INSTITUTIONAL FRAMEWORK FOR EARTHQUAKE RESPONSE OF ENERGY SUPPLY IN NEW ZEALAND

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1 INSTITUTIONAL FRAMEWORK FOR EARTHQUAKE RESPONSE OF ENERGY SUPPLY IN NEW ZEALAND Tan Pham AC Consulting Group limited, P O Box 2934, Level 15, 142 Lambton Quay, Wellington, New Zealand tanp@acconsulting.co.nz Abstract This paper describes briefly the Institutional Framework for earthquake response of energy supply in New Zealand. It outlines the earthquake risk, the legal and cultural settings that shape the earthquake response of energy suppliers in New Zealand. Key words: Earthquake, Institutional Framework, Energy Suppliers, Earthquake Response. 1. Introduction New Zealand is situated on the boundary of the Pacific and Indo-Australian tectonic plates. In a typical year, about 200 earthquakes are felt in New Zealand and thousands of others are recorded on instruments. The Bay of Plenty Earthquake in 1987 (magnitude 6.3) caused widespread damage to the electrical network (1). Earthquake response by Energy Suppliers in New Zealand has been drive by the legal requirements (the Civil Defence Act 1983) (to be superseded by the Civil Defence Energy Management Bill), commercial interests and social obligations. This paper will focus on the legal and institutional aspects. 2. Energy Suppliers in New Zealand New Zealand has a number of energy sources namely: Biomass, coal, gas, geothermal, hydro, oil, solar and wind. Their usage is shown on Table 1. Energy Sources Biomass Coal Gas Geothermal Hydro Oil Solar Wind Usage Power generation Heating & power generation Heating & power generation plus transport. Heating & power generation Power generation Transport & power generation Heating & power generation Power generation Table 1 Usage of Energy Sources in New Zealand Energy is supplied by a number of energy suppliers with a mixture of private, government and community trust ownership as follows: Power generation companies, e.g. Contact Energy (private), Meridian Energy (government). Power transmission company: Transpower (government). Power distribution companies: e.g. United Networks (private), Powerco (trust). Oil companies e.g. BP, Mobil, Caltex (private). Gas companies, e.g. Natural Gas Corporation (private). Coal companies e.g. Solid Energy (government) 3. The Legal & Institutional Framework The Act dealing with earthquakes and other natural disasters in New Zealand is the Civil Defence Act 1983 (2). It is an Act to make 65

2 better provision for the performance by regional and territorial local government of their functions and duties and the exercise of their powers in relation to national emergencies and civil defence, to provide for planning and other responsibilities of Departments of State and other organisations in relation to national emergencies and civil defence, to provide for restoration and rehabilitation following civil defence emergencies and generally to consolidate, amend and replace the Civil Defence Act The Act is administered by the Ministry of Civil Defence (now Ministry for Emergency Management). Energy suppliers responsibilities are covered in the National Civil Defence Plan (NCDP) (3) that has been prepared by the National Civil Defence Committee as required by the Act. The National Civil Defence Committee is responsible to the Minister for the planning and preparation needed to maintain effective civil defence. The committee is supported by a number of planning committees and advisory committees on science, social studies and public education. One of these planning committees is the Energy Planning Committee. The composition of this committee is as follows: Chair: Representation from: Ministry of Economic Development Transpower (NZ) Ltd Contact Energy Ltd Genesis Power Ltd Mighty River Power Ltd Meridian Energy Electricity Engineers Association Natural Gas Corporation Infrastructure Management Gas Association of NZ Inc. Local Government New Zealand Ministry for Emergency Management The NCPD deals with a whole range of issues from Government Response (responsibilities of government) to Logistics, Fire Services and Energy. The above Energy Planning Committee has described the responsibility of the energy suppliers under the Act as follows (3): Principles 12. Primary responsibility for emergency measures in relation to energy rests with energy sectors participants, who should undertake: (1) measures to identify the impacts from hazards and to reduce their consequences on the assets they manage; (2) measures to assure, as far as is practicable, the rapid reinstatement of critical supply; (3) emergency response planning to secure the safety of the public from damaged systems; (4) liaison with CDEM authorities in regard to priorities for restoration, the coordination of other critical resources and securing assistance in supply system restoration. 13. In an emergency, electricity supply systems should be accorded high priority for restoration and maintenance because of the life preserving and communications purposes to which electricity is put. Such restoration must be done in a way which does not create new hazards to life and property. For example, restoring power to any area in which fir hazards such as broken gas or LPP lines exist, needs to be carefully coordinated. 14. Restoration and maintenance of piped gas and LPP supply systems should be accorded priority where these systems are used for fuelling power stations or form a major source of energy for a community. Planners should be alert to possible conflicts (for example gas may 66

3 be used to heat hospitals and/or to make electricity to light them). 15. Regional and local civil defence plans should make reference to energy providers and their emergency planning. CDEM systems may assist energy companies with identifying the location of disruptions to electricity and piped gas and LPP supplies or provide access to resources to assist energy staff and contractors to restore damage or operate and maintain available supply systems. Priorities 16. The goal of civil defence measures is to save life and minimise suffering. In the event of an emergency, energy supplies need to be made available where practicable and appropriate in the following priority order. (1) medical centres (including hospitals); (2) emergency operations centres (EOCs) and other emergency coordination points; (3) energy control centres; (4) communications networks; (5) water and sewage pumping; (6) gas production facilities; (7) liquid fuel pumping and delivery; (8) essential domestic/commercial/ industrial uses; (9) other purposes. In November 2000, the Civil Defence Emergency Management Bill (CDEMB) was introduced to New Zealand Parliament. It is expected, following the Select Committee considerations, to be enacted in September It will replace the Civil Defence Act Energy suppliers, under this Bill will be part of the lifeline utilities that will encompass: (4) Networked services essential to limiting the extent of an emergency. Infrastructure essential to the basic operation of an export-led economy. The CDEMB describes the duties of lifeline utilities as follows. Duties of Lifeline Utilities Every lifeline utility must: (a) (b) (c) (d) ensure that it is able to function to the fullest possible extent, even though this may be at a reduced level, during and after an emergency; make available to the Director in writing, on request, its plan for functioning during and after an emergency; participate in the development of the national civil defence emergency strategy and civil defence emergency management plans. provide, free of charge, any technical advice to any Civil Defence Emergency Management Group or the Director that may be reasonably required by that Group or the Director. Energy suppliers will continue to be involved under the CDEMB as they have been under the Civil Defence Act 1983 but the CDEMB has been updated to take account of the modern business environment. The CDEMB sets a minimum expectation but leaves considerable freedom for 3 energy suppliers to decide how best to meet that minimum expectation. A heavily regulatory approach is considered unnecessary as continued operation of energy suppliers is an objective shared by communities, government and the owners and operators of these businesses. Networks providing the basic necessities of life power, water, sewage and transport of essential supplies. 67

4 4. Emergency Management Current Issues in New Zealand The proposed CDEMB reflects the shift in focus of emergency management in New Zealand. The focus is shifted from emergency to reduction and readiness. Emergency management is moved from a post-disaster, response-focused to a holistic, pre-disaster policy of sustainable hazard management (5). Most energy suppliers adopt the risk management process in AS/NZS4360: 1999 Risk Management standard as part of their overall asset management plan. Due to the changing business environment whereby private ownership of energy supply plus the amalgamation of local governments has meant that coordination between various government agencies and private companies has to be carefully planned. Lifeline projects and groups who are non-government, non-private have increasingly played an important role in this coordination as well as raising awareness and actions from energy suppliers in earthquake response planning. 5. Current Status of Earthquake Response Capabilities in New Zealand Energy Supply All energy suppliers have Emergency Response Plans to varying degrees in detail. Most if not all energy suppliers have taken actions to mitigate the risk of earthquake damage to their assets. Most, if not all, actively participate in emergency response planning and studies, notably via the Lifelines Projects and Groups around New Zealand (15 groups in total). Most electricity companies carry spares for emergencies. There is no strategic oil reserve of oil in New Zealand. Currently, crude oil in NZ has about 1 week of stock. Petrol stock is about 20 days, stored at 12 or so tank terminals around NZ. 68

5 6. Key Organisations (Other Than Energy Suppliers) that shape the Emergency Response of Energy Supply Systems Ministry for Emergency Management Lifeline Projects and Groups. EQC (Earthquake Commission) Members of Earthquake Engineering New Zealand Members of Natural Hazards New Zealand Ministry of Economic Development 69

6 Fig. 1 New Zealand Shallow Earthquakes 1990=94 70

7 Fig. 2 Damage to Railway. Edgecombe Earthquake 1987, North Island, New Zealand 71

8 Fig 3 Damage to Transformers, Edgecumbe Earthquake 1987, North Island, New Zealand 72

9 References 1. ed. M J Pender and T W Robertson, 1987, Edgecumbe Earthquake: Reconnaissance Report, Bulletin of the New Zealand National Society for Earthquake Engineering, Vol 20, No. 3, September 1987 pp , No. 466 The Civil Defence Act 1983 printed under the Authority of the New Zealand Government by V R Ward, Government Printer New Zealand Ministry of Civil Defence 1996 with amendments up to January 2001 National Civil Defence Plan Wellington, New Zealand. 4. New Zealand Ministry for Emergency Management December 2000 Lifeline Utilities Implications of the Civil Defence Emergency Management Bill Wellington, New Zealand. 5. Britton, N R, A New Emergency Management for the New Millenium? Cities on Volcanoes 2 nd International Conference Auckland, New Zealand February