Rapid RM reform – introducing the Resource Management (Freshwater and Other Matters) Amendment Bill

Phase two of the resource management reform is well underway and the government has just introduced the first of two amendment bills to come. Meet the Resource Management (Freshwater and Other Matters) Amendment Bill.

A new Resource Management Amendment Bill has been introduced to Parliament with the intention of reducing ‘regulatory burden’ through targeted amendments to the Resource Management Act 1991 (RMA) and national direction. On the current drafting, these changes will only apply to new resource consent applications. We look at these changes in more detail below.

Changes in respect of the National Policy Statement for Freshwater Management (NPS-FM)

One notable change to the application of the NPS-FM is the exclusion of the hierarchy of obligations (Te Mana o Te Wai) from applying to new resource consent applications. The hierarchy requires that decision makers prioritise;

• First, the health and well-being of water bodies and freshwater ecosystems;
• second, the health needs of people; and
• third, the ability of people and communities to provide for their social, economic and cultural well-being.

Clause 23 of the Bill amends section 104 of the RMA, so that consent decisions are prevented from having regard to the provisions of the NPS-FM that set out the hierarchy of obligations. If the NPS-FM is subsequently amended, the Bill provides for the repeal of clause 23.

Regional councils remain obligated to give full effect to the NPS-FM, including the hierarchy, through their policy statements and plans.

Aligning the consenting pathway for coal mining with other mineral extraction activities

The NPSFM, National Policy Statement for Indigenous Biodiversity 2023 (NPS-IB) and the Resource Management (National Environmental Standards for Freshwater) Regulations 2020 (NES-F) all provide a consent pathway for mining activities in and near wetlands and Significant Natural Areas (SNAs) except new coal mining was previously excluded from this pathway with a sunset clause for existing coal mines.

This Bill seeks to update the mineral extraction consenting pathway so the coal mining exceptions are removed and all mineral extraction is treated the same.

Farming-related amendments

The Resource Management (Stock Exclusion) Regulations 2020 currently requires stock to be excluded from waterways on low sloped land with a map of low slope land incorporated by reference in the regulations and acts. The Bill repeals the maps and associated requirements so exclusion of affected stock will be managed on a case by case basis by freshwater farm plans and regional plan rules.

The NES-F also currently requires resource consent be obtained for intensive winter grazing that does not comply with certain conditions and includes stand-alone regulations to minimise adverse effects on freshwater from any pugging and ensure a vegetated ground cover is established once grazing is finished. This Bill repeals the intensive winter grazing and intensification regulations from the NES-F except for the ground cover and pugging standards.

Changes in respect of SNAs and the National Policy Statement for Indigenous Biodiversity 2023 (NPSIB)

The Bill proposed several changes to the application of the NPSIB.  This includes modifying obligations on local authorities to identify new Significant Natural Areas (SNAs) and include them in district plans. Currently councils must identify new SNAs in accordance with the policy statement and then notify plan changes to include those SNAs by specific timeframes.

This Bill suspends for three years the requirement on councils to identify and notify new SNAs using the NPSIB assessment criteria. This means that once the Bill is in law, councils do not need to take a consistent approach to identifying new SNAs or notify a plan change to include the identified SNAs or incorporate SNA assessments into plan reviews. The remainder of the NPSIB continues to apply.

Preparing and changing national direction

Finally, the Bill is intended to put in place a more efficient way to create and amend national direction. This includes removing the board of inquiry process.

It also enables the Minister to amend the national direction (excluding New Zealand Coastal Policy Statement) without using the standard process where the amendment is for one of a range of purposes, including to give effect to international obligations and to change timeframes. This extends the Minster’s discretion beyond the ordinary power to make minor corrections without the standard process.

Finally, section 32 no longer needs to be complied with when preparing national direction and instead a new section 32AB applies. Under section 32AB, reporting must consider effectiveness, impacts on the environment, the economy and reasonably practicable alternatives. Section 32AB also requires reports be cost-effective and proportionate to the significance of the proposal.

Next steps

Submissions on the Bill are now being accepted. These close on 30 June 2024.

Meanwhile, the Bill is currently with the Primary Production Select Committee for consideration. It is intended that the Bill will become law by the end of the year.

Want to know more?

If you want to discuss the RM Reform or make a submission on the Resource Management (Freshwater and Other Matters) Amendment Bill, please contact our specialist Resource Management team.

PDF version here.