levels by setting a Basin-wide Sustainable Diversion Limit, which is the maximum amount of water that can be taken for consumptive use. Under the Basin Plan by 30 June 2019, the equivalent of, 2750 gigalitres of environmental surface water recovery, or equivalent environmental outcomes, is required by 2019. At 30 June 2013, 1658 gigalitres long-term annual average of water has already been secured for the environment.
  
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  The Basin Plan also contains a mechanism to adjust the Sustainable Diversion Limit. The adjustment is either by supply measures that use up to 650 gigalitres less water to achieve the same environmental outcomes as delivered by the return of an average of 2750 gigalitres per annum (thereby reducing social and economic impacts), or by efficiency measures that recover and provide more water for the environment with no negative social or economic impacts. More than $1.7 billion in additional funds has been committed to deliver 450 gigalitres of additional water for the environment and to remove constraints to allow the use of that water.
  
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  As part of the work to implement the new Basin Plan, an intergovernmental agreement between the Commonwealth and Basin states on implementing water reform in the Murray–Darling Basin, came into effect on 5 June 2013. This agreement builds on the 2008 intergovernmental agreement and supports the objectives of the Murray–Darling Basin Plan. At 30 June 2013 this agreement had been signed by Victoria, the Australian Capital Territory and South Australia. The commencement of this new agreement also represents a major achievement for the department.
  

Meeting the Sustainable Diversion Limit in the Murray–Darling Basin

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  The Australian Government is helping to meet the Sustainable Diversion Limit specified in the Basin Plan by recovering water for the environment through investment in infrastructure and water purchases. At 30 June 2013 the volume of water held by the Commonwealth for the environment which helps reduce diversions to the Sustainable Diversion Limits had increased by approximately 136 gigalitres (Long Term Average Annual Yield). A total of 1658 gigalitres towards the 2750 gigalitre gap to the Sustainable Diversion Limits under the Basin Plan has been recovered.
  

Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development

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  In November 2012 the Minister for Sustainability, Environment, Water, Population and Communities announced the formation of the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development, a statutory committee enacted through the Environment Protection and Biodiversity Conservation Amendment (Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development) Act 2012, which received Royal assent on 24 October 2012. The Independent Expert Scientific Committee meets monthly and, in accordance with the functions in its Act, provides scientific advice on Coal Seam Gas and Large Coal Mining development proposals as requested by Commonwealth and state regulators regarding water related impacts of such proposals. The Committee also provides advice on the science for bioregional assessments and research priorities.
  
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  The department has worked closely with the statutory committee, providing secretariat support and technical advice to assist the statutory committee in meeting its responsibilities. This included providing advice to government regulators on the potential water-related impacts of 23 coal seam gas or large coal mining development proposals.
  
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  In collaboration with the Bureau of Meteorology, CSIRO and Geoscience Australia, the department has commenced the Bioregional Assessment Program, finalised the scientific methodology on how bioregional assessments are to be conducted and the proposed technical products which could be delivered, and commenced work on four priority subregions including Namoi, Gloucester, Galilee and Clarence. Substantial stakeholder engagement has been undertaken to introduce the approach and benefit bioregional assessments.
  

Strategies

In 2012–13 the department continued to deliver programs to improve the sustainability of Australia’s water resources. Approaches and contributions towards achieving this outcome included:

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  improving environmental, social and economic outcomes with respect to water by progressing implementation of the 2004 National Water Initiative, including an efficient and effective national water market
  
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  assisting the Minister for Sustainability, Environment, Water, Population and Communities in the discharge of his responsibilities in the making of the Murray–Darling Basin Plan
  
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  improving the sustainability of the Murray–Darling Basin by progressing the implementation of the 2008 intergovernmental agreement and the water management partnership agreements
  
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  improving the sustainability of rural water use by investing in infrastructure with states, industry and communities across Australia, particularly in the Murray–Darling Basin
  
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  acquiring water to meet the Sustainable Diversion Limit specified in the Basin Plan securing water supplies for urban communities, cities and towns by funding investment in infrastructure, new technology and smart water use
  
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  providing water efficiency information and minimum standards for household water products
  
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  helping communities and irrigation delivery bodies in the Murray–Darling Basin to plan more effectively their future water use
  
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  protecting freshwater ecosystems, rivers and wetlands by assisting states, territories and landowners to meet their obligations
  
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  setting the frameworks for water quality management
  
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  sharing Australian knowledge and practice in water use with key bilateral partners and promoting learning from international best practice in multilateral bodies.
  

Evaluation and conclusions

During 2012–13 the following reviews of the department’s programs were conducted.

Internal audit report—good start review—water infrastructure programs—Northern Victoria Irrigation Renewal Project, Stage 2

A review of the Northern Victoria Irrigation Renewal Project, Stage 2 (NVIRP2) was conducted by PricewaterhouseCoopers in July 2012. It focused primarily on the planning and early implementation phases of the project.

The review concluded that appropriate governance measures were in place and the water savings project milestones for NVIRP2 and project milestones for NVIRP2 on-farm were met. It found that the project would have further benefited from some improvements in relation to the project plans, risk management, fraud prevention, the development of a monitoring and review framework and the development of an outcome realisation strategy. Some minor delays occurred in the early works of the NVIRP2 project; however, new timelines for completion of NVIRP2 and NVIRP2 on-farm milestones have since been agreed.

Internal audit report—good start review of the Office of Water Science

A review of the Office of Water Science (OWS) was conducted from August to September 2012 by PricewaterhouseCoopers to ensure that any risks associated with the OWS governance structure and operations, establishment of the Statutory Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development and compliance with statutory and legislative requirements were being adequately addressed. The review identified minor areas of improvement and made recommendations regarding some areas of OWS management. All the recommendations were agreed and appropriate actions were undertaken to address each recommendation.

Internal audit report—review of Stormwater Harvesting and Reuse Grants Round 3

PricewaterhouseCoopers conducted an internal audit of this grants round between September and October 2012 as part of the Strategic Internal Audit Plan 2012–13. The audit aimed to determine whether appropriate processes and supporting procedures were in place to facilitate effective management and governance and to assess whether the project management and grant administration practices were consistent with the department’s project management and grant administration frameworks. It focused on how the lessons learnt from earlier rounds were used in the management of the third round of grants.

Overall the review found that the third competitive grants round had been managed in accordance with the requirements stipulated by the department’s project management and grant administration frameworks and that appropriate processes and supporting procedures were developed and utilised to enable the effective management and governance of the project. The audit identified areas where improvement in project management and grant administrative practices should be considered in the future.

Great Artesian Basin Sustainability Initiative phase 3 mid-term review

An evaluation of phase 3 of the Great Artesian Basin Sustainability Initiative (GABSI3) was undertaken for the department in February 2013. The evaluation used information gained from a literature review and analysis of responses from a stakeholder engagement. It focused on:

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  the efficiency and effectiveness of the Commonwealth and state management/delivery arrangements in place to meet GABSI3 objectives and outcomes
  
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  the efficiency and effectiveness of the reporting requirements of the Commonwealth and the contract arrangements/protocols between the Commonwealth and the states
  
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  key achievements of GABSI3, progress towards objectives and identification of any deficiencies to date.
  

Great Artesian Basin coordinating committee review

Sinclair Knight Merz provided the department with an independent review of the role and operating arrangements of the Great Artesian Basin Coordinating Committee (GABCC) in February 2013. The evaluation involved a desktop review of existing arrangements of the committee, extensive stakeholder consultation and an evaluation of future options.

The review found that stakeholders held favourable views of the effectiveness of the GABCC. There were some mixed views on issues such as the appropriateness of its structure, roles and responsibilities.

Australian National Audit Office—audit of grants for the construction of the Adelaide Desalination Plant

The Australian National Audit Office (ANAO) conducted an audit to assess the awarding of funding for the construction of the Adelaide Desalination Plant (ADP) against the requirements of the Commonwealth grants administration framework. The audit followed a request from South Australian Senator Simon Birmingham, shadow parliamentary secretary for the Murray–Darling Basin and the environment, to the Auditor General. The audit, submitted in May 2013, specifically looked at:

the assessment by relevant agencies of the merits of awarding Australian Government funding for the construction of the ADP project

the provision of departmental advice to ministers

the development of agreements signed in respect of approved grant funding.

The Auditor made findings in relation to the decision making process and recommended that, for grant spending proposals that result from election commitments or arise other than through a competitive process, the department should promote the achievement of value for money by:

clearly informing decision makers about the extent to which a proposal meets the program assessment criteria

applying cost–benefit analysis as a key input to its advice on decisions about whether to provide Australian Government funding towards public infrastructure projects

providing ministers with other options should they wish to pursue funding for proposals that are not consistent with the guidelines for the relevant grant program.

Results for Deliverables and Key Performance Indicators

Program 4.1: Water Reform

Deliverables	2012–13 Results
In delivering Outcome 4 the department will work with states, territories, communities, industry and partner organisations through a range of interlinked programs and activities, including:
Delivering agreed water reforms under the 2004 National Water Initiative, COAG’s national water reform agenda, the Water Act 2007 and the 2008 Intergovernmental Agreement on Murray–Darling Basin Reform.	On 11 April 2013 COAG’s Standing Council on Environment and Water (SCEW) agreed to submit to COAG an enhanced water reform agenda building on the National Water Initiative, including a work plan for the next five years. The SCEW released a consultation regulation impact statement on the potential regulation of water market intermediaries. The statement reviewed options to manage the risk of any misconduct by intermediaries to the integrity of Australian water markets. The SCEW also approved modules 1 to 4 of the Aquatic Ecosystems Toolkit to identify, classify, delineate and describe high ecological value aquatic ecosystems. (Module 5 Integrated Ecological Condition Assessment Framework is under development.) The multijurisdictional water quality policy subgroup under the COAG Water Thematic Oversight Group was established to oversee implementation of the strategic directions for the future of the National Water Quality Management Strategy.
	On 22 November 2012 the Basin Plan, a legislative instrument under the Water Act 2007, was adopted to provide an integrated strategic framework for water reform to ensure that the Murray–Darling Basin’s water resources are managed by all levels of government in a coordinated and sustainable way. Implementation of the Murray–Darling Basin Plan is supported by an Intergovernmental Agreement and National Partnership Agreement which entered into force on 5 June. At 30 June it has been signed by the Commonwealth, Victoria, South Australia and the Australian Capital Territory. To assist in the implementation of Murray–Darling Basin reform, two amendments to the Water Act were made in 2012–13. The Water Amendment (Long-term Average Sustainable Diversion Limit Adjustment) Act 2012 enables the long-term average Sustainable Diversion Limits set by the Basin Plan to be adjusted within clearly defined limits without invoking the formal Basin Plan amendment process, and the Water Amendment (Water for the Environment Special Account) Act 2013, which amends the Act to establish the Water for the Environment Special Account pursuant to section 21 of the Financial Management and Accountability Act 1997. On 10 October 2012 the Minister for Sustainability, Environment, Water, Population and Communities made amendments to the Water Market Rules 2009 and Water Charge (Termination Fees) Rules 2009 to address technical issues that arose during implementation. The amendments provide clarity for irrigation infrastructure operators and irrigators in the Murray–Darling Basin about how the rules operate.
Advising the Minister on tabling of the Murray–Darling Basin Plan (the Basin Plan) in Parliament.	The department undertook significant work with basin governments and the Murray–Darling Basin Authority to help deliver the Basin Plan that was adopted on 22 November 2012. It also worked with basin governments to develop the Intergovernmental Agreement on Implementing Water Reform in the Murray–Darling Basin 2013 and an associated national partnership agreement, which are now in effect.
Investing in infrastructure with state and territory governments, industry and communities across Australia for urban and rural community water infrastructure.	The National Urban Water and Desalination Plan invested $116 million in urban water infrastructure during 2012–13. The National Water Security Plan for Cities and Towns invested $56 million to upgrade older water systems, install new infrastructure and support practical projects that save water or reduce water losses during 2012–13. The Strengthening Basin Communities Program invested in over 57 projects across the Murray–Darling Basin, enabling local government authorities and urban water providers to support projects that improve water security by reducing demand on potable water supplies.
Developing and adopting new technologies to improve water use efficiency and ensure greater water security.	There are currently 23 research projects underway at the Australian Centre of Excellence in Water Recycling which was established in 2009–10. There are currently 42 research projects underway at the National Centre of Excellence in Desalination which was established in 2009–10. The bulk of the research projects are due for completion before June 2016.
Funding communities and irrigation providers to support more efficient water management, with water savings to be shared between the communities, irrigators and the environment.	The Sustainable Rural Water Use and Infrastructure Program (SRWUIP) is a national program investing in rural water use, management and efficiency, including water knowledge and market reform. In 2012–13, $566.6 million was invested in projects under this program. At 30 June 2013, $5.4 billion had been committed nationally, with over $5.2 billion committed to projects within the Murray–Darling Basin. More than $1.75 billion has been expended since the commencement of the program in 2007–08. At 30 June 2013, 344 gigalitres (long-term average annual yield – LTAAY) had been recovered from SRWUIP projects which will count towards the reduction in surface water diversions needed to reach the Sustainable Diversion Limit. This included an additional 72 GL LTAAY that was recovered from SRWUIP projects during 2012–13. A further 34 gigalitres (including groundwater) of environmental water had been secured from SRWUIP projects.
Help to meet the Sustainable Diversion Limit specified in the Murray–Darling Basin Plan by recovering water for environmental use through water purchase and infrastructure initiatives.	At 30 June 2013 investments made through Restoring the Balance in the Basin and SRWUIP for water infrastructure projects had recovered 1480 gigalitres (Long-Term Average Annual Yield (LTAAY)) which will count towards the Sustainable Diversion Limit under the Basin Plan. In total, 1658 gigalitres had been recovered by Australian and State Government programs towards the Sustainable Diversion Limit reduction target.
Help urban communities and businesses use water resources more efficiently and better secure water supplies for cities and towns by investing with states, territories and communities in upgraded infrastructure.	Under the National Urban Water and Desalination Plan $116 million was invested in urban water infrastructure during 2012–13. These investments in desalination, water recycling and stormwater harvesting and re-use contribute to securing the supply of water for cities and towns by upgrading infrastructure and diversifying water sources. Under the National Water Security Plan for Cities and Towns, investments focused on delivering improved water recycling, re-use and metering infrastructure in cities and towns.
Completing the design and commence building of the Common Registry Solutions under the National Water Market Systems Program.	A project implementation partner was contracted on 3 September 2012 to commence the Common Registry Solutions. The first stream of work under the contract—a solutions architecture design developed in collaboration with jurisdictions—was completed on 30 June 2013.
Supporting key bilateral country partners to improve their water management and promote Australia’s interests in international bodies.	The department hosted a number of international delegations during 2012–13, including a senior Indian delegation attending the Indian–Australian Joint Working Group on Water Resource Management from 29 April to 3 May 2013, and the 3rd Australia–China High Level Water Policy Meeting in May 2013 in Canberra. These meetings further promoted high-level water policy linkages and information exchange on water management issues of mutual interest.
Developing a National Wetlands Policy Statement.	The department is working with states and territories to develop the policy. Input was sought from peak national organisations, professional associations and researchers through a questionnaire and a stakeholder forum held in May 2013. A consultation document will be available for public review in 2013–14.
Implementing the findings of the National Water Quality Management Strategy Review in conjunction with the states and territories.	Following the review of the National Water Quality Management Strategy (NWQMS), states and territories supported the proposed strategic directions for the future of the NWQMS. Implementation of the strategic directions commenced in 2012–13 will continue during 2013–14 and will be overseen by the recently established multijurisdictional Water Quality Policy Sub Group under the COAG Water Thematic Oversight Group.
Continuing to work with states, territories, landowners and community groups to improve the management of rivers, wetlands and freshwater ecosystems particularly those of national and international importance.	To enhance the implementation of the Ramsar Convention on Wetlands in Australia the department published Australian Ramsar Site Nomination Guidelines and a series of wetland fact sheets, and completed a number of ecological character descriptions and Ramsar information sheets for Australia’s wetlands of international importance. Australia attended and contributed to the Ramsar Conference of the Contracting Parties in July 2012 and the Standing Committee of the Ramsar Convention in April 2013. The department provided advice on 63 referrals under the EPBC Act relating to Ramsar wetlands. The department worked with the South Australian Government to designate Piccaninnie Ponds Karst Wetlands as Australia’s 65th Ramsar site. The department funded the Great Artesian Basin Water Resource Assessment, a $6.25 million research project undertaken by CSIRO and Geoscience Australia to update the understanding of the geology and hydrogeology of the Great Artesian Basin. In the first three years of the third five-year phase of the Great Artesian Basin Sustainability Initiative (funded jointly by the Australian, Queensland, New South Wales and South Australian Governments) 116 bores have been controlled, 2826 kilometres of open bore drains have been deleted, 4216 kilometres of piping have been installed and 27 674 megalitres of water per annum have been recovered. On 27 March 2013 the two and a half year Great Artesian Basin Research Assessment was released. The Waterbirds in the Lake Eyre Basin (1983–2012) Report, together with data obtained from ongoing monitoring of hydrology, fish and water quality indicators as part of the Lake Eyre Basin Rivers Assessment Implementation Plan, will provide important input into the next assessment of the condition of the rivers and catchments of the Lake Eyre Basin.
Commissioning of bioregional assessments for priority regions to ensure understanding of the potential impacts of coal seam gas and large coal mining development. A standard approach will ensure compatibility across bioregional assessments.	The methodology for bioregional assessments of the impacts of coal seam gas and coal mining development on water resources was developed, peer reviewed (both nationally and internationally) and endorsed by the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development. This methodology will ensure a scientifically robust and transparent process is undertaken, providing consistency across bioregional assessments while enabling appropriate customisation to represent the differing subregions’ circumstances. Interagency collaboration, involving the department, Bureau of Meteorology, CSIRO and Geoscience Australia, was formally agreed and work commenced on detailed planning for all subregions. Projects to identify water-dependent assets were undertaken by 29 natural resource management bodies across three states, providing local data which forms the basis of bioregional assessments. Progress commenced on technical products for four priority subregions including Namoi, Galilee, Gloucester and Clarence. Work on a prototype for an information platform to house the technical products for bioregional assessments was advanced.
Commissioning a research program to improve knowledge of the potential impacts of coal seam gas and coal mining on water resources on behalf of the statutory committee.	The statutory committee considered knowledge gaps and potential research priorities. The agreed priorities are designed to inform future research investments and projects commissioned by the government investigating the potential impacts of coal seam gas and coal mining on water resources. Progress was made on the 31 agreed research and knowledge projects undertaken on the advice of the Interim Independent Expert Scientific Committee. The department will continue to manage the delivery of these projects through to completion, expected to be in 2013 and 2014.
Facilitating advice provided by the statutory committee on relevant EPBC Act and state referrals, in accordance with the National Partnership Agreement on Coal Seam Gas and Large Coal Mining Development.	The department assisted in the development of the Independent Expert Scientific Committee Information Guidelines which provide an understanding of the relevant water related information needed to provide robust scientific advice on proposals relating to the development of coal seam gas and large coal mines. These guidelines were published on the Committee’s website in February 2013. The department also facilitated the referral of projects from Commonwealth and Queensland government regulators and developed supporting information to assist the committee in its deliberations on 23 proposed coal seam gas or large coal mining development proposals.
Communicating and making publicly accessible the role of the Committee and its findings.	In collaboration with the committee, the department developed, established and maintains the Committee’s website: www.environment.gov.au/coal-seam-gas-mining. This publicly accessible website includes a fact sheet on the statutory Committee’s role: www.environment.gov.au/coal-seam-gas-mining/pubs/committee-factsheet.pdf The department regularly updates the website with information on the Committee’s meeting research priorities and its advice on development proposals and bioregional assessments.

Deliverables (continued)	2012–13 Budget Target	2012–13 Results
Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development meetings held.	11	The statutory Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development (Statutory Committee) has met monthly since it was established in November 2012, following the delayed passing of the enabling legislation. A total of seven meetings of the statutory committee had been held to June 2013. Before the enabling legislation was passed, the Interim Independent Expert Scientific Committee on Coal Seam Gas and Coal Mining (Interim Committee) met monthly.
Percentage of research projects commenced within 60 days of approval by the minister.	100	This has been achieved: 100% of research projects were commenced within 60 days of approval by the minister. These research projects were identified, by the Interim Committee, as significant in addressing key knowledge gaps of the impacts of coal seam gas and coal mining developments on water resources. The department continues to proactively manage the implementation of these projects through to their conclusion in 2014.

Key Performance Indicators	2012–13 Results
Total water recovery from water purchases, contracted efficiency measures and state activities, exceeds 1560 GL towards meeting the Sustainable Diversion Limit under the Basin Plan.	At 30 June 2013 the total water recovery which helps reduce diversions to the Sustainable Diversion Limits is 1658 gigalitres LTAAY.
Completion of 28 urban water projects by 30 June 2013 that yield a total, in excess of 110 GL per year, of additional water supply capacity.	Twelve projects were completed during 2012–13. These projects have the combined capacity to yield in excess of 180 GL per year. Under the National Water Security Plan for Cities and Towns, 49 projects were completed in 2012–13 with a combined capacity to yield 25 GL per year of potable water savings.
By 30 June 2013 bioregional assessments to determine the potential impacts of coal seam gas and large coal mining development on water resources, have commenced for five priority regions.	During 2012–13 work was undertaken by 29 natural resource management bodies to identify water-dependent assets, which will feed into work on the five priority regions. The methodology for bioregional assessments of the impacts of coal seam gas and coal mining development on water resources was finalised in the final quarter of 2012–13, providing the necessary basis for commencing work. Overarching contractual arrangements have been agreed for the program, and technical work by partner agencies has commenced for some subregions.