Vote Environment - Supplementary Estimates 2012/13

Details of Multi-Year Appropriations#

Details of Projected Movements in Departmental
Net Assets#

Ministry for the Environment

Information Supporting the Supplementary Estimates Vote Environment#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Climate Change Issues (M12), Minister for the Environment (M29)

ADMINISTERING DEPARTMENT: Ministry for the Environment

MINISTER RESPONSIBLE FOR MINISTRY FOR THE ENVIRONMENT: Minister for the Environment

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Climate Change MCOA (M12)

Scope of Appropriation

Explanation for Use of Multi-Class Output Expense Appropriation

These output classes grouped together under this MCOA contribute to the outcome of ensuring New Zealand becomes a successful low-carbon society that is resilient to climate change impacts on its climate, economy and lifestyle. These output classes share a particular focus on decreasing New Zealand's net emissions of greenhouse gases below business as usual levels in a cost-effective way.

Expenses and Revenue

Reasons for Change in Appropriation

This Multi-class Output appropriation will increase by $561,000 to $8.353 million in 2012/13. This increase is primarily due to the establishment of a new Output class: Synthetic Greenhouse Gas Levy during 2012/13 to fund the costs of implementing and collecting the Synthetic Greenhouse Gas Levy. This increase is partially offset by the reprioritisation of funding to complete research associated with the work under taken in Water Management Policy Advice.

Output Performance Measures and Standards

Environmental Management Obligations and Programmes MCOA (M29)#

Scope of Appropriation#

Explanation for Use of Multi-Class Output Expense Appropriation#

These output classes grouped together under this MCOA contribute to the outcome of strengthening and supporting New Zealand's environmental systems so they can achieve the greatest overall environmental, economic and social benefits. These output classes share a particular focus on achieving better solutions to environmental problems by supporting community involvement and action, and international cooperation.

Expenses and Revenue#

Reasons for Change in Appropriation#

This Multi-class Output appropriation will decrease by $137,000 to $4.227 million in 2012/13. This decrease is primarily due to the reprioritisation of funding to complete research associated with the work undertaken in Water Management Policy Advice.

Improving Resource Management MCOA (M29)#

Scope of Appropriation#

Explanation for Use of Multi-Class Output Expense Appropriation#

These output classes grouped together under this MCOA contribute to the outcome of strengthening and supporting New Zealand's environmental systems so they can achieve the greatest overall environmental, economic and social benefits, with a shared focus on improving resource management.

Expenses and Revenue#

Reasons for Change in Appropriation#

This Multi-class Output appropriation will increase by $2.281 million to $24.958 million in 2012/13 as a result of balancing significant priorities that have been progressed in 2012/13 including:

• advising on the design, detail and implementation of the water reform package including cross departmental economic research to inform the policy work programme
• progressing phase two of the Resource Management Reforms
• reviewing and monitoring National Policy Statements and National Environmental Standards to establish the implementation of regulations
• advising on the Exclusive Economic Zone, including supporting a Bill through the drafting and parliamentary process and developing regulations
• developing and progressing the Natural Resource Sector Marine policy.

Output Performance Measures and Standards#

Land Use and Carbon Analysis System (M12)#

Scope of Appropriation and Expenses#

Revenue#

Reasons for Change in Appropriation#

This Multi-year appropriation was re-established from 1 July 2012 under Vote Environment upon merging Votes Climate Change and Environment. The balance of funding was transferred from a previously established Multi-year appropriation in Vote Climate Change. The increase of $1.078 million in 2012/13 represents the unspent amount at June 2012. The total spending across the years remains unchanged.

Ministerial Services (M29)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation will decrease by $313,000 to $2.660 million in 2012/13. This was the first year of this output class and therefore more accurate information around ministerial servicing has been gathered during 2012/13.

Mitigating Environmental Hazards and Waste MCOA (M29)#

Scope of Appropriation#

Explanation for Use of Multi-Class Output Expense Appropriation#

These output classes grouped together under this MCOA contribute to the outcome of strengthening and supporting New Zealand's environmental systems so they can achieve the greatest overall environmental, economic and social benefits. These output classes share a particular focus on reducing harm from natural, chemical and biological hazards and from waste through more effective management frameworks.

Expenses and Revenue#

Reasons for Change in Appropriation#

This Multi-class Output appropriation will increase by $146,000 to $3.963 million in 2012/13 as a result of balancing the significant priorities that have been progressed in 2012/13 including:

• reviewing and monitoring territorial authorities spend of their waste disposal levy payments against their waste management and minimisation plans
• implementing the project to recycle unwanted televisions and explore options for a long-term solution to improve the management of electronic waste in New Zealand.

Output Performance Measures and Standards#

Waste Minimisation Administration (M29)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation will increase by $610,000 to $2.324 million in 2012/13. This increase is due to the reprioritisation of resources to assist in implementing and managing the functions of the newly introduced TV TakeBack programme under the Waste Minimisation Act 2008.

Output Performance Measures and Standards#

Part 2.2 - Non-Departmental Output Expenses#

Community Environment Fund (M29)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation will decrease by $2.125 million to $2.992 million in 2012/13. This is due to the fact that appropriation levels are initially set at the annual funding round limit and timing of deliverables and project milestones are unknown until the funding round is complete. The appropriation has now been rephased to match the actual and expected delivery of milestones.

Contaminated Sites Remediation Fund (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will decrease by $2.700 million to $320,000 in 2012/13 to match the amount of funding with the revised timing of deliverables. Funding has been committed to the multi-year Kopeopeo Canal project. Due to delays, the bulk of the physical work is now to be undertaken in 2013/14. Funding the remediation of the Calwell Slipway project is also expected to occur in 2013/14.

Contestable Waste Minimisation Fund (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will decrease by $15.033 million to $12.562 million in 2012/13. This is due to the fact that appropriation levels are initially set at the annual funding round limit and timing of deliverables and project milestones are unknown until the funding round is complete. This decrease is due to the rephasing of the funds to match the actual and expected delivery of milestones.

Emissions Trading Scheme (M12)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will increase by $1.545 million to $7.937 million in 2012/13. This increase is due to an expense transfer from 2011/12 for the maintenance of various systems operated by the Environmental Protection Authority.

Environmental Protection Authority: Regulatory Functions MCOA (M29)#

Scope of Appropriation#

Explanation for Use of Multi-Class Output Expense Appropriation#

These output classes grouped together under this MCOA contribute to the same outcome of strengthening and supporting New Zealand's environmental systems so that they can achieve the greatest overall environmental, economic and social benefits.

Expenses#

Reasons for Change in Appropriation#

This Multi-class Output appropriation will decrease by $400,000 to $14.200 million in 2012/13. The Environmental Protection Authority (EPA) will be responsible for decision making on applications for marine consents and for monitoring and enforcement of compliance of under the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012. Finalising the regulatory framework and the development of the regulations has taken longer than initially anticipated, and this has created uncertainty for the EPA in setting up its operational functions. Initially, the regulations were due to be completed in this financial year, but are now expected to be completed next year.

Fresh Start for Fresh Water: New Initiatives (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will decrease by $8.030 million to $4.970 million in 2012/13. Funding of $15 million was appropriated for the two financial years 2011-2013. The establishment period has taken longer than anticipated, particularly for the large projects such as Lake Te Waihora and the Manawatu River, resulting in timeframes for the projects being extended. This decrease is due to the rephasing of the funds to match the actual and expected delivery of milestones.

Fresh Start for Fresh Water: Rotorua Lakes Restoration Programme (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will decrease by $4.100 million to $8.200 million in 2012/13.

The Crown, Environment Bay of Plenty and the Rotorua District Council are jointly involved in a ten year project for the protection and restoration of the water quality of Rotorua lakes. The decrease is due to rephasing of the funds to match the actual and expected delivery of milestones.

Rena Long-term Environment Recovery (M29)#

Scope of Appropriation and Expenses#

Reasons for Change in Appropriation#

This Multi-year appropriation will decrease by $995,000 to $1.877 million in 2012/13. The decrease reflects a technical adjustment to the appropriation.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Allocation of New Zealand Units (M12)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation will decrease by $230.170 million to $327.980 million in 2012/13. This is primarily due to:

• amendments to the Climate Change Response Act 2002 based on the Emissions Trading Scheme Review 2012, and
• improved methodology for matching emission projections to unit forecasts.

Crown indemnities under the Projects to Reduce Emissions Agreements PLA (M12)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation of $1 million is to cover the Crown liability for the indemnity payments in relation to a few Projects to Reduce Emissions and this is authorised under section 65ZG of the Public Finance Act 1989.

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

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will increase by $39,000 to $4.745 million in 2012/13. This increase represents the difference between the cash to be paid to the Trust in relation to the Waipa River Clean-up Fund in 2012/13 ($333,000) and the net present value recognised in 2011/12 for this funding.

Hawke's Bay Rivers Clean-up Fund (M29)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation of $2 million in 2012/13 is due to an expense transfer from 2011/12 to 2012/13 because of delays in signing the deed of funding with Hawke's Bay Regional Council - Ngati Pahauwera Research Study.

Expected Results#

Impairment of Debt Relating to the Waste Disposal Levy collection (M29)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation was approved during the year to provide for the potential non-collectability of debts in relation to the Waste Minimisation Act.

Issue of New Zealand Assigned Amount Units to Permanent Forest Sink Initiative Participants (M12)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will increase by $5.050 million to $16.800 million in 2012/13. This increase is due to an updated forecast from 470,000 units to 1.680 million units for issuing NZAAUs to PFSI Participants by the Ministry for Primary Industries. These figures indicate the large growth phase for the Permanent Forest Sink Initiative participants in the final year of Commitment Period 1.

Provision of a new water source for Rotorua (M29)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation was approved during the year. The appropriation relates to the provision of a one off contribution to Rotorua District Council to assist with the location and establishment of a new water source for Rotorua provided that the Council agrees to fund the remainder of the cost of the project.

Expected Results#

Purchase of Units under the New Zealand Emissions Trading Scheme (M12)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation of $6 million in 2012/13 is to cover the purchase of units on behalf of the Crown under Section 159 of the Climate Change Response Act 2002.

Transitional Support for Local Government and Iwi (M29)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation of $825,000 in 2012/13 is to cover the Bay of Plenty Regional Council costs arising from:

• The Tauranga Moana Framework Co-management Arrangements, and
• The Tapuika Negotiations - Kaituna River Co-governance Arrangements.

Expected Results#

Waikato River Co-Management (M29)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation will increase by $6.954 million to $9.787 million in 2012/13. This increase is due to changes in the unwinding of the discount amounts following a request from Waikato-Tainui for the additional upfront payment of $10 million of their $30 million co-management funding. The funding was originally intended to be paid to them in annual $1 million instalments.