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National Water Management Structures and Local Responsibilities Gerry Galvin Principal Adviser (Water), DECLG 25th June 2013

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Water Sector Reforms

The establishment of a new public water utility to take over responsibility for the delivery of water services.

The introduction of a sustainable funding model to support increased investment in the sector to underpin job creation and statutory compliance.

The introduction of independent economic regulation of the water sector under the Commission for Energy Regulation.

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Water Sector in Ireland – key facts

● ● Projects water standards in Projects 1,600 further €5.6 Water Significant €700m+ billion million Treatment 500on improvements Exchequer agglomerations litres operational Capacity of water Spend in costs < produced compliance +500p.e 1.4m pe daily with drinking • Over 600 major water and waste ● ● Wastewater Waste Annual Compliance Capital 25,000kms Over Water Funding 600 major of Treatment 2000-2011 water water mains; and capacity waste+water 4m peschemes/ contracts water schemes/ contracts ● ●UWWTD Water Impacts 480 Further €500m+ Supply agglomerations €1 compliance on billion capital by > 25% local investment 500p.e; (2000) authorities – now over 93% ● About 950 public €1.2water billionsupplies spent annually with 85% plus of the population connected to p

Water Supply • 950 public water supplies with 85% plus of the population connected to public water supply; • 25,000kms of water mains; • 1,600 million litres of water produced daily

Capital Funding 20002011

Impacts

• €5.6 billion Exchequer Spend • Further €1 billion by local authorities

• Wastewater Treatment capacity + 4m pe • Water Treatment Capacity + 1.4m pe

Waste Water

Annual Funding

Compliance

• 480 agglomerations > 500p.e; • further 500 agglomerations < 500p.e

• About €1.2 billion spent annually • €700m+ on operational costs • €500m+ on capital investment

• UWWTD compliance 25% (2000) – now over 93% • Significant improvements in compliance with drinking water standards in group water sector

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Future Needs Enterprise/Jobs

Climate Change

Water Framework Directive

ď Ž ď Ž ď Ž

Population Growth

Compliance with Statutory Standards

Clarity of roles and responsibilities Identification of key instruments/tools to underpin the roles and consultative arrangements Defining relationships which are legislative and other non-statutory arrangements (including memoranda of understanding, guidance, protocols etc) 4


Independent Assessment  Independent

Assessment published early last year - available on www.environ.ie

 Study recommendations: – Public utility to improve efficiency and effectiveness economies of scale, improved strategic planning, access to new forms of funding and reduce Exchequer burden; –

Recognised the importance of the local interface and the skills and commitment of the work-force

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Governance Context


National and Regional Dimensions National 

Policy   

Water sector Planning & Development Policy including national spatial strategy Local government policy

Funding   

National Development Plans, Exchequer funding of capital programmes Consent for capital works and borrowing Irish Water subvention

Regional Assemblies Three Regional Assemblies (two members from each council) – Putting People First (October 2012) 

 

Accountability 

Corporate goverance of Irish Water (with NewERA)

Oireachtas

Functions

adopting and overseeing the implementation of regional strategies. The current Regional Planning Guidelines will be augmented as Regional Spatial and Economic Strategies to be adopted by the regional assemblies. Relevant agencies will be required to input to, and adhere to, the strategies; oversight of local authority performance and implementation of Government policy; Regional Operational Programmes and EU funding, as required and other regional projects, studies and initiatives involving EU or other external funding.


Local authorities

Water Services

Other functions

Regulatory functions

Functions in relation to river basin management plans, water pollution, etc. Supervision of group water sector and private water supplies

Service delivery functions 

Performing water service functions on behalf of Irish Water under SLA

 

Planning and Development Local Development plans Development management

Local economic development roles 

Emergency Management 

Fire services


Regulators Environmental Protection Agency (1992 Act) 

Functions 

the licensing, regulation and control of activities for the purposes of environmental protection, defined as The prevention, limitation, elimination, abatement or reduction of environmental pollution

the preservation of the quality of the environment

Monitoring quality of the environment, provision of advice, support & research

     

Having regard to …. Policy of relevant public authorities High quality environment, Polluter pays principle Need for precaution in relation to harmful emissions proper balance is achieved between the need to protect the environment (and the cost of such protection) and the need for infrastructural, economic and social progress and development


Regulators Commission for Energy Regulation (proposed 2013 Bill)

Functions 

 

Licence & monitor water utility operations of the company Set standards of performance Examine tariff proposals, underlying costs & approve tariffs Dispute resolution service for customers

 

 

Having regard to ….

Customer are provided with service in line with standards set Economical & efficient water system Reasonable demands for water services – anticipated demand for future customers (link to company strategic plans) Statutory standards & Water Framework Directive


Irish Water

Based on 2007 Act (section 31) – new Bill in 2013  Having regard to …. Functions  

Metering and customer relationship (2013 Act) Provision of water services nationally

Abstraction, treatment & distribution of potable water

Collection, treatment & disposal through foul & combined sewers of waste water

Strategic planning and accessing third party finance Public service obligations

  

Protection of human health and the environment and relevant statutory provisions (s.31(2)(b)+ (c ) and (d)). Sustainable management of water resources (s.31(2)(g)) development plans, regional or spatial planning guidelines, housing strategies, SAC (s.31(2)(h)) – link to more general statement of proper planning and sustainable development River basin management plans (s.31(2)(k)) Guidance/direction of EPA Ministerial guidance


Irish Water 

Irish Water will be the water services authority and single point of contact for customers. It will have responsibility for:        

The abstraction, treatment and distribution of drinking water; Conserving water supplies through maintaining and upgrading the infrastructure; The collection and treatment of waste water and the management and operation of combined sewer overflows; Sludge disposal; Customer billing and relationship management, including requests for new connections; Strategic planning for the sector, water resource management and localised catchment management focused on source protection; The roll-out of the water metering programme; Sourcing private finance for investment in capital projects


Phased Transition Local Authorities

Irish Water

Current Phase

Water Services Authorities

Planning new utility.

Interim Phase (Water Services Act, 2013)

Water Service Authorities

Some functions (domestic metering)

Transition phase (2014-2017)

Agents of Irish Water for delivery of services

Water Service Authority Service level agreements with local authorities

Steady State (post 2017)

Will remain as agents of Irish Water for a period of time

Water Services Authority, responsible for capital investment & operations Service level agreements with local authorities

Ongoing relationship re strategic planning, wider water management, emergency planning

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Environmental Dimension


River Basin Management Plans â&#x20AC;&#x201C; Revised Governance ď °


Preparation of RBMP for 2016-2021 

The Department, at Tier 1, would have clear responsibility for policy, legislation and ensuring the provision of adequate resources for implementing the Directive. It is at this level also that cross-sectoral co-ordination of the draft river basin management plans and programmes of measures with other key Departments and state agencies (e.g. Department of Agriculture, Irish Water and the OPW), before presentation to the Minister for approval. Under proposed new arrangements, significant new responsibilities would be assigned to the EPA at Tier 2, including the crucial role of drafting the river basin management plans and compiling the programme of measures. The local authorities, operating at Tier 3 would assume the role of implementation and enforcement of measures on the ground and would have key responsibility for ensuring compliance with the Directive on public participation.


Preparation of RBMP for 2016-2021 (Timeline) 

December 2014: Tier 1 to receive draft RBMPs and suggested POMs prepared by EPA working with Tier 3

October 2015: the recommended final plan and POM goes from Tier 1 to the Minister for approval

Tasks involved:  

Consultations with stakeholders during 2014 Irish Water to develop its draft capital plan for 2016-2021 and draft Water Services Strategic Plan


Economic & Planning Dimension


Hierachy of Plans ď °

Hierachy of plans to ensure consistency and coherence of development & economic planning at all levels, with democratic input


Implications for Irish Water


Irish Water- Water Services Strategic Plans 

Strategic direction over short, medium and long-term timelines to 2040 to fulfil its vision and mandate from Government Strategic objectives     

  

Service standards, capacity deficits, demographic & economic trends, water resource management, environmental compliance, climate change Assets understanding

Process for prioritisation and Indicative capital budget Strategic Environmental Assessment may be necessary Section 36 of 2007 provides basis for WSSP


Capital Plans  

Plan form part of the Revenue Submission to CER Informed by      

Water Services Strategic Plan Draft River Basin Management Plans Regional Economic and Spatial Strategies Statutory consultation with local authorities Other stakeholder engagement Asset Management Plan

Funding envelope determined by   

State funding for capital purposes Third party revenue Tariffs approved by CER


Overall Governance

It is envisaged that the regional assemblies will provide an appropriate mechanism for consultation and engagement between Irish Water and the local government system on strategic matters. (Putting People First)


Conclusion 

Programme of Reform will 

Build on existing expertise

Focus on equipping sector to meet future challenges, new sources of funding – acceleration of investment

Extensive programme of work underway to establish Irish Water 

Collaborative approach vital to success

Need to maintain delivery and continuity of service – phased approach

Increased activity in coming months - Implementation will be underpinned with extensive communications with staff, stakeholders and the public.

Developing the policy framework to underpin the strategic relationships between Irish Water, local government and regional assemblies. 24


Gerry Galvin, Water Forum 2013  
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