86DAdditional matters relating to Tier 2 water sharing arrangements

86D  Additional matters relating to Tier 2 water sharing arrangements  (1) The Basin Plan must also:  (a) specify the conditions under which, due to the likelihood that the State water sharing arrangements that would apply but for this Part (Tier 1 water sharing arrangements) will not ensure that there is enough water to meet conveyance water needs:  (i) the Tier 1 water sharing arrangements cease to apply; and  (ii) other State water sharing arrangements (Tier 2 water sharing arrangements), provided for in the Agreement, commence; and  (b) specify the conditions under which Tier 2 water sharing arrangements cease to apply and Tier 1 water sharing arrangements recommence; and  (c) include a reserves policy that, for periods during which Tier 2 water sharing arrangements apply:  (i) specifies the annual volume of water required to be reserved to meet the shortfall in conveyance water worked out under subsection (2); and  (ii) specifies the extent to which this volume may vary between years; and  (iii) specifies the arrangements that are to apply to ensure that the volume of water required to meet the shortfall in conveyance water will be reserved and provided; and  (iv) takes into account the potential inputs from the Murrumbidgee, Darling and Goulburn Rivers; and  (d) specify arrangements for carrying water over in storage from one year to another for New South Wales, Victoria and South Australia; and  (e) provide for any other matters necessary to give effect to arrangements for sharing water in the River Murray System and in the Murrumbidgee, Darling and Goulburn Rivers in order to provide conveyance water.  (2) The shortfall in conveyance water is worked out for the purposes of subparagraph (1)(c)(i) by subtracting:  (a) the amount of conveyance water referred to in paragraph 86B(1)(b); from  (b) the minimum inflow sequence to the River Murray System from:  (i) natural flows; and  (ii) works that are under the control of the body that is entitled, under the Snowy Hydro Corporatisation Act 1997 of New South Wales, to the Snowy water licence within the meaning of that Act.  (3) The arrangements referred to in paragraph (1)(d) must:  (a) recognise South Australia’s right, as provided for in clauses 91 and 130 of the Agreement, to store its entitlement to water; and  (b) recognise that each of New South Wales, Victoria and South Australia is responsible for meeting the critical human water needs of that State, and will decide how water from its share is used.  (4) State water sharing arrangements are the provisions of the Agreement that deal with the sharing of surface water in the River Murray System. Note: The rules and accounting arrangements in the Agreement partition the shared surface water resource of the River Murray System between New South Wales and Victoria, and detail the entitlements to this water by South Australia. The Agreement includes provisions about the way in which the shares are defined, transferred and accounted for, access to and sharing of the storages, access to flows at different times and accounting for losses and overflows. All these provisions are used to determine the quantity of water in each State’s share at any given time.