Keynote
address: Howard Fancy, Acting Secretary
for the Environment
Thank you for the invitation
to be here today.
The work you are all
doing in the environmental area is very
important to the future of regions and the
country. I also appreciate how challenging
the work can be and the degree of complexity
that can be involved. The leadership of
those here today is a real credit to you.
I would also like to
acknowledge the work being done by ICLEI
with local government. This is supporting
the leadership roles of mayors and councils
by assessing the level of local government
green house gas emissions and helping to
find ways to reduce them.
The CCP-NZ programme
is a good example of New Zealand’s responses
to climate change and the important role
of local government in the overall response.
The 31 member councils
involved in the CCP programme clearly show
how seriously local government is taking
the concerns about climate change.
The importance of a
high quality environment
A high quality environment is central to
New Zealand and being a New Zealander.
It is central to our
identity and to the quality of life in this
country.
It is integral to our
international reputation and to our overall
competitive advantage.
With New Zealand so
heavily reliant on its natural environment
for its economic wellbeing we will benefit
from having one of the highest levels of
environmental quality in the world.
As we get better at
collecting a wider range of environmental
indicators, New Zealand’s clean green image
will come under increasing scrutiny and
some of the key challenges will become more
evident.
It will be important
that these challenges are addressed in a
coherent and strategic way because becoming
a low carbon intensive and high environment
outcomes country will require significant
changes in the practices of communities,
households, government and businesses.
Looking ahead from an
environmental perspective I see three big
challenges facing us.
Setting and sustaining
high environmental standards
The first challenge centres on the need
to set, meet, and sustain high environmental
standards in areas such as air, water, and
soil quality, the minimisation of waste,
and maintaining high levels of bio-diversity
and bio-security.
The State of the Environment
2007 report released this year is an important
part of the evidence base relating to New
Zealand’s environment.
It helps inform key
areas for priority. For example it identifies
that:
Ongoing growth of our
population has contributed to more consumption
of goods and services, increasing greenhouse
gas emissions, and the rising use of transport
and energy. The pressure on the environment
has been increased by farming and urban
intensification.
The amount of waste sent to landfill has
gone down and recycling rates are growing.
More land is under management for pest weeds
and animals. More land is being protected
for conservation than ever before.
Air quality in most areas is getting better.
Soil quality from some land uses has become
worse.
Discharges in our fresh water from single-point
sources (such as wastewater treatment plants,
meat works and farm effluent ponds) have
gone down. But nutrient levels in our fresh
waters have risen.
Some endangered species are recovering.
But the range of some native species has
decreased and some fish stocks have been
over-exploited.
A more explicit policy focus on setting
and meeting environmental standards is evidenced
through the development of National Policy
Statements and National Environmental Standards.
Meeting the challenge
of Climate Change
The second area of challenge lies in the
responses needed to reduce green house gas
emissions and adapt to the physical impacts
of climate changes.
Climate change requires
two different kinds of response.
The first is highlighted
by our need to meet our obligations under
the Kyoto protocol.
These represent a big
challenge to reduce our overall level of
emissions to 11000 levels. The task of meeting
our emission goals becomes bigger if the
economic growth and social development increases
emissions.
The Emissions Trading
Scheme (ETS) is one important part of the
response.
This will require the
economy as a whole to face a world price
for carbon and in doing so encourage different
sectors to limit and manage their emissions
in the most cost effective way.
But the ETS is only
one part of a much wider response to green
house gas emissions.
But a wider and more
integrated approach is also being put in
place.
A range of polices are
targeting the household, business, public,
forestry, energy, transport and farming
sectors in ways that are designed to encourage
and support those sectors to adopt practices
that will reduce the carbon intensity of
the economy.
Examples of this can
be seen in:
Information and measures
that target the household sector
The development of long term energy and
transport strategies
The work relating to housing and urban development.
The focus of agriculture policies
The work in local and central government
to move towards carbon neutrality.
A key point here is that many small but
early steps will add up over the next 20
years to a big difference.
The second response
centres on how we position ourselves to
respond to the unpredictable physical impacts
of global climate change that might be manifested
in terms of higher sea levels or more extreme
climatic fluctuations and variations.
Responses here will
include how we identify and manage different
kinds of risks and uncertainties. It will
include how we develop a greater resilience
to potential wide fluctuations and ranges
in rainfall and/or temperature patterns.
It will also include
how we best manage and minimise risks to
our bio-security and bio-diversity.
Successfully coping
with Climate Change and adjusting to higher
Environmental Standards
Meeting the goals of higher environmental
standards and effective responses to the
Kyoto protocol all add up to the third significant
challenge facing New Zealand – successful
coping by different sectors and by New Zealand
as a whole.
A key goal therefore
centres on how New Zealand over the next
few decades can become a significantly lower
carbon intensity/ high environment outcome
country, while still continuing to experience
strong economic growth and positive social
development.
To do this well requires
significant changes in behaviours and economic
relationships.
Effective responses
will require the household, business, and
government sectors to significantly reduce
emissions and significantly moderate their
impacts on the environment over the next
few decades.
To achieve this and
sustain strong growth, for example, will
require a substantial decoupling from the
historical relationships between energy
use and economic growth.
It will require farmers
to modify their practices in ways that not
only reduce emissions of green house gases
but also significantly reduce the leaching
of nutrients into waterways. The adoption
of nutrient budgets is one important response.
It will require different
and more effective approaches to the management
of waste.
It will require houses
and households to become much more energy
efficient.
It will require much
greater investment in renewable energy and
more energy efficient transport.
In the public and local
government sectors moving to become carbon
neutral represents a big shift.
This will not only require
investing in offsets but also a major rethinking
of how we do business, how we travel, how
we use energy, and what we purchase.
The key to successfully
transforming to a low emission economy will
lie in changing the investment patterns
and the development and the adoption of
new technologies into the economy.
Thinking about change
over several decades should not detract
from the need for urgency and making every
decision count.
We need to work at several
levels. We should not make future problems
bigger. We need to develop offsets and we
need to invest in ways of coping with higher
environmental standards.
Effective responses
will require good strategic thinking and
good front end design of processes and products
and good system thinking.
It will require decisions
to be framed within a timeframe that may
extend over several decades.
The culmination of many
good decisions taken over many years will
help make the biggest difference with the
least disruption.
Central to sustainable
economic and social development will be
the need to effectively and successfully
embed and integrate environmental considerations
into the decision making of individuals,
households, businesses, government and farming.
For example, minimising
waste will depend heavily on improving the
design of many products and services.
Much higher energy efficient
housing in the future will depend critically
on improving the design of today’s new houses,
towns and cities. It is likely to be more
cost effective in many cases building environmental
considerations into the front end design
of houses than facing the cost of retrofitting
in the future.
In the agricultural
sector, substantial reductions in environmental
impact will occur from the roll out of new
technologies, like nitrification inhibitors.
Investment in research
will be important. But so will investing
in identifying understanding effective practices
and extending these practices more widely.
Good investment and
strategies create the potential for win/wins.
For example, good environmental
practices can create economic value for
businesses.
They can create new
business and export opportunities for New
Zealand firms.
Good environmental practices
in households can mitigate the effects of
higher energy costs by energy consumption
and improving health.
This world of sustainable
development has significant implications
for the Ministry for the Environment and
for local government.
For the Ministry for
the Environment our focus has broadened
enormously in the past few years.
We are expected asked
to have a more explicit view of the future
environmental outcomes that are important
to New Zealand’s economic and social future.
This is being reflected
not only in investments such as ENZ07 but
also in a growing number of national policy
statements and development of national environmental
standards.
Five years ago we worked
in relative isolation from the work of the
major economic and social agencies.
Today we are heavily
involved in a wide range of policy areas
led by different Ministers.
We are now expected
to have a strong focus on, and understanding
of, the nature of the changes facing the
different sectors, and different regions,
and different communities of New Zealand
and the best approaches to modifying their
ways of operating over future years.
Our focus has become
much more international with the international
dimensions of our work having expanded substantially
as New Zealand participates in many global
environment fora.
Within the public sector
we are taking a lead role in the development
of a carbon neutral public service. We are
also helping create an infrastructure that
provides good information, test beds, good
labelling, standards and procurement.
We are working with
other agencies to help develop strategies
and indentify effective practices that will
help meet the goal of carbon neutrality.
As a small agency of
around 300 staff that is being asked to
make a big difference is requiring us to
confront in quite a fundamental way how
we work.
We need to be more strongly
outcome driven.
We need to work increasingly
in more highly networked ways.
We need to be much more
strategic in terms of how we influence.
We need to develop wider
understandings of the issues affecting different
sectors and how we work with them to create
win/wins.
While our perspective
is national and international many of the
issues we face are common to those being
faced by you at local and regional government
levels.
You need to address
issues of responses and adaptation at a
local level and build them into your decisions
and your strategies.
The decisions you take
in terms of the development of your local
and regional authorities can have a big
influence over time on environmental and
climate change outcomes.
All of this highlights
the importance of the relationship between
local government and the Ministry for the
Environment.
We need to understand
the nature of regional and local differences
in terms of the importance of moving to
higher environmental standards or assessing
the physical impacts of climate change.
We need to learn from
each others experiences.
We have been pleased
to have been able to support councils and
their progression through the CCP programme
– from measuring emissions to implementing
reduction programmes to realising and quantifying
the benefits.
Looking ahead it will
continue to be important that we continue
to work closely to together to ensure that
our respective responsibilities and roles
are focussed on the things that matter most.
And that we complement
and reinforce each other’s work to the greatest
extent possible.
Conclusion
Conferences like this are important to the
future and to finding the most effective
ways of coping with the future.
But more than this they
highlight the active role of leadership.
We don’t have much choice
but to position ourselves for a different
future.
By taking the leadership
role that so many councils are showing is
really important.
This helps move people
forward. It helps innovative responses to
develop that will help find cost effective
ways of moving to a lower carbon intensity
world while at the same time supporting
the ongoing development of your communities.
The work you are doing
to reduce your carbon foot prints and reach
higher environmental outcomes is great to
see.
So is your willingness
to share experiences and learn from each
other - keep up the good work and best wishes
for the future!
Cabinet paper: Report
back on development of national environmental
standards for electricity transmission
Office of the Minister
Cabinet Policy Committee
Proposal
This paper reports on progress with the
development of national environmental standards
for electricity transmission (NES). It proposes
that the timeframes be extended so that
key issues raised during the public consultation
can be properly addressed and so that the
proposals can be tailored to assist councils
implement the National Policy Statement
on Electricity Transmission (NPS).
Executive summary
The discussion document
(Proposals for National Environmental Standards
for Electricity Transmission) was released
in October 2007 for public consultation.
It contained proposals for two national
environmental standards (NES) under the
Resource Management Act 1991:
The transmission activities
NES, which would provide for the efficient
use, maintenance and upgrading of the existing
transmission network by clarifying resource
consent requirements for these activities;
and
The transmission risks NES, which would
protect electricity transmission lines from
inappropriate third-party activities.
The submission period
closed at the end of November 2007. Eighty-four
submissions were received. There was a good
rate of response from local government,
particularly from regional councils.
The Ministry for the Environment has analysed
the submissions and published a summary
of submissions. Most of the comments on
the transmission activity NES related to
the workability of the proposals. However
nearly half of the submitters opposed the
proposed transmission risks NES on the grounds
that it would impose additional costs on
councils and landowners.
The issues raised by
submitters are complex and will take time
to resolve. The transmission activities
NES as proposed, comprising 42 separate
regulations, will be the most detailed and
comprehensive NES so far. In its final form
this NES (in combination with the NPS) would
in effect be a “national plan” addressing
all aspects of the operation, maintenance
and upgrade of transmission lines, and will
over-ride significant sections of district
plans.
It is vital for councils
to support and understand the standards,
as councils will have the job of implementing
them. It is critical to get the NES right,
that they be workable, and deliver benefits
without imposing unnecessary costs.
The NPS on Electricity
Transmission took effect on 10 April 2008,
and councils have four years to review or
change plans to give effect to its provisions.
A well drafted set of NES could assist councils
implement the NPS. Consultation with local
government is underway to discuss the implementation
of the NPS and how NES could assist in this
process.
Whilst the proposed transmission activities
NES requires further detailed work, I consider
that it will benefit the national grid and
should be completed and implemented. It
will provide a consistent national framework
of resource consent requirements which provides
for the operation, maintenance and upgrade
of existing transmission lines and takes
into account operational requirements.
As for the proposed
transmission risks NES, I have asked the
Ministry for the Environment to re-evaluate
it in the context of the NPS requirements
and reasons given by submitters for opposing
the proposals. The Ministry proposes to
evaluate a number of RMA and non-RMA options,
in consultation with key stakeholders. These
options include relying on guidance material,
a revised NES, strengthening electrical
safety requirements for activities around
transmission lines, RMA designations, or
negotiated easements with landowners.
On 2 July 2007, Cabinet
Business Committee noted the expectation
that the process of preparing standards
would be completed “within this parliamentary
term” [CBC Min (07) 13/14 refers]. However,
I will need more time to allow officials
to address the issues raised in submissions,
undertake further consultation on the proposals,
and to ensure that NES can assist local
authorities implement the NPS on electricity
transmission.
I will report back to
Cabinet by the end of August 2008 with detailed
proposals for the transmission activities
NES once the issues raised in submissions
are addressed by the Ministry for the Environment
Background
On 2 July 2007, the
Cabinet Business Committee agreed to the
release of a discussion document entitled
Proposals for National Environmental Standards
for Electricity Transmission for public
consultation, “with a view to the process
being completed within this parliamentary
term” [CBC Min (07) 13/14 refers].
The objective of the
NES proposals is to promote the sustainable
management of electricity transmission (the
national grid), ensuring there is national
consistency and adequate protection of the
grid. This supports the vision of the New
Zealand Energy Strategy, of “a reliable
and resilient system delivering New Zealand
sustainable, low emissions energy services”.
The discussion document
contained proposals for two national environmental
standards (NES):
The transmission activities NES, which would
provide for the efficient use, maintenance
and upgrading of the existing transmission
network to be undertaken by specifying activities
that do not have significant effects and
can be undertaken without the need for resource
consents, and specifying resource consent
categories for other activities; and
The transmission risks NES, which would
protect electricity transmission lines from
inappropriate third-party activities.
After completing a preliminary cost benefit
appraisal of the proposed standards, the
Ministry for the Environment released the
discussion document in October 2007, and
submissions closed at the end of November
2007. The Ministry has analysed the submissions
and published a summary of submissions.
Overview of submissions on draft NES
Eighty-four submissions were received. The
following figures contain a breakdown of
submissions. There was a good rate of response
from local government, particularly from
regional councils. Twenty four of the submissions
were from landowners. Figure 1 shows the
level of support for the standards.
Figure 1: Proportion of submissions, by
position, for each of the proposed standards
See figure at its full
size (including text description).
Proposed national environmental
standards for transmission activities
The breakdown of submissions by position
for the proposed transmission activities
NES shows that 44% of submitters supported
the proposals, as proposed or subject to
specific changes being made. Submitter comments
generally related to ways to make the proposed
NES more workable, including very detailed
comments on the proposed NES (comprising
42 separate regulations). Landowners opposed
the proposed NES because they believed that
the permitted activity provisions would
allow Transpower greater freedom of access
to private land (which they will not).
Key issues raised by
submitters on the specific proposals include:
The proposed NES listed those transmission
activities which would be permitted, and
specified resource consent requirements
for other transmission activities. Any activity
(including very minor activities) not specifically
listed would default to full discretionary.
The proposals are extremely
detailed and would over-ride provisions
of district and regional plans. Councils
are concerned about their ability to implement
the standards.
The proposed NES may
generate more resource consents for transmission
activities in some areas (for example by
not providing for minor discharges), which
is not desirable for councils or Transpower.
Other councils noted that the standards
would be more lenient than their plans.
The standards do not take enough account
of the sensitivity of the environment the
transmission activities will occur in –
for example the same provisions apply to
rural areas and populated urban areas.
The standards do not contain limits for
electric and magnetic fields.
The standards will prevail
over future designations, which could cause
confusion for councils and Transpower in
the future.
Proposed national environmental
standards for transmission risks
Only 8% of submitters supported the proposed
transmission risks NES as proposed, and
another 27% supported the standards in principle
but asked for significant changes.
Landowners universally
opposed these standards, as did many councils.
Key reasons were:
The proposed NES would impose restrictions
on land use near the transmission lines,
hence a reduction in land value, and there
will be significant costs and uncertainty
in obtaining resource consents.
The costs and resource requirements for
councils in enforcing and administering
the standards. Councils would be enforcing
electrical safety requirements in which
they have no expertise or experience (this
is currently undertaken by MED).
Cost savings to Transpower
would be transferred to landowners and councils,
and the proposal could create liability
issues for councils.
The relationship between future designations
and the proposed NES is proving to be problematic
and as currently drafted it may result in
more onerous requirements for other network
utility operators.
Submitters also questioned the evaluation
of options for addressing transmission risk
issues. Many saw the proposed NES as providing
Transpower with a de facto designation without
requiring landowner compensation, and suggested
that an easement arrangement would be a
better way.
Relationship with the
NPS on electricity transmission
The NPS for Electricity Transmission took
effect on 10 April 2008, and councils have
four years to review or change their plans
to give effect to the provisions. A well
crafted set of NES ought to assist councils
to implement the NPS. The NPS provides the
objective and policies, and the NES provides
the equivalent of plan rules.
Consultation with local government is underway
to discuss the implementation of the NPS
and how NES could assist in this process.
The final NPS contains
eight more policies than the proposed NPS.
It puts a greater onus on “decision-makers”
under the RMA to recognise and provide for
the effective operation, maintenance, upgrading
and development of electricity transmission,
and to recognise operational requirements.
The proposal for the transmission activities
NES covers these issues in part, but no
longer fits with the final NPS as neatly
as it did with the proposed NPS of May 2007.
The final NPS contains
two new policies requiring councils to “manage
activities to avoid reverse sensitivity
effects on the network”, and ensure the
network is not compromised. The NPS requires
councils, in consultation with the grid
operator, to identify a buffer corridor
where “sensitive activities will not be
provided for in plans and/or given resource
consent”. The proposed transmission risks
NES would need significant modification
to assist councils to implement these policies.
Next steps: transmission activities NES
The NES proposals and the issues raised
by submitters are complex and will take
time to resolve. The transmission activities
NES as proposed will be the most detailed
and comprehensive NES proposal so far, comprising
42 separate regulations. In its final form
this NES will in effect be a “national plan”
addressing all aspects of the operation,
maintenance and upgrade of transmission
lines, and will over-ride significant sections
of district plans.
It is vital for councils
to support and understand the standards,
as councils will have the job of implementing
them. It is critical to get the standards
right, that they are workable, and that
the Ministry for the Environment is able
to provide guidance to councils on how the
standards fit with the plans.
In order to formulate a robust set of regulations
for transmission activities, the Ministry
will need to:
Resolve legal issues around the basis of
the standards and relationship to designations
Work closely with local authorities in coming
up with a workable set of regulations which
assist them to implement the NPS policies
Assess the relevant provisions of a wider
range of plans against the final detailed
proposals to ensure that overall no additional
consent requirements are created
Complete a section 32 analysis, which requires
evaluation of whether the proposals are
the most appropriate way to achieve the
purpose of the RMA, taking into account
the costs and benefits of the proposed regulations.
Whilst the proposed transmission activities
NES requires further detailed work, I consider
that it will benefit the national grid,
if correctly developed and implemented.
It will provide a consistent national framework
of resource consent requirements which provides
for the operation, maintenance and upgrade
of existing transmission lines and takes
into account operational requirements.
In order to consider the views of submitters,
consult with local authorities and key stakeholders,
and produce a workable set of regulations,
the Ministry for the Environment have advised
me that they will need more time. I will
report back by the end of August 2008 with
detailed proposals for the transmission
activities NES.
Next steps: transmission
risks NES
I consider that submitters raised a number
of valid concerns, and I have asked the
Ministry for the Environment to assess whether
a regulation under the RMA is the correct
tool to address the effects of third party
activities on transmission lines. The evaluation
will take account of the reasons given by
submitters for their opposition to the proposals,
the provisions of the NPS regarding protection
of transmission lines, and wider sustainable
management issues including the effects
on land use of restrictions around transmission
lines.
It is the Ministry’s
intention to evaluate a number of RMA and
non-RMA options, in consultation with key
stakeholders. These options include:
Relying on non-statutory guidance to councils
on suitable plan provisions to implement
the NPS policies relating to protecting
transmission lines
A complete revision of the NES proposals
in light of the NPS
Strengthening the provisions and enforcement
of the Electrical Code of Practice for Safe
Distances, which provides for protection
to and from transmission lines by setting
out specific distance requirements
The use of RMA designations
Investigating the option of negotiated easements.
Consultation
The following agencies have been consulted
on this paper and their views taken into
account: Department of Building and Housing,
New Zealand Defence Force, Department of
Internal Affairs, Department of Conservation,
Land Information New Zealand, Ministry of
Agriculture and Forestry, Ministry of Economic
Development, Ministry of Health, Te Puni
Kokiri, Ministry of Transport, Treasury.
The Department of the Prime Minister and
Cabinet has also been advised about this
paper.
Submissions on the proposals
for the NES on electricity transmission
contained in the discussion document were
received from central and local government,
landowners, industry and Iwi. Further consultation
is proposed with local government, central
government agencies, and key stakeholders
in preparing final NES proposals for the
transmission activities NES and reconsidering
the approach to reducing transmission risks.
Financial implications
There are no financial implications arising
from this paper.
Human rights
There are no human rights issues arising
from this paper.
Legislative implications
Implementing the proposals will ultimately
require the preparation of regulations under
the Resource Management Act 1991.
Regulatory Impact Analysis
This paper is an interim report back on
progress and does not contain any new proposals.
A preliminary regulatory impact statement
was prepared on the public consultation
draft of the proposals for NES. A regulatory
impact statement will be prepared when the
final proposals for regulation are submitted
to Cabinet for approval in August 2008.
Gender implications and disability perspective
There are no gender implications for or
implications for people with disabilities
arising from this paper.
I propose to release a press statement outlining
progress on the preparation of national
environmental standards for electricity
transmission.
Recommendations
The Minister for the Environment recommends
that the Committee:
note that a discussion document proposing
two national environmental standards (under
the Resource Management Act 1991) for electricity
transmission was released for consultation
in October 2007.
note that the Ministry for the Environment
is revising the proposals for national environmental
standards for electricity transmission:
to take account of the ability of the proposed
national environmental standards to assist
councils implement the National Policy Statement
on Electricity Transmission within the four
year timeframe required
to consider the comments made by submitters
on the proposals and to consult further
with key submitters.
invite the Minister for the Environment
to report back by the end of August 2008
with detailed proposals for regulations
setting out consent requirements for electricity
transmission activities and establishing
permitted activity status for electricity
transmission activities that do not have
significant adverse effects.
note that the Ministry for the Environment
will re-consider the proposed transmission
risks national environmental standard and
re-evaluate alternative options in the context
of the requirements of the National Policy
Statement on Electricity Transmission and
issues raised by submitters.
note that the Minister for the Environment
intends to issue a press release outlining
progress on the preparation of national
environmental standards for electricity
transmission.
Hon Trevor Mallard
Minister for the Environment
