Vote Environment - Supplementary Estimates 2016/17

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

Multi-Year Appropriations#

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts#

Capital Injection Authorisations#

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Ministerial Services (M29)

Scope of Appropriation

Expenses and Revenue

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $12,000 to $2.195 million for 2016/17 due to changes in third party revenue.

Waste Minimisation Administration (M29)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation increased by $786,000 to $2.500 million for 2016/17 due to a fiscally neutral transfer of funding from the Non-Departmental Output Expense: Contestable Waste Minimisation Fund. This increase in funding is for researching new projects that would reduce waste deposited in landfills and better manage and monitor existing projects funded through the Contestable Waste Minimisation Fund.

2.3 - Departmental Capital Expenditure and Capital Injections#

Ministry for the Environment - Capital Expenditure PLA (M29)#

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $2.711 million to $4.293 million for 2016/17 due to:

• $1.200 million of costs related to the Ministry's involvement in the Wellington Accommodation project
• $800,000 investment in laptops to maintain operations following the Kaikoura earthquake
• $300,000 for an upgrade to document management system software
• $175,000 for an upgrade to Geospatial software
• $150,000 investment in backup infrastructure as part of ongoing work programme in relation to business continuity
• the remainder covers other improvements in the Ministry's IT systems.

Capital Injections and Movements in Departmental Net Assets

Ministry for the Environment

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Community Environment Fund (M29)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $1.300 million to $1.805 million for 2016/17. This decrease is due to an expense transfer of $1.300 million to 2017/18 and 2018/19 for projects that support the implementation of the freshwater and resource management reforms, and other initiatives.

Contaminated Sites Remediation Fund (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $1.996 million to $6.416 million for 2016/17. This decrease is due to:

• an expense transfer of $1.030 million to 2017/18 for the remediation of the Kopeopeo Canal project. This is due to delays in starting the physical works that resulted from the lengthy consenting process following an appeal to the Environment Court
• an expense transfer of $1.100 million to 2017/18 for the remediation of the Calwell Slipway project. This is due to delays in availability of the contractor to commence physical work.

This decrease is partially offset by a transfer of $134,000 from 2015/16 to 2016/17 for the remediation of the Kopeopeo Canal project.

Contestable Waste Minimisation Fund (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $786,000 to $11.797 million for 2016/17. This decrease is due to a fiscally neutral transfer of funding to the Departmental Output Expense: Waste Minimisation Administration for researching new waste minimisation projects that would reduce waste deposited at landfills and better manage and monitor existing projects funded through the Contestable Waste Minimisation Fund.

Environmental Protection Authority: Decision Making functions (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $982,000 to $12.613 million for 2016/17. This is due to a fiscally neutral transfer of funding from Non-Departmental Output Expense: Environmental Protection Authority: Monitoring and Enforcement functions to align the output classes with the Environmental Protection Authority's Statement of Performance Expectations for the 2016/17 financial year.

Environmental Protection Authority: Monitoring and Enforcement functions (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $982,000 to $6.262 million for 2016/17. This is due to a fiscally neutral transfer of funding to Non-Departmental Output Expense: Environmental Protection Authority: Decision Making functions to align the output classes with the Environmental Protection Authority's Statement of Performance Expectations for the 2016/17 financial year.

Te Mana o Te Wai - restoring the life-giving capacity of fresh water (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $41,000 to $2.071 million for 2016/17. This increase is due to a transfer of $341,000 from 2015/16 to 2016/17 due to delays to establish and run a contestable funding round. This increase is partially offset by an expense transfer of $300,000 to 2017/18 to match the expected delivery of milestones for projects that support or enable iwi/hapu to improve the water quality of freshwater bodies, including lakes, rivers, streams, estuaries and lagoons.

The Fresh Water Improvement Fund (M29)#

Scope of Appropriation#

End of Year Performance Reporting#

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental output expense is less than $5 million.

Reasons for Change in Appropriation#

This appropriation decreased by $2 million to $500,000 for 2016/17 due to an expense transfer of funding to 2017/18. This transfer is due to delays in establishing a contestable funding round (including panel assessment) and contracts negotiation with successful applicants which is now is expected to occur towards the end of 2016/17.

3.4 - Non-Departmental Other Expenses#

Allocation of New Zealand Units (M12)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $245.746 million to $470.523 million for 2016/17 due to:

• an increase in the upper limit of the appropriation from $12.50 per unit to $25 per unit to accommodate the uncertainty in the market price of New Zealand units
• the latest forecast changes in the post-1989 forestry sector resulted from continuous improvement to the model, assumptions, activity and yield data for the post-1989 forests.

Exclusive Economic Zone Major Prosecutions Fund (M29)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve compliance with the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012 by enabling the Environmental Protection Authority to carry out major prosecutions where appropriate.

End of Year Performance Reporting#

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental other expense is less than $5 million.

Reasons for Change in Appropriation#

This appropriation increased by $500,000 for 2016/17 due to an expense transfer from 2015/16 because there were no major prosecutions in 2015/16.

Fresh Start for Fresh Water: Waikato River Clean-up Fund (M29)#

Scope of Appropriation#

How Performance will be Assessed and End of Year Reporting Requirements#

Annual funding decisions are based on:

• Applicants meeting the funding criteria.
• Applications being for projects identified as priority areas by the Trust.
• The quality of the applications received.

Transitional Support for Local Government and Iwi (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $500,000 to $1 million for 2016/17 due to an expense transfer of $620,000 to 2017/18. This transfer relates to Crown contributions for the following settlements likely to happen in 2017/18: a) Ngati Kahungunu ki Wairarapa-Tamaki Nui-a-Rua: Crown Settlement - $500,000; and b) Hauraki Negotiations Final Decisions - $120,000.

This decrease is partially offset by the allocation of $120,000, a one off Crown contribution in 2016/17 relating to the Hauraki Negotiations Final Decisions natural arrangements.

Waste Disposal Levy Disbursements to Territorial Local Authorities (M29)#

Scope of Appropriation#

How Performance will be Assessed and End of Year Reporting Requirements#

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Climate Change (M12)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

What is Intended to be Achieved with each Category and How Performance will be Assessed

Reasons for Change in Appropriation

This appropriation increased by $2.830 million to $12.714 million for 2016/17 primarily due to:

• additional funding of $742,000 allocated for progressing work to ratify the Paris Agreement and plan domestic action on climate change

• a fiscally neutral transfer of $1.450 million ($1.050 million from Departmental Output Expense: Water Management Implementation and $400,000 from Departmental Output Expense: Environmental Hazards and Waste Policy Advice) for progressing work on climate change related work programmes, including the New Zealand Emissions Trading Scheme (NZ ETS) review

• an expense transfer of $511,000 from 2015/16 to 2016/17 to continue with the work on NZ ETS review and arrange the Asia Pacific Carbon Markets Roundtable meeting, a New Zealand-led initiative delayed due to Climate Change conference and signing of the Paris Agreement in 2015/16.

Environmental Management Obligations and Programmes (M29)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

What is Intended to be Achieved with each Category and How Performance will be Assessed#

Stage 1 commences when applications to the Fund close, and ends once assessment of applications is complete and funding recommendations are provided to the Minister.

Reasons for Change in Appropriation#

This appropriation decreased by $76,000 to $3.491 million for 2016/17 due to the reprioritisation of $100,000 to the Departmental Output Class: Marine Environment Policy Advice towards progressing policy work on Marine Protected Areas.

Improving Environmental Management (M29)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

What is Intended to be Achieved with each Category and How Performance will be Assessed#

Reasons for Change in Appropriation#

This appropriation decreased by $187,000 to $43.463 million for 2016/17 primarily due to:

• an expense transfer of $2.820 million to 2017/18 for non-departmental output class ' Water science and economics'. This work involves building science and economics knowledge and capability by developing the science that underpins the attributes for the National Objectives Framework. The transfer is due to the delays caused by limited capacity in the research sector to carry out the required level of research
• $1.050 million reprioritised for climate change related work programme, including the New Zealand Emissions Trading Scheme review.

These decreases are partially offset by:

• $2.712 million transferred from 2015/16 to 2016/17 due to delays to the legislative timetable of resource management reforms and delays in progressing work on water management reforms
• $503,000 in additional funding allocated through the 'Better Public Service (BPS) Seed Funding' for an Environmental Integrated Data Infrastructure Pilot (e-IDI) project
• $100,000 of funding reprioritised from Departmental Output Expense: Domestic Obligations and Programmes for progressing policy work on Marine Protected Areas
• $458,000 related to cost recovery revenue from other parties.

Mitigating Environmental Hazards and Waste (M29)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

What is Intended to be Achieved with each Category and How Performance will be Assessed#

Reasons for Change in Appropriation#

This appropriation decreased by $376,000 to $1.942 million for 2016/17 primarily due to the reprioritisation of $400,000 to the Departmental Output Class: Domestic Climate Change Programme Policy Advice for progressing Climate Change related work programmes, including the New Zealand Emissions Trading Scheme review.