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  6. Off-farm Efficiency Program

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    • Off-farm Efficiency Program
    • On-farm emergency water infrastructure rebate scheme

Off-farm Efficiency Program

The Off-farm Efficiency Program is a $1.54 billion program designed to invest in infrastructure and provide water for the environment.

Projects funded under the program will provide long-term benefits to irrigators by improving infrastructure efficiency and benefit communities by increasing water security and creating jobs. They will also help us to reach our river health targets of returning 450 GL by June 2024.

Investing in water delivery infrastructure reduces water losses in the Murray–Darling Basin, providing benefits to water users and the community by sharing the water saved between water users and the environment.

It is funded through the Water for the Environment Special Account and includes:

  1. State Led Off-farm, with $1.33 billion available to Murray–Darling Basin states for delivery of eligible off-farm proposals.
  2. Off-farm Efficiency Grants Program, with $150 million available through the Australian Government’s Business Grants Hub to deliver project proponents’ eligible off-farm proposals (now closed).
  3. State Led On-farm, with $60 million available for Murray–Darling Basin state delivery of eligible on-farm proposals.

How Off-farm efficiency projects work

Transcript - How Off-farm efficiency projects work

How Off-farm efficiency projects benefit irrigators and the environment

Transcript - How Off-farm efficiency projects benefit irrigators and the environment

How can funding applications be made?

Applications for the state-led streams can be made through a Basin state government who will submit the application to us.

Applications for funding for the Off-farm Efficiency Grants Program closed on 27 May 2022.

Socio-economic test

Off-farm efficiency projects are required to have neutral or positive socio-economic impacts. The criteria is available for download. More information on the Ministerial Council meeting is available via the Murray–Darling Basin media centre.

Bridging the Gap

Along with recovering water for enhanced environmental outcomes, the Basin Plan requires water recovery to bring water use in the basin to a sustainable level. This is known as gap-bridging water. For further information visit Water recovery in the Murray-Darling Basin.

Infrastructure efficiency projects have and can contribute towards environmental water recovery. Where a water recovery target is yet to be achieved, a separate funding envelope exists for irrigation efficiency projects targeting gap-bridging water recovery. For further information contact waterefficiency@awe.gov.au

Download

The Off-farm Efficiency Program (PDF 1.7 MB)
The Off-farm Efficiency Program (DOCX 76 KB)

Efficiency Measures – Agreed Criteria (PDF 300 KB)
Efficiency Measures – Agreed Criteria (DOCX 12 KB)

If you have difficulty accessing these files, visit web accessibility for assistance.

Approved Off-farm Projects

Program summary (as of October 2022)

Total number of approved projects: 5

Total approved funding for projects: $346.97M

Total volume of water contracted to be recovered: 23.3 GL LTAAY

Progress on Murray-Darling Basin water recovery.

Approved projects

Goulburn Murray Water (GMW) Water Efficiency Project

Victoria’s Goulburn Murray Water - Water Efficiency Project was announced on 4 March 2021 as a successful project valued at $177.5 million, generating 15,900 ML LTAAY (long term average annual yield) of water recovery.

The GMW WEP was developed, assessed and submitted to the Australian Government before the closure of the Water Efficiency Program. It complies with the agreed socio-economic criteria.

The GMW efficiency project will deliver modernisation and rationalisation works across the Goulburn-Murray Irrigation District.

This project will save water while also improving service delivery by:

  1. modernising ageing water infrastructure and
  2. decommissioning old channels.

This project will offer an economic boost to northern Victoria, while also meeting Victoria's obligations under the Murray–Darling Basin Plan.

The project is expected to benefit about 1,000 customers by modernising or decommissioning more than 250 km of channels and upgrading or rationalising more than 1,000 outlets.

For more information visit Engage Victoria.

Download

Review of Goulburn Murray Water (GMW) Water Efficiency Project (PDF 613 KB)
Review of Goulburn Murray Water (GMW) Water Efficiency Project (DOCX 424 KB)

Record of Decision Goulburn Murray Water (GMW) Water Efficiency Project (PDF 381 KB)
Record of Decision Goulburn Murray Water (GMW) Water Efficiency Project (DOCX 198 KB)

If you have difficulty accessing these files, visit web accessibility for assistance.

NSW Murrumbidgee Irrigation Automation Finalisation Project

On 11 October 2022, a transfer of 2,427 ML LTAAY (2,790 ML conveyance entitlement) from Murrumbidgee Irrigation Ltd was registered to the Commonwealth as the first tranche of savings made through the NSW Murrumbidgee Irrigation Automation Finalisation Project. This transfer will be included in the department’s Murray–Darling Basin water recovery data after a reconciliation process has been conducted with the Murray–Darling Basin Authority and the Basin states.

The New South Wales Murrumbidgee Irrigation Automation Finalisation Project was announced on 17 January 2022 as a successful project under the state-led stream of the Off-farm Efficiency Program valued at $126.48 million.

The project will modernise and improve the infrastructure efficiency of the Murrumbidgee Irrigation Area through completing the automation of more than 360 control structures, replacing and converting 1,500 metered outlets, refurbishing and piping the remaining 20 kms of open channels, and constructing a new 5,000 ML surge reservoir.

The project will return 6,290 ML/y of water, to enhance the environmental outcomes of the Basin Plan, as Murrumbidgee Conveyance Entitlements (a high security water product delivering about 5,472 ML LTAAY).

This project will offer an economic boost to the Murrumbidgee Irrigation Area with a modern irrigation infrastructure network better able to meet customer needs and increasing regional productivity. The infrastructure improvements will allow Murrumbidgee Irrigation to better meet water orders with reduced water delivery travel times. This will provide additional water saving of 0.957 GL/y retained in the system. While this is a small water saving for the system, it will help overcome delivery challenges during adverse weather conditions, such as for the delivery of stock and domestic water and town water, especially in situations where water allocations may be low (during drier years).

Murrumbidgee Irrigation undertook stakeholder engagement in designing and developing the project and NSW has undertaken public consultation during its socio-economic assessment.

For more information visit NSW Planning, Industry & Environment.

Download

Review of MI Water Efficiency Project (PDF 885 KB)

Record of Decision MI Water Efficiency Project (PDF 386 KB)
Record of Decision MI Water Efficiency Project (DOCX 202 KB)

If you have difficulty accessing these files, visit web accessibility for assistance.

SA Marion Water Efficiency Project

The SA Marion Water Efficiency Project was announced on 7 July 2022 under the Off-farm state-led stream of the Off-farm Efficiency Program for $2.703 million. The project will generate 126.56 ML LTAAY of water recovery.

This project will substitute the River Murray water used for open space irrigation in metropolitan Adelaide with treated stormwater from an existing scheme at Oaklands Park by:

  1. extending the existing supply network with around 10km of pipe to transport recycled stormwater to the irrigation sites
  2. installing a new tank, aquifer injection system and recovery bore for additional above and below ground storage
  3. installing new pumps to meet pressure requirements
  4. implementing water treatment facilities to ensure water is of sufficient quality to meet future demands.

The infrastructure improvements will result in a positive contribution to the Government of South Australia’s wider integrated water policy strategy, benefits include providing a diversified water supply to support greening and cooling in the City of Marion. The project will support the environment by harvesting stormwater away from the Gulf of St Vincent at Glenelg, improving coastal water quality and sea grass habitat.

The Marion Water Efficiency Project is a pilot for potential future projects and funding arrangements. Further efficiency measures projects in other local government areas may be brought forward for funding under the Off-farm Efficiency Program. This project will also provide a pilot for how water saved in metropolitan Adelaide can contribute towards Murray—Darling Basin Plan water recovery arrangements.

For more information visit SA Department of Environment and Water.

Download

Record of Decision SA Marion Water Efficiency Project (PDF 375 KB)
Record of Decision SA Marion Water Efficiency Project (DOCX 821 KB)

Review of SA Marion Water Efficiency Project (PDF 309 KB)
Review of SA Marion Water Efficiency Project (DOCX 334 KB)

If you have difficulty accessing these files, visit web accessibility for assistance.

Lower Murray Water (LMW) Water Efficiency Project

Victoria’s Lower Murray Water - Water Efficiency Project was announced on 7 July 2022 as a successful project for funding under the Off-farm state-led stream of the Off-farm Efficiency Program for $37.9 million. The project will generate 2500 ML LTAAY of water savings with 1800 ML LTAAY towards the 450 GL environmental water target under the Basin plan and the remaining to be shared between First Nations Peoples and securing urban water supply.

The LMW Project builds on the success of the previous Sunraysia modernisation projects to further support agricultural production, provide stimulus for the regional economy, and the environment. The project will achieve water savings by upgrading 27km of outdated irrigation channel network and 700 stock and domestic outlets will be decommissioned or replaced with modern meters.

The project will provide benefits for the local community and region including procurement of local labour and supplies, and the creation of 110 jobs that will contribute to the economic value of the region.

For more information visit Engage Victoria.

Download

Record of Decision LMW Water Efficiency Project (PDF 342 KB)
Record of Decision LMW Water Efficiency Project (DOCX 813 KB

Review of Lower Murray Water (LMW) Water Efficiency Project (PDF 1.91 MB)
Review of Lower Murray Water (LMW) Water Efficiency Project (DOCX 359 KB)

If you have difficulty accessing these files, visit web accessibility for assistance.

NSW Nap Nap Station Water Efficiency Project

NSW Nap Nap Station Water efficiency project was announced on 26 August 2022 as a successful project for funding under the Off-farm Efficiency program for $2.39 million. The project will generate 300 ML LTAAY of water savings with 143.6 ML LTAAY recovery towards the 450 GL environmental water target under the Basin plan.

The project will improve water delivery efficiency, provide economic benefits to the local community, and increase bushfire firefighting capability in the local area by:

  • replacing 45 km of open channels used for Stock and Domestic purposes with pipes and extend the network with an additional 40 km of pipe 
  • installing two stock and domestic pump stations 
  • installing 31 tanks and 37 new troughs 
  • installing of tank fittings compatible with the New South Wales (NSW) Rural Fire Service. 

The Project proposes eligible activities which will provide economic benefits to the local economy with over 80 per cent of capital expenditure projected to flow to local contractors and suppliers.

Download

Record of Decision Nap Nap Station Water Efficiency Project (PDF 400 KB)
Record of Decision Nap Nap Station Water Efficiency Project (DOCX 203 KB)

Review of Nap Nap Station Water Efficiency Project (PDF 146 KB)
Review of Nap Nap Station Water Efficiency Project (DOCX 747 KB)

If you have difficulty accessing these files, visit web accessibility for assistance.

How we value water

When assessing projects under the Off-farm Efficiency Program a consistent and reliable approach is applied for determining the market value of eligible water access entitlements. The approach supports the Program by:

  1. Establishing the market value for each eligible water right that reflects contemporary market prices and recognises changes in market conditions
  2. informing the department’s value for money assessment for a project, of which the return of eligible water entitlements makes up part of the assessment.

Download

Off-Farm Efficiency Program – Market valuation approach (PDF 544 KB)
Off-Farm Efficiency Program – Market valuation approach (DOCX 444 KB)

If you have difficulty accessing these files, visit web accessibility for assistance.

Monitoring, Evaluation, Reporting and Improvement Framework

The program will use a Monitoring, Evaluation, Reporting and Improvement Framework. The framework assesses the program against planned short, medium and long-term results.

The framework allows for investment changes throughout the program at key decision points. This improves how the program is designed and carried out.

The framework focuses on learning, improvement, and accountability. It will be reviewed and updated to follow any changes to policy or program direction.

Download

Off-farm Efficiency Program MERI (PDF 636 KB)
Off-farm Efficiency Program MERI (DOCX 1.08 MB)

If you have difficulty accessing these files, visit web accessibility for assistance.

Stocktake of off-farm infrastructure concept proposals

In November 2020, the Murray–Darling Basin Ministerial Council considered a list of off-farm infrastructure concept proposals that could address water losses, provide regional stimulus, and/or contribute to agricultural productivity. Proposals that do not generate water savings are not eligible for funding through the Water for the Environment Special Account.

The following list is provided with the consent of proponents.

Stocktake proposals

The department is working with Basin states to bring forward developed proposals and seek funding for those that meet the criteria through the Off-farm Efficiency Program. Refer to Approved projects for a list of current projects under the Program.

Read our full list.

Download

Document File size
Stocktake list PDF 181 KB
Stocktake list DOCX 93 KB

If you have difficulty accessing these files, visit web accessibility for assistance.

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Last updated: 24 November 2022

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