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Department of Natural Resources, Mines and Energy Queensland bulk water opportunities statement Part B – 2018-19 Program update

Queensland bulk water opportunities statement · downstream of State-owned dams, it is estimated that the Queensland Government bulk water entities will need to invest significant

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Page 1: Queensland bulk water opportunities statement · downstream of State-owned dams, it is estimated that the Queensland Government bulk water entities will need to invest significant

Department of Natural Resources, Mines and Energy

Queensland bulk water opportunities statement

Part B – 2018-19 Program update

Page 2: Queensland bulk water opportunities statement · downstream of State-owned dams, it is estimated that the Queensland Government bulk water entities will need to invest significant

CS9570 12/19

Front cover image: Lake Moogerah

Back cover image: Ross River

All images courtesy of DNRME Image Library

© State of Queensland, 2019

The Queensland Government supports and encourages the dissemination and exchange of its information. The copyright in this publication is licensed under a Creative Commons Attribution 4.0 International (CC BY 4.0) licence.

Under this licence you are free, without having to seek our permission, to use this publication in accordance with the licence terms.

You must keep intact the copyright notice and attribute the State of Queensland as the source of the publication.

For more information on this licence, visit https://creativecommons.org/licenses/by/4.0/.

The information contained herein is subject to change without notice. The Queensland Government shall not be liable for technical or other errors or omissions contained herein. The reader/user accepts all risks and responsibility for losses, damages, costs and other consequences resulting directly or indirectly from using this information.

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Ross River Dam

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Contents

Figures and tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

2. The year in review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

2.1 Safety and reliability of dams and urban water supplies 5

2.2 Using existing water resources more efficiently 9

2.3 Supporting infrastructure development that provides a commercial return 12

2.4 Projects that provide regional economic benefits 12

3. Water infrastructure project update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

3.1 Water supply efficiency projects 14

3.2 Water supply projects for economic development 16

3.3 Continuous improvement and maintenance measures 19

4. Queensland’s bulk water arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

4.1 Source water supplies 20

4.2 Assessing latent capacity in bulk water supply systems 23

5. Other initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27

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Figures and tables

Figures

Figure 1: QWRAP regions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Table

Table 1: Summary of QBWOS policy initiatives and opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Table 2: Dam safety projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Table 3: Regional Water Supply Security Assessment program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Table 4: Water supply efficiency projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Table 5: Funding bulk water proposals for regional economic development . . . . . . . . . . . . . . . . . . . . . . . . 17

Table 6: Continuous improvement and maintenance measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Table 7: Supplemented bulk water supply scheme statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Table 8: Unsupplemented surface water statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Table 9: GABORA groundwater statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Table 10: Other groundwater supply source statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Table 11: Queensland’s water supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Table 12: Underutilised water statistics for Queensland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Table 13: State funding for urban water supply projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

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1. IntroductionThe Queensland bulk water opportunities statement (QBWOS) outlines the Queensland Government’s framework for sustainable regional economic development through better use of existing bulk water infrastructure and effective investment in new infrastructure. Now in its third annual release, the QBWOS continues to facilitate discussion with the community and the water sector about water security planning in Queensland including demand management, optimal use of existing supplies and future bulk water infrastructure supply options to support growth and economic development in regional communities.

The QBWOS provides:

• a clear statement of the Queensland Government’s objectives for its investment in bulk water supply infrastructure, and the principles that underpin these objectives

• an annual update on initiatives that deepen value obtained from the State’s water resources and water infrastructure investments

• background and contextual information, including a current account of bulk water use and latent capacity across the state, and the roles and responsibilities of the various entities that contribute to the effective use of Queensland’s bulk water resources.

Part A articulates the strategy underpinning QBWOS. This strategy is largely static. It provides:

• a clear statement of the objectives for the state’s investment in bulk water supply infrastructure

• a clear statement of the principles that guide bulk water investment decision-making, if Queensland Government investment is to be considered

• critical context and background including:

– the policy environment, planning complexities, risks and general considerations

– a description of bulk water entities and their infrastructure

– the roles and responsibilities of various entities.

Part B presents an annual update focused on:

• current bulk water entitlements, use and latent capacity across the state

• updates on Queensland’s key infrastructure projects, current policy initiatives and opportunities

Released separately, the story map is an online visual representation of existing bulk water supply infrastructure and current activities across Queensland. It provides details of water entitlements and availability, and useful climate-related data. It also provides details of bulk water infrastructure projects currently or recently under investigation.

The bulk water infrastructure layer in Queensland Globe provides an interactive online tool with detailed geospatial data in a graphical display of key information for Queensland bulk water supply infrastructure information that may be used by interested parties.

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Lake Moogerah Dam

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2. The year in reviewThroughout 2018-19 the Queensland Government advanced or completed infrastructure assessments, policy and data initiatives that were identified for action in earlier releases of the QBWOS. The range of drivers for building, upgrading and improving bulk water infrastructure across the state include:

• continuing to meet compliance obligations and regulatory requirements (e.g. for dam safety and water quality)

• meeting the needs of a growing population

• increasing climate variability (including reduced rainfall reliability, but with increased intensity and flooding)

• using the state’s existing and extensive bulk water supply infrastructure more efficiently

• promoting regional economic growth.

The government’s priority driver for bulk water supply infrastructure remains the safety and reliability of existing dams and urban water supplies (Chapter 2.1), followed by efficiency opportunities (Chapter 2.2) and proving and prioritising investment in commercially viable and economically advantageous bulk water infrastructure (Chapter 2.3 and 2.4). Updates on infrastructure projects are provided in Chapter 3.

Meeting demand will not always require new infrastructure and there are a number of initiatives in development to support better using existing infrastructure and the use of new technologies and approaches including:

• investigation of technologies and approaches that can contribute to meeting demands (see Chapter 2.1)

• making more information more available (see Chapter 2.2) to support water market development (see Chapter 2.2)

• encouraging better utilisation of latent capacity (including pricing to support the use of latent capacity and water products that better suit business needs) (see Chapter 2.3)

Summary of initiativesThroughout 2018–19, the Queensland Government advanced or completed initiatives that were identified for action in earlier releases of the QBWOS. Table 1 shows these initiatives as they appeared in the 2018 QBWOS and provides a status summary of these initiatives. The 2019 QBWOS Part B provides full progress reports on each of these initiatives, along with updates on the infrastructure initiatives that are being progressed.

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Table 1: Summary of QBWOS policy initiatives and opportunities

Objectives Policy initiatives and opportunities Status

Safety and reliability of dams and urban water supplies

• State entities (including Sunwater and Seqwater) will continue to direct significant capital funds to dam safety upgrades for relevant dams.

• DNRME will continue to develop Regional Water Supply Security Assessments to assist local governments responsible for ensuring urban water security for Queensland communities.

• DLGRMA and DSDMIP are enhancing local government funding programs to encourage consideration of alternative water supply options and fit-for-purpose solutions.

Ongoing as core business

Ongoing as core business

Ongoing as core business

Use existing water resources more efficiently

• DNRME is leading a project to support customers and investors by providing proactive assistance, integrated advice and online services with better access to water markets and entitlement information.

• DNRME is investigating ways to improve water markets and trading by developing a water markets optimisation strategy.

• DNRME is reviewing and improving unallocated water business to ensure timeliness and responsiveness to demand where trading and other alternate supplies are not readily available.

• DNRME is developing options for allowing alternative use of water currently reserved for strategic infrastructure, and where the infrastructure plans have been deferred indefinitely or delayed for more than 3 years.

• DNRME will provide better public access to data and information on available volumes of water and bulk water infrastructure assets across Queensland (through the QBWOS story map and Queensland Globe).

• DNRME, DSDMIP, DAF and DNRME will promote active consideration of new technologies and approaches in water security planning.

• Sunwater is developing an integrated strategy to better use latent capacity of existing assets (including pricing to support the use of latent volumes, adapting water products to better suit business needs and removing constraints).

• Sunwater is developing options to better support the government’s objectives for regional economic development.

Ongoing as core business

Project in progress

Project in progress

Project in progress

Project in progress

Project in progress

Project in progress

Project in progress

Support infrastructure development that provides a commercial return to bulk water providers

• State entities will continue to develop infrastructure proposals for commercial return.

Ongoing as core business

Consider projects that will provide regional economic benefits

• DNRME is evaluating and prioritising new bulk water infrastructure proposals for government consideration.

• DNRME and Queensland Treasury are developing a best practice infrastructure assessment process with stakeholders to ensure appropriate management of risks, such as demand and environmental impacts.

• DNRME will continue to coordinate National Water Infrastructure Development Fund (NWIDF) project activities.

Project in progress

Project completed

Project in progress

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2.1 Safety and reliability of dams and urban water supplies

Initiatives to keep our dams safeOver the past decade, the Bureau of Meteorology revised its forecast of the size of rare but major rainfall events. This has meant that many of Queensland’s dams need to be upgraded to deal with an updated ‘probable maximum flood’ (see QBWOS Part A Chapter 5). In line with this advice, DNRME is about to commence an investigation into the impacts of extreme rainfall and flooding events on dam design. The investigation, coordinated by a leading university and supported by a number of dam organisations and government bodies around the country, will be a detailed and comprehensive investigation into how very rare rainfall events may change in intensity and spatial and temporal extent. Further investigations will consider how the changes in rainfall may influence flooding and what the risks of these changes will be to our communities.

To reduce potential public safety risks for communities downstream of State-owned dams, it is estimated that the Queensland Government bulk water entities will need to invest significant capital. Any project with an estimated cost over $100 million will have its business case development led by Building Queensland (see QBWOS Part A Chapter 4).

Table 2 outlines progress updates from 2018-19 activity in key dam safety projects. These may have been recently completed, currently underway or in planning. The regulations allow for a staged approach to dam safety upgrades based on risk profiles, with all dam safety upgrades required to be complete by 2035.

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Table 2: Dam safety projects

Project name Proponent Purpose Status

Projects recently completed

Leslie Harrison Dam –Safety Upgrade Project

Seqwater Dam safety upgrade to embankment and spillway.

Project completed in July 2018.

Sideling Creek Dam (Lake Kurwongbah) –Safety Upgrade Project

Seqwater Dam safety upgrade to embankment and spillway.

Project completed in August 2019.

Projects In development

Fairbairn Dam Spillway Improvements Project – Stage 1, Stage 2 and Stage 3

Sunwater Dam improvements to the spillway, addressing priority remedial works.

Stage 1 works are complete. Stage 2 & 3 construction works are progressing, with scheduled completion by early 2021, dependent on weather and environmental factors.

Projects with ongoing investigations and planning

Awoonga Dam Spillway Capacity Upgrade – Stage 2 & 3

GAWB To meet acceptable flood capacity as per ANCOLD and Queensland Dam Safety Guidelines.

Concept and engineering options to inform project design requirements to be progressed in 2020.

Ewen Maddock Dam – Safety Upgrade Project

Seqwater Dam safety upgrade to embankment and spillway.

Detailed design is being finalised. Project approval delays will see construction commence in early 2020. The completion date for the full project scope is still to be finalised once all project approvals have been received.

Lake MacDonald (Six Mile Creek Dam) –Safety Upgrade Project

Seqwater Dam safety upgrade to embankment and spillway.

Detailed design was completed in October 2019. Early construction works remain on track to commence in 2020, subject to obtaining EPBC and other government approvals. The upgrade is expected to take up to 24 months to complete, subject to unforeseen circumstances and wet weather delays.

Paradise Dam Improvement Project – Strengthening of Spillways, Abutment and Stilling Basin

Sunwater At the time of printing, Sunwater had lowered the storage level of Paradise Dam to 42% and had commenced detailed planning to cut-down the level of the spillway to reduce safety risks until a permanent upgrade is delivered. Sunwater is supporting a review by Building Queensland to recommend the optimal long-term solution.

Detailed Business is progressing, led by Building Queensland, including evaluation of options. Works may be completed in stages over several dry seasons.

Burdekin Falls Dam Improvement – Main Dam and Saddle Dams

Sunwater Dam improvements to accommodate revised hydrology and increased extreme flood events – including strengthening main dam and raising abutments and saddle dams.

A detailed review of the dam’s catchment hydrology has recently been completed, including risk assessment and review of engineering options, and Detailed Business Case is now underway. Business Case to be approved by early 2021, and construction completed 2025.

Leslie Dam Spillway –Improvement Project

Sunwater Dam safety upgrade to spillway and downstream scour protection works.

Business case currently in development, and due for completion late 2019.

Somerset Dam – Safety Upgrade Project

Seqwater Dam safety upgrade to dam and spillway, also considering enhanced flood mitigation capability.

Detailed business case is underway with an expected completion date in late 2020. The construction of the upgrade is anticipated to commence in early 2022 subject to Government consideration of the detailed businesses case and obtaining the necessary project approvals.

Teemburra Dam –Safety Improvement Project

Sunwater Raising of the main embankment and saddle dams.

Business case currently in development, and due for completion mid-2020.

Wivenhoe Dam –Safety Upgrade Project

Seqwater Dam safety upgrade to dam and spillway, also considering enhanced flood mitigation capability

Feasibility options study underway to be completed by mid-2020.

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Regional Water Supply Security Assessment program It is essential that water supply planning is timely, cost-effective and appropriate for a community’s needs. The Queensland Government supports water service providers and local governments through the Regional Water Supply Security Assessment (RWSSA) program, which is a partnership between DNRME and respective local governments to determine current and future urban water security outlook for key regional centres. The program builds on the local knowledge of councils to assess water supply risk using analyses techniques with varying degrees of complexity. The result is a shared understanding of the level of current and future water supply source security.

Table 3 shows outcomes from 2018-19 in the RWSSA program. A full list of completed RWSSAs is available online.

Wivenhoe Dam

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Table 3: Regional Water Supply Security Assessment program

Urban centre RWSSA water security outlook at time of assessment

Actions identified by partner council Council’s achievements following RWSSA publication

Atherton

In publication

Tablelands Regional Council

Council holds sufficient water entitlements to meet projected water demand for Atherton and the surrounding communities until at least 2041. To ensure an ongoing reliable supply for Atherton and these communities over this period, Council’s groundwater and surface water supply sources are both required.

• Establishing an additional bore in the Central Atherton GMA zone.

• Investigating optimal and cost-effective use of groundwater and surface water to meet future demands.

• Investigate options to better integrate the subnetworks in the town water supply.

• A $3.41M grant from Works for Queensland and $1M from Council are funding the extension of pipelines and augmentation of bore water supplies in the Ravenshoe Road, Carrington Road and Hastie Road areas of Atherton. In the Ravenshoe, Millstream, Bellview and Cassowary areas, an alternative water supply will be provided, or treatment capacity improved. The end result will be a reduction of the frequency and duration of boil water notices.

Chinchilla

Dec 2018

- Western Downs Regional Council

Council’s entitlement from the Chinchilla Weir Water Supply Scheme, in combination with Council’s contract for treated CSG water, is sufficient to meet the projected demands of Chinchilla to at least 2041 with a low likelihood of supply failure. However, this supply security is dependent on the continuing availability of the CSG water to council, along with the application of Council’s water restriction regime, under which restrictions could be experienced relatively frequently.

• Monitor and review ongoing availability of CSG water.

• Investigate alternative supply options for when CSG water is reduced or unavailable.

• Investigate options to reduce water losses from Chinchilla Weir Water Supply Scheme.

• Simplify existing water restriction levels

• Review existing demand management measures, and provide incentives for wise water users.

• Council have amended their water restriction regime to simplify it.

• Installation of SCADA system for offsite monitoring

• Improved operator skill level with Cert III training.

Longreach

Aug 2019

- Longreach Regional Council

Council’s water entitlements should be sufficient to meet projected water demands for Longreach to at least 2041. Council’s water supply system should be able to meet Longreach’s urban water requirements until at least 2041 with a moderate degree of reliability—however, at current and projected future demands the system may be at risk of falling to very low water levels during extended periods of severe drought, with the potential for water supply shortfalls occurring, even with water restrictions being imposed.

• Investigate potential raising and/or reconstruction of the Town Weir.

• Investigate alternative water supply sources (e.g. groundwater, recycled water).

• Substituting some uses of potable water with alternate non-potable water supply sources.

• Further detection and reduction of water losses within the town’s supply network.

• Demand management, improving water-use efficiency, community education.

• Council have been undertaking investigations about raising the Town Weir, including the potential flood impacts.

Mossman and Port Douglas

Nov 2018

- Douglas Shire Council

The Mossman-Port Douglas communities typically has lower water reliability during the dry season. It is likely that water demands will exceed Council’s entitlements for Mossman-Port Douglas within the next 10 years. Water supply security for Mossman-Port Douglas could be enhanced by additional entitlement from within the catchment. Whyanbeel communities have good water supply security over the next 25 years, dependent upon the volume transferred to Mossman-Port Douglas via the two-way pipeline.

• Council is securing additional raw water extraction within the Mossman catchment and has allocated budget in 2018–2019 to progress the detailed design and secure water licences.

• New 20 ML storage reservoir in Craiglie improves water storage capacities in the Port Douglas area and increases reliability during periods of poor raw water quality.

• Council continues to supply recycled water to resorts in Port Douglas for use on golf courses and explore reuse opportunities in support of a sustainable resilient water reticulation system.

• Council engaged a consultant for a Sewerage Treatment Plant upgrade strategy and re-use investigation to maximise unrestricted effluent use for irrigation

• Program to refurbish a 10 ML water reservoir that services Port Douglas

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Improving local government funding programs While Queensland Government provides funding assistance to councils for water and water-related infrastructure projects, the benefits of funding non-infrastructure solutions are of increasing relevance to councils. Future grants to local government will be designed, where appropriate, to include funding for non-capital activities within infrastructure programs and address the capability and capacity of local governments. These initiatives encourage consideration and provision of alternative water supply options and fit-for-purpose solutions. For example, grant programs addressing asset valuation, management and maintenance provide key support for local government water service delivery.

2.2 Using existing water resources more efficientlyThe second Queensland Government objective for bulk water supply infrastructure advanced during 2018-19 is using existing water resources more efficiently. This section outlines several opportunities to make more efficient use of water available in existing infrastructure, including reviewing latent capacity pricing, water markets and trading.

Better access to water information and available water entitlementsIn 2018–19, DNRME commenced, and continues consulting on, a strengthened approach to non-urban water measurement, including consideration of telemetry to provide near-real time information on water use. Where telemetry is rolled out, DNRME will be able to provide additional information on water use and available resources through open data sets and via planned web and spatial applications. This information will support the efficient functioning of the water market, improve voluntary compliance with water entitlement conditions and build community confidence in DNRME’s resource management strategies.

Underutilised Water Partnership ProjectIn 2018, DNRME convened the Underutilised Water Partnership Project (UWPP) with the Queensland Farmers Federation, Agforce, the Queensland Resources Council and the Local Government Association of Queensland). The project aims to better understand water usage practices and to develop recommendations to achieve better utilisation of latent capacity to support economic development objectives. This project is being delivered through the Rural Water Management Program.

This project was initiated because an assessment found that there are significant quantities of water that have remained unused in some Queensland dams, weirs, barrages and metered water management areas (even in dry times) over the last 10 years including:

• 280 000 ML of uncommitted supplemented water allocations

• 865 000 ML of unused committed supplemented water allocations

• 2 000 000 ML of unused unsupplemented water entitlements.

These volumes are within water supply schemes and water management areas subject to a water planning process and therefore optimising utilisation will not impact on water allocation security objectives and environmental flow objectives.

On 29 April 2019, DNRME convened a water industry forum to record the key issues, priorities and recommendations identified by stakeholders to address opportunities and barriers to better utilisation of water in Queensland. The forum brought together around 40 cross-sector water users, industry representatives, local government, Sunwater and DNRME representatives.

The forum was part of the UWPP and involved:

• an assessment of data relating to the availability and utilisation of supplemented and un-supplemented water allocations across the State

• consideration of agricultural, industrial and urban water usage in 4 case study areas:

• Barron water plan area (supplemented allocation analysis focused on the Mareeba-Dimbulah water supply scheme),

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• Burnett Basin water plan area (supplemented allocation analysis focused on the Bundaberg water supply scheme),

• Fitzroy Basin water plan area (supplemented allocation analysis focused on the Nogoa-Mackenzie water supply scheme)

• Pioneer Valley water plan area (supplemented allocation analysis focused on the Pioneer and Eton water supply schemes)

• an assessment of water usage practices, impediments and opportunities based on extensive consultation with users, industry experts and scheme managers

• the circulation of a Discussion Paper prepared by a consultant incorporating proposed key priority areas and associated draft recommendations (and other potential initiatives) specific to water markets and trading issues, and strategic issues requiring a broader (government and stakeholder response).

Following the partnership project and the forum, DNRME, in consultation with all stakeholders, is leading the development of the Water Markets and Trading Optimisation Project to optimise Queensland water markets in response to the recommendations. Part of this is developing initiatives for improving Queensland’s water products, market and trading processes, planning practices and the way information is provided to users and investors. These initiatives will help realise the full economic potential of Queensland water resources and water supply infrastructure.

Water Markets and Trading Optimisation ProjectThe management of surface water resources within Queensland is undertaken on a catchment basis via a water plan, a water management protocol (previously a resource operations plan) and, if required, resource operations licences, distribution operations licences and supporting operations manuals.

A water plan sets the boundaries within which the water resources of that catchment must be managed and defines the specific way in which water management is to be achieved, including water trading zones and rules for the catchment.

The water plan may enable three water markets to operate within selected Queensland catchments:

• a water allocation market that deals in the permanent trade of registered water allocation titles

• a seasonal water assignment market in which seasonal assignment of water available under allocations and other entitlements are temporarily traded for up to 12 months

• a relocatable water licence market in which water licences may be relocated from one parcel of land to another on a permanent or seasonal basis.

More than 75% of the usable water in Queensland is held by entitlement holders as water allocations—the majority of which are surface water allocations. Permanent trading of surface water allocations involves the transfer of a water allocation title, similar to the sale of a land title. These dealings must be registered in the Water Allocations Register, and may need to be approved by DNRME.

Seasonal water assignments are temporary trades of water to meet short-term water needs—some or all of the water that may be taken under a water entitlement in a water year can be assigned to another person or place. Both supplemented and unsupplemented water can be seasonally assigned but different processes and rules apply. Temporary trades are approved by the ROL holder for supplemented schemes and by DNRME for unsupplemented water. However, temporary trade prices are not currently required to be reported.

Opportunity

There are lower levels of permanent and seasonal trades in Queensland water markets compared with the levels of trade in southern Australian water markets. That Queensland’s hydrology and climate are significantly different from other states and factors such as disconnected catchments may lead to less market liquidity. However, as identified in Section 3.2, there is significant latent capacity in existing bulk water supply systems and unsupplemented water management areas. Facilitating an increase in water market activity, including by stimulating market activity and removing any unnecessary constraints could potentially increase the uptake of supplemented water, unsupplemented water and groundwater resources that are under-utilised, not used, uncommitted or unallocated across Queensland.

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Even in highly utilised schemes there is an opportunity for water trading to develop, driving efficient water use and delivering economic benefits (including if users are holding more allocation than they need as a risk mitigation measure). Furthermore, a water market that is perceived as well functioning may result in risk-averse entitlement holders being more confident/comfortable with trading. This may increase water use or offer surplus water for sale, facilitating the movement of water to customers that need it most or are willing to pay a premium.

Unallocated water releases—unleashing potential DNRME recently piloted interim access arrangements allowing temporary use of water currently held in reserve for future strategic infrastructure needs. In particular, in March 2019 DNRME released 90 000 ML of unallocated water reserved under the Water Plan (Fitzroy Basin) 2011 for infrastructure like the Nathan Dam proposal. This water has been made available for irrigated agriculture in the Dawson River Valley until September 2023. Sunwater has advised that the infrastructure project is unlikely to proceed in this timeframe and irrigators have signalled a demand for the water in the interim.

The pilot has demonstrated innovation and improvements to DNRME’s unallocated water processes that will be applied in other catchments prioritised for unallocated water releases in 2019-20. Future releases enabling temporary access to strategic water infrastructure reserves will be identified and prioritised based on demand, and ability to satisfy demand with alternate water supplies.

Supporting this initiative, Sunwater is developing an integrated strategy to better use latent capacity of existing assets (including pricing to support the use of latent capacity, making water products better suit business needs and removing constraints to accessibility and use).

Digital productsThe 2019 QBWOS continues to provide an accessible and interactive digital account of the state’s bulk water supplies through its sister Story Map, and updated data layers accessible through the Queensland Globe. Through QBWOS, we continue to strengthen engagement with the public and other stakeholders, and increase opportunities for collaboration and partnerships.

New technologies and approaches in water security planningDNRME, DSDMIP, DAF and DNRME continued to promote active consideration of new technologies and approaches in water security planning throughout 201819. To better inform urban water security assessments, DES and DNRME collaborated to optimise an approach to groundwater modelling better suited to assessing localised aquifer performance than the existing models (which focus on regional or whole-of-aquifer performance). This new approach to modelling groundwater resources directly benefitted communities in the RWSSA program by providing greater clarity on the reliability of local groundwater entitlements and sources.

Technologies that allow better access to and use of groundwater resources are essential for areas of Queensland that do not have access to sufficient surface water resources. In 2018-19, DES undertook a desktop pre-feasibility assessment on the applicability of underground technologies (managed aquifer recharge (MAR) methods, such as sand dams and underground weirs) in Queensland. This assessment used existing Queensland Government GIS datasets to identify areas where there may be a potential for the use of underground technologies. A report with accompanying mapping (2 volumes) is expected to become available from DES in early 2020 and can be used to help identify opportunities to apply the underground technologies.

Regional deployment of portable desalination plants can augment supplies where source water quality is not initially fit-for-purpose. DNRME reviewed the potential for deployment portable desalination plants in regional Queensland to provide temporary potable water supplies in times of drought or other emergency. The study incorporated sample site assessments and costings as well as a scan of portable desalination plant use nationally and internationally. The study assessed water source availability and nominal costs for plant purchase and hire, transport to site, set-up, connection, operational expenses, decommissioning and transport back to base for six sample sites. An information sheet summarising the results of this study has been prepared and is available from DNRME. Site specific assessments need to be undertaken prior to deploying portable desalination plants.

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2.3 Supporting infrastructure development that provides a commercial return

State entities will continue to develop infrastructure proposals for commercial return.As set out in QBWOS Part A, State-owned water entities are required to comply with various guidelines and processes when investigating commercial projects. This includes:

• The Building Queensland Business Case Development Framework - state entities must work with Building Queensland in developing the business case for projects over $50 million, while for projects over $100 million Building Queensland is the lead for developing the business case.

• The Queensland Treasury Project Assessment Framework – applies to all government agencies including state owned water entities.

• Ministerial oversight also requires government owned businesses to seek approval for projects over certain thresholds.

In late 2018, DNRME developed ‘Directions for project proponents to assess demand’ for water that are consistent with these existing project assessment frameworks for evaluating and prioritising new bulk water infrastructure proposals for government consideration. Water infrastructure projects typically involve long-life assets that are complex and expensive to build, own and operate. The Directions for project proponents to assess demand for water is an important step in ensuring there is a stable, sustainable and sufficient market supporting better use of existing infrastructure and informing construction of new infrastructure. The Directions integrate with the existing framework.

Sunwater BlueprintSupporting the Queensland Government initiatives through QBWOS, Sunwater worked to develop a Sunwater Regional Blueprint as a long-term strategy to increase availability of water in its water supply schemes, developing options to better support the government’s objectives for regional economic development, and address future customer needs, as well as adapt to the impacts of climate change.

The Sunwater Regional Blueprint supports the QBWOS objectives of using existing water resources more efficiently, supporting infrastructure development that provides a commercial return and considering projects that will provide regional economic benefits. The Blueprint explores potential future water demand scenarios across Sunwater schemes and summarises Sunwater strategy for responding to these scenarios should they arise. It identifies products and services that will meet future customer needs, including optimising existing infrastructure or new assets. Sunwater’s assessment applies a financial and economic framework to prioritise growth opportunities associated with its supply schemes. This will also serve as an input for Government in their broader state-wide analysis of projects that offer regional economic benefits. A regional rollout of the Sunwater Regional Blueprint has commenced, engaging its customers in the definition of future scenarios and potential ways of addressing them.

The Sunwater Regional Blueprint also seeks to address better use of the latent capacity of existing assets (including pricing to support the use of latent capacity, making water products better suit business needs and removing constraints).

During 2018-2019, Sunwater sold latent capacity in its dams and pipeline network including tenders for water from Paradise Dam and Burdekin Falls Dam, and sale of surplus capacity in the Eungella Water Pipeline to interested mining customers in the Bowen Basin. Sunwater also developed a whole of business Energy and Water Efficiency Strategy. Energy efficiency initiatives seek to minimise the impact of energy prices on water supply to Sunwater customers, and Sunwater optimised commercial arrangements, piloted energy audits and installed renewable generation initiatives to minimise energy prices across all customer segments.

2.4 Projects that provide regional economic benefitsWhile consideration of the commercial viability of infrastructure projects is important, and remains the priority, the Queensland Government also has a role to facilitate and support economically viable projects that are demonstrated to be in the best overall interests of the state. This involves striking the right balance between reducing the barriers to using available water within existing bulk water supply infrastructure and considering new projects with demonstrable economic benefits in a context of competing budget constraints.

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Delivering better infrastructure should include an assessment of how infrastructure provides better infrastructure services for the consumer. This is a key consideration within the bulk water asset class, as community and economic benefits cannot be realised if the price of water to be supplied is too high.

The National Water Initiative outlines that for new bulk water infrastructure beneficiaries should pay the full cost of providing infrastructure, including the costs of construction and a return on the value. However, given the scale of projects, the high risks and other factors, Government funding is often required to address these issues and make water affordable. The key challenge for the State is ensuring that subsidies are provided transparently to the right projects in the right circumstances, and that the State reviews project delivery to evaluate the benefits gained for the broader community.

While the most obvious beneficiaries of subsidies are the users of the water (through cheaper prices of one of their business inputs), there are potential benefits to the broader community. These benefits are realised when additional bulk water supply leads to growth in supply chains including from value added outputs, economic development, more jobs, improved community resilience, and greater demand for other services, such as freight. These benefits and the associated costs are assessed through robust project assessment frameworks such as Building Queensland assessment frameworks.

New infrastructure proposals and the Bulk Water Prioritisation Project The Bulk Water Prioritisation Project (BWPP) was established as an outcome of the inaugural QBWOS to develop a better approach for the State’s assessment and prioritisation of additional water supply infrastructure that can support economic development. The BWPP will, when completed, be a mechanism to filter and evaluate a range of bulk water proposals against the need for water, the State’s policy objectives, and other criteria.

Throughout 2018-19, DNRME has been working with internal and external experts to develop a robust assessment framework and key inputs such as comparable estimated of bulk water infrastructure costs and yields. The assessment framework considers, on a regional basis, the need for water and opportunities for water to make a contribution to

regional economic development. The framework also incorporates a high level cost benefit assessment and qualitative assessment of a range of other factors associated with developing bulk water infrastructure.

DNRME will use this prioritisation tool to prepare advice to Government on bulk water proposals for government to consider in early 2020. It is intended that the advice would outline those projects that have greater viability prospects, those projects that cannot be further progressed until some other trigger occurs and also outline those proposals that are unlikely to be viable in the foreseeable future. This will help guide negotiations with other jurisdictions, and will help focus limited financial and human resources on the most viable proposals. As of November 2019, DNRME has assessed the high level estimates for costs and benefits associated with 54 bulk water proposals, including dams, weirs, pipelines and offstream diversions. DNRME will continue to coordinate NWIDF project activities, and is evaluating and prioritising new bulk water infrastructure proposals advanced under the NWIDF and through other means, for government consideration.

Best practice infrastructure assessmentQueensland has a well-established project assessment framework in place for qualifying and progressing infrastructure development projects that provide a commercial return. This framework includes the Project Assessment Framework developed by Queensland Treasury and the Business Case Development Framework developed by Building Queensland (see QBWOS Part A, Chapter 4). In 2018, DNRME developed directions for project proponents to assess demand for water that are consistent with these existing project assessment frameworks for evaluating and prioritising new bulk water infrastructure proposals for government consideration.

Water infrastructure projects typically involve long-life assets that are complex and expensive to build, own and operate. The Directions for project proponents to assess demand for water is an important step in ensuring there is a stable, sustainable and sufficient market supporting better use of existing infrastructure and informing construction of new infrastructure.

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3. Water infrastructure project update

3.1 Water supply efficiency projectsTable 4 details the progress updates to water efficiency projects through 201819. These projects may be recently completed, currently underway or in planning. Some of the projects have received have received funding under the NWIDF and DNRME will continue to coordinate NWIDF project activities, and to evaluate and prioritise new bulk water infrastructure proposals for government consideration.

Somerset Dam

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Table 4: Water supply efficiency projects

Project name Proponent Purpose Status

Projects In development

Mareeba–Dimbulah Water Supply Efficiency Improvement Project

Sunwater The MareebaDimbulah Water Supply Scheme supports more than 1000 irrigation, industrial and urban customers with a total of 204 424 ML in water entitlements.

Five sub-projects were identified that aim to improve operating efficiency and reduce water losses by up to 8000 ML, to boost the local economy by providing access to more water for irrigators.

Improvements are directed at balancing storages to catch channel overflows, regulating gates to better control flow through the channel network and a pressurised pipeline to capture overflow and seepage losses from the scheme.

The project will be delivered across many stages and packages to align with customer demand and requirements. Works commenced in June 2019 and all packages are planned to be completed by November 2021. The first milestone has been completed. Total project cost is $28.1 million, of which Sunwater is investing $16.5 million to supplement NWIDF funding of $11.6 million.

Warwick–Recycled Water for Agriculture

Southern Downs Regional Council

Expansion of the existing Warwick recycled water supply. The project will deliver water to agricultural and industrial areas

Funding committed towards capital construction from:-

• Australian Government’s NWIDF

• Queensland Government’s Building our Regions Fund.

Projects with ongoing investigations and planning

Lockyer Valley–

Water for agricultural productivity and sustainability

Lockyer Valley Regional Council

The project aims to provide alternative water supplies and innovative water delivery mechanisms to agricultural users in the Lockyer Valley.

Feasibility assessment completed April 2018. Supported with funding through the Australian Government’s NWIDF. DNRME is amending the Water Plan (Moreton) 2007 to establish volumetric entitlements and transparent sharing and accounting processes. Building Queensland has completed preliminary assessment into cost-effective, viable water supply solutions for Lockyer Valley, funded by DNRME. Lockyer Valley RC secured Queensland Government Maturing the Infrastructure Pipeline (MIPP) funding which is now being used to advance the findings of the Building Queensland work in 2019-2020.

Completed investigations with projects awaiting triggers

Bundaberg Channel Capacity Upgrade

Sunwater The project aims to facilitate the use of available water from Paradise Dam by assessing regional demand, water prices and infrastructure options to deliver water to potential future irrigation areas.

Feasibility assessment completed June 2018. Supported with funding through the Australian Government’s NWIDF. Water pricing strategy was developed and implemented to sell the latent capacity through tenders for water from Paradise Dam.

Burdekin–Haughton Water Supply Scheme Upgrade

Sunwater The project aims to facilitate the use of available water from the Burdekin Haughton Water Supply Scheme. Options being assessed include channel upgrades, targeted channel lining, additional pipelines and balancing storages, and groundwater dewatering and re-use.

Feasibility assessment completed June 2018. Supported with funding through the Australian Government’s NWIDF. Findings are being considered in context of other related activities including further assessment of raising Burdekin Falls Dam

Nogoa–Mackenzie Water Supply Scheme Efficiency Improvement Project

Sunwater The project comprises relining works in the Selma Channel system to significantly reduce seepage losses, increasing water availability by <6000 ML/a.

Construction scheduling will align with planned shutdown periods in the scheme to ensure continuity of supply to customers.

Funding: NWIDF Capital.

Sunwater undertook a pilot channel lining water efficiency project in the Nogoa Mackenzie system in 2019.

South East Queensland Treated Effluent for Agriculture—NUWater

Queensland Farmers’ Federation

The project considers how to make recycled water available to the Lockyer Valley and Darlings Downs agricultural areas, including consideration of water from the Western Corridor Recycled Water Scheme.

Preliminary business case is complete. The costs currently outweigh the benefits.

Funding: NWIDF Feasibility.

Building Queensland is investigating cost-effective, viable water supply solutions for Lockyer Valley RC, funded by DNRME.

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3.2 Water supply projects for economic developmentTable 5 details the progress updates through 2018-19 to water supply projects intended to boost economic development. These projects may be recently completed, currently underway or in planning. Some of the projects have received have received funding under the NWIDF and DNRME will continue to coordinate NWIDF project activities, and to evaluate and prioritise new bulk water infrastructure proposals for government consideration.

Ross River Dam

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Table 5: Funding bulk water proposals for regional economic development

Project Name Proponent Purpose Status

Projects In development

Rookwood Weir Sunwater New weir located on the Fitzroy River above the existing Eden Bann Weir to provide water to service agriculture, industry and urban customers in the Rockhampton, Gladstone and Capricorn Coast areas.

$352 million funding committed towards capital construction from:-

• Australian Government’s National Water Infrastructure Development Fund and,

• Queensland Government.

Granite Belt Irrigation Project (Emu Swamp Dam)

Granite Belt Water New dam on the Severn River to supply agricultural water to the Granite Belt Area and provide an additional regional source that may be used as a contingency urban supply.

Detailed Business Case completed January 2019. Supported with NWIDF funding. EIS approvals associated with changes in proposed infrastructure and distribution alignment. Funding committed towards capital construction from:-

• NWIDF ($42 million)

• Up to $18.3 million from the Queensland Government.

Progression is subject to project meeting a number conditions.

Glendorf Off Stream Storage

MSF Sugar Construction of an off-stream water storage project at Glendorf near Maryborough to increase the water storage capacity.

$18 million funding offer to MSF Sugar under the Australian Government’s Community Development Grants Programme towards capital construction. Further project scoping and definition is required including identification of proponent to progress the project.

Projects with ongoing investigations and planning

Hells Gates Dam and Big Rocks Weir

Townsville Enterprise Limited

New water supply infrastructure in the upper Burdekin River to supply agriculture, industry and urban communities.

Pre-feasibility assessment completed September 2018.

Supported with funding through the Australian Government’s National Water Infrastructure Development Fund. The proposal costs exceed the benefits – there are high capital costs and there is a lack of demand in the short to medium term, which makes this a challenging investment proposition. The Australian Government announced additional funding to progress investigations to a detailed business case, including consideration of constructing Big Rocks Weir. Program of works including detailed design and costing, environmental Impact assessment and detailed business case underway to be completed in 2022.

Urannah Dam Bowen Collinsville Enterprise

New water supply infrastructure in the upper Broken River to supply agriculture, industry and urban communities. Delivering a detailed business case for and Environmental Impact Assessment covering the project.

Preliminary Business Case completed June 2019. Supported with NWIDF funding. The Australian Government announced additional NWIDF funding to progress investigations to a detailed business case and EIS. Scheduled for late 2019.

Lakelands Irrigation Area

Far North Queensland and Torres Strait Island Regional Development Australia

New bulk water supply infrastructure to provide additional supplies agriculture in the Lakelands area. Delivering a detailed business case for and Environmental Impact Assessment covering the project.

Strategic business case completed February 2019. Supported with NWIDF funding. The Australian Government announced additional NWIDF funding to progress investigations to a detailed business case and EIS.

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Project Name Proponent Purpose Status

Raising Burdekin Falls Dam

Sunwater Provide additional supplies for the Burdekin-Haughton WSS, Townsville urban use, mining and regional agricultural development. Preliminary Business Case, which considered various levels to raise the dam between two and up to theoretical 14 metres and baseline studies to support an Environmental Impact Statement. Delivering a detailed business case for and Environmental Impact Assessment covering the project.

A DSDMIP feasibility assessment completed February 2018. Supported with NWIDF funding. Preliminary Business Case completed in 2018 by Sunwater. Since the DSDMIP study was completed, potential water customers have indicated the potential for greater water demand in the short to medium term. As a result, Sunwater is now progressing a detailed business case and EIS for the project. Raising Burdekin Falls Dam is considered the Queensland Government’s priority for further assessment in this region.

Hughenden Irrigation Project

Hughenden Irrigation Project Company

This proposal will investigate the capture and storage of water in the Upper Flinders River to support the establishment of agricultural development in Hughenden.

Preliminary assessment scheduled for late 2019. The preliminary assessment is supported with funding through the Australian Government’s Community Development Grants Fund.

Gilbert River Irrigation Project

Etheridge Shire Council

New dam, weir and channels on the Gilbert River to support expansion of irrigated agriculture.

Assessment scheduled for late 2019. A detailed business case under development. Supported Queensland Government’s MIPP funding.

Completed investigations with projects awaiting triggers

Cloncurry River Dam

Mount Isa to Townsville Economic Development Zone Inc.

New water supply storage for irrigation development in the Cloncurry region with potential to also augment Cloncurry urban water supply and water available for surrounding mines.

Preliminary business case completed in May 2018 and detailed business case completed in February 2018. Supported with NWIDF funding. Identified Cave Hill Dam as the most promising dam option however the assessment indicates that costs outweigh benefits at this time.

Connors River Dam and pipeline

Sunwater Primarily to supply coalmines near Moranbah (Bowen and Galilee basins) with some urban supply to associated communities

State and federal environmental approvals obtained and land acquired. Currently insufficient demand to be viable.

Fitzroy to Gladstone Pipeline

Gladstone Area Water Board

Provide contingency supply to Gladstone from Fitzroy River when required as a drought response or to meet increased demand

Environmental impact statement completed and conditionally approved. Project will proceed in accordance with agreed water security triggers.

Gayndah Regional Irrigation Development Project

Isis Central Sugar Mill Company Limited

Water storage and supply options and irrigation development of up to 6800 hectares in the Gayndah region of the Burnett River catchment

Detailed Business Case completed December 2018. Supported with NWIDF funding. The project has a high capital element that would require a significant contribution from the Australian and/or Queensland Governments and/ or third parties.

Nathan Dam and pipeline

Sunwater Mining, industrial and urban supply to Dawson Valley and Surat Basin

Environmental impact statement complete. Currently insufficient demand to be viable.

Nullinga Dam Sunwater New dam to support expansion of irrigated production in the Mareeba–Dimbulah Irrigation Area—in the longer term, potential to augment Cairns urban supplies

A detailed business case completed June 2019. Supported with NWIDF funding. The project has a high capital costs which outweigh the benefits at this stage. Currently insufficient cost reflective demand to be viable. The Queensland Government is considering an appropriate way to protect the site for potential future development and Sunwater is considering some of the other options identified in the detailed business case.

Tablelands Irrigation Project

Tablelands Regional Council

Multipurpose water use in the Upper Herbert River catchment to support expansion of the region’s agricultural base and generate renewable power, and considering flood mitigation benefits for the Lower Herbert River catchment

Preliminary business case completed in December 2018. Supported with NWIDF funding. Requires further demand to proceed.

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3.3 Continuous improvement and maintenance measuresContinuous improvement and maintenance measures are routinely undertaken by bulk water providers. Table 6 shows the major projects reported by bulk water providers during 2018-19.

Table 6: Continuous improvement and maintenance measures

Project details

Seqwater, in partnership with DNRME and the Lockyer Water Users Forum (LWUF) is undertaking a project in the Lockyer Valley to improve the understanding and efficiency of the groundwater resource. Over the next two years, approximately 450 meters in the Central Lockyer Valley Water Supply Scheme (CLVWSS) will be upgraded to magnetic flow meters. 101 monitoring bores will also be upgraded with automated sensors to monitor water level and conductivity. All meters and bores will be equipped with remote telemetry, making information available to irrigators and Seqwater in real time. In addition to allowing for more efficient operation of the scheme, the information collected will be used to develop a new groundwater model. This model will be used to better inform the reliability of the resource, feeding into a review of the Moreton water plan in 2026.

The Gladstone Area Water Board (GAWB) supplies potable water to Gladstone Regional Council for its town water supply. In June 2019 GAWB completed the Offline Water Storage Project, construction of a 1200 ML storage facility to maintain a reliable supply to Gladstone, when undertaking maintenance at Awoonga Dam and critical components of the water supply network. Additionally, the council recently requested GAWB provide an additional potable water supply connection for the Kirkwood Reservoir to meet Kirkwood and Mt. Elizabeth Reservoir’s simultaneous potable daily water demand. The project is required to meet increased customer demand through the augmentation of the delivery network. GAWB completed Scoping of Engineering, Engineering Concept Design in 2019 and is planning phased-in progress, with Detailed Design schedule for completion by December 2019, and Construction scheduled to commence after 1 July 2020.

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4. Queensland’s bulk water arrangements

4.1 Source water supplies

Supplemented surface water suppliesPrevious releases of QBWOS focused on surface water supply schemes and some other water supply systems because of the infrastructure components associated with these supplies. A 2018-19 update of these data is provided at Table 7.

Table 7: Supplemented bulk water supply scheme statistics

QBWOS region

Water storage capacity (ML/a)

Supplemented surface water entitlements (ML/a)

Committed to customers (ML/a)

Uncommitted water (ML/a)

Delivered water (ML/a)

Far North

441 610 204 393 159 424 - 121 486

North 2 915 311 1 277 969 1 044 386 104 462 638 011

North West

214 333 75 150 63 050 10 850 23 630

Central 2 519 812 605 377 510 954 22 396 317 663

Wide Bay Burnett

1 721 263 625 354 464 022 133 816 311 118

South East*

2 384 596 505 510 496 708 0 315 720

South West

666 301 230 902 241 822 953 156 006

West 4 770 2 612 2 492 120 1 703

Total 10 867 996 3 527 267 2 982 858 272 597 1 885 338

* In South East Region 9340 ML of groundwater is included in the entitlement and commitment to customers as the Central Lockyer Valley WSS sources both groundwater and surface water to supply to their customers.

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The supplemented surface water entitlements shown in Table 7 comprise about 35% of the total volumetric water entitlements authorised in Queensland at 2018-19.

The 2019 QBWOS builds on this foundation by expanding its assessment of water entitlements across Queensland in complementary resource management classifications that reflect both the source water characteristics and resource management characteristics of the entitlements. The four additional data sets provided under this assessment comprise:

• unsupplemented surface water entitlements (Table 8), which, by definition, comprise the surface water entitlements across Queensland that are not included in Table 7 and represent about 20% of the total volumetric water entitlements in Queensland at 2018-19;

• groundwater entitlements managed under the Water Plan (Great Artesian Basin and Other Regional Aquifers) 2017 (Table 9). These groundwater resources are sourced from aquifers with minimal connectivity to local surface water resources. Due to historical licencing arrangements, they are not easily attributable to a QBWOS region. These represent about 1% of the total volumetric water entitlements in Queensland at 2018-19.

• other groundwater entitlements in aquifers with identified connectivity to local surface water resources Table 10). These groundwater resources include supplemented and unsupplemented groundwater allocations, and licences to take groundwater issued on volumetric and area-based terms). These represent about 10% of the total volumetric water entitlements in Queensland at 2018-19;

• unallocated water reserves (Table 12) are the volumes of water held aside for strategic purposes, such as new infrastructure), future growth and other specified purposes such as Aboriginal cultural heritage outcomes. Together, these comprise about 34% of the volumetric total of water entitlements in Queensland at 2018-19.

As noted in the Tables that follow, there are approximately 11 000 licences to take water that, due to historical licencing arrangements, were not issued with a volumetric limit. The majority of these are held in the GABORA Plan area. Consequently, the water entitlement associated with these licences can not be included in a statement of volumetric capacity.

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Unsupplemented surface water supplies

Table 8: Unsupplemented surface water statistics

QBWOS Region Nominal annual water entitlement issued under volumetric Water Licence (ML/a)

Nominal annual water entitlement issued under Water Allocation (ML/a)

Total volumetric water entitlement (ML/a)*

No. water entitlements issued under area- based Water Licence (Ha)1

Far North 309 235 115 412 424 647 27

North 106 894 38 023 144 917 392

North West 281 177 0 281 177 0

Central 104 700 195 417 300 117 338

Wide Bay Burnett 68 729 28 266 96 995 1 284

South East 58 071 17 580 75 651 1 649

South West 7 985 674 967 682 952 73

West 23 771 51 112 74 883 1

Total 960 561 1 120 777 2 081 338 3 764

* Unsupplemented water entitlements issued under an area-based licence are not included in the volumetric assessment

Great Artesian Basin

Table 9: GABORA groundwater statistics

QBWOS Region Water Plan Area No. of water authorisations

Total volumetric water entitlement (ML/a)

No. water entitlements issued under area- based Water Licence (Ha)**

n/a Water Plan (Great Artesian Basin and Other Regional Aquifers) 2017

899* 118 377 155

* Note that only 899 of 6718 GABORA water authorisations (13.3%) currently include a volumetric limit.

** Groundwater entitlements issued under an area-based licence are not included in the volumetric assessment

Other groundwater aquifers

Table 10: Other groundwater supply source statistics

QBWOS region Total groundwater entitlements as supplemented water allocations (ML/a)

Total groundwater entitlements as interim supplemented water allocations (ML/a)

Total groundwater entitlements as unsupplemented water allocations (ML/a)

Total groundwater entitlements as unsupplemented licences to take water (ML/a)*

Total volumetric water entitlement (ML/a)

Far North 99 164 99 164

North 183 675 183 675

North West 2 251 2 251

Central 14 500 45 160 131 783 191 443

Wide Bay Burnett 10 466 43 870 37 428 91 764

South East 64 143 64 143

South West 27 014 257 256 284 270

West 20 866 20 866

Total 14 500 10 466 116 044 796 566 937 576

* Groundwater entitlements issued under an area-based licence are not included in the volumetric assessment

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Queensland’s water suppliesTable 11 shows the 2018-19 account (at June 30, 2019) of Queensland’s volumetrically-authorised water entitlements.

Table 11: Queensland’s water supplies

QBWOS region

Unallocated water reserves1

Allocated water entitlements Total

Surface water Groundwater

Supplemented Unsupplemented

Far North 1 517 150 204 393 424 647 99 164 2 245 354

North 561 244 1 277 969 144 917 183 675 2 167 805

North West

701 706 75 150 281 177 2 251 1 060 284

Central 286 008 605 377 300 117 191 443 1 382 945

Wide Bay Burnett

200 460 625 354 96 995 91 764 1 014 573

South East

37 650 505 510 75 651 64 143 682 954

South West

35 147 230 902 682 952 284 270 1 233 271

West 26 600 2 612 74 883 20 866 124 961

GABORA 39 515 118 377 157 892

Total 3 405 480 3 527 267 2 081 338 1 055 953 10 070 038

1 Unallocated water reserves are current at 30 June 2019, and reflect the full set of Queensland’s strategic, general and other water reserves. This reserve volume is distinct from the definition provided in QBWOS (2017: 26) and the previous releases of QBWOS, which are reported in Table 12.

4.2 Assessing latent capacity in bulk water supply systemsThe Water Act 2000 intends that our demands on Queensland’s water resources are balanced with the needs of the environment. Under each water plan a defined proportion is set aside for each. Of the portion that is set aside for our consumptive use some is allocated (or licenced) to customers directly or through the State’s bulk water providers and some is held in reserve. Some water is lost in storage and distribution. Not all of the available water entitlements across the state are owned though and not all entitlement holders use their full water entitlements each year.

In 2018-19, the UWPP completed its assessment of underutilised water. Underutilisation was calculated for supplemented surface water allocations in the 42 regulated bulk water supply schemes in the state. The method used calculates the volume of water allocations that have been committed (sold, leased or

contracted) but not used since 2006-07 or when the Resource Operations Licence (ROL) was issued even when rainfall was low and water availability was high. Underutilisation was calculated for unsupplemented surface water entitlements for groundwater and surface water management areas where metered use has been recorded for at least 5 years.

The estimates of underutilised water integrate all water products including medium priority, high priority and risk categories into a single value for each water supply scheme. Data on uncommitted allocations and water delivered was provided by each water supply scheme ROL holder. Rainfall data was sourced from the BOM. Water availability was ‘measured’ by announced allocations, this data was sourced from ROL holders.

No consideration was given to delivery infrastructure constraints. Data was examined back to 2006-07 or when the ROL was issued for a scheme. For 26 of the 32 schemes outside south east Queensland data were available from 2006-07. For the remaining six schemes

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outside south east Queensland data were available from 2008-09 to 2010-11; for the 10 schemes inside South East Queensland data were available from 2009-10 to 2014-15.

The UWPP underutilised water assessment considered unsupplemented water use across 2012-17 for 55 supply areas across the state where metered water use has been assessed. Methods for estimating water use (in the absence of meters) are under development and areas that are unmetered have been excluded from this analysis.

The UWPP assessments show that across the state there are:

• ~ 280 000 ML/a of uncommitted supplemented water allocations

• ~ 865 000 ML/a of unused committed supplemented allocations across all uses including irrigated agriculture industrial and urban uses; of this:

– ~ 250 000 ML/a is associated with irrigated agriculture

– ~ 78 000 ML/a is associated with industrial uses

– ~ 390 000 ML/a is associated with urban uses

• a maximum annual take of ~1 400 000 ML with an average take of 550 000 ML was measured from the 3 400 000 ML (annual volumetric limit) of unsupplemented entitlements.

Queensland bulk water opportunities statement

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Table 12: Underutilised water statistics for Queensland

QBWOS Region Unallocated water reserves1

Uncommitted water in water supply schemes2

Underutilised water in water supply schemes3

Underutilised water in surface water management areas4

Underutilised water in groundwater management areas5

Total volume of underutilisation6

Total volume of entitlements used in UWPP underutilisation assessment

Far North 884 050 - 42 500 18 548 19 384 80 432 268 465

North 375 744 104 462 301 790 28 599 40 383 475 234 1 488 206

North West 514 106 10 850 26 550 30 741 36 804 104 945 166 600

West 15 800 22 396 460 3 149 0 3 729 5 761

Central 256 900 133 816 128 605 252 793 9 168 412 962 852 187

Wide Bay Burnett

194 607 0 144 221 39 134 36 766 353 937 779 750

South West 4 600 953 29 290 1 197 323 105 984 1 333 550 2 682 380

South East7 37 150 120 192 300 116 080 0 308 380 628 683

Total 2 265 440 272 597 865 716 1 686 367 248 489 3 080 621 6 872 032

All data are megalitres

1 Unallocated water reserves are current at 30 June 2019, but reflect only a subset of Queensland’s total reserves ‘which may support the development of new and/or expanded bulk water supply systems’. This is consistent with the definition provided in QBWOS (2017: 26) and the previous releases of QBWOS.

2 Uncommitted water in water supply schemes is current at 30 June 2019.

3 Underutilised water in water supply schemes is from the 2017-18 Underutilised Water Partnership Project assessment based on data generally from 2006-07 to 2016-17.

4 Underutilised water in 44 surface water management areas with metered use is from the 2017-18 Underutilised Water Partnership Project assessment based on data from 2012-13 to 2016-17.

5 Underutilised water in 9 Groundwater Management Areas and 4 other groundwater supply areas with metered use is from the 2017-18 Underutilised Water Partnership Project assessment based on data from 2012-13 to 2016-17.

6 Total volume of underutilisation is the sum of the underutilisation data across the supply sources used in this table.

7 In South East Region 9340 ML of groundwater is included in the stated water supply scheme entitlement and commitment to customers as the Central Lockyer Valley WSS sources both groundwater and surface water. This volume is excluded from the groundwater assessment.

Factors that may contribute to the volume of unused water calculated for each scheme and water management area include external product-market influences labour availability rainfall and river flow variability water market and trading arrangements urban water restrictions access to alternative water supplies and current risk management practices (such as where extra entitlement is held as insurance for periods of low water availability but has not been used).

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Lower Weir on the Thomson River

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5. Other initiatives

Capital funding for urban water supply projectsThe Queensland Government provides direct financial support to local governments to investigate and undertake works aimed at delivering and maintaining secure and reliable urban water supplies. Funding programs that were current during the 2018-19 financial year for which funding was allocated to water supply infrastructure and security include:

• Building Our Regions—local government infrastructure projects in regional communities that create flow-on economic development opportunities and jobs (DSDMIP)

• Maturing the Infrastructure Pipeline Program—an infrastructure planning program aligned to the State Infrastructure Plan (DSDMIP)

• Working for Queensland—supporting a number of maintenance and minor infrastructure projects related to water assets that are managed by Queensland local governments (DLGRMA)

• Local Government Grants and Subsidies Program (DLGRMA)

• Indigenous Councils Critical Infrastructure Program provides financial support to deliver critical water wastewater and solid waste infrastructure to Queensland’s Indigenous councils (DLGRMA)

• Special purpose funding project (approved in September 2018) (DLGRMA)

• Townsville City Deal – Townsville water security supply and use (DNRME)

• Safe and healthy drinking water in Indigenous local governments (Health)

Table 13 provides a summary of approved water supply projects that received Queensland Government funding assistance. For further details please refer to the relevant departmental website.

Table 13: State funding for urban water supply projects

QBWOS Region Current projects Current project funding ($)*

Far North 22 30 098 714

North West 13 7 326 410

North 5 163 594 400

West 11 2 984 514

Central 11 3 510 268

Wide Bay Burnett 3 3 584 000

South West 7 3 464 999

South East 0 0

Total 71 214 563 305

Queensland Water Regional Alliance Program The Queensland Water Regional Alliance Program (QWRAP) is an industry-led initiative to investigate regional collaboration on water and sewerage services in regional Queensland. The program is a collaborative effort among the Local Government Association of Queensland, Qldwater Queensland Government (through DNRME) and over 25 participating councils. QWRAP is a key mechanism for achieving improvements in the delivery of water supply and sewerage services in regional Queensland where capacity and financial constraints amongst service providers are a significant issue. It provides a formal opportunity for councils to consider collaboration and alternative regional approaches for managing services. QWRAP has resulted in the formation of five regional collaboration areas, three of which have formed formal water alliances and completion of numerous successful regional initiatives as well as a range of statewide activities and research projects.

In July 2018 the program was extended for four years by the Queensland Government with $4.2 million funding available to support activity across five QWRAP regions (see Figure 1) and an annual research project. State funding includes a ‘bid-pool’ accessible by participating councils to initiate high priority collaboration opportunities. Access to the bid pool

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requires matching funding from participating councils but to date their contributions have far exceeded bid-pool contributions in recognition of the broad savings and community benefits provided.

Ten bid pool projects were approved in the 2018-19 financial year. These regional projects ranged from water security to data management. For the regional water service providers these projects generated benefits such as economy of scale and sharing of skills and knowledge.

Figure 1: QWRAP regions

In 2018 QWRAP won two industry awards: The Queensland Australian Water Association Program Innovation Award and the Institute of Public Works Engineering Australia Queensland Innovation and Sustainability in Water Projects award and was a finalist in the Australian Water Association’s 2019 National Awards.

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13 QGOV (13 74 68)

www.dnrme.qld.gov.au

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Department of Natural Resources, Mines and Energy