Strategy and Policy Committee Agenda

NOTICE IS GIVEN that the next meeting of the Strategy and Policy Committee will be held in Council Chambers, Ground Floor, Regional House, 1 Elizabeth Street, Tauranga, and via Zoom on:

Thursday 18 August 2022 COMMENCING AT 9.30 am

This meeting will be livestreamed and recorded.

The Public section of this meeting will be livestreamed and recorded and uploaded to Bay of Plenty Regional Council’s website.  Further details on this can be found after the Terms of Reference within the Agenda. Bay of Plenty Regional Council - YouTube

 

Fiona McTavish

Chief Executive, Bay of Plenty Regional Council Toi Moana

10 August 2022

 


 

Strategy and Policy Committee

Membership

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

Purpose

·             Inform the strategic direction for the Council and implement through approved planning and policy frameworks.

·             Identify regional issues resulting from emerging trends, providing thought leadership on matters of regional significance, analysing implications and developing a strategic response.

Role

·             Develop, implement and review best practice strategy, policy and planning framework for decision making which enables connection across committees of Council.

·             Consider emerging environmental issues and provide advice on the implications for effective resource management within the region.

·             Inform Council’s strategic direction, including prioritisation and policy responses.

·             Enhance awareness and understanding of emerging issues and trends relating to meeting Councils strategic direction.

·             Develop Council’s position on regionally significant issues and provide guidance on sub-regional and regional strategy matters such as spatial planning and SmartGrowth.

·             Approve submissions on matters relating to the committee’s areas of responsibility that are not delegated to staff.

·             The provision of governance oversight into the development and review of policies, plans, and strategies.

·             Approve statutory and non-statutory plans, strategy and policy other than those required to be adopted and consulted on under the Local Government Act 2002 in association with the long-term plan or developed for the purpose of the local governance statement.

·             Develop, review and approve Council’s position on regional economic development.

·             Consider any issues delegated by Council that have a regional, environmental, social or economic focus.

·             Develop and review bylaws.

·             Delegate to hearings commissioners under section 34A of the Resource Management Act 1991 to exercise the powers, functions duties in relation to any authorities that have been delegated by Council to the committee.

Power to Act

To make all decisions necessary to fulfil the role and scope of the committee subject to the limitations imposed.

The Strategy and Policy Committee is not delegated authority to:

·             Approve the Regional Policy Statement and bylaws;

·             Review and adopt the Long Term Plan and Annual Plan;

·             Develop and review funding, financial, Risk and Assurance Policy and frameworks;

·             Approve Council submissions on Maori related matters;

·             Develop, approve or review non statutory policy for co-governance partnerships.

Power to Recommend

To Council and/or any standing committee as it deems appropriate.


 

Recording of Meetings

Please note the Public section of this meeting is being recorded and streamed live on Bay of Plenty Regional Council’s website in accordance with Council's Live Streaming and Recording of Meetings Protocols which can be viewed on Council’s website. The recording will be archived and made publicly available on Council's website within two working days after the meeting on www.boprc.govt.nz for a period of three years (or as otherwise agreed to by Council).

All care is taken to maintain your privacy; however, as a visitor in the public gallery or as a participant at the meeting, your presence may be recorded. By remaining in the public gallery, it is understood your consent is given if your image is inadvertently broadcast.

Opinions expressed or statements made by individual persons during a meeting are not the opinions or statements of the Bay of Plenty Regional Council. Council accepts no liability for any opinions or statements made during a meeting.

 


Bay of Plenty Regional Council - Toi Moana

Governance Commitment

mō te taiao, mō ngā tāngata - our environment and our people go hand-in-hand.

 

 

We provide excellent governance when, individually and collectively, we:

·       Trust and respect each other

·       Stay strategic and focused

·       Are courageous and challenge the status quo in all we do

·       Listen to our stakeholders and value their input

·       Listen to each other to understand various perspectives

·       Act as a team who can challenge, change and add value

·       Continually evaluate what we do

 

 

TREAD LIGHTLY, THINK DEEPLY,
ACT WISELY, SPEAK KINDLY.


Strategy and Policy Committee                                                                              18 August 2022

Recommendations in reports are not to be construed as Council policy until adopted by Council.

Agenda

1.       Apologies

2.       Public Forum

3.       Items not on the Agenda

4.       Order of Business

5.       Declaration of Conflicts of Interest

6.       Public Excluded Business to be Transferred into the Open

7.       Minutes

Minutes to be Confirmed

7.1       Strategy and Policy Committee Minutes - 3 May 2022                                                                                              2

8.       Reports

Strategy

8.1       Operating Environment                                                    2

Attachment 1 - Summary of key upcoming legislative changes and potential impacts                                                          2

8.2       Whakatane Kawerau Spatial Plan Project                     2

Regulatory Policy

8.3       National Policy Statement for Indigenous Biodiversity: Implications for Council                            2

Attachment 1 - NPSIB Roles and responsibilities for local authorities                                                                           2

8.4       Toi Moana Essential Freshwater Policy Programme Update: Communications and Engagement 2023        2

Attachment 1 - Essential Freshwater Policy Programme - Current projects and engagement with Tangata Whenua        2

Attachment 2 - Draft Communications and Engagement Plan for the Essential Freshwater Policy Programme 2023              2

Attachment 3 - Excerpt from Communications and Engagement Plan 2020 of overarching stakeholder approach                     2

Non-Regulatory Policy

8.5       Rotorua Air Quality Action Plan - Review and future policy                                                                                   2

Attachment 1 - Rotorua Air Quality Action Plan                     2

Attachment 2 - Draft Rotorua Air Quality Action Plan Review Document                                                                           2

Other

8.6       Overview of the Emissions Reduction Plan - Implications for the Bay of Plenty Regional Council   2

Attachment 1 - Emissions Reduction Plan - impact on BOP communities and households                                                2

8.7       Overview of the Emissions Reduction Plan - Implications on the regional economy                          2

9.       Public Excluded Section

Resolution to exclude the public

Excludes the public from the following parts of the proceedings of this meeting as set out below:

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

Item No.

Subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Grounds under Section 48(1) for the passing of this resolution

When the item can be released into the public

9.1

Public Excluded Strategy and Policy Committee Minutes - 3 May 2022

As noted in the relevant Minutes.

As noted in the relevant Minutes.

To remain in public excluded.

 

Minutes to be Confirmed

9.1       Public Excluded Strategy and Policy Committee Minutes - 3 May 2022

10.     Public Excluded Business to be Transferred into the Open

11.     Readmit the Public

12.     Consideration of Items not on the Agenda


Strategy and Policy Committee Minutes

3 May 2022

 

Strategy and Policy Committee

Open Minutes

Commencing:               Tuesday 3 May 2022, 9.30 am

Venue:                           Council Chambers, Ground Floor, Regional House, 1 Elizabeth Street, Tauranga, and via Zoom (Audio Visual Meeting)

Chairperson:                 Cr Paula Thompson

Deputy Chairperson:   Cr Stuart Crosby

Members:                      Chairman Doug Leeder

Cr Jane Nees

Cr Matemoana McDonald

Cr Toi Kai Rākau Iti

Cr Te Taru White

Cr Kevin Winters

Cr Lyall Thurston

Cr David Love

Cr Bill Clark

Cr Stacey Rose

Cr Andrew von Dadelszen

In Attendance:             Staff: Fiona McTavish – Chief Executive; Namouta Poutasi - General Manager Strategy and Science; Chris Ingle – General Manager Integrated Catchments; Kataraina O’Brien - Director Strategic Engagement; Julie Bevan - Policy and Planning Manager; Nicola Green - Principal Advisor Policy and Planning; Reuben Fraser – Consents Manager; Lorraine Cheyne – Team Leader, Transport and Urban Strategy; Nassah Rolleston-Steed – Principal Advisor, Policy & Planning; Ruth Feist – Senior Urban Planner; Jenny Teeuwen – Committee Advisor; Claudia Cameron – Committee Advisor

 

 

Please note that the open session of the meeting was livestreamed and the recording is available on the Council YouTube channel via this link Strategy and Policy Committee Meeting Video Recording - 3 May 2022 - YouTube.

 

Apologies:                    Cr Norm Bruning (for absence), Cr Stacey Rose (for early departure from the meeting)

 

 

 

 

 

 

 

1.     Apologies

Resolved

That the Strategy and Policy Committee:

1       Accepts the apologies from Cr Norm Bruning for absence, and from Cr Stacey Rose for early departure from the meeting.

Thompson/Thurston

CARRIED

 

2.     Order of Business

Due to staff availability, the order of business was amended as follows:

·      Item 5.3 - Essential Freshwater Policy Programme Update, to be taken first.

·      Item 5.2 – Draft RPS Change 6 (NPS-UD), no change.

·      Item 5.1 – Operating Environment, to be taken third.

 

3.     Declaration of Conflicts of Interest

There were no conflicts of interest declared.

 

4.     Minutes

Minutes to be Confirmed

4.1

Strategy and Policy Committee Minutes - 15 February 2022

 

Resolved

That the Strategy and Policy Committee:

         Confirms the Strategy and Policy Committee Minutes - 15 February 2022 as a true and correct record.

Thompson/Nees

CARRIED

 

5.     Reports

Regulatory Policy

5.1

Essential Freshwater Policy Programme Update

Presentation:   Essential Freshwater Policy Programme Update: Objective ID A4089786   

Presented by:  Nicola Green - Principal Advisor Policy and Planning

Reuben Fraser – Consents Manager

 

 

9.35 am – Cr McDonald entered the meeting.

9.43 am – Chairman Leader entered the meeting.

Key Points

·       The online engagement tool Participate Bay of Plenty for the long term vision setting for freshwater went live on Monday and was now open to the public to provide feedback.

·       There continued to be challenges with continued engagement and delays with national regulations and staff were working hard to keep to timeframes for the programme.

·       2026 consents renewals:

-     There were a range of consents issued prior to the Resource Management Act (RMA) coming into force in 1991 and these were set to expire on 1 October 2026.

-     Slightly over half (531) were water take consents.  The large majority of remaining consents were for discharge to water (108).

-     Staff were already looking to the next Long Term Plan (LTP) and how the consents renewal process would be resourced. 

-     There were real opportunities for Bay of Plenty Regional Council (Regional Council) to make the consents renewal process as simple as possible.

·       Amendments to the intensive winter grazing regulations were released in April 2022 and would come into effect in November 2022.

In Response to Questions

·       Following the independent review of Overseer, a risk based tool was being developed that could be used instead of Overseer.  The review’s recommended improvements to Overseer were also being made and a new updated version was expected to be available later in the year.  The updated version would include a statement on how it should be used for farm planning catchment based modelling and regulation.  There was no alternative being developed that would have the same measurability.

·       There had been some challenges with calibrating the Tauranga Moana groundwater MODFLOW model.  A review of most recent improvements still raised fundamental concerns that needed to be addressed.  Staff were looking in to options to progress with urgency in order to inform allocation decisions.

·       Through Te Hononga (Regional Māori Engagement Plan) framework, the responsibility or duty to build tangata whenua capacity and involvement for freshwater management would go beyond the notification date of the Regional Plan in 2024.  Staff would continue to do all they could to engage and be responsive and invite participation.

·       There was a requirement to have applications for consent renewals lodged six months prior to the consent expiry.  An influx of applications was expected late 2025 – early 2026.

·       A new rules framework for the Regional Natural Resources Plan (RNRP) would come into effect when the plan was notified in 2024.  The plan would have legal effect as soon as it was notified.

·       There would be the ability to allocate water to an activity or use e.g. allocate water to develop underdeveloped multi-owned Māori land.  Work was currently underway to explore options for both nutrient and water quantity and assessing those for cultural allocation.

·       Every time a water consent was renewed or a new one issued, the consent would only be issued for what was considered an efficient use of that water.   The usual outcome was that the new consent would allocate less water than the original consent if over allocation had been identified.

·       The current focus was to start consent renewal discussions with Territorial Authorities (TA) early, particularly around wastewater discharges.  In relation to future transition of infrastructure to water services providers, TAs had generally advised that they would be carrying on future infrastructure and consents planning as business as usual for now.  It was unclear who would hold the consents long-term but it was assumed that the proposed new water entities would take over consents.

·       In relation to Intensive Winter Grazing regulations, critical source areas would pick up those water flows that very clearly carried contaminants that could enter water bodies.

 

 

Resolved

That the Strategy and Policy Committee:

1       Receives the report, Essential Freshwater Policy Programme Update.

Thompson/Nees

CARRIED

 

 

5.2

Draft Regional Policy Statement (RPS) Change 6 - National Policy Standards-Urban Development (NPS-UD)

Tabled Document 1:  Draft Section 32 Analysis - RPS Proposed Plan Change 6: Objective ID A4081444 

Tabled Document 2:  Proposed Plan Change 6 (NPS-UD) to the RPS - Version 1.14: Objective ID A4075322   

Presented by:  Nassah Rolleston-Steed – Principal Advisor, Policy & Planning

Ruth Feist – Senior Urban Planner

Lorraine Cheyne - Team Leader, Transport and Urban Strategy

Key Points:

·       It was acknowledged that the documentation, in particular the Section 32 Analysis report and the plan change text, still required minor proof-reading amendments.  Also, Policy UG 14B of the plan change document had been omitted and this would be rectified.

In Response to Questions

·       Any change to the process used would be communicated with all stakeholders including iwi/hapū that had been involved or contacted regarding the process.

·       The Section 32 Analysis document would be updated to reflect the decisions of today’s meeting.

·       Key risks for the Streamlined Planning Process (SPP) included Regional Council’s relationships with iwi/hapū, and the timing of notification.

·       Ministry for the Environment (MfE) staff had advised that they had no preference for either the SPP or the Schedule 1 options and accepted that whatever process was chosen should be fit for purpose for the local situation.

·       Consideration had been given to the cost for the whole of the process and on balance, the costs were comparable either way.

·       The RPS plan change using Schedule 1 could be notified in late August of this year whereas using the SPP option would take until early to mid-2023 before the RPS plan change could be notified.

Key Points - Members:

·       There was concern that if the plan change continued using SPP, the plan change would not be notified before the required date.

·       There was also concern regarding iwi/hapū being able to keep abreast of what was happening in the required timeframes.

·       If the Schedule 1 option was used, the plan change would be in a position to be notified by the required August 2022 date and the plan would have legal weight moving forward.

·       Support was indicated for changing to the Schedule 1 process.

 

 

Resolved

That the Strategy and Policy Committee:

1.       Receives the report, Draft RPS Change 6 (NPS-UD) .

2.       Rescinds the resolutions of the Strategy and Policy Committee meetings of 16 February 2021 and 27 October 2021 on the use of the Streamlined Planning Process for Change 6 (NPS-Urban Development) to the Bay of Plenty Regional Policy Statement.

3.       Agrees that Change 6 (NPS-Urban Development) to the Bay of Plenty Regional Policy Statement will use the Schedule 1 process under the Resource Management Act for the following reasons:

·       Ensures notification of RPS Change 6 to meet NPS-UD requirements

·       Acknowledges further information received from the Ministry for the Environment (MfE)

·       Reflects feedback received from tangata whenua

4.      Delegates to the Group Manager Strategy and Science to make minor corrections to Change 6 (NPS-Urban Development) and the Section 32 report in response to feedback from Committee members and any consequential changes if required.

5.      Directs staff to bring Proposed Change 6 (NPS-Urban Development) to the Bay of Plenty Regional Policy Statement and the Section 32 report to a Council meeting in June to adopt for public notification.

Thompson/Crosby

CARRIED

Cr Love abstained from voting.

 

 

 

10.48 am - the meeting adjourned.

 

10.48 am - Cr Rose withdrew from the meeting.

 

11.04 am – the meeting resumed.

 

 

 

Strategy

5.3

Operating Environment

Presented by:  Namouta Poutasi - General Manager Strategy and Science

Julie Bevan - Policy and Planning Manager

Key Points

·       Noted the recent announcements from central government regarding Three Waters and Climate Change Adaptation.

·       The new National Freight Studies had just come out.

·       The engagement feedback report for He Puapua was now also available.

·       Councillor Stuart Crosby, in his role as President of Local Government New Zealand (LGNZ), provided the following verbal update:

-     Encouraged Councillors to look at the recently released New Zealand Adaptation Strategy for climate resilience.  The Ministry for the Environment were seeking feedback with a closing date of 3 June 2022.

-     The Infrastructure Commission’s long term strategy had also recently been released.

-     The New Zealand Sea Level Rise report had been released yesterday.

-     The government had accepted 44 of the 47 Three Waters Working Group’s recommendations with three that needed to be worked on further.  The co-governance provisions remained and where they would sit in the structure had been clarified.  The first bill was expected in the house in a matter of weeks.

-     There was concern about how all these proposals would integrate and LGNZ had offered to work with the government to ensure they do integrate.

 

 

Resolved

That the Strategy and Policy Committee:

1       Receives the report, Operating Environment.

Thompson/Love

CARRIED

 

 

6.     Public Excluded Section

Resolved

Resolution to exclude the public

1       Excludes the public from the following parts of the proceedings of this meeting as set out below:

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

 

Item No.

Subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Grounds under Section 48(1) for the passing of this resolution

When the item can be released into the public

6.1

Public Excluded Strategy and Policy Committee Minutes - 15 February 2022

As noted in the relevant Minutes.

As noted in the relevant Minutes.

To remain in public excluded.

6.2

Sustainable Homes Scheme loans: compliance with the Credit Contracts and Consumer Finance Act 2003

Withholding the information is necessary to maintain legal professional privilege.

48(1)(a)(i) Section 7 (2)(g).

To remain in public excluded.

Thompson/von Dadelszen

CARRIED

 

11.49 am – the meeting closed.

 

 

Confirmed                                                                                                                   

                                                                                                        Cr Paula Thompson

Chairperson, Strategy and Policy Committee


 

 

 

 

Report To:

Strategy and Policy Committee

Meeting Date:

18 August 2022

Report Writer:

Julie Bevan, Policy & Planning Manager

Report Authoriser:

Namouta Poutasi, General Manager, Strategy & Science

Purpose:

To provide an update on Council’s operating environment.

 

 

Operating Environment

 

 

Executive Summary

This report covers the operating environment areas that influence and inform Council’s policy direction and work. It provides information on the operating environment and upcoming reforms that will potentially have considerable impact on our local government form and functions.

It covers:

·          Plan Change 9 Update

·          Rotorua Geothermal System Management Plan

·          National Adaptation Plan for responding to climate change risks

·          Government Reforms and Change Proposals

·          Upcoming Legislative and Government Policy Changes and Potential Impacts

 

Recommendations

That the Strategy and Policy Committee:

1       Receives the report, Operating Environment.

 

 

 

1.         Introduction

This report provides a briefing on the range of Government reforms and legislative change proposals that might impact on the future scale and scope of our work. Also included in the report is an update on the High Court decision on the PC9 appeal and judicial review, and on the development of the Rotorua Geothermal System Management Plan.

1.1       Alignment with Strategic Framework

 

A Healthy Environment

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

Freshwater for Life

We collaborate with others to maintain and improve our water resource for future generations.

Safe and Resilient Communities

We work with communities and others to consider long term views of natural hazard risks through our regional plans and policies.

A Vibrant Region

We contribute to delivering integrated planning and growth management strategies especially for sustainable urban management.

The Way We Work

We use robust information, science and technology.

We honour our obligations to Māori.

The delivery of Regional Policy Statement (RPS) and Regional Natural Resource Plan (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 air, land, water and geothermal resources, achieving integrated management and improving environmental quality in the Bay of Plenty Region.

 

2.         Operating Environment

2.1       Plan Change 9 Update

Proposed Change 9 to the Bay of Plenty Regional Natural Resources Plan was withdrawn on 25 February 2020.  The withdrawal of the Plan Change was appealed and on 1 August 2022, the High Court decision was released with the appeal being dismissed and all grounds of the judicial review rejected.

2.2       Rotorua Geothermal System Management Plan and Plan Change

2.2.1    Rotorua Geothermal System Management Plan update

Council has previously endorsed a process for the review of the geothermal provisions of both the Rotorua Geothermal Regional Plan and the Regional Natural Resources Plan.  The timeframes for the plan review have been delayed on several occasions with the most recent commitment a release of a draft Rotorua Geothermal System Management Plan (SMP) in 2022. A considerable amount of technical work as well as extensive engagement has been undertaken towards meeting this 2022 commitment. While this has provided a strong foundation for the development of the SMP and plan change, outcomes of recent community engagement hui will further delay timeframes.

Recent community engagement saw a broad policy framework for the Rotorua Geothermal System presented at four hui held during May and June 2022. This included one hui-a-iwi, and two community hui at Ōhinemutu. An additional focussed hui was held at Whakarewarewa. The hui were well attended with over 40 people at each. A range of issues were raised and have been captured in comprehensive notes provided to participants and to be made available on Council’s website. The following matters relating to partnerships with Māori and resource availability and limit setting are of particular relevance in respect to impacts on timeframes.

2.2.2    Partnerships with Maori

A key outcome of hui-a-iwi was general agreement that the SMP needs to be developed in partnership.

To date input has been provided by the hau kainga Roopu, Te Ahi Kaa Roa, and at hui-a-iwi and hui with specific iwi entities. However, further expert input and direction is needed. This includes (but is not limited to):

·       Confirming the objective for the system

·       Mātauranga Māori monitoring and oversight

·       Provisions relating to customary use

·       Agreeing partnership models

·       Embedding Mātauranga Māori and Te Ao Māori into the policy framework

This is not a small body of work, and a clear process is needed to deliver this outcome. In response, hui-a-iwi attendees called for a collective and coordinated Te Arawa response to geothermal, and for Te Arawa to come together to reach agreement about a preferred approach for development of the SMP.  This hui will be Te Arawa led, supported by staff, if requested.

This is a critical step that relies on Council receiving clear direction from Te Arawa about their preferred process.

2.2.3    Resource availability and limit setting

An issue that has been repeatedly raised in engagement, is the need for more certainty about availability of the geothermal resource for use and development. There is a strong support for protection of surface features in Rotorua, but also a desire to continue to use geothermal, and to potentially increase access for home heating schemes etc. There is also a perception that there is unlimited geothermal resource available.

Although Council has consistently messaged that the system is vulnerable to change, that some limits to the use of fluid and heat will be necessary, and that a precautionary approach is needed, this tension has been ongoing, and messaging around the vulnerability of the system and limits to use has been challenging.

Staff have provided broad information on the systems limits to date. This information has been high level, as we have been waiting on finalisation of various technical reports, including modelling, to provide us with specific guidance on limits (e.g. modelled predictions of the impacts of increased use). Consolidation of findings of these technical reports is currently being undertaken, however, initial analysis has further highlighted the vulnerability of the system and indicated that unchecked growth or significant increase in use may put surface features at risk. Allocation limits to geothermal fluid and heat will be needed and setting these limits will be a critical step in development of the SMP.  What these limits are, why they are needed and how they have been derived needs to be supported by robust and defendable evidence. This will need to be carefully messaged to the community.

2.2.4    Next steps

Staff will await a collective Te Arawa response and work collaboratively to develop a process for further co-design of the SMP.

In the meantime, we will continue to:

·       work directly with our Ahi Kaa Roa roopu

·       meet with strategic partners, including Rotorua Lakes Council

·       draft chapters of the SMP and supporting plan change where possible

·       prepare engagement material to support the SMP, focussing on a series of online videos on technical inputs and limit setting

At this stage, depending on feedback from Te Arawa, we anticipate presenting a draft SMP to Council early in 2023 for consideration.

2.3       National Adaptation Plan for responding to climate change risks

The National Adaptation Plan (NAP) was released on August 3, 2022.  It is a six-year plan to help the nation adapt to climate change. It has four priorities:

·       enabling better risk-informed decisions,

·       driving climate-resilient development in the right places,

·       laying the foundations for a range of adaptation options including managed retreat, and

·       embedding climate resilience across government policy.

The Climate Commission will monitor the implementation of the plan and produce 2 yearly progress reports.

Critical actions to achieve the priorities include:

·       an update to the national climate projections based on the latest IPCC report,

·       the development of a national information portal, development of a Māori climate action platform,

·       improved hazard disclosure on LIMs,

·       a rolling set of guidance for local government,

·       the National Planning Framework which will set clear direction on achieving climate outcomes,

·       Regional Spatial Strategies which will identify hazard zones and areas where adaptation may be necessary,

·       the Climate Adaptation Act to address the complex legal, technical, and financial issues associated with managed retreat,

·       the Future for Local Government Review for what local government does and how it pays for it,

·       completion of the case study into co-investment for flood resilience,

·       future budget consideration of adaptation criteria for accessing the Climate Emergency Response Fund,

·       an integrated work programme for climate and biodiversity, 

·       a land transport adaptation plan by Waka Kotahi, and

·       an analysis of climate impacts on regional economies.

Councils will need to have regard to the National Adaptation Plan when making or changing regional policy statements or regional or district plans, from November 2022. There is a strong emphasis in the plan on climate resilient development in the right locations.

Ministry for the Environment (MfE) have also released an interim update to the 2017 coastal hazards and climate change guidance for local government, to reflect the latest sea-level rise scenarios from the IPCC and the NZSeaRise project. Staff are assessing any impact of this changed guidance. A full update is expected in 2023.

2.4       Government Reforms and Change Proposals

2.4.1    National Policy Statement for Indigenous Biodiversity

The Government released the National Policy Statement for Indigenous Biodiversity (NPSIB) exposure draft for consultation in June 2022. Bay of Plenty Regional Council provided feedback on the Exposure Draft of this NPSIB Consultation which closed on 21 July 2022.

The NPSIB is due to be gazetted at the end of this year. Included in this Committee Agenda is a report that NPSIB requirements for Council and provides comment on the likely implications.

2.4.2    Resource Management Reforms

The Government has decided to develop a new piece of national direction on infrastructure to be included in the first iteration of the National Planning Framework.

Minister for the Environment David Parker has indicated that the inclusion of provisions to enable infrastructure in the National Planning Framework will help accelerate its delivery by giving clear direction to councils, reducing the variation in rules across regions and providing more certainty to infrastructure providers.

In a speech, about reforming the resource management system, to Local Government New Zealand Conference on 21 July 2022, Minister Parker stated:

Local government will continue to be the key institution, shaping and implementing the new system. We are not proposing a 50/50 co-governance model, but we are including a more effective role for Māori and central government in plan making processes.

The Ministry for the Environment (MfE) have indicated that they are now at the stage where the majority of policy decisions for the Natural and Built Environments Act and the Spatial Planning Act have been made and drafting of the new legislation is underway.

The Government intends to introduce the Natural and Built Environments Bill and the Spatial Planning Bill to Parliament in October 2022. The third Bill, the Climate Adaptation Bill, is expected to be introduced in 2023.

2.4.3    Proposed National Policy Statement for Highly Productive Land

In April, targeted engagement by MfE was carried out by on three amendments to the proposed National Policy Statement for Highly Productive Land (NPS-HPL), relating to:

·       activities provided for on specified Māori land that is identified as Highly Productive Land

·       criteria for mapping and tests for assessing whether land is not suitable for land-based primary production (and therefore exempt from NPS-HPL restrictions)

·       the expected involvement of tangata whenua in giving effect to the NPS-HPL

The feedback received will be used to inform an amended draft NPS-HPL for Ministerial consultation. A Final NPS-HPL is likely to be ready for Cabinet approval at the end of August.

2.5       Upcoming Legislative and Government Policy Changes and Potential Impacts

Monitoring is continuing of Central Government’s extensive policy programme. An analysis of the potential implications is provided in Attachment One.

3.         Considerations

3.1       Risks and Mitigations

This is an information only report and matters of risk in relation to future RPS and RNRP changes and possible updated National Policy Statements and National Environmental Standards will be outlined in the separate reports when reported to the Committee for decision making purposes.

3.2       Climate Change

The matters addressed in this report are of a procedural nature and includes an update on the National Adaptation Plan for responding to climate change risks. Climate Change is a key matter that will be considered in the implementation policy development and analysis process of the proposed RPS Changes and RNRP Plan Changes and will be reported to the Committee during the process.

3.3       Implications for Māori

The RMA processes, and any future RPS Changes and Plan Changes all involve consideration of implications for Māori, engagement and consideration of iwi planning documents.

3.4       Community Engagement

The RMA processes, and any future RPS Changes and Plan Changes all involve consideration of community engagement undertaken through those processes.

3.5       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 budget.

4.         Next Steps

Given the unprecedented nature and timing of reform it is essential that Regional Council continues to focus on delivery. Delivery of the Long Term Plan will be important, particularly key projects such as Essential Freshwater.

As further details on areas under reform become available, 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. Once there is a clearer picture of proposed changes additional analysis on bigger picture implications can be assessed further.

 

 

Attachments

Attachment 1 - Summary of key upcoming legislative changes and potential impacts   


Strategy and Policy Committee                                                                  18 August 2022

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Report To:

Strategy and Policy Committee

Meeting Date:

18 August 2022

Report Writer:

Ruth Feist, Senior Urban Planner

Report Authoriser:

Namouta Poutasi, General Manager, Strategy & Science

Purpose:

To provide an update on the Whakatāne-Kawerau spatial planning project and note that a Council representative is required for the governance group

 

 

Whakatane Kawerau Spatial Plan Project

 

Executive Summary

The Whakatāne-Kawerau spatial planning project was initiated to support and guide integrated future planning and investment decisions.

·          A Governance Group is to be established to oversee and project and agree implementation actions and investment. This will be established in the new triennium.

·          A Bay of Plenty Regional Council representative will be required for the Governance Group.

·          Staff have been involved in the project set up and contributing to the project.

·          An evidence base (issue papers) and urban growth scenarios are being drafted and will be finalised for engagement purposes.

 

Recommendations

That the Strategy and Policy Committee:

1       Receives the report, Whakatane Kawerau Spatial Plan Project.

 

 

1.         Introduction

The Eastern Bay of Plenty is experiencing consistent annual population and economic growth and requires an integrated spatial plan to support and guide future planning and investment decisions. 

The sub-region’s challenging natural geography, increasing demand on housing (including affordability and suitability of housing stock), increasing demand on existing infrastructure, and further development of economically important industries, are all key challenges that require integrated management and partner led solutions. It is also important while managing growth, that we deliver appropriate wellbeing outcomes where communities can live and access the lifestyle they desire including valuable employment, recreation, and cultural and social opportunities.

Spatial and strategic planning is a core part of current resource management reform with a Spatial Planning Act (SPA) expected to be introduced to Parliament in the second half of 2022.  Development of a spatial plan will help position the Eastern Bay of Plenty in the development of a Regional Spatial Strategy (RSS) and Infrastructure Strategies, the Three Waters Reform and central government investment priorities and planning.

The Bay of Plenty Regional Council, Kawerau District Council and Whakatane District Council (the Councils) have committed to working together, with iwi and other central government partners, to develop a Spatial Plan for the Whakatane and Kawerau districts. Neighbouring communities (Rotorua and the Western Bay of Plenty) have also undertaken significant spatial planning work that has implications for the Eastern Bay of Plenty and vice versa as people and products move across the Bay of Plenty region as well as access the wider upper North Island.  There will also be impacts and connections to the Tairawhiti region.   

Council have supported this work through funding in its 2022/23 Annual Plan.

Part of the project structure is a Project Governance Group. A representative from Bay of Plenty Regional Council will be sought for the governance group in the new triennium. Whakatane District Council will establish the governance group.

1.1       Alignment with Strategic Framework

 

A Vibrant Region

We contribute to delivering integrated planning and growth management strategies especially for sustainable urban management.

The Way We Work

We look to partnerships for best outcomes.

The Whakatāne-Kawerau spatial planning project contributes to sustainable urban growth management and integrated urban and transport planning. Partnerships across iwi, local government and central government agencies are critical to the project.

1.1.1    Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Medium - Positive

þ Cultural

Medium - Positive

þ Social

Medium - Positive

þ Economic

Medium - Positive

 

The actual effects of the Whakatāne-Kawerau spatial plan on each of the well-beings can’t be determined at this initial stage of the project. However, the project aims to address the four well-beings.

 

 

2.         Whakatane Kawerau Spatial Planning Project

2.1       Spatial Plans

Spatial Plans define an agreed strategic urban form, rural landscape and infrastructure framework that meets partner principles and delivers the best possible community outcomes, including alignment with government priorities and achieving value for money.

A Spatial Plan will help the Councils, with their partners, to:

(a)        Enable well planned growth in the context of a changing climate and evolving economy;

(b)       Define well-functioning urban environments and rural landscapes, that meet the changing needs of our communities, including well-planned and connected rural residential supporting growth nodes;

(c)        Deliver housing choice and levers to support housing affordability;

(d)       Guide the development of Future Urban Growth Plans to support integrated planning, investment, and efficient delivery of infrastructure, necessary to support our communities;

(e)       Improve community social and cultural wellbeing;

(f)        Protect and enhance our natural environment; and

(g)       Strengthen and give effect to partnerships between iwi, local and central government.

2.2       The Spatial Plan within the National Planning Framework

The Spatial Plan is a core strategic document within the regions’ planning framework:

 

2.3       Project Structure

The current project structure consists of the following (in place and planned):

 

2.4       Project Partners

The Spatial Plan will have far-reaching impacts on a wide range of our communities, in the short, medium, and long term.  These communities have differing needs and aspirations and therefore it is important that the Spatial Plan is developed in an inclusive and collaborative manner. 

Working in genuine partnership with iwi authorities is particularly important at all stages of the spatial planning process. Building effective and enduring partnerships between iwi authorities, the Councils and the government will ensure that the needs and development aspirations of all Eastern Bay of Plenty communities are understood, and the Spatial Plan is focused on the critical interests of communities within the sub-region.

The Spatial Plan will also have implications for government agencies that deliver infrastructure, housing development and other services such as health and education, that will be needed to meet the growth needs of the Eastern Bay. In order to ensure that the project and funding implications arising from the Spatial Plan can be implemented, the Spatial Plan will be developed collaboratively with government including Waka Kotahi, the Ministry of Housing and Urban Development (MHUD), Kāinga Ora, Ministry of Education and the Entity responsible for delivering three waters services in the future. 

The Spatial Plan Project includes the following key partners:

*  Bay of Plenty Regional Council  

*  Kawerau District Council

*  Whakatāne District Council

*  Te Rūnanga o Ngāti Awa

*  Te Mana o Ngāti Rangitihi  

*  Ministry of Housing and Urban Development

*  Waka Kotahi, NZ Transport Agency   

*  Ministry of Education

*  Kāinga Ora

2.4.1    Friends of the Project

An additional group will be established to support the Leadership Group and Project technical team on key planning and decisions.  This will include a number of agencies / organisations that will have a role to play in supporting and delivering on specific areas of the Spatial Plan.

Examples of agencies that could be included, but not limited to, are Toi EDA, Bay of Plenty District Health Board, Neighbouring Councils (Western BoP, Rotorua, Ōpōtiki and Tairawhiti).

2.4.2    Iwi Representation and Engagement

In addition to Te Rūnanga o Ngāti Awa and Te Mana o Ngāti Rangitihi who have indicated they will join the project as key partners, discussions on participation are also continuing with representatives from other iwi authorities whose rohe includes the Whakatāne and/or Kawerau Districts.

2.5       Project Staging and Timeframes

The Spatial Plan project will be staged over the next 3-5 years to develop and deliver different levels of planning to support national, regional, and local decision making.

Project Stage

 

Scope of Project

Elected Member Involvement

Stage 1

WHAKATĀNE KAWERAU SPATIAL PLAN (Current Project)

(Dec 2021 – June 2024)

 

Define an agreed strategic urban form, rural landscape and infrastructure framework that delivers the best possible community outcomes, including alignment with government priorities and achieving value for money.

·      Governance Group (meet 3-4 times annually)

·      WDC Project and Services Committee (7 weekly report update from project team)

·      Workshops (examples)

Foundation Report / Topic Papers (issues and challenges)

Key Objectives and Outcomes

Scenarios for Growth

Implementation plan for preferred scenario

Draft Spatial Plan

Final Spatial Plan

·      Further workshops with BoPRC, WDC, KDC.

·      Long Term Plan / Annual Plan preparation and funding decisions

·      Infrastructure Strategy development (LTP)

·      Regional Land Transport Plan development

·      Community Engagement

·      Monitoring and Reporting

Stage 2

WHAKATĀNE DEVELOPMENT PLAN

(Includes Place Based Plans and Housing Plan)

(June 2024 – June 2026)

 

Define further planning, infrastructure and investment required to support the agreed spatial pattern, including working closely with communities on place-based plans to clearly identify aspirations, challenges, priorities, and actions for each Place.

 

·      Place based champions (elected members, key stakeholders)

·      Regular workshops and reporting to elected members.

·      Long Term Plan / Annual Plan preparation and funding decisions

·      Infrastructure Strategy development (LTP)

·      Regional Land Transport Plans

·      Further workshops with BoPRC, WDC, KDC.

·      Future Regional Spatial Strategy

·      Design and delivery of projects, public space developments etc.

·      Community Engagement

·      Monitoring and Reporting

 

·      Work closely with central government to align planning and investment i.e., Kāinga Ora, Ministry of Housing and Development, Waka Kotahi, Ministry of Education, Health Advisory.

·      Updates on Crown investments.

Stage 3

IMPLEMENTATION OF PLACE BASED PLANNING

(June 2026 onwards)

Implement the Development Plan and Place Based Plans through multiple processes including Long Term Plan, Annual Plan, District Plan, Regional Land Transport Plan, and other government agencies planning.

 

2.5.1    Stage 1: Whakatane Kawerau Spatial Plan

Stage 1 of the Spatial Plan will be delivered in five key steps including:

Step 1:

Project Initiation (8-10 weeks, December 21 – March 2022) (complete)

Step 2:

Evidence Building (16 Weeks March – July 2022) (current phase)

Step 3:

Agree Vision, Priority Outcomes and Preferred Scenario (22 Weeks, July – December 2022)

Step 4:

Finalise Spatial Plan (22 Weeks January – June 2023)

Step 5:

Implementation Plan and Monitoring (June 2023 – June 2024)

2.6       Evidence Building – Issues Papers and Foundation Report

As part of the Evidence Building workstream, a number of key issues papers have been developed.  These include the collation and documentation of all relevant information and data to support each topic area. 

The issues papers / key topics include:

1. People and Communities

2. Economy and Jobs

3. Infrastructure

4. Housing

5. Natural Environment and Resilience

6. Placemaking / Community Enhancement

For each issue paper, a summary report will be developed outlining:

•      Current context including supporting evidence

•      Key findings including identified issues and opportunities (with supporting evidence)

•      Key messages for the Spatial Plan

•      Key actions required to support further planning and evidence building

These summaries are currently being reviewed and will be used to develop a Foundation Report that will guide future stages of the Project.  

2.6.1    Iwi partnerships and input into evidence base

A core part of each issues paper will be to outline iwi partnerships, priorities and perspectives within these topic areas. 

This will need to be undertaken in partnership with iwi as the papers progress.  Conversations are continuing with iwi in terms of engagement and involvement at all levels of the Project.

2.7       Project Progress Summary

The following table summarises the current project components and progress to date on identified actions for Stage 1:

Task

 

Progress / Recent Actions Taken

Status

Project Phase 1: Project Initiation

Project Structure

·       Discussions held with Eastern BoP elected members on appropriate governance structure for the Project.

·       Spatial Plan Leadership Group established with regular meetings. Includes representatives of local and central government. 

·       Discussions underway with iwi in terms of representation at all levels of the Project.

·       Project Working Group established and meeting regularly.

·       Project management structure in place.

 

Iwi Partnerships

·       Discussions are underway with iwi leaders in terms of expectations, engagement, and involvement.

 

Project Plan

·       Project Plan in place. 

·       Draft confirmed with Spatial Plan Leadership Group April 2022.

·       Further work will be undertaken in partnership with iwi to confirm scope and staging of the Spatial Plan.

 

Communications and Engagement Plan

·       Draft communications and engagement plan in early development.

 

Project Phase 2: Evidence Building

Identify key issues and outcomes

·       Issues and key topic papers drafted and currently under review with technical team.

·       Summary Foundation Report drafted from issues papers which will guide future stages of the Project.  Currently under review.

 

Undertake constraints mapping

·       Constraints mapping nearing completion with initial GIS layers identified, to support future decision making.

·       Further mapping will be undertaken as the project progresses.

 

Define problems (with evidence)

·       Early planning underway. 

·       Issues papers and summary Foundation Report will support the first stages of this.

 

Identify current and future pressures

·       Still to commence.

 

Project Phase 3: Agree Vision, Priority Outcomes and Preferred Scenario

Define outcomes (by place)

·       This phase will follow and be informed by completion of Phase 2.

TBD

Define and evaluate possible scenarios

Identify and develop preferred scenario

Define key moves (i.e. focus areas to achieve vision / outcomes)

 

 

Project Phase 4: Finalise Spatial Plan

Refine and sequence interventions

·       This phase will follow and be informed by completion of Phase 3.

TBD

Prepare Draft Spatial Plan

Undertake consultation process

Develop high level funding plan

Finalise Spatial Plan

Project Phase 5: Implementation Plan and Monitoring

Develop work programme

·       This phase will follow and be informed by completion of Phase 4.

TBD

Identify roles and responsibilities

Monitor Spatial Plan implementation

 

3.         Considerations

3.1       Risks and Mitigations

There are no significant risks associated with this matter.

3.2       Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.   The Spatial Plan will include consideration of climate change impacts and measures to limit greenhouse gas emissions.  Avoiding or reducing hazards arising from climate change will strongly influence where future growth is located. This will also be supported through the constraints mapping workstream, currently underway for Stage 1.

3.3       Implications for Māori

Refer to the following sections of this report that explain iwi involvement in the project:

2.3 Project Structure

2.4 Project Partners

2.4.2 Iwi representation and engagement

2.6.1 Iwi partnerships and input into evidence base

3.4       Community Engagement

 

Adobe Systems

CONSULT

Whakauiuia

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

 

A detailed communications and engagement plan is being developed by Whakatāne District Council staff for the project. Targeted community stakeholder engagement is expected to occur in the second half of 2022, with wider community engagement in tandem with consultation on respective Annual Plan processes

3.5       Financial Implications

Council’s contributions are $50,000 in the Annual Plan 2022/23 (for iwi engagement and project management costs), in addition to staff time and mapping expertise. The project plan is being finalised.  The total estimated budget is approximately $570,000 to 2023.  A request for further funding to BOPRC has been made.  We are considering how to best support this project further and will report back.

4.         Next Steps

Establish the project Governance Group, in partnership with the current Leadership Group.

Complete the issues papers and subsequent development of the Foundation Report Summary to guide future stages of the Project.

Continue constraints mapping.

Continue work on the communications and engagement plan and programme.

 

 

 

 

 

 

 

  


 

 

 

Report To:

Strategy and Policy Committee

Meeting Date:

18 August 2022

Report Writer:

Lisa Power, Senior Planner

Report Authoriser:

Namouta Poutasi, General Manager, Strategy & Science

Purpose:

To outline the implications of the anticipated National Policy Statement Indigenous Biodiversity for Council.

 

 

National Policy Statement for Indigenous Biodiversity: Implications for Council

 

Executive Summary

A National Policy Statement for Indigenous Biodiversity (NPSIB) is due to be gazetted at the end of this year. Bay of Plenty Regional Council (Council) provided feedback on both the Proposed and the Exposure draft of this NPSIB. 

This national direction comes at a time Council is undertaking substantial policy and planning processes to implement other recent National Policy Statements.

This NPSIB requires additional work for Council including:

   

-      working in partnership with tangata whenua at every stage of indigenous biodiversity identification and policy development

-      engaging in pre-policy survey and research work

-      changing regional policy statements and regional plans

-      developing a Regional Biodiversity Strategy and

-      developing a monitoring plan.

This report outlines NPSIB requirements for Council and provides comment on the likely implications.  Council will need to start considering how it is going to meet these NPS requirements through its long-term and annual planning processes.

 

Recommendations

That the Strategy and Policy Committee:

1.      Receives the report, National Policy Statement for Indigenous Biodiversity: Implications for Council.

 

1.         Introduction

Biodiversity in Aotearoa and across the world is declining. This biodiversity crisis is well documented. Unfortunately, these trends are being observed in our own rohe. As reported to Council’s Monitoring and Operations Committee in March 2020, monitoring suggests the overall state of our biodiversity and ecosystems continues to decline[1].  Main ecological drivers of biodiversity loss include habitat loss and fragmentation, invasive pests and disease, climate change, land use change and intensification. 

The NPSIB is an essential part of New Zealand’s response to biodiversity decline in Aotearoa.

Consultation was held on a proposed NPSIB between November 2019 and March 2020 and this year targeted consultation was undertaken on an Exposure draft of the NPSIB. Council provided feedback on both the Proposed and the Exposure draft. Implementation of the NPSIB will require additional resourcing. This report sets out NPSIB expectations that sit with Council as a kaitiaki of indigenous biodiversity.

It is anticipated the NPSIB will be gazetted by the end of 2022. Any changes between the NPSIB Exposure draft and the gazetted version will be reported back to this Council.

1.1       Legislative Framework

This report focuses on implementation of the NPSIB as a national direction under the Resource Management Act 1991 (RMA).

The RMA provides the legislative framework for maintaining and protecting indigenous biodiversity from adverse effects on private land (through sections 5, 6, 7, 30 and 31). Through the NPSIB consultation documents, it is acknowledged these provisions don’t provide detailed direction and are often subject to different interpretation, application and monitoring by councils. This has led to repeated litigation costs, confusion, uncertainty and an undervaluing of biodiversity in decision making. Indigenous biodiversity and taonga continue to be lost regardless of current efforts to protect and restore them[2].

National policy statements issued under the RMA provide national direction for matters of national significance relevant to sustainable management. There are now a number of national policy directions intended to guide councils through their regulatory and decision-making processes.

Local authorities are required to give effect to all national policy statements through planning documents and must consider any relevant national policy statements when making decisions on resource consents. The Regional Policy Statement is the key policy document containing a range of objectives, policies and methods aimed at achieving biodiversity maintenance.

The NPSIB is part of Government’s current comprehensive review of the resource management system. It is difficult to provide clarity about how biodiversity management and the NPSIB will fit into the future resource management system. However, the Ministry for the Environment anticipates the policy intent of existing national direction will carry over to the new system, including the proposed NPSIB[3].

Council has other roles and responsibilities outside the RMA that contribute to biodiversity outcomes including pest management through the Biosecurity Act 1993 and funding arrangements through the Local Government Act 2002. Other agencies are also mandated by legislation to protect, maintain and enhance biodiversity.[4] 

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

We listen to our communities and consider their values and priorities in our regional plans.

Safe and Resilient Communities

We work with communities and others to consider long term views of natural hazard risks through our regional plans and policies.

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.

1.2.1    Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

High - Positive

þ Cultural

High - Positive

þ Social

Low - Positive

þ Economic

Low - Positive

In addition to Council’s statutory obligations to sustainably manage the region’s biodiversity, Council has a clear strategic direction to maintain biodiversity.

Since 2017, support for proactive biodiversity management activities has been targeted towards Priority Biodiversity Sites (PBS). The PBS were developed with Department of Conservation to support our joint regional goal of maintaining and restoring a full range of the region’s ecosystems to a healthy functioning state. They are non-statutory and represent only a small subset of areas considered significant.

Bay of Plenty Regional Council’s Long Term Plan 2018-2028 contains a stated outcome to ‘maintain and enhance regional biodiversity for the benefit of our communities’. The Long Term Plan includes a Key Performance Indicator to actively manage four new ‘Priority Biodiversity Sites’ each year – a target that has been met or exceeded for the last two years.

The NPSIB requirement to develop a Regional Biodiversity Strategy presents an opportunity to consolidate Council’s biodiversity strategic direction. (See Section 2.4).

 

 

2.         NPSIB and implications

The NPSIB applies in the terrestrial environment only (covering all land tenures) and at this stage does not apply in the coastal marine area[5].

The sole objective of the draft NPSIB is to protect, maintain and restore indigenous biodiversity in a way that:

-      recognises tangata whenua as kaitiaki, and people and communities as stewards of indigenous biodiversity and

-      provides for the social, economic, and cultural wellbeing of people and communities now and in the future.

Appendix One details the additional roles and tasks for Council to implement the NPSIB.  For context, roles of territorial authorities are also included as there are requirements that apply to all local authorities. There will be synergies if Councils can work together on aspects of NPS implementation.

The 2022 national budget provides $19 million to support NPSIB implementation for iwi/Māori, private landowners and councils. It is not known how this money will be divided across the motu but staff maintain whatever share our region receives it will fall short of what is required for NPSIB implementation.

Likely implications for Council are signalled below.

2.1       Working in partnership with tangata whenua

The NPSIB recognises the role of tangata whenua as kaitiaki and requires councils to involve tangata whenua in the management of, and decision-making for, indigenous biodiversity. Tangata whenua will be involved at all levels of the RMA processes for managing indigenous biodiversity.

Staff comment: From the outset of NPSIB implementation, Council will need to work with tangata whenua to agree how they will work together and establish the extent to which tangata whenua want to be involved in policy development and management of indigenous biodiversity.

Additional support will be required to gather Mātauranga Māori specific to indigenous biodiversity. Information management systems will need to be established to gather and share information provided by tangata whenua.

New requirements: Engagement/involvement, capacity building, information gathering, information management systems/databases.

2.2       Identification of Indigenous Biodiversity

The NPSIB requires councils to consistently identify areas with significant vegetation and habitats of significant indigenous fauna. Significant natural areas (SNAs) would be identified by councils and ecologists working with landowners, using standard significance criteria outlined in the NPSIB and which are already widely used by councils.

Local authorities are required to make or change their policy statements and plans to include objectives, policies and methods that require the following five categories of adverse effects of new subdivision, use and development on significant natural areas (SNAs) are avoided:

-      loss of ecosystem representation and extent

-      disruption to sequences, mosaics, or ecosystem function

-      fragmentation of SNAs or the loss of buffers or connections within an SNA

-      a reduction in the function of the SNA as a buffer or connection to other important habitats or ecosystems and

-      a reduction in the population size or occupancy of Threatened, At Risk (Declining) species that use an SNA for any part of their life cycle.

The draft NPSIB has some specific management approaches for SNAs relating to Māori land, existing activities, geothermal features, specified infrastructure, pastoral farming, plantation forestry, and mining and aggregate activities.

Local authorities are required to adopt a precautionary approach towards activities where the effects on indigenous biodiversity are uncertain or little understood, or if SNAs have not yet been identified by councils. While the effects management hierarchy requires an approach where adverse effects are avoided where practicable.

The NPSIB sets out a framework to enable councils and tangata whenua to work together to identify ecological taonga by describing and mapping, or simply describing the taonga and its values (to the extent tangata whenua would like this to occur)

Indigenous biodiversity that exists outside of SNAs is also important. Councils will be required to maintain indigenous biodiversity and manage adverse effects of new activities on indigenous biodiversity outside of SNAs. The NPSIB also requires regional councils to record areas outside of SNAs that are highly mobile fauna areas.

Staff comment: Identification of SNAs is clearly a responsibility for territorial authorities under the NPSIB. However, under the Exposure draft, if a territorial authority requests assistance from the relevant regional council to undertake its district wide assessment the regional council must assist. It is unclear what these expectations are for regional councils or whether Council will be approached for assistance. Council sought clarification of its obligations to assist in feedback on the Exposure draft.[6]

The requirement to manage indigenous biodiversity outside SNAs and specified highly mobile fauna will require significant research to better understand locations outside of SNAs and how they are affected by activities.  Populations of species will need to be surveyed (including where they move seasonally).

Existing permitted activities and assessment of environmental effects requirements for consent applications will need to be reviewed. 

New requirements: Territorial authority assistance (if requested), information gathering, ecological surveys, research, mapping, policy review.

2.3       Policy Statement and Plan Changes

Changes to the regional policy statement and regional plan(s) will be required to:

-      include objectives, policies, and methods to avoid specified adverse effects and manage unspecified adverse effects (using the effects management hierarchy) on SNAs

-      require, where adverse effects are required to be managed, consent is not granted unless the applicant has demonstrated how each step of the effects management hierarchy will be applied

-      provide protection for geothermal SNAs

-      manage SNAs within plantation forests (focus on Threatened or At Risk species)

-      allow existing activities affecting SNAs to continue

-      allow the maintenance of improved pasture (with exceptions)

-      apply the effects management hierarchy to any adverse effects on indigenous biodiversity that may be ‘irreversible’

-      include objectives, policies, or methods in policy statements and plans for managing adverse effects (subdivision, use, and development) on Specified Highly mobile Fauna Areas (HMFAs)

-      include objectives, policies, or methods in policy statements and plans to promote restoration of indigenous biodiversity

-      ensure the sustainable customary use of taonga is provided for

-      include requirements for consent applications in relation to indigenous biodiversity.

Staff comment: Resourcing the required plan changes will impose a significant cost on Council. Changes will need to be made to the Regional Policy Statement, Regional Natural Resources Plan and possibly the Regional Coastal Environment Plan.

The section 32 report for this NPSIB estimated that plan change costs to implement the NPSIB will range from $71,000-$176,000 (present value) per regional council. Staff consider this a significant under-estimate of likely costs based on Council’s experience of plan change costs. Recent examples of plan change costs range between $215,000 and $1.8 million.

New requirements: Consultation, policy development, plan changes and notification, possible litigation costs if there are appeals.

2.4       Regional Biodiversity Strategy

Council will need to prepare a regional biodiversity strategy that has the purpose of ‘landscape-scale enhancement and restoration’.

 

The regional biodiversity strategy must record actions and methods to promote the maintenance and restoration of indigenous biodiversity (including increases in indigenous vegetation cover), actions that will be taken by various parties and how those actions will be resourced.

Staff comment: A Regional Biodiversity Strategy is not confined to statutory requirements and should reflect community aspirations recognising that good biodiversity outcomes contribute directly to our wellbeing.

The section 32 report estimates costs to develop regional biodiversity strategies at regional/unitary authorities $60,000-$112,000 (present value) each. Again staff consider the actual costs will be higher given the extent of indigenous biodiversity baselines and engagement required.

New requirements: Pre-policy survey/aerial imagery to establish baselines (in addition to existing budget approved for wetland oblique imagery as part of NPSFM implementation), mapping, further prioritisation, possible incentives and designations, engagement and implementation (including operational programmes).

2.5       Monitoring Plan

Council will be required to work with our biodiversity partners to develop a monitoring plan for indigenous biodiversity.

Staff comment: Regardless of whether the NPSIB is gazetted, staff will begin developing a monitoring plan that describes monitoring that Council currently undertakes and identifies gaps.

New requirements: Research, consultation, implementation (including operational programmes), cross data agency sharing and monitoring.

3.         Considerations

3.1       Risks and Mitigations

1.   Implementation of the NPSIB will require significant additional resourcing.

Council notes $19 million has been earmarked by Central Government for NPSIB implementation planning across the motu. At this stage it is unknown how this will be divided amongst Councils.

The additional workload resulting from this NPSIB comes at the same time that councils have to go through substantial policy and planning processes to implement other recent National Policy Statements.

Full implementation necessitates a degree of capability. Te Uru Kahika identified the following capability and capacity concerns that relate to all aspects of implementing the NPSIB:

-       genuine partnership with tangata whenua through all aspects of the NPSIB

-       identification of SNAs (including ecological expertise)

-       maintaining schedules and databases

-       planning and policy development

-       consent compliance monitoring and reporting and

-       biodiversity / land management officers.

Long term and annual planning processes will need to consider appropriate resourcing NPSIB implementation.

2.   There are potential tensions between National Policy Statements.

With the growing number of national policy statements that councils must give effect to comes an increased risk of inconsistency or tension between different NPS directions.  Pieces of national direction that do not speak to each other are already causing real challenges for implementation.

Staff have raised this issue though consultation on each NPS.  If further guidance is not provided when the NPSIB is gazetted it will be left to local authorities to reconcile conflict between this NPS and others until the National Planning Framework is in place. This will require keeping abreast of case law and other Council approaches. There may be opportunity for regional working groups to develop agreed understanding.

3.   The NPSIB might not pass the final hurdle of being gazetted.

The NPS may not be gazetted this year as anticipated. This is an ambitious timeframe given the likely amount of feedback that will be received on the Exposure draft. Next year is a general election year which may further delay gazettal.

Regardless of whether the NPSIB is gazetted, Council needs to continue striving for better indigenous biodiversity outcomes. Staff are considering options to raise the indigenous biodiversity profile in council activities including reviewing the effectiveness of current plan provisions and building partnerships with iwi and other biodiversity partners.

3.2       Climate Change

Biodiversity resilience to climate change is an integral component of the NPSIB.

Climate change is a significant and growing pressure on biodiversity. While the potential impacts are still unclear, most ecologists agree that our flora and fauna will be disadvantaged directly and indirectly by the impacts of climate change, resulting in at least local extinctions, strengthened competition from alien species, and biotic migrations tracking suitable climates.[7]

Restoration and enhancement of ecosystems (including a full range of ecosystems) is important to maintain and enhance the resilience of our biodiversity to the effects of climate change. As well as improving the ability of ecosystems to withstand climate change, restoration and enhancement can increase carbon storage (healthy ecosystems store more carbon in their soils and vegetation) and help protect our communities from climate change impacts. For example, protecting and restoring coastal ecosystems helps protect against coastal erosion and storm surges.

The recently released National Adaptation Plan[8] states safeguarding biodiversity and ecosystems is fundamental to our climate response.

Mitigation

Adaptation

Reduce GHG emissions

Produce GHG emissions

Sequester carbon

Anticipate climate change impacts

Respond to climate change impacts

 

3.3       Implications for Māori

There are wide ranging implications for iwi with implementation of the NPSIB. Staff and iwi will need to develop an agreed engagement process to work with Māori.

The NPSIB aims to protect, maintain and restore our indigenous biodiversity and recognises the role of tangata whenua as kaitiaki. It requires councils to involve tangata whenua in the management of and decision-making for indigenous biodiversity. Accompanying the NPSIB is a supporting document that includes a high level summary of provisions that will be of particular interest for iwi/Māori[9].

With regards to Māori land (including treaty settlement land) there are specific management provisions for local authorities to work in partnership with tangata whenua and Māori landowners to develop objectives, policies and rules which balance the maintenance and protection of indigenous biodiversity on Māori land, with the development of that land. This recognises the historic limitations to development on this land, as well as the prevalence of existing indigenous biodiversity on Māori land.

Other provisions in the NPSIB requiring input from iwi /Māori include:

-      developing a local approach to implement the concept of Te Rito o te Harakeke

-      identifying ecological taonga by describing (and mapping, if required) the taonga and its values and deciding how they should be managed. Note that tangata whenua have discretion as to how much information pertaining to taonga is included in planning provisions

-      developing plans to protect geothermal SNAs.

Council has continuously advocated for increased resourcing for tāngata whenua to enable these kinds of directions to be meaningfully implemented and the NPSIB intent realised. 

3.4       Community Engagement

As with all robust policy development a comprehensive engagement/involvement plan will be required to guide partnerships and collaboration between landowners, tangata whenua, communities, councils and public agencies.

3.5       Financial Implications

There is currently no specific Council budget for NPSIB implementation. However, there is a budget that is currently allocated to terrestrial biodiversity monitoring through the National Environment Regional Monitoring Network programme (cf. $100,000 per annum), acquisition and analysis of oblique imagery for mapping and monitoring of wetlands relating to the NPSFM programme ($300,000 per annum) and supporting our biodiversity protection through PBS ($1.2 million per annum). Other council funded programmes that contribute to indigenous biodiversity include eastern goat control programme, coast care and estuary care. Council can expect some share of the 2022 national budget allocated for NPSIB implementation.

Council will be responsible for implementing relevant NPSIB policies by partnering with iwi/Māori, landowners and others. In addition to our own costs, Council may assist territorial authorities, landowners and others with implementation.

4.         Next Steps

Staff will report back to this committee when the NPSIB is gazetted. The immediate focus is on:

-      establishing processes on how Council will work with our indigenous partners

-      pre-policy survey work

-      developing a monitoring plan

-      a review of existing policy

-      programme planning.

The diagram below sets out long term requirements for Council and timeframes.[10]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Attachments

Attachment 1 - NPSIB Roles and responsibilities for local authorities   


Strategy and Policy Committee                                                                  18 August 2022

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Report To:

Strategy and Policy Committee

Meeting Date:

18 August 2022

Report Writer:

Nicola Green, Principal Advisor, Policy & Planning; Stephanie Macdonald, Community Engagement Team Leader and Kate Barnes, Communications Partner

Report Authoriser:

Kataraina O'Brien, Director, Strategic Engagement

Namouta Poutasi, General Manager, Strategy & Science

Purpose:

To update the Strategy and Policy Committee on Essential Freshwater Policy Programme implementation progress and outline draft plans for communications and engagement in 2023.

 

Toi Moana Essential Freshwater Policy Programme Update: Communications and Engagement 2023

 

Executive Summary

The Essential Freshwater Policy Programme to implement the National Policy Statement for Freshwater Management 2020 is progressing according to the agreed plan, including communications and engagement.  Some aspects of the work are behind schedule.  However, staff are now progressing tangata whenua and some targeted stakeholder engagement on working draft policy options for region wide chapters of the Regional Policy Statement and Regional Natural Resources Plan that have been reviewed. Work on water quality and quantity target and limit setting options for Freshwater Management Units is still in development, and staff still aim to have draft policy options ready for public engagement in 2023 as planned.  There are likely to be some gaps. 

Planning for extensive stakeholder and public engagement in 2023 has started, and this will be discussed at the meeting. 

 

Recommendations

That the Strategy and Policy Committee:

1       Receives the report, Toi Moana Essential Freshwater Policy Programme Update: Communications and Engagement 2023.

 

1.         Introduction

The Essential Freshwater Policy Programme (EFPP) is Council’s work programme to implement the requirements of the National Policy Statement for Freshwater Management 2020 (NPSFM), primarily via changes to the Regional Policy Statement (RPS) and Regional Natural Resources Plan (RNRP).

This report provides an update on implementation progress, and on pending changes to national regulations relating to freshwater management.

1.1       Legislative Framework

This EFPP specifically implements the NPSFM, and also the requirement under the Resource Management Act 1991 (RMA) to review provisions in regional plans every 10 years. The RMA has specific Freshwater Planning Process provisions, and section 80A(4) requires Council to notify RPS and RNRP changes that fully implement the NPSFM by 31 December 2024.  The RMA and Local Government Act 2002 set out consultation requirements, and the NPSFM also provides direction to involve tangata whenua and the community.

1.2       Alignment with Strategic Framework

 

A Healthy Environment

We manage our natural resources effectively through regulation, education and action.

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

We work cohesively with volunteers and others, to sustainably manage and improve our natural resources.

Freshwater for Life

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.

Good decision making is supported through improving knowledge of our water resources.

We recognise and provide for Te Mana o Te Wai (intrinsic value of water).

The Way We Work

We honour our obligations to Māori.

We deliver value to our ratepayers and our customers.

We continually seek opportunities to innovate and improve.

We use robust information, science and technology.

[Insert text]

1.2.1    Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

High - Positive

þ Cultural

Medium - Positive

þ Social

 

þ Economic

 

 

There are no immediate effects of this report on the four community well-beings.  However, the EFPP will ultimately deliver new regional policies and rules that primarily will provide for the wellbeing of the freshwater bodies and freshwater ecosystems and also greater provision for cultural values (e.g. Mahinga Kai).  There are likely to be social and economic implications of these policy and regulatory changes, the nature of which will be assessed before proposed changes are publicly notified in 2024.

 

2.         Programme implementation update

The EFPP continues to be implemented according to the agreed programme plan. This year, the focus is primarily on draft policy options development, and continuing to involve tangata whenua. An extensive public engagement period will occur in 2023.

2.1       Draft Policy Options

Staff provided informal briefings to Councillors on working draft policy change options for those region wide chapters of the RPS and RNRP that have been reviewed, including:

·      RPS Water Quality and Land Use, and Water Quantity chapters;

·      RNRP Integrated Management, Beds of Water Bodies, Wetlands,  Discharges to Water and Land, and Land Management chapters.

Staff review of the Kaitiakitanga chapter is progressing and will be discussed with Nga Kaitohutohu and iwi as soon as possible (likely September 2022).

 

Staff have now invited iwi and district councils to provide early input on these draft options.  Feedback will also sought from Rural and Environmental Sector Organisation Forum members shortly, so that a more robust set of draft options and implications can be delivered for public engagement throughout 2023. For clarity, no decisions on those policy options will be sought from Councillors until late next year.

Staff continue to work on other policy review and development topics including:

·       Draft long term vision and outcomes for Freshwater Management Units;

·       Water quality targets, limits and options to achieve them in Freshwater Management Units; 

·       Groundwater and surface water quantity limits and management options;

·       Freshwater Farm Plan provisions that may integrate with pending Freshwater Farm Plan regulations that have not yet been released as either exposure drafts.

2.2       Tangata Whenua Involvement

A tangata whenua engagement update is attached (Attachment 1).

Iwi organisations have been invited to consider draft region wide policy options, to hold workshops with us on these, and to provide feedback.

2.3       Communications and Engagement

Online engagement on long term vision and outcomes for freshwater has now closed and staff will consider responses received from 75 participants plus additional more detailed email submissions as they draft long term vision and outcomes for public engagement in 2023.

At least three district councils are considering draft region wide policy options, and will provide feedback in August/September. As noted above, some targeted stakeholder feedback will be sought shortly.

Staff are starting to prepare for public engagement throughout 2023.  The overarching communications and engagement plan established in 2020 still remains in place. Attachment 3 shows the table of targeted stakeholder engagement, an excerpt from the overarching 2020-2024 plan.  The purpose, scope, key communications and engagement methods, and key themes for 2023 are outlined in Attachment 2. Initial feedback from Councillors is welcome. Given that key content is still developing, many details of community engagement planning will not be able to be confirmed until late this year or early next. The Plan will be presented to elected Councillors at briefings in the new triennium (November 2022). Engagement with tangata whenua is under the guidance of Te Hononga. Tangata whenua engagement will continue to occur alongside the wider engagement process for 2023.

3.         Pending changes to national regulations for freshwater

Table 1 outlines upcoming legislative, regulatory and policy changes specifically relating to freshwater management and affecting this work programme. All of these changes are likely to occur just as our public engagement on draft policy options for the RPS and RNRP initiate, and this will require extra communications and policy response work, which cannot be fully planned until the final text of the amendments is released.

 

Table 1: Upcoming national changes relating to freshwater

Instrument/change

Release Dates

Freshwater Farm Plan regulations

Further delays.  Cabinet paper likely to be delivered late July 2022. Drafting likely to start in August.

Gazettal likely late 2022 or early 2023.

Regional sector is participating in several workstreams, but still unclear as to detail.

Amendments to wetland provisions in the National Environmental Standard for Freshwater regulations (NESF) and NPSFM.

Additional consultation on draft changes closed on 9 July 2022.

Likely gazettal late 2022.

 

Amendments to the National Environmental Standards for Sources of Human Drinking Water 2007 (NES-DW)

Public consultation closed 6 March 2022.

Likely gazettal unknown (originally stated as mid-late 2022).

       

4.         Considerations

4.1       Risks and Mitigations

There are several risks and issues for the EFPP as a whole, which were reported to Strategy and Policy Committee in May 2022.

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.

4.3       Implications for Māori

As reported previously, freshwater is a taonga for tangata whenua. The NPSFM clearly sets out increased expectation of the active involvement of tangata whenua in freshwater management, and provision for cultural values and mātauranga Māori.  Council staff continue to invite and support iwi and hapū involvement to the extent they want to be involved, or have capacity to be involved.

4.4       Community Engagement

See above.

4.5       Financial Implications

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

5.         Next Steps

1.   Continue to invite and support involvement of tangata whenua in draft policy options for region-wide chapters, and in the preparation of draft long term vision for freshwater and environmental outcomes. 

2.   Continue to support various iwi led projects to advance their input and advice into this work programme.

3.   Continue to progress key policy workstreams at pace, including surface water quantity, groundwater quantity, water quality and ecosystem health in Freshwater Management Units.

4.   Continue to develop the Communications and Engagement Plan for 2023 and report to elected councillors in the new triennium briefings (approximately November 2022).

 

 

Attachments

Attachment 1 - Essential Freshwater Policy Programme - Current projects and engagement with Tangata Whenua

Attachment 2 - Draft Communications and Engagement Plan for the Essential Freshwater Policy Programme 2023

Attachment 3 - Excerpt from Communications and Engagement Plan 2020 of overarching stakeholder approach  

 

 


Strategy and Policy Committee                                                                  18 August 2022

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Strategy and Policy Committee                                                                  18 August 2022

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Strategy and Policy Committee                                                                  18 August 2022

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Report To:

Strategy and Policy Committee

Meeting Date:

18 August 2022

Report Writer:

Elsa Weir, Planner

Report Authoriser:

Namouta Poutasi, General Manager, Strategy & Science

Purpose:

To approve the Rotorua Air Quality Action Plan Review document for publication and approve preliminary policy work to commence for a new Rotorua Air Quality Action Plan

 

 

Rotorua Air Quality Action Plan - Review and future policy

 

Executive Summary

The Rotorua Airshed was originally gazetted in 2005 and since 2012 has been classified as a ‘polluted’ airshed under the National Environmental Standards for Air Quality (NESAQ) due to breaches of the PM10 standard. An Action Plan outlining the actions that Bay of Plenty Regional Council would undertake to address this issue was published in 2008.

The Action Plan set out a combination of regulatory and non-regulatory methods to reduce the amount of particulate matter in the Airshed by 60 tonnes per year in order to meet the ambient air quality standard for PM10 as set out in the NESAQ.

Air quality in the Rotorua Airshed has steadily improved since the Action Plan was implemented 14 years ago. The latest NESAQ target was to only have one exceedance of the PM10 standard per year by 2020. The Rotorua Airshed has achieved this in both 2020 and 2021, and it is therefore now considered that this Action Plan has been ‘completed’.

As the Action Plan noted that reviews of the actions should be undertaken, staff have assessed the Action Plan and drafted a high-level review document evaluating the performance of the actions. This report puts forward this document for the Committee’s approval for publication on the Bay of Plenty Regional Council website.

This report also provides an update on the future policy work that will be required to address the amended NESAQ once it is released and recommends that preliminary policy work begins for a new Action Plan for Rotorua.

If the Committee approve the recommendations, staff will finalise and publish the Action Plan Review document on our website and begin preliminary policy work for a new Action Plan for the Rotorua Airshed.

 

Recommendations

That the Strategy and Policy Committee:

1       Receives the report, Rotorua Air Quality Action Plan - Review and future policy;

2       Approves the publication of the Rotorua Air Quality Action Plan review document on the Bay of Plenty Regional Council website;

3       Approves preliminary policy work to commence for a new Rotorua Air Quality Action Plan.

 

1.         Introduction

Rotorua has historically had some of the worst winter-time air quality in New Zealand. The main source of this air pollution has been smoke from solid fuel burners[11] used for home heating. To improve Rotorua’s air quality sufficiently to meet the NESAQ, modelling of the Rotorua Airshed identified the need to remove at least 60 tonnes of particulate matter (PM10) per year.

The Rotorua Air Quality Action Plan was created in 2008 to provide the overarching guidance and approach that would be taken to remove this level of particulate matter. The Action Plan set out to ensure that the Airshed would meet the NESAQ limits and improve the air quality in the Rotorua Airshed for the health and enjoyment of the people of Rotorua.

The Action Plan set out a combination of regulatory and non-regulatory methods. The six areas covered were:

•   Reducing domestic emissions

•   Restricting future domestic emissions

•   Reducing industrial emissions

•   Dry wood

•   Community awareness

•   Infrastructure development

The NESAQ sets a daily standard (i.e. 24-hour average) for PM10 of no more than 50µg/m3. Transitional targets were set within the NESAQ to allow airsheds sufficient time to meet the standard. The following table sets out the applicable targets for the Rotorua Airshed.

 

 

 

 

Number of PM10 exceedances allowed per year

Did Rotorua Airshed comply?

Original NESAQ target

One or fewer by 1 September 2013

No

Revised NESAQ targets[12]

Unlimited until 31 August 2016

Yes

Three or fewer by 31 August 2020

No

Only one from 1 September 2020 onwards

Yes

The Rotorua Airshed achieved the latest NESAQ target in both 2020 and 2021, and it is considered that the Action Plan has therefore now been ‘completed’.

The Action Plan stated that the actions should be reviewed. Staff have therefore assessed the Action Plan and drafted a high-level review document evaluating the performance of the actions. It is proposed that this would be made available on the Regional Council website.

1.1       Legislative Framework

·       Resource Management Act 1991:

o   s30(f) – Function of regional councils to control discharges of contaminants into air.

o   s30(fa)(iv) – establishment of rules in a regional plan to allocate the capacity of air to assimilate a discharge of a contaminant.

·       Resource Management (National Environmental Standards for Air Quality) Regulations 2004.  The Action Plan has been a key factor in achieving compliance with this legislation.

1.2       Alignment with Strategic Framework

 

A Healthy Environment

We manage our natural resources effectively through regulation, education and action.

1.2.1    Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

High - Positive

þ Cultural

High - Positive

¨ Social

 

¨ Economic

 

 

The Action Plan has worked to reduce air pollution within the Rotorua Airshed. Improved air quality in the Airshed:

(1)       Improves the environment, and the mauri of the air

(2)       Improves the air the community breathes, which in turn improves their health

(3)       Is important to Māori as air is a taonga

(4)       Improves the economy due to decreased medical costs and lost productivity when people are unable to work due to respiratory or other air pollution related illness.

 

2.         Rotorua Air Quality Action Plan Review

2.1       History of the Action Plan

After the release of the original NESAQ in 2004, it became readily apparent that Rotorua would not meet the required standards. A Working Party and a Joint Committee were formed in 2006/2007 to create an Air Quality Action Plan to move the Rotorua Airshed into compliance with the NESAQ.

The Rotorua Air Quality Working Party was set up by Environment Bay of Plenty (now Bay of Plenty Regional Council). The group was made up of various community groups and organisations, including Toi Te Ora Public Health, Energy Options, NZ Home Heating Associate, Sustainable Living Group, Grey Power, Housing New Zealand, and representatives from Regional Council and Rotorua District Council (now Rotorua Lakes Council).

The role of the Working Party was to seek out and discover key information about technologies, alternatives and options that could be promoted into actions to achieve the purpose and aim of improving air quality in Rotorua, and document these into an effective Action Plan.

The Joint Committee was set up between Rotorua District Council and Environment Bay of Plenty to specifically address the air quality issue in Rotorua. Other members included the Ministry for the Environment and the District Health Board. The Joint Committee had decision making powers.

From discussions with councillors and the Working Party, staff drafted a suite of documents to present to the Joint Committee, which included a problem analysis, consequences analysis, options analysis, alternatives analysis, and the proposed Action Plan. The Action Plan was subsequently approved by the Joint Committee in 2008.

As their purpose had been fulfilled, the Rotorua Air Quality Working Party was dissolved in 2008.

However, after the NESAQ was amended in 2014, and to provide support for Plan Change 13 and the associated Bylaw revision, a reimagined Rotorua Air Quality Working Party (RAQWP) began in 2015.

The RAQWP as we know it today includes Bay of Plenty Regional Councillors, Rotorua Lakes Councillors, a Medical Officer of Health (Toi te Ora), and a representative from Kāinga Ora. Regional Council administer the working party.

The Rotorua Air Quality Working Party is not a decision-making body, as it promotes and pursues the reduction of all air emissions within the Rotorua Airshed that may cause adverse health effects by:

a) Reviewing the Rotorua Air Quality Rules;

b) Considering alignment between the Rotorua Air Quality Control Bylaw and rules;

c) Other associated mechanisms jointly agreed to; and

d) Communicating consistent messaging.

There is no set meeting frequency, and the members can collectively decide to disband the group at any time. Meetings are currently held on an as-needed basis.

2.2       Summary of the Action Plan Review

The Action Plan has been a resounding success. The combination of the regulatory and non-regulatory actions have all worked together to reduce the level of air pollution in the Rotorua Airshed. As a result of the actions, the Airshed has met the NESAQ target of only one exceedance of PM10 per year by 2020 and has maintained that in 2021.

As shown in the graph below, the number of exceedances of the air quality standard for PM10 has reduced dramatically since 2008. Additionally, you can see that the general concentrations of PM10 have also reduced, even during the usual winter-time highs.

The full review document is included as Attachment 2.

2.3       What worked well?

While all of the actions were needed to provide an all-encompassing approach to improving air quality in the Rotorua Airshed, there were some actions and approaches that worked particularly well, including:

·      Phasing in of solid fuel burner regulations, which gave the community time to adjust;

·      The combination of rules in the Bylaw and PC 13, to provide control over installation, removal and discharge (rather than just discharge through the Regional Plan);

·      Ensuring that financial incentives were available to support the rules and bridge the affordability barrier;

·      Regularly reviewing the incentives and developing new ones to better suit the community and provide a ‘whole of house’ response to ensure both clean heating and warm homes;

·      The technical review and Dust Management Plans project in Ngāpuna to reduce industrial emissions;

·      Collaboration and support from external partner agencies e.g. RLC, Kainga Ora, the DHB and EECA;

·      Regional Council internal inter-group support and participation (science, environmental data services, finance, policy and planning, compliance, consents, communications, communications and IT technical services).

2.4       What didn’t work so well?

Overall, it is considered that the Action Plan worked well, and the actions were broad enough to allow scope for modification to suit as more information came to light, or opportunities for collaboration arose (as outlined in the above section). However, any future Action Plan should consider:

·      The ability to accurately quantify the reductions/improvements for each of the actions (and whether this is necessary);

·      Regular reviews of the performance of the Action Plan as a whole (rather than just some of the individual actions); and

·      Whether a more meaningful goal would be to not only meet the NESAQ standards, but to then also maintain that for 5 years so the Airshed is no longer classified as ‘polluted’ under the NESAQ.

2.5       Where have we got to?

We went from being behind other regions in air quality, to being one of the innovative leaders in this area. There are still airsheds in NZ not meeting the NESAQ standards for PM10.

The Rotorua Airshed has now only had one exceedance in 2020 and none in 2021. So far in 2022, we have only had one exceedance of the PM10 standard.

The Rotorua Airshed has recently been extended to ensure that new areas of residential development around Rotorua are subject to the same rules as the rest of Rotorua and will not contribute significant amounts of particulate matter into the Airshed, undoing all the hard work the community has done over the last 15 years.

Despite the great levels of success we have had, we do need to consider next steps. This year we have already had one PM10 exceedance, and it was unexpectedly at the Moses Road monitoring station before the winter season, indicating the exceedance was caused by an industrial source rather than home heating. This therefore means any winter-time exceedance resulting from domestic home heating in Winter 2022 will tip the Airshed out of compliance with the NESAQ.

2.6       Where do we need to go now?

While the Airshed now meets the NESAQ standards, it must maintain this for five consecutive years to no longer be classified as ‘polluted’ under the NESAQ. This is important as it imposes stricter requirements for any air discharge consents being granted both within, and around the Airshed.

Additionally, at the same time as the Rotorua Airshed began meeting the NESAQ standards, Central Government signalled a review of the NESAQ. The main change proposed is a shift from monitoring the coarser particulate matter (PM10) to the finer particulate matter (PM2.5) in order to better protect human health. This is because the finer particulate matter can go past the nose, throat and upper airways, and be deposited deep in the lungs. These particles are now recognised by the Ministry for the Environment as having the highest health risk. The World Health Organization (WHO) now also recognises that air pollution is the single biggest environmental threat to human health.

Monitoring for PM2.5 in the Rotorua Airshed began in 2019 in anticipation for the proposed changes to the NESAQ. The monitoring indicates that the Airshed will not meet the proposed new PM2.5 limits (25µg/m3 daily average). This year alone, where we have had no winter-time PM10 exceedances, the Airshed has exceeded the proposed PM2.5 limit eight times (as at 5 August 2022). The chart below shows the PM levels experienced at the Edmund Road monitoring station in relation to the NESAQ PM10 limit and proposed PM2.5 limit[13]. It also shows the relationship between PM10 and PM2.5.

 

 

 

 

 

 

 

 

 

 

 

 

MfE had been holding off releasing the NESAQ amendments until the WHO guidelines and HAPINZ 3.0 report are released. The WHO Air Quality Guidelines (WHO-AQG) were released in September 2021, and the HAPINZ 3.0 report was released on 6th July 2022. Both of these reports have strongly stressed and reiterated the fact that there is no safe level of particulate matter, and that even at low levels it has harmful impacts to human health.

While we are still only in a position to speculate about what exactly the amended NESAQ will require, it is hard to imagine that there would be a move away from including PM2.5 as a contaminant standard to meet, and that MfE would include a higher standard than originally proposed (given that the WHO-AQG are lower than the originally proposed limit included in the draft NESAQ consultation document). The chart on the following page is a summary of the limits as set out in the WHO-AQG. The numbers highlighted in yellow in the chart are the current 24-hour limit for PM10 (included in the NESAQ) and the proposed 24-hour limit for PM2.5.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


From what we’ve seen so far, and what we believe is coming, we will need to undertake new policy work to deal with the proposed changes to the NESAQ. Work towards a new Action Plan seems like the best place to start.

Given the success of the current Action Plan, it is likely that a new Action Plan would be very similar, but updated based on the learnings, updated emissions inventory and modelling, and the specific new NESAQ standards and targets once released. It would also provide a potential template should there be the need for new airsheds in the region once the amended NESAQ is released. A new Action Plan will also help to signal to the community that we are on a new journey.

Accordingly, this report has put forward two matters for the Committee’s approval:

·      Approves the publication of the Action Plan Review document on the Bay of Plenty Regional Council website.

·      Approves preliminary policy work to begin for a new Rotorua Air Quality Action Plan.

3.         Considerations

3.1       Risks and Mitigations

3.1.1    Risks

As a core function of regional councils is controlling discharges of contaminants into air, the Regional Council will be required to mitigate the effects of the Rotorua Airshed not meeting the revised NESAQ.

Monitoring of PM2.5 in the Rotorua Airshed indicates that it will not meet the proposed NESAQ standards, nor the WHO-AQG (if embedded into the NESAQ). This is an identified risk for the Regional Council.

Not releasing a review of the Action Plan also poses a potential reputational risk, as the Action Plan stated that reviews would be undertaken. It is not considered that there is any risk to publishing the document on our website.

3.1.2    Mitigations

The publication of the Action Plan review document shows the community that we complete what we start, and tells the story of where we have been, and the success we have had in improving air quality in Rotorua. It also starts setting the scene for the next part of the journey that we will need to take.

Beyond the current implementation of the Rotorua Airshed Air Quality Compliance and Enforcement Plan, it is considered that a key part of mitigation will be the preparation of a new Action Plan for the Rotorua Airshed. It is not considered that there is any risk to beginning preliminary policy work towards this now, as despite the amended NESAQ not yet being released, there is enough confidence in the general direction that the amendments will take to make a start on potential policy and actions that may be required to meet the amended standards. Additionally, no resource beyond staff time is being sought at this point, which mitigates any financial risk.

3.2       Climate Change

No matter how it burns, a wood fire produces carbon dioxide. From the moment a tree is felled until a mature tree grows to take its place, the carbon released from the fire represents an addition of warming pollution to the atmosphere. There is a lag time for that carbon to be absorbed again by the growth of new trees. However, it is currently generally accepted that wood smoke has a relatively minor impact on climate change, and the focus continues to be more on human health.

The move to cleaner forms of heating such as heat pumps has the added benefit of providing air conditioning, which will be important for many people (such as young and elderly) in dealing with warming temperatures resulting from climate change.

3.3       Implications for Māori

In their recently released updated 2021 air quality guidelines, the WHO have stated that air pollution is the leading environmental health impact for humans. Māori are disproportionately impacted by negative health outcomes associated with air pollution. For example, according to a 2018 Ministry of Health report, Māori aged 5-34 years were almost twice as likely as non-Māori (in the same age group) to have been hospitalised for asthma. It is therefore of the utmost importance to ensure that air pollution is reduced as much as possible, to not further harm and disadvantage Māori in our community.

Additionally, as stated in the NESAQ User Guide:

 “Clean healthy air contributes to New Zealand’s quality of life – not only people’s health, but also the natural functioning and ‘beauty’ of the natural and physical environment” (MfE, 2007a). Air and air quality can be described as both a taonga and a part of traditional kaitiakitanga for Māori.”

Improvements to air quality not only improve human health, but also the mauri of air.

3.4       Community Engagement

 

Adobe Systems

INFORM

Whakamōhio

To provide affected communities with balanced and objective information to assist them in understanding the problems, alternatives and/or solutions.

 

3.5       Financial Implications

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

-   Unbudgeted work during the current financial year?

-   Unbudgeted work for any of the years remaining in the current Long Term Plan?

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.

4.         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 the Committee adopts the recommendations, the next steps are for staff to finalise the Action Plan Review document and make this available on the Bay of Plenty Regional Council website.

Staff will then begin preliminary policy work towards a new Action Plan for the Rotorua Airshed.

Our current understanding of the NESAQ amendments is that MfE were waiting on the release of the HAPINZ 3.0 report before they took the amendments any further. The HAPINZ 3.0 report was released on 6th July 2022, however no update has been provided on the NESAQ amendment. Until further direction from MfE is provided, we will continue to operate as business as usual with air quality monitoring and related work, expecting that at some time in late 2022/early 2023 there will likely be a lowering of current ambient air quality levels for pollutants and the introduction of PM2.5 as a contaminant that will be required to be monitored and reported on.

Staff will be attending the National Air Quality Working Group next month (September) at the Ministry for the Environment. It is expected that updated direction from MfE on the NESAQ amendments will be provided at this meeting.

An update to Council will be provided when the NESAQ is released, or when staff have better direction from MfE on the timing of the NESAQ amendments.

 

Attachments

Attachment 1 - Rotorua Air Quality Action Plan

Attachment 2 - Draft Rotorua Air Quality Action Plan Review Document  

 

 

 


Strategy and Policy Committee                                                                  18 August 2022

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Strategy and Policy Committee                                                                  18 August 2022

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Report To:

Strategy and Policy Committee

Meeting Date:

18 August 2022

Report Writer:

Jane Palmer, Senior Planner Climate Change; Katri Harmoinen, Transport Planner and Stephen Lamb, Environmental Strategy Manager

Report Authoriser:

Chris Ingle, General Manager, Integrated Catchments

Purpose:

To provide a high-level overview of the implications of the Emissions Reduction Plan for the Bay of Plenty region and Council

 

 

Overview of the Emissions Reduction Plan - Implications for the Bay of Plenty Regional Council

 

Executive Summary

The Government released Aotearoa New Zealand’s first Emissions Reduction Plan on 16 May, as required under the Climate Change Response Act 2002.

The Plan does not implement any policy or legislative changes but sets out various strategies to meet the first national emissions budget of 290 MtCO2e for the period 2022-2025, representing a 4% reduction over the current emissions trajectory. The key sectors of focus are transport, energy, industry, building and construction, agriculture and waste.

This report assesses implications for the Bay of Plenty economy and community and on Regional Council operations and services. There are few direct implications for Council in the near term, but a wider role in the Plan’s implementation may arise as further detail emerges from Central Government.

Maintaining an awareness of future implications and readiness to respond is important for Council, as the implementation of the ERP progresses.

 

 

Recommendations

That the Strategy and Policy Committee:

1       Receives the report, Overview of the Emissions Reduction Plan - Implications for the Bay of Plenty Regional Council.

 

1.         Introduction

The Government released Aotearoa New Zealand’s first Emissions Reduction Plan (ERP) on 16 May, as required under the Climate Change Response Act 2002 (CCRA). The Plan sets out various strategies to meet the first national emissions budget for the period 2022-2025.

This report provides a high-level overview of the implications of this Plan for the Bay of Plenty region, from both an economic and household perspective, and for the Bay of Plenty Regional Council, in relation to Council processes and the services it provides.

1.1       Legislative Framework

The Emissions Reduction Plan (ERP) is the first statutorily required plan under the Climate Change Response Act (CCRA) and takes into account the Climate Change Commission’s recommendations from May 2021. The Plan contains strategies, policies and actions for achieving Aotearoa New Zealand’s first emissions budget and sets a direction for emissions reductions in the second and third budget periods. The first emissions budget requires Aotearoa to reduce emissions by 11.5 megatonnes[14] of carbon dioxide equivalent (MtCO2e) between 2022 and 2025.

The Climate Change Commission has responsibility for monitoring and reporting progress towards the emissions budgets and the Plan, with the first monitoring report due in 2023.

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

We collaborate with others to maintain and improve our water resource for future generations.

Safe and Resilient Communities

We provide systems and information to increase understanding of natural hazard risks and climate change impacts.

A Vibrant Region

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

The Way We Work

We look to partnerships for best outcomes.

Climate Change is identified as one of the Council’s strategic challenges and is one of Council’s three impact areas. The national direction provided through the Emissions Reduction Plan will be felt across all the Community Outcomes across a range of actions and initiatives.

1.2.1    Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

High - Positive

þ Cultural

Medium - Positive

þ Social

Medium - Positive

þ Economic

Medium - Positive

 

Climate change is an established environmental, social, cultural and economic issue which has wide ranging effects on all aspects of our society. The transition to a low-emissions economy is a significant opportunity to improve our economic prosperity, lower the cost of living, restore nature, address inequality and improve living standards for all New Zealanders.

There is a strong emphasis on well-being throughout the ERP, which sees the transition to a low emissions economy as an opportunity to work together to improve wellbeing, become more productive, increase resilience and reduce inequality.

2.         Overview of the ERP

The Emissions Reduction Plan sets out the country’s first three carbon budgets (Figure 1) and details the actions required to meet the first emissions budget of 290 MtCO2e for 2022–25. This is estimated to require an additional reduction of 11.5 MtCO2e (4%) over the next four years, compared with how emissions are currently tracking.

Figure 1 Expected impact of the Emission Reduction Plan over the first three carbon budgets (ERP, p36)

The Plan has an overall vision of ‘A productive, sustainable and inclusive economy’ with three over-arching themes:

·      Empowering Māori

·      Equitable transition

·      Working with nature

The full ERP is 348 pages long with a separate document listing all the ERP actions also available. There are 292 separately identifiable actions and sub-actions spread over 15 categories, including seven key sectors: transport, energy and industry, building and construction, agriculture, forestry, waste and fluorinated gases. Local government is identified as a key stakeholder or partner in 109 actions, spread across all categories.

The ERP does not itself implement any policy or legislative changes but implementing the Plan will require further policy, funding and legislative changes that will directly impact on local government in terms of regulatory roles (now and post-RMA reform), and future strategic policy, funding and infrastructure decision-making.

The following sections outline some high-level implications of the ERP on the wider region – both businesses and households – and on specific aspects of Council operations and services.

3.         Implication of the ERP for the Bay of Plenty Region

3.1       Impacts for business and the economy

The policies and actions in the Emissions Reduction Plan are likely to affect all sectors of the Bay of Plenty regional economy. There is a parallel paper being presented to the Strategy and Policy Committee on “Overview of the implications of the Emissions Reduction Plan on the Bay of Plenty economy” that provides a more detailed assessment of the economic impacts of the ERP on five key industry sectors in the Bay of Plenty: Manufacturing, Construction, Transport, Agriculture and Forestry.

The key points from this paper to note here are:

·      The manufacturing, construction, transport, agriculture, and waste services sectors together account for 32% of Bay of Plenty GDP and contribute about 89% of the CO2-e emissions in the region, with agriculture responsible for about 53% of total regional emissions.

·      The investment required to enable the shift away from fossil fuels for industrial process heat change will encourage the uptake of funding initiatives designed to assist businesses. Several funding initiatives are outlined in Action 11.4.1 Decarbonise Aotearoa Industries.

·      The construction sector will be impacted by requirements to make buildings more energy efficient, and changes to reduce waste. Action 12.1.1 Progress regulatory change to reduce embodied emissions of new buildings, Action 12.2.1 Shift expectations and grow the market for low-emissions buildings, and Action 15.3.1 Support the building and construction sector to minimise waste through research and improved capability.

·      The Sustainable Fuels Obligation will impact businesses throughout New Zealand, potentially increasing the price of transport. Achieving the Sustainable Fuels Obligation would take seven plants of a similar size to New Zealand’s sole Biofuel plant, at Wiri (currently in hibernation), if the biofuel was to be produced in NZ, necessitating significant investment. Action 10.3.5 Implement the Sustainable Biofuels Obligation.

·      As the sector with the region’s largest contribution to total emissions, the Government’s decision on agricultural emissions pricing will have repercussions for the Bay of Plenty region. Action 13.1.1 An emissions pricing mechanism is developed, and agricultural emissions are priced by 1 January 2025.

·      Transforming New Zealand’s forestry sector to extract more value and provide wood-based biofuels has potential to increase employment and enable a higher skilled workforce. Action 14.4.1 Develop forestry and wood processing industry transformation plan (ITP).

Many of the industry sector-related policies and actions in the ERP are some distance away from delivery, however Bay of Plenty businesses across these sectors are already implementing projects and initiatives to reduce emissions.

3.2       Impacts for households and community

An analysis has been undertaken of the areas within the ERP that are likely to impact the most on households and individuals in the Bay of Plenty region (see Appendix 1). These areas are:

·      Equitable transition (Chapter 3).

·      Transport (Chapter 10).

·      Energy (Chapter 11).

·      Building and construction – energy efficiency aspects (Chapter 12).

·      Waste (Chapter 15).

The analysis cannot be in-depth at this point as the ERP’s actions are mostly high-level and provide direction only. Many of the ERP actions to reduce emissions will require new skills and capability in the workforce. Support in this area will assist people to make the most of opportunities to move into new areas of work

The ERP actions affecting households are mainly about changing behaviour through education, support, and subsidies. There will be costs associated with changes to reduce emissions, and as identified by the Climate Change Commission, many of these costs will be borne by low-income households, older people, people with disabilities, Māori and Pacifica households and people in more isolated communities. Despite the best intentions of Government to put actions in place to produce a more equitable outcome than would otherwise be the case, some communities and individuals will likely face greater costs.

Transport is a key area, as inevitably fossil fuel prices will increase, and people will seek low emission alternatives. People in smaller, more isolated communities may be more vulnerable because they will have fewer choices. Energy hardship is also a concern for households where affordability may become an issue. Council may have a role in advocating for those groups where transport disadvantage and energy hardship are likely.

While there are costs/impacts associated with other areas (such as waste or building/construction) these are likely to have less of an impact on households.

4.         Implications of the ERP for Regional Council

The main Regional Council operations impacted by the ERP are transport and urban form. Other impacts will relate to our work and RMA functions associated with the agriculture, forestry and waste sectors.

4.1       Transport and urban planning

4.1.1    Transport

The Transport sector currently emits around 16 MtCO2e per year, which accounts for around 17% of New Zealand’s gross greenhouse gas emissions. Initiatives within the Plan are expected to deliver savings of 1.7-1.9 MtCO2e per year, representing a 10.6-11.9% reduction for the sector.

Transport is a key area of focus in the ERP and includes multiple transport actions that are of relevance to the regional council.

Overall, Chapter 10, ‘Transport’ outlines the transport challenge and sets an ambitious 41% reduction target in transport emissions by 2035.

This reduction is to be achieved through focusing on three specific areas:  

1.  Reducing the reliance on cars and supporting people to walk, cycle and use public transport

2.  Rapidly adopting low-emission vehicles

3.  Begin work now to decarbonise heavy transport and freight

These focus areas are furthermore supported by four transport specific targets for 2035:

1.  Reduce total kilometres travelled by light vehicle fleet by 20%

2.  Increase zero-emissions vehicles to 30% of the light vehicle fleet

3.  Reduce emissions from freight transport by 35%

4.  Reduce the emissions intensity of transport fuel by 10%.

Out of the 78 transport specific actions outlined in the ERP, some of the key ones of relevance to the BOPRC include:

Focus area 1: Reducing the reliance on cars and supporting people to walk, cycle and use public transport

·      Action 10.1.2.A. Planning – design programmes to reduce total light fleet VKT in our largest cities.

Set sub-national VKT reduction targets for Aotearoa New Zealand’s major urban areas (Tier 1 and 2) by the end of 2022.

Develop VKT reduction programmes for Aotearoa New Zealand’s major urban areas (Tier 1 and 2) in partnership with local government, Māori and community representatives.

In the Bay of Plenty, the subregional VKT reduction targets and programmes will have implications especially for our major urban areas of Tauranga (Tier 1) and Rotorua (Tier 2).  

·      Action 10.1.2.B. Public transport – improve the reach, frequency and quality of public transport.

Deliver nationally integrated ticketing for public transport

Support a major uplift in all urban bus networks nationwide, including by improving bus driver terms and conditions.

Consider improvements to, and new opportunities for, interregional public transport services.

Identify and consider addressing barriers to integrating public transport with active and micro-mobility modes and networks.

·      Action 10.1.2.D Reshaping streets – accelerate widespread street changes to support public transport, active travel and placemaking.

Incentivise local government to quickly deliver bike/scooter networks, dedicated bus lanes, and walking improvements by reallocating street space (including during street renewals).

Consider regulatory changes to make it simpler and quicker to make street changes.

·      Action 10.1.2.F. Equity – improve access and travel choice for the transport disadvantaged.

Work with local government to deliver public transport, cycling and walking improvements in low socio-economic areas and for transport disadvantaged groups (including disabled people).

Work with local government to make public transport more affordable, with a particular focus on low-income users

·      Action 10.1.2.G. Investigate the potential for public transport, walking and cycling in rural and provincial areas.

Investigate the potential for public transport, shared services, walking and cycling in rural and provincial areas, particularly for the transport disadvantaged.

Investigate further opportunities to provide on-demand public transport in provincial towns, in light of positive signs from the MyWay trial in Timaru.

·      Action 10.1.3: Enable congestion charging and investigate other pricing and demand management tools to reduce transport emissions

Investigate additional pricing tools to reduce transport emissions (including parking pricing, VKT pricing and low-emissions zones).

·      Action 10.1.4: Require roadway expansion and investment in new highways to be consistent with transport targets

Establish a high threshold for new investment to expand roads, including new highway projects, if the expansion is inconsistent with emissions-reduction objectives.

Focus area 3: Begin work now to decarbonise heavy transport and freight

·      Action 10.3.2. Accelerate the decarbonisation of the public transport bus fleet

Require only zero-emissions public transport buses to be purchased by 2025, set a target to decarbonise the public transport bus fleet by 2035, and support regional councils to achieve these outcomes through additional funding,

Identify and remove barriers to decarbonising the public transport bus fleet through the Public Transport Operating Model review

A more detailed breakdown on the implications of the ERP on the transport sector will be provided to the Regional Transport Committee (RTC) on the 19th of September.

4.1.2    Urban planning

Land-use planning is central to determining the emissions reduction pathways outlined in the ERP, particularly to support the significant mode shift required within the transport system via meaningful changes in urban form. The ERP emphasises the need for greater integration of land-use and transport planning in order to achieve reductions in transport emissions. The Plan also highlights the important role for Councils in encouraging the use of nature-based solutions through the new planning system and enabling the development of renewable energy and associated infrastructure.

Chapter 7, ‘Planning and Infrastructure’, signals the key role the resource management reforms will play in achieving these emissions reductions through long-term strategic planning of urban and rural areas.

Under Action 7.1 Improve the resource management system to promote lower emissions and climate resilience, key initiatives include:

·      embed emissions reduction and climate adaptation into resource management frameworks (for example, the proposed Strategic Planning Act and Natural and Built Environments Act), including measures that help to achieve urban density that improves access to community amenities

·      develop direction on achieving climate outcomes in regional spatial strategies and plans via the proposed National Planning Framework – which will provide strategic and regulatory direction from central government on implementing the new resource management system under the proposed NBA, noting that these outcomes will be consistent with future emissions reduction plans

The exposure draft of the Natural Built and Environments Act (NBA) released last year included greenhouse gas emissions reductions (and the removal of greenhouse gas emissions) as environmental outcomes that must be addressed in the national planning framework which will be developed under the NBA. The spatial plans required under the Spatial Planning Act (SPA) will inform the planning and consenting decisions made under the NBA framework, but it is unclear how climate change considerations will be addressed.

Action 7.4 Improve the evidence base and tools for understanding and assessing urban development and infrastructure emissions includes initiatives that will support local government in understanding how land use planning and delivering infrastructure in our urban areas can reduce emissions under the NBA and SPA.

However, given the resource management legislation is still under development, there is a lack of clarity and specificity in the ERP around what will be required of local government. There are a number of issues still to be resolved, such as:

·      Until the new legislation comes into force, how do we ensure the Joint Spatial Plans and Future Development Plans respond to the overall direction of the ERP?

·      How do we align existing growth strategies with emissions reduction targets? For example, the UFTI ‘Connected Centres’ programme as it currently stands will result in an increase in vehicle kilometres travelled (VKT).

·      How do we deal with approved infrastructure that is aligned with the NPS for Urban Development but that may be contrary to the direction for emission reduction? 

·      How do we ensure increased urban density delivers good low emissions neighbourhoods?

 

Council may wish to work with our partners to understand these issues and where the current gaps lie, in light of the direction signalled by the ERP.

4.2       Policy and Planning

Amendments to sections 66 and 74 of the Resource Management Act 1991 (RMA) come into effect on 30 November 2022 and will require local authorities to “have regard to” the Emissions Reduction Plan when preparing or changing district and regional plans. This also has implications for our consenting processes (Section 4.3).

The only reference to these amendments in the ERP is under Action 7.1 Improve the resource management system to promote lower emissions and climate resilience which identifies a key initiative as being:

assess existing and emerging national direction under the Resource Management Act 1991 against the policy intent of the present emissions reduction plan to determine how to support local authorities in the interim.

No further detail is provided but given that our Regional Policy Statement (RPS) does not currently contain the policy framework to enable consideration of the ERP, an RPS change will be required to incorporate an appropriate RPS policy and objective to align with the ERP. At this stage, the timeframe for such a change is unclear.  

Transport and urban planning are a key focus of the ERP (Section 4.1), but provides little clarity in other policy and planning areas. The ERP does identify a role for the planning system to indirectly support emissions reductions in the agriculture sector:

For example, it can support whole-of-farm system assessment of emissions-mitigation scenarios and help to achieve freshwater and biodiversity outcomes via integrated farm planning.

Integrated farm plans are also highlighted in Chapter 4, ‘Working with Nature’, as a way to deliver climate, freshwater and biodiversity outcomes, with key programmes to help to deliver this being:

·      Integrated Farm Planning – This is designed to help farmers bring all their farm planning activities and requirements into one place, including those around greenhouse gas emissions and biodiversity

·      Freshwater Farm Plans – This could support farmers and growers to make decisions about nature-based solutions (such as riparian planting) through the lens of improving freshwater outcomes.

The Freshwater Farm Plan regulations are due to come into force in 2023, with an exposure draft expected in the next few months. Ultimately, it is anticipated that the Freshwater Farm Plans will be incorporated into Integrated Farm Planning, although there is currently no detail or timeline provided on this.

The ERP highlights the importance of the resource management reforms to ensure the new planning system encourages the use of nature-based solutions and avoid the adverse environmental impacts of engineered solutions, with a central role for local government:

Local government is uniquely placed to deliver nature-based solutions. Local councils are land and infrastructure owners, regulators and agencies responsible for implementing both climate and other environmental policy ‘on the ground’. This includes implementing the National Policy Statement for Freshwater Management 2020 and proposed National Policy Statement for Indigenous Biodiversity.

Policy 4 within the NPS for Freshwater Management, states that ‘freshwater is managed as an integrated part of New Zealand’s response to climate change’ and the ERP sets an expectation that the Essential Freshwater reforms will support emissions reductions, but there is no clarity around what this means in practice.

Local government (regional councils) will have a key role in the implementation of Essential Freshwater reforms, which includes regional councils administrating the regulatory Freshwater Farm Plans. In some cases, freshwater mitigations will have climate co-benefits, so the way local government carries out this function is an opportunity to support our climate goals

Overall, the high-level nature of the ERP initiatives and lack of specific actions means that in the near future, aside from transport and urban planning, the Plan will have little impact on Council work in the policy and planning area. Impacts should become clearer as policy evolves to support the ERP direction.

4.3       Consents

As highlighted in Section 4.2, the RMA Amendments that come into effect on 30 November 2022 will require local authorities to “have regard to” the Emissions Reduction Plan. In the context of decisions on resource consent applications, the Reduction Plan is a matter that a consent authority can have regard to under section 104(1)(c). In addition, regional councils may have regard to the effects of discharges into air of greenhouse gas emissions on climate change in making rules to control the discharges of GHGs and in considering an application for a discharge permit or coastal permit.

Under Action 11.4.1 Decarbonise Aotearoa industries, a key initiative refers to the forthcoming national direction intended to support councils to make nationally consistent decisions on GHG discharges when considering applications for air discharge permits:

Implement national direction for industrial greenhouse gas emissions in the third quarter of 2022 and ensure that this can be carried through to the National Planning Framework under the proposed Natural and Built Environments Act.

This national direction is still under development and only covers a small proportion of consents. There are number of wider issues that need to be resolved for other areas such as how to deal with activities that emit greenhouse gases but currently do not require a consent e.g. agriculture. This opens up potential litigation risks for Council if decisions have to be made in the absence of clear national direction.

It is expected that Government will be providing further guidance, e.g. a new emissions reduction national policy statement to elevate consideration of emissions reductions in the resource management decision-making hierarchy. Staff are involved with discussions on these issues through the Consent Managers Group and will continue to engage with central government in this area.

4.4       Agriculture and Forestry

The Agriculture sector currently emits around 41 MtCO2e per year, which accounts for around 50% of New Zealand’s gross greenhouse gas emissions. Initiatives within the Plan are expected to deliver savings of 0.3-2.7 MtCO2e per year, representing a 0.7-6.6% reduction for the sector.

Many of the ERP actions build off He Waka Eke Noa – Primary Sector Climate Action Partnership that was established in 2019. This has seen the Government work in partnership with the primary sector, Māori, farmers and growers on practical solutions to reduce agricultural emissions and build resilience to climate change.

A key task for this Partnership was to deliver advice on how to price agricultural emissions by 31 May 2022. As per Action 13.1.1 An emissions pricing mechanism is developed, and agricultural emissions are priced by 1 January 2025, the Government will make a decision on pricing agricultural emissions by the end of 2022, to enable implementation by 2025. This decision is central to determining the mechanisms to deliver emissions reduction in this sector.

Another area that will have significant implications for landowners is Action 13.1.2 All producers will have emissions reports by the end of 2022 and a farm plan in place by 2025. It is anticipated that this will form part of the ‘Integrated Farm Plans’, but as highlighted in Section 4.2 there is no detail or timeline provided on this. Council’s NPSFM implementation will interface with these farm plans.

Within the Forestry sector, the ERP actions are primarily focused on supporting afforestation and encouraging native forests, with Action 14.1.1 Ensure regulatory settings deliver the right type and scale of forests, in the right place through amendments to the New Zealand Emissions Trading Scheme (NZ ETS) and resource management settings. Council already implements the NES Plantation Forestry.

There are no specific ERP actions that have a direct impact on Council activities, the main focus being on efforts by industry and the Government. For Council, it is more the case that the actions identified for emissions reductions will support and enhance the work that Council does in other areas. For example, Action 13.3.1 Develop further climate-focused extension and advisory services; these services will complement Council’s work with landowners around biodiversity, water quality and freshwater outcomes.

Also of note is Action 5.5 Develop a voluntary carbon market framework which could help provide further incentives for native planting and wetland restoration, with associated biodiversity and water quality benefits. The Council’s Environmental Grants Policy is already set up to facilitate opportunities for landowners in this area.

Staff will continue to maintain a watching brief on the actions for these sectors, particularly in relation to any specific requirements or role for regional councils.

4.5       Waste

The Waste sector currently emits around 3.6 MtCO2e per year, which accounts for around 4% of New Zealand’s gross greenhouse gas emissions. Initiatives within the Plan are expected to deliver savings of 0.2-0.4 MtCO2e per year, representing a 6-11% reduction for the sector.

The Ministry for the Environment is currently developing a new Waste Strategy to address waste in Aotearoa which will be published in 2022. Alongside this, Aotearoa New Zealand’s waste legislation is currently being updated, with revisions likely to be enacted in 2024.

Within the ERP, there are 14 initiatives listed for the Waste sector, with local government identified as a key stakeholder in 13 of these, noting that this is primarily a territorial authority responsibility.

The regional council is the consenting authority for the discharge and potential re-capture of methane gas from municipal landfills and this role will be directly impacted by Action 15.5.1 Regulations will require all municipal (Class 1) landfills to have LFG capture systems by 31 December 2026.

Alongside this, there may be similar requirements applied to non-municipal (Classes 2 to 5) landfills that receive less organic waste, based on the findings from Action 15.5.2 Feasibility studies will determine the need for additional landfill gas capture requirements.

This relates to a wider issue around ongoing responsibility for closed landfills, which are required to have a consent for ongoing discharges (leachate, methane), which continue long after the landfill is closed. The updated legislation therefore needs to include closed landfills to ensure that these discharges are effectively monitored and managed.

Staff will continue to monitor national developments and provide input into the review of the Waste Management Act.

4.6       Māori partnerships

“Empowering Māori” is one of three over-arching themes in the Emissions Reduction Plan. Chapter 2 of the ERP is dedicated to this theme, with a strong emphasis on an equitable transition for Māori, which is integrated into actions throughout the Plan.

There are four specific actions around empowering Māori included in Chapter 2, with the foundation being Action 2.1 Establish a platform for Māori action.

One of the four actions, Action 2.3 Support development of a Māori climate strategy identifies local government as a key stakeholder. This proposed strategy and action plan will be developed over 2022-24 and will prioritise mātauranga Māori, barriers for the Māori economy and local iwi and hapū objectives and will cover both adaptation and mitigation.

There is no specific role identified for local government in the development of this strategy, but this will be a key area for staff to monitor and identify where it is appropriate for Council to be involved. Currently, Te Amorangi is encouraging a focus on climate change in the third generation of Iwi Management Plans, which aligns with this stronger focus on a Māori climate strategy at a national level.

“Equitable transition” is another of the three over-arching themes (Chapter 3) which is focused on ensuring every New Zealander has the means to transition to and benefit from a low carbon economy, with an emphasis on working in partnership with Māori. Local government is identified as a key stakeholder under this theme, essentially to support the regions to manage this transition, and the development of more productive, resilient, sustainable, inclusive and Māori-enabling regional economies. The funding that Council currently provides to support the work of Toi Kai Rawa is one way in which Council supports this kaupapa. 

4.7       Community Engagement and Communications

There are no specific actions relating to our Community Engagement and Communications activities, but these are both essential roles to supporting and facilitating behaviour change, which is a fundamental aspect to a wide range of initiatives within the ERP.

The forthcoming launch of the Future Fit carbon footprint tool for households and communities in the Bay of Plenty will put Council, and the region, in a good position to understand, encourage and support the behaviour change required across a range of areas. This tool will enable focused and inclusive behaviour change programmes and campaigns. This will be particularly important in the transport and urban planning space, where a significant shift is required.

4.8       Corporate and procurement

Whilst there are no specific ERP initiatives directed at local government in relation to corporate operations and procurement, the Carbon Neutral Government programme is a key driver at the national level. The programme aims for the public sector to achieve carbon neutrality by 2025 and is an indication of where local government may be expected to follow suit.

An example of where central government agency requirements could be used to guide Council processes is Action 6.11 Apply the Government’s Procurement Rules to reduce emissions. These rules prioritise:

·      transitioning the government fleet to electric vehicles

·      low-carbon options for new government buildings

·      purchasing low-emissions stationery/process heating systems

·      purchasing low-waste office supplies

These government procurement rules reinforce the work that Council already does in considering sustainable procurement and in transitioning the Council fleet to electric vehicles. More specifically, the ERP indicates that:

Local government will need to switch to low-emissions fuels and technologies for council-owned buildings and public facilities, and improve their energy efficiency

Council has already established a good foundation with the recently refurbished Council offices, and the Toitu certification provides the basis for continuing to improve energy efficiency within our buildings.

The ERP also indicates a key role for local government in the ‘Circular Economy and bioeconomy’ (Chapter 9):

Local government is a key player in moving to circular economy. Councils have a role to play in … using procurement to design out waste and reuse resources in infrastructure building (eg, concrete). They will need to work with businesses to encourage them to move to circular business models and co-locate to form circular hubs. The circular economy and bioeconomy will need to be well coordinated for success – local governments are well-placed to do this at a local level.

The Government plans to develop a circular economy and bioeconomy strategy (Action 9.1), with a move to a ‘circular public sector’ (Action 9.1.1). This will most likely flow down to local government through Action 9.3 Integrate circular practices across government, communities and businesses.

Council currently does consider end of life/disposal opportunities in some instances (e.g. end of life uniforms being passed on for recycling), but there is scope to expand these considerations and support our suppliers in exploring circular economy models.

4.9       Financial and corporate planning

Chapter 6 of the ERP deals with ‘Funding and finance’ and there are two areas of note for Council. Firstly, the introductory text states:

Local government is responsible for funding and financing local projects, including infrastructure. Councils will need to ensure that their investments and spending align with climate objectives.

Whilst there is no specific action or initiative associated with this statement, it provides a strong signal to local government that climate change considerations need to be firmly embedded in funding and financing decisions.

Council already recognises the importance of climate change as one of its three impact areas and has a process in place to assess and prioritise new investments against Council’s three impact areas as well as the Community Outcomes. This process will be developed further for the next Long Term Plan.

Under Action 6.6 Support investor decisions through world-first climate reporting legislation, a key initiative to note is:

Explore the extension of the mandatory climate-related disclosure regime to cover a broader range of activities, for example, public entities at national and local levels.

Currently Quayside is required to comply with the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 and publish disclosures for financial years commencing in 2023, subject to the publication of climate standards from the External Reporting Board (XRB). The aim of this legislation is to ensure that the effects of climate change are routinely considered in business, investment, lending and insurance decisions.   

Considerations

4.10    Risks and Mitigations

Trends suggest that litigation related to climate change is on the rise in Aotearoa, illustrated by cases such as the judicial review brought against Auckland Transport, Auckland Council and the Auckland Regional Land Transport Committee alleging that they failed to adequately take climate change considerations into account when adopting the RLTP. Also the judicial review of the Climate Change Commission advice by Lawyers for Climate Action New Zealand.

The Commission must report on the adequacy of the ERP and its progress.  In order to do so it may request information on the steps being taken by Council to give effect to the ERP and reduce emissions and may elect to reflect this in its reporting. The public may also seek this information from Council under the Local Government Official Information and Meetings Act. 

 

4.11    Climate Change

 

Mitigation

Adaptation

Reduce GHG emissions

Produce GHG emissions

Sequester carbon

Anticipate climate change impacts

Respond to climate change impacts

The Emissions Reduction Plan sets out a range of initiatives to reduce greenhouse gas emissions and sequester carbon that local government may be involved in developing and delivering. The Plan also notes the linkages and synergies between emissions reduction and adaptation actions and looks to ensure these opportunities are realised.

Most of the actions and initiatives within the Plan require further development before it would be possible to quantify the specific impacts on the region’s greenhouse gas emissions.

4.12    Implications for Māori

The Emissions Reduction Plan specifically addresses issues and challenges for Māori in relation to emissions reductions and the climate transition, with ‘Empowering Māori’ as one of the key over-arching themes of the Plan.

Council will ensure implementation of the Plan in Toi Moana involves tangata whenua across our region, recognising their capacity to engage on this and other current issues, and ensure that opportunities for Māori in relation to climate change are available.  

4.13    Community Engagement

 

Engagement with the community is not required as the report is for information only

 

4.14    Financial Implications

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

5.         Next Steps

There are few direct implications for Council in the near term from the strategies and initiatives outlined in the ERP. It is envisaged that local government decision-makers will have a greater role in ERP implementation as further detail emerges. Our readiness to respond will be important for Council as the implementation of the ERP progresses.

Staff will continue to monitor and assess progress on the actions and initiatives identified within the Emissions Reduction Plan and their implications across Council and will report back to Council as appropriate.  

 

Attachments

Attachment 1 - Emissions Reduction Plan - impact on BOP communities and households  

 


Strategy and Policy Committee                                                                  18 August 2022

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Report To:

Strategy and Policy Committee

Meeting Date:

18 August 2022

Report Writer:

Dean Howie, Programme Manager - Regional Economic Development

Report Authoriser:

Namouta Poutasi, General Manager, Strategy & Science

Purpose:

To provide a high-level overview of the implications of the Emissions Reduction Plan on the Bay of Plenty economy

 

 

Overview of the Emissions Reduction Plan - Implications on the regional economy

 

Executive Summary

The Government released Aotearoa New Zealand’s first Emissions Reduction Plan (ERP) in May 2022, as required under the Climate Change Response Act 2002 (CCRA). The ERP sets out various strategies to meet the first national emissions budget of 290 MtCO2e for the period 2022-2025.

This report provides a high-level assessment of the impacts of the various strategies and initiatives outlined in the ERP on five key sectors of the Bay of Plenty economy: manufacturing, construction, transport, agriculture and forestry. Many of the policies and actions in the ERP are some distance away from delivery however Bay of Plenty businesses across these sectors are already implementing projects and initiatives to reduce emissions.

 

Recommendations

That the Strategy and Policy Committee:

1.    Receives the report, Overview of the Emissions Reduction Plan - Implications on the regional economy.

 

1.         Introduction

Following the release of Aotearoa New Zealand’s first Emissions Reduction Plan (ERP) in May 2022, the Bay of Connections commissioned Ecometric Consulting Limited to prepare a report that identifies policies and actions in the ERP that are likely to affect sectors of the Bay of Plenty regional economy. The Ecometric report is intended to be high level.

This report to Strategy and Policy Committee is focused on five key industry sectors in the Bay of Plenty and the corresponding actions and initiatives outlined in the ERP: Manufacturing, Construction, Transport, Agriculture and Forestry.

Although emissions pricing and the New Zealand Emissions Trading Scheme (NZ ETS) will impact individual businesses, acting as an incentive for behaviour change and a disincentive to emit, this report takes an industry sector approach to understand the impact of the non-ETS actions on the wider regional economy.

Emissions information provided in this report is based on the 2019 Emissions Inventory (Stats NZ 2022), and regional and district GDP and employment data is based on the 2019-20 year, provided by Infometrics.

1.1       Legislative Framework

The Emissions Reduction Plan (ERP) is the first statutorily required plan under the Climate Change Response Act (CCRA). The Plan contains strategies, policies and actions for achieving Aotearoa New Zealand’s first emissions budget and sets a direction for emissions reductions in the second and third budget periods.

The Climate Change Commission has responsibility for monitoring and reporting progress towards the emissions budgets and the Plan, with the first monitoring report due in 2023.

1.2       Alignment with Strategic Framework

 

A Vibrant Region

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

The Way We Work

We look to partnerships for best outcomes.

Accelerating the progression towards a low carbon economy is a key focus area of the Bay of Connections, in line with Council’s strategic priority and impact area of Climate Change.

1.2.1    Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Low - Positive

¨ Cultural

 

¨ Social

 

þ Economic

Low - Positive

 

The progression to a low emissions economy provides a significant opportunity to improve our region’s economic prosperity, utilise technology to improve productivity, enable development of a high-skilled workforce, increase resilience and reduce inequality.

Many of the policies and actions in the ERP are some distance away from delivery, timewise, limiting any immediate impact of the ERP on the regional economy. Longer term, the positive impacts on the environment and economy resulting from ERP actions are expected to be more pronounced.

2.         Implications of the ERP on the Bay of Plenty Economy

2.1       The BOP economy – key sectors and emissions profile

The manufacturing, construction, transport, agriculture, and waste services sectors together account for 32% of Bay of Plenty GDP and contribute about 89% of the CO2-e emissions in the region, with agriculture responsible for about 53% of total regional emissions. The transport and waste sectors provide services across sectors, including the low emissions sectors such as health care and social assistance, and professional scientific and technical services.

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Figure 1: Largest sectors of the Bay of Plenty economy (2019-20) and their contribution to CO2-e emissions

The Bay of Plenty offers a comparative advantage to some industry sectors through its temperate climate, location close to the large populations of Auckland and Hamilton, access to a diverse transport network including road, rail, air and water, and proximity to a major port for imports and exports. 

Other advantages include ready access to renewable energy, including geothermal, providing process heat for manufacturing activities such as pulp and paper and wood processing, which in turn lead to the establishment of supporting activities such as machinery manufacture.

In addition, several emissions reduction projects and initiatives are underway in the Bay of Plenty, including hydrogen use for heavy transport, manufacture of engineered timber for use in mid-rise construction, and resource recovery for construction and demolition waste, outlined in the relevant sections below.

2.2       Implications for key sectors of the BOP economy

2.2.1    Manufacturing

Manufacturing is the largest and most diverse sector in the New Zealand economy. In the Bay of Plenty, manufacturing contributed $1,568m (9.1%) to regional GDP and provided 15,000 jobs in the year to March 2020.  The most prominent manufacturing activities in the region are Machinery and other equipment, Wood product, Pulp and paper product, and Fruit, cereal and other food.

Dependence of manufacturing varies across the region. Kawerau has the largest manufacturing sector at 44% of GDP, mostly from pulp and paper products (31.9%) and wood products (6.8%), Opotiki the smallest at 3.1% of district GDP.

Manufacturing activities differ in their emissions intensity, the most significant activities in the Bay of Plenty in terms of CO2-e emissions are:

·      Chemical and chemical product manufacturing, contributing 50-99 kt CO2-e annually, and 8% of the manufacturing GDP in the region. Fertiliser manufacture is about half this sector, occurring mostly in Tauranga, Rotorua, Western Bay and Opotiki.

·      Dairy product manufacturing, contributing 50-99 kt CO2-e annually, makes up less than 1% of the manufacturing GDP in the region, occurring mostly in Taupō and Rotorua.

·      Pulp, paper and converted paper product manufacturing, contributing 20-49 ktCO2-e annually, makes up 11% of the manufacturing GDP in the region, occurring mostly in Kawerau and Whakatāne.

Geothermal resources used in pulp and paper manufacture in the region assist in keeping manufacturing emissions relatively low, and the increased use of forestry waste (biomass) in heating processes will further reduce emissions in the manufacturing sector.

The main action in the ERP affecting the manufacturing sector will be the shift away from fossil fuels for process heat. The investment required to enact change will encourage the uptake of funding initiatives designed to assist businesses. Several funding initiatives are outlined in ERP Action 11.4.1 Decarbonise Aotearoa Industries, key activities within that action include:

·      Expansion and ongoing roll-out of the Government Investment Decarbonisation Industry (GIDI) Fund to switch fossil fuel use to low emissions renewable fuels.

·      Manage the phase-out of fossil gas through a gas transition plan by the end of 2023.

·      Update of industrial allocation policy to remove over-allocation of NZUs to industry (Action 5.4.1). Policy decisions are due mid-2022, with a legislative Bill late in 2022.

·      Implementing the Advanced Manufacturing Industry Transformation Plan by the end of 2022, which is to grow the sector using modern technologies, processes and practices.

To date, the Bay of Plenty region has received $6.1m in GIDI grants for three projects, resulting in a 576,300-tonne lifetime carbon abatement (EECA, 2022). The organisations receiving funding are:

·      Essity Australasia $1.650m - to allow fuel switching from natural gas to renewable geothermal steam. The estimated lifetime carbon abatement was 136,600 tonnes.

·      Whakatane Mill $4.0m - to instal equipment that improves throughput without additional coal /gas usage. The estimated lifetime carbon abatement was 406,440 tonnes.

·      Winstone Wallboards Ltd $0.5m - to install 3.4MW of electric heating equipment to utilise solar-generated electricity to displace gas in the main production process. The estimated lifetime carbon abatement was 33,250 tonnes.

2.2.2    Construction

Construction comprised 8.2% of the Bay of Plenty economy, contributing $1.46bn to regional GDP and providing nearly 17,000 jobs. It has been a high growth sector in recent years and is important across the region, ranging from 9.6% of Tauranga’s GDP to 5.4% of Whakatane’s GDP (2019-20).

The construction sector is a significant contributor to the Bay of Plenty’s emissions, contributing 20-49 kt CO2-e annually.

The ERP takes a lifecycle approach to construction. While the Emissions Inventory is based on production, the ERP focuses on operational emissions (e.g. electricity expenses throughout the life of the building) and embodied emissions (construction and deconstruction). The building and construction sector reduction is estimated to be 0.9-1.7 Mt CO2-e in the first budget period (2022-2025).

The construction sector will be impacted by requirements to make buildings more energy efficient, and changes to reduce waste.

·      MBIE is consulting on the 2022 Building Code update, which has changes to insulation requirements. In late 2022, consultation will commence on introducing ‘whole-of-life’ embodied carbon requirements into the Building Code (Action 12.1.1 Progress regulatory change to reduce embodied emissions of new buildings).

·      Adopt and mainstream new manufacturing and construction processes, technologies, building designs, materials, and products to reduce building-related emissions and increase affordability and competitiveness (Action 12.2.1 Shift expectations and grow the market for low-emissions buildings).

·      Within the ERP’s Waste chapter, Action 15.3.1 Support the building and construction sector to minimise waste through research and improved capability requires the construction sector to reduce and divert demolition waste to beneficial uses. This action is still being researched and scoped.

The Bay of Plenty is well placed to become a leader in low carbon construction with Te Uru Rākau  New Zealand Forest Service (MPI), crown research institute Scion, the Timber Design Centre and several manufacturers of engineered timber located in Rotorua. Early examples of engineered timber construction include Scion’s Te Whare Nui o Tuteata building, which will store approximately 418 tonnes of CO2-e over its lifespan, and Tauranga City Council’s new office building, which will be the largest mass timber office building in New Zealand, targeting a net zero carbon footprint for the building’s construction process.

Of relevance to industry is the action to reduce and divert construction and demolition waste to beneficial uses (repurposing). The Government anticipates that higher material costs will provide an incentive to reduce, reuse and recycle key materials however if these costs can be passed on to customers during periods of high demand, the incentive may be weak.

Waste actions are at early stages:

·      The Ministry for the Environment is currently scoping (with MBIE) cost effective and safe solutions for dealing with construction and demolition waste (Action 15.3.1), looking at expanding the waste disposal levy to construction and demolition landfills (mid-2022) (Action 15.3.2 Invest in sorting and processing infrastructure for construction and demolition waste), and exploring how regulations could be used to introduce obligations for sorting waste, particularly wood waste (Action 15.3.3 Enable the separation of construction and demolition materials).

In the Bay of Plenty, initiatives already underway to repurpose construction and demolition waste in the region include:

·      Te Maunga Transfer Station is being upgraded after a $20.5m grant from MfE to provide waste infrastructure and reduce the waste going to landfill. The upgrade includes plans for a construction and demolition recovery plant.

·      Community Resource Whakatane (CReW) provide a recycling service for a range of unwanted goods – including unwanted building materials.

2.2.3    Transport, postal and warehousing

The transport, postal and warehousing sector contributed $912.1m (5.2%) to regional GDP in 2019-20. In the Bay of Plenty, the sector is larger than the national average because of the activities associated with the Port of Tauranga.

Transport activities make a significant contribution to CO2-e emissions in the Bay of Plenty region, with Road transport contributing 50-99 ktCO2-e annually, Rail transport 20-49ktCO2-e, Water transport (50-99ktCO2-e), and Air and space transport (20-49ktCO2-e). Postal, courier and warehousing services as a single sector do not make a sufficiently large contribution to emissions to be singled out.

New Zealand is highly dependent on road transport to shift freight; heavy vehicles, mostly large trucks, emit nearly 25% of New Zealand’s transport emissions.

The transport sector reduction nationally is estimated to be 1.7 to 1.9 Mt CO2-e in the first budget period (2022-2025).

The main actions in the ERP are:

·      Implementation of the Sustainable Biofuels Obligation (Action 10.3.5). Consultation is currently underway to determine the detail, including the start date - 1 January 2023, or 1 January 2024.

·      Support the decarbonisation of freight (Action 10.3.1), including initiatives to develop a national freight and supply chain strategy with industry, direct support to the freight sector through funding and research, and potentially through regulation.

·      Creating a higher threshold for new roading expansion with a requirement to show how the expansion will reduce emissions (Action 10.1.4 Require roadway expansion and investment in new highways to be consistent with transport targets). 

·      Supporting the rollout of electric vehicle (EV) charging infrastructure (Action 10.2.3), occurring alongside encouraging uptake of EVs (Action 10.2.1 Accelerate the uptake of low-emission vehicles).

·    A proposal to restore the rail network and invest in coastal shipping. The investment in the existing and new rail infrastructure is expected to take 10-15 years (Action 10.3.1).

The Sustainable Fuels Obligation will impact businesses throughout New Zealand, potentially increasing the price of transport. Biofuel currently sold in New Zealand is imported from Australia, low carbon fuels are more expensive than fossil fuels. New Zealand has just one Biofuel plant at Wiri, currently in hibernation because of lack of demand for biofuel. Achieving the Sustainable Fuels Obligation would take seven plants of a similar size to the Wiri plant if the biofuel was to be produced in NZ, necessitating significant investment.

Hydrogen for heavy transport

In 2022 Hiringa Energy, will set up the first four refuelling stations, located in Hamilton, Palmerston North, Auckland, and Tauranga – key North Island freight routes. By 2026 Hiringa Energy will have a further 20 fuelling stations throughout New Zealand.

Hiringa Energy anticipates providing hydrogen to other sectors, including aviation, manufacturing, shipping, construction and off-road equipment, materials handling and stationary heat and power.

Roading

The action to create a higher threshold for new roading expansion with a requirement to show how the expansion will reduce emissions may stop or slow roading work, creating congestion, and increasing costs. In the Bay of Plenty, with high growth and a high volume of transport, this, along with increasing ETS costs, is likely to encourage more rail freight, assuming there is capacity for that mode.

Climate Change is a strategic priority in the Government Policy Statement on Land Transport 2021/22-2030/31, and investment decisions must support the rapid transition to a low carbon transport system.

Coastal shipping

The signal to invest in coastal shipping has attracted Maersk to instigate coastal shipping with two vessels operating between ports in the North and South Islands. One of the services would link Auckland, Tauranga, Timaru, and Lyttelton, while the other would link Nelson, Tauranga, Timaru and Lyttelton. The coastal ships are expected to start visiting the Port of Tauranga from the end of September.

Rail network

The Kawerau to Tauranga rail network received a boost from the Provincial Growth Fund in 2020, with $19.9m provided for infrastructure to develop an industrial hub in Kawerau. The funding included $9.6m for the Kawerau Container Terminal, which was estimated to remove 40 daily truck trips and reduce CO2 emissions. The terminal will enable businesses to store produce for export, which will be transported by rail to the Port of Tauranga.

Improvements in rail freight in the Bay of Plenty would be particularly advantageous in terms of reducing current and future CO2 emissions in the Region. In 2019, all 141m trays of kiwifruit produced in the region were transported by road. The projected expansion of kiwifruit production will be accompanied by significantly increased transport requirements. Rail infrastructure will assist emerging industry in the Eastern Bay of Plenty, such as horticulture and aquaculture, to get produce to the Port of Tauranga.

2.2.4    Agriculture

In 2019-2020, the Bay of Plenty the agriculture sector contributed $794.6m (4.7%) to regional GDP, and 8,000 jobs, predominantly through Dairy cattle farming and Horticulture and fruit growing.

Agricultural activities are significant CO2-e emitters in the Bay of Plenty region. Dairy cattle farming (46% of the region’s agricultural GDP) and sheep, beef cattle and grain farming (10% of agricultural GDP) emit 1,323 kt CO2-e annually. In contrast, Horticulture and fruit growing (40% of the agricultural GDP) emits 151 ktCO2-e annually.

The mix of agriculture is changing across the region: Dairy cattle numbers have reduced by 6.5% in the five years to 2021, and in Opotiki horticulture has grown from 5.5% of district GDP in 2010 to 8.9% in 2020. Over the same period dairy farming has gone from 9.9% to 5.5%.

ERP Actions to achieve the targeted reductions in the first budget period include:

·      Development of an emissions pricing mechanism for agricultural emissions by 2025 (Action 13.1.1). Ministers will assess the He Waka Eke Noa recommendation (based on a split-gas levy) alongside the legislated backstop to bring agriculture into the NZ ETS.  He Waka Eke Noa delivered their final recommendations to Government on 31 May 2022.

·      Research, education and advice to farmers (Action 13.2.1 Strengthen the role of research and development to get mitigations to producers sooner). This is designed to speed up development of new technologies and make them available to farmers.

·      Emissions reporting by producers by the end of 2022 (Action 13.1.2 All producers will have emissions reports by the end of 2022 and a farm plan in place by 2025).

As the sector with the region’s largest contribution to total emissions, the Government’s decision about agriculture and the NZ ETS will have repercussions for the Bay of Plenty region.

Options to reduce agricultural emissions will include reducing herd size, changing practices such as fertiliser application, and on farm sequestration with suitable protection and plantings. Horticulture is well-established in the Bay of Plenty and offers an option for lower-emissions land use, which could be a strong driver when agriculture is included in the NZ ETS.

2.2.5    Forestry

In the Bay of Plenty the forestry sector contributes about $303.3m (1.7%) to regional GDP and 800 jobs. In the Rotorua and Taupo districts, the forestry and logging sector makes up $170.9 (4.3%) and $108.5m (4.2%) of the district economies respectively. In Opotiki, the contribution at $20m is 5.0% of the district GDP, making it an important sector in that economy.

Overall, forestry is a positive in terms of emissions, but planting forests only serves as a temporary solution to emissions while New Zealand finds other ways to permanently reduce emissions. The Government sees forests as continuing to play a critical role as a carbon sink, and potentially providing other benefits including contribution to biodiversity (i.e. native forest), providing sustainable building materials, and providing inputs into the bioeconomy.

In forestry, changes signalled in the ERP tend to be focused on reducing impediments to growing a wider range of trees, and providing support through research, planning and advice:

·      Consideration of changes to the NZ ETS to support a ‘better mix of forestry type (Action 14.1.1 Ensure regulatory settings deliver the right type and scale of forests, in the right place). This is expected to be consulted on in late 2022 or early 2023.

·      Continuing support for Crown Forestry joint ventures and the Hill Country Erosion Programme (Action 14.1.2 Support landowners and others to undertake afforestation). The One Billion Trees Fund and Erosion Control Funding Programme have no new funding although planting continues.

·      Updating the NZ ETS yield tables to encourage the planting of indigenous species (Action 14.2.1).

·      Transforming New Zealand’s forestry sector to get more value from the sector and provide wood-based biofuels (Action 14.4.1 Develop forestry and wood processing industry transformation plan (ITP)).

In the Bay of Plenty access to plantation forestry is an advantage to the pulp and paper manufacturing and wood products sectors, established in Rotorua, Kawerau, Whakatane and Taupo.  Actions in other areas of the ERP, such as to encourage the use of biomass in process heat, could add value to production forestry in the region, and could encourage land use change to forestry.

Cross-laminated timber (beams, rafters, posts) is a developing sector of wood products manufacturing. In relation to this, Action 14.4.1 is to move forward planning to transform New Zealand’s forestry sector to extract more value from the sector and provide wood-based biofuels. If successful, this action would increase employment and result in a higher skilled workforce.

3.         Considerations

3.1       Risks and Mitigations

This report is limited to key industry sectors of the regional economy and not Council operations. Risks may arise if Council operations or decision making intersects with the industry sectors and associated ERP actions.

Consideration for climate change is mandatory in reporting to Council, to enable informed decision making.

 

3.2       Climate Change

 

Mitigation

Adaptation

Reduce GHG emissions

Produce GHG emissions

Sequester carbon

Anticipate climate change impacts

Respond to climate change impacts

The Emissions Reduction Plan sets out a range of initiatives to reduce greenhouse gas emissions and sequester carbon.

Most of the actions and initiatives within the Plan require further development and/or implementation before it would be possible to quantify the specific impacts on the region.

3.3       Implications for Māori

The Emissions Reduction Plan specifically addresses issues and challenges for Māori in relation to emissions reductions and the climate transition, with ‘Empowering Māori’ as one of the key over-arching themes of the Plan. Those actions are centred on establishing a platform for Māori climate action, embedding partnership and representation, supporting development of a Māori climate strategy and activating kaupapa Māori, tangata Māori solutions.

This report is limited to key sectors of the regional economy, in which Māori and Māori business owners play a key role. Within the key sectors outlined above, Māori make up approximately 10% of employment in Construction, Manufacturing and Agriculture, Forestry and Fishing, and just over 5% in Transport Postal and Warehousing.

3.4       Community Engagement

 

Engagement with the community is not required as the report is for information only.

 

3.5       Financial Implications

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

4.         Next Steps

Many of the policies and actions in the Emissions Reduction Plan are still in the planning phase or some distance away from delivery however visibility of those actions is helpful to reconfirm Bay of Connections’ existing work programme and identify further opportunities for sustainable development.

Bay of Connections is progressing a work programme centred on accelerating the region’s progression towards a low carbon and circular economy, including facilitating industry connections to enable decarbonisation of industry processes and operations, and providing thought leadership and advocacy on alternative energy (including biofuels) and the circular economy.

Bay of Connections encourages collaboration across the wider Bay of Plenty and will link in with relevant stakeholders to ensure ERP actions and implications are communicated so that solutions can be woven into workstreams, such as workforce development.

Staff will continue to monitor progress on the actions and initiatives identified within the Emissions Reduction Plan and their implications and will report back to Council as appropriate.  

 

 



[1] Regional Biodiversity Monitoring Report

[2] NPSIB Exposure draft summary

[3] NPSIB draft implementation plan

[4] Legislation mandating other agencies to protect biodiversity

[5] BOPRC recently submitted the NPSIB should apply to the coastal marine area (CMA) if the National Policy Statement for Freshwater Management does not.  The NPSIB is the more appropriate national policy statement to contain policy direction on vegetation in the CMA, as opposed to the NPSFM which is focussed on freshwater outcomes.

[6] The Exposure draft requires that a suitably qualified ecologist confirms whether existing SNAS meet the criteria under this NPSIB. All territorial authorities except Ōpōtiki (and Rotorua Lake Zone A) have scheduled SNAs. Note Ōpōtiki has mapped its SNAs. The mapping of SNAs in some district is now very old and was based on aerial imagery that was not very clear. The SNA layers for some districts (Rotorua and Whakatāne) are now a merge of new and old SNA sites. Ideally SNA layers for all TAs would be updated using recent aerial photography to meet a minimum standard.

[7] Clarkson, B. 2022, Reversing Biodiversity

[8] Aotearoa New Zealand's National Adaptation Plan

[9] NPSIB Summary for iwi/Maori

[10] Source: NPSIB Exposure draft summary

[11] Solid fuel burner – any device that is capable of burning wood, coal, or pellets.

[12] The targets were revised in the 2011 amendment to the NESAQ and remained unchanged in the 2014 and 2017 versions. The 2020 version removed the transitional timeframes, leaving only the final target as shown in the table.

[13] The data has only been quality assured up to 1 July 2022, and all data since is still raw operational data, which could change slightly during processing. It is also noted that there was an instrument fault in June meaning there is a large portion of missing data in that month.

[14] Compared to the baseline projected trend line for emissions.