National Water Amendment Bill 2014 Presentation to the Select Committee on Land and Environmental Affairs by Department of Water Affairs 4 March 2014 Mr Trevor Balzer, Acting Director-General 1

Introduction This Portfolio Committee Bill was approved by Parliament on 27 February DWA requests concurrence of Select Committee PCWEA requested the permission of the House in terms of Rule 230(1) for the introduction of the National Water Act Amendment Bill in Parliament 2

Strategic Importance of Bill National Development Plan requires regulatory impediments to growth to be urgently addressed The regulatory regime for mining authorisations to be streamlined and aligned SONA : President Zuma called for cutting of red tape and for stimulating the economy with specific interventions to designed to speed up economic growth This Bill seeks to cut red tape hampering the mining sector by creating an integrated process for water use licenses to be dealt with within 300 days and appeals to Minister to be dealt within 90 days Bill will trigger growth increase in GDP, resulting in having to borrow less( counter rising debt) The Portfolio Committee of Water and Environmental Affairs and the Portfolio Committee for Mineral Resources have been engaged since last year in a series of Joint Meetings to finalise the alignment of all legislative instruments, including existing legislation, and subordinate legislation in the form of regulations and amendments thereto to give effect to the agreement concluded the three Departments, namely DEA, DWA and DMR

Background These Joint Meetings resolved, in 2013, to convert these agreements into legislative amendments to the current legislation being administered by the three Department’s and to integrate and align all the time frames and all procedures within the different pieces of legislation The purpose being for the application of environmental law in mining areas in a well co-ordinated, structured and synchronised manner. This gives effect to the “one environmental system” and the agreed time frame for the processing of the respective authorisations is 300 days and a further 90 days for internal appeal process to the respective Minister’s. 4

Background These legislative amendments include the Mineral and Petroleum Resources Development Amendment Bill, 2013 and its Regulations, as well as the National Environmental Management Laws Bill, 2013 and its Regulations. 5

The DWA joined this process at a later stage when its water policy framework and the National Water Act, Act No. 36 of 1998)] were undergoing extensive public consultations. The PCWEA, while considering the National Environmental Laws Third Amendment Bill, 2013 and the Mineral and Petroleum Resources Development Amendment Bill, 2013 realized that it was imperative to effect certain technical amendments to the National Water Act in order to achieve the goal of an integrated regulatory framework for water, mining and environment by specifically providing for the alignment of the timeframes for the processing of the respective applications within 300 days and for the appeals to be adjudicated within 90 days. The Minister of Water and Environmental Affairs and the Minister for Mineral Resources and their respective Departments were consulted on this approach to introduce a Committee Bill and were in full support of this process. 6

Motivation for Committee Bill Accordingly, the Portfolio Committee of Water and Environmental Affairs has deemed it prudent to initiate a Committee Bill to effect certain amendments to the National Water Act. Submitted Committee Bill to Parliament seeking permission for the introduction of this Bill as a Committee Bill. 7

Purpose The purpose of the technical amendments to the relevant sections of the National Water Act seeks to achieve the alignment and synchronisation of timeframes and processes for the processing of water use licences, environmental authorisations, licences under the specific environmental management Acts and other licences, permits, rights in terms of the Mineral and Petroleum Resources Development Act, Act No 49 of 2002) Make provision for a synchronised internal appeal process to the Minister of Water and Environmental Affairs rather than the current appeal process being the Water Tribunal. This will ensure that all appeals will be finalised within 90 days after the receipt of an appeal. 8

Motivation In December 2013, Cabinet approved the 12 key policy positions proposed by the Department of Water Affairs one of the 12 policy positions was the establishment of an internal appeal procedure to the Minister in respect of appeals against the issuing or refusal of a water use licence or against a condition in the licence. The Water Tribunal was found to be an ineffective and costly mechanism for adjudicating appeals, hence the move to the internal appeal mechanism, similar to the appeal mechanism of Department of Mineral Resources and Department of Environmental Affairs 9

Purpose The purpose of the Committee Bill is to make specific amendments to sections 41 of the National Water Act, which deals with water use licence applications to enable an integrated licensing system which aligns the time frames for internal appeals to Minister of Water and Environmental Affairs and to enable the Minister to be the appeal authority in certain circumstances for internal appeals for water use licences emanating from applications for rights, licences or permits for prospecting, mining, exploration or operations in terms of the Mineral and Petroleum Resources Development Act, 2002 These amendments are necessary for the synchronisation and alignment of processes and time frames for the respective regulatory frameworks between the DMR,DEA and DWA 10

Objects of Committee Bill The Committee Bill seeks to: amend the National Water Act, 1998, so as to make provisions for the correct designation of the Department and Minister; to correct outdated references; to enable an alignment and synchronisation of the process for consideration of water use licenses with the licensing processes under the National Environmental Management Act, 1998, the specific environmental management Act and the Mineral and Petroleum Resources Development Act, 2002 ; provide for the appointment of the Minister as the responsible authority for internal appeals in certain circumstances; to amend the authority of the Water Tribunal as appeal authority in certain circumstances where an appeal will now be dealt with by the Minister; and provide for matters connected therewith. 11

Financial Implications The financial implications for the State have been budgeted for within the current budget of the Department of Water Affairs 12

Recommendation It is necessary to align the National Water Act, 1998 which deals with water use licence applications, specifically in respect of time frames and internal appeals, so as to provide for a synchronised and integrated licensing system between the DMR, DEA and DWA Given the time constraints, the Portfolio Committee requests that rule 240 (a) and 241 (b) and (c) be suspended, as the Portfolio Committee was of the view that no further public consultation is necessary on this Committee Bill as it is purely technical in nature. The Bill has arisen out of intensive public consultations related to the National Environmental Laws Third Amendment Bill and has been the subject of extensive public consultation by the Department of Water Affairs on its policy review process, which has resulted in the acceptance of these proposals by Cabinet. The Portfolio Committee published the Bill on the Parliament’s website. 13

Conclusion The Department of Water Affairs seeks concurrence of select committee for this Bill. It is envisaged that this Committee Bill initiated by the Portfolio Committee will achieve the objective of integrated water use authorisations in a shorter period of time. Furthermore, it is the considered view of the Department of Water Affairs that the Committee Bill will be to the advantage of applicants for water use licences and industry as these applications will be finalised within a shorter and specified time period and will also enable appellants to follow a shorter and more cost effective internal appeal process. 14