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Water Allocation Trading Strategy 2019-20

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Water Allocation Trading Strategy 2019-20 Water allocation trading strategy 2019-20 June 2019 Final Version collaboration integrity commitment initiative Disclaimer This publication may be of assistance to you but the VEWH and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. Accessibility If you would like to receive this publication in an alternative format, please contact the VEWH on 03 9637 8951 or email [email protected]. This document is also available on the internet at www.vewh.vic.gov.au. Acknowledgement of Traditional Owners The VEWH proudly acknowledges Victoria’s Aboriginal communities and their rich culture and pays respect to their Elders past and present. We acknowledge Aboriginal people as Australia’s first peoples and as Traditional Owners and custodians of the land and water on which we rely. We recognise the intrinsic connection of Traditional Owners to Country, and we value their ongoing contribution to managing Victoria’s landscapes. We also recognise and value the contribution of Aboriginal people and communities to Victorian life and how this enriches us. The VEWH recognises the intersection between environmental flow objectives and outcomes for Traditional Owners and Aboriginal Victorians. We acknowledge the ongoing contribution that Aboriginal people are making to planning and managing water for the environment and the benefits that have resulted from these partnerships. The contribution of Traditional Owners to this year’s seasonal watering plan is detailed in the regional introductions. For tens of thousands of years, Aboriginal people have occupied Australia. There have been very different clan and Nation boundaries to those that exist today, often embodying deep cultural relationships with the land and waterways. In this seasonal watering plan, the VEWH has endeavoured, using the best-available information, to name the Traditional Owner groups and their Nations that lived in the area we now call Victoria, and who continue to maintain and enhance long- standing culture and tradition. We have also sought and in some regions have provided some background on local Aboriginal names for waterways. We acknowledge that the Traditional Owner groups and their associations with particular areas are not definitive, and there may be multiple names for the waterways covered by the seasonal watering plan. The VEWH does not claim this information to be exact. We provide such information in the spirit of acknowledgement of Traditional Owners past and present and their long-standing connection to Country. The VEWH embraces the spirit of reconciliation, working towards equity and an equal voice for Traditional Owners. Cover photo: Barwon River page 3 of 21 Contents Executive summary .............................................................................................................. 6 1 Purpose ...................................................................................................................... 7 2 Trade types ................................................................................................................ 8 3 Northern Region ...................................................................................................... 10 3.1 Expected water availability in 2019-20 ...................................................................... 10 3.2 Commercial allocation trade ...................................................................................... 11 3.3 Administrative water transfers ................................................................................... 12 3.3.1 Administrative transfers between VEWH accounts for environmental water delivery .......................................................................................................... 12 3.3.2 Administrative transfers to maximise carryover opportunity .......................... 12 3.3.3 Administrative water transfers to enable reuse of return flows ...................... 13 3.3.4 Administrative transfers for the Snowy River ................................................. 13 3.3.5 Commonwealth Environmental Water Holder transfers ................................. 14 3.3.6 Living Murray program water ......................................................................... 15 3.4 Other potential opportunities ..................................................................................... 15 4 Western Region ....................................................................................................... 16 4.1 Trade opportunities ................................................................................................... 16 5 Central Region ......................................................................................................... 17 5.1 Expected water availability in 2019-20 ...................................................................... 17 5.2 Trade opportunities ................................................................................................... 17 6 Gippsland Region .................................................................................................... 18 6.1 Expected water availability in 2019-20 ...................................................................... 18 6.2 Trade opportunities ................................................................................................... 18 7 Frequently asked questions ................................................................................... 19 7.1 Where can I find out more about this year’s plans for environmental watering in Victoria? .................................................................................................................... 19 7.2 Will VEWH announce its trade decisions? ................................................................ 19 7.3 Has the VEWH bought or sold allocation in the past? ............................................... 20 7.4 How does the VEWH participate in the market? ....................................................... 20 7.5 Does the VEWH take steps to ensure market prices are not affected by VEWH trading? ..................................................................................................................... 21 7.6 Additional questions? ................................................................................................ 21 Executive summary The VEWH’s water allocation trading strategy 2019-20 provides a high-level overview of the types of water trading activities that the VEWH may undertake across Victoria and interstate in 2019-20. Water allocation trade is one of the tools the VEWH uses to effectively manage environmental water. Water trading allows the VEWH to move water to the systems where it is most needed, and to smooth out some of the variability in water availability across systems and across years. This strategy covers both commercial water allocation trade (selling and purchasing water allocation), and administrative water transfers (‘internal’ transfers of VEWH allocation or transfers between water holders). Environmental water availability is expected to be low to moderate across the state in 2019- 20 based on June 2019 climatic outlooks. Average to wet conditions and associated inflows to storages will be required to increase water availability to moderate to high levels. A dry winter-spring 2019 will likely see low supplies across most of the state. Some catchments will only have enough supply to support critical environmental needs, while trade or transfer options may be required to meet critical environmental needs in other systems. Opportunities to purchase allocation may be considered in the Maribyrnong system, depending upon assessment of seasonal conditions and environmental need. Opportunities to trade or transfer in the Latrobe, Werribee and Wimmera-Glenelg systems as well as across northern Victoria to increase supply may also be investigated, particularly if dry conditions continue. The VEWH may consider selling part of its allocation in northern region systems if foreseeable environmental demands can be met. If this occurs, it would most likely be from summer 2019-20 onwards and be more likely following an average to wet winter-spring. In 2019-20, the VEWH intends to implement a range of administrative transfers to facilitate the delivery of environmental water across Victoria or for carryover purposes, including water held by other environmental water holders. Similarly, administrative transfers will be undertaken to transfer allocation available for use in the Snowy River. For further information on environmental water trade, as well as where, when, how and why environmental water is being released in Victoria, visit www.vewh.vic.gov.au. VEWH Water Allocation Trade Strategy 2019-20 | page 6 of 21 1 Purpose The VEWH’s 2019-20 water trading strategy provides a high-level overview of the types of water trading activities that VEWH may undertake across Victoria in 2019-20. Water allocation trade is one of the tools the VEWH uses to effectively manage water for the environment. Water trading allows the VEWH to move water to the systems where it is most needed, and to smooth out some of the variability in water availability across systems and across years. As a public sector organisation, the VEWH takes its trade responsibilities extremely
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