River Murray Private Carryover Policy Information Session 4 & - PowerPoint PPT Presentation

River Murray Private Carryover Policy Information Session 4 & 6 February 2020

Contents • Background • Current policy • Issues & proposed changes • Examples • Sustainable diversion limits • Consultation / Feedback

Background • First introduced during Millenium drought • Allowed water to be carried over from one year into the next • South Australia allowed to store water in upstream storages • Conditions improved by 2011-12

Private Carryover Review - Objectives • Provide water security in dry years to support productive industries and resilient communities • Use water in storage wisely so it is available when needed most • Transparent allocation decisions, announced as early as possible • SA will comply with its Basin Plan obligations to support a healthy, working River Murray

Current River Murray Private Carryover Policy • Projected minimum opening allocations 50% or less • Unused water, up to 20% of Class 3 entitlements held • Final water meter reading provided by 31 July • No application required • Insurance to boost allocations in dry years – total allocation cannot exceed 100% in a year

Issues • Carryover effectively lost because allocations reached 100% • 20GL of water carried over into 2019-20 water use year Next steps 1. Considering improvements to policy settings to address issue 2. Further consideration of applying a revised policy retrospectively • Equity with other water users

Proposed update to carryover policy • Carryover announced when opening allocation 50% or less • Maximum carryover - 20% of entitlement • Maximum annual allocation - 100% • Carryover rolls over when allocations increase to 80% or above • Only in an eligible year (part of an unbroken sequence of years when the projected minimum opening allocation is 50% or less) • Carryover/rollover no longer applies when projected minimum opening allocation is greater than 50%

Example Entitlement = 100ML 2018-19 2019-20 2020-21 2021-22 2022-23 Allocations Allocations Allocations Allocations Minimum reach 100% reach 100% reach 85% reach 60% opening (min opening (min opening (min opening (min opening allocation allocation <50%) allocation <50%) allocation <50%) allocation <50%) >50% Allocation Allocation Allocation Allocation Carryover no 100ML 100ML 85ML 60ML longer applies Used 90ML Used 85ML Used 90ML Used 70ML Remaining = Remaining = Needs 5ML from Needs 10ML 10ML 15ML carryover from carryover Carryover Carryover Carryover Carryover Carryover 10ML 15ML 5ML 0ML 20ML (max)

Compliance Requirements • Basin Wide compliance ensures water makes its way to South Australia • Cap on water use – since 1997 • Water use, was and has continued to be less water than allowed under the Cap • Sustainable Diversion Limits (SDL) – Basin Plan Mechanism • SDL = BDL – water recovery + SDL offset • BDL is the rules under the Cap, applied over a different time-period.

Carryover Implications • If 100% of volume on entitlement is used – > risk of exceeding SDL • Carryover policy affects utilisation • Individual underuse generated against entitlements on issue • Carryover changes could increase the risk of water use exceeding the SDL

Scenarios A. Current policy – single year carryover • Likely to maintain utilisation with minimal additional pressure on SDL compliance B. Proposed - carryover within a dry sequence • Likely to increase utilisation and place increased but manageable pressure on SDL compliance C. Continuous carryover – carryover maintained until used or spilled • Likely to significantly increase use and place increased pressure on SDL compliance

Feedback • Seeking submissions until Tuesday 10 March 2020 • YourSAy.sa.gov.au /river-murray-wap-2020 • Letter, email or complete online survey

Announcement timeline Announcement of Announcement of minimum Carryover actual opening opening allocations* and allocations allocations* carryover availability calculated Submission of Late-season Water availability Carryover meter readings trade period forecast provided granted by MDBA Water-use Year 1 Water-use Year 2 *When allocations are less than 100 percent they will be increased over time if there are improvements in water availability.