• continuing to deliver agreed water reforms under the National Water Initiative, the COAG national water reform agenda, the Water Act 2007 and the 2008 Intergovernmental Agreement on Murray-Darling Basin Reform

In addition to the specific progress listed below, on the National Hydrologic Modelling Platform, the National Water Knowledge and Research Platform, and the National Water Market System, the department worked closely with jurisdictions to deliver the following key results:

• the National Framework for Compliance and Enforcement Systems for Water Resource Management was launched in June 2012, with all state and territory governments having signed up to the Framework
• COAG agreed in early April 2012 to establish an Assessment Framework for sustainable water extraction, and a biennial Water Planning Report Card.

Significant progress was made in 2011-12 in the delivery of national water reform:

• Development of the Murray-Darling Basin Plan (the Basin Plan) is a key reform aimed at ensuring a healthy river system, strong communities and sustainable food production in the Murray-Darling Basin. The department assisted in the process by chairing the Basin Officials Committee and other associated Commonwealth-Basin State Forums. The department also assisted the minister as chair of the Murray-Darling Basin Ministerial Council and associated meetings at ministerial level.

• providing funding for urban and rural community water infrastructure and adopting, developing and publicising new technologies to improve water use efficiency and ensure greater water security

• funding communities and irrigation providers to update their water management plans and upgrade on-farm and off-farm irrigation infrastructure to support efficient water management, with water savings shared between irrigators and the environment

As at 30 June 2012 under the Sustainable Rural Water Use and Infrastructure Program, $4.74 billion was committed to infrastructure projects nationally.

During 2011-12 the Australian Government announced infrastructure investments totalling around $2 billion.

• delivering on the Australian Government's commitment to ‘bridge the gap’ between the Sustainable Diversion Limits to be included in the Basin Plan and existing diversions of water by recovering water for the environment through investment in infrastructure and water purchases

As at 30 June 2012, investments made through the Restoring the Balance in the Basin ($2.3 billion) and the Sustainable Rural Water Use Infrastructure program ($2.2 billion) for water infrastructure projects recovered 1358 gigalitres (long-term average annual yield) towards bridging the gap to the sustainable diversion limit under the Basin Plan.

• continuing to work with states, territories, landowners and community groups to improve the management of the nation's rivers, wetlands and freshwater ecosystems

The department was an active participant in community consultations on the draft Basin Plan, and worked closely with Basin jurisdictions towards an agreed approach to Murray-Darling Basin reform (Basin reform) and its implementation. The department consulted closely with Basin states, irrigation industry partners, landholders and community groups in progressing key Water for the Future initiatives, including investment in more efficient irrigation infrastructure, potential for new environmental works and measures, water recovery and delivering environmental water to the Murray-Darling Basin's iconic rivers and wetlands.

• the Commonwealth Environmental Water Holder:
  • continuing to build and manage a water portfolio that protects the health of nationally and internationally significant waterways and wetland ecosystems
  • providing outcome and annual reports on watering actions undertaken

• helping urban communities and businesses use water resources more efficiently and better secure their water supply by investing with states and territories in upgraded infrastructure.

The Commonwealth added $391 million , from the National Urban Water and Desalination Plan and the National Water Security Plan for Cities and Towns, to investments by state and territory governments to upgrade water infrastructure and better secure the supply of water to business, urban and remote Indigenous communities. This included: funding for the Adelaide Desalination Plant (South Australia); retrofitting of household fittings in the Kimberley region (Western Australia); the fitting of water meters (Tasmania) and stormwater harvesting and re-use in several capital cities. The Commonwealth's investment in these types of projects since 2007 totals $613 million .

• The department will also support key bilateral country partners to improve their water management and will promote Australia's interests in international bodies. The department will host one inward visit by a significant bilateral international partner each year.

The department hosted a number of international delegations during 2011-2012, including a senior United States Environmental Protection Agency delegation in August 2011. A key outcome of this meeting was the development of a program of work for future cooperation on water issues. The department also participated in a high-level water policy meeting in Beijing, China, where our mutual water issues were discussed and future water collaboration was agreed.

In 2011-12, the department will also:

• establish new funding arrangements for adopting the National Hydrological Modelling Strategy

In May 2012 the department established a new funding arrangement to adopt the Source Model as the COAG National Hydrologic Modelling Platform (formerly the National Hydrological Modelling Strategy) with eWater Limited. This arrangement will provide national consistency in water resource planning by integrating the economic and environmental uses of water for cities, irrigation, industry, mining, wetlands and waterways.

Commonwealth funding to implement the platform to June 2015 was matched by participating states and territories.

• advise the Australian Government on the Response to National Water Commission 2011 Review of National Water Initiative

The independent COAG Review of the National Water Commission conducted by Dr David Rosalky and commissioned by the department was tabled in Parliament on 14 March 2012. On 13 April 2012 the Australian Government obtained COAG's agreement to continue the National Water Commission for the life of the National Water Initiative, with the functions of audit, assessment and monitoring of national water reforms. The National Water Commission Amendment Bill 2012 was passed by Parliament on 21 June 2012, giving effect to that decision.

• finalise the National Water Knowledge and Research Plan

The National Water Knowledge and Research Platform, prepared after extensive discussions with states and the research community, was finalised by the COAG Standing Council for Environment and Water.

• provide materials to supplement the national water planning guidelines

The National Water Initiative policy guidelines for water planning and management (water planning guidelines) were agreed by COAG out of session in early April 2012. Case studies to support the guidelines have been agreed by all jurisdictions and will be made available on the department's website once the water planning guidelines are published on the COAG website.

• complete the tender for and contract a partner to deliver the National Water Market System (NWMS)

Following extensive industry and state and territory consultation, the department went to market to engage a partner to design, build and implement the NWMS.

There was a high level of interest shown in the request for tender process, which led to a number of highly innovative solutions being offered.

The department identified a preferred tenderer and contract negotiations commenced in 2011-2012.

• deliver a national report on Australia's implementation of the Ramsar Convention to the 11th Conference of the Contracting Parties to the Ramsar Convention (CoP 11)

Australia's national report to CoP 11 was submitted to the Ramsar Secretariat. The report can be found on the department's website:
<www.environment.gov.au/water/publications/environmental/wetlands/national-report-cop11.html>.

• develop a National Wetlands Policy Statement

A draft National Wetlands Policy Statement was progressed, in consultation with the Australian, state and territory governments. It is expected the draft statement will be released for public comment during 2012-13.

• complete a Review of National Water Quality Management Strategy

An independent review of the National Water Quality Management Strategy was completed and is available on the department's website at
<http://environment.gov.au/water/publications/quality/water-quality-final-report.html>.

• provide timely advice on all relevant Environment Protection and Biodiversity Conservation Act (EPBC Act) referrals.

Advice was provided on Ramsar Wetlands for 91 referrals, thereby assisting the department to meet its legislative timeframes under the EPBC Act.

In 2013-14 the department will review and report on the progress of Australian governments' progress in developing national guidelines to identify and classify High Ecological Value Aquatic Ecosystems (HEVAE).

The department reviewed and reported to the COAG Water Reform Thematic Oversight Group on the progress of the development of national guidelines to identify and classify HEVAE.

Establish an Interim Independent Expert Scientific Committee that:

• improves the science base in relation to the interaction of coal seam gas and large coal mining developments and water resources by advising on priorities and overseeing research on these issues
• provides Commonwealth and state governments with expert scientific advice relating to coal seam gas and large coal mining development proposals that may have a significant impact on water resources.

In absence of a statutory committee that could only be established after the passing of legislation, the Interim Independent Expert Scientific Committee on Coal Seam Gas and Coal Mining (interim committee) was established on 17 January 2012.

The role of the interim committee is to:

• provide advice to governments on coal seam gas and coal mining projects
• advise on research priorities and priority areas for bioregional assessments
• oversee research and bioregional assessment.

Since the interim committee's establishment it has held six committee meetings and two workshops.

Introduce amendments to the EPBC Act to establish a statutory advisory role for the committee on coal seam gas and large coal mines.

On 22 March 2012 the Minister for Sustainability, Environment, Water, Population and Communities, the Hon. Tony Burke MP, introduced legislative amendments to the EPBC Act to establish an Independent Expert Scientific Committee to provide advice on coal seam gas and large coal mining developments.

Commission, on behalf of the committee, expert scientific studies related to coal seam gas and coal mining and their impacts on water resources.

The interim committee identified six key knowledge gap themes and recommended 27 priority research projects to assess the impacts of coal seam gas and coal mining on water resources and their associated environmental values.

The six research themes identified are:

• planning and management
• aquifer contamination
• aquifer integrity
• aquatic health
• groundwater and surface water processes
• health and industry.

This research aims to improve the information base on which future planning and environmental decisions are made by federal, state and territory governments.

The interim committee initiated actions that commenced data collection for bioregional assessments which will provide better information for decision makers to ensure protection of water resources.

Research findings will be made publicly available on the interim committee's website
<www.environment.gov.au/coal-seam-gas-mining/index.html>.

Develop a communications package (including a dedicated website, publications and other communications materials) to inform key stakeholders and the community about the role of the interim committee and the results of their research.

A website for the interim committee was established in April 2012 and will be updated for the statutory committee when it is established.

Establish a National Partnership Agreement with the states, through COAG, committing governments to take into account the advice of the committee in their assessment and approval decisions.

A National Partnership Agreement on Coal Seam Gas and Large Coal Mining Development was established through negotiations with relevant state and territory governments. The agreement commits the Australian Government and relevant state and territory governments to taking the advice of the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development into account in their regulatory decisions.

percentage of agreed share of water savings from funded on-farm and off-farm irrigation efficiency projects that are returned to the Commonwealth [%].

As at 30 June 2012, 100% of the agreed Commonwealth share of water savings from funded on-farm and off-farm irrigation efficiency projects have been returned to the Commonwealth.

Centres of Excellence for recycling and desalination fully functional.

Both centres are functioning well and are accelerating ground breaking research in the areas of water recycling and desalination. In 2011-12 the Water Recycling Centre provided $6.3 million to finalise or commission nine projects and the Desalination Centre provided $12.3 million in funding for 44 research projects.

Alternative sources of urban water provided through projects [gigalitres].

Alternative sources of urban water secured under the Strengthening Basin Communities program, the National Urban Water and Desalination Plan, and the National Water Security Plan for Cities and Towns was 106.3 gigalitres to the end of 2011-12.

On target to meet the total volume of alternative sources of urban water secured from these programs when all contracted projects are complete in January 2014.

Water savings from urban programs and projects that aim to promote the efficient use of water [gigalitres].

Water savings from the Strengthening Basin Communities program, the National Urban Water and Desalination Plan, and the National Water Security Plan for Cities and Towns was 7.5 gigalitres to the end of 2011-12.

The total volume of water savings from the program when all contracted projects are complete in January 2014 will be 60 gigalitres.

Expert Scientific Committee meetings held.

The department managed six interim committee meetings during the period 1 January 2012 to 30 June 2012.

Research projects commenced within 60 days of approval by the minister [%].

Bioregional assessments through the commencement of data collections and 23 key knowledge gap research projects were all commenced within 60 days of approval by the minister.

Information on the research projects can be found on the committee's website
<www.environment.gov.au/coal-seam-gas-mining/index.html>.

From 2011-12 onwards, the department will:

• recover water through infrastructure and buyback programs to reduce the gap between current diversions and the Sustainable Diversion limits that will be included in the Basin Plan

Recoveries contributing towards ‘bridging the gap’, as at 30 June 2012 in long-term average annual yield, include 1087 gigalitres from Restoring the Balance in the Basin water purchases and 271 gigalitres from the Sustainable Rural Water Use and Infrastructure Program. Total gap-bridging water recovery is 1522 gigalitres, which includes 164 gigalitres of state government and other recoveries. This is 55 % of the proposed 2750 gigalitre reduction in surface water diversions in the Murray-Darling Basin.

• report demonstrable environmental benefits from environmental watering in the Commonwealth Environmental Water Holder's Annual Report and Outcomes Reports

Please refer to the Commonwealth Environmental Water Holder Annual Report in this chapter and the 2010-11 Commonwealth Environmental Water Holder Outcomes Report published in February 2012.

The 2011-12 Commonwealth Environmental Water Holder Outcomes Report will be published by early 2013.

• improve the implementation of the Ramsar Convention in Australia.

The department progressed development of:

• Australian Ramsar site nomination guidelines
• wetland fact sheets
• guidance on the wise use of wetlands
• the national wetlands policy statement.

The pilot of the Ramsar Rolling Review was completed.

Preparations for Conference of the Parties 11, in July 2012, were undertaken.

By 31 December 2012 the department will promulgate effective national water planning guidelines.

The National Water Initiative policy guidelines for water planning and management were agreed by COAG, out of session, in early April 2012.

In 2013-14, the department will conduct a review of bilateral partners' take-up of Australian water management innovations.

The department commenced a review of its water-related international strategy, which includes analysis of the strategic relevance and mutual benefit gained from bilateral engagements.

By 2014, improvements to the water market in the Murray-Darling Basin will include:

• the removal by states of administrative barriers to trades

• completion of 90% of allocation trades in five days

The department continues to work with state and territory governments within the Murray-Darling Basin to ensure that these standards continue to be met consistently by all jurisdictions.

• availability to the market of 95% of prices within 24 hours of registration.

The Bureau of Meteorology (BoM) collects information about prices for water trades from state and territory approval authorities and some irrigation infrastructure operators. Price information received from the BoM is publicly available on the National Water Market System website in an accessible format.

The department is leading a project to improve pricing transparency through a subgroup of the National Water Thematic Oversight Group, which includes representatives from states and territories. The project is expected to identify possible actions to improve the quality and quantity of price information available to market participants.

The department also publishes information about average prices of offers pursued from tenders conducted since January 2010, which are updated as soon as possible after each tender.

In 2015, quantitative and qualitative evidence of additional urban water will be provided by an independent report.

Appropriate data was captured in 2011-12 and preceding years to enable the provision of this report.

By 2017 the department will have agreed with Australian governments' national guidelines for identifying, classifying and managing the High Ecological Value Aquatic Ecosystems (HEVAE).

Guidelines have been developed for the identification and classification of HEVAE. These are currently subject to approval by the Australian, state and territory governments.

Relevant states have signed the National Partnership Agreement.

Queensland, New South Wales, South Australia and Victoria have signed the National Partnership Agreement on Coal Seam Gas and Large Coal Mining Development. Negotiations with the Northern Territory are continuing.

The agreement commits signatories to:

• seek advice from the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development (statutory committee) on coal seam gas or large coal mining developments which are likely to have a significant impact on water resources
• take account of the statutory committee's advice in a transparent manner
• publish protocols on which projects will be referred to the statutory committee by 30 September 2012.

Expert Scientific Committee advice provided on specific development proposals.

The interim committee received 11 requests for advice on coal seam gas and coal mining development proposals under the EPBC Act. As at 30 June 2012, the interim committee had provided advice on eight of the proposals.

Development of a research strategic plan for 2011-12.

The interim committee developed a Strategic Framework which incorporates the research methodology for research projects commissioned by the interim committee.

percentage increase in irrigation water use efficiency through funded off-farm irrigation projects [%].

Australian Government funding provided for off-farm supply system upgrade projects has contributed to an average increase of around 10% in delivery efficiency, ranging between 2% and 29% depending on the irrigation system.

This investment in projects within the Murray-Darling Basin is enabling irrigation delivery systems to achieve overall efficiencies equivalent to world best for channel delivery systems.

percentage increase in irrigation water use efficiency through funded on-farm irrigation projects [%].

Australian Government funded on-farm irrigation projects have an estimated average increase in irrigation water use efficiency of 26%.

percentage of irrigation entitlements by volume covered under Modernisation Irrigation plans in the Murray-Darling Basin [%].

Met target. The majority of medium to large irrigation water providers in the Murray-Darling Basin now have strategic infrastructure and/or modernisation irrigation plans.

percentage of local government authorities in the Murray-Darling Basin undertaking funded water management planning [%].

Met target. A total of 108 (71%) local government authorities in the Murray-Darling Basin are participating in projects to undertake water management planning.