Report to COUNCIL for decision

Transcription

1 Title: Section: Prepared by: Managed Aquifer Recharge Update and Possible Futures Environmental Services & Protection Lois Easton (Environmental & Science Manager) Meeting Date: 5 April 2018 Legal Financial Significance = HIGH Report to COUNCIL for decision SUMMARY The purpose of this report is to provide an update to the Council on the progress of the Managed Aquifer Recharge (MAR) Trial and outline some possible future scenarios in relation to what might occur beyond the trial. The work to progress the Stage 2 trial is well underway and the government has announced funding towards this. It is intended to implement the Stage 2 trial in May 2018, subject to funding confirmation from Eastland Community Trust and resource consent being granted. A group of horticultural interests has formed a company to take up the findings of the MAR Trials with the aim of developing the infrastructure for a full irrigation scheme to recharge the Makauri Aquifer. This report outlines some of the information they have provided around their intentions. The decisions or matters in this report are considered to be of HIGH significance in accordance with the Council s Significance and Engagement Policy. RECOMMENDATIONS That the Council: 1. Notes the contents of this report and in particular: a) Stage 1 of the trial is complete. b) Consents have been applied for a Stage 2 trial but that in order for it to proceed full funding needs to be confirmed. c) That the information gained during the trials will be publicly available to any party seeking to develop and implement a MAR Scheme. 2. Confirms the Council role in relation to any MAR Scheme is as a regulatory authority and that any consenting or Plan Change costs to develop such a scheme should be borne by the applicant. Authorised by: Nedine Thatcher Swann Chief Executive Keywords: Managed Aquifer Recharge, update, irrigation scheme, Makauri Aquifer Page 1 of 5

2 BACKGROUND 1. At its meeting of 20 th July 2017 (Report ) the Future Tairawhiti Committee considered the next steps with the Managed Aquifer Recharge (MAR) trial. At that time the Committee agreed in principle that, subject to further work, a Stage 2 trial should be undertaken over the 2018 calendar year. The Committee also instructed staff to continue discussions around the funding and governance options for a full MAR of the Makauri Aquifer. 2. Following the success of the Stage 1 Trial, which has proved that MAR of the Makauri Aquifer is a feasible option, a Stage 2 trial methodology has been developed to enable a clear understanding of key environmental (water quality and hydrology) effects and funding for this has been sought from government and the Eastland Community Trust. 3. This methodology sees the Stage 2 trial running over two calendar years, including two resource consents - a resource consent for the drilling of two new monitoring bores, and a resource consent for the renewal of a further 10 bores, installation of automated monitoring equipment, and an extended season for the trial to run. It also provides for further environmental and cultural monitoring. 4. The government has recently announced funding of $542,000 (50%) towards a stage 2 trial of the MAR. This would be undertaken over the next two calendar years and enable a good level of confidence to be developed around potential environmental impacts and ways to mitigate these as well as better understanding cultural impacts. 5. An application for a Variation to the resource consent to extend the trial for a further two years has been lodged with Bay of Plenty Regional Council to whom Council has delegated the processing of resource consents around the MAR Trial. 6. The first resource consent has been granted by Bay of Plenty Regional Council to install two further monitoring bores. 7. Tendering for construction of the bores is currently underway. Tendering for the technical/scientific support for the stage 2 trial is also underway. 8. A Mauri Compass cultural evaluation of the trial has been commissioned. 9. An application for funding from Eastland Community Trust has also been made and this is awaiting confirmation of funding. 10. In terms of timeline for the commencement of the stage 2 trial this is dependent on decisions from Bay of Plenty Regional Council on the second resource consent (for the renewal of a further 10 bores, installation of automated monitoring equipment) and the confirmation of funding from the Eastland Community Trust. 11. Preparations are in place to be able to commence the Stage 2 trial at the end of the irrigation season should that be possible. DISCUSSION and OPTIONS What is Council s role after the trial? 12. Council s role in the MAR is focused on; 13. Understanding the environmental and cultural effects of the technology and how these can be mitigated. To date no significant environmental effects have been detected, but the Stage 2 trial is focused on investigating a range of potential risks in more detail. Page 2 of 5

3 14. Understanding the hydraulic response from water injection into the aquifer across the aquifer this is a major focus of the Stage 2 trial. 15. Understanding the business/economic case for a full MAR Scheme. This work has been completed with funding from the Ministry for the Environment. 16. Council has not provided for any funding of the MAR beyond the Stage 2 trial in its draft Long Term Plan. Development of a MAR Irrigation Scheme 17. The Council should note that there is a clear distinction between the trial researching the impacts and mechanisms of MAR in the Makauri Aquifer and the facilitation of the development of a MAR Scheme. The information obtained through the trials will be invaluable to any applicant seeking to develop a MAR Scheme and will be made available to any such party. 18. Discussions with the horticulture sector from the beginning of the project have been on the basis that they would play a significant role in funding and developing any MAR Scheme and this is referenced within the Tairawhiti Economic Action Plan. This is administered by Activate Tairawhiti who are a logical agency to be working with the horticulture sector around any MAR Scheme development. 19. A company MAR Limited has been set up by a number of horticultural interests on the Gisborne plains, including Mangatu Blocks, Kaiaponi Farms, Leaderbrand and a number of smaller horticultural firms. This group has been developing plans around how they can take the findings of the MAR Trials to commercially implement a MAR Scheme on the Gisborne plains. Discussions with these horticultural interests indicate their main focus is facilitating the infrastructure development which would be required for any MAR Scheme. 20. This group aims to be in the position to lodge consents for development of this infrastructure within the next one to two years. This group has stated their primary aim is to enable the halt of decline in water levels and support the existing level of irrigation from the aquifer; however in the longer term such a scheme could be expanded to increase the rate of recharge to enable the potential for further expansion of irrigation. 21. MAR Limited is a not-for-profit company intended to finance and establish the necessary infrastructure for managed injection into the Makauri Aquifer. The intention is that MAR Limited would contract service (supply of water) to an Incorporated Society that any person may join. Members of the Society would be able to abstract water from the replenished aquifer after agreeing to meet the costs involved. The Incorporated Society is yet to be established. 22. The details of how such an irrigation scheme could work in terms of water allocation have not yet been discussed but it is the staff view that a Plan Change to the Tairawhiti Resource Management Plan to deal with the water allocation complexity will probably be required. 23. Council funding provision around the MAR in the draft LTP assumes that in relation to any further work around progressing a MAR Scheme Council s role will be in the regulatory aspects assessing environmental effects, processing resource consents and monitoring compliance. 24. No funding has been provided to apply for any necessary resource consent or Plan Changes which a MAR Scheme will require. The Council costs in relation to any MAR Scheme development would then be borne by the Consent/Plan Change Applicant as for any other development proposal. Page 3 of 5

4 25. In order to support economic development objectives, it is also important that MAR Limited and the Incorporated Society (or any other legal structure) enable equitable access to water for all types of growers on the Gisborne plains, whether they are large or small, and whether or not they have invested in the infrastructure scheme. ASSESSMENT OF SIGNIFICANCE Criteria This Report The Process Overall The effects on all or a large part of the Gisborne district Low Low The effects on individuals or specific communities Medium High The level or history of public interest in the matter or issue Medium High Inconsistency with Council s current strategy and policy Low Low Impacts on Council s delivery of its Financial Strategy and Long Term Plan. Low Low 26. The decisions or matters in this report are considered to be of high significance in accordance with Council s Significance and Engagement Policy. 27. There has been a high level of public interest and comment around the trial, which is considered to be of critical importance to irrigators on the Gisborne plains. 28. The MAR Pilot is a non-regulatory project in the Waipaoa Catchment Plan, and is provided for in policy within the Freshwater Plan. 29. The MAR Pilot is identified as a key part of the Tairawhiti Economic Action Plan; 87% of the jobs in the Plan are directly linked to the success of a MAR. The successful recharge of the Makauri aquifer will unlock further horticulture potential on the Gisborne plains and help to stimulate economic growth in the sector. COMMUNITY ENGAGEMENT 30. Information about the MAR project is available on the Council website. Stakeholder meetings are held regularly. A stakeholder newsletter is also regularly produced. One-on- one discussions with Rongowhakaata and Te Aitanga a Mahaki representatives (as mana whenua) have been ongoing through the project to date. CONSIDERATIONS Financial/Budget 31. Costs to fund the development of a Stage 2 MAR Scheme are currently being provided through the Non-Regulatory Freshwater Projects Budget. In the draft LTP $80,000 per year is provided in the capital budget for the Stage 2 trial for the capital costs associated with installing additional bores and monitoring equipment. 32. Funding has been confirmed from the government through the Provincial Growth Fund of $542,000; the contract for this is yet to be signed but it is understood this funding is for up to 50% of the costs and is contingent on other funding becoming available. 33. An application for funding has been made to the Eastland Community Trust for the remainder of the funding required to fund the Stage 2 Trial. 34. While there are wider economic benefits for the district of a MAR Scheme, the principle beneficiaries are irrigators and costs to develop any Scheme are outside the research and trial funding being sought by the Council. Page 4 of 5

5 Legal 35. Understanding the state of the Makauri Aquifer is a key part of our monitoring requirements under the RMA. The MAR Trial is assisting in us meeting this obligation. POLICY and PLANNING IMPLICATIONS 36. The MAR Pilot and progressing to a full MAR scheme is a defining project of He Huarahi Hei Whai Oranga, the Tairawhiti Economic Action Plan. The Aquifer recharge is a pivotal sector action to intensify horticulture production on the Poverty Bay flats. This project alone is set to create 1,100 jobs out of the 1,260 jobs outlined in the plan, and would double the horticulture contribution to regional GDP from $160m annually to $320m by The decline in the Makauri Aquifer is required to be addressed under the RMA and National Policy Statement for Freshwater (NPSFM). Unless a way to augment the aquifer is found, significant reductions in water takes will be required. 38. The Waipaoa Catchment Plan includes measures to address water takes and over-allocation problem on the Gisborne plains. RISKS 39. Bay of Plenty Regional Council has been delegated authority to assess the Variation to the resource consent. Approval for the resource consent for stage 2 of the Trial to proceed, and gaining funding from the Eastland Community Trust are the key critical risks at this time. 40. That the development of a MAR Scheme has host of risks which would need to be carefully evaluated, and managed by any Scheme developer. NEXT STEPS Date Action/Milestone Comments May 2018 Commencement of Stage 2 Trial Subject to resource consent Variation and funding confirmation. Page 5 of 5