1. Future directions for recycling OzWater 2014 Paul Smith

2. Recycling trends and directions 2000 – 2014 - 2030 Area200020142030 PolicyRestrictive. Fragmented. “Security through diversity”, but some options discounted… All options routinely considered. Integrated policy and investment across water cycle Technical Regulation End of pipe, restrictive, regulatory duplication / gaps Risk-based, National Guidelines and tools. Efficient regulation. “Smart” regulatory arrangements across economic, environmental and health. InfrastructureConvention / single supply (less than 4% recycled WW) Diversified / interconnected (20-30% recycled WW) Integrated, harmonised. (up to 100% recycled WW) InnovationResearch-focused. Low efficiency, high energy Demand-led, national transferal, i.e. co-gen, membrane advances, analytical capabilities etc. Nationally accessible, Internationally exported CompetitionUncompetitive market structuresSemi-competitive marketsCompetitive neutrality across the sector Economic regulation No pricing mechanismIndependent econ reg. Pricing for recycled water. Consideration of externalities “Smart” regulatory arrangements across economic, environmental and health AssetsGovernment ownedAsset recycling, private participation and ownership Contestable market for water and wastewater assets and services

3. Three priorities 1.Efficient regulation 1.Clear, efficient, effective and stable approval processes 2.Pricing based on ‘whole of water cycle management’ principles 3.National coordination (technical and economic) 2.Clear institutional and market structures 1.Competitive neutrality 2.Role clarity 3.Institutional alignment 3.Innovation 1.Demand-led R&D 2.Nationally coordinated & assessable, mutually recognised 3.Internationally exported

4. National consistency National approachDescriptionOutput example National leadership and direction National statement of objectives for urban water Overarching blueprint for urban water -Clear institutional and governance arrangements -Efficient regulation -Clear market structures -Regional and remote water services National collaboration and consistency Inter-jurisdictional collaboration National Guidelines and Frameworks, i.e. -Efficient economic regulation -Aligning technical regulation -Clarifying market structures -Integrated planning frameworks -Utilities performance reporting National facilitation and knowledge adoption National facilitation and knowledge sharing National forums and R&D platforms, consolidating: -skills and training -system validation -operator certification -efficient regulation -financial valuation

5. www.nwc.gov.au

7. 1.Prior cost/benefit and risk analyses are conducted which take full account of social and environmental externalities and avoided costs 2.The best available science is utilised 3.The project is subject to best practice regulatory arrangements (based on the Australian Guidelines for Water Recycling). 4.The community participates in water supply decisions and that subsequent management arrangements are transparent and accountable. The Commissions position on recycling

8. CSIRO. MAR: Policy and Institutional analysis Recycling regulation Attribute QuantityQuality Legislation Water and Storage Entitlements and Allocation Human Health and Environment Protection Surface water  Environmental flow requirements  Water allocation plans and surface water entitlements  Flood planning and management  Landuse planning and construction  Catchment pollution control plan  Water quality requirements for intended uses  Risk management plan for water quality Groundwater  Groundwater plan for entitlements allocation  Groundwater-dependent ecosystems  Demand management plan  Aquifer storage management plan  Inter-jurisdictional agreements and market operations  Groundwater quality protection plan for recharged aquifer  Water quality requirements for intended uses of groundwater  Risk management plan for water quality assurance beyond attenuation zone,

9. CSIRO. MAR: Policy and Institutional analysis Recycling regulation Attribute QuantityQuality Legislation Water and Storage Entitlements and Allocation Human Health and Environment Protection Surface Water regulation  Environmental flow requirements  Water allocation plans and surface water entitlements  Flood planning and management  Landuse planning and construction  Catchment pollution control plan  Water quality requirements for intended uses  Risk management plan for water quality Groundwater regulation  Groundwater plan for entitlements allocation  Groundwater-dependent ecosystems  Demand management plan  Aquifer storage management plan  Inter-jurisdictional agreements and market operations  Groundwater quality protection plan for recharged aquifer  Water quality requirements for intended uses of groundwater  Risk management plan for water quality assurance beyond attenuation zone,

10. Regulatory roles JurisdictionNumber of departments involved in regulation Lead organisation for proponent contact Other organisations ACT3EPAHealth, Planning NSW3Office of WaterHealth, IPART NT2DIPEEPA Qld3DEWHealth SA5EPAHealth, ESCOSA, Dept Water, NRM Board Tas3EPADPIPWE, Dept of Health Vic6RWCsEPA, Dept of Health, DSE councils, Melbourne Water, DHS WA5DoWDEC, EPA, local council, Dept of Health