EPA pollution offset pilots - an update
The South Creek Nutrient Offset Pilot
The South Creek Nutrient Offset Pilot, launched in August 2003 by the Minister for the Environment and the Director General of the (then) EPA, was the first pollution offset scheme to be trialled in NSW. It is a two-year voluntary pilot that allows NSW Department of Environment and Conservation (DEC) licensees and developers to offset nutrient loads by reducing pollution at locations outside (but within the catchment) of their sites. If the pilot is successful, a permanent scheme is possible.
Sydney Water and Landcom have contributed funds to implement nutrient reduction measures for diffuse sources. The credits generated from nutrient reduction measures can be used to comply with load-based licensing or used in a permanent scheme.
The DEC, as the Scheme Manager, is responsible for the pilot's administration. Agreements have been signed with landowners of field market and hydroponics gardens, and construction and implementation of measures, such as capturing and reusing irrigation runoff and modifying farming practices to reduce fertiliser use, have started at many of these sites. The measures are free of charge to landholders in exchange for a commitment to maintain the measure and allow access to their site for monitoring and demonstration of the results.
Once measures have been fully implemented, DEC will evaluate the pilot, including assessing the effectiveness of measures to reduce nutrients from diffuse sources, the costs involved and how to ensure the offset actions are maintained over time.
Salinity offset pilots program - Green offsets for sustainable regional development
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Green offsets for sustainable regional development
Institutional framework for implementing salinity offsets under the POEO Act
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This project was part of the National Market-based Instrument Pilots Program, under the National Action Plan for Salinity and Water Quality. The project managed salt loads to stressed rivers in the Murray-Darling Basin by undertaking pilot offsets in three areas of regional NSW where industry is expanding. The three pilot participants were:
- Ulan Coal Mine near Mudgee (Macquarie and Hunter catchments)
- Norske Skog Paper Mill in Albury (Murray catchment)
- Moree spa baths (Gwydir catchment).
The project began in August 2003 and was completed in June 2005 with the preparation of the final project report (offsets05259.pdf 437 kb). However, the offset measures established under this project will be ongoing, and DEC will continue to work with each of the participants to ensure that they establish and maintain appropriate offset programs, as needed.
The report highlights the following outcomes:
- The substantial implementation of a cost-effective offset program based on land management changes at Ulan Coal Mine has avoided the need for a desalination plant and will save the company about $91 million over the next 20 years. This is a great outcome for the mine and the environment.
- A greater than 40% reduction in the amount of salt that is discharged to the Mehi Creek from spa bath operators in Moree. The spa bath operators are planning to develop a system that will reclaim the salt content of the saline water that is still being discharged, as a saleable product for animal feeds and fertiliser. They are also investigating short-term offsets to address the discharge until a longer-term solution can be set up. The possibility of using offsets to reduce their impact in a cost effective way has helped to leverage this improvement.
- The investigation of a number of options to offset the additional salt that Norske Skog would discharge to the environment if it proceeds with its plant expansion plans.
- Cost estimates for a number of measures that might be used to offset salt in the future (see Appendix 5 of the report (offsets05259.pdf 437 kb).
- The development of an Institutional Framework that sets out DEC's experience with the use of pollution offsets and provides guidance about how to implement these offsets (framework05260.pdf 263 kb).
- A suggested monitoring and reporting regime for salinity offset programs based on land-use change (see Appendix 1 of the Institutional Framework (framework05260.pdf 263 kb)).
- A number of lessons, which will assist others that might be considering the use of offsets.
The programs for Norkse Skog and Moree spa baths are still at the stage of formulating offset programs. DEC will continue to work with Norske Skog and the group of Moree spa bath operators to establish effective offset programs.
This project has been invaluable in adding to our experience and knowledge about how offsets can be implemented in a practical way. DEC will continue to explore the potential application of offsets.