Understanding geothermal regulation in New Zealand: A day in the life of the regulator

Abstract

The Bay of Plenty’s geothermal systems are managed by the Bay of Plenty Regional Council under the Resource Management Act 1991 (RMA). The council manages geothermal through its various policy documents. These are developed through a consultative process and within legal requirements. It lays out our approach to management, and the requirements and obligations that must be met for the use of the geothermal resource. It is our contract with the community.
Policy implementation is often where the success of this approach will be decided. Regional policies and rules lay out consenting pathways, and the suite of consent conditions to be expected. These conditions are usually agreed preconsenting, or through a hearing process and can be upheld through a Court of law, including via enforcement action. On the surface it might appear a ‘big stick’ approach - and it can be. But our methods are also non regulatory, including guidelines, education, and incentives.
Implementation therefore involves a careful balancing act, working closely with resource users who are part of the community, and have distinct obstacles and challenges. Companies that are owned by iwi have another level of scrutiny and are accountable to their people.
Consent and compliance processes differ hugely depending on the geothermal system. In development systems like Kawerau, consent conditions are prescriptive and consent holders are well resourced to meet consent conditions. In systems like Rotorua, small users have relatively high compliance costs with limited resources or knowledge. This presents unique challenges, and a different regulatory approach. This paper will explore some examples of compliance practices in the Bay of Plenty Region.