Infrastructure WA

41. Achieve better use of infrastructure assets by improving asset management practices across the public sector, including:

1. formalising and funding the Department of Finance’s role as functional lead for asset management to support and assist state agencies and government trading enterprises in developing asset management maturity
2. progressively expanding the Building Asset Management Framework pilot initiative to operationalise the Strategic Asset Management Framework and apply to all government asset types
3. requiring all state agencies and government trading enterprises to develop fit for purpose asset management practices, in line with the Department of Finance guidance
4. undertaking a review within 5 years to assess progress on maintenance outcomes and determine whether additional measures are required to strengthen the ability of state agencies and government trading enterprises to fund ongoing asset maintenance.

42. Incentivise improvements in asset management across the public sector by:

1. introducing a new budget allocation for state agencies and government trading enterprises to implement fit for purpose asset management planning, capability building and systems
2. establishing an asset lifecycle investment fund, or similar incentive mechanism, to reward good asset management practice and support funding submissions that demonstrate strong alignment with service delivery outcomes and optimised asset use. 

43. Enable transformation of the South West Interconnected System by evolving the Whole of System Plan and ensuring implementation actions are transparent, including:  

1. updating modelling inputs, assumptions and scenarios to incorporate the following: 
   • achieving interim emissions reduction targets (once defined) and net zero emissions by 2050 targets through the lowest-cost mix of generation, storage, network transmission and distribution
   • potential renewable energy generation locations on the network, such as the Mid West, on energy network infrastructure requirements 
   • electricity offtake associated with the development of new industries in line with state government industry development objectives
   • potential entry of existing off-grid large users connecting to the South West Interconnected System and rates of potential electrification across commercial, industrial and residential users
   • using technologies (such as energy storage) to reduce the curtailment of renewable energy generation, and the practicality and community acceptance of any curtailment assumptions 
   • accelerated delivery of energy storage and other Distributed Energy Resources technologies, including the impacts these have on the overall energy infrastructure investment program 
   • increased uptake of electric vehicles on the energy network, including increased demand for energy and energy storage opportunities from electric vehicle batteries  
2. publishing a detailed short-term to medium-term implementation plan for the most likely scenario, which is updated periodically and identifies:
   • current and planned investment
   • network constraints
   • opportunities for investment in programs and projects to deliver energy transformation, including the nomination of priority projects eligible for streamlined approval processes.   

Provide a long-term view on energy generation, demand and network infrastructure requirements by preparing a North West Interconnected System energy futures report. The report should:

• align with interim emission reduction targets (once defined) and net zero emissions by 2050 targets
• test and resolve to what extent interconnection should occur in the system and the infrastructure needs to support this, along with any adjustments to access arrangements
• define the role of state agencies, government trading enterprises and the private sector
• support the identification of suitable sites for large-scale renewable energy generation and storage in proximity to industrial land and high energy users
• inform the evaluation of key project proposals, including the Burrup Common User Transmission Line and East Pilbara Link. 

Increase energy system reliability and resilience, reduce emissions and drive cost-effectiveness by accelerating a dedicated program of energy storage, microgrids, virtual power plants and standalone power systems The program should include: 

• providing appropriate coordination and allocating funding
• identifying feasible locations across the state 
• investigating future energy storage options, including hydrogen, pumped hydro, batteries and other energy storage technologies. 

46. Ensure the legislative and regulatory framework enables energy infrastructure that aligns with broader public policy outcomes by:

1. reviewing and revising energy legislation, regulations, codes, guidelines and associated decision-making documents and processes (particularly relating to the New Facilities Investment Test), to include the interim emissions reduction (once defined) and net zero emissions by 2050 targets, urban infill and industry development objectives in a manner that does not unduly disadvantage first or last movers
2. reviewing the effectiveness of guidance and assessment for investment proposals under the current objectives of the Electricity Network Access Code 2004, as well as the expected levels of information and analysis required from proponents
3. consistent with Recommendation 40 in the Infrastructure delivery chapter, establishing a clear policy position on the role of government and the private sector in funding, financing and delivery of enabling infrastructure, such as transmission lines, in order to support industry growth and decarbonise the energy sector. 

47. Support the development of the state’s hydrogen industry by:

1. accelerating the reform of legislation, standards and policies 
2. investigating options for stimulating domestic market demand, as a precursor to establishing export industry demand
3. investigating the feasibility of a hydrogen refuelling network on key freight routes across the state through the planned detailed supply chain model for renewable hydrogen
4. publicly reporting the Western Australian Renewable Hydrogen Roadmap’s actions on an annual basis, including timing, available funding and transition pathways such as the role of blue hydrogen 
5. investigating the feasibility of, and prioritising large-scale hydrogen industry precincts that leverage energy, water and transport infrastructure, a skilled workforce and market proximity, including:
   1. consistent with Recommendation 43a, developing energy consumption and generation projections, for use in the Whole of System Plan modelling, to determine the need for energy infrastructure to enable hydrogen precincts, such as the Mid West Transmission Line
   2. coordinating activities for development readiness of precincts across environment, heritage, planning and tenure matters  
   3. consistent with Recommendation 40 in the Infrastructure delivery chapter, establishing a clear policy position on the role of government and the private sector in funding, financing and delivering enabling infrastructure to support the hydrogen industry (including factors such as seed funding, co-investment and cost recovery)
   4. developing and implementing a staged program of hydrogen industry enabling infrastructure including publicly and privately funded upgrades or new infrastructure for energy networks, refuelling stations, water and transport infrastructure. 

48. Modernise legislative, regulatory and planning frameworks for water resources and water services by:

1. prioritising the development and introduction to Parliament of consolidated and modernised water resources management legislation that:
   • supports contemporary, best-practice and responsible water resource management
   • improves the definition and security of water entitlements
   • facilitates a balanced approach to water trading (including addressing barriers in state agreements)
   • responds to evolving conditions such as climate change
   • considers the cultural and spiritual value of water to Aboriginal people when making allocation or other resource decisions.
2. developing, publishing and implementing a 20-year state water strategy, in collaboration with all relevant stakeholders, including Aboriginal groups, that:
   • considers economic, social and environmental factors, including population growth, industry needs (such as growing a hydrogen industry) and key shocks and stresses, including climate change
   • defines and identifies strategic water resources
   • sets objectives and measurable targets to achieve long-term water security for the state, considering circular economy principles and multi-source water planning
   • identifies appropriately scaled solutions (local, decentralised or large scheme) that deliver optimised outcomes 
   • articulates a planning and policy framework, identifying the roles of all levels of government, the water services sector and the private sector to support state development objectives
   • is reviewed and refreshed on a 5-year cycle
3. developing, publishing and implementing 10+ year regional water plans (including for Perth and Peel) in collaboration with all relevant stakeholders, including Aboriginal groups, that:
   • align with the state water strategy, regional land use plans and other relevant policies
   • respond to the economic, social and environmental drivers and issues of each region 
   • consider outcomes of the strategic review of water and land-use values (see Recommendation 53)
   • are based on up-to-date science and evidence
   • address water allocation and supply, and set out infrastructure and investment requirements
   • are prioritised according to level of risk and need and are refreshed on a 5-year cycle
4. including provisions in planning and regulatory frameworks that enable investments in appropriately scaled, locally integrated alternative water supplies and wastewater systems 
5. consistent with Recommendation 26 in the Planning and coordination chapter, clearly articulate water resource needs, drainage and infrastructure requirements in land-use and infrastructure servicing plans. Planning should ensure that:
   • there is early consideration of the locational availability of water resources and servicing options so that the real capital and operational costs to government are known before making planning decisions
   • opportunities to collaborate with the energy sector to plan, access and/or generate renewable energy solutions are identified
   • opportunities to use integrated water cycle planning approaches at a community level are adopted to match demand with the most appropriate source of water that is available. 

49. Support the long-term sustainable use and management of the state’s strategic water resources by:

1. reviewing self-supply arrangements for strategic water resources (as identified in the proposed state water strategy) across the state, with the Gnangara groundwater system as a priority, to:
   • quantify the amount of water being used for self-supply purposes from each strategic water source, through monitoring and metering
   • understand the economic, environmental, cultural and social value of each strategic water resource to the region and the state
   • understand future use scenarios and any impacts on the timing and scale of major investment in future water supply infrastructure, such as desalination plants 
   • consider possible policy and regulatory approaches that could be implemented to ensure long-term sustainable outcomes 
   • outline mechanisms to achieve improved water-use efficiency (such as improved licensing, metering, pricing, trading and compliance measures)
2. based on the outcomes of the review in Recommendation 49a, implementing recommended reform measures 
3. finalising and implementing the Gnangara groundwater allocation plan. 

50. Manage water demand by:

1. reviewing and implementing the Waterwise Perth: two year action plan to further improve urban water efficiency 
2. developing and implementing plans, similar to the Waterwise Perth: two year action plan, for regional areas where benefits can be demonstrated
3. implementing and, where necessary, introducing expanded water efficiency programs, such as the water government trading enterprises Waterwise programs, to offset the development of new water sources
4. reducing water consumption through education and improved consumer awareness, including by increased use of smart meters, and applying digital technologies to optimise asset performance.