Amending the Water Allocation Plan for the River Murray Prescribed Watercourse 2 Proposed conclusion of prior commitment in the salinity zoning policy This paper outlines the conclusion of prior commitment in relation to the salinity zoning policy and how it has been incorporated into the draft Water Allocation Plan for the River Murray Prescribed Watercourse (the plan). Background into salinity management and the options considered for the plan are also detailed in this paper. The Board is keen to hear what you think of the draft plan. What has been included in the draft plan? Why was this option chosen? How does this change from the current plan? What does this mean for me? How can I provide feedback on this proposal? 5-Dec-14 The River Murray salinity zoning policy has been incorporated into the draft plan, with a six month grace period before the conclusion of prior commitment claims. Prior commitment was intended as a transitional policy. As the salinity zoning policy has been in place for 10 years it is appropriate to conclude the policy. This will free up salinity credits which were quarantined for prior commitment claims that may not eventuate. The application process for new site use approvals will also become more transparent. The current plan includes two principles around salinity management, but the policy for implementing these principles has sat outside of the plan. In practice the salinity zoning policy has been operating since 2003, including it in the plan will be more transparent to River Murray users. The prior commitment component of the salinity zoning policy will be concluded following a six month grace period from the date of adoption of the plan. After this period, prior commitment claims will no longer be assessed. This will ensure there is no net increase in the volume of water authorised to be used in the High Salinity Impact Zone. The River Murray salinity zoning policy will continue to be implemented through site use approvals, and applications will continue to be assessed in line with the salinity zoning policy. You are invited to provide feedback on the draft plan until the close of formal consultation on 27 February 2015. Written submissions can be made: Online: www.naturalresources.sa.gov.au/samurraydarlingbasin Via email: [email protected] By post: Peta Brettig, Senior Project Officer, River Murray WAP Natural Resources SA Murray-Darling Basin GPO Box 2834, Adelaide SA 5001 Or contact Peta to discuss: Peta Brettig 8463 6877 / 0439 824 477 Page 1 of 6 Key points Related papers The Salinity Zoning Policy was approved in 2003 to maximise potential for irrigation development along the River Murray, while ensuring South Australia can meet its obligations to the Murray-Darling Basin Authority (MDBA). South Australia is a signatory to the Murray-Darling Basin Agreement – Schedule B and is obliged to maintain a positive balance on the salinity registers. Prior commitment provisions were a transitional arrangement upon the introduction of the salinity zoning policy. As the Salinity Zoning Policy has been in place for 10 years, the draft plan includes provisions to conclude prior commitment provisions following a six month grace period from the date of adoption of the plan. Paper 1: River Murray salinity zoning policy Paper 3: Undocumented panel assessed prior commitment claims and salinity management Background As groundwater discharges to the River Murray, it delivers large amounts of salt to the river channel. This is a natural process but the clearance of native vegetation and irrigation has increased drainage to the underlying groundwater, accelerating the movement of salt into the river. The South Australian Government manages salinity in the River Murray at an acceptable level through salt interception schemes and the Salinity Zoning Policy. The objective of the Salinity Zoning Policy is to maximise the potential for irrigation development, while ensuring that South Australia’s balance on the basin salinity management salinity registers remains in credit. These mechanisms help fulfil South Australia’s obligations as a signatory to Schedule B of the Murray-Darling Basin Agreement (Schedule 1, Water Act 2007 (Cwth)). Under this agreement, South Australia is accountable for any actions that increase or decrease salinity impacts on the River Murray. This includes irrigation development. The Salinity Zoning Policy establishes three salinity impact zones: high, low and high (salt interception). Each of these 3 zones has rules relating to authorisation of applications for new irrigation developments and uses a system of credits and debits to offset salinity impacts of irrigation development. In all zones, the proposed water use must be fully offset before the site use approval is granted. The exception is if an applicant can prove that they were financially or legally committed to a development prior to commencement of the interim Salinity Zoning Policy on 30 June 2003, then the application may be approved to proceed (this is commonly referred to as prior commitment). Prior commitment was included in the River Murray Salinity Zoning Policy as a transitional measure to manage the issues arising from the introduction of a new policy. Current policy Prior commitment ensured that entities that had made significant financial, legal or other commitment to a development prior to 30 June 2003 within the high salinity zone could proceed with the development. There are three forms of prior commitment (Refer to Attachment 1 for further detail): 5-Dec-14 Page 2 of 6 Panel assessed prior commitment (PAPC): a process through which applicants can apply for an exemption for new development citing significant financial, legal or other commitments at the time the policy was introduced (30 June 2003); Mature crop water requirement prior commitment (MCWRPC): a process where applicants apply for an exemption on the basis of the Mature Crop Water Requirement of the permanent crops planted prior to the introduction of the Policy; and Maximum level of development prior commitment (MLDPC): this permits entities with annual crops to apply for an exemption equal to their historical maximum area of plantings before 30 June 2003. Proposed policy The panel assessed prior commitment, mature crop water requirement prior commitment and maximum level of development prior commitment are now considered no longer required due to: The diminished ability of entities to demonstrate a significant financial or legal commitment to a development pre 2003 due to elapsed time; All commonly grown permanent crops planted during or prior to 2003 having reached maturity, making the mature crop water requirement prior commitment redundant; and Most annual crop growers have returned to their maximum volumes (maximum level of development) based on pre 2003 development levels and having taken action to increase their site use approval to reflect the volume of water for irrigation required. It is recommended to remove prior commitment provisions. There will be no net increase in the volume of water authorised to be used in the High Salinity Impact Zone. The conclusion of prior commitment will result in a simplified application process for irrigators. In addition, salinity credits on the Basin Salinity Management Strategy salinity registers will no longer be quarantined for potential prior commitment claims that may not eventuate and will be available for new irrigation development in the Low Salinity Impact Zone. It is proposed that water users in the High Salinity Impact Zone be advised of the proposed policy change and given an opportunity to submit an application if applicable within a grace period, in which they may apply to benefit from the exemption prior to its removal from the policy. A grace period of six months has been incorporated into the recommended option below. This approach will not impact on the trading of water allocations or entitlements, but will cap the volume of water which may be applied in the High Salinity Impact Zone. This reflects the intent of the Salinity Zoning Policy to ensure no net increase in salinity impact within the high impact zone. The conclusion of prior commitment will also provide a greater number of credits for irrigation development in the low salinity impact zone. Once a panel assessed prior commitment claim is approved, the site use approval holder must apply to increase their site use approval maximum irrigation volume to correspond to that volume approved as part of their prior commitment (through the completion of an S2 form). There are a number of outstanding panel assessed prior commitment claims which remain inactivated. These are discussed in Paper 3, Undocumented panel assessed prior commitment claims and salinity management. 5-Dec-14 Page 3 of 6 Proposed conclusion of prior commitment in the salinity zoning policy OPTIONS Change the prior commitment claims policy and notify site use approval holders that they have 6 months to activate their prior commitment claim ADVANTAGES Salinity credits are made available to the general salinity credit pool Appropriate time to conclude, given it has been 10 years since the salinity policy implemented Consistent with the fact that prior commitment was intended as a transitional policy DISADVANTAGES Limits the amount of time site use approval holders have available to apply for a prior commitment Some people may want a longer grace period Prior commitment can be removed from the plan, which will provide a more transparent application process for new site use approvals Retain prior commitment policy and review in 2019 Automatically cease the prior commitment policy 5-Dec-14 Allows for development to proceed in the high salinity impact zone if the prior commitment can be validated Will reduce the area of irrigation which can be developed with the credits available Site use approval holders have the option of applying for prior commitment in addition to the option of conjunctive applications in the high salinity impact zone Easy to administer Claims will be increasingly difficult to assess given time passed All credits in the general pool would be available for use in the low salinity impact zone Does not allow people to finalise their prior commitment claim Page 4 of 6 FEEDBACK Feedback on the draft plan is invited up until 5pm, Friday 27 February 2015. Written submissions can be made: Online: www.naturalresources.sa.gov.au/samurraydarlingbasin Via Email: [email protected] By post: Peta Brettig Senior Project Officer, River Murray Water Allocation Plan Natural Resources, SA Murray-Darling Basin GPO Box 2834 ADELAIDE SA 5001 Or contact Peta to discuss: Phone: (08) 8463 6877 Mobile: 0439 824 477 5-Dec-14 Page 5 of 6 Attachment 1 Panel Assessed Prior Commitment In the event an entity applies to vary their site use approval (SUA) for the purpose of a new development, an assessment would be undertaken by a Panel. Commitment to the development needed to have taken place by the applicant before 30 June 2003 and a significant part of the commitment needs to have taken place after 1 July 2001 and proof of this commitment must be provided in documentation. Mature Crop Water Requirement Prior Commitment (MCWRPC) – permanent crops If an entity applies to vary their site use approval to increase the water available for their existing permanent crop (planted before 30 June 2003) as it matures, they undergo an internal assessment by DEWNR Customer Service Staff. Detailed aerial photography and crop surveys collected in 2003 provide a baseline for assessment from which to compare the application and make a determination as to whether the crops did exist at 30 June 2003 and what their mature crop water requirement would be. Since 2003 all commonly grown crops in the South Australian Murray-Darling Basin (SAMDB) are considered to have reached maturity1. Maximum level of development prior commitment (MLDPC) – annual crops In the event an entity applies to vary their site use approval to increase the water available for their existing annual crop, they undergo an internal assessment by DEWNR customer service staff. Departmental records including aerial photography are used to determine the maximum development level for that entity prior to 30 June 2003. The current Water Allocation Plan for the River Murray Prescribed Watercourse provides adjustment values for Crop Factors Appendix C, Table 4. 1 5-Dec-14 Page 6 of 6
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