Information Sheet 2 - First Steps
[ Last Updated 12 January 2006 ]
March 2005
Also available as: Scoping a National Policy Statement on Electricity Transmission - Information Sheet 2 - First Steps [139 KB PDF]
Contents
Reference Group Begins its Work
The electricity transmission reference group ("the Reference Group") held its second meeting in Wellington on 25 February 2005.
The meeting covered:
- initial discussion of the possible scope of a national policy statement (NPS) on electricity transmission;
- initial discussion about how the group might evaluate the appropriateness of an NPS and its contents (in accordance with section 32 of the Resource Management Act);
- confirmation of the list of contact persons to be kept informed about the process.
First Thoughts on the Possible Scope of an NPS
As outlined in the last information sheet, the Reference Group has been asked to report to government on the possible scope of an NPS on electricity transmission.
After considering the possible scope, the Reference Group will offer a view about the merits of such an NPS.
Initial suggestions on the scope of an NPS include the following:
1. Policies directed at explaining how electricity transmission should be regarded within the purpose, principles and terminology of the Act. This might also address the question of what the positive effects or benefits of transmission might be and how these should (or should not) be taken into consideration during decision-making.
2. Policies directed at setting out what the adverse environmental effects of electricity transmission might be and how these effects should be avoided, remedied or mitigated.
3. Policies directed at recognising the need to manage the conflicts between electricity transmission and other activities. For example, activities that might disrupt or interfere with transmission and activities that might be sensitive to the effects of transmission. This group of policies might be characterised as managing effects on the transmission network.
4. Policies that address matters of process. For example, policies might set out expectations about the form, timing and scale of consultation that ought to be used when planning a new transmission line.
Exploring and developing the scope of an NPS requires further work. The Reference Group will look at:
- evidence of the sorts of issues and challenges providers of the national grid face in the absence of an NPS;
- how district and regional plans and the courts currently identify and weigh positive and negative effects of major utilities ;
- how established planning practice manages conflicts between activities - particularly those involving major utilities;
- the extent to which it is legally possible to include policies relating to process matters in an NPS.
The third Reference Group meeting, scheduled for 17 March, will consider the information requested.
Evaluating Appropriateness
Section 32 of the RMA requires that before notifying an NPS (and again before approving an NPS) the Minister carry out an evaluation of the appropriateness of what is proposed (see box 1: What Is Section 32?).
The Reference Group discussed this requirement and how the duty may be fulfilled.
The findings of the section 32 evaluation will be a key input to the decision about whether an NPS would be beneficial.
The key test is whether the policy is "appropriate". The Act doesn't define precisely what this means but the Reference Group agreed to look at:
- relevance to, and consistency with, the purpose of the Act;
- the necessity for the policy;
- the effectiveness of the policy;
- the efficiency of the policy (in terms of benefits outweighing costs and the objective being attained at least cost).
What Is Section 32?
Section 32 is titled "Consideration of alternatives, benefits and costs". It is designed to ensure that good policy processes are followed when developing new rules or policies.
The key part states:
(3) An evaluation must examine-
(a) the extent to which each objective is the most appropriate way to achieve the purpose of this Act; and
(b) whether, having regard to their efficiency and effectiveness, the policies, rules, or other methods are the most appropriate for achieving the objectives.
(4) For the purposes of this examination, an evaluation must take into account-
(a) the benefits and costs of policies, rules, or other methods; and
(b) the risk of acting or not acting if there is uncertain or insufficient information about the subject matter of the policies, rules, or other methods.
Carrying out such an evaluation will require a great deal of information gathering and research.
Already, work is underway analysing the contents of existing regional and district plans. This will help to determine whether certain policies in an NPS are "necessary". It will also help to determine how many local authorities might have to change their planning documents and how extensive (and expensive) such changes could be.
Other work will be undertaken to:
- review case law to see how effective certain types of policies have been in decision-making;
- review international best practice on managing effects of electricity transmission;
- interview practitioners on current practice;
- assess where costs and benefits of policies would fall and estimate the significance of these;
- evaluate potential of an NPS to bring greater consistency to the recognition and protection of culturally significant places during planning, constructing, and maintenance of the national grid.
Once the Reference Group has a clear idea of what the NPS will include, it will be possible to undertake a cost benefit analysis.
Future information sheets will keep readers informed of the research findings.
Building the Contact List
This information sheet has been delivered to over 300 contacts. This includes all 86 local authorities, 32 businesses and industry/utility groups, 11 environmental and/or consumer groups, 168 iwi groups and six professional associations.
The website is now up and running and further information will be posted when it becomes available.
To receive the information sheets (or to take your name off the contacts list) email:
transmission-nps@med.govt.nz
Consultation Reminder
Opportunities to comment on this issue will be provided:
- the Reference Group's draft report will be circulated for comment in May-June of this year;
- if Ministers decide to proceed with an NPS, the formal RMA process to prepare an NPS will be followed. This will include an opportunity to make formal submissions.
Refer to information sheet no. 1 for further information on the process.
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