Contents · IPART requirements detailed in their Reporting Manual. The Sydney catchment area covers almost 16,000 square kilometres. More than one-third is ... Pollution Source Assessment

Contents

INTRODUCTION .................................................................................................................. 1

1. WATER QUALITY SCIENCE ............................................................................................ 2

2. ENGAGED COMMUNITIES .............................................................................................. 5

3. LAND MANAGEMENT ...................................................................................................... 9

4. ENFORCEMENT AND SURVEILLANCE ........................................................................ 14

5. DEVELOPMENT IMPACT ASSESSMENT...................................................................... 16

6. SOURCE WATER PROTECTION ................................................................................... 19

FINANCIAL PERFORMANCE 2016-17 ............................................................................... 22

APPENDIX 1: OPERATING LICENCE AND CATCHMENT AUDIT RECOMMENDATIONS

UPDATE ............................................................................................................................. 23

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INTRODUCTION

WaterNSW protects the health of the Sydney catchment area to ensure reliable, quality drinking water is available for the 5 million people of Sydney and the Illawarra, Blue Mountains, Southern Highlands, Goulburn, and Shoalhaven regions. Each year WaterNSW reports on the work and activities in the catchment area. Under its licence to the Independent Pricing and Regulatory Tribunal (IPART) WaterNSW has specific annual reporting requirements for its catchment management activities. This report fulfils IPART requirements detailed in their Reporting Manual. The Sydney catchment area covers almost 16,000 square kilometres. More than one-third is important agricultural land for grazing, crops and horticulture, and just under one-third is national park and bushland. The area is home to 120,000 people living in 15 local government areas. WaterNSW works with a wide range of catchment stakeholders in response to water quality risk in the Sydney catchment area, and uses different tools and approaches to manage those risks. The six areas of focused risk management are: 1. Water quality science 2. Engaged communities 3. Land management 4. Enforcement and surveillance 5. Development impact assessment 6. Source water protection. This report outlines the planned and actual catchment activities undertaken in the WaterNSW catchment work program for 2016-17. This report also identifies where actions are addressing recommendations of previous Catchment or Operating Licence audits. Significant outcomes for the year:

Improved tools for analysis and forecasting GURA (water quality forecasting tool) was updated with 4-day rainfall data, and the Pollution Source Assessment Tool (PSAT) was used to assess water quality risk in the Oberon Dam and Duckmaloi Weir catchments.

Managed the Special Areas Surveillance and investigations resulted in penalty infringement notices, and extensive trail maintenance was undertaken for fire and operations.

Reduced mining risk Coal mine activities within Special Areas were closely scrutinised through the year. Advocacy by WaterNSW resulted in restrictions placed on longwall approvals at Dendrobium and Metropolitan Mines and a change in mining approach at Russell Vale Mine.

Hosted visitors and school students Over 77,000 people and 4,000 school students visited Warragamba Dam

Increased protection of source water Over 30 new graziers accepted financial assistance to treat erosion, improve land cover, and protect 60 km of waterways, and newly completed stormwater and sewerage projects have prevented around 20 tonnes of nutrient reaching local creeks.

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1. WATER QUALITY SCIENCE

Planned Activities 2016-17 Actual Activities 2016-17

1.1 Capturing Key Catchment Information

Regularly capture key catchment information in spatial and water quality databases1

The following datasets were captured and/or generated and stored in corporate databases:

Imported Rural Fire Service (RFS) data on the extent of fires in the Special Areas in the last 12 months

Wildfire severity data computed using pre and post satellite data

MODIS satellite data captured every 8 days from the Terra and Aqua instruments

Landsat data collected when available

Complete annual analysis of fire history and vegetation data to determine bushfire behaviour potential and priorities for hazard reduction

WaterNSW completed the annual analysis of hazard reduction burns and wildfires in the Special Areas and updated burn frequencies and vegetation fire thresholds. Data is stored in the WaterNSW geodatabase

1.2 Understanding Catchment Risks

Include rainfall forecasts and a management dashboard into the water quality event forecasting tool2

The GURA model has been upgraded to incorporate rainfall forecasts (4-days ahead). A prototype dashboard has been developed (in user acceptance testing site) but not finalised

Investigate and characterise natural organic matter sources in the Nepean catchment in relation to impacts on raw drinking water supply

The extended monitoring program was completed in June. Some site and temporal variation in natural organic matter were found

Continue to assess the impacts of longwall mining on the quantity and quality of water in catchment streams3

WaterNSW has regularly reviewed, scrutinised, and provided advice on management plans and environmental monitoring and impact reports

Investigate the use of environmental tracers for quantifying pollutant pathways as part of a toolbox of methodologies to identify catchment sources of faecal pollution

Further work on this topic is being covered under the Smart Monitoring for Microbial Risk Assessment Project

Complete milestone 1-3 of the ‘Smart Monitoring For

A 2-year WaterRA project commenced in June 2017

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Microbial Risk Assessment Project’ to identify catchment sources of faecal contamination4

Complete the extension of the Pollution Source Assessment Tool to encompass the Oberon Dam (Fish River) and Duckmaloi Weir catchments

The Pollution Source Assessment Tool has been extended to encompass the Oberon Dam and Duckmaloi Weir catchments. A draft report on the findings has been prepared

Validation of 2016 pollution source assessment against monitored water quality data in storage inflows

The pollution source assessment tool outputs for 2016 have been validated using monitored data

1.3 Scientific Evaluation of Catchment Actions

Complete the assessment of the impact on water quality where towns previously reliant on on-site sewage management systems are now connected to sewerage schemes5

Analysis of data identified a gap in mid-range flow events. Further water quality sampling has been initiated to enable a comprehensive analysis. The project will continue into 2017/18.

Evaluation of catchment interventions using analysis of satellite imagery, rainfall and grazing management practices data

WaterNSW has documented its methodology to routinely carry out these analyses. Key data has been collected and is currently being analysed.

Use of pollution source assessment tool in combination with water quality data to model and evaluate the impact of proposed catchment interventions on water quality in storage inflows

The Pollution Source Assessment Tool has been used in combination with monitored data to analyse the benefit of catchment interventions in grazing land. Outputs of this work are estimates of reduction in annual loads at inflow points to storages from various catchment intervention scenarios.

Planned outcomes 2016-17 Actual Outcomes 2016-17

Science underpins WaterNSW decisions about water quality risks and designing and evaluating catchment actions

The WaterNSW Science Program 2016-2020 details the forward program for research on catchments generally and in particular on the health of declared catchment areas

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Variations

The project to investigate the sources of natural organic matter was underspent as fewer than budgeted wet weather events occurred reducing sample collection and analysis expenditure by approximately $123,000. The smart monitoring for the microbial risk assessment has not progressed beyond reaching agreement on the scope. The project has taken longer than expected for the WaterRA stakeholders to reach agreement.

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2. ENGAGED COMMUNITIES


2.1 Capacity Building

Provide capacity building opportunities for councils and consultants on NorBE and related current recommended practices

Formal NorBE training for Shoalhaven Council (August 2016), Goulburn Mulwaree Council (November 2016), Blue Mountains Council (February 2017) and Queanbeyan Palerang Council (June 2017). Eleven new NorBE Tool registrations were recorded.

WaterNSW met with the eight major councils to build their capacity to apply NorBE. A range of tailored actions were implemented as an outcome.

Deliver targeted capacity building programs, with partner agencies, to graziers as part of the Rural Landscape Program

A seasonal update workshop was attended by 42 landholders at Robertson in October 2016. In December 2016, 16 landholders concluded a multi-session Prograze course

SE LLS also commenced a large-scale soil testing and fertiliser decision making course in November 2016 at four locations including Crookwell and Moss Vale

Design and deliver capacity building initiatives for councils and catchment communities to reduce impacts of failing onsite sewage systems on water quality

WaterNSW hosted a 1-day conference for councils in November 2016 on implementing best practice sewage and stormwater management. The theme was building resilience through influence and infrastructure

WaterNSW developed a contract to engage with landowners to understand what they need in a tool to help them effectively manage their on-site sewage systems

2.2 School Education

Deliver the Warragamba Dam school excursion program to approximately 3500 students

4055 primary, secondary, and tertiary students from over 79 schools and university groups have participated in the school excursion program

Pilot and evaluate a professional development program for primary school teachers and progress attainment of BOSTES professional development trainer accreditation

Two WaterNSW education staff are working to complete their Cert IV in Workplace training and assessment. This qualification is a requirement of NESA (formerly BOSTES) professional development trainer accreditation

A professional development program has been drafted and is ready to be sent out in a pilot evaluation format to teachers who have participated in the WaterNSW schools program.

Develop resources for Excursion information sheets have been

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communicating alignment between school excursion program and relevant NSW syllabus for the Australian Curriculum

developed using outcomes from the NSW education syllabus. The information sheets are used to provide teachers information on the lesson content in the WaterNSW school program and sent to teachers when they make an excursion enquiry

School excursions have been redesigned to align with the NSW syllabus and learning outcomes

2.3 Community Information

Host approximately 100,000 visitors at the Warragamba Dam Visitor Centre

Approximately 77,000 people were hosted at the Visitor Centre. Lower numbers than previous years possibly due to a number of total fire ban closures throughout the reporting period

Develop and evaluate temporary exhibitions at the Warragamba Dam Visitor Centre (and off site if required)

The ‘Who cares about the catchment?’ continued through the reporting period. Visitor surveys were carried out and the results have been compiled into a draft report

Complete content update and audio visual upgrade of permanent Water for Life exhibition

The audio visual content of the ‘Water for Life’ exhibition underwent a substantial update

Deliver best practice interpretation installations at WaterNSW sites to support visitor learning

Prospect Reservoir Outlet System Upgrade Project interpretation signage has been developed for roll out in 2017-18

Deliver a responsive WaterNSW website compatible with mobile, tablet, and desktop services

WaterNSW has updated its website to make it responsive for mobile, tablet, and desktop customers

Enhance water data content and functionality of WaterNSW website, including incorporation of former DPI Water web content and tools

Significant progress has been made on migrating DPI Water content and functionality into the WaterNSW website. Four of the six licensing topics have been prepared and the remaining two topics are nearing completion. A new online calculator has been delivered and weekly water availability reports have been added

Deliver a media program for communicating key WaterNSW information to stakeholders

WaterNSW has maintained an ongoing media program for communicating key information to stakeholders. WaterNSW issued more than 60 media releases, online community service announcements, and social media pronouncements in relation to dam operations, incident management, projects, catchment, and recreational management

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2.4 Community Involvement

Engage the community in project and policy development for the:

Stakeholder engagement plans have been prepared for Upper canal refurbishment, and work to allow access has been undertaken

Stakeholders and landowners associated with the Cataract tunnel remediation have been informed throughout the construction phase with letters and notifications

Stakeholder engagement plan for the electrical upgrade of the Upper Nepean Dam is complete

Upper Canal refurbishment

Cataract Tunnel remediation

Electrical upgrade of the Upper Nepean Dams

Gundungurra Indigenous Land Use Agreement

WaterNSW attended two meetings of the ILUA Consultative Committee in 2016

WaterNSW has finalised arrangements to host a temporary exhibition at the Warragamba Dam Visitor Centre in 2018 that celebrates Gundungurra cultural heritage


2.1 Capacity Building

Surveyed participants in WaterNSW capacity building programs report increased skills and knowledge of water quality issues and BMPs to reduce water quality risks

100% of surveyed participants attending the one day implementing best practice sewage and stormwater management conference reported that the presentations and discussions were relevant to their needs and that they have improved their understanding of the main themes of building resilience through influence and infrastructure

2.2 School Education

Surveyed participants are engaged and have an increased awareness of the risks to water quality and quantity

Primary school teachers reported that 99% of students participating in the WaterNSW school excursion program increased their understanding of:

Best practice catchment management techniques used to protect drinking water quality in the Sydney catchment area;

The role of WaterNSW in managing water quality and quantity in the Sydney catchment area; and

Potential impacts on water quality in the Sydney Catchment area.

2.3 Community Information

Surveyed participants are engaged and have an increased awareness of the work of WaterNSW and risks to water quality and

Visitor survey undertaken in December 2016 and January 2017 to evaluate the existing ‘Who cares about the catchment?’ temporary exhibition

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quantity 76% of surveyed participants agreed that the “Who cares about the catchment” exhibition gave them a greater understanding of where their drinking water comes from

Variations

WaterNSW rescheduled the roll out of ‘Living Waterways’ workshops to August 2017 to enable Healthy Land and Water to finalise consultation with state government (QLD) on the content prior to its delivery. This reduced expenditure by approximately $40,000. The development of an on-site sewage management tool has been delayed due to unexpected staff absences that were not replaced. Visitor numbers at the Warragamba Visitors Centre were lower than forecast due to closures during total fire bans. WaterNSW routinely closes recreation areas potentially affected by wildfire to protect public safety. The WaterNSW website upgrade is behind schedule with expenditure under budget by approximately $100,000.

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3. LAND MANAGEMENT


3.1 Fire Management

Minimise risks and impacts to life and property from wildfires by:

Completing at least 400 hectares of slashing to provide suitable fire break.

WaterNSW and NPWS (joint agencies) undertook 581 hectares of mechanical hazard reduction through slashing, trittering, reach mowing, and hand tool clearing in the Blue Mountains, Metropolitan, Woronora, and Shoalhaven Special Areas, and Braidwood Lands. Fire Trails treated included W4, W4I, W4H, the W10 and W11 series, 11B, 11C, 6B, 4, 5, 5A, 5E, 5F, 3, 3A, 3B, 3C, 3D, 15A and the Kangaloon fire trails

Undertake 20 km of forest mulching to maintain the width of fire breaks

A total of 177km of forest mulching was completed in the Blue Mountains, Metropolitan, and Warragamba Special Areas. Fire Trails treated included 7D, 7H, 14, 9, 9E, 6H and Hide-Away Bay

24km of forest mulching completed on WaterNSW Braidwood lands

Completing at least 15 hazard reduction burns

WaterNSW and NPWS undertook two hazard reduction Burns which reduced fuel loads across 57 hectares

Twenty-three hazard reduction burns did not proceed as a result of weather conditions being outside prescription. However, several areas have been prepared and are ready for hazard reduction as soon as conditions are suitable

3.2 Unsealed Roads

Maintain the network of unsealed roads to the required standard by completing at least 40 kilometre of maintenance to unsealed roads

WaterNSW and NPWS completed maintenance of 236 kilometres of roads and trails in the Special Areas including 8B, 7D, W4 Series, W7, Prospect Nature Reserve, Scotts Main Range, Mt Cookem, Branjan, Commodores and Old Cedar Road. A further 42 fire trails with a length of 237 kilometres were inspected with 13 fire trails added to the forward roadworks program

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3.3 Pests And Weeds

Control priority pests and weeds including:

WaterNSW and NPWS have undertaken 255 hours of priority pest control work including:

49 hours of rabbit control has been undertaken at Wingecarribee and Fitzroy Falls Dam

80 hours of dog control undertaken at Barallier and in the Metropolitan Special Area

56 hours of deer control were undertaken as part of the Northern Illawarra Deer Management Program (a tenure blind co-operative landholder pest control program). 51 deer were culled as part of the program operating in the Cordeaux catchment.

70 hours were spent controlling a new feral pig incursion in the Metropolitan Special Area

Remote and aerial culling operations in Warragamba resulted in 349 pigs, 131 goats, and 30 deer being taken

At least 350 hours of rabbit, dog, deer and fox control in the Special Areas

Continue the control of lantana, tree tobacco and privet on the foreshores of Lake Yarrunga

Work has continued around the foreshore of Lake Yarrunga using WaterNSW staff (560 hours) and Shoalhaven City Council (56 hours) under contract

Continue revegetation program after privet removal in and around Bendeela

Revegetation work around Bendeela camping area following privet removal is showing positive results. Tube stock (2500) were planted along Bendeela Creek and Lake Yarrunga. Maintenance of tube stock has been undertaken

Treat willow and blackberry across at least 20 hectares of Wingecarribee Swamp

24 hectare of Willow and Blackberry treated in Wingecarribee Swamp

Continue the control of serrated tussock and blackberry on our Braidwood lands

Over 600 hours of work completed on Braidwood Lands targeting blackberry, serrated tussock, broom and other environmental weeds

Undertake at least three inspections for water hyacinth on Lake Yarrunga

Two inspections have been undertaken with no hyacinth detected. Due to fire requirements and Total Fire Ban restrictions the third inspection was not completed

Obtain a permit to control Ludwigia on Prospect Reservoir and implement control program

An emergency permit was obtained to treat the entire Prospect foreshore and primary control completed for the entire lake. A weed map has been developed to guide spraying in October before seed set

WaterNSW has applied for a 5 year off label permit for management of the Ludwigia infestation around the Prospect Reservoir foreshore

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3.4 Soil Erosion

Progressively treat erosion on Katoomba Special Area

Planning continues on design specifications to address this issue

Review procurement model for undertaking active erosion control

Procurement options have been considered and an overall erosion control program developed for 2017-18

3.5 Grounds Maintenance

Maintain recreational facilities for individuals and families that are safe, educational and appropriate to their setting including:

Progressive rebranding of signage at picnic and recreations areas and installation of improved compliance signage

Woronora, Metropolitan and, Shoalhaven main entrance signs have been replaced with WaterNSW signage. The Warragamba site has also been rebadged. WaterNSW rebadging has occurred on other signs within the recreation areas.

Improvements to Bendeela facilities and maintenance of remote toilets in Kangaroo Valley

Repairs were completed to the Bendeela toilet facilities including roof repairs and toilet refurbishment. An additional demountable amenities block was installed

All remote area toilets were serviced at least once during the year, with over 8100 kilograms of solid waste removed from 18 toilets

Routinely inspect trees in recreation and picnic areas and carry out works to keep them safe

WaterNSW undertook maintenance or removal of trees at 14 recreational and picnic areas as identified by a specialist arborist report. 154 trees were maintained or removed

Routinely inspect and maintain safety and security barriers and fences around picnic areas

Routine hazard inspections identified a range of issues which were documented for future action. Improvements were made at Bendeela to isolate flood damaged areas, at Wingecarribee picnic area to replace damaged fencing, and at the Warragamba Recreation Area to install safety barriers to prevent falls

Complete a review of recreation area management

Preliminary site assessments of recreational areas/activities on and around WNSW storages indicated that facility standards varied substantially. WaterNSW has responded by developing a Recreational Management Improvement Program (RMIP). The RMIP will establish a strategic framework for WaterNSW’s recreational activities and guide the development of management processes, tools, and priority projects to enhance customer experience.

Seek external expressions of interest for future

Analysis has revealed there is low potential for a public/private leasing option at Bendeela. A

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management of the Bendeela Recreation Area

recommendation has been made that the Bendeela Masterplan should be developed for implementation by an external provider

3.6 Barriers and Fencing

Install and maintain appropriate barriers and fences including:

Repairs and maintenance were undertaken on 1018 metres of fencing and barriers

Repair barriers and fences that are damaged or vandalised

Install and replace fences on priority boundaries in the Special Areas and on our Braidwood lands

WaterNSW replaced or installed 3107 metres of barriers at strategic locations within Special Areas, including 1102 metres on Braidwood Lands. Six new gates and 29 signs were installed

3.7 Cultural Heritage

Continue to fully comply with legal requirements and Conservation Management Plans

All work has complied with existing Conservation Management Plans

Repair heritage stone works within heritage curtilage of dams and picnic areas

Scoping of repair works on collapsed stone walls at Avon Recreation Area completed

3.8 Reserve Management

Monitor and ensure the effective delivery of the National Parks and Wildlife Service Land Management Plan and the joint management of the SASPoM

NPWS land management works monitored in line with agreed conditions


Management of Special Areas and WaterNSW lands reduces the risks to water quality, ecological integrity and cultural heritage, as assessed every three years using the “State of the Parks” methodology

Data for State of the Special Area reporting has been collected on the baseline (2014) and questionnaires have been developed for the 2017 condition assessment. The results will be compared and reported in 2018

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Variations

The hazard reduction program was not completed due to unfavourable weather conditions however resources were used to ensure mechanical slash breaks were maintained. Expenditure on pests and weeds were lower than budget as less money was invested on Wingecarribee Swamp than expected in the final year of a 5 year program. A further two year program has been scoped to continue this work. No soil erosion works were completed whilst the business case was prepared and presented resulting in an under expenditure of approximately $105,000. The capital budget for the Bendeela camping ground upgrade was incorrectly phased into the 2016/17 financial year. This resulted in an under expenditure of $2,880,000. Budget will be reallocated to the 2018/19 and 2019/20 financial years. Catchment Infrastructure Assets renewals were delayed due to internal improvement of work health safety procedures and conflicts with other proposed future developments. This resulted in an under expenditure of $300,000. A financial provision of $520,000 was made in the accounts for remediation of potentially contaminated lands which resulted in the recreations areas project being over expended by about $500,000.

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4. ENFORCEMENT AND SURVEILLANCE


4.1 Special Area Enforcement

Conduct at least three joint compliance operations with interagency partners

WaterNSW completed two joint agency operations with NSW Police, NPWS, NSW Fisheries, and local councils. Two operations were cancelled, one due to resourcing issues and the other due to a major spill incident on a mining lease

Conduct 1,500 hours of Special Areas surveillance

1314 hours weekend surveillance completed

4.2 Investigations of illegal activity

Conduct investigations in response to reports / discovery of illegal activity

WaterNSW identified 22 matters for investigation. Resources were focussed on matters with the highest risk to water quality

Six investigations were finalised resulting in penalty infringement notices

The outcome of two investigations were identified as suitable for local court prosecutions.

One investigation remains current

The remaining matters were determined to be of lower risk and not pursued further

4.3 Consent applications

Advise and educate potential applicants about policy on why / when we grant Special Area access consent and application process

WaterNSW reviewed its processes for issuing access consents. Three key changes were made: - Information on the website was updated to

ensure it was clear and concise for applicants

- Initial response times were improved for applicants and to improve the information within the application

- Long term consent holders (e.g. utilities and traditional owners) were contacted two months before existing consents expired to ensure they were renewed on-time

Assess, determine and issue access consent applications with appropriate conditions

52 access consent requests were received and 41 were issued, three applications were withdrawn, two were refused and 6 consents have not yet been determined

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Surveillance, interagency compliance blitzes, client engagement during investigations and regulatory actions / notices by WaterNSW create an effective deterrence to repeat offending

WaterNSW issued eight environmental notices. Five of these resulted in reduced risks to water quality (clean-up notices). Other notices were directives to provide information to address issues that were impacting or had the potential to impact on water quality

Consents granted to enter Special Areas consistent with the intent and terms of the Regulation

41 access consents issued with appropriate conditions consistent with the Regulation

Access proposals with potential for significant impact are managed by imposing stronger conditions, more intensive induction training, or imposing a requirement for the group to be escorted by WaterNSW

Variations

Recruitment of new staff to undertake compliance activities was expected early in year, but was delayed. This resulted in under expenditure against processing consent applications and Special Area Enforcement. Budget allocated for Special Area Enforcement multi-agency operations, including helicopter usage, was not required.

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5. DEVELOPMENT IMPACT ASSESSMENT


5.1 Development and Activities

Provide support to councils for development assessment tools and guidelines including the NorBE tool

Formal NorBE training for Shoalhaven Council (August 2016), Goulburn Mulwaree Council (November 2016), Blue Mountains Council (February 2017) and Queanbeyan Palerang Council (June 2017). Phone support was provided to assist councils and consultants using the tool to undertake individual assessments. Eleven new NorBE Tool registrations were recorded.

Provide advice to proponents, councils and determining authorities on all high risk and state significant developments and influence their decision to ensure WaterNSW’s interests are protected

WaterNSW provided 170 advice letters to local councils on new development applications (concurrence 40), 39 advice letters to councils to modify existing development applications, 32 advice letters to councils to amend development applications prior to determination as required under SEPP (DWC) 2011, and signed-off on 54 positive covenants under the Conveyancing Act 1919

25 advice letters were provided to the Department of Planning and Environment on state significant developments. All of these development proposals had potential to impact on water quality, catchment health, or water supply.

148 advice letters provided to planning authorities on external proposals that are not concurrence matters but could potentially affect water supply infrastructure, lands and assets.

64 advice letters to councils and the Department of Planning and Environment on planning proposals, regional plans, and other matters that could potentially impact on water quality

In coordination with councils check compliance with concurrence conditions where there is a specific requirement to engage with WaterNSW

Meetings held with eight major catchment councils to reach agreement on cooperation and process

Ten development applications have been randomly selected for checking compliance with concurrence conditions

Prepare current recommended practices for ‘small bio-retention systems’

No activities recorded for this period due to resourcing issues and other organisational priorities

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5.2 Land Use Planning

Provide advice to local councils on rezoning proposals, planning proposals, local growth strategies, rural land strategies and Development Control Plans

Provided advice on planning proposals, Strategic Land and Water Capability Assessments, and NULA maps to a number of local government areas

Provide advice to the Department of Planning and Environment on key changes to planning law, policies, planning instruments, regional growth plans and tools that affect the catchments and water infrastructure

Provided advice to Department of Planning and Environment in relation to Regional Plans for Central West, Orana, South East, Tablelands, and Illawarra Shoalhaven; and on proposed amendments to legislation and associated codes and guidelines.

5.3 Mining

Advocate WaterNSW Principles for Mining and Coal Seam Gas Impacts in all written advice, submissions and discussions about existing mining and proposals in the catchment and Controlled Areas

WaterNSW’s Principles have been advocated, through submissions to applications, advice on relevant issues in project meetings with regulators, and through representation on the Senior Officer’s Resource Assessment Committee

Detailed submissions were made to the Department of Planning and Environment on both the Dendrobium Mine Area 3B Longwalls 14-18 Subsidence Management Plan application and the Metropolitan Mine Longwalls 301-303 Extraction Plan. A detailed submission was also made on the Hume Coal EIS

Develop a risk-based assessment framework for evaluating future mining proposals, and incorporate this framework into future revisions of WaterNSW’s Mining Principles and positions on mining in the declared catchment and Controlled Areas

Work has progressed and will continue into the 2018 financial year

Provide input into relevant discussions with mining companies operating in the catchment through the agreed Governance Protocols

WaterNSW attended Executive Steering Group meetings and Technical Working Group meetings with South32, Illawarra Coal, and Peabody Energy Metropolitan Mine. WaterNSW attended various interagency meetings including:

Monthly Senior Officer Resource Assessment Committee meetings led by the Department of Planning and Environment and the Department

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of Premier and Cabinet

Quarterly Illawarra Coal Mining Interagency Group meetings lead by Division of Resources and Energy

Monthly Dams Safety Committee mining sub-committee meetings.


5.1 Development Impact Assessment

Developments and activities in the catchment continue to have a neutral or beneficial effect on water quality

Eight development application sites were referred for regulatory action

5.2 Land Use Planning

All relevant strategic plans and policies contain provisions that help WaterNSW protect and manage water quality, catchment health and water supply infrastructure

WaterNSW provided advice on planning instruments and policies to help ensure they included provisions, or addressed water quality risks or risks to water supply infrastructure. This included advice on the review of the Infrastructure SEPP, the Simplified Housing Code, Medium Density Housing Code, Concurrence and Referrals Reforms, Unified Secretaries Assessment Requirements, EP&A Amendment Regulation, and EP&A Act

95% of requested advice provided within the statutory timeframe

100% advice provided within the agreed timeframe

5.3 Mining

The WaterNSW Principles for Managing Mining and Coal Seam Gas Impacts are considered in all decisions about mining activities and proposals in the catchment

WaterNSW applied its Principles for Managing Mining and Coal Seam Gas Impacts to all mining activities assessed by WaterNSW

Variations

Operational budget of $242,000 allocated for the environmental assessment of projects was allocated as capital expenditure leaving an under expenditure in operational expenditure. Land use planning was under expended by approximately $480,000. About $108,000 was expended on contaminated site assessment and remediation (reported in Initiative 3), staff vacancies in the planning team accounted for approximately $180,000 and no improvements or maintenance were required for the NorBE tool saving $196,000.

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6. SOURCE WATER PROTECTION


6.1 Grazing and Erosion Program

Award 31 grants to landholders to improve grazing management

Thirty grants were awarded to landholders in priority areas for projects and practices that improve grazing management, treat erosion, and protect waterways

750 ha of area treated and / or protected from soil erosion

Landholders were awarded grants that will treat and / or protect 3042 ha of land from soil erosion

400 ha of grazing land to be managed to Best Management Practices standards as measured by our ‘area of influence’ indicator

Landholders were awarded grants that will implement best grazing management practices across 911 ha of land

Protect 25 km of riparian length from uncontrolled stock access with fencing

Landholders were awarded grants that will protect 59.7 km of riparian length from uncontrolled stock impacts

6.2 Priority Pollutants Program

Existing Infrastructure Grants for Sewage and Stormwater managed effectively to conclusion

All four grants awarded in 2014 (Round 1) have completed construction. Final reports are currently in preparation for Braidwood and Blue Mountains

Two new grants (Round 2) were awarded in November 2015. The works on these grants are 30% and 60% completed respectively

Agree Action Plans with five councils to respond to the 2013 Benchmark Study for Council Sewage and Stormwater Practices

A program of workshops, pollution source identification, and capacity building was carried out with participation from six councils. Key programs included an on-site sewage and stormwater one-day conference, collaboration with the Splash network in delivering Living Waterways Workshops, and investigating sources of pollution in Wollondilly and Blue Mountains using passive sampling

Maintain and strengthen networks and deliver five workshops with industry partners

WaterNSW has delivered two workshops with catchment councils and SPLASH

6.3 Dairy Program

Infrastructure on all dairy properties reassessed and

WaterNSW has worked closely with dairy farmers and the dairy industry (Dairy NSW and

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risks to water quality assessed to inform investment in best practice and infrastructure

Dairy Australia) to scope and develop this program. WaterNSW has sought a clear understanding of the dairy industry and implications for potential program participants.

6.4 Catchment Remote Area Fire Team

NPWS helicopter and skilled fire crews deployed on standby in accordance with agreed criteria

Crews carry out other fire preparedness work when fire danger ratings sufficiently low

Two alternating NPWS fire teams on standby with daily adjustment to tasking, based on fire danger rating

See section 3.1 of this report for specific fire preparedness works completed


6.1 Grazing and Erosion Program

Landholders participating in the Rural Landscape Program manage land, waterways and infrastructure using best management practices to minimise risks to water quality including:

- Landholders receiving grants intend to maintain 80% or more of groundcover over a 10 year period

- Analysis of remote sensing demonstrates improved groundcover and resilience of treated properties when compared to similar untreated properties

All grant recipients for sustainable grazing funding signed a contract committing to maintaining groundcover at 80 percent over a 10 year period

Analysis of satellite data has shown that pasture cover significantly improves after the implementation of sustainable grazing interventions (5 properties) compared with control sites. The difference was shown to be statistically significant in both high-rainfall and lower-rainfall parts of the catchment.6

6.2 Priority Pollutants Program

Continuously improve management of sewage and stormwater systems towards regulatory and best management standards to reduce water quality risks as measured by reductions in nutrient discharges of at least 160 kg

An annual reduction in nutrient loads of 1007 kilograms has been achieved from completion of two projects based in Bowral and Goulburn, which will extrapolate to over 21,322 kilograms over the 20 year life of the projects. Nutrient reductions are expected to increase as final reports are received for the outstanding four projects

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6.4 Catchment Remote Area Fire Teams

Minimise water quality impacts from major bushfires by attending 80 percent of reported fires during the declared bushfire danger period (within specified criteria) and containing the fires to within 10 hectares

Catchment Remote Area Fire Teams responded to eight fires. Seven fires (88%) were contained within prescription. One fire exceeded 10ha, burning 36 ha.

Variations

The Dairy Program business case was delayed as resources were focused on the Grazing and Erosion Program and additional time has been required to develop the program. This resulted in an under expenditure $493,000. Grant milestones budgeted in the Urban Program for 2016/17 were paid in 2015/16 as the project achieved its delivery milestone early resulting in an under expenditure of $434,000. The Grazing and Erosion Program was under expended by about $250,000 due to delays in finalising delivery contracts with the Australian River Restoration Centre. Contracts were finalised on 6 July 2017.

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FINANCIAL PERFORMANCE 2016-17

Operational Expenditure ($’000)

INITIATIVE / PROGRAM PLANNED EXPENDITURE ($‘000)

ACTUAL EXPENDITURE ($‘000)

1. Water Quality Science 586 501

1.1 Capture key catchment information 0 0

1.2 Understanding catchment risks 586 501

1.3 Scientific evaluation of catchment actions 0 0

2. Engaged Communities 739 450

2.1 Capacity building 193 62

2.2 School education 158 145

2.3 Community information 361 243

2.4 Community involvement 27 0

3. Land Management 9,276 8,872

3.1 Fire management 754 684

3.2 Unsealed roads 225 91

3.3 Pests and weeds 798 620

3.4 Soil erosion 223 119

3.5 Recreation areas 1,982 2,518

3.6 Fencing and Barriers 215 48

3.7 Cultural heritage 243 36

3.8 Special Area, Controlled Area and Freehold Lands 4,836 4,756

4. Enforcement and Surveillance 925 267

4.1 Special Areas enforcement 559 139

4.2 Investigation of illegal activities 50 58

4.3 Consent applications 316 70

5. Development Impact Assessment 1,690 1,215

5.1 Development impact assessment 758 672

5.2 Land use planning 493 48

5.3 Mining 439 495

6. Source Water Protection 4,249 2,816

6.1 Urban Program 708 274

6.2 Rural Landscape Program 1,581 1,322

6.3 Dairy Program 500 7

6.4 Catchment Remote Area Fire Teams 1,460 1213

TOTAL 17,465 14,121

Capital Expenditure ($’000)

PROJECT PLANNED EXPENDITURE

ACTUAL EXPENDITURE

Bendeela camping ground upgrade 3,032 151

Fire trail upgrade 224 0

Special Areas and Braidwood lands fencing 713 219

Replacement of plant and equipment 720 79

Catchment infrastructure asset renewals 511 204

Building a demonstration raingarden at Burrawang 29 0

TOTAL 5,229 653

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APPENDIX 1: OPERATING LICENCE AND CATCHMENT AUDIT RECOMMENDATIONS UPDATE

2014-15 OPERATING LICENCE AUDIT RECOMMENDATION

Clause Recommendations Current Status

2.1.1 Recommendation SCA 2014/15-1

WaterNSW should develop and maintain a Water Quality Management System (WQMS) that documents a consistent approach to managing risks, protecting water quality, and public health, across the range of WaterNSW’s functions under the Sydney Catchment Authority licence (by 30 September 2016). The WQMS should be consistent with the requirements of the Australian Drinking Water Guidelines 2011.

In progress

WaterNSW provided a project plan for review of the existing Water Quality Management Framework by 30 June 2017. The revised document is in the form of a manual, with links to all relevant documentation and procedures, and documenting the strategy for validating and reviewing those linked items (part 2 of recommendation 1). The revised document has been completed and forwarded to NSW Health for final comment.

Element 12 will describe the process for annual reviews of the WQMS and Water Quality Improvement Plan, taking into account changes to WaterNSW's operations or environment, emerging risks or any other opportunities for improvement (part 1 of recommendation 1)

A WQMS Annual Review and Continual Improvement Cycle has been prepared in support of the requirement at element 12. A scope statement has also been prepared to describe which types of supplies are covered by the WQMS.

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2015-16 OPERATING LICENCE AUDIT RECOMMENDATIONS

2.1.1 Recommendation 2014/15-1

WaterNSW should develop and maintain a Water Quality Management System (WQMS) that documents a consistent approach to managing risks, protecting water quality, and public health, across the range of WaterNSW’s functions under the Sydney Catchment Authority licence (by 30 September 2016). The WQMS should be consistent with the requirements of the Australian Drinking Water Guidelines 2011.

In progress

The 2015-16 WaterNSW Operating Licence Audit Report notes that based on the auditor's assessment Recommendation SCA 2014/15-01 remains open. WaterNSW is continuing to address this recommendation.


WaterNSW should improve its processes for reviewing its Water Quality Management System (WQMS), as set out in the Australian Drinking Water Guidelines (ADWG). WaterNSW could achieve this by implementing the following:

WaterNSW should undertake, at a minimum, annual reviews of the WQMS to check that it accurately reflects WaterNSW’s current operations and operational environment, including any changes that may occur to these and any outcomes/lessons learnt. The first review should be completed by 30 June 2017.

WaterNSW should document its review processes in the WQMS specifying the processes to be undertaken and the review frequencies. This should be completed by 30 June 2017.

In progress

WaterNSW provided a project plan for review of the existing Water Quality Management Framework by 30 June 2017. The revised document is in the form of a manual, with links to all relevant documentation and procedures, and documenting the strategy for validating and reviewing those linked items (part 2 of recommendation 1). The document has been submitted to NSW Health for final comment.

Element 12 describes the process for annual reviews of the WQMS and Water Quality Improvement Plan, taking into account changes to WaterNSW's operations or environment, emerging risks or any other opportunities for improvement (part 1 of recommendation 1).

WQMS has been reviewed and submitted to NSW Health for comment. A WQMS Annual Review and Continual Improvement Cycle has been prepared in support of the requirement at Element 12. A policy and scope statement have also been prepared to describe which types of supplies are covered by the WQMS.


WaterNSW should undertake, at a minimum, two yearly comprehensive reviews of the WQMS to check that it is fully consistent with each element of the ADWG. The first review [the Water Quality Management System Review Project] should be completed by 30 June 2018.

In progress

Following the current review of the WQMF, WaterNSW will commission an independent review of the system and incorporate findings and address any gaps as part of a further comprehensive review to be completed by 30 June 2018. Independent review to be conducted in late 2017 following endorsement of revised WQMS.

5.1.1 and 5.1.2

Recommendation 2015/16-03

WaterNSW should finalise its development and certification of the Asset Management System and fully implement it by or before 31

Complete

WaterNSW was successful in achieving certification of its Asset Management System. Fieldwork for the certification audit was completed on 9 December 2016, with the

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2015-16 OPERATING LICENCE AUDIT RECOMMENDATIONS

December 2016. subsequent report recommending WaterNSW for certification by the Auditors. During the 2015-16 operating licence audit, the auditors observed and noted that WaterNSW had developed and implemented its AMS and was awaiting certification. The certificate of registration for the AMS is effective as at 10 January 2017.

Annual Surveillance Audit is scheduled for September 2017.

Continuous improvement program has been developed and implemented.

7.1.1 and 7.1.2

Recommendation 2015/16-04

WaterNSW should finalise its development and certification of the Environmental Management system and fully implement it by or before 31 December 2016

Complete

WaterNSW has been successful in achieving certification of the EMS. Fieldwork for the certification audits was completed on 9 December 2016, with the subsequent reports recommending WaterNSW for certification by the Auditors. During the 2015-16 operating licence audit, the auditors observed and noted that WaterNSW had developed and implemented its EMS and was awaiting certification. The certificate of registration for the EMS is effective as at 16 January 2017.

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2013 CATCHMENT AUDIT RECOMMENDATIONS

Recommendations Agency Responsible

Status at 30 June 2017

Land Use and Human Settlements

2013/3 - OEH should finalise the Upland Swamp Environmental Assessment Guideline and provide clear measures of impact and clarity around the determination of the severity of such impacts.

OEH In progress

OEH and the Department of Planning and Environment are currently developing a “Policy Framework for Biodiversity Offsets for Threatened Upland Swamps and Associated Threatened Species Impacted by Longwall Mining Subsidence”. The intent of the Policy is to align the assessment of impacts on Upland Swamps and the provision of offsets consistent with the Framework for Biodiversity Assessment and the Biodiversity Offset Policy for Major Projects.

Water Availability

2013/7 - NOW should extend existing monitoring to include groundwater quality data as well as groundwater levels to establish a baseline for groundwater resources in the Catchment.

DPI Water In progress

It is anticipated that monitoring in the catchment will be improved through implementation of the NSW Water Monitoring Framework, which aims to extend the public groundwater monitoring network through to 2019/20 and to harness the information generated by private monitoring (e.g. by mining companies).

Water Quality

2013/10 - The SCA undertake targeted projects to ground-truth the effectiveness of catchment improvement activities at a drainage unit scale to verify the prioritisation of on-ground works via PSAT and use this information as feedback to the Land Management Database.

WaterNSW In progress

WaterNSW has undertaken a grazing assessment trial, assessed the Braidwood and Lithgow STP upgrades and trialed an approach using satellite imagery to assess pasture changes on adjacent properties to examine the impact of grazier education programs.

The PSAT generates estimates of potential annual pollutant export for individual grid cells and sites across the catchment. These values, summed for monitoring site catchments, have been compared with annual loads estimated using monitored storage inflow data. Catchment intervention scenarios can be run through the PSAT process, and the ratio between the summed PSAT results and annual monitored loads used to estimate their benefit in terms of changes to annual pollutant loads in inflows to storages. The Land Management Database is no longer used as a central repository for land management data, however the results of the above studies are feeding directly into catchment program planning, approval and development, and into future update of the PSAT.

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Biodiversity and Habitats

2013/11 - OEH and CMAs should investigate the potential to update the data on the extent and condition of native and riparian vegetation in the catchment for the next audit period.

OEH, LLS In progress

In 2013, OEH prepared a Native Vegetation Information Strategy 2014-2018 that defines the ‘Vision for NSW’ as ‘conservation, planning and regulation are enabled through easy access to consistent, relevant and scientifically robust native vegetation information’. The strategy identifies eight objectives for the production, maintenance and delivery of native vegetation information for NSW. An updated native vegetation spatial database is being developed in accordance with actions identified in the Native Vegetation Information Strategy 2013-2018 (OEH 2014).

2013/12 - OEH, SCA, CMAs and other relevant agencies collaborate to develop and apply a standardised procedure for assessing the extent and condition of wetlands in the Catchment.

OEH, WaterNSW, LLS

In progress

Actions identified in the Native Vegetation Information Strategy 2013-2018 (OEH 2014) recommendation 2013/11 above, would, once implemented, contribute to an improved understanding of the extent and condition of wetlands within the Catchment.

1 Addresses Catchment Audit 2013, Recommendation 1 (The SCA lead the implementation of an integrated

ecosystem health database to collate and maintain information for the catchment with support from OEH and other government agencies. The spatial database should contain all data and metadata required for the assessment of the gazetted Catchment health indicators) 2 Addresses Catchment Audit 2013, Recommendation 9 (The SCA use the existing data (including PSAT) to

develop a predictive tool to evaluate catchment management scenarios for the reduction of diffuse sources of nutrient pollution) 3 Partially addresses Catchment Audit 2013, Recommendation 5 (DPI, SCA, OEH, NOW, DP&I and Sydney Water

should collaborate to develop a risk assessment methodology to assess the impacts of mining, CSG and industrial developments on water resources in the catchment) 4 Addresses Catchment Audit 2013, Recommendation 8 (The SCA should refine investigations of hotspots of

sporadic Cryptosporidium contamination to sites not proximate to STP’s to determine the sources, genotypes, and potential human health risks). 5 Addresses Catchment Audit 2013, Recommendation 10 (The SCA undertake targeted projects to ground-truth

the effectiveness of Catchment improvement activities at a drainage unit scale to verify the prioritisation of on-ground works via PSAT and use this information as feedback). 6 Addresses Catchment Audit 2013, Recommendation 10 (The SCA undertake targeted projects to ground-truth

the effectiveness of Catchment improvement activities at a drainage unit scale to verify the prioritisation of on-ground works via PSAT and use this information as feedback).

Abbreviations

ARC Australian Research Council

AWTS Aerated Wastewater Treatment System

BMP Best Management Practices

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CMP Conservation Management Plan

CPIG Catchment Protection and Improvement Grant

CRAFT Catchment Remote Area Fire Team

CRP Current Recommended Practice

DCP Development Control Plan

DP&E Department of Planning and Environment

DPI Department of Primary Industries

EP&A Environmental Planning and Assessment

HCP Healthy Catchments Program

HCS Healthy Catchments Strategy

HSC Higher School Certificate

HSIE Human Society and its Environment

ILUA Indigenous Land Use Agreement

IWCM Integrated Water Cycle Management

JOG Joint Operations Group

LGRP Local Government Reference Panel

LLS Local Land Services

MUSIC Model for Urban Stormwater Improvement Conceptualisation

NorBE Neutral or Beneficial Effect on water quality

NPWS National Parks and Wildlife Service

OEH Office of Environment and Heritage

OSSM On-Site Sewage Management

POEO Act Protection of the Environment Operations Act 1997

PSAT Pollution Source Assessment Tool

RID Regional Illegal Dumping

RLP Rural Landscape Program

SCA Sydney Catchment Authority

SEPP State Environmental Planning Policy

SLA Service Level Agreement

SLG Strategic Liaison Group

SLWCA Strategic Land and Water Capability Assessments

SASPoM Special Areas Strategic Plan of Management

STP Sewage Treatment Plant

UV Ultraviolet

WSAA Water Services Association of Australia

WSUD Water Sensitive Urban Design

Documents

Contents · IPART requirements detailed in their Reporting Manual. The Sydney catchment area covers almost 16,000 square kilometres. More than one-third is ... Pollution Source Assessment