Agenda of Strategy and Policy Committee - Tuesday, 3 November 2020

Strategy and Policy Committee Minutes

11 August 2020

Strategy and Policy Committee

Open Minutes

Commencing: Tuesday 11 August 2020, 9.30 am

Venue: Council Chambers, Ground Floor, Regional House, 1 Elizabeth Street, Tauranga

Chairperson: Cr Paula Thompson

Deputy Chairperson: Cr Stuart Crosby

Members: Cr Bill Clark

Cr Toi Kai Rākau Iti

Chairman Doug Leeder

Cr David Love

Cr Matemoana McDonald

Cr Jane Nees

Cr Stacey Rose

Cr Lyall Thurston

Cr Andrew von Dadelszen

Cr Te Taru White

Cr Kevin Winters

In Attendance: Namouta Poutasi – General Manager Strategy & Science, Chris Ingle – General Manager Integrated Catchments, Fiona McTavish – Chief Executive, Shari Kameta – Committee Advisor, Katrina Knill – Communications Partner, Stephen Lamb - Environmental Strategy Manager, Jane Palmer - Senior Planner Climate Change, Nassah Steed - Principal Advisor, Policy & Planning, Julie Bevan - Policy & Planning Manager, Adam Fort - Senior Planner, Sandra Barns - Economist, Santiago Bermeo - Senior Planner, Andy Bruere - Lakes Operations Manager, Helen Creagh - Rotorua Catchments Manager

External Presenters: Ezra Schuster - Central Government Public Service Lead, Glen Crowther - BOP Regional Manager, Sustainable Business Network, Envirohub: Mary Dillon - Chairperson, Laura Wragg - Manager, Liesel Carnie, Karla Akuhata – Māori Engagement Specialist, Joy Moir - Project Lead; Dean Kimpton - TSP Independent Chair, Neil Mason - TSP Programme Director

Apologies: Cr Norm Bruning

1. Opening Karakia

A karakia was provided by Cr Te Taru White.

2. Apologies

Resolved

That the Strategy and Policy Committee:

1 Accepts the apology from Cr Norm Bruning and apology for interim departure from Cr Crosby tendered at the meeting.

[Thompson/Rose]

[CARRIED]

3. Order of Business

Item to be Deferred

Resolved

That the Strategy and Policy Committee:

1 Defers Agenda Item 8.5, Regional Pest Management Plan until the Council meeting of 30 September 2020; and that a workshop with interested councillors and staff, to go through the report in detail, be held on 3 September 2020.

Thompson/Clark

CARRIED

4. Declaration of Conflicts of Interest

None declared.

5. Minutes

Minutes to be Confirmed

5.1	Strategy and Policy Committee Minutes - 18 June 2020
	Resolved That the Strategy and Policy Committee: 1 Confirms the Strategy and Policy Committee Minutes - 18 June 2020. Rose/White CARRIED
5.2	Strategy and Policy Committee Minutes - 25 June 2020
	Resolved That the Strategy and Policy Committee: 1 Confirms the Strategy and Policy Committee Minutes - 25 June 2020. Rose/Nees CARRIED

6. Presentations

6.1

Update on Regional Recovery

Presentation: Regional Recovery: Objective ID A3602055

Presented by: Ezra Schuster, Central Government Public Service Lead and Director of Education for Bay of Plenty, Rotorua, Taupo

Key Points:

· Provided background on the role of the Public Service Lead and the Bay of Plenty Collective Impact Governance Group (BOPCIGG).

· Pre-Covid-19, inequities and disparities within the community were expected to increase, which regional leadership would play a vital role as an enabler of support.

· Considered the region was still in ‘response’ mode, requiring all partners to work in a way that was enduring.

· Outlined the Waiariki BOP Charter of principles, which was developed through engagement with several Iwi partners, and agencies.

· Provided an overview of an approach for recovery driven by principles, leadership, regional ‘eyesight’, local delivery, and a shift from a Central Government focus to ‘line of sight - delivery enablement’.

· The Public Service Lead could be used to raise concerns, and convene the right leaders to remove roadblocks to inform/support local communities.

In Response to Questions:

· Provided an example of how the charter principles would be key to addressing the inequities and disparities within the education sector, particularly for rural communities and Māori.

· Local councils would play a critical part in the delivery of work, thinking and design.

· Communication at the grassroots level would be an ongoing discussion with relevant partners at a number of different levels.

· Communication on issues of importance to rangatahi had not been explicit, but was noted to consider and address.

· Key changes in the Public Services Act sought to breakdown silos between agencies and local communities to improve past system issues, and to provide the opportunity to work together and do things differently.

Key Points - Staff:

· Chief Executive Fiona McTavish provided an example of collaborative change that had occurred with the support of the Public Service Lead during Covid-19 in relation to Council’s funded school bus service, which had provided a good outcome for the community.

Key Points - Members:

· Active communication with rangatahi on the ground was needed.

· Noted concern at the rate of change regarding silos and system issues that still existed.

· Whānau and communities should sit at the top of the chain of ‘line of sight’ and delivery.

Resolved

That the Strategy and Policy Committee:

1 Receives the presentation, Update on Regional Recovery.

Thompson/White

CARRIED

6.2

Sustainable Business Network - Regional Strategy Update

Presentation: Sustainable Business Network: Objective ID A3609779

Presented by: Glen Crowther, BOP Regional Manager, Sustainable Business Network

Key Points:

· Provided background on Sustainable Business Network’s (SBN) purpose, membership, core projects and new strategy.

· The new strategy’s aim was to deliver more impact across the country. As a result of this, SBN’s regional support would cease, with membership to then be serviced by Head Office in Auckland.

· Mr Crowther was pursuing funding for a new model to support some of the projects in the region on climate change and transport emission reduction.

· Provided background on the Million Metres Streams Project, which Council was a regional partner of the programme.

· Discussed the region’s increased emissions profile and the critical need for Urban Form and Transport Initiative (UFTI) and the WBOP Transport System Plan and Blueprint to address the need for increased public transport mode share.

· Auckland’s Climate Plan 2030 goal was to halve transport emissions, and increase public transport/cycling mode share and electrification by 2030.

· SBN’s Climate Action 2025 Project goal was to reduce emissions nationwide by 2030, and aimed to deliver this with Central Government and corporate partners, noting that local support would be needed to assist small and medium sized enterprises.

In Response to Questions:

· Maintaining contact with Bay of Connections and Council staff on climate change and economic development would be important.

· Local project scope was subject to discussion with funding partners, however would look to focus on climate change and reduction in transport emissions.

· Partner funding for local projects would ensure delivery on the ground and contribute to a local support role.

· StatsNZ advice considered the region’s emissions was mainly a result of the urban development model and household and transport emissions.

· Considered low carbon transport and multi-faceted investment would be needed to reduce the region’s carbon emissions footprint.

· Wished to support business with integrated planning and reduction barriers at the local and regional levels.

Key Points - Members:

· The region needed similar targets to Auckland, and to promote multi-modal transport with the community.

Resolved

That the Strategy and Policy Committee:

1 Receives the presentation, Sustainable Business Network - Regional Strategy Update.

2 Records a vote of thanks to Mr Glen Crowther for his contribution to the wider community.

Thurston/Rose

CARRIED

6.3

Envirohub Bay of Plenty - Sustainable Backyards Programme Update

Presentation: Envirohub Bay of Plenty: Objective ID A3609825

Presented by: Chairperson Mary Dillon, Laura Wragg, Envirohub Manager, Liesel Carnie, Karla Akuhata, Māori/Communication Engagement Specialist and Joy Moir, Project Lead

Key Points:

· Highlighted the need to work together with urgency on important issues facing the region: sustainable water management, biodiversity restoration, decarbonisation of our economy/transport, putting climate emergency at the heart of post-Covid-19 recovery and providing sustainable environments for the future.

· Envirohub operated 14 different initiatives and had an extensive regional network of over 80 groups to preserve and improve the environment.

· During March, the Sustainable Backyards Programme (SBY) continued to grow with over 230 events planned, and regional engagement increasing with over 173,000 unique views on social media.

· Presented the Te Papa Toi-Ora o Te Waiariki National Regional Park initiative that aimed to create a movement to provide greener, healthier, wilder urban areas and enhanced connection to nature.

· Outlined core values, areas of focus and opportunity, an operating model to effect change, and a platform for launch and implementation.

· Pathways to success would involve: collaboration with Māori, a long term strategy, formation of an advisory group and regional connectors.

· Sought Regional Council’s support to be part of the initiative and movement.

· Key levers were for everyone to be part of making a difference towards becoming more resilient, sustainable, regenerative and co-creative.

In Response to Questions:

· Funding was needed to support a range of areas, such as: physical resourcing of regional connectors, strategic planning, and website creation.

· A communication strategy was being developed to connect with rangatahi on social media platforms and would be kept informed via student membership on the Advisory Board and other key school stakeholders.

· Connecting with Iwi would be kanohi-ki-te-kanohi (face-to-face) via Hui-a-Iwi and attending Hapū/Marae hui where possible, focusing on supporting existing Iwi/Hapū/Marae initiatives.

· The presentation would be presented to the district councils in due course.

Key Points - Members:

· Queried the opportunity for presenters to come together and collaborate with each other, staff and other representatives on issues presented.

· Considered Envirohub and SBN were important voices to be heard alongside UFTI.

Resolved

That the Strategy and Policy Committee:

1 Receives the presentation, Envirohub Bay of Plenty - Sustainable Backyards Programme Update.

Thompson/Rose

CARRIED

11:41 am – The meeting adjourned.

11:41 am - Cr Crosby left the meeting.

12:02 pm – The meeting reconvened.

7. Order of Business

To accommodate the arrival of the presenters, the Chair advised that Item 8.4, Update on Western Bay Transport System Plan would be received next on the agenda.

8. Reports

8.1

Update on Western Bay Transport System Plan (TSP)

Presentation: Western Bay of Plenty Transport System Plan: Objective ID A3610062

Presented by: Neil Mason - TSP Programme Director and Dean Kimpton - TSP Independent Chair.

Key Points:

· Provided background on the TSP project and its purpose to implement the Urban Form and Transport Initiative (UFTI) to deliver the preferred strategic form for the sub-region’s key transport network.

· The project had an aggressive timeline to meet Regional Land Transport Plan (RLTP) submission timeframes and would be responsible for keeping partners aligned in terms of RLTP programme priorities.

12.20 pm – Cr Crosby returned to the meeting.

· Project challenges were to identify and deliver: a generational model that would put public transport ahead of cars, practical and realistic modal shift, dedicated safe environments, primary purpose and function of corridors.

· Partner alignment towards a collective, consistent approach, with deliberate investment would be critical to success.

· Outlined progress and project delivery timeframes, key achievements, challenges and next steps to seek partner approvals and prepare for RLTP and Long Term Plan (LTP) inputs by 18 September.

· Expected a number of short range, low cost-low risk initiatives would contribute to the recommended programme.

In Response to Questions:

· Structure and delivery would be an ongoing conversation in the future.

· KPIs for transport emission reduction and changes in mode share aligned with UFTI partner objectives and were being reviewed by the technical team. It was noted that interim steps were needed to gauge how these were progressing over time.

· Delivering modal shifts to meet future aspirations and expectations would require; more work and rethinking urban form, a safe, clean and highly regulated public transport system, deliberate investment and momentum to drive behaviour change.

· Some projects (e.g. Cameron Road, Totara Street) were ahead and outside the scope of the TSP, but had been included in gap analysis.

· Gap analysis on emerging technological disruptions (i.e. micro-mobility) was about regulation, behaviour change and safety, and a willingness to experiment and adapt to various uses.

Key Points - Members:

· Commended the start of the project and wished to receive updates on the status and completion of milestones.

· Encouraged TSP to provide strong recommendations to the partner group.

· Suggested partner approvals be scheduled at the same time.

Key Points - Staff:

· Annika Lane, Acting Regional Development Manager noted a further update would be given at the Councillors’ informal briefing on 18 August, followed by a joint feedback session with Tauranga City Councillors.

· A presentation on the public transport activity plan would be provided to the Public Transport Committee on 27 August, followed by a workshop and further opportunities via Council’s LTP workshops over the coming month.

Resolved

That the Strategy and Policy Committee:

1 Receives the report, Update on Western Bay Transport System Plan (TSP).

von Dadelszen/Thurston

CARRIED

1:09 pm – The meeting adjourned.

1.09 pm – Cr White withdrew from the meeting.

1:30 pm – The meeting reconvened.

8.2	Chairperson's Report
	The Chair advised there was no report and that the item was withdrawn.

8.3

Operating Environment Report

Presented by Namouta Poutasi, General Manager Strategy & Science.

In Response to Questions:

· Some Economic Development Agencies had indicated they were struggling with local recovery workloads and contributing to Regional Council’s recovery programme.

· An update on Bay of Connections Regional Recovery Strategy would be provided at Council’s LTP workshop on 12 August.

Key Points - Members:

· Queried whether Resource Management Act reform and spatial planning changes would replace the RLTP.

· Raised discussion on the 3 Waters, national Iwi matters and impacts of water entities that LGNZ would be commencing discussion on.

· Highlighted pending challenges at the level of communication that would be required with the community on forthcoming policy reforms.

Resolved

That the Strategy and Policy Committee:

1 Receives the report, Operating Environment Report.

Thompson/Nees

CARRIED

Strategy

8.4

Climate Change Action Plan reset

Presentation: Climate Change Action Plan Reset: Objective ID A3610064

Presented by: Jane Palmer, Senior Planner Climate Change
Stephen Lamb, Environmental Strategy Manager

Key Points - Staff:

· Outlined the proposed approach for resetting the Climate Change Action Plan (CCAP) to provide a stronger policy and strategic focus.

· Policy content of the CCAP reset would be discussed through Council workshops as part of the LTP process.

· Issues to consider through the LTP/workshop process would be to: set a clear vision and direction, agree on Regional Council’s role, and build in councillor input and feedback.

· Outlined the timeline for reporting back to the Committee on 3 November, prior to seeking adoption by Council on 17 December for consultation alongside the LTP consultation.

In Response to Questions:

· Policy setting would rest with Councillors to discuss and set a position.

· Staff proposed to put in place an organisational monitoring programme, which would help to tell Council’s story.

Key Points - Members:

· Agreed with the reset approach and getting Council’s ‘house in order’ as a matter of credibility and integrity.

· The CCAP needed to be more visible to the community, as well as articulating what Council was doing.

Resolved

That the Strategy and Policy Committee:

1 Receives the report, Climate Change Action Plan reset.

2 Approves the proposed approach to reset the Climate Change Action Plan, as outlined under section 2 of the report.

Crosby/Winters

CARRIED

Regulatory Policy

8.5	Regional Pest Management Plan This item was deferred, as resolved earlier in the meeting under Order of Business.

8.6

Draft Proposed Change 5 (Kaituna River) to the Bay of Plenty Regional Policy Statement

Presented by: Nassah Steed, Principal Advisor, Policy & Planning

In Response to Questions:

· Confirmed the exclusion of Okere Gates from Policy KR4.

· Clarified the basis of staff’s recommendations in regard to exercising caution with references made to Te Mana o Te Wai.

Key Points - Members:

· Sought that appropriate consideration be given to communicate the approved recommendations through to Te Maru o Kaituna River Authority where there had been variation.

Resolved

That the Strategy and Policy Committee:

1 Receives the report, Draft Proposed Change 5 (Kaituna River) to the Bay of Plenty Regional Policy Statement.

2 Approves staff recommendations in response to Te Maru o Kaituna members’ requested amendments resulting from the 27 June 2020 workshop and their Independent Advisor contained in sections 2.1 and 2.2 of this report.

3 Approves Draft Proposed Change 5 (Kaituna River) to the Regional Policy Statement (included as Attachment 1) for community and stakeholder consultation.

4 Approves staff presenting comments received to Te Maru o Kaituna members at their 27 November 2020 meeting.

5 Notes staff propose seeking Regional Council approval to notify Proposed Change 5 for submission at the 17 December 2020 meeting.

Nees/McDonald

CARRIED

Regulatory Policy – Verbal Updates

8.7

Government's Action for Healthy Waterways package

Presentation: Action for Healthy Waterways: Objective ID A3610066

Presented by: Julie Bevan, Policy & Planning Manager and Namouta Poutasi, General Manager Strategy & Science

Key Points:

· Outlined the Government’s objectives and instruments for change to implement its Action for Healthy Waterways package.

· National Environmental Standard-Freshwater (NES-FW) regulations would come into effect in September and require more frequent/regular reporting.

· Regional Councils were collaborating to provide national implementation support and consistency of interpretation of policy and regulatory changes.

· Outlined the key shifts to implement the Government’s package and next steps for the Committee to workshop the implementation programme on 29 September, prior to staff seeking approval in November.

· Staff would start to collaborate with industry organisations, provide clear communication and information material early on, and develop systems and tools to support implementation.

In Response to Questions:

· The first reading of the Water Services Bill had been put on hold until after the national elections, was focused on Three Waters and a small component that related to regional councils for extraction of drinking water.

· Engagement with Māori would be tailored and targeted for different groups.

Key Points - Members:

· Engagement with Māori would be challenging due to the National Policy Statement – Freshwater Management (NPS-FM) being time bound.

· The issue of water rights and interests was a subject that Iwi-Māori would bring into the discussion, which needed to be recognised and should not be in isolation of discussions with Central Government and Kahui Wai Māori.

· Communication with the community would be critical.

Items for Staff Follow Up:

· Clarify the overlay and impact of the new NES-FW regulation on fish passage barriers for existing consents to inform the upcoming Rangitāiki River Forum meeting.

Resolved

That the Strategy and Policy Committee:

1 Receives the verbal update on the Government's Action for Healthy Waterways package.

Thompson/Winters

CARRIED

8.8

Update on the National Policy Statement on Urban Development July 2020

Presentation: National Policy Statement on Urban Development 2020: Objective ID A3610071

Presented by: Adam Fort, Senior Planner and Namouta Poutasi, General Manager Strategy & Science.

Key Points:

· Outlined the implications for Council to implement the National Policy Statement on Urban Development 2020 (NPS-UD), relating to Tier 1, 2 and 3 local authorities in the region.

· A series of changes would be required to the Regional Policy Statement, along with the development of three Future Development Strategies, which would require significant resourcing.

Key Points - Members:

· Needed to work with local authorities to help with necessary tools, identify gaps and work to implement it collectively.

· Questioned how local government could streamline the process to deliver and work smarter, which needed further discussion.

Resolved

That the Strategy and Policy Committee:

1 Receives the verbal update on the Government's Action for Healthy Waterways package.

Thompson/Nees

CARRIED

2:53pm - Cr Leeder withdrew from the meeting.

Non-Regulatory Policy

8.9

Transitioning to lower emissions and energy efficiency

Presentation: Transitioning to Lower Emissions and Energy Efficiency: Objective ID A3610074

Presented by: Santiago Bermeo - Senior Planner, Sandra Barns - Economist, and Stephen Lamb, Environmental Strategy Manager

Key Points:

· Sought the Committee’s feedback on the use of a voluntary targeted rate (VTR) to encourage energy efficiency.

· Work was connected to the refreshed Climate Change Action Plan.

· Outlined StatsNZ and AECOM statistics on regional emissions, noting the two different approaches that had been used.

· Case studies had promoted low interest VTR over 10 years and carbon reductions through electricity generation and efficiency.

· While the projects were small in scale, staff considered they were a move in the right direction, to support wellbeing benefits and Covid-19 recovery.

In Response to Questions:

· Acknowledged that Option 2 was the least beneficial, however noted that all options needed to be further refined.

· Lists of approved products and certified suppliers would be considered as part of next steps.

· Potential existed to work with other agencies and to leverage off existing initiatives to address social and health needs.

Key Points - Members:

· Supported VTR and other incentivised measures as a tool for change and exploring the options further to encourage energy efficiency.

· Hawke’s Bay Regional Council had charged minimal interest on loans, which benefited both the council and individuals, and became cost-neutral after seven years.

· Raised for consideration solar water/pellet heating technology as another efficient possible initiative.

· Focus on what initiatives could be managed and achieved.

· Electric vehicles/buses, ride-share schemes, trains and ferries, development of forest carbon sinks via regional parks as offsets, and waste recovery were other areas of opportunity that could be aligned with carbon reduction with Council’s core business.

Resolved

That the Strategy and Policy Committee:

1 Receives the report, Transitioning to lower emissions and energy efficiency.

2 Notes, and provides feedback on, the proposed use of voluntary targeted rates to encourage energy efficiency.

3 Notes, and provides feedback on, other potential initiatives that staff could consider in more detail.

4 Notes that, subject to feedback, these initiatives would be developed in more detail and considered against other initiatives and priorities during the development of the Long Term Plan 2021-31.

Love/Rose

CARRIED

Other

8.10

Lake Water Quality Reporting Update

Presentation: Review of Trophic Level Index (TLI) Reporting: Lake Health: Objective ID A3610076

Presented by: Andy Bruere, Lakes Operations Manager and Helen Creagh, Rotorua Catchments Manager

Key Points:

· The new refreshed reporting would be presented in a dashboard format, providing additional water quality parameters, incorporating a Mātauranga Māori perspective.

· Reporting would evolve to meet the needs of the community to help understand the status and position of the Rotorua lakes.

Extension of Time

That the Strategy and Policy Committee:

1 Approve an extension of time under Standing Order 4.2.

Thompson/Thurston

CARRIED

· Monitoring of lake health would intersect with a Mātauranga Māori perspective, and staff would work with various Iwi/Hapū to bring western science and Mātauranga Māori measures together.

In Response to Questions:

· Health warnings could be reported to the Council’s Pollution hotline and followed up with the relevant agencies.

· The reporting provided a historical account of lake water quality.

· Would consider how swimmability indicators could be incorporated.

· Trends would still continue to be provided in reporting and included margins of error.

Resolved

That the Strategy and Policy Committee:

1 Receives the report, Lake Water Quality Reporting Update.

Winters/Thurston

CARRIED

3:43 pm – the meeting closed.

Confirmed

Cr Paula Thompson

Chairperson, Strategy and Policy Committee



Report To:	Strategy and Policy Committee
Meeting Date:	3 November 2020
Report Writer:	Julie Bevan, Policy & Planning Manager; Stephen Lamb, Environmental Strategy Manager and Helen Creagh, Rotorua Catchments Manager
Report Authoriser:	Namouta Poutasi, General Manager, Strategy & Science Chris Ingle, General Manager, Integrated Catchments
Purpose:	To provide an update on the operating environment and to provide a signal to the Committee of upcoming decisions.

Operating Environment Report

Executive Summary

This report covers operating environment areas that influence and inform Council’s policy direction and work. This report provides information on the operating environment and highlights a number of upcoming decisions that will be required of Council and this Committee. In particular there continues to be a number of Central Government policy changes that impact on Council’s work.

It covers:

· Regional Policy Statement Changes and Regional Natural Resources Plan Changes Programme Summary

· Bay of Plenty Treaty Settlements

· On-site Effluent Treatment (OSET) Matters

· Rotorua Te Arawa Lakes New Dashboard Reporting

· Spatial Planning

· Climate Change Adaption Regional Workshop

· Mayoral Forum

· National Policy Direction under Development.

National direction instruments support local decision-making under the Resource Management Act 1991 (RMA). This is provided using national policy statements (NPS), national environmental standards (NES), national planning standards (NPStds) and section 360 regulations. National Policy Statements for Freshwater Management and Urban Development, a National Environmental Standards for Freshwater and section 360 regulations have been gazetted in recent months which will require changes to the Regional Policy Statement and The Regional
Natural Resources Plan.

There are also a number of national direction instruments currently under development or being scoped which will impact on Council’s statutory requirements and work programmes.

Recommendations

That the Strategy and Policy Committee:

1 Receives the report, Operating Environment Report.

1. Introduction

This report provides a summary of the current Regional Policy Statement (RPS) and Regional Natural Resources Plan (RNRP) changes and proposed changes to ensure that Councillors are aware of the upcoming reporting and decision making programme. It also includes an update on other national policy direction currently under development which will require implementation when gazetted.

To coordinate the many streams of policy information that come into Council and for Councillors to be aware of and to consider against Council the range of activities and policy development information is also provided in this report about Treaty Settlement Processes, OSET Matters Update (Marae and Soak Hole Replacement) Rotorua Te Arawa Lakes New Dashboard Reporting, Spatial Planning Update (Western Bay – Joint Spatial Plan, Rotorua – Future Development Strategy and Eastern Bay spatial planning).

1.1 Legislative Framework

Section 79 of the Resource Management Act 1991 (RMA) requires Regional Council to review the RPS and the RNRP at least every 10 years.

Under the RMA most decisions on how resources are managed are made locally by local authorities. In some cases the Government has determined that it is appropriate to have a nationally consistent approach, i.e. national direction. The range of instruments under the RMA that can be used to develop a nationally consistent approach to resource management issues include national policy statements, national environmental standards, national planning standards and regulations under section 360.

The National Planning Standards (NPStds) are national directions introduced through RMA amendments in 2017. They aim to make RPS, regional and district plans more consistent with each other, easier to use and faster to make.

1.2 Alignment with Strategic Framework

A Healthy Environment	We develop and implement regional plans and policy to protect our natural environment.
Freshwater for Life	Good decision making is supported through improving knowledge of our water resources. We listen to our communities and consider their values and priorities in our regional plans. We collaborate with others to maintain and improve our water resource for future generations. We deliver solutions to local problems to improve water quality and manage quantity. We recognise and provide for Te Mana o Te Wai (intrinsic value of water).
Safe and Resilient Communities	We provide systems and information to increase understanding of natural hazard risks and climate change impacts.
A Vibrant Region	We contribute to delivering integrated planning and growth management strategies especially for sustainable urban management.
The Way We Work	We honour our obligations to Māori.

The delivery of RPS and RNRP Changes are an integral part of the Long Term Plan’s Regional Planning activity which sets Council’s strategic planning and policy direction. The RPS identifies how the integrated management of the region’s natural and physical resources is to be managed by establishing policy direction for regional and district plans. The RNRP is focussed on promoting the sustainable management of land, water and geothermal resources, achieving integrated management and improving environmental quality in the Bay of Plenty Region.

2. Operating Environment

2.1 RPS Changes and RNRP Changes

The current programme of RPS Changes and RNRP Changes to give effect to the RMA s79 requirements, the gazetted NPS’s and NES’s and the NPStds requirements are set out in Attachment 2. Further information about the Treaty Co-Governance RPS Changes is set out below.

2.1.1 Treaty Co-Governance RPS Changes

Draft Proposed Change 5 (Kaituna River) to the RPS is scheduled to be notified for submissions in February 2021. The informal consultation period closes on Friday 16 October. In recommendations to the 11 August 2020 Strategy and Policy Committee meeting it was noted staff proposed seeking Regional Council approval to notify Proposed Change 5 for submissions at the 17 December 2020 meeting.

Proposed Change 5 is the second Treaty Co-Governance RPS change for this region. Change 3 (Rangitāiki River) to the RPS was made operative on 9 October 2018. Another Treaty Co-Governance change for Tauranga Moana is imminent and awaiting final settlement of the Ngāti Ranginui and Ngāi Te Rangi treaty legislation.

Based on draft treaty settlement legislation, further Treaty Co-Governance RPS changes are also likely for Te Whānau a Apanui, Whakatohea and Ngāti Rangitihi.

The timing requirements for RPS changes varies and depends on the details set out in the treaty settlement claim legislation. In the case of Proposed Change 5 (Kaituna River) the obligation to change the RPS to recognise the vision, objectives and desired outcomes of the Kaituna River Document applies each time Regional Council proposes RPS changes.

2.2 Bay of Plenty Treaty Settlements

Ngāti Rangitihi - Deed of Settlement

The Ngāti Rangitihi Deed of Settlement was initialled in July 2020 and ratification will be sought in December 2020. An element of the cultural redress part of the settlement is the ability for Ngāti Rangitihi to be involved in decisions and management of the Tarawera awa. The Settlement package provides for the establishment of the Tarawera Restoration Strategy Group (a co-governance forum) and for the development of a Tarawera Awa Strategy. This document will need to be recognised and provided for in the preparation of RMA policy documents.

The Deed contains a one-off contribution to Council towards its costs for the preparation and approval of the Strategy Document.

Te Whānau a Apanui - Active Negotiation

Council staff are providing assistance to the Te Whānau a Apanui and Te Arawhiti settlement process. Areas of interest for Te Whānau a Apanui include:

· The ability to express Te Whānau a Apanui values as a statement in legislation that will guide local authority decision making.

· The setting out of Te Whānau a Apanui tikanga and kaupapa to influence natural resource management (specifically freshwater).

· The building of more formalised relationships with local government entities.

Whakatōhea - Active Negotiation

Council staff are providing assistance to the Whakatōhea and Te Arawhiti settlement process. Areas of interest for Whakatōhea include:

· The ability to express and discuss their interests and views in relation to the rivers and catchments in the Whakatōhea rohe.

· The potential to jointly undertake functions under the Resource Management Act.

· The building of more formalised relationships with local government entities.

Tauranga Moana – Watching Brief

Cross rohe boundary issues have meant a pause to this Settlement’s progress. Staff are maintaining a watching brief.

2.3 OSET Matters Update

2.3.1 Marae OSET

Proposed Plan Change 14 – OSET requires consent for marae OSET discharges based on discharge volumes and wastewater strength which is considered non-domestic. Marae wastewater typically contains higher volumes of kitchen wastewater and less shower and laundry wastewater therefore it is less diluted. Marae often hold large events and also support communities in civil defence emergencies where they must cater for large numbers of people with little to no warning. This can put pressure on often inadequate OSET systems.

Staff are mindful of the potential costs to iwi to upgrade a number of marae wastewater systems. The Marae Wastewater Project piloted for Tauranga Moana is intended to help marae find solutions and help them through the process. In May, BOPRC made a bid for funding to improve marae wastewater systems through the Government’s Green Projects funding. While this was unsuccessful, Western Bay of Plenty District Council have made significant progress in sourcing funding for OSET upgrades as well as reticulation throughout their district. Staff are working closely with Western Bay to progress this work for the marae identified through the Tauranga Moana pilot project, as well as marae in the rest of the western bay district. An update on the project will be provided to Council at the next Monitoring and Operations Committee.

Other territorial authorities have sought funding to support the connection of marae to reticulated sewerage. Funding options are also available through Te Puni Kokiri (TPK).

2.3.2 Soak Hole Replacement

Proposed PC 14 is moving though it final drafting stages following feedback from the earlier draft and community engagement meetings. To assist in implementing some rules we would like raise the option of funding from Council for the removal of soak holes in the Lake Rotorua Catchment. It aligns well with the Lakes Programme’s focus of nutrient savings to the lake and improving freshwater and health outcomes. Staff are currently investigating options and will seek approval through appropriate channels.

Current OSET Plan

The current OSET Plan includes a deadline of 1 Dec 2014 to upgrade all septic tanks to Aerated Wastewater Treatment System with Nutrient Reduction (AWTS+NR) systems on properties less than 2 ha (property size anticipated at the time to align with Plan Change 10 - Lake Rotorua Nutrient Management (PC10). Implementing this rule while PC 10 is still being developed have been challenging.

Proposed PC 14 OSET

PC14 proposes to reduce the reliance on upgrading to AWTS+NR because of high costs, logistics and enforcement needs.

As noted in previous reports to Council proposed rules options will instead focus on:

1. The removal of soak holes in the Lake Rotorua catchment on properties under 10 ha. PC 10 predominantly manages nutrients on properties above 10ha so provides an equitable approach to reducing N. This approach would lower costs and use designers to develop solutions based on what can be achieved onsite.

2. Target Mamaku reticulation 2.0 tonnes.

3. Addressing discharge from unconnected properties where there is reticulation 2.6 tonnes.

Nutrient management

The nutrient reduction targets for Lake Rotorua will be achieved via land use change, controls on farming activities (PPC10 Lake Rotorua Nutrient Management) and also through engineering solutions. The installation and upgrading of on-site wastewater systems are included as part of the engineering solutions under the Integrated Framework for Lake Rotorua. The preferred proposed rule options 1 to 3 above will complement the actions of PPC10 to reduce nutrients discharged from farming activities.

TN total for Lake Rotorua

Total 11 tonnes N reduction is possible at reduced cost through:

o Remove soak holes - 6.4 tonnes

o Unconnected properties where there is reticulation - 2.6 tonnes

o Target Mamaku reticulation - 2.0 tonnes

Funding

Removal of soak holes is less costly for landowners than an upgrade to an AWTS+NR. We expect costs to be about $7,000 for a site and soil inspection report and new design to replace the soak hole with e.g. trenches and a resource consent:

· The designers will determine what can be achieved on site (Best Practicable Solution) which may result in requirements to add additional storage or other components. This can drive the cost up but for many situations will be more affordable than an upgrade to AWTS+NR.

· Te Arawa Lakes Programme have indicated potential funding of $2M towards the removal of soak holes $2,500 per property x 800 properties.

· Individual properties will require different solutions and costs.

· The remainder of $7,000 ($4,500) could be funded using the Third Party Infrastructure Funding Policy.

· The Te Arawa Lakes Programme could potentially cover the initial $2M towards the removal of soak holes ($2,500 per property x 800 properties), there would be a remaining $3.6M (approximately $4,500 per property x 800 properties) which would still need to be sought. If this was progressed formal approval would be sought through appropriate channels.

2.4 Rotorua Te Arawa Lakes New Dashboard Reporting

At the Strategy and Policy Committee meeting on 11 August 2020, members were briefed on changes to the annual lake water quality reporting, which staff have made to make a better and more complete representation of water quality across the Rotorua Te Arawa Lakes. The results for 2019-2020 are now available, and as described at the August meeting, are presented in the dashboard style format attached, which provides a more complete assessment of the state of the lake, including: the Trophic Level Index (TLI) components, Mātauranga measures and new measures such as the Submerged Plant Index (SPI). The results for the most recent year show seven lakes meeting the TLI target set for that lake in the Natural Resources Regional Plan and two other lakes, including Tarawera, only 0.1 from the target. While these results are promising, long term trends remain the best indicator of water quality and these are also referenced in the attached dashboard (Attachment 1).

2.5 Spatial Planning Update

2.5.1 Western Bay – Joint Spatial Plan

The Government has now become a formal member of the SmartGrowth partnership, and there is now an updated SLG Agreement and Terms of Reference. Work has begun on a Joint Spatial Plan (JSP) which:

· Complies with the requirements of the Government’s Urban Growth Agenda for spatial plans prepared under urban growth partnerships for high-growth urban centres.

· Incorporates relevant parts of the Urban Form and Transport Initiative (UFTI) Final Report 2020 and other associated UFTI work such as the Transport System Plan (TSP).

· Identifies and addresses key gaps such as additional maps for blue-green network, non-council infrastructure (e.g. schools, healthcare), and employment areas.

· Incorporates relevant parts of the SmartGrowth Strategy 2013, and ultimately replaces that Strategy.

Compiling the JSP will be primarily be a desktop exercise using existing information and will rely on targeted engagement only (not a formal Special Consultative Procedure under the LGA) with the aim of gaining approval through the SmartGrowth Leadership Group by July 2021. Work on giving effect to the new National Policy Statement on Urban Development will occur concurrently, as Tauranga is classified as a tier 1 urban environment. Following conclusion of the JSP, work will commence on the Future Development Strategy (FDS) for the Western Bay sub-region for completion by 2023.

In parallel with the JSP, tangata whenua will commence the process of producing an iwi spatial plan layer which will be incorporated into the FDS.

2.5.2 Rotorua – Future Development Strategy

Rotorua is classified as a tier 2 urban environment under the National Policy Statement on Urban Development, so a Housing and Business Development Capacity Assessment and Future Development Strategy for Rotorua must be developed by 2023 under statutory requirements. BOPRC staff have recently met with RLC staff for early discussions of how to progress the required work programme and will have regular ongoing meetings. The Rotorua Spatial Plan approved in 2018 provides a useful starting point for the more detailed work required to give effect to the NPS-UD.

2.5.3 Eastern Bay spatial planning

Current priorities in the Eastern Bay across the respective territorial authorities are: developing a Future Development Strategy - Whakatāne District Council; district plan review – Kawerau District Council; implementing operative district plan – Ōpōtiki District Council. A process to refresh Eastern Bay – Beyond Today as a spatial plan and leverage the outcomes of existing projects is being developed by the partner councils. An update and general direction of work will be presented to the December meeting of the EBOP Joint Committee for discussion.

2.6 Climate Change Adaptation Regional Workshop

The Regional Council hosted a Climate Change Adaption Regional Workshop on 19 October 2020. It was attended by local government staff and councillors, and individuals providing a Māori lens to the issue.

The purpose of the workshop was as a first step towards getting local government agencies together to look at the potential for a collaborative way forward – starting with risk assessments to describe the issue. Key outtakes were:

· Acknowledgement of the significant amount of work on climate change already underway across councils and amongst tangata whenua

· Acknowledgement of the need to apply the principle of co-design with iwi to the framework

· Agreement that a common framework to evaluate climate change risks was needed that allowed for granularity at the local level

· Consensus that any approach needs to start at the grass roots in local communities so that it meets the needs of local people, the land and the natural environment.

The identified next steps are for a 'coalition of the willing' to explore what a regional risk assessment framework could look like, potentially drawing on the national framework but with a strong alignment with the Te Ao Māori worldview

The idea will be that the framework will support a consistent approach to delivery of risk assessments for the region to inform our approach to climate change adaptation within our communities. It would also allow us to engage with Central Government on a consistent basis.

2.7 Mayoral Forum

The 23 October 2020 meeting of the Bay of Plenty Mayoral Forum will consider a presentation “Local government reimagined”. The presentation is designed to stimulate discussion around how local government continues to provide value into the future.

3. National Direction under Development

Council continues to respond to a significant number of Central Government policy initiatives. In some cases timeframes have been amended due to COVID19 however more certainty is now becoming available around policy implications. The table in Attachment 2 provides the list of resource management matters the Government is developing national direction on. Further information about the NPS on Urban Development 2020, NPS Indigenous Biodiversity and NPS for Highly Productive Land is set out below.

3.1 NPS on Urban Development 2020

The National Policy Statement on Urban Development 2020 (NPS-UD) took effect on the 20 August 2020. The NPS-UD recognises the national significance of:

• having well-functioning urban environments that enable all people and communities to provide for their social, economic, and cultural wellbeing, and for their health and safety, now and into the future; and

• providing sufficient development capacity to meet the different needs of people and communities.

The NPS-UD requires RPS changes to:

1. amend the Urban and Rural Growth Management policy framework to enable more land and infrastructure supply, growth (up and out) of urban centres and support well-functioning urban environments;

2. amend the urban limits (ULs) line approach and supporting policies to be more flexible/responsive and enable new urban growth areas including those provided for by the Urban Form and Transport Initiative (UFTI);

3. include criteria for determining what district plan changes will be treated as adding significantly to development capacity including out of sequence or unplanned private development proposals; and

4. set short-medium and long term housing bottom lines for Tier 1 and 2 local authorities based on most recent Housing and Business Development Capacity Assessments (HBAs).

RPS changes to introduce housing bottom lines can be progressed without using the schedule 1 process. Amendments to the UL, urban and rural growth management policies, growth area and business land sequencing and timing will require schedule 1 processes and must be progressed as soon as practicable.

At this stage it is anticipated the RPS will be amended to give effect to the NPSUD in two stages. The first stage potentially notified in late 2021 to insert criteria, housing bottom lines and the hard line urban limits line policy approach. The second stage will likely be aligned with the broader RPS review in 2023/24 and ensure alignment with the broader policy package to give effect to the NPS-HPL, NPSFM and NPS-IB.

3.2 NPS for Indigenous Biodiversity

A draft National Policy Statement on Indigenous Biodiversity (NPSIB) was released for consultation in November 2019. The consultation period closed on 14 March 2020. The NPSIB is likely to be gazetted in the second half of 2021.

The draft NPSIB requires RPS changes to:

• insert specific, targeted policies to support, restore and enhance indigenous biodiversity management

• identify, map and record SNAs using specified criteria and approaches (e.g. partnership, transparency, consistency) including SNAs whose integrity is degraded

• include indigenous vegetation cover targets (expressed as a percentage figure within a specified timeframe) for urban and rural areas in the region that presently have less than 10 per cent indigenous vegetation cover.

Regional Council must also commence the development of a regional biodiversity strategy within 3 years of gazettal.

As drafted, RPS changes to give effect to the NPSIB requirement to identify and map SNAs must be completed within 5 years of gazettal. All other NPSIB required RPS changes must be made as soon as practicable but no later than 31 December 2028.

3.3 NPS for Highly Productive Land

An NPS for Highly Productive Land (NPS-HPL) is likely to be gazetted in the first half of 2021. The NPS-HPL purpose is to:

• recognise the full range of values and benefits associated with HPL use for primary production

• maintain HPL availability for primary production for future generations; and

• protect HPL from inappropriate subdivision, use and development.

The draft NPS-HPL requires RPS changes to:

• identify and map HPL using a specified criteria

• include objectives and policies to give effect to the NPS-HPL purpose of improving how HPL is managed including protecting it from inappropriate subdivision, use and development and maintaining its availability for primary production for future generations.

As drafted, NPS-HPL policy direction complements the existing RPS rural growth management policies that promote the protection and management of versatile land in the Bay of Plenty region. Most of these existing policies will simply need reframing to use consistent terminology (i.e. versatile land changed to HPL).

4. Considerations

4.1 Risks and Mitigations

This is an information only report and matters of risk in relation to the freshwater package of RPS and RNRP changes are discussed in the separate reports (Giving effect to the National Policy Statement for Freshwater Management through the Bay of Plenty Regional Policy Statement and Essential Freshwater Policy Programme – Implementing the National Policy Statement for Freshwater management 2020) in this Committee Agenda.

4.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts. The effects of climate change and resilience to climate change will be considered during the NPSFM implementation policy development and analysis process.

4.3 Implications for Māori

Refer to the Essential Freshwater Policy Programme – Implementing the National Policy Statement for Freshwater Management 2020 report in this agenda. The NPSFM clearly sets out direction to involve tangata whenua in freshwater management and the relevant RPS and RNRP Changes.

The other RMA processes and Plan Changes discussed in this report all involve consideration of implications for Māori, engagement and consideration of iwi planning documents.

4.4 Financial Implications

The matters addressed in this report are of a procedural nature and information only. There are no material unbudgeted financial implications and this fits within the allocated budgets.

5. Next Steps

Further updates on operating environment areas that influence and inform Council’s policy direction and work will be provided at future Strategy and Policy Committee Meetings.

Attachments

Attachment 1 - Rotorua Te Arawa Lakes Health Summary 2019/2020 Dashboard ⇩

Attachment 2 - RPS and RNRP Changes and National Policy Direction Under Development ⇩



Report To:	Strategy and Policy Committee
Meeting Date:	3 November 2020
Report Writer:	Nicola Green, Principal Advisor, Policy & Planning and Julie Bevan, Policy & Planning Manager
Report Authoriser:	Namouta Poutasi, General Manager, Strategy & Science
Purpose:	To approve a programme plan to implement the National Policy Statement for Freshwater Management 2020 for Toi Moana Bay of Plenty Regional Council

Essential Freshwater Policy Programme - Implementing the National Policy Statement for Freshwater Management 2020

Executive Summary

This report presents an Essential Freshwater Policy Programme Plan, and a supporting Communications and Engagement Plan for approval. The Programme Plan is necessary to implement the extensive new requirements of the National Policy Statement for Freshwater Management 2020 (NPSFM) in particular, by the mandatory deadline of December 2024 (for notifying proposed changes to the Regional Policy Statement (RPS) and Regional Natural Resources Plan (RNRP)). Changes made in response to feedback from the Strategy and Policy Committee at two prior workshops (18 June and 29 September 2020) are set out in the report.

Council’s approach to Tangata Whenua involvement was agreed at the 18 June 2020 extraordinary Council meeting, as set out in Te Hononga: Bay of Plenty Regional Council’s Māori Relationships and Engagement Plan for NPSFM Implementation. Discussions with iwi and hapu about this are progressing.

Some key points within the programme plan are raised in the report, including, proposals to:

· establish Strategy and Policy Committee as a whole as the decision maker;

· deliver the programme by way of one RPS and one RNRP change;

· include in the scope mandatory 10 yearly review of land and water parts of the RNRP (and the Gravel Plan, Tarawera Catchment Plan), and compliance with National Planning Standards;

· communicate and engage with the community and stakeholders throughout the process, using primarily (but not solely) online engagement in the until 2022, followed by a full year of intensive engagement throughout the region in 2023; and

· enable flexibility to adapt in response to national collaboration projects and future central government legislative and policy changes.

Decisions to approve the Programme Plan are considered to have a medium level of significance because the full cost of implementing the programme are not yet known and an adaptive management/flexible approach will be needed in which budgets are revisited during annual and long term planning processes.

This report also informs the Committee of mandatory immediate amendments to the RNRP that will be made as soon as possible, without following a schedule 1 (submission and hearings). No decision on this is required.

A separate agenda report for this meeting seeks approval of the scope and timing of changes to the RPS to implement the NPSFM.

Recommendations

That the Strategy and Policy Committee:

1 Receives the report, Essential Freshwater Policy Programme - Implementing the National Policy Statement for Freshwater Management 2020.

2 Approves the Programme set out in this report and attached, including:

(a) The Essential Freshwater Policy Programme Plan

(b) The Communications and Engagement Plan for the Essential Freshwater Policy Programme

3 Approves the proposal that Strategy and Policy Committee as a whole is the decision maker for this work programme, and provides direction as to the role of Komiti Māori in the decision making process.

4 Notes the Regional Natural Resources Plan will be amended (without using the Schedule 1 process) to:

a) insert NPSFM 2020 clauses 3.22(1) - Natural Inland Wetlands, 3.24(1) – Rivers and 3.26(1) -Fish Passage of the NPSFM 2020 (or words to the same effect); and

b) delete the word ‘secondary’ in both places it appears in RNRP policy DW P6 (Policy 43A).

5 Confirms the decision has a medium level of significance as determined by the Council’s Significance and Engagement Policy. Council has identified and assessed different options and considered community views as part of making the decision, in proportion to the level of significance.

1. Introduction

Council has been progressing a work programme to implement the National Policy Statement for Freshwater Management 2014 (amended 2017) in stages across the region, completing in December 2030, involving several plan changes. The former Regional Water and Land Plan sections of the Regional Natural Resources Plan (RNRP) are also scheduled for 10 year rolling review (required by the RMA) in stages alongside these plan changes.

The legislative and policy framework that directs the Freshwater Policy RNRP review and NPSFM Implementation programme has now changed (see section 1.1), and the programme also needs to change to implement requirements effectively and efficiently. The changes herald new and additional work for Policy and Planning, Science and Data Services, Regulatory Services, and Catchment Management in particular. Council has identified implementation of regulatory reforms as their highest strategic priority. Regional Sector CEOs have flagged a need to change the way we work and collaborate as a sector, so that all regional councils can deliver well.

This report presents a new programme plan, renamed the Essential Freshwater Policy Programme plan, and a supporting communications and engagement plan for approval. Strategy and Policy Committee has discussed this work programme at two prior workshops (18 June and 29 September 2020) as shown in the diagram below. Key changes made in response to Councillor feedback are set out in the table below.

Some key decision points within the programme plan are set out in this report. A separate agenda report seeks decision on the scope and timing of Regional Policy Statement changes to implement the NPSFM.

This report also informs the Committee of mandatory changes that will be made to the Regional Natural Resources Plan without notification and hearing processes.

Topic	Change in response to Councillor feedback
Essential Freshwater Programme Plan
Outcomes sought: BOPRC and Tangata Whenua develop greater partnership for freshwater management:	Added “increased tangata whenua participation in freshwater management” as a measure of success.
Out of scope	Added “Addressing claims under the Treaty of Waitangi relating to Māori rights and interests in freshwater. This is the role of the Crown.”
Assumptions	Added: “The Programme will need to be responsive to change in response to any further changes to national legislation …and … national and regional sector collaborative implementation...” Added “Online communications and community engagement will be necessary throughout and information updates and key messages, as well as advice about new regulations, can be provided and discussed by staff at community events they would normally attend (e.g., land management officers attend focus catchment group meetings).
Programme Structure: Governance	Deleted reference to a working group. See section 2.2 below.

1.1 Legislative Framework

The following national legislative and policy changes directly affect Council’s Essential Freshwater Policy programme:

· National Planning Standards (NPStds) require changes to the structure, formatting, some definitions and some content of the Regional Policy Statement and Regional Plans within specified timeframes;

· Resource Management Act 1991 (RMA) amendments which, among other things, introduce:

§ a deadline of 31 December 2024 for notifying RPS and regional plan changes that fully implement the National Policy Statement for Freshwater Management 2020 (NPSFM); and

§ a fast tracked freshwater hearings process;

· a substantially amended National Policy Statement for Freshwater Management 2020 (NPSFM), which regional councils are primarily responsible for implementing by way of changes to their RPS, Regional Plans and other actions;

· a new National Environmental Standard for Freshwater (NESF), new Stock Exclusion regulations, and amendments to water metering regulations.

Further legislative (RMA) reform and national policy are likely in the next three years, which will also affect this work programme. Nevertheless, Council is obliged to progress and deliver NPSFM implementation by the end of 2024.

1.2 Alignment with Strategic Framework

A Healthy Environment	We develop and implement regional plans and policy to protect our natural environment.
Freshwater for Life	Good decision making is supported through improving knowledge of our water resources. We listen to our communities and consider their values and priorities in our regional plans. We collaborate with others to maintain and improve our water resource for future generations. We deliver solutions to local problems to improve water quality and manage quantity. We recognise and provide for Te Mana o Te Wai (intrinsic value of water).
The Way We Work	We honour our obligations to Māori.

The work programme is specifically focussed on improving the sustainable management of freshwater across the Region. The NPSFM establishes Te Mana o te Wai as the fundamental concept underpinning freshwater management. It is also very directive about active involvement of Māori in freshwater management.

The implementation of the NPSFM will require changes to the:

· Regional Policy Statement, including an objective explaining how the management of freshwater in the region will give effect to Te Mana o te Wai and objectives setting long-term visions for freshwater management units; and

· Regional Natural Resources Plan, including (among many other requirements) measurable water quality and ecosystem health targets, limits, and methods to achieve them, as well as minimum flows and take limits.

It also directs monitoring plans, assessing and reporting of progress, so that performance can be measured over time.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

High - Positive

þ Cultural

Medium - Positive

þ Social

Low - Positive

þ Economic

Low - Negative

A key purpose of the Programme is to maintain or improve the health and wellbeing of freshwater bodies and freshwater ecosystems. This is set as the highest priority of the NPSFM, followed by providing for the health needs of people, and then for the ability of people and communities to provide for their social, economic, and cultural wellbeing now and in to the future.

Positive cultural outcomes are expected from this programme. The NPSFM clearly directs council to identify Māori values and interests in freshwater and demonstrate how these are provided for in decisions. Mahinga Kai is a compulsory value that must be provided for. See section 3.3 for more explanation.

There will be social and economic implications of any policy and regulatory changes that focus on improving freshwater health and wellbeing. Some will be positive and some negative. At this stage, it is difficult to anticipate the net outcomes. There will be economic costs, and some may be significant, as seen as a result of the Lake Rotorua Nutrient Rules and the NESF regulations. There may also be some economic opportunities.

1. Significance

The recommended proposal/decision has been assessed against the criteria and thresholds in Council’s Significance and Engagement Policy, and can be considered:

Medium

The financial costs and implications of the decision are not yet known or provided for.

2. Implementation Programme

The proposed Essential Freshwater Policy Programme Plan is attached, along with a Communications and Engagement Plan. Some of the key shifts are outlined in more detail below.

2.1 Scope

The programme plan attached sets what is in scope, and what is out of scope. Some key in scope shifts are summarised below.

Programme scope	Previous approach (under NPSFM 2014 (as amended in 2017))	Rationale
One RPS change and one RNRP change	Staged implementation in Water Management Areas (WMAs), resulting in 7+ plan changes.	The NPSFM requires a RPS change. The timeframe for full implementation of the NPSFM is no later than December 2024 (notified plan changes), i.e., not December 2030 which was the previous timeframe. The scope of the RPS change is the subject of a separate report to this committee meeting. Council will not be able to resource preparing separate plan changes for each WMA and multiple plan hearing processes within the new timeframes. Proposed Plan Changes 9 and 10 proceedings have demonstrated the large resource commitment.
RNRP (land and water sections) review Full review of the RNRP (land and water chapters). This will include review and integration into the RNRP of the Gravel Plan and the Tarawera Catchment Plan. The Tauranga Geothermal Plan Change will be developed at the same time to integrate with groundwater quantity management. Some topics will need more extensive review, while others may be carried in to the new plan relatively unchanged.	Rolling review of the RNRP, with 3 sets of plan changes, completing in 2025 (notified plan change).	10 yearly review was required and initiated in December 2018. If RNRP review topics are not notified with NPSFM implementation (i.e., by end of 2024) they will be progressed after mid 2025 – this is an unreasonably long delay for 10 yearly review. While parts of the RNRP have been updated, an initial review of most 10+ year old sections show they should be made more consistent with recent policy direction and current best practice. NPSFM implementation requires both region-wide and Freshwater Management Unit (FMU) scale provisions. While the review period will be very intensive, the result will be a more integrated RNRP.
National Planning Standards The RPS will be made largely NPStds compliant by the stated deadline of May 2022. The RNRP will be made compliant with the National Planning Standards by December 2024 when RNRP changes to implement the NPSFM are notified (with the exception of the ePlan part which is not required until 2029).		The National Planning Standards require changes to the structure, format and changes to some definitions and content. Changes to the RNRP are best achieved when the document is going through a plan change.

2.2 Decision Making

Several decision making options were considered as set out in the table below. Option 1 has been recommended instead of Option 2, in response to Councillors’ feedback that all members should remain fully involved in the decisions leading up to the final decision to notify the plan change.

The RPS and RNRP change will have high significance level, and all Councillors will be involved in decision to notify. Involving all Councillors (rather than a sub-committee as in Option 4) in key decisions leading up to a notified plan change, ensures that Councillors have full line of sight of the RNRP review and freshwater policy package, enables decision making hurdles to be resolved earlier, reducing risk of concerns and disagreements in 2024 (just prior to notification).

Option 1 is recommended. That is, staff report to Strategy and Policy Committee on key policy decisions at specific plan making stages, which is:

· Issues and options (pre-engagement)

· Options analysis and recommendations (post engagement)

· Draft RPS & RNRP Changes

· Proposed RPS & RNRP changes for notification

Workshops will be held on all topics prior to reporting for decision. It is likely this can be approximately quarterly in 2021 and 2023, increasing to monthly for 2022 and 2024 reflecting the key decision making phases.

Regular information updates will be provided by way of the Strategy and Policy Committee newsletter and regular informal briefings.

This option ensures Councillors are properly advised and informed via workshops prior to making governance decisions at key decision points, while the project team is enabled to get on with operational delivery without a high information only reporting burden.

Updates (not for decision) can be provided by informal methods. Councillors will also have opportunities to attend community engagement events in 2023 in order to hear public feedback. If they wish, there will be opportunities to participate in and contribute to on-line engagement (e.g. webinars etc.).

This aligns with Councillors’ strategic intention to focus on decision making and to reduce information only reporting via committee meetings. One potential shortcoming is that meetings are 3 monthly and no direction or decisions can be provided to staff in between.

	Option 1: Full Committee, Regular Advice Recommended	Option 2: Full Committee and Working Group	Option 3: Status Quo – Full Committee	Option 4: Sub-Committee
Assessment criteria	S& P committee as decision maker Decision meetings + pre-decision workshops Informal updates via fortnightly /monthly briefings and Strategy & Policy newsletter	S&P Committee as decision maker Decision meetings + pre-decision workshops Working Group of 4-5 members for informal updates and interim direction	S&P Committee as decision maker Decision meetings + pre-decision workshops Updates provided as a standing agenda item	Sub-committee Decision meetings + pre-decision workshops
All councillors must decide to notify the Plan Changes (in 2024). They are informed and ready to make this decision.	√√	√	√√	X
Decision makers sufficiently informed for decision making	√√	√	√√	√ sub-committee X Full council
Implements councillors’ stated focus on decision only governance level reports	√√	√√	X	√
Agile, fast direction for project team	-	√	-	√
Streamlined reporting – minimise long, resource hungry reporting processes for information only	√√	√√	X	√

Staff seek direction/decision from Strategy and Policy Committee on the role of Komiti Māori in the decision making process. One option considered in prior workshops was that Komiti Māori would provide recommendations to Strategy and Policy, prior to Strategy and Policy Committee Decisions, on matters related especially to Kaupapa Māori (e.g., tangata whenua involvement, mahinga kai values etc). No clear direction was formed.

Staff are in the process of asking iwi and co-governance bodies how they would like to be involved in the EFW Policy programme. This will be reported to Council early next year with an engagement and involvement proposal.

2.3 Timeframes

High level programme phases are depicted in the table below, noting there is overlap, interconnection and iteration between the four phases. Dark blue indicates the most intensive work, while light blue indicates that work continues.

	Late 2020	2021	2022	2023	2024	2025	2026	2027 onwards
1. Research, technical
2. Policy Options Development
3. Kaupapa Māori involvement
4. Communications and Community engagement
5. Final policy drafting and implementation planning
6. Formal submission and hearing process
7. Implementation

2.3.1 Decision schedule

A decision schedule estimating the order and timing of decisions for the Committee is provided below. This will be amended as needed.

Nature of decision	Committee	Timing
Approval of RNRP Review and NPSFM Implementation Programme	Strategy and Policy	3 November 2020
RPS change scope and timing	Strategy and Policy	3 November 2020
Draft structure of the RPS and RNRP, compliant with new National Planning Standards	Strategy and Policy	By March 2021
FMUs for the region – these form a fundamental spatial scale that other NPSFM implementation work relies on	Strategy and Policy	By March 2021
Iwi and Hapū Engagement Plans	Strategy and Policy	By March 2021
Recommendations to Strategy and Policy to approve Kaupapa Māori specific policy options and frameworks for the RNRP (several topics to be scheduled across multiple meetings), includes working draft plan change text.	Komiti Māori (subject to decisions sought in section 2.2 above).	Starts Late 2021, completed by December 2022
Approval of policy options for engagement (many topics to be scheduled across multiple meetings), includes working draft plan change text.	Strategy and Policy	Starts Late 2021, completed by December 2022
Approval of Intensive Community Engagement Plan and materials for engagement in 2023	Strategy and Policy	By December 2022
Approval of recommended policy options and changes in response to feedback from engagement	Strategy and Policy	By Mid 2024
Recommendations to support the one Freshwater Hearing Panel member nominated by tangata whenua.	Full Council	Late 2024
Nomination of two Freshwater Hearings Panel members and support of nomination of one member by tangata whenua	Full Council	Late 2024
Decision to notify	Full Council	Late 2024

3. Immediate Mandatory Regional Natural Resources Plan amendments

This section is for information only.

3.1 Insertion of three new policies

Clause 1.7 of the NPSFM 2020 directs Council to change the RNRP by inserting the following specific policies (or words to the same effect) without the need for an RMA Schedule 1 process. The specific policies are set out in NPSFM 2020:

· Clause 3.22(1) (Natural Inland Wetlands)

· Clause 3.24(1) (Rivers)

· Clause 3.26(1) (Fish Passage)

3.2 Deletion of the word ‘secondary’ from existing RNRP policy DW P6 (Policy 43A)

Policy A4 of the NPSFM 2014 (as amended in 2017) also required a small amendment to existing RNRP policy DW Policy 6 (Policy 43A) without using the Schedule 1 process, which has not yet been implemented. This change effectively required the removal of the word ‘secondary’ in two places that it appears in existing RNRP policy DW Policy 6 (Policy 43A).

3.3 Progressing these amendments

No council decision is required to make these changes as they are mandatory actions. Although the NPSFM 2014 (as amended in 2017) no longer exists, removing the word ‘secondary’ is still necessary to align with the NPSFM 2020. This alteration is considered to be of minor effect, so this change can be made without notifying a plan change (using clause 16(2), Schedule 1 of the RMA).

Staff will update the RNRP as soon as possible in the same way the regional plan was amended to include policies required by the NPSFM 2011 & NPSFM 2014.

4. Considerations

4.1 Risks and Mitigations

Please refer to the risks and mitigations set out on the Programme Plan attached.

4.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts. The effects of climate change and resilience to climate change will considered during the development and assessment of policy options that implement the NPSFM.

4.3 Implications for Māori

The NPSFM clearly sets out direction to involve tangata whenua in freshwater management, and this is seated in principles of Te Mana o te Wai. It also directs Council to identify Māori freshwater values and wrap these in to the plan making process, and to set out a monitoring plan for mātauranga Māori attributes.

The implications of this work programme for Māori were summarised at the Committee’s 18 June 2020 extraordinary meeting, where the Committee approved Te Hononga: Bay of Plenty Regional Council’s Māori Relationships and Engagement Plan for implementing the National Policy Statement for Freshwater Management. Involvement expectations, and capacity and capability to be involved will vary across the region. It is anticipated that capacity and capability for Māori will be stretched, and also that a substantial amount of staff time and resource will be needed to actively involve tangata whenua throughout the process. Staff are in the process of discussing with iwi how they would like to be involved and will report to the Committee early next year with more advanced engagement plans.

4.4 Community Engagement

CONSULT

Whakauiuia

To obtain input or feedback from affected communities about our analysis, alternatives, and /or proposed decisions.

A Communications and Engagement Plan is attached. Key components are as follows:

1. Early and ongoing communication and updates via e-newsletters, social media and a specific web-page.

2. Ongoing opportunities for online input and feedback, e.g., on draft freshwater management units, and values, visions, outcomes, objectives, targets and limits. This feedback will be considered as policy options are developed. Information updates and key messages will be provided and discussed by staff at community events they would normally attend (e.g., land management officers attend focus catchment group and various farmer group meetings). Some drop in sessions/online information sessions or similar may be held in 2021 to explain and encourage compliance with new freshwater regulations.

3. Targeted key stakeholder discussions seeking without prejudice, confidential early advice and review from our Territorial Local Authorities Freshwater Collaboration Forum and Regional Water Advisory Panel who have deep understanding of their sectors and of the RMA and NPSFM process. These fora will be encouraged to communicate and discuss specific topics with their members, and provide initial feedback.

4. Tangata whenua involvement throughout the process. Discussions are being held with iwi, hapu and Co-governance bodies about options, and recommendations will be made to Committee early next year. This is likely to include a tangata whenua advisory group.

5. Intensive community engagement throughout the region during 2023 on the draft policy package. At this point we will be in a position to prepare an integrated communications package of issues, options and the implications of these options for feedback.

Feedback will be summarised, along with how they have been considered, in policy options reports for Council.

Two to three more community group workshops will be held with existing Freshwater Futures community groups to complete the series of topics Council committed to discussing with them. Intensive engagement with the broader community will be in 2023, with online engagement in 2021 and 2022.

4.5 Financial Implications

The financial implications of this work programme are being considered through the planning process for the Long Term Plan 2021-2031, along with assumptions. An adaptive, flexible approach will be required as the years progress, given the large amount of national change pending, and that efficiencies resulting from national collaboration can’t be estimated yet.

4.5.1 Current Budget Implications

There are no implications for the current Annual Plan budget because the policy work to be completed in this financial year can be delivered within the 2020-2021 budget of $1.183m.

4.5.2 Future Budget Implications

The table below demonstrates the Water Policy Annual Plan 2020/2021 budget and draft LTP 2021-31 budget and the estimate costs associated with implementing the NPSFM. These operating expenditure costs are including staff costs

Current estimates assume more funding will be needed (see Additional Expenditure Anticipated row) between years 2022/23 and 2027/28 to cover higher legal, specialist, hearings, hearings panel, and regulatory implementation costs after notification of the Proposed Plan changes.

	Current	2021/22	2022/23	2023/24	2024/25	2025/26	2026/27	2027/28	2028/29	2029/30	2030/ 31
	$000	$000	$000	$000	$000	$000	$000	$000	$000	$000	$000
Operating Expenditure - Budget	$1,197	$1,202	$1,306	$1,640	$1,245	$1,263	$774	$833	$853	$875	$875
Programme Plan to implement the NPSFM
Admin.	$50	$51	$52	$53	$54	$56	$57	$59	$60	$62	$62
Comms. + Engagement	$60	$60	$200	$300	$60	$100	$100	$100	$100	$100	$100
Hearing Panel	$0	$0	$0	$0	$200	$300	$200	$50	$0	$0	$0
Legal	$0	$0	$50	$100	$100	$200	$100	$50	$0	$0	$0
Maori Engagement	$500	$500	$500	$500	$500	$500	$493	$500	$500	$500	$500
Tech. + Expert Advice	$573	$577	$488	$556	$491	$200	$200	$257	$276	$296	$296
Est. Programme expenditure	$1,183	$1,188	$1,290	$1,509	$1,405	$1,356	$1,157	$1,016	$936	$958	$958
*Additional Expenditure Anticipated*	Within budget				$160	$93	$383	$183	$83	$83	$83

General Rate Impact
$ per rateable property					$1.17	$0.68	$2.77	$1.31	$0.59	$0.59	$0.58
General Rates % increase					0.48%	0.28%	1.14%	0.55%	0.24%	0.22%	0.22%

It is anticipated that 2021-2024 budgets will be sufficient if a large set of assumptions prevail (which they may not). In particular:

· One RPS change and one large RNRP change will be notified in late 2024 to implement the NPSFM;

· Tangata whenua involvement requires $500,000 per year. This may well be an underestimate. However, until engagement relationships land, a more accurate estimate has not been provided. This will be explored further through the Long Term Plan.

· Streamlined community engagement (online info, surveys, participatory tools) up to 2023, detailed/comprehensive community engagement throughout 2023 (intensive, informed, public consultation on options, public meetings etc.).

· Science, modelling, monitoring, data gathering and science reporting is covered by the Science and Data Services activity budgets. Additional Monitoring requirements will be discussed through the Long Term Planning process.

· Future national legislative and policy changes do not affect our proposed work programme.

· Implementation of freshwater regulations, including farm plans, is covered by regulatory services and integrated catchment management budgets, primarily through reallocation of current priorities and expenditure. This will need to be revisited after freshwater farm planning regulations are released by the government (potentially in late 2021). Council previously approved an increase of $180,000 per year for additional staff resources for regulatory services.

5. Next Steps

Immediately after the work programme is approved:

· public communications will be released expressing the high level time line and opportunities for public involvement;

· the work programme will launch; and

· the programme lead team will report regularly to Council as set out in section 2.1.3 above.

A high level timeline is set out in the Programme Plan and broadly summarised below along with key Strategy and Policy Committee decision points.

Attachments

Attachment 1 - Bay of Plenty Regional Council Essential Freshwater Policy Programme Plan ⇩

Attachment 2 - Bay of Plenty Regional Council Communications and Engagement Plan for the Esssential Freshwater Policy Programme ⇩



Report To:	Strategy and Policy Committee
Meeting Date:	3 November 2020
Report Writer:	Karen Parcell, Team Leader Kaiwhakatinana and Julie Bevan, Policy & Planning Manager
Report Authoriser:	Namouta Poutasi, General Manager, Strategy & Science
Purpose:	To adopt Plan Change 13 (Air Quality) to the Regional Natural Resources Plan and refer to the Minister of Conservation

Adoption of Plan Change 13 (Air Quality)

Executive Summary

Plan Change 13 (Air Quality) to the Regional Natural Resources Plan (PC13) has been through the full public notification process of Schedule 1 of the Resource Management Act 1991. The bulk of the provisions are beyond appeal and must be treated as operative.

One topic remains under appeal (handling of bulk solid materials) and at the time of writing has been set down for Environment Court Hearing starting 19 October 2020. This topic is discrete and any resolution will not affect the remaining provisions which are beyond appeal.

Currently there is some confusion for plan users about the status of PC13, which version applies and whether to use the Regional Air Plan. Adopting Plan Change 13 as operative will address that confusion with the inclusion of PC13 as the Air Quality chapter and making it clear that the Regional Air Plan no longer applies.

This report recommends that the Committee adopts the remainder of Plan Change 13 as operative. As Plan Change 13 is also a regional coastal plan, it must be sent to the Minister of Conservation for approval.

If the Committee accept the recommendations, staff will send Plan Change 13 to the Minister of Conservation at the first opportunity following the General Election.

Recommendations

That the Strategy and Policy Committee:

1 Receives the report, Adoption of Plan Change 13 (Air Quality).

2 Adopts all provisions of Proposed Plan Change 13 (Air Quality) to the Regional Natural Resources Plan that are beyond appeal and the consequential changes to the Regional Natural Resources Plan, to be effected by affixing the seal of the Regional Council, for reference to the Minister of Conservation for approval.

3 Delegates to the Group Manager Strategy and Science to make minor corrections to Proposed Plan Change 13 (Air Quality) to the Regional Natural Resources Plan that are beyond appeal and the consequential changes if required.

4 Delegates to the Chief Executive the authority to set the date to make Proposed Plan Change 13 (Air Quality) to the Regional Natural Resources Plan operative, once approval has been given by the Minister of Conservation.

1. Introduction

Proposed Plan Change 13 (Air Quality) to the Regional Natural Resources Plan (PC13) was prepared under the Resource Management Act 1991 (RMA) and is nearing the end of its public consultation process under Schedule 1.

Provisions to manage air quality were previously included in the stand alone Regional Air Plan. PC13 has been processed as a plan change to the Regional Natural Resources Plan and will be included as a separate Air Quality chapter.

1.1 Alignment with Strategic Framework

A Healthy Environment

We develop and implement regional plans and policy to protect our natural environment.

Preparation of an air plan is not compulsory under the RMA, however regional councils may choose to prepare one to allow them to carry out their role under the RMA.

Once operative, PC13 will move into its implementation phase as the Air Quality chapter of the Regional Natural Resources Plan.

1.1.1 Community Well-beings Assessment

Community well-beings have been assessed at several points during the two year process since public notification of PC13, including during the original assessment of appropriateness according to Section 32 RMA (released alongside proposed PC13) and the Section 32AA assessment following the decisions.

2. Background

The current Operative Regional Air Plan became operative in December 2003, and was reviewed in 2013. The review resulted in the development of the second generation air plan which became PC13.

The diagram below summarises the process to date.

The Bay of Plenty Regional Council (Council) notified the Plan Change on 27 February 2018, receiving 80 submissions and 30 further submissions. Council held the Hearing over five days during October 2018 in Tauranga and Rotorua, with 36 submitters presenting to the Hearing Panel. Deliberations took place in November 2018 and the Hearing closed on 8 November 2018.

The Hearing Panel recommendations were approved by the Regional Direction and Delivery Committee on 19 February 2019 and Council publicly released its decisions version of the Plan Change on 12 March 2019.

The appeals period closed on 26 April 2019 with appeals lodged by ten appellants. Sixteen parties requested to be a party to the proceedings under section 274 (s274) of the Resource Management Act 1991 (RMA). These parties include the ten original appellants and an additional 6 organisations.

In June 2019 the Regional Direction and Delivery Committee appointed an Appeals Sub-Committee. The Sub-Committee held four meetings (October 2019, January, February, and May 2020) to provide direction to staff for progression of appeal points.

During October and November 2019, staff held meetings with all parties to discuss appeal points, and to negotiate resolution of any appeals where possible. Following negotiations two consent orders were approved by the Court resolving appeals on crematoria, mobile or emergency diesel generators, and roads and free-range farming, in full.

During November 2019 staff held follow up meetings and email exchanges to attempt to resolve the remaining topics. This was unsuccessful and the remaining topics were set down for Court assisted mediation which was completed in January 2020.

3. Legal Context

PC13 manages the discharge of contaminants to air for the entire region, including the Coastal Marine Area, therefore PC13 is also a regional coastal plan. Therefore any regional coastal plan must be approved by the Minister of Conservation according to Clause 19 of Schedule 1 of the Resource Management Act 1991 (RMA) according to the following diagram.

Clause 17(2) specifically provides for Council to adopt part of a proposed plan if all appeals relating to that part of have been disposed of.

Approval of a regional coastal plan would typically take 4-6 months depending on the complexity of the plan and whether the Minister wishes to use their powers under section 19(1) to make amendments to the plan. If that is the case, the Department of Conservation would discuss any proposed changes with Council.

Due to the General Election, this process may be delayed, however staff will forward PC13 to the Minister at the earliest opportunity. .

4. Current status of appeals

The Court set out an appeal topic structure as follows:

Topic 1 – Appeals proposed to be resolved by direct negotiation

· Outdoor fires on business premises

· Crematoria

· Discharge of dairy factory waste

· Mobile or emergency diesel generators

· Roads and free-range farming

Topic 2 – Handling of bulk solid materials

Topic 3 – Reverse sensitivity

Topic 4 – Objectives, Policies, Rule AQ R1, Method and Definitions

Topic 5 – Open burning

Topic 6 – Agrichemical spraying

Topic 1 and topics 3-6 have all been resolved in full. The consent orders are included as Attachments 1 to 8.

4.1 Topic 2 – Handling of bulk solid materials

Topic 2 remains unresolved and is progressing to Environment Court Hearing. As this report is not public excluded and the process is confidential at this stage, a limited update is given here.

Topic 2 covers the handling of bulk solid materials. Rule AQ R22 of PC13 classifies handling of bulk solid material (such as palm kernel extract) as a discretionary activity. There are two appellants to this rule and its accompanying definition of “bulk solid material”.

Timberlands Limited (Timberlands) requests that either rule AQ R22 is removed or that the definition of bulk solid material is amended to exclude logs. This appeal point has been resolved between all parties at mediation and a draft consent order is currently lying in Court awaiting the resolution of the remaining appeals.

Swap Stockfoods Ltd (Swaps) requests the deletion of AQ R22 or that the rule is amended to a permitted activity rule with conditions.

Section 274 parties to this appeal in support of Council are the Lakes District Health Board, Bay of Plenty District Health Board, and Te Rūnanga o Ngāi te Rangi Iwi Trust. Parties in opposition are Glencore Agriculture (NZ) Limited, International Nutritionals, and ADM New Zealand Limited. The Port of Tauranga Limited is neutral.

Ballance Agri-Nutrients Ltd have withdrawn their appeal.

At the time of writing, the Environment Court Hearing is set down to start on 19 October 2020.

5. Making PC13 operative

The current Regional Air Plan is still operative, however, as its content has been replaced by PC13 it has very little weight. The majority of PC13 is beyond appeal and must be treated as operative according to Section 86F RMA. Therefore it has full legal weight, despite being marked as “proposed”.

This can create confusion for plan users who may be unsure whether the Regional Air Plan still applies or which version of PC13 to use. Adoption of PC13 and its inclusion as the Air Quality chapter will resolve this confusion and replace the Regional Air Plan. Therefore staff recommend that PC13 is made operative and included in the Regional National Resources Plan as the Air Quality chapter. PC13 and its consequential changes are included as Attachments 9 and 10. This would exclude the rule and definition still under appeal in Topic 2. Topic 2 is a discrete topic where its resolution has no bearing on the other provisions of PC13.

One disadvantage of this approach is that PC13 requires approval by the Minister of Conservation which could take some time particularly following a General Election. Staff will forward PC13 to the Minister at the first opportunity.

6. National Planning Standards

The National Planning Standards were released in April 2019 containing a number of standards for regional plans that must be complied with.

PC13 has been reconfigured to comply with the National Planning Standards. This includes rearranging topics into sub-chapters and renumbering all provisions, clauses and conditions according to the standard.

7. Considerations

7.1 Risks and Mitigations

Risks and mitigations have been considered throughout the process as part of section 32 assessments, submissions, and during mediation with appeal parties.

7.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

7.3 Implications for Māori

Implications for Māori have been considered throughout the process including an extended consultation process, the submissions process and through appeals.

7.4 Community Engagement

CONSULT

Whakauiuia

To obtain input or feedback from affected communities about our analysis, alternatives, and /or proposed decisions.

Community engagement has been carried out extensively during the drafting and notification of PC13, including an extended consultation process, the submissions process and through appeals.

7.5 Financial Implications

If the recommendation is adopted by Council, will it result in:

If the answer is ‘no’ to both questions please select the dropdown option 1 and complete appropriately.

If the answer is ‘yes’ to either question please select “Budget Implications” in the building block below and liaise with your Management Accountant in order to complete the Financial Impact table.

There are no material unbudgeted financial implications and this fits within the allocated budget.

8. Next Steps

Next Steps: What next? What resources are needed? Further analysis? Timeframes ahead. Any consultation planned. Remind Council of the process ahead. Next update to Council?

Conclusion: Short concluding remarks. Referring back to recommendations. No new content.

If Committee approve the recommendations, staff will forward PC13 to the Minister of Conservation for approval. Once approved staff will publicly release PC13 on a date approved by the Chief Executive.

Attachments

Attachment 1 - 2019-11-21 Final Consent Order on Plan Change 13 ⇩

Attachment 2 - 2019-12-05 Final Consent Order on Plan Change 13 ⇩

Attachment 3 - 2020-02-25 Final Consent Order on Plan Change 13 ⇩

Attachment 4 - 2020-05-28 Final Consent Order on Plan Change 13 ⇩

Attachment 5 - 2020-06-10 Final Consent Order on Plan Change 13 ⇩

Attachment 6 - 2020-06-29 Final Consent Order on Plan Change 13 ⇩

Attachment 7 - 2020-07-07 Final Consent Order on Plan Change 13 ⇩

Attachment 8 - 2020-07-10 Final Consent Order on Plan Change 13 ⇩

Attachment 9 - Proposed Plan Change 13 Version 10 - November 2020 ⇩

Attachment 10 Consequential changes to Regional Natural Resources Plan resulting from Proposed Plan Change 13 - Version 10 ⇩



Report To:	Strategy and Policy Committee
Meeting Date:	3 November 2020
Report Writer:	Santiago Bermeo, Senior Planner and Sandra Barns, Economist
Report Authoriser:	Namouta Poutasi, General Manager, Strategy & Science Stephen Lamb, Environmental Strategy Manager
Purpose:	To provide an update on the development of a proposed scheme to encourage household energy efficiency through impact investment and seek the Committee’s feedback.

Impact investment scheme for energy efficiency: an update

Executive Summary

One of Regional Council’s “levers” to reduce regional greenhouse gas emissions is encouraging households to be more energy efficient through impact investment, i.e. investments aimed at generating environmental and social benefits.

Councillors have previously expressed support for a proposed scheme to encourage ratepayers to adopt energy efficiency initiatives including photovoltaic solar energy generation, insulation and clean heating technology. The proposed scheme would effectively build on and extend the Council’s successful Rotorua Airshed Hot Swap Programme, which is due to end in 2021. However, some Councillors previously queried the likely cost of such a scheme for Council.

This report provides an update on the development of a proposed scheme and addresses previous questions about its likely cost.

Recommendations

That the Strategy and Policy Committee:

1 Receives the report, Impact investment scheme for energy efficiency: an update.

2 Notes the proposed scheme will continue to be considered as part of the development of the Long Term Plan 2021-31, specifically in relation to the scale of investment.

3 Notes that the proposed scheme can be designed in way to make it more likely to be cost neutral or result in financial returns for Council in the long-term, however this may come at the expense of uptake (and associated social and environmental benefits).

4 Provides feedback to staff on the developing design of the scheme as set out in this report, particularly in relation to the importance to be placed on cost-neutrality/financial return relative to social and environmental impact.

1. Introduction

On 11 August 2020, the Strategy and Policy Committee received a report on a range of possible initiatives to increase energy efficiency and in turn reduce greenhouse gas emissions associated with energy use in the Bay of Plenty. Specifically, a detailed proposal to use loans, repayable through targeted rates, to encourage households’ uptake of energy efficiency initiatives was presented. Initiatives included photovoltaic solar electricity generation, clean home heating, insulation and solar water heating. Aside from reducing emissions, the proposed initiatives could improve social outcomes by creating jobs, making homes warmer, drier and healthier, and potentially creating financial savings for households through lower power bills. The Committee was generally supportive of the proposal, although some Councillors raised questions about the cost of such a scheme to the Council.

During the 6 October 2020 Long Term Plan (LTP) workshop, Councillors confirmed their interest in establishing an energy efficiency scheme during years 1-3 of the LTP (i.e. 2021/22-2023/24). Councillors also expressed a preference for this scheme to be initially funded from reserves as opposed to from new rates.

Given the tight schedule and large agenda of LTP workshops, this report presents an update on progress on development of a potential scheme, providing an opportunity for Councillors to provide early feedback ahead of the next LTP workshop in November. The report also addresses earlier questions about the scheme’s likely cost.

Policy development related to the proposed scheme has three broad components which need to be addressed:

a) high level principles and policy behind the proposed scheme (this paper and ongoing LTP process);

b) scale of investment in the proposed scheme (to be confirmed in the LTP process but discussed in this paper); and

c) detailed operational policy to support implementation (to be developed in the future by the Strategy and Policy Committee).

1.1 Alignment with Strategic Framework

A Healthy Environment	We develop and implement regional plans and policy to protect our natural environment.
A Vibrant Region	We invest appropriately in infrastructure to support sustainable development.

This proposal aligns with the new climate change strategic priority by supporting the transition to a low-emissions economy. In relation to the Rotorua airshed specifically, and the wider region generally, the proposed scheme is also expected to contribute to improved air quality and compliance with the NES for Air Quality by encouraging the replacement of high-emissions heating. It is also likely to support the new strategic priority to assist the region to recover from the impacts of COVID-19, by creating new jobs and economic activity.

1.1.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

Medium - Positive

¨ Cultural

Medium - Positive

¨ Social

Medium - Positive

¨ Economic

Low - Positive

The proposed scheme would help the region to reduce its greenhouse gas emissions associated with energy use, consistent with national obligations under the Zero Carbon Act. Improved insulation and clean heating enabled by the proposed scheme would also enhance community health outcomes through warmer, drier and healthier homes and cultural outcomes associated with manaakitanga, again through homes that are more hospitable for manuhiri/guests. The proposed scheme may also result in financial savings for householders through lower power bills.

2. The proposed scheme

2.1 How would it work?

It is proposed that the scheme would work as follows. On a voluntary basis, ratepayers would apply to obtain loans from Regional Council to install one or more of the following energy efficiency facilities on their properties:

· photovoltaic solar energy generation (maximum $12,000 loan);

· clean heating technology (e.g. heat pumps, infra-red heaters) (maximum $4,500 loan);

· insulation (maximum $4,000 loan).

Loans would be repayable through targeted rates on the property at a preferential (relative to a bank’s commercial personal loan rate)^{^[1]} fixed interest rate over 10 years. If the property is sold during the term of the loan, the loan would need to be repaid in full at that point.

Prior to approving loans, the Regional Council will undertake some due diligence on:

· the applicant’s credit and rate payment history; and

· suitability of the energy efficiency facility to the applicant’s circumstances.

Like the current Hot Swap Programme, in relation to clean heating and insulation, the scheme would complement the existing Energy Efficiency and Conservation Authority (EECA) Kiwi Homes Heating Grant by financing the portion that is not funded by the grant.

For clean heating facilities, it is likely that applicants would be required to remove inefficient/high emitting heating (e.g. old wood burners, gas heaters) as part of the process.

2.2 How much would it cost? How would it be funded?

In short, the scheme could cost as much as the Council is prepared to invest in it, subject to its expectations about financial return on the investment. Direction from the 6 October LTP workshop was that the scheme should be funded from reserves, so no additional general rates would be required to establish the scheme.

It is proposed that within the LTP process, Council determines a maximum initial amount of reserve funding to invest in the proposed scheme (e.g. $4m over three years), acknowledging there will be opportunities to review this through Annual Plan processes and/or the next LTP. An LTP decision will be needed on a maximum investment level.

Lessons learnt from the Hot Swap Programme indicate that it will be sensible to start the scheme small and build it up to the levels sought by Council. This would allow the scheme to be established, administration arranged, branding and communications planned and delivered, and processes worked through.

It is hard to predict the likely uptake of the scheme, which ultimately will be a key determinant of cost. The 11 August 2020 report made likely uptake estimations for a well-established scheme, based on Hawke’s Bay Regional Council’s experience with a similar scheme. It is anticipated that uptake will increase gradually. Based on uptake assumptions, the table below estimates the likely cost of a scheme over three years, as an example.

Initiative	Max loan	Estimated uptake			Total loans (,000)			Administration costs^{^[2]} (,000)
Initiative	Max loan	Year 1	Year 2	Year 3	Year 1	Year 2	Year 3	Year 1	Year 2	Year 3
Solar energy	$12,000	25	35	50	$300	$420	$600	$70	$84	$108
Insulation	$4,000	50	60	75	$200	$240	$300
Clean heating	$4,500	75	100	150	$338	$450	$675
TOTALS		150	195	275	$838	$1.1m	$1.6m	$262
		620			$3.5m			$262
					$3.8m

In the example above, loan and administration costs add up to $3.8m over three years. Council would only need to allocate funds from reserves upfront for fixed overall administration costs (i.e., $25,000 per year), but could draw on reserves for loans and variable administration costs as required subject to uptake.

On top of loan and administration costs, there arguably could also be opportunity costs from alternative forgone investments, if the reserves used for the scheme were invested elsewhere. For instance, $3.8m invested elsewhere at an interest rate of 3% would result in a financial return of $114,000 in year 1. However, there will also be financial returns for Council from the interest charged on loans. For example, assuming a fixed 4% per annum interest rate for all loans over 10 years, the example scheme set out in the table above would eventually generate a financial return for Council of $881,213 – if this financial position is adopted.

The scheme could effectively be treated as a revolving fund, with new loans being made available every year after the initial three year period, as repayments are made. Council could therefore determine a maximum initial amount it would like to make available for the scheme. As an example, from the table above, from year 4 onwards the loan repayments of approximately $460,000 per annum could be reinvested.

The financial position that underpins the proposed scheme will need to be determined by Council within the LTP process.

The scheme can be designed to maximise the likelihood of it either generating financial returns or being cost-neutral for Council in the long term. This may include, as described above, charging participants a preferential interest rate that is marginally higher (e.g. 4%) than the interest rate from forgone alternative investments (e.g. 3%). However, since the proposed scheme is aimed at generating a range of environmental and social benefits (i.e. impact investment), to encourage uptake it would be desirable for interest charged to be the same as or lower than interest from alternative investments, even if this results in lower financial returns. Feedback from the Committee is sought on the importance it would like to place on cost-neutrality or financial returns vs. on the “impact investment” scheme having environmental and social benefits.

It is not possible to guarantee that the scheme would be cost-neutral or generate financial returns because there are a number of factors outside of Council’s control that would influence this. This includes for instance market interest rates for forgone investments.

As in the Hot Swap Programme, it would be possible to consider segmentation by initiative and applicant. For example, some initiatives or applicants (e.g. low income) could be subject to partial grants or interest free loans. This would increase the social and environmental impact of the scheme, but may increase overall scheme costs, compromising cost-neutrality/financial return.

Feedback from the Committee is sought on the importance it would like to place on the scheme being cost-neutral or generating financial returns vs. on it helping low income households to take up energy efficiency initiatives. It is worth noting that uptake by low income households would be more closely related to the health outcomes described above.

Like the Hot Swap Programme, loan repayments through targeted rates could also be subject to rate remissions for low income households. It is estimated that in the Hot Swap Programme, about 5% (TBC) of loans were ultimately remitted. If this option was to be provided for the proposed scheme, remission costs would either have to be provided for within the initial allocation for administration costs, covered from interest revenue generated or from general rates. Remission of targeted rates would be a very limited way to encourage uptake by low income households.

2.3 What about investing in other initiatives?

Although the proposed scheme could be used to fund a multitude of other initiatives, staff propose that the scheme is initially focused on the three initiatives set out above. These have been investigated in detail (refer to 11 August 2020 report) and found to be most promising.

During LTP consultation, there may be an opportunity to seek feedback from the community on other types of initiatives it would find helpful for the scheme to support. The ability to link initiatives back to specific properties and the rating system makes the proposed scheme relatively simple to administer.

Starting with a narrower set of initiatives, including two which are already delivered through the Hot Swap Programme, would enable the scheme to expand in the future if successful and to learn from initial experience. A smaller initial scope would enable staff to learn by doing, and build on experience and lessons from other councils (e.g. Hawke’s Bay) that have already implemented similar schemes.

3. Considerations

3.1 Risks and Mitigations

The model for the proposed scheme (i.e. loans repayable through targeted rates) has been successful in the Rotorua Hot Swap Programme, and in other regions with similar schemes. Lessons from these experiences will be applied to reduce risks, e.g. through due diligence and feasibility assessments prior to loan approval.

By Council using existing reserves, and drawing on them progressively for loans and variable administration costs subject to uptake, there is no need for Council to make a significant financial commitment upfront. Furthermore, the proposed approach to start small and progressively review the scheme will enable consideration of other potential initiatives and changes to the scheme based on initial experience.

As described in section 2.2, there would be financial risks associated with exogenous factors outside of Council’s control. The approach to start small, a maximum fixed amount for loans, and careful scheme design would all mitigate such risks.

There is a risk of non-payment or defaulting on loans. However, by repayments being made through targeted rates attached to property, there is an effective pathway to debt recovery, if needed.

Consequently, staff consider that there are no significant risks associated with this initiative.

3.2 Climate Change

Mitigation			Adaptation
Reduce GHG emissions	Produce GHG emissions	Sequester carbon	Anticipate climate change impacts	Respond to climate change impacts
☒	☐	☐	☐	☒

The main aim of this proposal is to reduce greenhouse gas emissions associated with energy use. By increasing self-sufficiency in local generating capacity, the option to increase solar power generation can also be considered a form of adaptation (e.g. to climate-related hazards that may affect the national grid).

3.3 Implications for Māori

Crtl + click for Guideline material.

Māori generally have poorer health outcomes related to poor household heating and insulation. In relation to efficient heating and insulation, the proposed scheme would make it easier for Māori householders to address these issues. The proposed scheme would also support manaakitanga by helping to create warm, dry and healthier homes that would be more hospitable to manuhiri/guests.

However, as described in section 2.2., this would be subject to the importance placed on the scheme’s cost-neutrality or expected financial return relative to the willingness to assist low income households to adopt these initiatives. Subject to feedback from the Committee on this aspect, staff could explore the option of targeting the scheme to more deprived areas of the region, such as Papakāinga for example, or providing some partial grants and interest-free loans.

3.4 Community Engagement

Consider identifying in the report:

CONSULT

Whakauiuia

To obtain input or feedback from affected communities about our analysis, alternatives, and /or proposed decisions.

This paper has not been informed by community consultation to date. However, subject to your feedback, this will be considered as part of developing the LTP so community consultation would occur as part of that process.

3.5 Financial Implications

At this stage, there are no material unbudgeted financial implications and the current work to develop the proposed scheme fits within the allocated budget.

Obviously the proposed scheme, if and when it is adopted, would have financial implications, as described in section 2.2. These would be considered in more detail as the proposed scheme is further developed, as part of developing the LTP 2021-31.

4. Next Steps

Subject to any feedback from the Committee, staff will continue developing the proposed scheme for inclusion in the LTP 2021-31. As noted above, staff plan to include questions on the proposed scheme in public consultation on the LTP 2021-31. The next step in the process is the 10 November LTP workshop. However, as noted above, it is unlikely Councillors will have much time to consider the details of the proposed scheme then due to the heavy agenda and tight timeframe.

Staff will also start exploring opportunities to partner with other organisations who may be interested in contributing to the proposed scheme. These may include banks, service providers, local energy consumer trusts and District Health Boards.



Report To:	Strategy and Policy Committee
Meeting Date:	3 November 2020
Report Writer:	Stephen Lamb, Environmental Strategy Manager
Report Authoriser:	Namouta Poutasi, General Manager, Strategy & Science
Purpose:	To provide an update on the activities of Bay of Connections and Toi Kai Rawa.

Bay of Connections and Toi Kai Rawa Update

Executive Summary

Council provides funding support towards regional and sub-regional economic development. This includes support for Economic Development agencies (EDAs) by way of funding to deliver on service level agreements. Toi Kai Rawa is a Regional Māori economic development agency.

Council also delivers regional economic development through Bay of Connections. This function was deliberately set up as an ”arm’s length” operation to enable access to external expertise and to facilitate a flexible approach to working in the economic development landscape.

This report provides an update on the activities of Bay of Connections and Toi Kai Rawa.

Recommendations

That the Strategy and Policy Committee:

1. Receives the report, Bay of Connections and Toi Kai Rawa Update.

1. Introduction

The Regional Council’s economic development function is delivered through Bay of Connections and through “third party” arrangements with Economic development agencies. This report provides an update on the activities within Bay of Connections and Toi Kai Rawa (delivering elements of Māori regional economic development).

1.1 Alignment with Strategic Framework

A Vibrant Region

We work with and connect the right people to create a prosperous region and economy.

1.1.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

þ Economic

The core purpose behind Bay of Connections and Toi Kai Rawa is to advance the economic well-being of the Bay of Plenty. Toi Kai Rawa is specifically tasked with enabling Māori economic development.

2. Bay of Connections

2.1 Data project: Regional Data Group

Bay of Connections hosted a successful workshop with the Regional Data Group on Friday 2 October to explore a collaborative framework for sharing data and insights, and building capability.

The workshop was facilitated by Council and attended by representatives from Enterprise Great Lake Taupō, Rotorua Lakes Council, Destination Rotorua, Toi Kai Rawa, Tauranga City Council, SociaLink, Tourism BOP, Toi Ohomai Institute of Technology, BOPRC, and Bay of Connections. Members from local and central government agencies that were unable to attend communicated their desire for ongoing collaboration through the Regional Data Group.

Discussion points included the development of an ecosystem that makes it easier for group members to discover and share data, and how we can use this to align actions, utilising the skillsets of group members, developing subgroups to work on specific topics and bringing in an expert to advise on data sovereignty. The group also recognised their capability to advocate for access to local and sub-region level data from existing central government datasets.

Outcomes of the workshop were an agreement to formalise the group by drafting Terms of Reference and creating a strawman to identify the common economic indicators group members require access to, at a region and sub-region level.

The Group plans to meet quarterly to progress this work, and looks forward to capitalising on the efficiencies gained by a collective approach to improve community outcomes in the wake of COVID-19. The next Regional Data Group meeting is on Tuesday 17 November, 2020.

The Regional Data Group is also linked to the work of the Interim Regional Skills Leadership Group as it is recognised that similar data needs to be accessed to support the kaupapa of the agencies and organisations involved.

2.2 Tactical projects

A goal of Bay of Connections (BOC) is to manage a balanced portfolio of short, medium and long-term projects that meet our current capacity.

The BOC Leadership Group has developed a matrix to help prioritise projects, aligned to our key focus areas: Māori economic development, infrastructure, workforce and supporting the transition toward a low carbon, circular economy.

Bay of Connections is currently progressing work on three projects: Sustainability and Waste Minimisation, Facilitating Capital Investment and supporting the ongoing development of Cycle Trails in the region.

Sustainability and Waste Minimisation: Developing a regionally-coordinated approach to waste management will help progress the region’s transition towards a low carbon economy, as well as achieving wider economic and environmental objectives.

Facilitating Capital Investment: Investigating a ‘clearing house’ or ‘exchange’ model that would help to partner up capital and investment opportunities. There are many potential projects in the region that would improve our core infrastructure and lift productivity. By unlocking investment, we can help initiatives to get off the ground.

Supporting the ongoing development of Cycle Trails in the region: Investigating the role BOC could play in facilitating completion of the cycle network across the Bay of Plenty. The development of cycle way corridors and infrastructure across the region will create jobs, boost domestic tourism, and unlock business opportunities for the rural communities that sit on the trail.

These projects are all at an early stage and the Programme Manager is working with members of the Leadership Group on each project to refine the scope and plan the initial engagement with stakeholders that is essential to progress these focused initiatives.

2.3 Bay of Connections Independent Chairperson

Bay of Connections is currently recruiting for a new Independent Chairperson to replace Andy Blair, who is standing down at the end of October 2020. The BOC Leadership Group Terms of Reference state that “Leadership Group members will be appointed by the Bay of Plenty Regional Council (BOPRC) on the recommendation of an appointment panel.” As such, the process being followed is identical to that used to appoint Leadership Group members in mid-2019:

1. Seek Expressions of Interest (EOI), received by the GM Strategy & Science (Namouta Poutasi).

2. Convene an appointment panel to assess EOIs against the skills/attributes outlined in the ‘Appointee profile’ of the BOC Leadership Group Terms of Reference.

3. Interview shortlisted person(s) to confirm their suitability.

4. Recommendation made to Council for consideration and appointment.

The appointment panel consists of: Fiona McTavish, Andy Blair, Dean Howie and two representatives from the sub-regional EDAs: Kylie Hawker-Green (Enterprise Great Lake Taupō) and Karl Gradon (Toi EDA).

The call for Expressions of Interest was included in the August BOC newsletter and shared via the BOC website and social media channels, the four sub-regional EDAs also circulated the call for EOIs through their respective communication channels.

Two candidates were invited to participate in a Zoom interview with the appointment panel, as of 19 October only one interview had taken place. Due to scheduling challenges for the interviews, it is unlikely the appointment panel will be in a positon to recommend a preferred candidate to Strategy & Policy Committee in time for the 3 November meeting, the panel’s recommendation will instead be deferred until the 17 December Council meeting.

The BOC Leadership Group will identify an acting Chairperson to fulfil the role in the intervening period at their meeting on 30 October.

2.4 Regional Aquaculture Organisation

The Bay of Plenty Regional Aquaculture Organisation (RAO) continues to meet bimonthly, with the most recent meeting taking place on 20 October at BOPRC offices in Tauranga.

In recent months, the RAO have been focused on the emerging opportunities in the aquaculture industry and how to capitalise on these. Aligned to this, RAO members have been exploring ways the aquaculture industry can move towards a circular economy. With increasing interest in the Ōpōtiki Harbour Development, treaty settlements and opportunities for tangata whenua, these emerging opportunities and an embrace of circular economy principles have potential to create significant value in the Bay of Plenty, while addressing environmental challenges.

Bay of Connections has supported a regional Aquaculture Strategy and the RAO since 2009, in that time the RAO and its members delivered many achievements, including securing funding for the Ōpōtiki Harbour Development, the expansion of aquaculture opportunities in the Eastern BOP, the delivery of Marine Science courses at Toi Ohomai and the University of Waikato, and the establishment of Trout NZ. With Bay of Connections moving away from a sector-based approach as a result of its recent strategy refresh and reset, BOC’s current support contract with RAO will end in June 2021. BOC is working with the RAO on establishing a new and sustainable operating model to ensure its ongoing success.

3. Connection between Bay of Connections and Toi Kai Rawa

The Bay of Connections and Toi Kai Rawa (TKR) operational teams held a meet and greet session on Friday 16 October to introduce new staff members, provide some historical context to BOC and TKR, outline respective strategies and work plans, and discuss areas for collaboration. Bay of Connections has agreed to support Toi Kai Rawa with data requirements as part of the data project, and formalise future collaboration once respective work streams are further evolved.

4. Toi Kai Rawa

A full progress report across Toi Kai Rawa’s activities is attached as Appendix 1. The following extract highlights activities directly related to Council’s investment.

Key highlights/milestones for period September - October 2020:

· Toi Kai Rawa has secured funding from several sources including BOPRC towards core and project funding.

· BOPRC contract was signed off on 3 September 2020 and actions are now on track and making good progress. Details of the contract are summarised in the table below.

· TKR have engaged an independent Māori consultant to support part this contract particularly the key scoping projects for Social Procurement and Whenua Māori.

· From a relationship development/networking perspective - several meetings have taken place with EDAs, Iwi, industry and other organisations with a lot more meetings to go.

· TKR have filled 3 of the 4 positions advertised with the final role expected to be appointed by the end of October 2020.

BOPRC Key Contract Deliverables Update:

Purpose	Comments
Scoping report for Whenua Māori in the wider BOP. Develop a methodology for investigating whenua Māori issues (“Methodology”). Use the methodology to develop a regional whenua Māori improvement plan that outlines issues and opportunities for Māori (“Improvement Plan”); and provide an update to the appropriate Council meeting in the first quarter of 2021 following completion of the framework and on completion of its first implementation plan.	Engaged Consultant to support this part of the work. Report and improvement plan due by the end of October
Social Procurement Scoping Plan. TKR intends to use the Scoping Plan to develop and deliver initiatives to enable Maori businesses and groups to be more competitive in responses to government sector tender processes e.g. advice and support, training etc.	Engaged Consultant to action these. Report and improvement plan due by the end of October
Development of a Regional Relationship plan that identifies the entities that TKR will meet and share workplans with to identify collaboration opportunities.	Plan is being developed now. First milestone is due by the end of November.

5. Considerations

5.1 Risks and Mitigations

Risks associated with funding arrangements are managed through contracts/service level agreements and by maintain in communication and relationships between staff.

5.2 Climate Change

Climate change is increasingly becoming a greater part of the economic development landscape – such as through consideration of low carbon production and logistics. Internationally and nationally, considerable thinking is being devoted to the question of what constitutes a low carbon/low emissions economy. As this thinking coalesces into practical market responses Council will need to consider the implications for its functions.

5.3 Implications for Māori

As noted above Toi Kai Rawa is specifically tasked with enabling Māori economic development. There is a strong understanding that there is significant potential for Iwi/Hapū/Trust/Māori landowner developments and investments to advance the Bay of Plenty’s economic well-being.

5.4 Financial Implications

There are no financial implications associated with this update report.

Attachments

Attachment 1 - Toi Kai Rawa Strategy & Policy Committee update October 2020 ⇩

[1] Some banks (e.g. Kiwibank, Westpac, ANZ) provide preferential loans for some forms of energy efficiency initiatives for their home loan customers. However, the terms and eligibility criteria of these loans may not always be sufficient to encourage uptake.

[2] Assuming a $250 pre-install assessment per household, a $200 post-install assessment/audit for every four households and $25,000 overall fixed administration cost per year.

Chairperson	Cr Paula Thompson
Deputy Chairperson	Cr Stuart Crosby
Members	All Councillors
Quorum	Seven members, consisting of half the number of members
Meeting frequency	Six weekly rotation between committee meetings and strategic sessions