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SOUTH EAST QUEENSLAND WATER (RESTRUCTURING) AND OTHER LEGISLATION AMENDMENT ACT 2012 No. 39 - SECT 51

51 Replacement of ch 2A, pts 2 to 7

Chapter 2A, parts 2 to 7—

omit, insert—

'(1) A regulation may designate a part of the state other than the SEQ region as a designated region for this part.

'(2) Before recommending the making of a regulation under subsection (1), the Minister must—

(a) have regard to—
(i) the geography, society and economy of the proposed designated region; and
(ii) water users and potential water users in the proposed designated region; and
(b) consider options for achieving water security for the proposed designated region; and
(c) consult with each local government whose local government area is wholly or partly in the proposed designated region.

'(3) The Minister may carry out the consultation in any way the Minister considers appropriate.

'(1) This section applies if there is more than 1 water service provider for a designated region.

'(2) A regulation may nominate 1 or more of the water service providers as a water service provider (a nominated water service provider) for the designated region or a part of the region for this part.

'(1) A regulation may prescribe—

(a) the desired level of service objectives for water security for the SEQ region, or part of the SEQ region; or
(b) the desired level of service objectives for water security for a designated region, or part of the designated region.

'(2) The Minister may recommend to the Governor in Council a regulation under subsection (1) only if the Minister is satisfied sections 345 and 346 have been complied with for the regulation.

'(3) However, the Minister may recommend to the Governor in Council a regulation under subsection (1) that is only to correct a minor error or make another change that is not a change of substance even though only section 345 has been complied with for the regulation.

'(4) Without limiting subsection (1), the desired level of service objectives for water security include the duration, frequency and severity of water restrictions that may be expected by end users of the water.

'(1) Before a regulation is made under section 344 to prescribe the desired level of service objectives for water security for the SEQ region, a designated region or a part of the SEQ region or a designated region, the chief executive must publish a notice about the regulation.

'(2) The notice must state the following—

(a) that the desired level of service objectives for water security (the proposed desired level of service objectives) are to be prescribed;
(b) the region or the part of the region for which the proposed desired level of service objectives for water security are to apply;
(c) a description of the proposed desired level of service objectives;
(d) that written submissions may be made by any entity about the proposed level of service objectives;
(e) the day by which submissions must be made and the person to whom, and the place where, the submissions must be made.

'(3) The day stated under subsection (2)(e) must not be earlier than 28 business days after the day the notice is published.

'(4) The chief executive must give a copy of the notice to the following—

(a) if the proposed desired level of service objectives are for the SEQ region or part of the SEQ region—the bulk water supply authority;
(b) if the proposed desired level of service objectives are for a designated region or part of a designated region—
(i) if there is a nominated water service provider for the region—the nominated water service provider; or
(ii) otherwise—each water service provider for the designated region.

'(5) The chief executive may—

(a) give a copy of the notice to any other entity the chief executive considers appropriate; and
(b) publish a copy of the notice on the department's website.

'(1) The chief executive must consider all properly made submissions about the proposed desired level of service objectives.

'(2) If, after considering all properly made submissions, the chief executive is satisfied that the proposed desired level of service objectives should be revised, the chief executive may revise the proposed desired level of service objectives (the revised proposed objectives).

'(3) If the chief executive decides to revise the proposed desired level of service objectives, section 345 and subsections (1) and (2) apply in relation to the revised proposed objectives as if a reference in the section or subsections to the proposed desired level of service objectives were a reference to the revised proposed objectives.

'(4) However, this section does not apply to a regulation to amend the desired level of service objectives for water security if the amendment is only to correct a minor error or make another change that is not a change of substance.

'(1) If a regulation prescribes desired level of service objectives for water security for the SEQ region, a designated region or a part of the SEQ region or a designated region, the chief executive must prepare a report about the desired level of service objectives for water security for the region or the part of the region.

'(2) The report must include—

(a) a summary of issues raised in properly made submissions about the desired level of service objectives; and
(b) a summary of how the issues raised in the submissions have been addressed by the chief executive.

'If a regulation prescribes desired level of service objectives for water security, the chief executive must review the objectives at least every 5 years.

'In this division—

designated water security entity means—

(a) the bulk water supply authority; or
(b) a water service provider required to have a water security program under section 351 or 352.

'The bulk water supply authority must have a water security program complying with section 353 to facilitate the achievement of the desired level of service objectives for water security for the SEQ region or each part of the SEQ region.

Maximum penalty—1665 penalty units.

'A nominated water service provider for a designated region or part of a designated region must have a water security program complying with section 353 to facilitate the achievement of the desired level of service objectives for water security for the designated region or the part of the designated region.

Maximum penalty—1665 penalty units.

'(1) This section applies if there is no nominated water service provider for a designated region.

'(2) A water service provider for the designated region or part of the designated region must have a water security program complying with section 353 to facilitate the achievement of the desired level of service objectives for water security for the designated region or the part of the designated region.

Maximum penalty—1665 penalty units.

'(1) A water security program must include information about a designated water security entity's arrangements, strategies or measures for—

(a) operating the designated water security entity's assets for providing water services in the region or part of the region to which the water security program relates; and
(b) addressing future infrastructure needs, including building new infrastructure or augmenting existing infrastructure; and
(c) managing the infrastructure relevant to the designated water security entity's operations; and
(d) managing demand for water; and
(e) responding to drought conditions; and
(f) any other matter prescribed under a regulation.

'(2) The chief executive may make guidelines to provide information and guidance to a designated water security entity about the content of a water security program.

'(3) Subsections (1) and (2) do not limit what may be included in a water security program.

'(4) A water security program may comprise 1 or more existing documents that comply with the requirements of this section.

'A designated water security entity must prepare a draft water security program.

'(1) In preparing the draft water security program, the designated water security entity must make reasonable endeavours to consult with each of the designated water security entity's customers likely to be affected by the water security program.

'(2) A failure to comply with subsection (1) does not invalidate or otherwise affect the program.

'(1) After preparing the draft water security program, the designated water security entity must give the chief executive the draft water security program.

'(2) The chief executive must review the draft water security program and decide whether to recommend changes to the draft water security program.

'(3) If the chief executive decides not to recommend changes, the chief executive must give the designated water security entity notice of the decision within 30 days after receiving the draft water security program.

'(1) This section applies if the chief executive decides to recommend a change, other than a change to correct a minor error or another change that is not a change of substance, to the draft water security program.

'(2) Within 30 days after receiving the draft water security program, the chief executive must give the designated water security entity notice of the decision and request it to—

(a) consider, or further consider, any matter and deal with the matter in the draft program; and
(b) revise the draft program in the light of its consideration or further consideration.

'(3) Within 14 days after receiving the notice, the designated water security entity must consider the request and decide whether to revise the draft program.

'(4) If the designated water security entity decides to revise the draft water security program, the designated water security entity must prepare a revised draft water security program within 14 days after making the decision.

'(5) If the designated water security entity prepares a revised draft water security program, section 356 and this section apply—

(a) as if a reference in the subdivision to a draft water security program were a reference to the revised draft water security program; and
(b) with any other necessary changes.

'(6) If the designated water security entity decides not to revise the draft water security program, the designated water security entity must, within 14 days after making the decision, give the chief executive notice of the decision and the reasons for the decision.

'(1) This section applies if—

(a) the chief executive gives the designated water security entity a notice under section 356(3); or
(b) the designated water security entity gives the chief executive a notice under section 357(6).

'(2) The designated water security entity may finalise the water security program.

'(3) As soon as practicable after finalising the water security program, the designated water security entity must publish the program on its website.

'(4) The water security program does not have effect until it is published under subsection (3).

'(5) Despite subsection (3), the designated water security entity may decide not to publish or allow inspection of any part of the water security program the designated water security entity is reasonably satisfied contains sensitive security information.

'(1) A designated water security entity must review its water security program at least every 5 years.

'(2) The designated water security entity must also review its water security program if there is a significant change in any matter affecting, or likely to affect, the achievement of the desired level of service objectives for water security.

'(1) A designated water security entity may amend its water security program.

'(2) The designated water security entity must amend its water security program if—

(a) the designated water security entity considers it reasonably necessary to amend the program as a result of a review under section 348; or
(b) the chief executive directs the designated water security entity to amend the program.

'(1) For amending a water security program, subdivision 3 applies—

(a) as if a reference in the subdivision to a draft water security program were a reference to the draft amendments of the water security program; and
(b) with any other necessary changes.

'(2) However, subsection (1) does not apply if the amendment is only to correct a minor error in the water security program or make another change that is not a change of substance.

'(1) This section applies to a designated water security entity if the entity has a water security program for the SEQ region, a designated region or part of the SEQ region or designated region.

'(2) Despite the Water Supply Act, section 123, the designated water security entity is not required to have a drought management plan under that Act for the region or the part of the region.

'In this part—

agreement amendment see section 360H(2).

bulk services means each of the following—

(a) a water service or a part of a water service;
(b) a service relating to the supply of water.

bulk water customer means—

(a) an SEQ service provider; or
(b) an entity declared under a regulation to be a bulk water customer for this part.

bulk water party means—

(a) a bulk water customer; or
(b) an SEQ bulk supplier.

bulk water supply agreement see section 360G(1).

bulk water supply code see section 360M(1).

code-regulated entity means—

(a) a bulk water party; or
(b) an entity declared under a regulation to be a code-regulated entity for this part.

emergency plan means a plan of a type the bulk water supply code states is required to be made by a code-regulated entity for an emergency related to water.

mandatory term see section 360G(2)(a).

SEQ bulk supplier means—

(a) the bulk water supply authority; or
(b) an entity declared under a regulation to be an SEQ bulk supplier for this part.

'This part provides for the following to optimise the efficient and reliable supply of water for the SEQ region—

(a) the preparation of agreements for the supply of bulk services between SEQ bulk suppliers and bulk water customers;
(b) the making of a code to—
(i) decide costs and prices; and
(ii) regulate the way in which entities supply bulk services.

'This part applies to bulk services whether or not the bulk services are supplied in the SEQ region.

'(1) For this part, the chief executive may give the bulk water supply authority a notice requiring information about 1 or more of the following—

(a) demand for bulk services from bulk water customers;
(b) operating arrangements for the authority's assets or infrastructure;
(c) the costs or revenue of the authority for bulk services;
(d) other information the chief executive reasonably requires for the administration of this part.

'(2) The notice—

(a) may be given at any time; and
(b) must state the reasonable time by which the information must be given to the chief executive; and
(c) may require the information for 1 or more of the following—
(i) a particular period of time;
(ii) each bulk water customer or class of bulk water customer;
(iii) a local government area or part of a local government area.

'(3) The bulk water supply authority must comply with the notice, unless it has a reasonable excuse.

Maximum penalty—200 penalty units.

'(1) The Minister may make a document (a bulk water supply agreement), in the form of a contract, providing for the supply of bulk services, stated in the document, between an SEQ bulk supplier, named in the document, and a bulk water customer, named in the document.

'(2) A bulk water supply agreement may include—

(a) terms that must not be amended (each a mandatory term); and
(b) terms that may be amended by the bulk water parties named in the agreement.

'(3) A bulk water supply agreement has effect as a contract between each bulk water party named in the agreement on the day the agreement is made by the Minister.

'(4) A bulk water supply agreement has effect as a contract whether or not—

(a) it is executed by each bulk water party named in the agreement, other than to the extent an amendment to the agreement must be executed under section 360H; or
(b) an amount payable for the supply of bulk services is provided for under the agreement.

'(1) A bulk water party for a bulk water supply agreement may amend the agreement, including by adding a term to the agreement, to the extent the amendment does not conflict with a mandatory term of the agreement.

'(2) An amendment to a bulk water supply agreement (an agreement amendment) must be—

(a) executed by each bulk water party for the agreement; and
(b) given to the Minister as soon as practicable after the amendment has been executed.

'(3) An agreement amendment takes effect on the day it is executed under subsection (2)(a).

'(1) The Minister may direct a bulk water party for a bulk water supply agreement to change an agreement amendment if the Minister considers the agreement amendment conflicts with a mandatory term of the bulk water supply agreement.

'(2) Before giving a direction under subsection (1), the Minister must—

(a) within 2 months after the day the Minister receives the agreement amendment, give each bulk water party for the bulk water supply agreement a notice stating—
(i) the reasons why the Minister considers the agreement amendment conflicts with a mandatory term; and
(ii) that the bulk water party may, within the period of at least 10 business days stated in the notice, make a submission to the Minister about the agreement amendment and the reasons mentioned in subparagraph (i); and
(b) consider any submissions made by a bulk water party under paragraph (a).

'(3) If the Minister gives a direction under subsection (1), the agreement amendment is taken never to have had effect.

'A bulk water party must comply with a direction given to it by the Minister under section 360I.

Maximum penalty—1665 penalty units.

'The chief executive must keep a copy of each agreement and each agreement amendment made under this part, as in force from time to time.

'(1) A bulk water party is not civilly liable to another bulk water party (a relevant entity) for any consequential loss suffered by the relevant entity arising out of, or in relation to, an act or omission, including a negligent act or omission, of the bulk water party in the performance of, or in a failure to perform, its functions under this Act or its obligations—

(a) other than to the extent that the consequential loss was caused, or contributed to, by the wilful default of the bulk water party; or
(b) if the bulk water party recovers compensation from an entity in relation to the consequential loss suffered by the relevant entity—other than to the extent of the net compensation amount.

'(2) To remove any doubt, it is declared that—

(a) nothing in this section is taken—
(i) to create a cause of action against a bulk water party; or
(ii) to limit the liability of the bulk water party to an entity for a claim for personal injury suffered by the entity; and
(b) to the extent that an act or omission of a bulk water party is inconsistent with a contract, in force immediately before the commencement of this section, to which the bulk water party and a relevant entity are parties, the bulk water party's liability to the relevant entity is limited by subsection (1).

'(3) A bulk water party may, in a contract, expressly vary or exclude the operation of subsection (1) in relation to the liability of the bulk water party to another party to the contract.

'(4) Subsection (1) does not apply to a bulk water party to the extent that a contract mentioned in subsection (3) expressly varies or excludes its operation in relation to the other party to the contract.

'(5) In this section—

consequential loss includes the following—

(a) any loss of anticipated or actual revenue or profits;
(b) loss of use of equipment;
(c) business interruption or a failure to realise anticipated savings;
(d) loss of data;
(e) downtime costs or wasted overheads;
(f) loss of goodwill or business opportunity;
(g) punitive or exemplary damages;
(h) any special or indirect loss or damage of any nature whatsoever.

function includes power.

net compensation amount, for compensation recovered by a bulk water party, means the compensation less an amount that represents any loss suffered by the bulk water party in relation to the consequential loss and any costs incurred in recovering the compensation.

obligations, of a bulk water party, means the bulk water party's obligations under the following—

(a) the bulk water supply code or operating protocols;
(b) a bulk water supply agreement in which the bulk water party is named as a party;
(c) an instrument made, or direction given, under the bulk water supply code or operating protocols.

operating protocols means the operating protocols made under the bulk water supply code.

perform includes purport to perform.

wilful default, by a bulk water party, includes—

(a) any fraudulent conduct, including concealment; and
(b) any criminal conduct; and
(c) any intentional or reckless breach of, or failure to remedy a breach of, the bulk water party's obligations.

'(1) Subject to subdivision 2, the Minister may make a code (the bulk water supply code) for the SEQ region about the supply of bulk services by a code-regulated entity.

'(2) The bulk water supply code applies to each code-regulated entity whether or not the entity supplies bulk services under a bulk water supply agreement.

'(3) The bulk water supply code is a statutory instrument under the Statutory Instruments Act 1992 but is not subordinate legislation.

'(1) The bulk water supply code may establish principles for deciding the following categories of costs and prices—

(a) the bulk water cost;
(b) the bulk water price;
(c) the other user price.

'(2) The bulk water cost is the cost for the bulk water supply authority to supply bulk services.

'(3) The bulk water price is the price the bulk water supply authority may charge an SEQ service provider for the supply of bulk services.

'(4) The other user price is the price the bulk water supply authority may charge a bulk water customer, other than an SEQ service provider, for the supply of bulk services.

'The bulk water supply code may include the following—

(a) the rights and obligations of a code-regulated entity under the code;
(b) operating requirements for a code-regulated entity;
(c) requirements to make or comply with an emergency plan;
(d) the principles for the supply of bulk services by an SEQ service provider to the bulk water supply authority, including the principles for the bulk water supply authority to pay a charge for the bulk services;
(e) provision for an entity to give advice to the Minister about—
(i) the principles mentioned in paragraph (d); or
(ii) costs or prices under the code; or
(iii) any other thing that may affect costs or prices under the code;
(f) the way in which an entity to which paragraph (e) applies may investigate a matter under the code;
(g) whether any part of the code may be amended without consultation;
(h) any other thing the Minister considers appropriate to facilitate the supply of bulk services.

'(1) The Minister must notify the making of the bulk water supply code.

'(2) The notice made under subsection (1) is subordinate legislation.

'(3) The bulk water supply code takes effect—

(a) on the day the Minister's notice is notified in the gazette; or
(b) if a later day is stated in the Minister's notice—on that day.

'(1) Within 21 days after the bulk water supply code or an amendment of the code takes effect, the Minister must table a copy of the code or the amendment in the Legislative Assembly.

'(2) The copy is tabled for information only.

'(3) A failure to table a copy does not affect the bulk water supply code's ongoing effect.

'The chief executive must publish the bulk water supply code, as in force from time to time, on the department's website.

'A code-regulated entity must not contravene a provision of the bulk water supply code.

Maximum penalty—

(a) for contravention of a provision about making or complying with an emergency plan—1665 penalty units; or
(b) otherwise—200 penalty units.

'(1) Compliance or noncompliance with the bulk water supply code does not—

(a) create a civil cause of action based on the compliance or noncompliance; or
(b) affect or limit a civil right or remedy that exists apart from this Act, whether at common law or otherwise.

'(2) Without limiting subsection (1)(b), compliance with the bulk water supply code does not necessarily show that a civil obligation that exists apart from this Act has been satisfied or has not been breached.

'(1) If the Minister proposes to make or amend the bulk water supply code, the Minister must consult with each code-regulated entity affected by the proposed code or amendment.

'(2) For subsection (1), the Minister must ensure that each code-regulated entity is given a reasonable opportunity to make submissions to the Minister about the proposed code or amendment.

'(3) However, the Minister may amend the bulk water supply code without consultation if the Minister proposes to—

(a) correct a minor error in the code; or
(b) make an amendment of a type the code states may be made without consultation.

'(1) The supply of bulk services, other than the supply of an exempt water service, may be made only under a bulk water supply agreement between an SEQ bulk supplier and a bulk water customer for the bulk services.

'(2) In this section—

exempt water service means a water service declared under a regulation to be exempt from requiring a bulk water supply agreement for the supply of the water service.

'(1) The Minister may, under the principles in the bulk water supply code, decide a cost or price mentioned in section 360N for a particular period.

'(2) Before deciding a cost or price, the Minister may seek advice from an entity nominated to provide advice about costs or prices to the Minister under the bulk water supply code.

'(3) The Minister must consider any advice given by an entity under subsection (2) before deciding a cost or price.

'(4) A decision of the Minister under subsection (1) has effect on the day decided by the Minister and stated in the notice mentioned in subsection (5)(a).

'(5) The Minister must, as soon as practicable—

(a) give notice of the Minister's decision to each code-regulated entity affected by the decision; and
(b) amend each bulk water supply agreement affected by the decision.

'(6) If a cost or price decided by the Minister for the supply of bulk services is inconsistent with the cost or price for the bulk services under a bulk water supply agreement, the cost or price decided by the Minister prevails to the extent of any inconsistency.

'(7) If the Minister does not intend to decide a cost or price under subsection (1), the Minister must give a notice to each SEQ bulk supplier advising—

(a) that the SEQ bulk supplier may decide the cost or price under the principles in the bulk water supply code; and
(b) the period for which the SEQ bulk supplier may decide the cost or price.

'(8) The notice under subsection (7) must be given at least 4 months before the period under subsection (7)(b) starts.

'(1) The Minister may, at any time, amend a cost or price decided by the Minister under section 360W(1).

'(2) Section 360W(2) to (6) applies for amending a cost or price as if a reference in the subsections to a decision for a cost or price were a reference to a decision for an amended cost or price.

'(1) Unless there is a determination by the Supreme Court that a decision of the Minister under section 360W or 360X is affected by jurisdictional error, the decision—

(a) is final and conclusive; and
(b) can not be challenged, appealed against, reviewed, quashed, set aside or called in question in any other way, under the Judicial Review Act 1991 or otherwise (whether by the Supreme Court, another court, a tribunal or another entity); and
(c) is not subject to any declaratory, injunctive or other order of the Supreme Court, another court, a tribunal or another entity on any ground.

'(2) In this section—

decision includes a decision or conduct leading up to or forming part of the process of making a decision.

'(1) This section applies if—

(a) an SEQ service provider supplies bulk services to the bulk water supply authority under a bulk water supply agreement; and
(b) the SEQ service provider and the bulk water supply authority can not agree, under the terms of the bulk water supply agreement, about a matter relating to the supply of, or the charge for, the bulk services.

'(2) The Minister may, under the principles in the bulk water supply code, give the SEQ service provider or the bulk water supply authority a direction about 1 or both of the following—

(a) the supply of bulk services by the SEQ service provider to the bulk water supply authority, including a direction to the SEQ service provider to give the bulk water supply authority access to infrastructure owned by the SEQ service provider;
(b) the charge payable for bulk services supplied by the SEQ service provider to the bulk water supply authority.

'(3) The SEQ service provider or the bulk water supply authority must comply with a direction given to it by the Minister under subsection (2).

Maximum penalty—1665 penalty units.'.



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