RMA Bill 2 Key Changes to the Resource Management System

The Government is continuing its signalled and substantial reform of the resource management system, following significant changes already implemented this year, which you can read about in our article here. The latest development is the Resource Management (Consenting and Other System Changes) Amendment Bill (the Bill) which passed its first reading yesterday (17 December 2024). This is another amendment bill to the Resource Management Act 1991 (RMA) to provide interim and targeted changes ahead of the replacement resource management legislation expected this Parliamentary term.

The Bill introduces a range of wide-reaching and significant changes, including changes to address matters in the Government’s coalition agreement commitments.  These changes are designed to enable renewable energy and infrastructure delivery, unlock housing development capacity, and support growth in the primary sector.  To achieve these objectives, the Bill proposes targeted amendments to the implementation of national direction, planning frameworks, and consenting processes. While not all changes are covered here, below are some of the key highlights.

Consenting processes

The Bill introduces several changes to streamline and improve the efficiency of the consenting process. There are further consenting process changes targeted towards specific industries (infrastructure, energy and wood processing) which are discussed further below. The following are more general changes:

• Returning incomplete applications: Councils would have the ability to return applications for resource consent if an applicant fails to provide requested information within three months of the agreed date. This will be welcome news to councils, who have long grappled with  how to deal with consents on long term hold on their books.
• Requesting further information: Councils will also be required to consider new matters before requesting additional information from applicants, including whether they can evaluate the effects of a proposal from  the information already provided, and whether the requested information is proportionate to the nature and significance of the project.
• Review of draft conditions: The Bill proposes that applicants be given the opportunity to request draft conditions for a resource consent before a consent is granted. This will allow both applicants and submitters to comment on the proposed conditions in advance.  While this is already considered best practice, the bill will formalise this. 
• Restriction on hearings: The presumption on holding a hearing is proposed to be notably altered under the Bill. Currently, councils do not need to hold a hearing unless it is considered necessary or a hearing is requested by an applicant or submitter. The Bill proposes that  a hearing must not be held if a council has sufficient information to decide an application, and would remove  the ability for the applicant or submitters to request a hearing .
• Natural hazards: the Bill includes a new s106A which  would allow a consent authority to refuse  or grant consent  subject to conditions based on an assessment of risk from natural hazards.  There are also changes proposed to s 86B so that rules relating to natural hazards would have immediate legal effect when proposed plans or plan changes are notified.  Currently they do not take effect until decisions on submissions are made. 
• Streamlined consenting for heritage buildings: The Bill enables councils to access a streamlined planning process for listing and de-listing heritage buildings. A flow chart of the new process can be viewed here.

Housing growth

As foreshadowed by the coalition government, the Bill proposes to amend the RMA to make the Medium Density Residential Standards (MDRS) optional for councils who can demonstrate 30 years’ worth of housing growth capacity. Previously, tier one and tier two councils were required to include the MDRS in their planning documents for any relevant residential zoning.

Under the Bill as introduced, councils that have already incorporated the MDRS into their planning documents must decide whether to retain, alter or remove the MDRS from the plan, through a resolution of council. If the MDRS are altered or removed, the Bill requires the council undertake new plan changes using the streamlined planning process – which we have discussed in this earlier article.

Infrastructure and Energy

The infrastructure and energy sectors are set to benefit significantly from the proposed changes, with several notable reforms aimed at streamlining processes and supporting growth.

• Faster decision making: The Bill aims to reduce delays in consenting for renewable energy projects by requiring 1-year decision-making processes for renewable energy generation consents. This change is intended to accelerate the transition to renewable energy.
• Extended consent duration: The Bill introduces a default 35-year duration for consents related to renewable energy generation and long-lived infrastructure projects, with the intention of providing more stability for long-term investment in these sectors.
• Flexibility for Iwi Authorities: Both the 1-year decision-making requirement and the 35-year default duration can be modified upon request by certain iwi authorities or Treaty settlement entities.
• Longer Lapse Periods for Renewable Energy Consents: The Bill also doubles the lapse period for renewable energy consents, increasing it from 5 to 10 years. This extension will provide more time for projects to commence, helping to reduce the risk of consents expiring before projects are given effect to.

Compliance and Enforcement

The Bill proposes to reintroduce several changes to enhance compliance and enforcement, which first appeared in the (now repealed) Natural and Built Environment Act 2023. This is one of the reasons the Labour Party has supported the Bill to the Select Committee stage.

Key compliance and enforcement changes include:

• Tougher penalties: The Bill proposes to increase fines for non-compliance. The maximum fine for individuals would  rise from $300,000 to $1,000,000, while fines for organisations would increase from $600,000 to $10,000,000.
• Removal of jury trials: The maximum term of imprisonment for individuals is proposed to be reduced from two years to 18 months. This would remove the ability to elect a jury trial for  RMA prosecutions.
• Prohibition on insurance for fines: The Bill proposes to make it illegal to enter into an insurance contract that covers fines or infringements under the RMA. Any existing insurance contracts of this nature will be void, and violators could face fines of up to $50,000 for individuals or $250,000 for other entities.
• Taking non-compliance into account: The  Bill proposes that councils may consider an applicant's history of non-compliance, including previous abatement notices, enforcement orders, and convictions under the RMA, when making decisions on resource consents. Authorities may refuse a consent application if the applicant has a record of significant or repeated non-compliance.
• Enforcement orders for non-compliance: A new provision would allow councils to apply to the Environment Court or District Court for an enforcement order to revoke or suspend a resource consent. This can occur if there is ongoing or repeated non-compliance with the consent conditions. The court must be satisfied that revocation or suspension is in the public interest and will not harm the environment.

Farming and primary sector

• Relaxation of s 70 discharge rules: The Bill would allow regional councils to create rules that permit discharges with significant adverse effects on aquatic life, provided the council is satisfied that there are already significant adverse effects on aquatic life in the receiving waters and the rule includes standards that will reduce those adverse effects over time.
• Restrictions on fishing rules: the Bill proposes to clarify the interface between the RMA and fisheries legislation. Under the Bill, if a regional council intends to introduce a rule that controls fishing, the council must consider listed criteria in its s 32 assessment. The new criteria include whether the rule would affect local fishing and commercial quota activities. The Bill also proposes that the rule be submitted to the Director-General of Primary Industries for review and approval.  This amendment addresses a Court of Appeal decision which held that Regional Councils can control fishing through rules in coastal plans where the purpose was to protect indigenous biodiversity. 
• Wood processing: The Bill introduces specific provisions for the wood processing industry, requiring that resource consents for wood processing facilities be decided within one year of application. Section 37 extensions are not available for wood processing activity  consent applications.

Minister Bishop introduced the Bill into Parliament on 9 December 2024, and the Bill had its first reading yesterday. It has now be referred to the Environment Select Committee with a closing date for submissions of 10 February 2025. The Select Committee will report back to Parliament by 17 June 2025. Minister Bishop has indicated that the Government aims to pass the Bill into law by mid-2025.

We also note that, as part of the “Phase Two” reforms, the Government has signalled significant amendments to at least 14 existing National Policy Statements (NPS) and National Environmental Standards (NES).  These are proposed to  be part of a comprehensive package of national direction changes which will also include new NPS/NES documents to be consulted on in early 2025.

If you have any questions regarding the Bill or any of the on going resource management reforms, or would like assistance in preparing submissions on the Bill, do not hesitate to contact a member of our resource management team.

Latest Update: 18 December 2024