1. Introduction

1.1  Background

In January 2005 the Reference Group on Electricity Transmission was established to evaluate and advise on the merits and potential scope of national guidance on the management of electricity transmission under the RMA. The Reference Group was chaired by the Ministry of Economic Development and had representatives from relevant government departments, Business New Zealand, Local Government New Zealand, Transpower, Federated Farmers and the Electricity Commission.

In December 2005 the Reference Group consulted on a draft report that evaluated a range of options for national guidance. Twenty-nine submissions were received. The report of the Reference Group was finalised in April 2006 after considering the views of submitters (Reference Group on Electricity Transmission, 2006). The Reference Group’s recommendations (summarised in section 3.1) were considered by Cabinet in July 2006, and the Minister for the Environment was invited to develop national environmental standards (NES) and a national policy statement for electricity transmission.

In November 2006 Cabinet invited the Minister for the Environment to prepare a discussion document and draft a cost-benefit analysis on two NES. The proposed standards would:

• provide a consistent national framework for managing the effects of transmission activities (operation, maintenance and upgrading of the national grid)
• protect transmission lines from inappropriate activities that could put the integrity of the national grid at risk.

A proposed NPS on Electricity Transmission is being developed as a separate process, in advance of proposals for NES. The NPS was publicly notified by a board of inquiry on 16 May 2007, and submissions closed on 25 June. The proposed NPS (see Appendix 1) provides a policy framework for electricity transmission. The board will report back to the Minister for the Environment in December 2007. The relationship between the NPS and an NES is spelt out in section 6.1.

1.2  Purpose of this document

This discussion document sets out the resource management issues that arise in managing the operation, maintenance and upgrade of the electricity transmission network, and describes how standards under the RMA could potentially resolve some of these issues.

There are two key problems: inconsistency in the provisions in local plans that apply to electricity transmission operation, maintenance and upgrade activities; and lack of adequate provision for protecting electricity transmission infrastructure.

The preferred option for providing specific national guidance is to develop national environmental standards that:

• provide a consistent national framework for managing the environmental effects of the operation, maintenance and upgrade of the national grid by:(a) providing for transmission activities that do not have significant adverse effects to be permitted activities (ie, they can be undertaken without the need for resource consent), and (b) specifying the types of activities for which resource consent is needed
• protect transmission lines from activities that could put the integrity of the national grid at risk.

This discussion document provides information on the issues, the rationale for choosing the preferred option, and the costs and benefits of that option. It then seeks submissions on the proposals and the associated costs and benefits. This document includes the substantive regulatory impact analysis elements, including:

• statement of the problem (section 2.6)
• evaluation of options leading to the selection of the preferred option (chapter 3 and Appendix 2)
• details of the proposals (chapter 4)
• analysis of the costs and benefits of the proposals (chapter 5)
• implementation issues (chapter 6).

1.3  What this discussion document covers

This document focuses on options under the RMA. It only considers electricity transmission: the network of high-voltage conductors (wires) and support structures that make up the national grid. It discusses the inspection, operation, maintenance and upgrading of the transmission network, referred to as ‘transmission activities’. It also discusses options for managing activities that may affect the grid.

1.4  What this document does not address

This document does not address the following issues:

• The construction of new transmission lines - this will be subject to district and regional plan rules, unless the grid operator arranges for a designation in a district plan.
• Local distribution lines - local distribution networks (the local delivery of electricity to homes and businesses) do not traverse multiple local authority boundaries in the way the national grid does. Unlike transmission, the adverse effects of electricity distribution are felt locally, as are the benefits, so local decision-making on distribution networks does not require balancing local and national interests.
• Substations – the issues associated with substations (such as noise and reverse sensitivity) are different to those faced in managing the linear network of towers, poles and wires. Substations are normally provided for through designations in the district plan.
• Electricity generation - a draft report assessing the need for national guidance has been published (Reference Group on Electricity Generation, 2006) and a national policy statement on renewable energy has been proposed. The Minister for the Environment will consult with iwi and other interested parties before preparing the proposed NES.
• The right for the transmission infrastructure to exist on private land, the right of Transpower to enter private land to access the transmission network, or compensation - these issues are covered by the Electricity Act and are discussed in section 2.4.
• Electric and magnetic fields (EMF).
• The proposed National Policy Statement on Electricity Transmission (see Appendix 1).
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