Sustainable Business Weekly Qld Edition [the water blame game]

In the course of the Millenium drought (2002-2009), the Labor Government spent $7b on a water grid & water purification & recycling infrastructure.

This infrastructure included the Bundamba Advanced Water Treatment Plant, designed to produce "Purified Recycled" Water from tertiary treated sewage effluent.

Currently, the Bundamba Advanced Water Treatment Plant provides a little bit of water to local industry, Swanbank Power Station and Springfield township. During the Drought it also supplied water to Tarong Power Station. Since 2011, Tarong has water to spare from its own catchment.

Neither the ALP or the LNP have any plans to utilise the idle water recycling infrastructure & stop the Councils or Council owned Utilities from discharging sewage effluent into the Rivers & Moreton Bay.

It is cheaper, more environmentally sound & climate friendly to recycle waste water than it is to desalinate sea water.

In the process of recycling water, one could recover the nutrients (Nitrogen, Phosphorus, Potassium, etc....) that are currently polluting the waterways. These nutrients could be used beneficially in agriculture.

In the light of this, let us have a closer look at the Liberal National Party's Water Policy. The LNP claim that Queenslanders are facing spiraling costs of living and family budgets are under severe strain because Labor can't get the basics right. The LNP Claim that there is no forward planning, Perhaps they have not read the South East Qld Water Strategy ....or perhaps they have, since the LNP Strategy looks very similar.

The South East Queensland Water Strategy was released on 15 July 2010. The Strategy is a long-term blueprint for ensuring a sustainable, efficient and secure water supply for South East Queensland (SEQ) into the future.

Granted there were some panic decisions by the Qld State Labor Government caused the South East Queensland Water Grid to be undertaken without adequate planning.

The water grid itself was never a great idea but given the circumstances (Water Supply Dams running empty), it was part of the policy of being seen to be doing something.....

To be fair much of the planning for the Western Corridor water recycling scheme was undertaken by Ipswich Water and adopted by the State Government in a knee jerk response to 7 years of consecutive drought.

This led to the a $7 billion price tag for the Water Grid....At least $600 million was wasted on the failed Traveston Crossing Dam (there is no argument with that).

The $1.1 billion for the Tugun desalination plant was probably money well spent. Desalination is an expensive option but it does provide SEQ with a level of water security that a dam cannot ensure. All other capital cities have gone for similar options.

Another $350 million Wyaralong Dam is not connected to the water grid.

There is no basis for the LNP's claim that South-East Queensland water bills are set to double over the next seven years. Prices have been capped to a maximum rise linked to the Consumer Price Index.

In fact: In the last 18 months, Queensland Urban Utilities reduced prices in four of their five service territories and improved network performance.

Under pressure from the LNP & Gold Coast City Council, Labor allowed Gold Coast City to have its water retail & distribution business separated from Allconnex (Discinnex?), leaving Redlands & Logan to go it alone as well.

The LNP's plan for the future looks much the same as the existing SEQ Water Strategy....

So let's have a look at the LNP is committed to:

• LNP Policy Commitment:
• * Plan properly for Queensland's future water needs and creating a sustainable water supply that caters for population increases and meets the needs of households, industry and agriculture; and
• * Increasing efficiency in water delivery from the grid to the household, while maintaining a responsible approach to water use and waste.

This looks a lot like the SEQ Water Strategy:

Conserving water

• Making Target 200 SEQ's voluntary residential water use target.
• Ensuring business and industry consider water efficiency as part of good business practices.

Being prepared

• Investigating potential bulk water supply options and new technologies relating to water supply sources to ensure the best decisions are made in the future.
• Preparing a drought response plan for SEQ to identify what needs to happen in the lead up to, during and after any future drought in the region.
• Reporting on the implementation of the Strategy annually, including a review of the fundamental planning assumptions such as climate and weather impacts, population growth and community water use.

Managing water efficiently

• Operating the SEQ Water Grid cost effectively and efficiently.
• Keeping climate-resilient sources on standby so more can be taken from dams in times of plenty, knowing back-up supplies are available when needed.

To date, the LNP has committed to:

The Four Point Water Plan:

• 1. Amalgamate the four bulk water entities into one entity to reduce the cost of supplying water (this is probably a great deal of sense in this point);
• 2. Hand back control of water distribution and retailing to councils who previously did a far better job of managing water resources than the Bligh Government (as it turns out - one way or another control of water distribution & retailing is already handled directly by Councils or by Council owned Utilities);
• 3. Write off non-performing water grid assets to reduce sharp price rises (is an accounting slight of hand, that make no real difference to water & sewage pricing);
• 4. Adopt a 40 year price path to repay the Bligh Government's $7 billion water grid debt over the economic life of the assets, which will also reduce the cost of water (just postpones the inevitable costs to future generations, as a political expedience).

None of the above will have significant impacts on the bulk cost of water or retail price of water.

Sustainable Business Weekly QLD Edition [The case for IPR, Gold Coast Water, Clean Energy]

The Case for Purified Recycled Water

Today the Qld State Government received the Interim Report of Flood Commission of Inquiry & committed to implementing every one of the 104 recommendations. There are around 30 recommendations pertaining to the operation of dams as flood mitigation and/or potable water storages.

What is missing from the recommendations is the most obvious solution to balancing the need to mitigate floods and the need to store water for potable water supplies: indirect potable reuse of purified recycled water.

If the State Government was to close the loop (to some extent) by returning purified recycled water to Wivenhoe Dam, it could reduce the amount of water in the dam by over 50%.

The State Government spent billions of $’s to build the infrastructure required for indirect potable reuse. This infrastructure includes three world-class advanced water treatment plants—located at Bundamba, Gibson Island and Luggage Point—and more than 200 kilometres of pipeline. Most of this infrastructure is running on idle.

While recycling water provides an obvious solution to securing water supplies for SE Qld, there are added benefits. Bundamba Advanced Water Treatment Plant has the capacity to treat the reverse osmosis concentrate, to remove phosphorus and nitrogen before being discharged into the Brisbane River and Moreton Bay.

The discharge releases from the advanced water treatment plants would result in much lower nutrient levels into the environment than current discharges from existing wastewater treatment plants, IF the State Government operated these plants as they were designed.

While we should be reducing water consumption, we should also recycle the waste water that we do generate.

Gold Coast City takes back its Water Utility

The Qld State Government will not stand in the way of Gold Coast City Council’s decision to split from its water business Allconnex.

The State Government will respect the Gold Coast City Council’s decision and now they need to live with the consequences.

The State gave South East Qld councils the opportunity to take back their water businesses so they could take some responsibility for the ongoing blame game for water pricing.

Gold Coast City Council will now have to prove to their ratepayers that they can provide water cheaper by taking back the water business.

The Gold Coast City Council will be required to provide a price mitigation plan to the State Government by 1 August. This plan must be published by 1 September 2011.

The State Government has already introduced a CPI cap on water prices over the next two years and recently announced a proposal to allow Councils to have representation on their water boards.

Clean Energy Legislation

Last week the Australian Federal Government released the drafts of the key bills forming the Clean Energy Legislative Package. In the coming months the Government will introduce these bills to Federal Parliament. The release of the legislation is a key milestone, but the devil is in the detail.

ASBG is currently working with Norton Rose and other ASBG members to analyse what the Clean Energy Future Plan will achieve & what impacts it may have on ASBG members.

The Australian Federal Government’s plan is intended to cut carbon pollution and drive investment in clean energy technologies and infrastructure.

The package includes a price on greenhouse gas emissions and a series of grants & subsidies. It also sets out how the price on pollution will be run, and what businesses will have to do. The intention of the price on pollution is to make energy produced from polluting fuels cost more than energy produced by clean technology. The intention is to create incentives for companies to invest in cleaner energy.

It is clear that the Federal Government perceives that gas is a “cleaner” fuel than coal.

The Federal Government is trying to preserve or protect jobs in some sectors by providing for assistance to emissions intensive and trade exposed industries through the Jobs and Competitiveness Program.

The most emissions-intensive, trade-exposed activities will initially be eligible for free permits representing 94.5 per cent of industry average carbon costs.

This will apply to manufacturing activities like aluminium smelting, steel manufacturing, flat glass making, zinc smelting and most pulp and paper manufacturing activities.

Activities which have lower levels of carbon pollution, such as some plastics and chemical manufacturing, tissue paper manufacturing and ethanol production will be eligible for free permits to cover 66 per cent of the industry average carbon costs.

Liquefied Natural Gas projects will also receive a supplementary allocation to ensure an effective assistance rate of 50 per cent.

The plan is to provide land holders access to new income opportunities by linking the carbon price to the Carbon Farming Initiative and to credible schemes overseas.

Paperless Office?

Are you reading the Australian Sustainable Business Weekly on a screen or on a piece of paper? Where does your paper come from?

Gold Coast Water secedes from AllConnex

Gold Coast City Council has decided to opt out of the Distributor-retailer Allconnex.

Allconnex Water is currently responsible for the delivery of water, recycled water, trade waste and wastewater services to more than 900,000 consumers across Redlands, Logan & the Gold Coast.

Following a protracted blame game between Councils & the State over water prices, the State Government’s announced on 7 April that it would repeal water legislation, allowing Councils to take back the control of their water utilities.

The State Government gave all SEQ Councils the choice to split with their water distributor-retailers (Allconnex, Queensland Urban Utilities and Unitywater) because of claims by some that they could provide water cheaper to ratepayers than the current structure.

The Councils were given this opportunity on the proviso that they could show they (the Council's) could deliver prices cheaper (than the amalgamated Water Utilities) to ratepayers "Gold Coast City Council and in particular the Mayor were very vocal that they could provide water cheaper if they took back their water business under the Council banner. The Gold Coast City Council now has until 1 August to provide a price mitigation plan to the State Government. This plan must be published by 1 September 2011. This price mitigation plan must include information about how a council intends to:

* moderate the impact on customers of price increases;

* assist vulnerable customers; and

* inform the community about future price increases. By 1 March 2013 - at the conclusion of the two year CPI price cap - the councils will also be required to publish a quantifiable price path for residential and small business customers. The price path must cover at least five years and truly consider the impact of price increases.

water, Surat Basin, Carbon, Energy Efficiency

Product Stewardship Bill Passed

The Product Stewardship Bill 2011 was passed by the Parliament on 22 June 2011. This legislation provides the framework to manage the environmental, health and safety impacts of products, and in particular those impacts associated with the disposal of products. The framework includes voluntary, co-regulatory and mandatory product stewardship. For more information see the Australian Government Website.

Ending the Water Blame Game (again)

This year there has been an ongoing blame game between the State Government, Councils & the Council owned Utilities over who is responsible for water price rises.

The Qld Government has proposed amendments to the SEQ Water (Distribution & Retail Restructuring) Act 2009 (DR Act) to allow sitting councillors, including Mayors, to sit on the Board of their water distributor-retailer.

In an Estimates Committee Hearing Minister for Energy and Water Utilities Stephen Robertson said the Governments decision ensured councils would have more immediate access to and involvement with the strategic decision-making process of their water businesses.

The proposed amendments are another attempt to diffuse the tension between the Qld State Government and the local councils by surrendering more control and direct involvement with water distributor-retailer business.

This will put an end to Councils continuing to label their council-owned water businesses as private entities.

The proposed amendments would not alter the current legislative requirement that the councils appoint the Board members.

However the current associated employee provisions which enable a council employee to be appointed to the Board will be removed

Under the proposal:
• the minimum number of Board members would be five
• the maximum number of councillors would be three;
• no council would have more than one councillor on a Board;
• councillors would be appointed within two months of local government elections;
• councillors would be appointed for a maximum term of four years;
• vacancies that arose must be filled by a councillor from the council where the vacancy occurred;
• the Chair of the Board cannot be a councillor.

It should also be clearly understood that the Boards role itself will not alter and it will continue to be responsible for ensuring the distributor-retailer performs its function and exercises their powers in a proper, effective and efficient way.
The Government would progress these amendments in early 2012.

The Surat Basin Future Directions Final Report

This week the QLD State Government released the Surat Basin Future Directions Statement Final Report. A year on from the release of the Surat Basin Future Direction Statement, the Qld Government has attempted a series of initiatives that address the challenges and opportunities stemming from the new multibillion dollar energy industry.

The Surat Basin is currently experiencing growth unlike any other region of Queensland, largely due to the expanding energy and resource sector.
The Qld State Government is trying manage this growth in the Surat Basin. The mining & energy boom, is often in conflict with the interests of residents, farmers, other industries and the local community..

The Qld Government is determined to learn from their experiences (mistakes) in the Bowen Basin and improve their approaches to the pressures of fast growing communities.

This collaborative approach between community, industry and Government has resulted in clear strategies to address the critical needs of the Surat Basin region including:
- planning and settlement patterns;
- economic development;
- skilled labour & workforce development;
- housing availability;
- transport;
- strategic cropping land;
- land access;
- coal seam gas water management;
- social impact management plans.

The Surat Basin Future Direction Statement Steering Committee includes members from local government, industry, agriculture, major employers, unions and the Commonwealth Government.

For more information on the Surat Basin Future Directions Statement visit www.regions.qld.gov.au

Confused about the carbon tax?

There is a great deal of mis-information about the price on pollution. Norton Rose have put together a good snap shot of where things are at. For more information see their website.

Energy Efficiency Opportunities Workshops Coming to Brisbane

The Department of Resources, Energy and Tourism has announced the next series of Energy Efficiency Opportunities (EEO) national workshops to be run in Brisbane on the 31 August & 1 September 2011. The workshops will focus on the second assessment cycle, which will begin for many corporations on 1 July 2011. On the first day they will discuss what requirements will be different in the second cycle, and what companies & the Department have learned about how to plan and do successful assessments.

ending the water blame game (again)

Another press release from The Qld State Government .....

Another attempt to end the blame on water prices......

Energy and Water Utilities The Honourable Stephen Robertson

20/07/2011

Government ensures greater water business accountability and transparency

The Bligh Government has proposed amendments to the SEQ Water (Distribution and Retail Restructuring) Act 2009 (DR Act) to allow sitting councillors, including Mayors, to sit on the Board of their water distributor-retailer. In an Estimates Committee Hearing today, Minister for Energy and Water Utilities Stephen Robertson said the Governments decision ensured councils would have more immediate access to and involvement with the strategic decision-making process of their water businesses. Councils would also gain a better understanding of specific day to day operational issues and how they impact on customers and the broader communities they represent, Mr Robertson said. This is another step towards making South East Queensland Councils more accountable to their ratepayers. Councils, through their Participation Agreement with their distributor-retailer, are able to review and agree the strategic direction of the water business and m ake an informed assessment of its operations.

The proposed amendments would address once and for all the argument that councils need more control of and direct involvement with their distributor-retailer business.

This will put an end to Councils deception of continuing to label their council-owned water businesses as private entities.

The waters are no longer muddied. Councils will no longer be able to shirk responsibility on the issue.

Mr Robertson said under the proposed amendments:

• the minimum number of Board members would be five;
• the maximum number of councillors would be three;
• no council would have more than one councillor on a Board;
• councillors would be appointed within two months of local government elections;
• councillors would be appointed for a maximum term of four years;
• vacancies that arose must be filled by a councillor from the council where the vacancy occurred;
• and the Chair of the Board cannot be a councillor.

Mr Robertson said it is important to note that the proposed amendments would not alter the current legislative requirement that the councils appoint the Board members.

However the current associated employee provisions which enable a council employee to be appointed to the Board will be removed, he said.

It should also be clearly understood that the Boards role itself will not alter and it will continue to be responsible for ensuring the distributor-retailer performs its function and exercises their powers in a proper, effective and efficient way.

Mr Robertson said the Government would progress these amendments in early 2012.

Sustainable Business Weekly QLD Edition [SOTFY, Training, Water Politics, Coal Seam Gas]

SOTFY

Today is the start of the new financial year (SOTFY). Finance is an artificial impost of our complex society that does not correlate to anything in our natural environment.

However, one should note that it is good time to think about registering for a Research & Development Tax Concession.

It is an ongoing scheme designed to increase the level of R&D being conducted by Australian companies. It is broad-based, not industry specific, and market-driven with the applicant entity deciding upon the scope and timing of the research and development. The scheme allows companies to claim a tax deduction in their income tax return of up to 125% (and in some cases up to 175%) of eligible expenditure incurred on R&D activities. Under the R&D tax concession small companies can claim an R&D tax offset (that is, a refundable tax offset) equivalent to the value of certain deductions available under the R&D tax concession instead.

DERM’s Compliance Alert on Training

Recently, Omar Ameer presented at an ASBG workshop on “How to stay out of trouble with your regulator”

Omar noted that DERM develops compliance alerts to highlight commonly occurring areas of non-compliance, and outline the steps that can be taken to improve performance and avoid enforcement action.

The alerts include a description of problems that are regularly encountered, the strategies that can be implemented to address those problems, and case studies that provide practical examples of the consequences of those problems.

An analysis of DERM's litigation activities has highlighted that two common reasons for operators to breach the Environmental Protection Act 1994 – are failure to:

• adequately train staff
• develop and implement adequate systems to manage environmental risk.

Compliance Alert 2/2011 provides case studies that illustrate how this failure can result in significant environmental damage, and prompt enforcement action by DERM.

The National Water Resources Framework

The State and Federal Governments have agreed to implement a national compliance and enforcement framework for water resource management to help protect the environment and secure water users entitlements. The Commonwealth will provide over $10 million for this program, and this funding will be used to enhance or develop: · additional stakeholder and public education tools about compliance · best practice regulatory tools · a nationally consistent range of water offences and penalties · appropriate compliance programs · risk prioritisation of water resources · increased levels of monitoring of high risk water resources · public reporting of compliance statistics. The framework moves all jurisdictions towards a nationally consistent approach to managing water resource compliance. This national initiative has been tailored to the Queensland context within the State's implementation plan, with the aim to ensure fair and equitable use of water resources in Queensland.

Read more on the Commonwealth Department of Sustainability, Environment, Water, Population and Communities website... This national initiative has been tailored to the Queensland context within the Queensland's Implementation Plan for the National Framework for Compliance and Enforcement Systems for Water Resource Management.

Coal Seam Gas

This week the Society of Sustainability and Environmental Engineering held a panel discussion on Coal Seam Gas (without fear or favour).

The session was held in front of a live audience at Engineering House, filling the Hawken Auditorium to capacity. People who had not registered for the event were turned away at the door.

A Web cast of the event will be available on the Engineers Australia website shortly.

The Water Price Blame Game revisited

SEQ Councils have rejected the QLD State Government's offer to take back their water entities.

The Councils had until midnight last night to decide whether to split from the distributor-retailers (Allconnex, UnityWater and Queensland Urban Utilities) and take back control of water, sewerage and sewage treatment services.

The State Government is currently selling bulk water at a loss - in 2010-11 that loss was nearly half a billion dollars. Ironically the majority of the $7b worth of water assets including the Gold Coast desalination plant, the water grid and the water purification plants are sitting idle because the State Government refuses to allow indirect potable reuse of purified sewage effluent.

It would appear that the SEQ Council’s have decided to keep the current distributor-retailer model. However, the political blame games on water pricing continue unabated.