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Climate Change Climate Change Climate Change Climate Change MMMManagement anagement anagement anagement PlanPlanPlanPlan

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Originally issued: 21/02/2017 DOC/16DOC/16DOC/16DOC/16/42092/42092/42092/42092

Revised: Version 1.0

A world with climate change is the new norm and this needs to be A world with climate change is the new norm and this needs to be A world with climate change is the new norm and this needs to be A world with climate change is the new norm and this needs to be reflected all through our processes.reflected all through our processes.reflected all through our processes.reflected all through our processes.

Water Industry Climate Change Adaptation Guidelines presentation 2015

Acknowledgement: This document draws from the Water Industry Climate Change Adaptation Guidelines developed for the Water Services Association of Australia and for which East Gippsland Water was a contributor.

EAST GIPPSLANDEAST GIPPSLANDEAST GIPPSLANDEAST GIPPSLAND WATER CLIMATE CHANGE WATER CLIMATE CHANGE WATER CLIMATE CHANGE WATER CLIMATE CHANGE MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT PLANPLANPLANPLAN

Issued: 21/2/2017 Climate Change Management Plan Page 1 Reviewed: Version 1.0 Sponsor: Manager Business Risk

UNCONTROLLED WHEN PRINTED

DOCUMENT CONTROLDOCUMENT CONTROLDOCUMENT CONTROLDOCUMENT CONTROL DocumentDocumentDocumentDocument Name:Name:Name:Name: EGW Climate Change Management Plan

Document Sponsor:Document Sponsor:Document Sponsor:Document Sponsor: Manager Business Risk

HPRMHPRMHPRMHPRM Reference:Reference:Reference:Reference: DOC/16/42092

Revision DateRevision DateRevision DateRevision Date Change DescriptionChange DescriptionChange DescriptionChange Description AuthorAuthorAuthorAuthor Version NoVersion NoVersion NoVersion No

21/02/2017 New document Tony Smith Version 1.0

Purpose of this DocumentPurpose of this DocumentPurpose of this DocumentPurpose of this Document

Part 1 of this document sets out East Gippsland’s strategy and actions to reduce our energy use and manage the implementation of the state government’s emissions reduction policy.

Part 2 provides actions and commentary regarding adaptation actions in order to minimise the impacts of climate change on our operations and infrastructure.

Part 3 recognises the importance of community engagement.

Actions arising from these parts are then summarised in the Action Plan from page 34.

Intended AudienceIntended AudienceIntended AudienceIntended Audience

This plan is intended as an internal operational document within EGW. It is also available

for external parties interested in reviewing our approach to climate change risk management.

Other Other Other Other HPRMHPRMHPRMHPRM References:References:References:References: DOC/16/38120 – Energy Management Strategy 2016

FOL/09/156 – Sustainability Strategy

DOC/09/3581 – EGW Sustainability Strategy 2008

DOC/16/6233 - Climate Change Projections - East Gippsland

DOC/09/7447* - EGW Risk Management Manual

DOC/14/23975 – Australian Standard 5334-2013 Climate change adaptation for settlements and infrastructure - A risk based approach




Table of Table of Table of Table of ccccontentsontentsontentsontents

IntroductionIntroductionIntroductionIntroduction ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 3333 Structure of this Plan ....................................................................................................................................................... 4

Guiding PrinciplesGuiding PrinciplesGuiding PrinciplesGuiding Principles ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 5555 Victorian Climate Change Act ......................................................................................................................................... 5 Victorian Government Policy Statements ...................................................................................................................... 7 Water Industry Statement of Obligations 2015 ........................................................................................................... 7 Water for Victoria – the State Water Plan 2016 ........................................................................................................... 7

Climate Change and EGWClimate Change and EGWClimate Change and EGWClimate Change and EGW ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 8888 Climate Change Policy ..................................................................................................................................................... 8 Corporate Plan .................................................................................................................................................................. 8 What have we done so far? ............................................................................................................................................ 8 Where are we now? ......................................................................................................................................................... 9

Part 1 Part 1 Part 1 Part 1 –––– MITIGATIOMITIGATIOMITIGATIOMITIGATION (Target N (Target N (Target N (Target 8272827282728272)))) ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 10101010 EGW’s Carbon Footprint ................................................................................................................................................ 10 Mitigation Hierarchy ....................................................................................................................................................... 11 Mitigation Strategy (Target 8272) ................................................................................................................................ 11 Energy Management Reference Strategy ................................................................................................................... 13 Emissions Reduction Targets ....................................................................................................................................... 14 Collaboration with Industry and Other Stakeholders ................................................................................................ 14 Intelligent Water Networks Large Scale Renewable Energy Project ........................................................................ 14 Scope 1 Emissions Reduction Project ......................................................................................................................... 15

Part 2 Part 2 Part 2 Part 2 –––– ADAPTATIONADAPTATIONADAPTATIONADAPTATION .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 16161616

1. CommitmentCommitmentCommitmentCommitment ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................17171717 1.1 Understand regulatory drivers and barriers to adaptation ....................................................................... 17 1.2 Internal support and direction ...................................................................................................................... 17 1.3 Integrate adaptation considerations into governance structure ............................................................. 18 1.4 Define robust decision making processes .................................................................................................. 18

2. AssessmentAssessmentAssessmentAssessment ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 19191919 2.1 Understand core functions and interdependencies .................................................................................. 19 2.2 Climate science inputs .................................................................................................................................. 20 2.3 Undertake scenario planning ....................................................................................................................... 20 2.4 Vulnerability assessment across core functions ........................................................................................ 20 2.5 Decide priority areas ...................................................................................................................................... 21 2.6 Undertake detailed risk assessment ........................................................................................................... 21

3. Planning and ResponsePlanning and ResponsePlanning and ResponsePlanning and Response .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 23232323 3.1 Development of adaptation options ............................................................................................................ 23 3.2 Evaluate and prioritise adaptation options ................................................................................................. 23 3.3 Document actions into adaptation plan ...................................................................................................... 25

4. EmbeddingEmbeddingEmbeddingEmbedding ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 26262626 4.1 Responsibilities and KPIs .............................................................................................................................. 26 4.2 Embed adaptation plan into investment processes and relevant plans ................................................ 28

5. Monitoring and ReviewMonitoring and ReviewMonitoring and ReviewMonitoring and Review ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 29292929 5.1 Assess changes and revise adaption options as required ....................................................................... 29 5.2 Analyse events and review risks and adaptation options ......................................................................... 30 5.3 Review the plan and adaptation options .................................................................................................... 30

6. Technical Technical Technical Technical AppendicesAppendicesAppendicesAppendices ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 32323232

Part 3 Part 3 Part 3 Part 3 –––– COMMUNITY ENGAGEMENTCOMMUNITY ENGAGEMENTCOMMUNITY ENGAGEMENTCOMMUNITY ENGAGEMENT ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 33333333

Climate Change Action Plan 201Climate Change Action Plan 201Climate Change Action Plan 201Climate Change Action Plan 2017 7 7 7 ---- 2020202019191919 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 34343434




IntroductionIntroductionIntroductionIntroduction

Global warming is happening. Victoria is becoming hotter and drier due to climate change1.

Humanity will need to act decisively now if global average temperatures are to be contained within the 2°C limit agreed to by world governments at the Paris Climate Change Conference (COP21) in December 2015. But even with ambitious global action to reduce greenhouse gas emissions, further changes to our climate will continue to occur.2

Australian water utilities have already had to adapt to harsh changes in our operating environment – from water shortages, to floods, bushfires, power outages and other disruptions. These disruptions may or may not be linked to climate change, but they are a harbinger of things to come as planetary warming continues.

Water utilities can expect the challenges associated with climate change – protecting assets and providing consistency and quality of service – to increase in both frequency and magnitude as warming progresses. It is now clear that the past is not a reliable indicator of the future as the probability of extreme events is rapidly changing, making conventional approaches to their estimation suspect. This raises forecasting challenges for water industry planners and decision-makers.

The Victorian Government recognises the severity of the impacts of climate change and enacted the Climate Change Act in 2010. The Act has been amended several times, and, at the time of writing this plan, was again under review by the current government (see p4-5). The Statement of Obligations issued by the Minister for Water in December 2015 reflects the government’s position and places clear requirements on water corporations to incorporate climate change within our guiding principles and planning processes.

In addition, recent state government policy statements around reducing CO2 emissions and

renewable energy targets have strengthened this position.

These drivers are discussed in more detail in the next section “Guiding Principles”.

WSAA Climate Change Adaptation Guidelines (“the guidelines”) were developed during 2014/15 and released in December 2015. The aim of the guidelines is to provide the water industry with consistent, clear and authoritative guidance in building climate resilience across utility planning and operations. They draw upon the experience of the water industry, identify best practice and provide clear principles to guide the industry toward an organised, pragmatic and defensible approach to adaptation.

The guidelines are designed to help water utilities with all stages of the adaptation process, from initial appreciation of the issues, through to the implementation and monitoring of response actions. It also provides a benchmark for best practice and facilitates continuous improvement.

In this plan, EGW has used and referenced, but does not seek to replicate the WSAA guidelines. It also seeks to go beyond adaptation, also providing a roadmap to carbon neutrality.

1 Victoria’s Climate Change Adaptation Plan Directors Paper, State of Victoria 2016

2 Ibid




StructureStructureStructureStructure of this Planof this Planof this Planof this Plan

The plan conforms to the WSAA Climate Change Adaptation Guidelines (“the Guidelines) although adds the dimension of mitigation rather than just adaptation.

MitigationMitigationMitigationMitigation is about undertaking actions that seek to reduce our energy use, carbon footprint and thus, adverse impact on the environment. This is covered in Part 1 of this plan.

AdaptationAdaptationAdaptationAdaptation seeks to identify our vulnerabilities and put measures in place to manage the impact of climate change on our operations and infrastructure. This is covered in Part 2 of this plan.

There are five components to adaptation, which address commitment, assessment, planning, implementation and monitoring respectively.

Actions identified throughout this document will be indicated (eg: Action M1Action M1Action M1Action M1) and detailed in the Action Plan from page 34.




Guiding PrinciplesGuiding PrinciplesGuiding PrinciplesGuiding Principles

Victorian Climate Change ActVictorian Climate Change ActVictorian Climate Change ActVictorian Climate Change Act

Although amended on several occasions since being enacted in 2010, the Guiding Principles of the Victorian Climate Change Act 2010 remain.

1.1.1.1. Principle of Principle of Principle of Principle of informed decision makinginformed decision makinginformed decision makinginformed decision making

A decision should be based on:

• a comprehensive analysis of the best practicably available information about the potential impacts of climate change that are relevant to the decision under consideration

• the potential contribution to Victoria's greenhouse gas emissions of the decision under consideration.

2.2.2.2. Principle of integrated decision makingPrinciple of integrated decision makingPrinciple of integrated decision makingPrinciple of integrated decision making

A decision should integrate the competing long-term and short-term environmental, economic, health and other social considerations relating to climate change to ensure that:

• all relevant issues relating to climate change associated with the decision will be taken into consideration during the decision making process

• there is a proper examination of all the issues which are relevant to climate change

• any measures adopted as a result of the decision are cost effective and in proportion to the problems relating to climate change that are relevant to the decision.

3.3.3.3. Principle of risk managementPrinciple of risk managementPrinciple of risk managementPrinciple of risk management

A decision should be based on:

•••• careful evaluation of the best practicably available information about the potential impacts of climate change to avoid, wherever practicable, serious or irreversible damage resulting from climate change

•••• an assessment of the consequences of each of the options in making a decision having regard to the risks of each of those options

•••• managing and allocating the risks associated with the potential impacts of climate change in a manner that is easily seen and understood and endeavouring to achieve best practice.

A decision should not rely on a lack of full scientific certainty as a reason to postpone appropriate measures to prevent serious or irreversible loss or damage as a result of climate change.

4.4.4.4. Principle of complementarityPrinciple of complementarityPrinciple of complementarityPrinciple of complementarity

A decision of the Government of Victoria in response to climate change should complement any actions of the Commonwealth Government relating to climate change including, but not limited to, an emissions trading scheme and any targets or caps on greenhouse emissions fixed by the Commonwealth Government or the Parliament of the Commonwealth.




5.5.5.5. Principle of equityPrinciple of equityPrinciple of equityPrinciple of equity

A decision should have regard to the following:

•••• opportunities should be created by the present generation to increase the capacities within that generation and future generations to adapt to climate change

•••• in particular, the present generation should consider the opportunities to increase the capacities to adapt to climate change of those people most vulnerable to the potential impacts of climate change

•••• the present generation should ensure that the health, diversity and productivity of the environment is maintained or enhanced for the benefit of future generations and that any adverse impacts of climate change are minimised for future generations

•••• the present generation should consider both long and short term consequences of decisions that may impact on climate change.

6.6.6.6. Principle of community engagementPrinciple of community engagementPrinciple of community engagementPrinciple of community engagement

Community involvement in decisions relating to climate change that may affect members of the community or members of the community in future generations should be facilitated and this includes:

•••• providing appropriate information to the community

•••• providing opportunities for the community to be involved in the decision

•••• providing for appropriate and adequate public consultation with the community.

The Climate Change Bill 2016 was introduced into state parliament in late November 2016. Among other things, the bill repeals and re-enacts the Climate Change Act 2010, makes consequential changes to the Environment Protection Act 1970, incorporates state greenhouse emission reduction targets and also seeks to replace the 2010 Act Principle of Complementarity with:

Principle of compatibilityPrinciple of compatibilityPrinciple of compatibilityPrinciple of compatibility

It is a guiding principle of this Act that a decision, policy, program or process to address issues relating to climate change should —

(a) seek to promote a coherent policy framework within the State

(b) seek to achieve cohesion the policies, programs, initiatives, standards or commitments relating to climate change of —

(i) other States or Territories

(ii) the government of the Commonwealth

(iii) governments of other countries

(iv) international bodies and organisations.




Victorian Government Policy StatementsVictorian Government Policy StatementsVictorian Government Policy StatementsVictorian Government Policy Statements

During 2016, the Victorian Government issued statements committing to:

•••• Net-zero emissions by 2050 with interim targets from 2020 and a sectoral and government pledging process

•••• Renewable energy targets of 25% by 2020 and 40% by 2025, with auctions to support large scale renewable energy projects

•••• Water corporation emission reduction pathways and renewable energy in line with state targets.

In response to these statements, DELWP has created a water industry Emission Reductions Working Group to progress a sector approach. The reduction pathways project timeline as originally issued in September 2016 is shown below. However, the pledge submission date has been extended to 14 March 2017 due to delays in DELWP finalising and providing the formal emissions reduction request package to water corporations.

Water Industry Statement of Obligations 2015Water Industry Statement of Obligations 2015Water Industry Statement of Obligations 2015Water Industry Statement of Obligations 2015

The Statement of Obligations (SoO) issued by the Minister for Water in December 2015 includes climate change in Section 1-6 Guiding Principles and Part 6 (Sections 6-A and 6-1) Planning, including requiring an understanding of the guiding principles and other elements of the Climate Change Act. A new SoO is planned to be issued in mid-2017 that will embed our final pledge made as part of the sector emissions reduction project.

Water for Victoria Water for Victoria Water for Victoria Water for Victoria –––– the the the the State Water Plan 2016State Water Plan 2016State Water Plan 2016State Water Plan 2016

Water for Victoria October 2016, has also been called the “climate change adaptation plan

for the water sector3”.

Water sector commitments to climate change mitigation and adaptation are embedded in this document.

3 Water for Victoria, page 29 State of Victoria 2016




Climate Change and EGWClimate Change and EGWClimate Change and EGWClimate Change and EGW

Climate Change PolicyClimate Change PolicyClimate Change PolicyClimate Change Policy

Our most recent Climate Change policy (054), refer DOC/10/34707v6, was issued in December 2016 and reflects our intent in achieving the water sector carbon emissions reduction expectation of the state government.

Corporate PlanCorporate PlanCorporate PlanCorporate Plan

As reflected in our 2016-17 Corporate Plan, key amongst our challenges is securing sustainable water resources in a climate change future potentially reducing the reliability of traditional water sources, increasing extreme event risk, such as bushfire and flooding and rising sea levels. This will be ‘front of mind’ throughout our corporate strategies.

During 2016-17, we plan to progress the regional co-digestion project which aims to divert locally produced food waste from remote landfill for recycling and generation of renewable energy. In collaboration with the Food Cluster Limited, Federation University, Sustainability Victoria and the East Gippsland Shire Council, we will complete full-scale trials at the Bairnsdale sewerage treatment plant early in 2016-17. This will allow us to generate renewable electricity from biogas, further reducing our carbon footprint, whilst releasing energy for our use.

Coupled with 2015/16 research on alternate treatment processes, it is planned to evaluate business cases and models for a major operation to service food industries throughout the region. In collaboration with local partners, the business cases will also explore the viability of providing additional renewable energy to complement existing local initiatives in creating township minigrids.

This is a continuing project as part of leading and maximising our contribution to climate change adaptation and mitigation and working towards carbon neutrality. Already we have participated in the Efficient Government Buildings program, installing solar arrays, efficient pumps, lighting and associated equipment at a range of facilities. In addition to the food waste biogas initiative in operation at the Bairnsdale sewerage treatment plant we are presently investigating floating solar generation in our reservoirs and plan to explore other renewable energy opportunities as part of our climate change mitigation strategy.

What have we done so far?What have we done so far?What have we done so far?What have we done so far?

A Climate Change Issues PClimate Change Issues PClimate Change Issues PClimate Change Issues Paperaperaperaper was developed by AECOM in November 2009 – DOC/10/1589. This paper produced a “high level” list of rated climate change risks based on CSIRO and BoM material released in 2007 and recommended actions moving forward.

Planning for Climate Change: An AssetPlanning for Climate Change: An AssetPlanning for Climate Change: An AssetPlanning for Climate Change: An Asset----BBBBased Approachased Approachased Approachased Approach was created in January 2010 – DOC/11/2956. This led to actions to identify and modify ‘at risk’ assets from flood events, including rising sea levels.

Our Sustainability StrategySustainability StrategySustainability StrategySustainability Strategy released in August 2008 (DOC/09/3581) focused predominantly on sustainable business practices, waste minimisation, minimising our environmental footprint and also included “working towards carbon neutrality” at Goal 2.3. The final of this strategy was provided in July 2012 (DOC/12/3674). Actions outlined in this strategy provided a starting point for subsequent conversations and activities, such as the Greener Government Building Project (FOL/11/298).




Greener Government Building Project. Greener Government Building Project. Greener Government Building Project. Greener Government Building Project. In 2014, EGW entered into a contract with Ecosave Pty Ltd under the Greener Government Building (GGB) Program. The contract was projected to save 1,005 tonnes of Carbon Dioxide Equivalent (t CO2-e) pa (based on a grid emission

factor [GEF]4 of 1.32) and reduce our energy and maintenance costs by almost $180,000 a

year (DOC/14/34837). The project is contained in FOL/11/298. The site detail and energy analysis is at DOC/16/7281. This project needs to be critically reviewed to ensure that projected savings are being made (see below).

WWWWhere are we nowhere are we nowhere are we nowhere are we now????

Since 2010/11, our CO2-e emissions have tracked as follows:

EmissionsEmissionsEmissionsEmissions 2010/112010/112010/112010/11 2011/122011/122011/122011/12 2012/132012/132012/132012/13 2013/142013/142013/142013/14 2014/152014/152014/152014/15 2015/162015/162015/162015/16

Electricity 7255 6717 6918 6479 6182 6615

Direct (WWT operations) 1044 1273 1202 1313 1405 1473

Fuel (ULP diesel, LPG) 393 388 322 306 326 318

Sub-total 8692 8378 8442 8098 7913 8406

Offsets 5 0 0 0 0 0

TotalTotalTotalTotal 8687868786878687 8378837883788378 8442844284428442 8098809880988098 7913791379137913 8406840684068406

Total CO2-e forecast in Corporate Plans

8510 8400 8334 8500 8420 8350

Table 2: EGW CO2-e emissions since 2010/11

* 2015/16 emissions were actually 395 tonnes higher than that included in our 2015-16 Annual Report (8011) due to a post bill-cycle aggregation of electricity accounts showing an additional 400MW/h of electricity used for the year offset marginally by a minor error in over estimating direct emissions.

Total emissions increased during 2015/16, which is partly attributable to an increase in the

methane conversion factor from 21 to 25 (19%) commencing 2015/16. This increased the calculated CO2-e conversion from direct wastewater treatment operations from 1249 (as it would have been under the previous years’ conversion factor) to 1473.

Other factors that complicate the comparison is water demand being 8% higher and recycled water produced/used being approximately 15% higher during 2015/16, which led

to higher total electricity consumption. Conversely the GGB investment resulted in emission reductions. However the total reduction attributable to this initiative have not yet been fully confirmed, with a small number of the package of projects still to be fully commissioned.

4 The grid emission factor (GEF) represents the percentage of renewable energy (RE) embedded in the grid

electricity volume (GEV). As the RE percentage increases, the GEF decreases, and the emission reductions decrease relative to reductions in the GEF. This is illustrated in our pledge spreadsheet at DOC/16/44551. For the Greener Government Building Project, while the energy reduction remains the same and the financial savings still exist, using the 2017 GEF of 1.09, the emissions reduction is 830 tCO2-e or 761,400 kWh per year representing a saving of approximately 14% in grid electricity used.




Part 1 Part 1 Part 1 Part 1 –––– MITIGATIONMITIGATIONMITIGATIONMITIGATION (Target (Target (Target (Target 8282828272727272))))

Mitigation is about undertaking actions that seek to reduce our energy use, carbon footprint and thus, adverse impact on the environment. Consistent with government policy, we will seek to achieve net-zero emissions by 2050 and have introduced the term TaTaTaTarget rget rget rget 8282828272727272

(tonne CO2-e) to represent our baselinebaselinebaselinebaseline5555 from the five-year average of emissions from

2011/12 to 2015/16.

EGWEGWEGWEGW’s’s’s’s Carbon FootprintCarbon FootprintCarbon FootprintCarbon Footprint

The three main components of carbon footprint reporting are:

• Electricity use

• Direct Emissions (from wastewater storage and treatment)

• Fuels (for vehicles and equipment) EGW recorded a carbon footprint in 2015-16 of 8,406 Tonnes of CO2-e. Of this total, 6,615 T (78.7%) was Electricity, 1473 T (17.5%) was Direct Emissions from waste water treatment processes and 318 T (3.8%) was Fuels. Electricity consumption is further broken down in the following diagram.

Figure 1: Breakdown of EGW 2015/16 carbon footprint / greenhouse gas emissions.

5 The baseline is derived from the pledge process and forms the start point of our emissions reduction pathway. Refer DOC/16/44551.




FFFFigure 2: Pie chart breakdown of EGW 2015/16 carbon footprint / igure 2: Pie chart breakdown of EGW 2015/16 carbon footprint / igure 2: Pie chart breakdown of EGW 2015/16 carbon footprint / igure 2: Pie chart breakdown of EGW 2015/16 carbon footprint / greenhouse gas emissionsgreenhouse gas emissionsgreenhouse gas emissionsgreenhouse gas emissions

Mitigation HierarchyMitigation HierarchyMitigation HierarchyMitigation Hierarchy

The agreed water sector mitigation hierarchy is6:

• Cease / avoid / reduce emissions

• Energy productivity

• Utilise waste

• Purchase low carbon electricity / renewable energy

• Electrification & fuel switching (ie replacing diesel pumps, using bio-fuels)

• Sequestration

• Purchase offsets

Mitigation StrategyMitigation StrategyMitigation StrategyMitigation Strategy (Target (Target (Target (Target 8272827282728272))))

Our mitigation strategy will focus on the following:

• Data accuracy

• Energy efficiency

• Identifying and rectifying system inefficiencies such as:

• Non-revenue water

• Leakage

• Infiltration

• Inflow

• Influencing customer demand and behaviour (See Part 3 – Community Engagement)

• Renewable energy opportunities

• Methane capture & reuse

• Use of offsets

6 Principles for Water Corporation Emissions Reductions, DELWP 2016

79%

18%

4%

Greenhouse Gas Emissions

Electricity

Direct Emissions

Fuels




Much of this activity will be part of the Energy Management Strategy and subsequent action plans being developed by the Energy Performance Analyst; a new role at EGW from August 2016.

Data AccuracyData AccuracyData AccuracyData Accuracy

Most of our current energy consumption data is based on billing data. This may be inaccurate due to billing cycles that do not run from 1 July to 30 June or estimated meter readings. As a consequence, data is generally averaged and applied to a full year.

It is important to obtain accurate data as a base for not only usage calculations, but also to measure any reductions or renewable energy components. (Action(Action(Action(Actionssss M1M1M1M1 & M2& M2& M2& M2))))

GGB project data needs to be critically reviewed to ensure that projected savings are being made. (Action M(Action M(Action M(Action M3333)))) Energy Energy Energy Energy EfficiencyEfficiencyEfficiencyEfficiency

Improvement opportunities exist through technological advancements in higher efficiency pumps and other equipment which will also form part of the energy management strategy. This may also involve system optimization subject to a supporting business case. (Action M(Action M(Action M(Action M4444)))) System EfficienciesSystem EfficienciesSystem EfficienciesSystem Efficiencies

As important as accurate data is, there is a need to understand overuse of energy resulting from system inefficiencies such as: (Action M(Action M(Action M(Action M4444))))

• Non-revenue water

• Leakage

• Infiltration

• Inflow

Minimising these inefficiencies will contribute to our energy reduction efforts, along with other long term benefits (longer asset life, reduced maintenance and deferral of capital investment). EvaporationEvaporationEvaporationEvaporation

Evaporation from potable water storages also necessitates additional pumping. Efforts to reduce evaporation will also contribute to reduced energy use and therefore costs to the corporation. (Action M(Action M(Action M(Action M4444))))

Floating solar panels or covers may act in three ways to mitigate climate change / reduce energy use:

1. Reduce evaporation 2. Facilitate reduced freeboard in earthen storage, thus increasing storage levels

within existing dams and deferring construction of new dams 3. Generation of renewable energy




Renewable Energy OpportunitiesRenewable Energy OpportunitiesRenewable Energy OpportunitiesRenewable Energy Opportunities

In June 2016, the Victorian Government committed to Renewable Energy Targets. Water for Victoria has subsequently committed to these targets and a pathway to net-zero carbon emissions, which EGW is expected to adhere to:

• At least 25% of the water sector’s electricity from Renewable Energy by 2020

• At least 40% of the water sector’s electricity from Renewable Energy by 2025

• Net zero emissions by 2050

As a major user of energy in the government space, the water industry is expected to meet these targets and EGW will seek renewable energy opportunities based on sound business cases, either alone or in collaboration with the regional community or water industry. Methane Capture and ReuseMethane Capture and ReuseMethane Capture and ReuseMethane Capture and Reuse

Methane emissions for 2015-16 were 15% lower than the previous year. However the related equivalent carbon emission reported was higher due to the change in the methane conversion factor from 21 to 25 commencing for the 2015-16 year. Similarly, without this change our total emissions would have been 9% lower at 8182.

Other than Bairnsdale, where biogas is captured and flared, managing direct emissions via liberation of methane is more problematic at waste water treatment sites. However, it is prudent to understand the profile of our lagoons to understand the extent of methane liberation. Once this is understood, consideration of capture and reuse or other management initiatives may be warranted. Purchase of OffsetsPurchase of OffsetsPurchase of OffsetsPurchase of Offsets

Managed accredited tree plantations as an offset has been examined and is currently available at approximately $15/tonne CO2-e per annum subject to minimum parcels of

land being available. While this represents no actual reduction in emissions it is a

useful method of offsetting residual emissions. Also, at $15/tonne CO2-e of pure recurring OPEX, this provides a useful internal carbon price for options comparison and

business case preparation.

Energy Management Reference StrategyEnergy Management Reference StrategyEnergy Management Reference StrategyEnergy Management Reference Strategy

The key component of our mitigation strategy is the Energy Management Reference Strategy (DOC/16/38120). This is a new strategy to investigate and implement initiatives to reduce the corporation’s electricity bill and carbon footprint, through improved energy performance and implementing cost effective renewable energy solutions.

This strategy is supported by the creation of a new senior position within the Operations business unit – Energy Performance Analyst - with the responsibility for developing and implementing the energy management strategy in collaboration with staff and other key

stakeholders. This includes identifying ways to improve energy and cost efficiency, environmental monitoring and ensuring a reduction of carbon emissions across the

corporation’s activities.

As such, specific mitigation strategies detailed in the Energy Management Strategy will not be repeated in this plan. (Action M(Action M(Action M(Action M4444))))




Emission Reduction TargetsEmission Reduction TargetsEmission Reduction TargetsEmission Reduction Targets

Another key component of the whole climate change management program is the development of EGW Emission Reduction Targets consistent with state government policy of achieving net-zero emissions by 2050, and renewable energy targets of 25% by 2020 and 40% by 2025.

These targets will be developed in conjunction with the Energy Management Reference Strategy before being presented to the Board for consideration and approval. (Action M(Action M(Action M(Action M5555))))

Additionally, EGW is a member of the DELWP Water Sector Emissions Reduction Working Group which seeks to define a common set of principles to guide water corporation emission reduction proposals to meet government expectations. For the purposes of this activity, the following definitions have been applied:

NetNetNetNet----zero emissions:zero emissions:zero emissions:zero emissions: A balance between emissions and sequestration where scope 1 and 2 emissions are reduced to as close to zero as possible and any residual emissions are offset.

Scope 1 greenhouse gas emissions:Scope 1 greenhouse gas emissions:Scope 1 greenhouse gas emissions:Scope 1 greenhouse gas emissions: The emissions released to the atmosphere as a direct result of an activity, or series of activities undertaken by a corporation (for example methane from wastewater lagoons).

Scope 2 greenhouse gas emissions:Scope 2 greenhouse gas emissions:Scope 2 greenhouse gas emissions:Scope 2 greenhouse gas emissions: The emissions released to the atmosphere from the indirect consumption of an energy commodity by a corporation (typically electricity

and fuels).

Sequestration:Sequestration:Sequestration:Sequestration: the process involved in carbon capture and the long-term storage of atmospheric carbon dioxide. Carbon sequestration describes long-term storage of

carbon dioxide or other forms of carbon to either mitigate or defer global warming and avoid dangerous climate change. (Often called carbon capture and storage or CCS.)

Collaboration with Industry and Other StakeholdersCollaboration with Industry and Other StakeholdersCollaboration with Industry and Other StakeholdersCollaboration with Industry and Other Stakeholders

The key to the success of achieving our goals will be collaboration with other water corporations, local government and community groups. Membership of various networks

will be maintained in order to optimise collaborative opportunities. (Action M(Action M(Action M(Action M6666) ) ) ) Some of these existing networks are:

• DELWP Water Sector Emissions Reduction Working Group

• WSAA Climate Change and Energy Efficiency Network

• Institute of Water Administration (IWA) Energy and Greenhouse SIG

• Gippsland Climate Change Network

• Intelligent Water Networks

• East Gippsland Shire Council Renewable Energy Community Project

Intelligent Intelligent Intelligent Intelligent Water Networks Large Scale Renewable Energy ProjectWater Networks Large Scale Renewable Energy ProjectWater Networks Large Scale Renewable Energy ProjectWater Networks Large Scale Renewable Energy Project

The Intelligent Water Networks (IWN) is a collaboration between the Victorian water corporations, The Victorian Water Industry Association (VicWater) and the state government. Its key focus is on collaborating to drive innovation to deliver value to our customers and the environment.




One of the current IWN projects is to examine the feasibility of a large scale renewable energy project that will not only achieve the government’s water sector renewable energy targets, but also provide a cost efficient investment in renewable energy for the industry. Having confirmed the feasibility, the next step is to progress the project. At the time of writing, EGW has confirmed its in-principle commitment to this project which, if realised, will produce at least 25% ‘self-generated’ renewable energy for the sector. (Refer DOCs 16/44684 and 16/51125). (Action M(Action M(Action M(Action M7777) ) ) )

Scope 1 Emissions Reduction ProjectScope 1 Emissions Reduction ProjectScope 1 Emissions Reduction ProjectScope 1 Emissions Reduction Project

We are also a participant in a project managed by Melbourne Water to reduce Scope 1 emissions attributable to treatment of wastewater.

Project DeterminationProject DeterminationProject DeterminationProject Determination

All projects designed to reduce carbon emissions will be subject to a business case based on net present value (NPV) and marginal abatement cost (MAC); that is, the cost per tonne of CO2-e abatement for a project.

These may be plotted on a marginal abatement cost curve (MACC) against the target emission reduction, with those that represent a net saving both in carbon and dollar costs the first priorities. Those that represent a dollar cost will then be compared with the “offset

cost” to determine those which should proceed, or be replaced by an offset project, such as

accredited7 tree planting.

Figure 3: Sample MACC

7 Offsets must comply with the National Carbon Offset Standards published by the Commonwealth Department of the Environment.




Part 2 Part 2 Part 2 Part 2 –––– ADAPTATIONADAPTATIONADAPTATIONADAPTATION

Adaptation seeks to identify our vulnerabilities and put measures in place to manage the impact of climate change on our operations. This part of the Plan seeks to address adaptation issues identified in the WSAA Water Industry Climate Change Adaptation Guidelines.

Figure 4: The components of climate change adaptation within a water utility




1. CommitCommitCommitCommitmentmentmentment

Key messagesKey messagesKey messagesKey messages from the WSAA Water Industry Climate Change Adaptation Guidelinesfrom the WSAA Water Industry Climate Change Adaptation Guidelinesfrom the WSAA Water Industry Climate Change Adaptation Guidelinesfrom the WSAA Water Industry Climate Change Adaptation Guidelines

► Barriers to adaptation need to be understood so that they can be addressed as part of a comprehensive adaptation strategy

► Support from the executive for adaptation planning is crucial

► Strong governance around climate change will ensure that commitment and momentum are not lost over time

► Stakeholder engagement (internal and external) is a critical delivery tool for most tasks highlighted in the guidelines

► Decision making processes need to be able to incorporate uncertainty.

1.1 Understand regulatory drivers and barriers to adaptationUnderstand regulatory drivers and barriers to adaptationUnderstand regulatory drivers and barriers to adaptationUnderstand regulatory drivers and barriers to adaptation

Our drivers are listed on pages 6 and 7 of this Plan, and include:

• State government policies

• Statement of Obligations

• EGW Corporate Plan

Barriers may include:

• The nature of climate change as a “wicked problem”: complex, cross-cutting, and with no easy solution

• The tendency to push back, or deprioritise, adaptation actions due to their long timeframes

• Impediments to working together such as siloed working practices and poor communication

• Budgetary and capacity constraints

The Productivity Commission (2012) provides a broader discussion on barriers to adaptation.

1.2 IIIInternal support and directionnternal support and directionnternal support and directionnternal support and direction

Climate change is a whole of organisation issue, relevant to all business areas, not just the environment.

Policy 054 (Climate Change), this plan and the Energy Management Strategy provide clear and ongoing commitment to adaptation planning over the longer term.

Sufficient resources both financial and non-financial for coordination and input into the adaptation planning process will be provided. While the Manager Business Risk is responsible for developing and overseeing this plan, all management and staff are expected to lead and/or participate in climate change management strategies relevant to their role. Appropriate training will be provided to enable this.




Position descriptions and key performance indicators (KPIs) will be reviewed with regard to climate change adaptation responsibilities, and amended where relevant. (Action A1(Action A1(Action A1(Action A1))))

Internal and external communication strategies will be developed. (Action A2)(Action A2)(Action A2)(Action A2)

1.3 Integrate adaptation Integrate adaptation Integrate adaptation Integrate adaptation considerations into governance structureconsiderations into governance structureconsiderations into governance structureconsiderations into governance structure

The Board, through the Infrastructure, Operations and Environment Committee, is responsible for oversight of our climate change management activities. A regular report that will include progress against this plan will be provided to the committee. (Action A3(Action A3(Action A3(Action A3))))

Periodic reporting is also required as part of the Statement of Obligations (Item 1-6.1, 1-6.2, 4-2, 6-A and 6-1.1.) This may change with the new SoO expected in July 2017.

1.4 Define robust decision making Define robust decision making Define robust decision making Define robust decision making processesprocessesprocessesprocesses

Uncertainty is a key characteristic of climate change; a fact that no amount of investigation will alter. It is important to ensure that our decision making processes are able to embrace and integrate this uncertainty.

In order to achieve this, we will:

• Incorporate climate change into all relevant decisions, as an additional parameter to take into account, rather than a discrete issue to be tackled in isolation

• Integrate scenario planning, using multiple Representative Concentration

Pathways (RCPs)8 rather than just the “average” conditions

• Plan over multiple planning horizons, taking into account both the time when a risk will reach a critical trigger point and the time-lag required to implement effective responses

• Favour flexible/adaptive solutions, which may require us to define multiple pathways (see Section 3.3)

As budgetary constraints are central to long term investment decisions, we will need to build robust business cases to justify capital investment and bring the topic into future discussions with regulators, in particular the Essential Services Commission. (Action (Action (Action (Action A4A4A4A4))))

8 Climate projections for Gippsland (or any region) are based on sophisticated national and international global climate models. To cover the range of possibilities within these models, emission scenarios called Representative Concentration Pathways Representative Concentration Pathways Representative Concentration Pathways Representative Concentration Pathways (RCPs) have been developed to underpin climate projections. These projections describe a high emissions future (using RCP 8.5) and a lower emissions future (using RCP 4.5). It is generally accepted that RCP2.6 is required to maintain global temperature rise below the 2oC target set at the Paris COP in 2015. Unfortunately, now and for the last 10 years, the world has tracked along the high emissions pathway. Local impacts based on these RCPs are reflected in EGW DOC/16/6233 - Climate Change Projections - East Gippsland.




2. AssessAssessAssessAssessmentmentmentment


► A shared understanding of the key functions of a water utility amongst internal stakeholders is critical

► Keep climate science knowledge as current as possible, while acknowledging and embracing uncertainty

► A vulnerability assessment assists with setting key priority areas, which are further explored through a detailed risk assessment

► Risk assessment processes need to be adjusted to incorporate complexity, including the different levels of risk and/or uncertainty over different planning and decision horizons

► Engagement (internally and externally) and collaboration will yield the best results for the assessment process.

This aspect is about the critical task of assessing climate risks, which will set the foundation for prioritising and planning adaptation responses. It is NOT a one-off exercise, but one that needs to be revisited regularly and as events occur, in a process of continuous learning and improvement.

2.1 Understand core functionsUnderstand core functionsUnderstand core functionsUnderstand core functions and interdependenciesand interdependenciesand interdependenciesand interdependencies

The six core functional areas for assessment are:

1. Source waters

2. Built assets

3. Natural environment

4. People and workplace

5. Interdependencies

6. Customer and product delivery

These are expanded on in Appendix 1 of the WSAA Guidelines.

To undertake our vulnerability and risk assessments we need to:

• List our core functions

• Identify those core functions and associated business areas that are most likely to be impacted by climate change (refer Appendix 1 of the WSAA Guidelines).

• Identify interdependency risks relevant to core functions, such as power and telecommunications ((((Action A5)Action A5)Action A5)Action A5)

Defining core functions is the first step in identifying which areas of our business will be most critically impacted by climate change. It is also a powerful communication tool to engage external stakeholders and identify interdependencies.




2.2 CCCClimate science inputslimate science inputslimate science inputslimate science inputs

Sound and up-to-date climate science is an important input for undertaking vulnerability assessments. A lot of modelling information is available for our region, which has been summarised in DOC/16/6233 – Climate Change Projections – East Gippsland. This is a living document and will be reviewed and updated regularly.

Other useful information is available at:

http://www.climatechangeinaustralia.gov.au/en/climate-projections/climate-analogues/analogues-explorer/

http://www.climatechange.vic.gov.au/

http://www.climatechangeinaustralia.gov.au/en/

http://www.environment.gov.au/climate-change/publications

2.3 Undertake scenario planningUndertake scenario planningUndertake scenario planningUndertake scenario planning

Scenario9 planning is a method to help us broaden our strategic thinking by envisaging

plausible, but wide ranging and complex future scenarios. This can assist in breaking the tendency to think in terms of status quo, “average” trends and incremental change. Scenario planning embraces complexity and system thinking (i.e. interdependencies), uncertainty and encourages the development of solutions that remain valid in a wide range of future scenarios, which is a key principle of robust climate change adaptation.

To set the basis for scenario planning:

• Review available climate scenarios in DOC/16/6233

• Ensure that all parameters relevant to our core functions are incorporated in the scenarios (such as population and water use projections, location of human settlements etc.) and that you are satisfied with the underlying assumptions of the scenarios

• Select the most appropriate scenarios from what is available, based on internal specialist input

• Future climate scenarios should, once defined, be consistently applied across the adaptation planning process, until a need to review them is identified.

2.4 VulnerabilityVulnerabilityVulnerabilityVulnerability assessment across core functionsassessment across core functionsassessment across core functionsassessment across core functions

Vulnerability-based assessments identify where the greatest potential for harm lies and explains the various factors that may contribute to that harm. When undertaking vulnerability based assessments:

• Examine the “systems at risk” that were defined in section 2.1

• Use the climate science and scenarios described in previous steps as inputs

• Acknowledge and incorporate interdependencies with other stakeholders / key suppliers or downstream consumers

9 The Intergovernmental Panel on Climate Change (IPCC) defines a scenario as ‘a plausible and often simplified description of how the future may develop, based on a coherent and internally consistent set of assumptions about driving forces and key relationships’.




• Map climate vulnerability for each system at risk by:

• Identifying exposure and sensitivity of each system to climate events and climate trends

• Assessing potential impacts on each system

• Taking into account the current adaptive capacity that may increase a system’s resilience

• Estimating where the qualitative or quantitative threshold of unacceptable or dangerous impact or consequence might be for this particular system.

• Involve internal and external stakeholders where relevant

• Check for vulnerabilities across systems

• Identify priority areas where the potential for “greatest harm” lies

Appendix D of the WSAA Guideline provides further information on vulnerability assessments, including definitions of exposure and sensitivity, and examples of vulnerability for the six core functions used in these guidelines: source waters, assets, environment, people and workplace, interdependencies, and customer and product delivery. (Action A(Action A(Action A(Action A6666))))

2.5 Decide priority areasDecide priority areasDecide priority areasDecide priority areas

The definition of priority areas for adaptation actions allows us to focus our attention and resources on areas that have been identified as presenting the highest strategic risk of service delivery disruption due to climate change. This will save time and resources in undertaking the risk assessment (Section 2.6). (Action A(Action A(Action A(Action A7777))))

Priority areas should be determined from the high level vulnerability assessment and articulate:

• The potential of high or unacceptable harm to the system concerned (infrastructure or people) when all impacts, including cumulative risks, are considered

• The immediacy of the risk (e.g. heatwaves will be more immediate than sea level rise)

The definition of the priority areas can then feed into the detailed risk assessment process described at the next step. Once priority areas are defined we will:

• Issue a summary of the outcomes of the vulnerability assessment and rationale for priority areas to internal stakeholders

• Obtain validation from the executive and board on these priority areas and confirm commitment to providing subsequent resource needs, subject to sound business cases

• Communicate the results to stakeholders

2.6 Undertake detailed risUndertake detailed risUndertake detailed risUndertake detailed risk assessmentk assessmentk assessmentk assessment

Once priorities have been established and validated, a more detailed risk assessment will be undertaken to explore technical aspects and possible impacts on individual assets or systems critical to the delivery of our core functions. (Action (Action (Action (Action AAAA8888))))




It is important to acknowledge that, when it comes to future climatic events, the traditional approach of using past behaviour of systems (for example, the long-term observed relationship between rainfall and runoff) to predict future system behaviour may not be appropriate.

Key considerations within the climate risk assessment process are:

• Various time horizonsVarious time horizonsVarious time horizonsVarious time horizons:::: “flattening” time horizons in a risk assessment, for example by applying a single probability or consequence quantification to a risk, can lead to over-emphasising or discounting risks that vary over time, as is the case for climate risks

• Tipping points:Tipping points:Tipping points:Tipping points: climate science points to potential “tipping points”, where radical changes in “normal” climate characteristics or the responses of the receiving environment may occur

• Overlapping risks:Overlapping risks:Overlapping risks:Overlapping risks: climate change risks may aggravate existing risks

• Cumulative risks:Cumulative risks:Cumulative risks:Cumulative risks: climate change risks may eventuate in a sequence that leads to different consequences than when occurring separately. For example, heavy rains on catchments that have been hit by bushfires have dramatic consequences on water quality

• Interdependencies:Interdependencies:Interdependencies:Interdependencies: water utilities are part of a complex system and the operation of critical assets may depend on access to other services (such as road access or provision of electricity). Conversely, other stakeholders interact at various levels with the water cycle and their behaviours or needs may be affected by the same climate trends

• Uncertainty:Uncertainty:Uncertainty:Uncertainty: there is a direct link between decision making under uncertainty described in Section 1.4 and the risk assessment processes, and it is important that these processes are consistent.

EGW’s Risk Management Manual DOC/09/7447* has been updated to allow assessment of longer term risks such as climate change. New qualitative measures of likelihood for long term risks allow for better consideration of the impacts of various models. These measures were sourced from Australian Standard 5334-2013 Climate change adaptation for settlements and infrastructure – A risk based approach.

Table 2: EGW Qualitative Measures of Likelihood




3. PlanPlanPlanPlanningningningning and Responand Responand Responand Responsesesese


► Collaborate with stakeholders

► Think ‘outside the box’ and consider innovative solutions

► Adaptation actions need to be flexible

► Beware of maladaptation and over-adaptation, and learn from previous events

► Favour multiple pathways over fixed, rigid plans.

This component outlines how to develop, evaluate and prioritise adaptation options and actions to support a robust response to climate change. The technical appendices for core water industry functions in the WSAA Guideline provides more specific support for adaptation options and actions for a water utility. This component is also supported by stakeholder engagement outlined further in Appendix C, Appendix F on scenario planning, Appendix G describing categories of adaptation options, and Appendix H on maladaptation.

3.1 Development of adaptation optionsDevelopment of adaptation optionsDevelopment of adaptation optionsDevelopment of adaptation options

The development of adaptation options should aim to protect critical service delivery and systems at risk as identified in the vulnerability and risk assessments in Component 2. Creativity and ‘outside the box’ thinking are encouraged to ensure that cost-effective, innovative solutions are not overlooked. This should be supported by extensive stakeholder engagement (see Part 3). (Action A(Action A(Action A(Action A9999))))

The following principles provide guidance for options consideration and development:

• Identify solutions that address several risks, as these are likely to be most cost-effective. Elaborating solutions in cross-disciplinary teams is helpful

• Favour options that reduce system vulnerability, building resilience and capacity to recover from shocks

• Consider different interventions including management of customer expectations, reduction of exposure, and reduction of sensitivity or increase in resilience

• Consider different categories of adaptation actions (these are further explained in Appendix G of the WSAA Guidelines)

• Identify transformative as well as incremental solutions.

To build organisational capacity over time, a centralised ‘library’ of adaptation options may be developed, which should be kept up to date with documentation of the current status of development and the technical, environmental, social and financial viability of each option. This can be part of the continuous improvement process and can also be turned into an industry-wide knowledge exchange and collaborative exercise.

3.2 Evaluate and prioritiseEvaluate and prioritiseEvaluate and prioritiseEvaluate and prioritise adaptation optionsadaptation optionsadaptation optionsadaptation options

Having developed a suite of adaptation options the next step is to evaluate and prioritise the options. These steps should be consistent with the corporation’s existing business processes and consider both costs and benefits of the various options.




Evaluating (Evaluating (Evaluating (Evaluating (sssscreening) optionscreening) optionscreening) optionscreening) options

Screening is effectively a first-pass review of the viability and potential benefits or co-benefits of each adaptation option, as well as a broad consideration of expected costs. Screening aims to refine a potentially large number of options into a consolidated list prior to more detailed investigation and prioritisation. (Action A(Action A(Action A(Action A10101010))))

The screening process should involve the following steps:

• AssignAssignAssignAssign highhighhighhigh----level classifications to describe each adaptation option.level classifications to describe each adaptation option.level classifications to describe each adaptation option.level classifications to describe each adaptation option. EGW classifications are:

A.A.A.A. No-regrets: No-regrets options are those with little to no cost that do not preclude other options and provide benefit under a wide range of possible futures, or options that address a number of issues beyond climate change.

B.B.B.B. Viable but further development needed

C.C.C.C. Viability unknown; further development needed

D.D.D.D. Not viable; redesign required

E.E.E.E. Not viable or ‘defer until future time’.

• Apply the classifications:Apply the classifications:Apply the classifications:Apply the classifications:

• Earmark no-regrets options for implementation

• Identify supplementary information or work required on other options.

• Avoid maladaptation and overAvoid maladaptation and overAvoid maladaptation and overAvoid maladaptation and over----adaptation:adaptation:adaptation:adaptation: a “reasonableness” check can be applied early to ensure solutions will not lead to maladaptation by missing key risk context elements, or over-adaption by considering a “worst-case” scenario, where a more flexible approach to dealing with uncertainty could be possible. Also consider the experience of other water utilities and industry sectors. Further information on maladaptation can be found in the WSAA Guidelines Appendix E.

At the end of the screening process, ‘suites’ of options that logically belong together or complement each other should be able to be formed.

Prioritisation of optionsPrioritisation of optionsPrioritisation of optionsPrioritisation of options

Prioritisation is a critical process examining option robustness and effectiveness under a range of climate futures. Depending on the physical/time scale and budget implications, a business case incorporating multi-criteria analysis may be required.

Prioritising adaptation options will include:

• Estimating costs, benefits, co-benefits and identifying possible funding sources

• Refining the description of interactions between options, interdependencies, mutual exclusivities and prerequisites

• Iteratively refining the investigation for the best options

• Developing quantitative or qualitative cost-benefit analyses taking into account uncertainty

• Obtaining endorsement by management

Also consider that selected adaptation options need to be flexible over time to accommodate uncertainty.




3.3 Document actions Document actions Document actions Document actions into adaptation planinto adaptation planinto adaptation planinto adaptation plan

Documentation of actions is critically important as it brings together all the assessment work and formalises decisions made in relation to adaptation actions.

The adaptation plan:

• Includes flexible solutions and adaptation pathways to avoid locking us into a one-track adaptation plan

• Links and refers to existing key planning documents and other existing business processes

• Represents the endorsement of any decision made in relation to climate change adaptation by senior management and the board.

The following is an example of a structure that may be adopted:

• Introduction:Introduction:Introduction:Introduction: Endorsement by senior management and board, and a brief presentation of the business

• What are we adapting to?What are we adapting to?What are we adapting to?What are we adapting to? The climate change trends and scenarios used as reference (including key geographical information)

• Priority areas:Priority areas:Priority areas:Priority areas: Key vulnerabilities and risks identified in Component 2

• ResponsesResponsesResponsesResponses:::: Actions addressing key vulnerabilities and risk organised by priority area (or across core functions, as illustrated in Figure A-1). Actions will need to be detailed over specific timelines, linked to relevant triggers, with a brief rationale for the decision, and assign key accountability for the actions’ implementation. The responses should be formalised into adaptation pathways that incorporate different actions depending on the triggers set; this is consistent with scenario planning described in Section 2.3, with further resources at Appendix F

• Governance considerations:Governance considerations:Governance considerations:Governance considerations: This should include the next revision date for the plan

• Appendix:Appendix:Appendix:Appendix: Detailed action plan, with timelines, responsibility allocations and indicative budgets.

(Action A(Action A(Action A(Action A11111111))))

Although they may be listed and Although they may be listed and Although they may be listed and Although they may be listed and managed elsewhere (eg: Prometheus), all climate managed elsewhere (eg: Prometheus), all climate managed elsewhere (eg: Prometheus), all climate managed elsewhere (eg: Prometheus), all climate change adaptation actions will be incorporated into this planchange adaptation actions will be incorporated into this planchange adaptation actions will be incorporated into this planchange adaptation actions will be incorporated into this plan,,,, which will form the which will form the which will form the which will form the basis for regular review reporting (see part 2.5).basis for regular review reporting (see part 2.5).basis for regular review reporting (see part 2.5).basis for regular review reporting (see part 2.5).




4. EmbedEmbedEmbedEmbeddingdingdingding


► Build communities and knowledge hubs to support engagement around climate change adaptation

► Commit to change; a world with climate change is the new norm and this needs to be reflected all through your organisation’s processes

► Ensure consideration of climate change is comprehensive and doesn’t leave areas of ambiguity.

This component supports the implementation and embedding of climate change adaptation in our day-to-day operations and governance processes. Critical to embedding climate change action within an organisation is ensuring that it is adequately resourced and stakeholders are engaged to support response into the future.

4.1 RRRResponsibilitiesesponsibilitiesesponsibilitiesesponsibilities and KPIsand KPIsand KPIsand KPIs

The following EGW management positions have a direct relationship with climate change and energy management:

• Managing DirectorManaging DirectorManaging DirectorManaging Director:::: Responsible to the board for the effective management of the corporation

• Executive Manager Operations:Executive Manager Operations:Executive Manager Operations:Executive Manager Operations: Reports to the Managing Director. Has overall responsibility for the Energy Management System and operations and maintenance of infrastructure assets

• Executive Manager Infrastructure:Executive Manager Infrastructure:Executive Manager Infrastructure:Executive Manager Infrastructure: Reports to the Managing Director. Has overall responsibility for the asset, capital and project management systems

• Executive Manager Executive Manager Executive Manager Executive Manager BusinessBusinessBusinessBusiness:::: Reports to the Managing Director. Has overall responsibility for corporate accounting and finance functions including planning; and information & communications technology related functions.

• Executive Manager Executive Manager Executive Manager Executive Manager Organisational DevelopmentOrganisational DevelopmentOrganisational DevelopmentOrganisational Development:::: Reports to the Managing Director. Has overall responsibility for a number of key corporate services including human resources environment, safety, risk and compliance

• Energy Performance Analyst:Energy Performance Analyst:Energy Performance Analyst:Energy Performance Analyst: Reports to the Executive Manager Operations. Responsible for energy management planning and development of EGW’s Energy Management Strategy (EnMS)

• Manager Asset Systems:Manager Asset Systems:Manager Asset Systems:Manager Asset Systems: Reports to the Executive Manager Infrastructure. Responsible for asset management planning

• Executive Executive Executive Executive Manager Planning:Manager Planning:Manager Planning:Manager Planning: Reports to the Managing Director. Responsible for operational strategy development, 20 year plan for capital works and planning and investigation works

• Manager Capital Program Delivery:Manager Capital Program Delivery:Manager Capital Program Delivery:Manager Capital Program Delivery: Reports to the Executive Manager Infrastructure. Responsible for the delivery of the current/five year capital works program and project management procedures




• Service Delivery Manager:Service Delivery Manager:Service Delivery Manager:Service Delivery Manager: Reports to Executive Manager Operations. Responsible for operations and maintenance of network assets

• Treatment Manager:Treatment Manager:Treatment Manager:Treatment Manager: Reports to Executive Manager Operations. Responsible for operations and maintenance of treatment assets

• Manager Water Resources:Manager Water Resources:Manager Water Resources:Manager Water Resources: Reports to Executive Manager Operations. Responsible for operations and maintenance of reuse assets, as well as the proper functioning of the Woodglen Bores

• Manager Financial Services:Manager Financial Services:Manager Financial Services:Manager Financial Services: Reports to the Executive Manager Business. Responsible for integrity of financial data

• Manager Business Risk:Manager Business Risk:Manager Business Risk:Manager Business Risk: Reports to the Executive Manager Organisational Development. Responsible for risk management advice and guidance as well as management of EGW’s dam safety program and development of the corporation’s climate change management plan.

Apart from the Energy Performance Analyst, none of these positions have specific climate change responsibilities listed in their position descriptions (PDs). PDs need to be reviewed to include these responsibilities where appropriate. (Action A(Action A(Action A(Action A1)1)1)1)

We will need to ensure that adequate resources are allocated and supported to embed this plan across the organisation. The plan will be long-term and will require ongoing decisions and adjustments (such as when trigger points are reached). Resources for the plan should fall into the following categories:

• Time commitment for ongoing coordination of the overall climate change management program

• Time commitment for working with stakeholders, in particular those with whom collaboration is essential (for example, power companies, local government, emergency management agencies) and membership of industry and community networks

• Upskilling and capacity building for staff (time and training resources costs)

• Resources for infrastructure adaptation projects (if any)

• Resources for management of non-infrastructure behavioural adaptation projects

• Resources for monitoring climate change and the implementation of the plan.

Most of these resources accommodated within existing “business as usual” through a reallocation of roles and priorities.

Once resources have been committed, the roles and responsibilities of staff in the success of the plan should be clear, and key performance indicators (KPIs) set to drive its ongoing success. KPIs will need to be agreed and embedded into the plan through internal and external stakeholder engagement. The KPIs need to be:

• Quantifiable and measureable

• Reviewed on a regular basis given inherent uncertainties with climate change

• Aligned with organisational success and goals

• Documented and embedded into the organisation’s governance structure




4.2 Embed Embed Embed Embed adaptation planadaptation planadaptation planadaptation plan into investment processes and relevant plansinto investment processes and relevant plansinto investment processes and relevant plansinto investment processes and relevant plans

The most cost-effective way of adapting to climate change is to integrate climate change considerations in all of our decision-making processes. In this way, decisions can be made in the context of a changing climate rather than having to make additional decisions on climate change in isolation (which could lead to maladaptation or over-adaptation). (Action A(Action A(Action A(Action A12 & A13)12 & A13)12 & A13)12 & A13)

At the capital planning and budgeting stages, the same innovative thinking that presided over the elaboration of climate change adaptation responses should apply. For example, it may be possible to find solutions that address climate change risks and other service delivery issues at the same time and for minimum budgetary outlay. This may require grouping projects or “piggy-backing” on some planned work (Office of Water, 2014).

Similarly, for any projects that require the use of energy that is additional to business as usual (BAU), opportunities for renewable energy or other energy efficiency options should be considered and, where practicable, incorporated into the design and budget for the project.

For all projects, the For all projects, the For all projects, the For all projects, the VictorianVictorianVictorianVictorian zerozerozerozero----net emissions target (by 2050) should be net emissions target (by 2050) should be net emissions target (by 2050) should be net emissions target (by 2050) should be central central central central in in in in the option evaluation processthe option evaluation processthe option evaluation processthe option evaluation process....




5. MonitorMonitorMonitorMonitoringinginging and Reviewand Reviewand Reviewand Review


► It is important to monitor:

► Climate science updates, changing practices and experiences of other organisations

► Key thresholds (tipping points and triggers)

► Regulatory, policy and governance changes

► Adaptation is an ongoing, ever-evolving process; reviews must be as frequent as necessary, including post climatic events

► The right pathway today might not be optimal in the future

► Collaboration and learning from industry experience will improve future outcomes.

This component outlines the importance of monitoring and review in climate change management. Monitoring and review help us to identify when key trigger points are

approaching, to measure overall planning or adaptation success, and to provide a

benchmark for assessing the effectiveness of actions. The technical appendices in Appendix A of the WSAA Guideline provides more specific support for monitoring and review within

core water industry functions.

5.1 Assess changes and revise adaption options as requiredAssess changes and revise adaption options as requiredAssess changes and revise adaption options as requiredAssess changes and revise adaption options as required

Monitoring is fundamental to assess changes in the environment and risk context and trigger the review of adaptation options. Monitoring helps tackle the uncertainty inherent in climate change impact by putting in place warning bells that can indicate when alternative actions are required or when expected climate trajectories do not eventuate. (Action A(Action A(Action A(Action A14)14)14)14)

Examples of changes that may be triggered by the monitoring process include:

• Sea level rise:Sea level rise:Sea level rise:Sea level rise: A “retreat” decision for coastal assets may need to be made if the rate of sea level rise accelerates

• Drought and population:Drought and population:Drought and population:Drought and population: A dual trend of population increase and increase in likelihood of drought may trigger a decision to augment the water supply

• Aquifer recharge ratesAquifer recharge ratesAquifer recharge ratesAquifer recharge rates and state of key systemsand state of key systemsand state of key systemsand state of key systems:::: Indicators around groundwater levels and salinity in extraction bores may trigger decisions to switch to other supply options

• Changing ecology and rising temperatures:Changing ecology and rising temperatures:Changing ecology and rising temperatures:Changing ecology and rising temperatures: The changing ecology of a reservoir, combined with a rise in average temperatures can trigger water quality management actions

We therefore need to:

• Define key parameters that need to be monitored (if not defined as part of the planning process described in Component 3)




• Be in a position to capture:

a. Science updates, including new projections based on improved climate modelling

b. Changes in regulatory and policy drivers

c. Publication of relevant work undertaken within the industry that needs to be captured, (e.g. revision of the Australian Rainfall and Runoff guideline)

d. Experiences and lessons learnt, including maladaptation and over-adaptation, by other water utilities and other sectors

5.2 Analyse eventAnalyse eventAnalyse eventAnalyse eventssss and review risks and adaptation optionsand review risks and adaptation optionsand review risks and adaptation optionsand review risks and adaptation options

While a structured (periodic) review process supports ongoing improvement of plans and actions, the effectiveness of some adaptation actions can only be gauged when an extreme climatic event occurs.

When extreme climatic events do occur, focus groups can be organised to draw lessons and learn more about the effectiveness of climate responses in place. Similar focus groups could look at regional events and responses within the industry.

The crossing of “warning” thresholds should also trigger partial or full reviews of the adequacy of the adaptation actions in place.

After each review, all relevant documentation (including this plan) should be updated accordingly. (Action A(Action A(Action A(Action A15)15)15)15)

5.3 ReviewReviewReviewReview the plan and adaptation optionsthe plan and adaptation optionsthe plan and adaptation optionsthe plan and adaptation options

A progress review of actions within the climate change management plan will take place at least annually and be reported to the Executive Management Team; the Infrastructure, Operations and Environment Committee; and ultimately the Board. The outcomes of reviews should be reported to senior management in a formal monitoring report, with corrective actions. The overall plan will also be reviewed periodically and amended as appropriate.

After each review, all relevant documentation (including this plan) should be updated accordingly. The scope of the review will cover the following:

• Progress of implementation against KPIs and Progress of implementation against KPIs and Progress of implementation against KPIs and Progress of implementation against KPIs and timeframes:timeframes:timeframes:timeframes: Due to the long time frame of climate change adaptation actions, or because of the nature of some of the actions (such as engagement with stakeholders), the priority placed on implementing adaptation actions may “slip” or funding may be reallocated. The review will identify such instances and assess the impact this may have on the overall implementation of the broader adaptation plan

• Effectiveness of adaptation actions:Effectiveness of adaptation actions:Effectiveness of adaptation actions:Effectiveness of adaptation actions: For some adaptation actions, effectiveness may be evident in the short-term (for example, a revegetation program). Where viable, the effectiveness of such actions should be tracked on the basis of consistently quantifiable measurement indicators (for example, hectares revegetated to a benchmarked density and diversity within the past 12 months) and linked back to the measures of success.




When actions have not been implemented, governance and commitment to the climate change management program can be revisited, upskilling and capacity building may need to be undertaken, or KPIs strengthened. When actions have failed to produce the expected benefit, the reasons for the failure can be analysed and corrective measures implemented.

Whatever the outcome of the review, it is an important step in the overall process as it demonstrates an organisation’s capacity to learn and improve based on both its successes and its failures.

IIIIt is important to remember climate change adaption should be seen as a step in a cycle of t is important to remember climate change adaption should be seen as a step in a cycle of t is important to remember climate change adaption should be seen as a step in a cycle of t is important to remember climate change adaption should be seen as a step in a cycle of continuous improvement towards a new way of integrating future climate into todaycontinuous improvement towards a new way of integrating future climate into todaycontinuous improvement towards a new way of integrating future climate into todaycontinuous improvement towards a new way of integrating future climate into today’’’’s s s s decisions within decisions within decisions within decisions within our businessour businessour businessour business....




6. Technical AppendicesTechnical AppendicesTechnical AppendicesTechnical Appendices

The WSAA Climate Change Adaptation Guideline contains technical appendices that provide further information for water utilities on how to assess, plan, embed and monitor climate change adaptation within core functional areas of their business. The six core functional areas detailed in these appendices were determined through consultation with the water industry, and are:

1. Source waters

2. Built assets

3. Natural environment

4. People and workplace

5. Interdependencies

6. Customer and product delivery

These core functional areas cover the breadth of operations within Australia and New Zealand. Each technical appendix is structured by components 2-5 of the guideline: assess, plan and respond, embed, monitor and review.




Part Part Part Part 3333 –––– COMMUNITY ENGAGEMENTCOMMUNITY ENGAGEMENTCOMMUNITY ENGAGEMENTCOMMUNITY ENGAGEMENT

Community involvement in decisions relating to climate change that may affect them, or members of the community in future generations should be facilitated where possible. This includes providing:

• appropriate information to the community

• opportunities for the community to be involved in decisions

• appropriate and adequate public engagement with the community.

Customer water usage patterns play in important part in our energy usage and therefore carbon footprint. While the energy demands during peak periods are unlikely to be able to be met by self-generated renewable energy, management of peaks may even out the fluctuations and reduce demand on grid energy, particularly during high-cost peak times. Influencing customer demand and behaviour may also have flow-on effects to extend asset life and defer capital investments.

An extensive community engagement survey was conducted between 14 October and 5 December 2016 that generated 921 responses. The survey included several questions

regarding our requirement to reduce our greenhouse gas emissions and caring for our environment. The responses demonstrated overwhelming support for EGW to be an environmental leader in our area (85%). When questioned in more detail, our community

also supported spending customer’s money to support liveability by planting trees and creating habitat and reducing greenhouse gas emissions in ways that keep jobs and money

in our region,

Issues relating to climate change will be embedded into EGW’s Community Engagement Strategy to achieve the elements above. (Action CE1)(Action CE1)(Action CE1)(Action CE1)




Climate Change Action Plan Climate Change Action Plan Climate Change Action Plan Climate Change Action Plan 2012012012017 7 7 7 ---- 2020202019191919

Part 1 Part 1 Part 1 Part 1 Mitigation Action PlanMitigation Action PlanMitigation Action PlanMitigation Action Plan

SerialSerialSerialSerial ChallengeChallengeChallengeChallenge ResponseResponseResponseResponse Output MeasureOutput MeasureOutput MeasureOutput Measure Who ByWho ByWho ByWho By By WhenBy WhenBy WhenBy When

M1 Data accuracy, p13 Identify and implement improved accuracy of electricity usage data capture.

Revised data capture and reporting processes evaluated and implemented.

Energy Performance Analyst

Jul 2017

M2 Data accuracy, p13 Identify and implement accurate method of renewable electricity usage data capture.

Complete – this is being tracked online through Data Analytics and Enphase


Complete

M3 Data accuracy, p13 Critically review GGB project data to confirm actual savings being made.

Periodic reports by Ecosave as part of GGB contract.


Ongoing for length of EPC (7 years)

M4 Energy efficiency, p13, System efficiencies, p13 & Energy Management Reference Strategy, p15

Develop an energy management strategy embracing the DELWP climate guidance hierarchy.

Energy management strategy approved by the Managing Director.


Mar 2017

M5 Emissions Reduction Targets, p15

Develop emission reduction targets consistent with state government policy.

EGW Pledge is accepted by DELWP & included in revised SoO.

Manager Business Risk Jun 2017

M6 Collaboration with industry and other stakeholders.

Maintain membership of industry and community climate change and energy efficiency networks to optimise collaborative opportunities.

Membership of IWA E&G SIG, WSAA CCEE Network and local networks maintained.

Manager Business Risk / Energy Performance Analyst

Ongoing




Part 1 Part 1 Part 1 Part 1 Mitigation Action PlanMitigation Action PlanMitigation Action PlanMitigation Action Plan (continued)(continued)(continued)(continued)

SerialSerialSerialSerial ChallengeChallengeChallengeChallenge ResponseResponseResponseResponse Output MeasureOutput MeasureOutput MeasureOutput Measure Who Who Who Who ByByByBy By WhenBy WhenBy WhenBy When

M7 IWN large scale renewable energy project.

Active participation in the investigation phase of the IWN large scale renewable energy project.

EGW in principle commitment to the project – complete.

Provision of power commitment data.

Final directions report to the Board for consideration.


Ongoing

Part 2 Part 2 Part 2 Part 2 AdaptationAdaptationAdaptationAdaptation Action PlanAction PlanAction PlanAction Plan


A1 1.2 Internal support and direction

4.1 Responsibilities & KPIs

Review position descriptions and key performance indicators (KPIs) with regard to climate change adaptation responsibilities, and amend where relevant.

Position descriptions updated for all staff listed in 4.1.

Manager People, Diversity and Inclusion

Sep 2017

A2 1.2 Internal support and direction

Develop internal and external communications strategies.

Internal and external communications strategies developed and commenced.

Manager Business Risk Sep 2017

A3 1.3 Internal reporting Develop internal reporting framework.

Internal reporting framework developed and reporting commenced.


A4 1.4 Define decision making processes

Review and develop EGW decision making processes with regard to climate change.

CAPEX MCA and other investment decision processes are modified to factor carbon emission impacts.





Part 2 Part 2 Part 2 Part 2 AdaptationAdaptationAdaptationAdaptation Action PlanAction PlanAction PlanAction Plan (continued)(continued)(continued)(continued)


A5 2.1 Understand core functions and interdependencies

Identify core functions and interdependency risks.

Core business functions and interdependency risks are identified.


A6 2.4 Vulnerability assessment

Conduct vulnerability assessment. Vulnerability assessment of core functions is completed.

Manager Business Risk Jul 2017

A7 2.5 Determine priorities Define priority areas and obtain Executive endorsement and Board approval.

Priority areas for adaptation action are agreed.


A8 2.6 Risk assessment Undertake detailed risk assessment.

Detailed risk assessment is completed.

Manager Business Risk Oct 2018

A9 3.1 Adaptation options. Develop adaptation options. Adaptation options are developed.

Manager Business Risk Nov 2017

A10 3.2 Evaluate and prioritise adaptation options.

Evaluate and prioritise adaptation options.

Adaptation options are evaluated and prioritised.

Manager Business Risk Dec 2017

A11 3.3 Documenting actions

Document actions into the review of this management plan.

Adaptation options are documented into this plan.

Manager Business Risk Mar 2018

A12 4.2 Embedding plan into investment decision making processes

Integrate and embed climate change considerations in all decision making processes.

CAPEX MCA and other investment decision processes that factor carbon emission impacts are embedded.





Part 2 Part 2 Part 2 Part 2 AdaptationAdaptationAdaptationAdaptation Action PlanAction PlanAction PlanAction Plan (continued)(continued)(continued)(continued) SerialSerialSerialSerial ChallengeChallengeChallengeChallenge ResponseResponseResponseResponse Output MeasureOutput MeasureOutput MeasureOutput Measure Who ByWho ByWho ByWho By By WhenBy WhenBy WhenBy When

A13 4.2 Embedding plan into investment decision making processes

Modify EGW’s risk and project management frameworks and ISES integrated risk decision tree to include climate change impacts and considerations.

Processes to factor carbon emissions impacts is embedded in our risk management process.


A14 5.1 Monitoring changes in the environment

Develop monitoring and review process that allows changes to the plan based on changes in our environment or risk context.

Monitoring and review process is developed.


A15 5.2 Extreme event analysis

Develop formal process for analysing specific ‘extreme climate’ events.

Process for analysing specific ‘extreme climate’ events is developed.


Part 3 Part 3 Part 3 Part 3 Community EngagementCommunity EngagementCommunity EngagementCommunity Engagement Action PlanAction PlanAction PlanAction Plan SerialSerialSerialSerial ChallengeChallengeChallengeChallenge ResponseResponseResponseResponse Output MeasureOutput MeasureOutput MeasureOutput Measure Who ByWho ByWho ByWho By By WhenBy WhenBy WhenBy When

CE1 Community engagement Issues relating to climate change embedded into EGW’s Community Engagement Strategy.

Community Engagement Strategy updated to incorporate climate change engagement initiatives

Communications Manager

Sep 2017




End of document

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