RMA amendment hits the brakes on plan and policy changes until 2028

The Resource Management (Consenting and Other System Changes) Amendment Bill introduces a range of changes to the RMA. See our previous article on the Bill here which outlines the key changes originally introduced.

Further amendments to the Bill were introduced through an Amendment Paper. The most significant change is a nationwide pause on most plan and policy statement changes until the end of 2027, when the Government expects to introduce replacement RMA legislation.

What’s changing?

The amendment halts the notification and hearing of most proposed plans and policy statements and plan/policy changes. This is intended to prevent local authorities from investing significant time and money on processes that may be superseded by the incoming RMA replacement legislation.

In summary, from the Bill’s commencement date:

• All proposed planning instrument processes (plans, policy statements, changes, variations) must stop unless fully or partly heard before commencement.

• If notified but not heard, or if the hearing is scheduled to start more than five working days after commencement, the proposal must be withdrawn within 90 working days.

• No new planning instruments can be notified.

• Mandatory and discretionary directions about national planning standards and plan reviews are paused.

What’s exempt?

Certain processes are exempt, including:

• Streamlined planning processes directed under national instruments (e.g., national policy statements, national environmental standards).

• The intensification streamlined process (Schedule 1, Part 6).

• Implementing a new NPS that must be in place before 2027.

• The freshwater planning process to give effect to the National Policy Statement for Freshwater Management.

• Ministerial directions or call-ins of national significance.

• Natural hazard planning.

• Instruments giving effect to Treaty/deed settlements, the Marine and Coastal Area (Takutai Moana) Act, or the Ngā Rohe Moana o Ngā Hapū o Ngāti Porou Act.

Private plan change requests are not affected unless they have been adopted by the local authority and notified.

Local authorities can also apply to the Minister for an exemption, which may be granted if the change meets one or more of the following criteria:

• enables provision/operation/maintenance of drinking water, stormwater, or wastewater (Water Services Act 2021);

• fixes unintended, unworkable, or inefficient provisions;

• responds to changes in the RMA;

• improves climate change response;

• supports transition of high-risk land to manage erosion;

• gives effect to Treaty settlement obligations;

• responds to an Environment Court recommendation; or

• any other reason the Minister considers appropriate.

Additional new powers to override planning provisions

Until the end of 2027, the Governor-General, on the Minister’s recommendation, can make regulations to modify or remove plan or policy statement provisions that negatively impact economic growth, development capacity, or employment.

Before exercising this power, the Minister must:

• investigate impacts on economic growth, development capacity, or employment;

• provide a report and make a recommendation on whether to modify/remove the provision;

• consult with affected parties; and

• ensure the changes are consistent with national policy statements and national environmental standards, and do not breach Treaty or MACA settlement obligations.

Once made, these regulations take effect immediately, and local authorities must update their planning instruments accordingly (without going through the standard Schedule 1 process).

Comment

For councils, the reforms effectively hit pause on most plan and policy making for the next two and a half years while the Government works on the RMA’s replacement. The rationale is to avoid pouring resources into plans and policies that may not align with the future resource management system associated with the government’s proposed RMA replacement; and to allow councils to focus on the new system. This will likely achieve some cost savings and efficiency gains. Conversely, it will stymie a range of planning/policy proposals in the interim period.

For property developers and landowners, the planning pause could bring both challenges and opportunities. Development projects that are dependent on expected plan changes may be left in limbo. In other cases, developers may benefit from delays to new rules intended to tighten development controls.  

If you have any questions about how these changes might affect you, please contact our team.