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Tuesday, August 27, 2024

Point of Order: Buzz from the Beehive - 27/8/24



Putting the foot down on the highways – and on driving towards more renewable electricity generation

The Cabinet in the past few days has stepped up a gear to recommend changes to the Fast-track Approvals Bill, not to stall progress with the 384 projects that have applied to be listed in the Bill but to remove ministers from the decision-making element of the fast-tracking process

It has also announced a raft of actions to address the serious risk to New Zealand’s energy security and affordability, and – among the latest Beehive announcements – it has announced how it is pressing ahead with a series of reforms to make it easier and cheaper to consent, build and maintain renewable electricity generation as well as electricity distribution and transmission.

But it is paving the way – or the highways and motorways – for motorists to put the foot down, too.

Transport Minister Simeon Brown says proposed increases in the speed limit to 110km/h on State Highway 1/76 Christchurch Southern Motorway to Rolleston will mean faster journey times for Kiwis travelling in and out of Christchurch from the south.

It could be argued that it is paving the way for Jobseeker benerficiaries to gain employment, too.

But at first blush, there’s a discriminatory element to this initiative: Social Development and Employment Minister Louise Upston says she is taking A ‘Beneficiaries-First’ approach to employment.

New targets will see a greater proportion of MSD’s spending on employment programmes go towards supporting people on Jobseeker benefits, rather than non-beneficiaries.

Latest from the Beehive

27 August 2024


Proposed speed limit increases to 110km/h on State Highway 1/76 Christchurch Southern Motorway to Rolleston will mean faster journey times for Kiwis travelling in and out of Christchurch from the south.

Speech


Introduction


New targets will see a greater proportion of MSD’s spending on employment programmes go towards supporting people on Jobseeker benefits, rather than non-beneficiaries.


Internal Affairs Minister Brooke van Velden says the Government has finalised the detailed terms of reference for Phase 2 of the Royal Commission of Inquiry into COVID-19 Lessons.

26 August 2024


The Government will progress a series of reforms to make it easier and cheaper to consent, build and maintain renewable electricity generation as well as electricity distribution and transmission.

RMA Reform Minister Chris Bishop and Energy Minister Simeon Brown sounded like greenies, as they enthused that “New Zealand has an exciting future powered by clean and green renewable electricity…”

True, they then talked of this being “buttressed by fossil fuels”.

But “Net Zero” came into considerations:

“Through electrification, we can supercharge our economy, tackle climate change, and strengthen our energy security,” Mr Brown says.

“Electrifying New Zealand’s economy is a key part of the Government’s plan to grow our economy and reduce emissions to achieve Net Zero 2050.”


It’s worth comparing and contrasting that with the sentiment reflected in a raft of critiques of the government’s fast-track and fossil-fuel decisions, such as the decision to again allow imports of liquefied natural gas and to permit drilling for gas:
But Simeon Brown says the government’s Electrify NZ plan aims to take advantage of New Zealand’s abundant renewable energy resources, “so that our cars, buses, trains, ferries, and manufacturers are increasingly powered by wind, water, and the sun.”

Chris Bishop says if the government is to achieve its ambitious goals for boosting the economy and reducing emissions, “we must make fundamental changes to our planning and regulatory settings.”

He cited a 2022 study for the Infrastructure Commission by Sapere which found that New Zealand infrastructure developers collectively spend $1.29 billion each year getting their projects consented and the cost of consenting has increased by 70 per cent since 2014.

Over 40 percent of our current renewable generation requires reconsenting in the next 10 years, and total demand on NZ’s consenting system is expected to increase by over 40 percent by 2050, he said.

“Put simply, we haven’t got a hope of improving energy security or achieving our climate goals with our current planning system.”

To give an example of how the RMA currently operates, Bishop noted that in 2003 the Te Apiti windfarm site took 77 days to consent and had 20 conditions attached to that consent.

The Mill Creek windfarm site, completed in 2014, took 1,437 days, and had 90 conditions attached.

Renewing consents for existing renewable power assets also took far too long, Bishop said.

Hearings and appeals to reconsent the Clyde and Roxburgh dams, and Wairakei, ran from 2001 to 2007. It took 18 years to re-consent the Raetihi hydro dam – and when that consent was finally renewed, the number of consent conditions had increased from 4 to 136.

“Paperwork has taken priority over prosperity in New Zealand, and the government is taking action.”

The Government’s Electrify NZ plan involves:
1. Establishing a one-stop-shop fast track approvals and permitting regime

The Fast-track Approvals Bill is currently before the Environment Select Committee and is expected to become law before the end of the year. Once law, the one-stop-shop regime will provide a pathway for major renewable energy and transmission projects to be consented sooner and more efficiently.

Nearly one in five projects that have been applied to be listed in the Fast Track Approvals Bill are renewable energy projects, indicating a strong level of interest.

2. Amendments to the RMA to speed up resource consenting

The government has agreed to legislate to reduce consent and re-consenting processing time for most renewable energy consents to be within 1 year, as well as extending the default lapse periods for renewable energy, transmission and local electricity lines consents from 5 years to 10 years.

The government also intends to increase the default consent duration to 35 years for renewable energy consents.

These changes will be advanced through the government’s second Resource Management Amendment Bill, to be introduced later in the year as part of the RMA Reform Phase Two.

3. Stronger national direction for renewable energy

The government is progressing changes to make it easier for national direction instruments under the RMA to be amended (through the first Resource Management Amendment Bill, currently before select committee). Once passed into law, the government will:
  • Amend the National Policy Statements for Renewable Electricity Generation and Electricity Transmission so they are far more directive and enabling of renewable electricity and transmission.
  • Develop further national direction to help enable a range of energy and infrastructure projects – including a new NPS-Infrastructure, and subsequent standards for different types of energy generation and infrastructure.
4. A new regime for offshore wind

The Government will introduce a Bill to enable a regime for offshore renewable energy to be in place by mid-2025 with the aim of opening a first feasibility permit round in late 2025. This regime will give developers greater confidence and certainty to invest and will enable the selection of developments that will deliver the most benefit for New Zealand. We are releasing decisions on the design of the regime today.

5. Updated regulatory settings for electricity networks and new connections

A range of work is underway by the Commerce Commission and the Electricity Authority to update a variety of regulatory settings so that New Zealand’s system can cope with the economy-wide shift to electrification – including supporting the Government’s goal to supercharge EV infrastructure.

Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton

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