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Cabinet paper: Approval of the National Policy Statement on Electricity Transmission

Office of the Minister
Cabinet Business Committee

Proposal

  1. I seek Cabinet’s approval of the attached National Policy Statement on Electricity Transmission (National Policy Statement), prepared under the Resource Management Act 1991.  I also seek authorisation to submit the National Policy Statement to the Executive Council for approval.

Executive summary

  1. I have considered the report and recommendations of the Board of Inquiry (the Board) on the proposed National Policy Statement, including its recommended revised National Policy Statement.  I have decided to accept the Board’s recommended National Policy Statement, subject small number of editorial and technical changes.
  2. As required by section 32 of the Resource Management Act, I have carried-out a further evaluation of the Board’s recommended National Policy Statement.  I am satisfied, as a result of the evaluation, that the recommended National Policy Statement is the most appropriate way of achieving the purpose of the RMA – to promote the sustainable management of natural and physical resources.
  3. I now intend to recommend the National Policy Statement (Appendix 2) to the Governor-General in Council for his approval, and proceed to issue the National Policy Statement by notice in the New Zealand Gazette.

Background

  1. The 2004 review of the Resource Management Act found that lack of a clear statement on national interest on infrastructure led to insufficient weight being given to infrastructure of national significance in Resource Management Act plans and in local decision making.
  2. In November 2004, a Reference Group was set up to report back on the value of national guidance for electricity transmission under the Resource Management Act.  The Reference Group’s report, The Merits and Potential Scope of National Guidance on the Management of Electricity Transmission under the Resource Management Act (December 2005), concluded that there would be likely net benefits from a National Policy Statement, and National Environmental Standards, on electricity transmission.
  3. In November 2006, the Cabinet Business Committee noted a draft proposed National Policy Statement had been prepared [CBC Min (06) 20/19 refers].  Cabinet Business Committee also noted the intention to appoint the Honourable Peter Salmon QC (Chairman), Russell Howie and Prue Kapua to be the Board of Inquiry (the Board) on the proposed National Policy Statement [CBC Min (06) 20/2 refers].
  4. In April 2007, Cabinet approved the proposed National Policy Statement and its public notification by the Board [CAB Min (07) 13/4 refers].
  5. The Board notified the proposed National Policy Statement in May 2007.  Seventy-one submissions were received and hearings were conducted during August 2007.  The Board heard extensive submissions representing different points of view and received several ‘alternative’ National Policy Statement proposals from submitters, including Transpower.
  6. The Board submitted its report and recommendations on the National Policy Statement to me in November 2007.  I have considered the report and recommendations, as required under section 52 of the Resource Management Act.  The Board’s report and recommendations are attached in full as Appendix 1.

Policy – the Board’s recommended National Policy Statement

  1. National Policy Statements are statutory instruments to help local authorities and decide how competing national benefits and local costs should be balanced.
  2. The National Policy Statement recommended by the Board states that electricity transmission is a matter of national significance in terms of the Resource Management Act.  The Objective of the National Policy Statement is:

    To recognise the national significance of the electricity transmission network by facilitating the operation, maintenance and upgrade of the existing transmission network and the establishment of new transmission resources to meet the needs of present and future generations, while:

    • managing the adverse environmental effects of the network; and
    • managing the adverse effects of other activities on the network.
  3. The National Policy Statement also has 14 policies designed to achieve the Objective.
  4. The Board has recommended the introduction of seven substantially new policies.  These new policies address distinctions between rural and urban environments and sensitive activities, the activities of third parties and strategic planning for the transmission network.  These new policies, and the revised policy on electric and magnetic fields, are discussed below.

Managing sensitive activities and urban and rural environments

  1. Three policies are aimed at reducing and avoiding the adverse effects of transmission activities.  These are:
    • Policy 6 encourages minimising the adverse effects of substantial transmission upgrades, including adverse effects on ‘sensitive’ activities (including residential, schools and hospitals).
    • Policy 7 seeks to minimise the adverse effects of transmission activities in urban amenity and avoid adverse effects on town centres, areas of high recreational value or amenity and existing sensitive activities.
    • Policy 8 seeks to avoid adverse effects of transmission activities on outstanding natural landscapes, areas of high natural character, areas of high recreational value or amenity and existing sensitive activities.

Managing third party activities

  1. Two further policies (10 and 11) direct councils to manage the activities of third parties that can have adverse effects on transmission activities (eg. quarrying) and to identify a buffer corridor for transmission activities that should generally be free of sensitive activities.  Both policies will help manage reverse sensitivity problems (eg. the owner of a new house complaining about noise from an existing substation).
  2. The draft National Environment Standard proposals, currently under development, were not publicly released until after the Board hearings, and were, therefore, not considered by the Board.
  3. The Board therefore has taken a comprehensive approach on electricity transmission that covers areas that a National Environmental Standard might also regulate.  Officials’ assessment is that the Board’s proposed National Policy Statement sets a high-level objective and policies that can complement a National Environmental Standard.

Strategic planning of transmission development

  1. Two new policies (13 and 14) direct:
    • Decision-makers to recognise that designations can facilitate long-term planning of transmission corridors, and
    • Regional councils to include objectives, policies and methods to facilitate long-term planning for investment in transmission infrastructure and its integration with other land uses.

Managing electric and magnetic fields

  1. The Board recommends that:
    • The best guidance we have on acceptable exposure to electric and magnetic fields from transmission lines is the Guidelines produced by the International Commission on Non-Ionising Radiation Protection (ICNIRP) which were endorsed by the World Health Organisation (WHO) in June 2007
    • The Government should continue to review the potential for adverse health effects from electric and magnetic fields.  (This process is currently undertaken by the Interagency Committee on the Health Effects of Non-ionising Fields, managed by the Ministry of Health.)
    • Where it is practical and economic, the general approach should be to protect the public from average exposure to relatively strong magnetic fields.
  2. The Board, therefore, has recommended that councils must base any provisions dealing with electric and magnetic fields on the ICNIRP guidelines, complemented by the WHO recommendations on electric and magnetic fields (which refer to taking low or zero cost measures to reduce exposure to electric and magnetic fields), and any applicable National Environmental Standard or New Zealand standards on electric and magnetic fields (see Policy 9).
  3. The Ministry of Health agree with this Policy, which reflects its current recommendations.

Implementation of the National Policy Statement

  1. Decision-makers on electricity transmission network activities, and related resource management matters, will be required to have regard to the National Policy Statement.  Furthermore, local authorities will have to develop local plan provisions to give effect to the National Policy Statement.
  2. There will be no direct fees or charges as a part of the National Policy Statement.  However, there will be costs and benefits – some monetary – resulting from the National Policy Statement and its implementation.  These matters are discussed further in the attached regulatory impact assessment (Appendix 3).
  3. Decision-makers must have regard to the National Policy Statement in resource management decision making (immediately) and give effect to the National Policy Statement provisions through local plan changes (within four years).
  4. The costs to councils can be minimised by incorporating changes into the “second generation” plan review cycle which many councils are currently embarking on.  Non-statutory guidance on the National Policy Statement will be prepared to assist the public and decision-makers.

Evaluation of the National Policy Statement under section 32

  1. As required by section 32 of the Resource Management Act, I have carried out an evaluation of the extent to which the Objective of the National Policy Statement is the most appropriate way to achieve the purpose of the Resource Management Act, and whether the policies are the most appropriate for achieving the Objective.
  2. The evaluation shows that the Objective is appropriate and policies are likely to be efficient and effective.
  3. The evaluation also shows that the implementation of the National Policy Statement will result in both costs and benefits.  The rules and methods adopted by councils to give effect to the National Policy Statement will result in costs.
  4. The main direct costs will be to landowners near to transmission activities who will be further affected by restrictions on the way they use/develop their land.
  5. There will be direct costs to councils in developing, notifying and enforcing changes to their plans to give effect to the provisions of the National Policy Statement.
  6. The main benefits will be to Transpower, because councils will now be required to have regard to the national significance of electricity transmission when managing land uses under the Resource Management Act.
  7. The expected costs and benefits of the National Policy Statement are summarised in the attached regulatory impact statement (Appendix 3).

Contribution to other Government policy

  1. The National Policy Statement will support the New Zealand Energy Strategy, and the climate change adaptation strategy, because it acknowledges new transmission network capacity for new ‘renewable’ electricity generation development.
  2. Other national policy statements (eg. New Zealand Coastal Policy Statement) will be read together with the National Policy Statement on Electricity Transmission – they will not be overridden by it.

Risks

  1. There may be a perception that the Government is pushing ahead to facilitate national transmission infrastructure development at the expense of landowners and local communities.  These perceptions will need to be addressed through the information and publicity materials put out at the time the National Policy Statement is gazetted.
  2. The development of local rules and methods through the First Schedule of the Resource Management Act will allow landowners and other affected parties to represent their views to councils.

My decisions

  1. I believe that the Board’s recommended National Policy Statement offers a comprehensive and directive policy statement on the management of electricity transmission network activities.  The Board’s report considers the main areas of interest and concern of submitters in arriving at its recommended National Policy Statement.  The National Policy Statement proposed for recommendation to the Governor-General is attached as Appendix 2.
  2. I believe the Board’s National Policy Statement is sound.  The attached regulatory impact statement (Appendix 3) and section 32 evaluation of the National Policy Statement support this view.
  3. As mentioned, there will be costs associated with the National Policy Statement and its implementation.  However, I consider that overall the benefits will outweigh the costs.
  4. On balance, the main purpose of the National Policy Statement will be to make it explicit that electricity transmission – and the national benefits it provides – is a matter of national significance under the Resource Management Act.
  5. The effect of a National Policy Statement will be to require decision-makers to consider the national significance of electricity transmission activities when assessing proposals that affect the national grid.  It is expected that, on some occasions, the national benefit should outweigh local adverse effects in reaching a decision.

Timing

  1. The National Policy Statement will be notified in the New Zealand Gazette and will take effect 28 days after notification.

Compliance

  1. The National Policy Statement complies with
    1. The principles of the Treaty of Waitangi;
    2. The rights and freedoms contained in the New Zealand Bill of Rights Act 1990 or the Human Rights Act 1993;
    3. The principles and guidelines set out in the Privacy Act 1993;
    4. Relevant international standards and obligations; and
    5. The LAC Guidelines: Guidelines on Process and Content of Legislation.

Regulations Review Committee

  1. There are no grounds for the Regulations Review Committee to draw the National Policy Statement to the attention of the House under Standing Order 315.

Certification by Departmental Solicitor

  1. The National Policy Statement has been certified by the Chief Legal Adviser to the Ministry for the Environment as being in order for submission to Cabinet.

Publicity

  1. A publicity package will be developed for the National Policy Statement.

Consultation

  1. The National Policy Statement has been developed through a Board of Inquiry process that called for public submissions, and conducted hearings.
  2. The following agencies have been consulted on this paper and their views taken into account: Department of Building and Housing, Department of Internal Affairs, Department of Conservation, Land Information New Zealand, Ministry of Agriculture and Forestry, Ministry of Economic Development, Ministry of Health/National Radiation Laboratory, Te Puni Kōkiri, Treasury and Ministry of Transport.
  3. The Department of the Prime Minister and Cabinet has also been advised about this paper.

Comments from Departments

  1. The Ministry of Economic Development, the Treasury and the Department of Internal Affairs are supportive of the recommended National Policy Statement.  The Department of Conservation, the Ministry of Agriculture and Forestry, Te Puni Kōkiri and the Ministry of Health have raised concerns about policies in the recommended National Policy Statement.  A particular concern of departments is about the places and values not listed in Policy 8 (avoiding adverse effect on the rural environment).  For example, the Ministry of Agriculture has sought specific mention of established rural activities, like existing airstrips used for top-dressing, for coverage by Policy 8.  The Department of Conservation is concerned that while ‘outstanding natural landscapes’ (part of section 6(b)) is listed in Policy 8 most places/values listed in sections 6 and 7, of the Resource Management Act (eg. areas of significant indigenous vegetation), are not.  Policy 8 also mentions existing ‘sensitive activities’, which are defined as: schools, residential, hospitals and similar land uses.  Te Puni Kōkiri wishes to seek marae and papakainga listed as ‘sensitive activities’.
  2. I believe that the changes sought by these departments are significant alterations to the recommended National Policy Statement, and risk changing the intent and meaning of several polices.  I consider that the issued raised by departments can be addressed by councils when they come to develop plan rules or methods to give effect to the National Policy Statement through the public process set out in the First Schedule of the Resource Management Act.  The Ministry will also prepare non-statutory guidance on to assist decision-makers in implementing the National Policy Statement.
  3. The National Policy Statement is to set out a national policy framework for decision-makers, not to paraphrase or repeat provisions of the Resource Management Act.  Stakeholders including Federated Farmers, New Era Energy and iwi all submitted to the Board of Inquiry and raised issues now the subject of concern from departments.  I consider it inappropriate to now seek to re-write the recommended National Policy Statement.
  4. I appointed a Board of Inquiry with sufficient expertise to hear submissions and rely on its judgement to make the recommendations on the proposed National Policy Statement.

Financial implications

  1. There are no financial implications arising from this paper.  Costs will be met through Vote Environment.

Human rights and gender implications

  1. There are no human rights or gender implications arising from this paper.

Legislative implications

  1. The National Policy Statement will be approved by Order in Council.

Regulatory impact statement

  1. The Ministry for the Environment confirms that the principles of the Code of Good Regulatory Practice and the regulatory impact analysis requirements, including the consultation requirements, have been complied with.  A RIS was prepared and a draft version of the RIS circulated with the Cabinet paper for departmental consultation.
  2. The Regulatory Impact Analysis Unit (RIAU) considers that regulatory impact analysis and the RIS to be adequate according to the adequacy criteria.  The RIAU notes that the consultation process for National Policy Statements (NPS), as set out in the Resource Management Act, has been followed.  This means that key stakeholders have not been consulted on the final NPS.

Recommendations

  1. The Minister for the Environment recommends that the Committee:
    1. Note that the Board of Inquiry on the proposed National Policy Statement on Electricity Transmission has submitted its report and recommendations
    2. Note that the Minister for the Environment has considered the report and recommendations of the Board of Inquiry and has decided to adopt the recommendations of the Board of Inquiry on the proposed National Policy Statement on Electricity Transmission, subject to a small number of editorial and technical changes
    3. Approve the attached National Policy Statement on Electricity Transmission (Appendix 2) that sets out an Objective and policies to enable the management of the electricity transmission network
    4. Authorise the submission to the Executive Council of the National Policy Statement on Electricity Transmission
    5. Note that the National Policy Statement on Electricity Transmission will come into effect 28 days after its notification in the New Zealand Gazette
    6. Note that the Minister for the Environment will prepare non-statutory guidance on the National Policy Statement on Electricity Transmission to assist decision-makers.

 

 

 

______________________________

Hon Trevor Mallard
Minister for the Environment

 

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Last updated: 6 May 2008