West Gippsland Catchment Management Authority

PO Box 1374,Traralgon, Vic 3844

P | 1300 094 262 F | (03) 5175 7800

ABN | 88 062 514 481

30 November 2016

The Hon Lisa Neville MLA

Minister for Police and Water

PO Box 500

East Melbourne VICTORIA 8002

Dear Minister

APPLICATION TO AMEND BULK ENTITLEMENT

To facilitate the Victorian Government’s commitment to provide an additional eight gigalitres of environmental water for the Thomson River, the Victorian Environmental Water Holder (VEWH) hereby applies to amend the Bulk Entitlement (Thomson River - Environment) Order 2005, in accordance with section 44 of the Water Act 1989.

The VEWH has worked closely with the Department of Environment, Land, Water and Planning (DELWP), Melbourne’s retail water authorities, Melbourne Water and West Gippsland Catchment Management Authority (CMA) to agree upon the entitlement amendments needed to transfer the water from the retail water authorities to the VEWH. The proposed amendment will provide the VEWH with an additional 3.9 per cent share of inflows to the Thomson Reservoir and eight gigalitres of storage capacity.

In addition to essential changes to enable the transfer of water, we have taken the opportunity to propose some corrections in response to drafting errors and remove outdated clauses in the bulk entitlement. A draft amendment order is attached.

The extra share of water is very valuable because it provides more opportunities and greater flexibility in managing flows to improve environmental outcomes in the Thomson River. I have attached a letter from West Gippsland CMA to VEWH in support of the amendment.

This application has been made following consultation with DELWP and other entitlement holders in the Greater Yarra System – Thomson River Pool.

Yours sincerely

<signed>

Denis Flett

Chairperson

Victorian Environmental Water Holder

5th August, 2016

Beth Ashworth

Executive Officer

Victorian Environmental Water Holder

PO Box 500

East Melbourne, VIC 3002

Dear Beth,

Re: Proposal for allocation of additional 8 GL to Thomson environmental entitlement

Over the past few years, the West Gippsland Catchment Management Authority (WGCMA) have been advocating for the additional 8 GL allocation to the Bulk Entitlement (Thomson River – Environment) Order 2005 (herein, the Thomson environmental entitlement). This allocation reflects commitments in the Our Water, Our Future white paper (2004), Central Region Sustainable Water Strategy (2006) and the Gippsland Region Sustainable Water Strategy (2011), and recently in the Water for Victoria discussion paper (2016).

We are pleased that the Department of Environment, Land, Water and Planning (DELWP) have been working with representatives from the WGCMA, VEWH, Melbourne Water and Melbourne Water retailers over the last year, to enact this commitment.

We have been advised that DELWP are proposing the following for the Thomson environmental entitlement:

·  Maintenance of the secure and upfront 10 GL inflow share as per the current environmental entitlement;

·  Provision of an additional 3.9% share of inflows into the Thomson Reservoir for the environmental entitlement;

·  Provision of an additional 8 GL share of storage capacity in the Thomson Reservoir (equating to a total 18 GL of storage capacity); and

·  Maintenance of access to airspace to store excess environmental water, subject to first to spill rules.

We understand that this proposal has been informed by negotiations with stakeholders, including the WGCMA. As such, the organisation is pleased to advise the VEWH of our support of DELWP’s proposal (outlined above). We are happy to assist the VEWH and DELWP in progressing any administrative and statutory amendments so that this proposal may be implemented as soon as possible.

Yours faithfully,

<signed>

Martin Fuller

Chief Executive Officer

WATER ACT 1989

BULK ENTITLEMENT (THOMSON RIVER – ENVIRONMENT) AMENDMENT ORDER 2016

I, Lisa Neville, as Minister administering the Water Act 1989 (the Act) make the following Order.

1  Title

This Order is called the Bulk Entitlement (Thomson River - Environment) Amendment Order 2016.

2  Preliminary

Bulk Entitlement (Thomson River - Environment) Order 2005 was made on 3 August 2005 and published in the Victoria Government Gazette on 18 August 2005.

3  Purpose

The primary purpose of this Order is to amend the Bulk Entitlement (Thomson River - Environment) Order 2005 (the bulk entitlement) to give the Victorian Environmental Water Holder a 3.9 per cent share of inflow into the Thomson Reservoir and an additional 8,000 ML of storage capacity. The other amendments are minor wording changes to improve the clarity of the bulk entitlement and which do not affect practical operations.

Authorising provisions

This Order is made in accordance with section 44 of the Act.

4  Commencement

This Order comes into effect on the day it is published in the Victoria Government Gazette.

Amendment of clause 4 - Definitions

In clause 4 of the bulk entitlement –

(a)  for the definition “Department” substitute –

“ “Department” means Department of Environment, Land, Water and Planning;”

(b)  in the definition “Southern Rural Water Harvest Right” between the words “Coopers” and “Gauging” insert the word “Creek”

(c)  revoke for the definition “Sustainable Water Strategy

Change of reference

(a)  wherever the letter “s” is used in the bulk entitlement to indicate a section of the Act substitute the word “section”

(b)  wherever the words “Water Holder” instead of “the Water Holder” substitute

“Water Holder”

with

“the Water Holder”

Amendment of clause 7 – Share of Storage Capacity

(a)  in sub-clause 7.1 paragraph (a), for volume “10,000 ML” substitute the volume “18,000 ML”

(b)  in sub-clause 7.2, for the volume “10,000 ML” substitute the volume “18,000 ML”

Amendment of clause 8 – Share of Flow

(a)  for sub-clause 8.3 substitute

“8.3 The Thomson Storage Manager must attribute 3.9% of all inflow to Thomson Reservoir from the Thomson Basin, as calculated by the Thomson Storage Manager to the Water Holder’s share.”

(b)  after sub-clause 8.3 insert the following sub-clauses

“8.4 Upon the Bulk Entitlement (Thomson River – Environment) Amendment Order 2016 coming into operation the Thomson Storage Manager must transfer the equivalent of 3.9% of all inflow to Thomson Reservoir from 1 July 2016 until the date the Bulk Entitlement (Thomson River – Environment) Amendment Order 2016 comes into operation as a once off transaction.

8.5 The Thomson Storage Manager must separately account for water attributed to the Water Holder’s share under sub-clauses 8.1, 8.2, 8.3 and 8.4.”

Amendment of clause 10 – Releases

(a)  In sub-clause 10.2, for the words

“sub-clause 8.2.”

substitute the words

“sub-clause 8.2, 8.3 and 8.4.”

(b)  In sub-clause 10.3, for the words

“Thomson River”

substitute the words

“Thomson Reservoir”

10  Clause 12 – Transfer and Assignment of Entitlement and Adjustment of Schedules

(a)  Clause 12 is revoked.

11  Amendment of clause 17 – Reporting Requirements

(a)  For sub-clause 17.1, paragraph (a) substitute

“(a) the daily environmental flows delivered under this entitlement;”

(b)  For sub-clause 17.1, paragraph (b) substitute

“(b) the annual environmental flows delivered under this entitlement;”

(c)  In sub-clause 17.1, paragraph (f) for the words

“in respect of the headworks system;”

substitute the words

“in respect of the Thomson Basin;”

12  Part 5 – Further Work of the bulk entitlement is revoked

(a)  Part 5 of the bulk entitlement is revoked.

Dated:

LISA NEVILLE MP

Minister for Water