Lake Tekapo Operating Level Change

GENESIS ENERGY LIMITED

LAKE TEKAPO OPERATING LEVEL CHANGE

Resource Consent Application and Assessment of Environmental Effects

February 2018

APPLICATION FOR A CHANGE OF CONSENT CONDITIONS UNDER SECTION 127 OF THE RESOURCE MANAGEMENT ACT 1991

To: Canterbury Regional Council

1. GENESIS ENERGY LIMITED (“Genesis”) applies for changes to the conditions of Resource Consent CRC905301.4 to authorise a temporary modified operating regime for Lake Tekapo water levels.

2. The activity to which the application relates is as follows: Genesis holds the necessary authorisations from Environment Canterbury for its operation of the Tekapo Power Scheme. The resource consents for the scheme were granted in 1991 and expire in 2025.

Genesis is seeking a change the conditions of Resource Consent CRC905301.4 to authorise an increased maximum lake level, to provide the ability to store additional water due to unforeseen plant outages. Specifically, Genesis is seeking to change:

a) The Maximum Control lake level required by condition 6 of Resource Consent CRC905301.4 for February (709.7 metres above sea level [masl]), March (710.0 masl) and April (710.3 masl) 2018 to match the May (710.6 masl) Maximum Control lake level; and

b) The spill flow operating regime required by condition 8 of Resource Consent CRC905301.4 for the period February 2018 to April 2018 inclusive.

Condition 6 requires that Resource Consent CRC905301.4 is exercised such that the Maximum Control Level set out in Clause 1.1 of the “Tekapo Power Scheme, Appendix A, Extracts of Waitaki Operating Rules (9 November 1990) as modified by an order pursuant to section 122 of the Electricity Industry Act 2010” is maintained.

Condition 8 of Resource Consent CRC905301.4 requires that Lake Tekapo spill flows be managed in accordance with the provisions contained in the “Tekapo Power Scheme, Appendix A, Extracts of Waitaki Operating Rules (9 November 1990) as modified by an order pursuant to section 122 of the Electricity Industry Act 2010”.

Genesis Energy seeks the following change to the conditions of Resource Consent CRC905301.4 by adding the following condition 8A:

Notwithstanding conditions 6 and 8, for the months of February 2018 to April 2018 inclusive:

a) A Maximum Control Level of 710.6 masl applies;

b) The total discharge from Lake Tekapo (machine discharge plus spillway) referred to in clauses 1.8 and 1.8A of Appendix A shall not exceed the values specified in the respective tables in clauses 1.8 and 1.8A; and

c) If projections of flows and levels made by the Consent Holder have not occurred as predicted or other events beyond the direct control of the Consent Holder have occurred the total discharge from Lake Tekapo in clause b) can be amended in agreement with Meridian Energy and notification to Environment Canterbury flood managers, for flood management and dam safety purposes. Genesis Energy will provide Environment Canterbury a record of decisions made between Genesis and Meridian.

3. The site at which the proposed activity is to occur is as follows: Lake Tekapo

4. The full name and address of each owner or occupier (other than the applicant) of the site to which the application relates are as follows: Crown Land administered by LINZ. Genesis has an operating easement over this land which allows Genesis the rights to undertake its activities on this land.

5. The other activities that are part of the proposal to which the application relates are as follows: The proposal is described in full in in the Assessment of Environmental Effects.

6. The following additional resource consents are needed for the proposal to which this application relates and have been applied for: No other resource consents are required.

7. Attached is an assessment of the proposed activity’s effect on the environment that— (a) Includes the information required by clause 6 of Schedule 4 of the Resource Management Act 1991; and

(b) Addresses the matters specified in clause 7 of Schedule 4 of the Resource Management Act 1991; and

(c) Includes such detail as corresponds with the scale and significance of the effects that the activity may have on the environment.

8. Attached is an assessment of the proposed activity against the matters set out in Part 2 of the Resource Management Act 1991.

9. Attached is an assessment of the proposed activity against any relevant provisions of a document referred to in section 104(1)(b) of the Resource Management Act 1991, including the information required by clause 2(2) of Schedule 4 of that Act.

10. Attached is an assessment of any effects that the proposed activity may have on the environment in accordance with section 88 of, and the Fourth Schedule to, the Act.

11. No other information is required to be included in the application by the Waitaki Catchment Water Allocation Regional Plan or the Canterbury Land and Water Regional Plan.

Dated this 1st Day of February 2018

Signature:

Elinor Watson Environmental Lead – South Island Genesis Energy Limited

Address for service of applicant:

Abbie Fowler Genesis Energy Limited Private Bag 3131 Hamilton 3240

Telephone: +64 7 984 1130 Cellphone: +64 21 385 991

Email: [email protected]

Table of Contents Table of Contents 5

1 INTRODUCTION 6

1.1 Project Background and Rationale 6

2 EXISTING ENVIRONMENT 7

3 DESCRIPTION OF THE PROPOSED ACTIVITY AND CHANGES REQUESTED 8

4 EFFECTS OF THE CHANGES TO THE LAKE TEKAPO OPERATING REGIME 11

4.1 Positive Effects 11 4.2 Land Erosion and Inundation 11 4.3 Flooding Risk 12 4.4 Dam Safety 12 4.5 Cultural Effects 12 4.6 Aquatic Ecology / Other Environmental Matters 13

5 CONSULTATION 13

6 STATUTORY ASSESSMENT 14

6.1 Overview 14 6.2 Requirements of a Change of Condition Application 14 6.3 Notification 14 6.3.1 Public Notification (Section 95A) 14 6.3.2 Affected Persons and Limited Notification 15 6.4 Section 104 Assessment 16 6.4.1 Introduction 16 6.4.2 Actual and Potential Effects 17 6.4.3 Relevant Statutory Planning Documents 17 6.5 Part 2 Matters 22 6.6 Summary 23

7 CONCLUSION 23

List of Tables

Table 1: Lake Tekapo Maximum Operating Control Level. 6

Table 2: Lake Tekapo Maximum Operating Control Level. 9

List of Figures

Figure 1: Changes in Lake Tekapo Water Levels Since 2000. 9

Figure 2: Existing and Proposed Lake Tekapo Control Limits. 10

1 INTRODUCTION

This Assessment of Environmental Effects (“AEE”) has been prepared in support of an application to change the conditions of Resource Consent CRC905301.4, under the Resource Management Act 1991 (“RMA”) by Genesis Energy Limited (trading as “Genesis”).

1.1 Project Background and Rationale Genesis has owned and operated the Tekapo Power Scheme since 1 June 2011. Lake Tekapo is the source of water for the entire Tekapo Power Scheme. The lake is dammed (and water levels controlled) by the Lake Tekapo Control Structure at the head of the Tekapo River. Tekapo A Power Station generates electricity from water diverted from Lake Tekapo, while Tekapo B Power Station is powered by water from the Tekapo Canal (which includes water that has passed through the Tekapo A Power Station) with outflows entering Lake Pukaki. This same water then passes through a further six power stations operated by Meridian Energy within the Waitaki Catchment.

In November 2017, Genesis confirmed that the Tekapo B Generator 3 suffered a fault, with the unit now not expected to return to service at full capacity until mid to late April. This outage means that only approximately half of the water which would normally be used to generate electricity at the Tekapo B Power Station and downstream stations operated by Meridian Energy can be channelled through the Tekapo Canal until such time as the generator can be returned to service.

The range of water storage capacity in Lake Tekapo is able to be utilised within the currently consented maximum control (“MaxCL”) and minimum control (“MinCL”) levels applicable to the lake. The MaxCL differs for different months of the year, as set out in Table 1.

Month MaxCL February 709.70 masl1 March 710.00 masl April 710.30 masl May 710.60 masl June 710.90 masl July 710.90 masl August 710.30 masl September 709.70 masl October – January 709.70 masl

Table 1: Lake Tekapo Maximum Operating Control Level.

Genesis estimates that only half the normal volume of water is being passed through the Tekapo Canal due to the major unplanned Tekapo B outage, with consequential effects on generation at both the Tekapo B Power Station and downstream Meridian Energy power stations. The outage is also

1 “masl” means “metres above sea level”.

influencing the storage in Lake Pukaki, New Zealand’s largest hydro-generation storage lake because of lower than average inflows from the Tekapo Canal.

Because only half the volume of water is being passed through the Tekapo Canal, the level in Lake Tekapo is rising toward (and is likely to exceed) the MaxCL for the February 2018 to April 2018 (inclusive) period, with a consequent requirement to spill water from Lake Tekapo in order to maintain the consented lake levels. With current low inflow rates to the lake, this spill would be entirely due to the Generator 3 outage meaning that water would not be used for electricity generation as it would otherwise be if the outage had not occurred.

Genesis anticipates the low inflow rates will continue for the foreseeable future, but that lake levels will continue to rise while the generation outage continues. Spilling water from Lake Tekapo will result in significant reductions in renewable electricity generation output from the Tekapo Power Scheme (in addition to that caused by the present outage), and three downstream hydro-electricity stations operated by Meridian Energy, and will also reduce the amount of water that could be stored in Lake Pukaki for use over the winter period. Any water not used for generation in the Upper Waitaki will have to be offset via alternative forms of electricity generation (typically non-renewable).

In response to the present situation of low catchment inflows and generation equipment outage, Genesis proposes a change to the resource consent conditions setting the MaxCL for the period February 2018 to April 2018 inclusive to enable water that would normally be used for electricity generation purposes but would now be spilled, to be retained in Lake Tekapo for subsequent electricity generation use through the Tekapo and Waitaki Power Schemes. A change to the spill regime associated with the proposed lake control levels for February to April is also proposed.

The proposed change will enable the water in Lake Tekapo to be used efficiently and effectively for renewable electricity generation. All other conditions of the resource consents held for the Tekapo Power Scheme ensure that all effects are appropriately avoided, remedied and / or mitigated. Genesis is not seeking to change any of these conditions.

In accordance with section 127(1) of the RMA, it is only how the change in operating regime of Lake Tekapo would change the effects of the Tekapo Power Scheme on the environment that is relevant when considering this application. All existing effects of the Tekapo Power Scheme, including lake level changes that presently occur at Lake Tekapo, are fully authorised until 2025.

2 EXISTING ENVIRONMENT

The Tekapo Power Scheme is located at the head of the Waitaki Valley in the Mackenzie District and uses water from the glacial-fed Lake Tekapo to generate electricity through two power stations. The scheme is situated close to the majestic Aoraki / Mt Cook and near the Lake Tekapo township.

Lake Tekapo is the source of water for the entire Tekapo Power Scheme. The lake is dammed by the Lake Tekapo Control Structure at the head of the Tekapo River which also forms the bridge over the river at State Highway 8 (SH8).

Construction of the Tekapo A Power Station (27 Megawatts (MW)) began in 1938 and was finally commissioned in 1951. Tekapo A Power Station generates an average of 160 Gigawatt hours (GWh) of electricity per year from water diverted from Lake Tekapo via a 1.6 km tunnel.

In 1970 a 25.5 km canal was constructed to take outflows from Tekapo A Power Station and the upper Tekapo River (near the Tekapo A Power Station) to Tekapo B Power Station. The Tekapo Canal has a maximum design flow of 130 cubic metres per second (m3/s).

Water in Lake Tekapo can bypass Tekapo A Power Station by being released through the Lake Tekapo Control Structure. When the control gates are open, water flows down the upper Tekapo River to Lake George Scott. Water can then be released into the Tekapo Canal via a gate in the control structure that impounds Lake George Scott, or continues to the Tekapo River.

Commissioned in 1977, Tekapo B Power Station (160 MW) is the only power station in New Zealand surrounded by water. Sitting in Lake Pukaki, essentially as an island, the station is connected to land via a 74 m long bridge. Constructed on concrete raft foundations, Tekapo B is 46 m high. However, nearly two thirds of the power station is below the waterline. The station is powered by water from the Tekapo Canal with outflows entering Lake Pukaki. This same water then passes through a further six Meridian Energy owned power stations within the Waitaki Catchment.

Since 1952, when the Lake Tekapo Control Structure was commissioned, the lake level range has extended primarily between 703 m and 710.6 m. However, since 1996, the lower part of the range has been entered less often, with the range mainly being between 704.5 m and 710.6 m. The maximum recorded level was 712.55 m in December 1984, while the lowest recorded level was 701.75 m in August 1976. The most recent high water level was in May 2009, when the lake reached 711.6 m. The lake has been below 704.1 m twice since 1993, with the most recent low level being in August 2008 with the lake at approximately 704.0 m. Lake levels can vary outside the maximum control levels specified in Resource Consent CRC905301.4 when inflows to Lake Tekapo exceed the maximum possible outflows from the lake.

3 DESCRIPTION OF THE PROPOSED ACTIVITY AND CHANGES REQUESTED

The variation in the range of water levels since 2000 in Lake Tekapo based on the currently consented MaxCL and MinCL is shown in Figure 1. This figure demonstrates the widely varying water level regime that exists in Lake Tekapo, with actual levels determined not only by power scheme operation but also natural inflows. The present MaxCL specified in the Tekapo Power Scheme consent is exceeded from time to time because of natural inflows. As noted earlier, the present lake level is trending towards the MaxCL despite very low inflows to the lake, because of the Tekapo B generator outage.

Genesis seeks a change to the MaxCL for the months February 2018 to April 2018 (inclusive, as set out in Table 2). The proposed February – April maximum lake level is within the historical maximum lake level range recorded for Lake Tekapo.

The proposed change of conditions to increase the MaxCL for the period February 2018 to April 2018 (inclusive) to 710.6 masl, is shown graphically in Figure 2.

In addition to the change of lake levels, Genesis is also proposing a change to the spill regime applicable to Lake Tekapo for this period. This change is to ensure that flood and downstream dam safety risks can be managed effectively and appropriately mitigated.

Figure 1: Changes in Lake Tekapo Water Levels Since 2000.

Month Present MaxCL Proposed MaxCL (2018 only) February 709.70 masl 710.60 masl March 710.00 masl 710.60 masl April 710.30 masl 710.60 masl May 710.60 masl 710.60 masl June 710.90 masl 710.90 masl July 710.90 masl 710.90 masl August 710.30 masl 710.30 masl September 709.70 masl 709.70 masl October – January 709.70 masl 709.70 masl

Table 2: Lake Tekapo Maximum Operating Control Level.

Figure 2: Existing and Proposed Lake Tekapo Control Limits.

As part of managing the Tekapo Power Scheme, lake levels and spill flows, Genesis Energy routinely makes predictions of likely inflows and lake levels based on a variety of factors, including for example, weather patterns, generation output, lake level changes (including downstream lake levels) and flow rates at various locations. Actual flows and lake levels may not occur as predicted, meaning that in some circumstances additional measures are required in order to ensure that potential risks and effects associated with the operation of the Tekapo Power Scheme are managed appropriately. In this regard, Genesis has operating agreements with Meridian Energy that may need adjustment to take account of specific situations as they arise during the period for which elevated lake levels are sought. The proposed changes to the consent conditions include provision for alternative operating regimes to be implemented by agreement with Meridian Energy and following consultation with the Environment Canterbury.

Genesis is seeking the temporary change to the MaxCL of Lake Tekapo to avoid spilling unnecessarily due to the generator outage. Given this years below average inflows, if the outage had not occurred the lake levels would be significantly lower and the risk of spill would be extremely low.

4 EFFECTS OF THE CHANGES TO THE LAKE TEKAPO OPERATING REGIME

4.1 Positive Effects

The Tekapo Power Scheme, including both the Tekapo A and B stations, relies entirely on water from Lake Tekapo for electricity generation purposes. Water that generates electricity as it passes through the Tekapo A and B stations is then used to generate electricity in downstream power stations owned and operated by Meridian Energy. Water spilled from Lake Tekapo cannot be used for electricity generation purposes in the Tekapo A or B stations and will bypass three Meridian Energy power stations (Ohau A, B and C Power Stations). Allowing an increased water level in Lake Tekapo for the period February 2018 – April 2018 means that water can be used for subsequent electricity generation through the Tekapo A and B stations (including the reinstated Tekapo B generator) and the Meridian Stations. With the low snow melt experienced for the present season, and consistent low lake inflows recently, retention of water in Lake Tekapo will provide valuable renewable electricity generation once the Tekapo B generator is reinstated.

It is important to note that normally the lake levels of Tekapo would be much lower, and there would be very little risk of spill at this time of year and given the inflows currently being experienced. It is only due to the outage at Tekapo B that the lake is unusually high and this consent change is required.

If water is being spilled from Lake Tekapo, the Tekapo Whitewater Course cannot be operated, putting several planned recreational release events using this facility at risk. It is noted that recreational releases are planned from mid-March 2018, with the NZ National Slalom competition scheduled for the period from late March through to early April 2018. The NZ National Slalom competition has participants coming not only from around New Zealand, but internationally also.

Raising the Lake Tekapo level for the period February 2018 to April 2018 reduces the risk of low lake levels being experienced in the late summer – early autumn period. This will enable renewable generation to be maintained during this period.

4.2 Land Erosion and Inundation

Higher lake levels can result in some shore erosion effects. In this instance, the lake levels proposed are within the range already experienced in Lake Tekapo at varying times of the year and under varying climatic conditions. In that regard, additional lake shore erosion or inundation effects beyond that which would normally be experienced for the lake would not be anticipated (other than the time of year that it may occur). The development of the shore in relation to the operational range of water level can be regarded as an ongoing process. However, much of the shore is dynamically stable, in that in the short to medium term, the beaches adjust to variations in wave energy and water level with a through-flow of sediments, either across or along the shore, and very little noticeable change to the shore. On that basis no noticeable change in shoreline would be anticipated from the short duration of raised lake levels proposed in this application.

The potential effect of inundation on road infrastructure around the lake and farm buildings is expected to be negligible, since present lake levels can already rise to (and above) the levels proposed in this application. Similarly, the potential effect of inundation on the hydraulic interface with Lakes McGregor and Lake Alexandrina (including effects on the fishery and hut settlements on its shores) will be negligible, given present lake level variations.

4.3 Flooding Risk

The consented maximum control levels for Lake Tekapo for the summer – early autumn period recognise that there is a greater risk of high inflows (typically associated with snow melt and cyclone activity) during this period. As has been noted earlier, there have been low snow melt inflows over recent months and inflows generally to the lake have been low. Raising the allowable maximum control level in the lake will reduce the storage capacity in the lake for storm events. However, this can be managed by appropriate flood management rules. Such storm events are likely to be reasonably predictable several days in advance, which in association with the proposed flood management / spill control rules will appropriately mitigate the risks associated with reduced storage capacity.

Based on the information delivered from Damwatch to date, Genesis understands there will be no exacerbated flood inundation concerns. Genesis will supply the Damwatch report including any further information pertaining to dam safety or flood management on Friday 2 February when we expect to have received this information from Damwatch. We also anticipate being able to provide Meridian Energy’s written approval at this time.

4.4 Dam Safety

As noted above, increased water levels in Lake Tekapo over the period February – April will result in reduced flood storage capacity in the lake, meaning that greater spill flows could be experienced during adverse weather conditions. Similarly, the increased volume of water stored in Lake Tekapo as proposed potentially results in a marginally increased risk for downstream dams, if for any reason the stored volume is unintentionally and suddenly released.

Based on the information delivered from Damwatch to date, Genesis understands there will be no exacerbated dam safety risks as a result of this short-term consent variation. Genesis will supply the Damwatch report including any further information pertaining to dam safety or flood management on Friday 2 February when we expect to have received this information from Damwatch. We also anticipate being able to provide Meridian Energy’s written approval at this time.

4.5 Cultural Effects

Lakes McGregor and Tekapo are both Statutory Acknowledgement Areas (areas with which Ngāi Tahu has a particular association) which recognise Ngāi Tahu’s mana in relation to a range of sites and areas in the South Island.

Genesis has engaged with Te Rūnanga o Ngāi Tahu and local Rūnanga regarding potential cultural effects of the proposed short-term increase in lake levels. Te Rūnanga o Ngāi Tahu has indicated that their preference is for spill in the Tekapo River. Genesis considers that spill would be unlikely to eventuate during the time period for which amended lake levels would occur under normal operations and that in any event, the effects of the proposed lake level change are within the extent of effects already provided for by the resource consent. Genesis considers therefore that the cultural effects of this application are less than minor.

4.6 Aquatic Ecology / Other Environmental Matters

Increasing the level of Lake Tekapo (for a short period during February to April 2018) is unlikely to affect the braided river habitat at the northern end of the lake (given existing lake level fluctuations), nor will it affect benthic invertebrates, macrophytes, or other aquatic ecology values in Lake Tekapo.

5 CONSULTATION

Genesis Energy has consulted with the parties listed regarding this application:

 Te Rūnanga o Ngāi Tahu - Te Rūnanga o Ngāi Tahu has indicated that their preference is for spill in the Tekapo River. Te Rūnanga o Ngāi Tahu has to date not yet responded formerly to this proposal, however Genesis considers that as there will be no additional effects beyond what are already consented and that spill during this period would normally be unlikely to occur, the cultural effects of this application are less than minor.  Te Rūnanga o Arowhenua – Te Rūnanga o Arowhenua initially indicated they did not have concerns with the proposal, however diverted to Aoraki Environmental Consultancy Limited to assess cultural effects of the proposal. Aoraki Environmental Consultancy Limited sought to take advice from Te Rūnanga o Ngāi Tahu. Te Rūnanga o Ngāi Tahu has, to date, not yet responded formerly to this proposal, however Genesis considers that as there will be no additional effects beyond what are already consented and that spill during this period would normally be unlikely to occur, the cultural effects of this application are less than minor. If Genesis receives further feedback from either Te Rūnanga o Ngāi Tahu or Te Rūnanga o Arowhenua we will provide this to Environment Canterbury.  Mackenzie District Council – AEE has been adjusted to address advice received.  Central South Island Fish and Game – Would prefer to see some spill from Lake Tekapo however acknowledge that these are unique circumstances and therefore do not oppose Genesis applying for this consent.  Tekapo Whitewater Trust / Whitewater New Zealand – supportive of this application as the change would mean it is more likely that scheduled recreational releases (including for the New Zealand National Slalom Championships) would be able to proceed. The Slalom championships have participants due to arrive from New Zealand and internationally.  Meridian Energy Ltd. – Meridian have indicated support for this proposal, however are reviewing flood management and dam safety analysis before providing written approval. This written approval along with the analysis is expected to be available to Environment Canterbury by Friday 2 February.  Lake Tekapo Community Board – The Lake Tekapo Community Board are supportive of the proposal and appreciate the rationale for this consent variation.  Department of Conservation (DOC) – DOC were provided the information and responded that they did not consider there would be any adverse effects on flora / fauna due to the temporary lake level increase.  Forest and Bird – Genesis has not been able to make contact with Forest and Bird regarding this proposal, however Genesis will forward any feedback on from Forest and Bird if a response is received.

6 STATUTORY ASSESSMENT

6.1 Overview

The RMA is the principal statutory document governing the use of land, air and water. The purpose of the RMA, as set out in section 5(1), is to “promote the sustainable management of natural and physical resources”. This section of the AEE sets out the framework under the RMA for proposed changes that are being sought from Environment Canterbury.

6.2 Requirements of a Change of Condition Application

Section 88 of the RMA requires that an application for a change of condition be made in the prescribed form and manner, and include, in accordance with the Fourth Schedule, the information relating to the activity, including an assessment of the activity's effects on the environment, as required by Schedule 4.

The change of consent condition application accompanying this AEE is in the prescribed form, as set out in Form 10 of the Resource Management (Forms, Fees, and Procedure) Regulations 2003.

In accordance with Section 1 of Schedule 4 of the RMA, in each case, the information required by its other sections, and which is included in this AEE, is specified in sufficient detail to satisfy the purpose for which it is required.

By way of summary, the AEE meets the requirements of the Fourth Schedule, and the requirements of section 88.

6.3 Notification

Sections 95A – 95G of the RMA set out the matters that a Consent Authority must consider when whether to notify an application for a resource consent. These sections are considered below.

6.3.1 Public Notification (Section 95A) Step 1 (Mandatory Notification):  Genesis has not requested public notification of the application (95A(3)(a));  Public notification is not required under section 95C (95A(3)(b)); and  The application is not made jointly with an application to exchange recreation reserve land (95A(3)(c)).  The application is not subject to mandatory public notification (95A(2)). Step 2 (Public Notification Precluded):  The application is not subject to a rule or national environmental standard that precludes public notification (95A(5)(a)); and  The application is not for an activity listed in section 95A(5)(b).  Public notification is not precluded under section 95A(4).

Step 3 (Public Notification Required in Certain Circumstances):  The application is not subject to a rule or national environmental standard that requires public notification (95A(8)(a)); and  The activity will not have adverse effects on the environment that are more than minor (95A(8)(b)).  Public notification of the application is not required under section 95A(7). Step 4 (Special Circumstances):  No special circumstances requiring public notification apply to the application in regard to section 95A(4).  Public notification is not required under section 95A.

6.3.2 Affected Persons and Limited Notification If a Consent Authority does not publicly notify an application it must decide if there are any affected persons, an affected protected customary rights group, or affected customary marine title group in relation to the activity, whom it must give limited notification of the application.

Section 127(4) and section 95E(1) provide direction for identifying affected persons to an application to change a consent condition. They state:

Section 127

…

(4) For the purposes of determining who is adversely affected by the change or cancellation, the consent authority must consider, in particular, every person who—

(a) made a submission on the original application; and

(b) may be affected by the change or cancellation.

Section 95E

(1) For the purpose of giving limited notification of an application for a resource consent for an activity to a person under section 95B(4) and (9) (as applicable), a person is an affected person if the consent authority decides that the activity’s adverse effects on the person are minor or more than minor (but are not less than minor).

…

It is clear that the threshold for determining whether a person is “affected” is whether the effects of the activity on that person will be minor or more than minor, and that in particular, the effects on every person who made a submission on the original application must be considered. It also directs that in making that decision the permitted baseline principle may be applied.

For reasons outlined in section 4 of this AEE all adverse effects of changes to the Lake Tekapo operating levels on any person will be less than minor.

With respect to the process set out in section 95B:

Step 1 (Certain Affected Groups and Persons):  There are no protected customary rights groups (95F) relevant to the area (95B(2)(a));  There are no protected customary marine rights groups (95G) relevant to the area (95B(2)(b));  The proposed activity is on or adjacent to, or may affect, land that is the subject of a statutory acknowledgement (95B(3)(a)); and  The proposed activity will result in adverse effects that are less than minor on the person (Te Rūnanga o Ngāi Tahu) to whom the statutory acknowledgement is made.  The application is not subject to limited notification under section 95B step 1. Step 2 (Limited Notification Precluded):  The application is not subject to a rule or national environmental standard that precludes public notification (95B(6)(a)); and  The application is not for an activity listed in section 95B(6)(b).  Limited notification is not precluded under section 95B(5). Step 3 (Certain Other Affected Persons):  The application is not for an activity listed in section 95B(7)(a); and  The proposed activity will not have adverse effects on any person (including original submitters to the application) that are minor or more than minor (95B(8)).  Limited notification of the application is not required under section 95B(9). Step 4 (Special Circumstances):  No special circumstances requiring notification of any other person apply to the application.in regards to section 95B(10).  Limited notification is not required under section 95B.

No person is considered to be affected by the change to the Lake Tekapo operating levels in a RMA section 95 context, and no person needs to be notified in respect of these applications.

6.4 Section 104 Assessment

6.4.1 Introduction Section 104 of the RMA lists the matters that a consent authority must have regard to in determining whether a resource consent application should be granted. It states:

(1) When considering an application for a resource consent and any submissions received, the consent authority must, subject to Part 2, have regard to–

(a) any actual and potential effects on the environment of allowing the activity; and

(ab) any measure proposed or agreed to by the applicant for the purpose of ensuring positive effects on the environment to offset or compensate for any adverse effects on the environment that will or may result from allowing the activity; and

(b) any relevant provisions of—

(i) a national environmental standard:

(ii) other regulations:

(iii) a national policy statement:

(iv) a New Zealand coastal policy statement:

(v) a regional policy statement or proposed regional policy statement:

(vi) a plan or proposed plan; and

(2) When forming an opinion for the purposes of subsection (1)(a), a consent authority may disregard an adverse effect of the activity on the environment if a national environmental standard or the plan permits an activity with that effect.

(2A) When considering an application affected by section 124 or 165ZH(1)(c), the consent authority must have regard to the value of the investment of the existing consent holder.

Section 104 of the RMA does not give any of the matters to which a consent authority is required to have regard primarily over any other matter. All of the relevant matters are to be given such weight as the consent authority sees fit in the circumstances, and all provisions are subject to Part 2 of the RMA.

6.4.2 Actual and Potential Effects In respect to clause (1)(a) of section 104 of the RMA, the actual and potential effects on the environment in respect to the proposal are set out in section 4 of this AEE. By way of summary, it is concluded that all adverse effects can be appropriately avoided, remedied or mitigated such that the proposal will promote the sustainable management purpose of the RMA.

6.4.3 Relevant Statutory Planning Documents In terms of clause (1)(b) of section 104 of the RMA, an assessment of the activities associated with the proposal against the provisions of the National Policy Statement for Renewable Electricity Generation 2011 (“NPS REG”), Canterbury Regional Policy Statement (“RPS”), and Waitaki Catchment Water Allocation Regional Plan (“WACA Plan”) is provided below.

National Policy Statement for Renewable Electricity Generation 2011

The NPS REG came into effect on 13 May 2011. It seeks to confront two major energy challenges as New Zealand seeks to meet its growing energy demand, including:

1) Responding to the risks of climate change by reducing greenhouse gas emissions caused by the production and use of energy; and

2) The delivery of a clean, secure and affordable energy while treating the environment responsibly.

Policies within the NPS REG that are relevant to the proposed changes include:

POLICY A

Decision-makers shall recognise and provide for the national significance of renewable electricity generation activities, including the national, regional and local benefits relevant to renewable electricity generation activities. These benefits include, but are not limited to:

…

b) maintaining or increasing security of electricity supply at local, regional and national levels by diversifying the type and/or location of electricity generation;

…

POLICY B

Decision-makers shall have particular regard to the following matters:

…

b) even minor reductions in the generation output of existing renewable electricity generation activities can cumulatively have significant adverse effects on national, regional and local renewable electricity generation output; and

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POLICY C1

Decision-makers shall have particular regard to the following matters:

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b) logistical or technical practicalities associated with developing, upgrading, operating or maintaining the renewable electricity generation activity;

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e) adaptive management measures.

Policy A(b) of the NPS REG requires decision-makers to recognise and provide for the maintenance of the electricity supply. In this regard, the proposed changes will ensure that the electricity supply from the Tekapo Power Scheme is maintained by enabling water to be stored in Lake Tekapo, rather than spilling that water without utilising it to generate electricity.

Further to Policy A(b), above, Policy B(b) requires decision makers to have particular regard to the significant adverse effects on generation output even a minor reduction can have. While Tekapo B is not operating at full capacity, there is a reduction in the generation output that is unavoidable, to subsequently spill water from Lake Tekapo as a result of not having capacity to utilise that water for generation has the potential to result in greater reductions in the generation output in the longer term.

Over the period February to April 2018, the proposed changes will provide Genesis greater operational certainty, the ability to correlate lake levels with natural inflows, and obtain generation value from the revised lake level range, thereby enabling the most efficient use of the water resource.

Policy C1(b) requires decision-makers to have particular regard to the practicalities of operating renewable electricity generation activities. The Tekapo Power Scheme is driven by the volume of water able to be held in Lake Tekapo, and the current stepped nature of the consented operating range and equipment outage mean that more water would be spilled (and associated generation lost)

than would otherwise be the case at this time of year. Changing the conditions to allow an increased control level for the February to April period will alleviate this, while providing flexibility in the generation of electricity, increasing present storage capacity, and increasing renewable electricity generation from Lake Tekapo.

Canterbury Regional Policy Statement

The RPS became operative on 15 January 2013 and provides an overview of the resource management issues in the Canterbury region, and the objectives, policies and methods to achieve integrated management of natural and physical resources. Relevant provisions include:

7.3.1 Adverse effects of activities on the natural character of fresh water

To identify the natural character values of fresh water bodies and their margins in the region and to:

1. preserve natural character values where there is a high state of natural character;

2. maintain natural character values where they are modified but highly valued; and

3. improve natural character values where they have been degraded to unacceptable levels;

unless modification of the natural character values of a fresh water body is provided for as part of an integrated solution to water management in a catchment in accordance with Policy 7.3.9, which addresses remedying and mitigating adverse effects on the environment and its natural character values.

7.3.2 Natural character of braided rivers and lakes

To maintain the natural character of braided rivers, and of natural lakes by:

…

3. in respect of every natural lake by limiting any use of the lake for water storage so its level does not exceed or fall below the upper or lower levels of its natural operating range;

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7.3.10 Harvest & storage of fresh water

To recognise the potential benefits of harvesting and storing surface water for:

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2. improving the storage potential and generation output of hydro-electricity generation activities;

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7.3.11 Existing activities and infrastructure

In relation to existing activities and infrastructure:

1. to recognise and provide for the continuation of existing hydro-electricity generation and irrigation schemes, and other activities which involve substantial investment in infrastructure; but

2. require improvements in water use efficiency and reductions in adverse environmental effects of these activities, where appropriate.

Policy 7.3.1 seeks to preserve, maintain and improve natural character values of fresh water bodies. In this regard the proposed changes will maintain the lake levels between the upper and lower limits currently in place, thereby ensuring that the natural character of Lake Tekapo will be maintained.

Policy 7.3.2.3 seeks to maintain the natural character of natural lakes by maintaining the upper and lower levels of its natural operating range. As set out in section 3, the proposed changes will maintain the lake level between its current upper and lower operating limits.

Policy 7.3.10.2 seeks to recognise the benefits of storing surface water to improve the storage potential and hydroelectricity generation output. The proposed changes will provide for an increased storage during February to April 2018 and will increase the potential generation output from the Tekapo Power Scheme and downstream Meridian Energy power stations.

16.3.3 Benefits of renewable energy generation facilities

To recognise and provide for the local, regional and national benefits when considering proposed or existing renewable energy generation facilities, having particular regard to the following:

1. maintaining or increasing electricity generation capacity while avoiding, reducing or displacing greenhouse gas emissions;

2. maintaining or increasing the security of supply at local and regional levels, and also wider contributions beyond Canterbury; by diversifying the type and/or location of electricity generation;

…

Policy 16.3.5 — Efficient, reliable and resilient electricity generation within Canterbury

To recognise and provide for efficient, reliable and resilient electricity generation within Canterbury by:

…

4. maintaining the generation output and enabling the maximum electricity supply benefit to be obtained from the existing electricity generation facilities within Canterbury, where this can be achieved without resulting in additional significant adverse effects on the environment which are not fully offset or compensated.

Policy 16.3.3 seeks to recognise and provide for the benefits of renewable electricity generation, while Policy 16.3.5 recognises the importance of resilient and reliable electricity generation facilities. In this regard, the proposed changes will:

 Increase the stored electricity generation capacity within Lake Tekapo;

 Increase potential security of electricity supply by increasing the available capacity of Lake Tekapo and ensuring water is available for generation when the Tekapo B generation is reinstated; and

 Increase renewable electricity generation than would otherwise be the case with the Tekapo B generation outage.

Policy 16.3.5.4 seeks to recognise and provide for efficient, reliable and resilient electricity generation by enabling the maximum electricity supply benefit to be obtained by existing facilities. The proposed changes enable maximum generation to occur despite the Tekapo B generator outage. As set out in section 4 the adverse effects of the proposed changes will be avoided, remedied or mitigated.

Waitaki Catchment Water Allocation Regional Plan

The WCWA Plan is the regional plan for the allocation of water in the Waitaki Catchment and became operative on 30 September 2005. Provisions relevant to the proposed changes include:

Objective 1

To sustain the qualities of the environment of the Waitaki River and associated beds, banks, margins, tributaries, islands, lakes, wetlands and aquifers by:

…

c. managing the water bodies in a way that maintains natural landscape and amenity characteristics and qualities that people appreciate and enjoy

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Objective 2

To the extent consistent with Objective 1, to enable people and communities to provide for their social, economic and cultural wellbeing and their health and safety, by providing for water for:

…

b. hydro-electricity generation

…

Policy 3

By setting environmental flow and level regimes in the water bodies of the Waitaki catchment (other than those identified in Policy 2) that enable access to water for the activities identified in Objective 2, to the extent consistent with Objective 1.

Objective 1 seeks to sustain the qualities of the Waitaki River and associated lakes. The proposed changes are consistent with the outcomes sought by Objective 1 as they will maintain the upper and lower level limits in Lake Tekapo and will not adversely affect Lake Tekapo, water quality or downstream flows. In particular, natural landscape and amenity characteristics and qualities will be sustained for people to appreciate and enjoy.

Objective 2(b) seeks to provide for water for hydro-electricity generation to the extent that it is consistent with Objective 1. The proposed changes are consistent with Objective 1 and will provide for renewable electricity generation while sustaining the qualities of the environment. The proposed changes will enable renewable electricity generation output to be maintained to the extent practicable given the generator outage situation.

Finally, Policy 3 seeks to set level regimes in the Waitaki catchment that enable water for Objective 2 activities that are consistent with Objective 1. The proposed changes remain within the lake level ranges that Lake Tekapo is currently operated at.

6.5 Part 2 Matters

Part 2 specifies the Purpose (Section 5) and Principles (Sections 6 – 8) of the RMA. Section 5(1) states:

The purpose of this Act is to promote the sustainable management of natural and physical resources.

Under Section 5(2) of the Act:

…sustainable management means managing the use, development, and protection of natural and physical resources in a way, or at a rate, which enables people and communities to provide for their social, economic, and cultural wellbeing and for their health and safety while—

(a) Sustaining the potential of natural and physical resources (excluding minerals) to meet the reasonably foreseeable needs of future generations; and

(b) Safeguarding the life-supporting capacity of air, water, soil, and ecosystems; and

Decision-makers must “recognise and provide for” the matters of national importance described at Section 6 of the RMA. Furthermore, in the exercise of functions and powers under the RMA, decision- makers must “have particular regard to”2 the “other matters” at Section 7 of the Act, including:

…

(b) the efficient use and development of natural and physical resources:

(ba) the efficiency of the end use of energy:

(d) intrinsic values of ecosystems:

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(f) maintenance and enhancement of the quality of the environment:

…

(j) the benefits to be derived from the use and development of renewable energy.

Section 8 of the Act requires: In achieving the purpose of this Act, all persons exercising functions and powers under it, in relation to managing the use, development, and protection of natural and physical resources, shall take into account the principles of the Treaty of Waitangi (Te Tiriti o Waitangi).

Taking into account and having regard to the above matters, the proposed changes are consistent with the purpose and principles of Part 2 of the RMA for the following reasons:

2 To ‘have particular regard to’ requires that matters must be considered, but not that such matters are requirements or standards that must be fully met.

 They provide Genesis greater operational certainty, and the ability to manage the present outage of Generator 3 at Tekapo B more effectively;

 They avoid the need for water from Lake Tekapo that would normally be used for renewable electricity generation to be spilled in a way that its generation potential in both the Tekapo Power Scheme and downstream Meridian Energy power stations would be lost;

 Proposed adjustments to the flood management / spill control rules will appropriately mitigate the risks associated with reduced storage capacity;

 The proposed spill control rules will appropriately mitigate dam safety risks;

 Although Te Rūnanga o Ngāi Tahu has expressed a preference for some spill. However, Genesis considers that any cultural effects arising from the proposed temporary change in lake levels are less than minor due to there being no additional effects beyond those that are currently consented and recognising that spills would be unlikely during this period under normal circumstances;, and

 The increased lake level is unlikely to affect the shoreline and quality of Lake Tekapo or the braided river habitat at the northern end of Lake Tekapo.

6.6 Summary

Overall, it is considered that the granting of the proposed changes to the conditions of Resource Consent CRC905301.4, would promote the sustainable management of natural and physical resources and ensure that adverse effects on the environment are less than minor and / or appropriately avoided, remedied or mitigated. The proposed changes are consistent with the statutory framework applicable to the Waitaki River Catchment, Lake Tekapo and the Tekapo Power Scheme.

7 CONCLUSION

In late 2017, the Tekapo B Generator 3 suffered a fault, with the unit not expected to return to service at full capacity until mid April. This outage means that water which would normally be used to generate electricity at the Tekapo B Power Station and downstream stations operated by Meridian Energy cannot be channelled through the Tekapo Canal until such time as the generator can be returned to service.

Genesis seeks changes to the conditions of Resource Consent CRC905301.4 to allow the maintenance of a higher lake maximum control level during the period February 2018 to April 2018 to enable storage of water that would normally be used for electricity generation purposes (if the Tekapo B Generator 3 was in operation) to be retained for future generation purposes once the generator has been reinstated. Changes to the management of high flows and the lake spill control rules are also proposed in order to mitigate potential flood and dam safety risks.

While the proposed changes seek an increase in the lake level for the period February to April 2018 inclusive, the proposed lake levels remain within the present range of lake levels for Lake Tekapo that are provided for over the course of the year.

The proposed changes will not result in adverse effects that are minor or more than minor and provide an effective method for addressing the effects of the outage of the Tekapo B generator on a short term basis.