Environment Victoria Budget Submission 2015

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Environment Victoria Budget Submission 2015 A four year plan for Victoria’s environment SUMMARY The 2014 election marks the end of four years of attacks on the environment by the previous Baillieu-Napthine government. The election result gives the Andrews Labor government a strong foundation to pursue an ambitious and effective environmental and climate agenda. Environment Victoria has over 60,000 Victorian supporters. They have been telling us that they expect this new Victorian government to lead and act quickly, decisively and strongly on climate change, renewable energy, restoring rivers and wetlands and rapidly accelerating energy and water efficiency initiatives. The need for strong environmental action in Victoria is urgent. The State has a serious environmental deficit. Victoria continues to deplete its natural assets at unsustainable rates, resulting in mega-trends of climate change, resource scarcity and ecosystem degradation. To date, policies to address Victoria’s environmental deficit have been consistently inadequate, with rates of environmental damage outpacing often piecemeal responses from governments. Victorians want urgent action, and need it for the state’s future prosperity. Protecting and restoring our environment will also be good for the state’s economy and social welfare. Detailed modelling commissioned by The Future Economy Group identifies climate change and resource scarcity as key business drivers of the 21st century. The economies that develop and commercialise solutions to these problems and align environmental and economic outcomes will be rewarded by investors, business and communities throughout the 21st century. There is an opportunity for the Andrews Labor government to develop a forward-looking, comprehensive policy agenda that addresses both the environmental and economic challenges the state faces. Such a progressive policy agenda presents generational political leadership opportunities for Victoria on a national and international scale. 1 Environment Victoria Budget Submission 2015


INTRODUCTION Environment Victoria welcomes the environmental commitments that were made by the ALP in the 2014 election campaign, but the Our Environment Our Future overarching policy document lacked detail and ambition on how a positive and comprehensive vision for the state’s environment would be delivered. Environment Victoria has 45 years of experience in environmental and climate policy development. Before the 2014 election, we released a detailed policy document setting out the key priorities for the next government to address in order to safeguard nature and take action on climate change. This document was entitled “Towards the 2014 Victorian Election: A 21st century agenda to restore Victoria’s environment, safeguard Victorian communities and jobs and rise to the global challenge of climate change”, and is attached as Appendix 1 to this Budget submission. The policies and priorities of 2014 remain the priorities of 2015-18. This budget submission updates our pre-election policy agenda and provides a staged, comprehensive environmental and climate policy plan for the full term of government, not just the next 12 months. Herein we provide our assessment on how election commitments could be best delivered, as well as outlining the additional steps that are essential for securing a healthy environment and a safe climate. What Victorians want For the two years leading up to the 2014 election, Environment Victoria invested deeply in community organising. Focusing on four key marginal seats, Environment Victoria knocked on over 11,800 doors and secured the pledges of over 6,000 undecided voters to vote for the environment. Environment Victoria’s campaign efforts had a material impact on voter behaviour and the outcome of the election in Frankston, Carrum, Mordialloc and Forest Hill. Additionally, exit polling showed that of those 6000 voters who pledged to ‘vote for the environment’, 40% of ‘pledgees’ stated that the pledge influenced their vote ‘to the full extent’ and another 21% said it influenced their vote ‘to some extent’. This exit polling demonstrates that environment and climate change were critical to the ALP’s success in these key seats at the 2014 state election. Broader research shows that the vast majority of Victorians expect state governments to do their fair share of the heavy lifting when it comes to climate policy and safeguarding nature. For example, 76% of Victorians believe that ‘the State Government has a responsibility to act to reduce greenhouse pollution’1 Four years of cuts to environment and climate programs means Victoria is no longer doing its fair share: Victoria once led the nation on a target to reduce greenhouse emissions, until that target was scrapped by the Coalition government in 2012; our rivers and ecosystems continue to decline in extent and condition; and retrograde steps introduced by the Coalition state government have wound back decades of hard-fought, community-driven environmental outcomes. The Andrews Government needs to turn this around in the next four years. 1

EMC Essential Research 2012 Benchmark Poll for Environment Victoria

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Priority areas Environment Victoria has identified the starting points for the major, urgent priorities for environmental and climate action. We have focused on ‘what needs to be done’ to avoid further serious environmental degradation and prevent a climate crisis. Labor’s policy document Our Environment Our Future says it will put the care and protection of the environment back on the agenda. This is an important first step, but success must ultimately be measured against outcomes rather than just a commitment to discuss. As Winston Churchill famously said, “it is no use saying, ‘we are doing our best.’ You have got to succeed in doing what is necessary.”

In addition to delivering election commitments and reversing the backwards environmental steps of the past four years, the Andrews Government must specifically develop a serious and credible agenda in three key areas: 1) Developing a policy agenda for a safe climate and clean energy economy beginning by re-establishing a comprehensive climate change agenda 2) Developing a policy agenda for smart and sustainable homes, cities and communities, starting with delivering a step-change in household energy and water efficiency 3) Developing a policy agenda for protecting and restoring Victoria’s nature with an early focus on protecting our freshwater environments and creating the Great Forest National Park As well as delivering on election commitments and developing a policy agenda in the above 3 areas, there is an urgent need for the Andrews government to rebuild the grossly diminished public sector in the environmental field, and ‘reinstate the furniture ‘ by reintroducing some small but important programs established by the former ALP state government. This includes (but is not limited to):     

Reinstate and strengthen the Greener Government Buildings program Re-establish and strengthen the Environment and Resource Efficiency Plans (EREP) program A stronger and well-resourced Sustainability Victoria Rebuilding, restaffing and increasing resourcing of Parks Victoria Reintroducing an effective Solar Water Heating rebate

WHAT DOES SUCCESS LOOK LIKE? It is important to understand what success looks like for each of the priority policy areas. Below, we outline what Environment Victoria would like the Andrews Government to achieve in our key focus areas over the next four years. 3 Environment Victoria Budget Submission 2015


1. REBUILDING A COMPREHENSIVE CLIMATE CHANGE AGENDA Labor was elected in November 2014 with a policy to return Victoria to being a leader on climate change and to be “a model for every other state”. This leadership ambition has been reiterated since the election. This is very welcome and is to be commended. Whilst the backwards steps over the preceding four years leaves much work to be done for Victoria, there are immense leadership opportunities for Victoria on a national, and international scale to rebuild a comprehensive climate change agenda that delivers early and fast reductions in greenhouse gas emissions. Environment Victoria’s expectations are that by 2018:     

Victoria’s greenhouse gas emissions have fallen significantly compared to 2014 levels; Renewable energy provides a much greater proportion of our electricity demand, including a growing community energy sector; The closure of the oldest and dirtiest power stations has been completed or is well underway, with appropriate sustainable development plans for regional economies; Government decisions are increasingly subject to an ‘emissions test’ which includes examination of Victoria’s contribution to contributing to emissions interstate or overseas through the export of coal or gas; The burden on communities of fossil fuel extraction and combustion has been significantly reduced or eliminated.

To achieve these outcomes, Environment Victoria recommends that the State Government’s top priorities for implementation by the end of 2015 should be: a) Implementing the ALP election commitments with resourcing in the 2015-2016 State Budget including: 1. An Emissions Reduction Target that (a) aligns with scientific advice on avoiding dangerous climate change, (b) is reinstated into the Climate Change Act. This should be followed in 2015 by the announcement of a comprehensive climate policy framework that outlines how the target will be achieved 2. Kick-starting the renewable energy industry through (a) reducing set-back requirements for wind turbines and removing restrictive no-go zones, (b) assisting and funding community renewable energy projects; (c) financing new renewable energy projects with the New Energy Jobs Fund. 3. Ensure a fair deal for solar energy by directing the Essential Services Commission to conduct a public review into the benefits of distributed generation, and then acting on the recommendations of the review 4. Conduct a Parliamentary inquiry on unconventional gas that addresses environmental, human health and supply/demand/efficiency issues. 4 Environment Victoria Budget Submission 2015


5. Require coal mine operators to announce accelerated rehabilitation timelines and reviewing rehabilitation bonds. b) Developing a framework for climate leadership for this term of government including: 1. Working with other states to explore the potential of a multi-state emissions trading scheme or, failing that, introducing emissions performance standards for power stations to reduce emissions from electricity generation. 2. Developing a more ambitious agenda to attract renewable energy investment to Victoria including exploring options for a state-based renewable energy target with procurement measures like the ACT government’s auctions for renewable energy2.

Further details on these priorities and other necessary actions are given below, together with suggestions for future priorities and actions over the 4-year term of government

* Election commitments

1. Introducing an Emissions Reduction Target and a comprehensive policy framework for climate leadership

2015  Commission the Climate Change Authority to determine an environmentally appropriate state Emissions Reduction Target (ERT). The target should set short timeframes (eg. 2018) or prescribe a percentage of emissions reductions to be achieved annually. A review of the Climate Change Act should result in the re-introduction of the target into legislation by the end of 2015. 

2

Announce a policy framework for achieving the target. This could be driven by a multi-state emissions trading scheme, or by emissions performance standards for electricity generation

http://www.environment.act.gov.au/energy/wind_power

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2016-2018 Resource and implement a comprehensive suite of policies for achieving the Emissions Reduction Target.

Outcomes Reducing emissions

Schedule 2 of the Climate Change Act should be amended to include assessment of government projects that could affect state greenhouse gas emissions, including an assessment of the social cost of carbon.

All government decisions are made with clear consideration of how it will affect state greenhouse gas emissions.

Lower the CO2 emissions threshold for Environmental Effects Statements, and require the EES carbon pollution assessment to also consider third party emissions associated with the project. Revise government procurement policies and

Phasing out coal


facilities. 2. Kick-starting the renewable energy industry, including the release of a Renewable Energy Investment Strategy

  

3. Ensure a fair deal for solar energy

Reduce wind turbine set-back from 2km to 1km in VC82 planning amendment and remove 5km exclusion zones* Distribute $5m from New Energy Jobs Fund to renewable energy projects * Provide $100k for the development of the Woodend community solar farm.*Provide $200k for the 100% Renewable Newstead project.* Develop and release the promised Renewable Energy Investment strategy. * Policy mechanisms could include a reverse-auction feed-in tariff scheme as delivered successfully in the ACT, or a contracts-for-difference scheme that complements the Federal RET. Additionally, the strategy should include a research, development and demonstration program for energy storage options; a revolving fund to support grid connection for new renewable energy projects; and a renewable energy skills training program, such as a Centre for Excellence for installers/practitioners. Direct the Essential Services Commission to conduct a public inquiry into (1) the benefits of distributed generation, including the reduction of peak demand, and whether these benefits are reflected in existing feed-in tariffs; (2) discrimination against rooftop solar owners; (3) fair access to the electricity

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energy supply contracts to provide additional support to low-emissions goods and services. Distribute the remaining committed resources ($15m) from the New Energy Jobs Fund. Provide multi-year resourcing for the Renewable Energy Investment Strategy.

Boosting renewable energy

Develop a template for further local 100% renewable energy transition projects. Provide funding for Sustainability Victoria to support ten additional community solar programs over the 2016-2018 period.

Complete any necessary regulatory changes to ensure (1) rooftop solar owners are not being discriminated against by retailers, (2) distribution businesses are required to allow grid connection for any renewable energy project.

Boosting renewable energy


 4. Address proposed and existing coal and gas activity

5. Protecting communities through accelerated mine rehabilitation and reducing the impact of fossil fuels

grid.* Raise feed-in tariffs to match residential retail prices. Open a Parliamentary Inquiry on unconventional gas.* The terms of reference should direct the inquiry to look at the science on both environmental and health impacts of unconventional gas, as well as issues relating to supply, demand and effect of unconventional gas on retail prices. End the ‘Gas for the Regions’ program which is subsidising a high-cost and uneconomic service for consumers.

Re-open the Hazelwood Inquiry to assess options for accelerated mine rehabilitation.* This should include a process for establishing community expectation of rehabilitation outcomes. Consistent with election commitments, rehabilitation bonds at all Victorian mines should be recalibrated to the full anticipated cost of rehabilitation. The Auditor General’s office should assess the existing financial risk to which the state government is exposed through current bond levels.

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Begin development of a Gippsland and Latrobe Valley regional development plan. This should explore options that do not rely on new coal or gas projects, and that plans for the phase-out of existing coal-fired power generation. Announce a process for the closure of at least one large and one small coal-fired power station, with a timeline for subsequent closure of additional units. This could be achieved either via a multi-state price on carbon or through the introduction of Victorian Government emissions performance standards. Ensure mine operators are delivering on accelerated rehabilitation timelines and rehabilitation bonds reflect remediation costs Adjust SO2 air pollution standards in line with EU/US standards to protect the Anglesea community from pollution. Through the review of the EPA, require the EPA to regulate CO2 emissions. Introduce new compliance standards for PM2.5 and PM10, in line with the recommendations from the 2011 Ambient Air NEPM review.

Reducing burden of fossil fuels on communities Reducing emissions Phasing out coal

Reduce burden of fossil fuels on communities


2.

AN ACTION PLAN FOR SMART AND SUSTAINABLE HOMES, CITIES AND COMMUNITIES

The previous state ALP Government recognised the economic and job opportunities of the future economy in its Green Jobs Plan, and at times in the 2014 election campaign identified opportunities for Victoria to develop new industries and jobs that assist to protect the environment. There is an outstanding opportunity for the Andrews Government to deliver and build upon election commitments by creating jobs growth opportunities in the energy efficiency arena.

Labor’s 2014 election platform acknowledged that the majority of Victorians live in homes with an energy efficiency rating of two stars or less, and that the poor quality of our housing stock is contributing to higher utility bills and financial stress particularly for low-income households. In response, the 2014 election platform articulated a ‘One Million Stars’ goal to improve the cumulative star rating of all Victorian homes by one million additional star rating points. This followed Labor’s 2010 promise to lift the average energy efficiency of Victorian homes to five stars by 2020. There are one million low income households in Victoria, who despite typically spending a higher than average proportion of disposable income on energy, are largely missing out on the benefits of efficiency enjoyed by other Victorians because they cannot afford the up-front costs of basic improvements, and/or because they rent. Retrofitting one million low income households to improve their energy efficiency from the current average of 2 stars to an average of 5 stars would deliver emissions reductions of over 2 million tonnes annually, water savings of 32 billion litres annually, annual energy bill savings of $300 - $500 per household, and create up to 6,700 new trades and manufacturing jobs. And it would save State Government $2.5 billion over 20 years in energy concession payments. While achieving the 5-star average goal would require substantial investment, direct government investment in home retrofits would primarily target Victoria’s 234,000 owner-occupier households in the lowest income bracket. For other households, a combination of financial incentives (such as rebates and market-based schemes such as VEET), innovative financing arrangements such as Environmental Upgrade Agreements and regulatory measures such as minimum standards, would act to leverage complementary private investment from homeowners and landlords, so as to minimise direct cost to government. Taking the opportunity to integrate water efficiency measures into the retrofit program would also improve Victoria’s resilience against future droughts, avoiding costly future investment in additional supply augmentation such as desalination. Environment Victoria recommends that the State Government’s top priorities for implementation by the end of 2015 should be: 8 Environment Victoria Budget Submission 2015


1. Undertake a comprehensive review of the Victorian Energy Efficiency Target scheme so as to maximise its effectiveness in contributing to energy efficiency objectives and minimise hurdles to participation by low-income households. 2. Complete a 5,000 to 10,000 home pilot program to test the effectiveness of efficiency measures and implementation models on different dwelling types across a range of climate zones, so as to provide a solid basis for the roll-out of a comprehensive retrofit program targeting Victoria’s one million concession card-holding households in subsequent years. 3. Set a goal to upgrade Victoria’s public and community housing dwellings to an average 5 star and 100 litres per person per day standard within 10 years. Commit additional investment in asset management and maintenance programs and reform appliance replacement policies to reflect changing technology so as to achieve this goal. 4. Commit to Introducing minimum energy and water efficiency performance standards at the point of sale or lease of residential property by July 2016. 5. Reinstate financial incentive and behaviour change programs axed by the Coalition government, and commit to introducing additional assistance and incentive measures as necessary (based on outcomes of retrofit pilot) to assist homeowners and landlords in meeting the new standards. 6. Set a goal of achieving zero net carbon and water-efficient new buildings by 2020. 7. Set a target to recover 80 percent of total solid waste by 2016. Expand the Extended Producer Responsibility (EPR) scheme to include all electronic waste and ban the disposal of any product covered by an EPR scheme to landfill. Reintroduce public reporting on progress towards targets. Set a goal to ban the disposal of organic material to landfill in this term of government and build dedicated organic waste treatment facilities. 8. Recognise and build the links between a healthy environment and a healthy ecosystem by implementing the recommendations of the Future Economy Group’s Plan for Victoria.

Further details on these top priorities and other necessary actions are given below, together with suggestions for future priorities and actions over the 4 year term of government. * Election commitments

2015 1. Maximise  Retain 5.4 million tonne CO2-e effectiveness of target* Victorian Energy  Undertake review and model 9 Environment Victoria Budget Submission 2015

2016 - 2018 Expand VEET scheme in line with recommendations for improving effectiveness and equity.

Outcomes by 2018 VEET is making an effective contribution to State energy demand management objective and easing cost-of-living


Efficiency Target   2. Deliver a comprehensive and funded retrofit program targeting Victoria’s most disadvantaged homeowners by 2025

3. Deliver a comprehensive and funded retrofit program for public and community housing properties by 2025

4. Introduce minimum energy and water efficiency standards at point of sale or lease by July 2016 5. Comprehensive range of financial and regulatory measures

higher targets (e.g. 15Mt and 30Mt) for future years* Extend VEET to energy efficiency technologies not currently supported, e.g. insulation. Explore opportunity to harmonise VEET with other state schemes. In collaboration with key partners with expertise in this area (such as local government), complete a 5,000 to 10,000 home pilot program to test the effectiveness of efficiency measures on different dwelling types across a range of Victorian climate zones

pressures for all Victorians, particularly low-income households

Roll out a comprehensive retrofit program, completing retrofits for 25,000 low-income owner-occupier households per year Establish and fund a mix of financial and regulatory measures to drive investment in the upgrade of the rest of Victoria’s low-income households (see below)

At least 75,000 of Victoria’s 250,000 most disadvantaged home-owners have received a comprehensive energy and water efficiency upgrade, with a view to entire 250,000 cohort upgraded within 10 years Victoria is on track to achieving one million home retrofit target by 2025

Review bias towards gas in Office of Housing appliance replacement policy, to reflect recent technology and pricing changes Boost asset maintenance program to deliver retrofits for all suitable properties within 10 years

Boost asset maintenance program to deliver retrofits for all suitable properties within 10 years

Program is on track to deliver a comprehensive retrofit program for public and community housing properties within 10 years

Set a goal of introducing minimum 5 star and 100 litre per person per day performance standards for homes at the point of sale or lease

Introduce minimum 5 star and 100 litre per person per day performance standards at point of sale or lease by July 2016

All Victorian homes available for purchase or rental in Victoria meet minimum energy and water efficiency performance standards

Reinstate financial incentive and behaviour change programs axed by the Coalition government, e.g.

Expand the range of financial incentives and assistance available to homeowners and landlords, based on the

All Victorian home-owners and landlords, particularly low-income home owners and tenants, have access to assistance and

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in place to assist home-owners, landlords business and government achieve the minimum standards and improve their performance 6. Set a goal of achieving zero net carbon and waterefficient new buildings by 2020

7. Encourage producer responsibility

    

8. Recognise and build the links between a healthy environment and a healthy

solar hot water and water conservation rebates, HESS, EREP and GGB programs

outcomes of the retrofit pilot program (above), e.g. green loans, Environmental Upgrade Agreements etc.

incentives sufficient to support the upgrade of their homes

Establish a cross-sector taskforce by mid-2015 to define standards and develop pathways towards achieving this goal As an interim measure, standards for new homes should be increased to 8 stars by 2015, including the installation of solar hot water or a water tank

Implement recommendations of crosssector task-force

Victoria is leading the way in introducing zero net carbon and water-efficient new building standards by 2020

Set a target to recover 80 percent of total solid waste by 2016. Expand the Extended Producer Responsibility (EPR) scheme to include all electronic waste Ban the disposal of any product covered by an EPR scheme to landfill Reintroduce public reporting on progress towards targets Set a goal to ban the disposal of organic material in this term of government Establish a process and strong governance model to develop a Future Economy Plan for Victoria. This plan should be publicly

Introduce target to recover 80 percent of total solid waste in 2016 Report publicly on progress towards targets Build dedicated organic waste treatment facilities Ban the disposal of organic material to landfill

Victoria has achieved a substantial reduction in waste going to landfill, particularly organic and electronic waste and is achieving an 80% recovery target of total solid waste

Incorporate measures of natural capital in the 2016-17 State Budget and all future state budgets

Understand and measure the links between natural capital and the performance of the state economy

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ecosystem by implementing the recommendations of the Future Economy Group’s Plan for Victoria

9. Improve accountability for the environmental impacts of government decisionmaking

released in the first two years of the next term of government. Reinvigorate State of Environment reporting and adequately resource the office of the Commissioner for Environmental Sustainability to undertake comprehensive State of Environment reporting. Give the Auditor General power to explore environmental implications of government programs

Auditor General is regularly assessing and reporting on the environmental implications of government decisionmaking

Environmental considerations are embedded in government decision-making

3. PROTECTING AND RESTORING VICTORIA’S NATURE We live in the most cleared State in Australia with Victoria still losing 4,000 hectares of native vegetation each year. It is experiencing a biodiversity crisis with 30 percent of native animals and 44 percent of native plants listed as threatened. Our rivers, streams and wetlands continue to be degraded and Victoria’s marine and coastal environments still lack adequate protection and management. Labor has committed to work in partnership with councils, local communities, environmental groups and industries to put the care and protection of parts of our environment back on the agenda. This is a good starting point to develop and implement a comprehensive and progressive agenda to protect and restore the health of our freshwater environments and turn around decades of decline in condition. This conservation and restoration agenda needs clear targets and timeframes for action, to support regional jobs and investment in the communities that depend on a healthy environment. Environment Victoria’s expectations are that by 2018 the Victorian government has:    

Developed and implemented an Ecological Processes Management Plan Improved management of riparian land and fencing off 2,500 km priority river frontage per year Implemented the Murray-Darling Basin Plan on time and in full Strengthened the Victorian Water Act to enhance environmental protection

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       

Completed a VEAC inquiry into freshwater dependent ecosystems Enhanced threatened species protection Improved water quality Created the Great Forest National Park in the central highlands Ended completely native forest logging across Victoria Completed and implemented an overarching Biodiversity Strategy Strengthened protections of native vegetation and threatened plants and animals. Protected marine and coastal environments

Environment Victoria recommends that the State Government’s top priorities for implementation by the end of 2015 should be: 1. Review the previous Labor government’s Land and Biodiversity White Paper as a first step in developing a state-wide Ecological Processes Management (EPM) plan (as recommended by the Commissioner for Environmental Sustainability3). This EMP plan is needed to set state-wide targets for catchment and waterway condition and integrate natural resource management so that ecosystem service outcomes can improve 2. Develop a strategy for improving the management of riparian land and provide funding to fence off and revegetate 2,500 km of priority river banks per year. Fencing river banks to exclude livestock and revegetating them provides multiple benefits for water quality, wildlife and communities, and creates regional jobs 3. Reaffirm Victoria’s commitment to recovering the full volume of environmental water (3,200 GL) mandated by the Murray-Darling Basin Plan and seek out opportunities to remedy constraints on the delivery of environmental water in Victoria 4. Establish a VEAC inquiry into the condition and management of freshwater dependent ecosystems, including rivers, wetlands, estuaries and groundwater dependent ecosystems 5. Review the Victorian Water Act to identify opportunities to enhance the Environmental Water Reserve, align the Act with the requirements of the MurrayDarling Basin Plan and achieve Traditional Owners’ ambitions for recognition 6. Create an 8 GL environmental entitlement for the Thomson River, promised by successive governments since 2005 but not yet delivered

Further details on these top 5 priorities and other necessary actions are given below, together with suggestions for future priorities and actions over the 4-year term of government

3

CES (2013) Victoria: State of the Environment p232. Recommendation 1

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* Election commitments 2015 1.Develop  Review and update Ecological previous Labor Processes government’s Land & Management Biodiversity White plan Paper to focus on landscape-scale reconnection of fragmented landscapes. Develop state-wide biodiversity strategy * 2.Improved  Work with EV, CMAs management of and Landcare to develop riparian land Strategy for improving and fencing off our riparian land and 2,500 km river ways *; approve priority river funding for accelerated frontage per program ($50 million year recurrent funding to fence off 2,500 km river frontage per year) 3.Implement the Murray-Darling Basin Plan on time and in full

Reaffirm commitment to full volume of environmental water recovery (3,200GL) through Murray-Darling Basin Plan; work with MDBA to develop constraints management proposals and review supply measure business cases to ensure full suite of agreed Basin Plan 14 Environment Victoria Budget Submission 2015

2016 - 2018 Develop improved native vegetation regulations* Use these strategies as inputs to development of Ecological Processes Management (EMP) Plan with appropriate state-wide targets for ecological processes and ecosystem functions (see CES recommendations 1 & 2)

Outcomes NRM coordinated across state to increase ecosystem service outcomes and improve catchment condition

EPM Plan actions funded and implementation begun

Provide funding to CMAs to recruit staff and implement program, starting with high priority reaches identified in Regional Waterway Management Strategies. VEAC recommends additions to protected area estate, changes to licence conditions and management options for revegetated areas Roll out program to fence 2,500 km river bank pa. VEAC recommendations implemented Further priority reaches identified during update of Regional Waterway Management Strategies in 2018

Amend Victorian Water Act to assist development of Basin Plan compliant Water Resource Plans; ensure efficiency and constraints management projects have equal weighting with supply projects in SDL Adjustment process so that Basin Plan environmental objectives can be met Develop Basin Plan compliant Water Resource Plans for submission to MDBA in 2018, and start implementing constraints remediation and efficiency projects agreed through SDL Adjustment process Begin work on Long-Term Water Resource Assessments in 2017 as required under Victorian Water Act

2,500 km of river bank fenced per year, FFG Act listed threatening process brought under control, improvements to water quality, erosion control, local amenity and farm productivity; enhanced wildlife habitat and migration corridors established All necessary requirements are in place and water recovery is complete for full implementation of SDLs in 2019 and to make sure the health of northern Victoria’s iconic rivers and Ramsar listed wetlands improves


4. Strengthen the Victorian Water Act to enhance environmental protection

5. VEAC inquiry into freshwater dependent ecosystems

Create an 8 GL environmental entitlement for the Thomson River

Yarra River Protection Act

environmental objectives are met; publish long term environmental watering plan Review Victorian Water Act to identify opportunities to enhance the Environmental Water Reserve (EWR), to align the Act with requirements of Murray-Darling Basin Plan and to implement Integrated Water Cycle Management Initiate a VEAC inquiry into the condition and management of freshwater dependent ecosystems. This would be the first full inquiry since the LCC Rivers & Streams investigation in 1991 All preconditions for creation of the long promised entitlement have been met, requires funding and action. Entitlement added to VEWH portfolio Introduce Yarra River Protection Act to

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Passage of revised Act with improved definition of EWR (see CES recommendations 5 &6). Make additions to the EWR as required to meet revised objectives. Make regulations to improve the protection of planned environmental water and other water that contributes to environmental outcomes, especially in unregulated river systems Victorian Environmental Water Holder manages and reports on all categories of water in the EWR

The EWR has water of sufficient quantity, quality and reliability to protect and restore the health of freshwater environments

VEAC makes recommendations to improve the management of FWDEs including rivers, wetlands, estuaries and groundwater dependent ecosystems VEAC recommendations inform review of Victorian Waterway Management Strategy and development of revised priorities; also feed into long-term water resource assessments due in 2019 Regional WMSs updated to reflect new management priorities, actions implemented from 2018

Improvement in condition of rivers, wetlands, estuaries and GDEs

Thomson environmental entitlement delivered according to VEWH Seasonal Watering Plan

The Heritage listed Thomson River has adequate environmental water to meet flow recommendations and protect freshwater biodiversity The amenity and environmental values of

Establish fully funded Yarra River Protection Trust to standardise planning controls* and provide a central agency to coordinate river


Enhanced threatened species protection

Improve water quality

End grazing in national parks

Create a Great Forest national park

protect the river corridor from inappropriate development and improve amenity * Review Flora and Fauna Guarantee Act *and identify opportunities to enhance threatened species protection Public inquiry into the EPA *

management Yarra River Protection Act helps drive improvements in water quality

Melbourne’s iconic river are protected and enhanced

Passage of revised Act to enhance threatened species protection; Action plans for individual species developed/revised, funded and implemented

Decline in endangered species slowed

Revised State Environment Protection Policies (Waters of Victoria) to set water quality standards required for beneficial use Catchment actions to achieve SEPP standards identified and implemented through development of EPM plan

Impacts of diffuse pollution reduced, Water quality improves

Permanent removal of cattle from Alpine and Red Gum National Parks achieved in 2015 * Create a Great Forest National Parks in the central highlands

Ban maintained

Damage to fragile environments halted Water quality improves and habitat restored

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Scrap Vic Forests and commence a state-wide transition away from native forest logging into the certified plantation sector.



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