Resource Management (Consenting and Other System Changes) Amendment Bill

In keeping with its promise to introduce further changes to the resource management system before the end of 2024, the Government has introduced the Resource Management (Consenting and Other System Changes) Amendment Bill (Bill).  The Bill proposes to make changes to the Resource Management Act 1991 (RMA) to advance key Government policies as part of stage three of its RMA reforms and is intended to go before Parliament for its first reading this week.

These changes can be separated into five categories which are in keeping with the Government’s ‘packages’ that it announced in late August 2024.

Infrastructure and Energy

• Consent Timeframes:  Renewable energy generation consents would be required to be decided within one year.  For geothermal and hydro schemes this timeframe must be extended if a request is made by the applicant or a specified group (such as treaty settlement groups, customary marine title groups and iwi authorities).
• Consent Durations: Consents for renewable energy and long-lived infrastructure have a default duration of 35 years, unless:
  • • the applicant requests a shorter period;
    • a National Environmental Standard, National Policy Statement or National Planning Standard expressly provides for a shorter period; or
    • it is required after consideration of submissions by relevant groups (such as treaty settlement groups, customary marine title groups and iwi authorities).
• Lapse:  Lapse periods for renewable energy projects have doubled from five years to 10 years.
• Designating Authorities: Requirements and costs for designating authorities are simplified by restricting when an assessment of alternatives is required and simplifying other assessments and information requirements.
• Port Coastal Permits: Each port company’s coastal permit will be automatically extended to 30 September 2046 (the conditions of which will also be extended automatically).  A port company’s permit must be reviewed by the relevant consenting authority no later than 30 September 2027 to identify:
  • • Any adverse environmental effects of the occupation of the coastal marine area; and
    • Whether conditions need to be imposed or amended to avoid, remedy or mitigate those effects.
• Requiring Authority Status: Port companies are to be given requiring authority status for landward operations.
• Discharges:  Amendments to s 70 RMA are proposed to amend the scope of discharge rules to enable regional councils to include permitted activity discharge rules where performance standards will contribute to a reduction in adverse effects over time.

Housing Growth

• Medium Density Residential Standards: Flexibility will be provided to territorial authorities to enable them to opt out of the Medium Density Residential Standards if they demonstrate that they have at least 30 years of planned housing growth capacity.  This exemption applies even if the medium density residential standards have since been incorporated into that territorial authority’s district plan.  Specified territorial authorities are no longer required to incorporate the medium density residential standards into residential zones.
• Minister’s Powers: The Bill provides the Minister for the Environment with new powers to ensure compliance with national direction, including housing and business development assessments.  The Minister for the Environment can direct councils to prepare or amend documents in accordance with national direction and to direct what type of plan change is used to give effect to national direction.
• Heritage Buildings:  The process for listing/delisting heritage buildings and structures has been simplified.

Farming

• Fishing:  The Bill defines the interaction between the RMA and fishing activities under the Fisheries Act 1996.  The intent is to ensure that where new rules are introduced, they go through a pre-notification process with the Director-General of the Ministry for Primary Industries, have their effects on fishing assessed, do not raise new restrictions in unexpected areas (reduced scope of submissions), do not add to the regulatory burden on fishers, and do not apply to Māori customary non-commercial fishing rights.
• Farm Plan: Part 9A of the RMA is amended to make farm plan certification and audit services more practical and cost effective by allowing industry organisations to deliver those services.
• Wood Processing: To reduce delays in consenting, the Bill requires resource consents for wood processing facilities to be decided within one year of application.

Natural Hazards

• Plan Changes: Any plan changes introducing new natural hazard rules will have immediate legal effect.
• Consenting: The Bill strengthens a consenting authorities’ powers to decline a land use consent application if it considers that the activity will create a significant risk from natural hazards, increase an existing risk to become significant, or increase an existing significant risk.
• Emergency Response: New powers are to be given to the Governor General (on the recommendation of the Minister) to make regulations that respond to natural hazards and enable recovery efforts.

System Improvements

• Penalties: Penalties for offences under the RMA are proposed to be changed as follows:
  • • For private individuals – maximum imprisonment decreased from two years to 18 months and maximum fine increased from $300,000 to $10,000,000.
    • For a non-natural person (e.g. a company) the fine is increased from $600,000 to $10,000,000.
• Insurance: The Bill removes the ability for parties to insure against penalties and makes it unlawful. Fines are introduced for persons who enter into insurance contracts to indemnify parties for offences under the RMA (a maximum of $50,000 for an individual and $250,000 for any other person).
• Clarity: Changes are proposed to simplify the consenting regime by clarifying the scope of further information requests, allowing applicants to review consent conditions before a decision and enables cost recovery for consent reviews due to national direction.
• Conservation Act 1987: The Bill proposes changes to the Conservation Act 1987 to make technical amendments to the Department of Conservation functions to align their ability to manage discharges with the proposed changes to the RMA.

Holland Beckett is experienced in providing advice to clients on the current reforms to New Zealand’s resource management system.  If you have any questions about these reforms, please feel free to contact us.