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INVESTMENT PLAN FOR WATER USE EFFICIENCY, ACCESS TO WATER RESOURCES AND BALANCED POLICY OUTCOMES MAY 2011 AUTHOR: PROFESSOR RODGER SANDS
Transcript
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INVESTMENT PLAN FOR WATER USE EFFICIENCY,

ACCESS TO WATER

RESOURCES AND BALANCED

POLICY OUTCOMES

MAY 2011

AUTHOR: PROFESSOR RODGER SANDS

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CONTENTS

1. INTRODUCTION .................................................................................... 2

2. PREVIOUS FWPA SPONSORED RESEARCH .................................... 3

3. SWOT ANALYSIS ............................................................................... 10

4. CONTEXT ............................................................................................ 14

4.1 Plantations and water balance ..................................................... 14 4.2 Monitoring water use .................................................................... 15 4.3 Remote sensing ........................................................................... 16 4.4 Models of water use ..................................................................... 17 4.5 Environmental flows ..................................................................... 20 4.6 Water allocation ........................................................................... 21 4.7 Water use efficiency ..................................................................... 24 4.8 Economic and environmental benefit ........................................... 24 4.9 Plantations and salinity ................................................................. 25 4.10 Plantations and water quality (other than salinity) ...................... 25 4.11 Native forests ............................................................................. 26 4.12 Climate change and carbon ....................................................... 27

5. RECOMMENDATIONS ........................................................................ 29

6. RESEARCH PLAN .............................................................................. 33

7. ABBREVIATIONS ............................................................................... 34

8. REFERENCES..................................................................................... 35

9. APPENDIX 1: CONSULTAION ........................................................... 37

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1. INTRODUCTION

Water and forests have reciprocal effects on each other. Water is

required for growth and can limit productivity when water is in short

supply, a common occurrence in many plantation areas in Australia.

Water management to increase productivity is best considered in the

FWPA silviculture and genetics research portfolios. This plan concerns

the reciprocal effect, the impact that forests have on water in the

wider environment. There are three main aspects to this. The first is

salinity. Tree removal over large areas of southern Australia brought

saline groundwater close to the surface and re-establishment of trees

may help reverse this. Plantations are unlikely to be profitable in areas

where salinity is a problem. The second is water quality (other than

salinity). Native forests and plantations, properly managed yield higher

quality water to catchments than do alternative land uses. The third is

the impact forests, both native and plantation, have on water yield to

streams and groundwater in conjunction with other land uses. This is an

important and sometimes controversial issue and will be the major

focus of this research plan. Native forests have the largest impact on

water because of their extent and their proximity to cities. However,

from the perspective of FWPA and its levy payers, the focus for

investment will be on plantations managed for high value wood

products.

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2. PREVIOUS FWPA SPONSORED RESEARCH

Research over the period 2005-2010, completed or continuing, is

summarized in Table 1. FWPA contributed 28% of funding (Figure 1).

Government (Commonwealth and State) contributed 70% of total

funding and this was mainly due to the large Commonwealth

investment in PRC115-0809 (Table 1). Direct industry investment was

low at 2%.

PN04.4010: Regional scale, spatially explicit quantification of

plantation forest water use

Differences in canopy transpiration should be reflected in differences in

canopy temperature. The objective of this study was to determine

whether measuring canopy temperature with a hand held device

could quantify water use by Eucalyptus globulus plantations in the

Green Triangle region such that spatial and temporal differences in

transpiration could be determined and applied regionally. The

technique was unable to do so because the diurnal variation in

transpiration masked differences between locations. For a remote

sensing technique to be suitable it needs to get instantaneous

measurements across a region. Satellite or aircraft techniques are

required to meet this requirement and further investment in remote

sensing will be a recommendation in this plan.

PNC064-0607: Quantifying plantation water use in the Green Triangle

Water use in Eucalyptus globulus and Pinus radiata plantations was

measured over 3 years on sites in southwest Victoria of which the

hydrogeology contrasted with the extensive network of sites previously

monitored in the karst areas of southeast South Australia (Benyon and

Doody 2004). Current models produced unbiased predictions of

annual water use of plantations with closed canopies at sites where

tree roots do not access groundwater but with poor accuracy at sites

where roots take up groundwater. Significant reductions in run-off or

recharge were predicted to result from establishment of new

plantations in southwest Victoria.

Based on 22 closed-canopy sites across the whole Green Triangle

region, plantation water use was largely determined by rainfall except

at sites where groundwater was accessible (defined as <6m from the

surface) in which case it was determined by potential

evapotranspiration (see Benyon and Doody (2004) for more detail).

The extent and quality of the research in the Green Triangle is excellent

and pioneering. However, the results apply to defined situations and

assumptions. Water policy developers have scaled up this information

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and applied it across the whole region and over areas the original

data did not represent and was not claimed to represent. This

highlights the importance of having extensive and detailed information

and being able to credibly present this at negotiations on allocation.

The researchers agree. The last sentence in the executive summary of

the final report on this project reads: 'with such large quantities of water

involved, potentially worth >$200 million, it is important to ensure

accuracy in estimates of plantation water use. The additional science

necessary to improve current estimates would cost a small fraction of

the potential value of the water involved.' This of course presupposes

that management changes as a result of the improved information.

PNC073-0708: Decision support for water use efficient plantation

management and wood production

This research examines the water use efficiency for wood production of

Pinus radiata, Eucalyptus globulus and Eucalyptus nitens plantations in

predominantly 'Mediterranean' type climates (hot dry summers and

cool wet winters) across southern Australia. It shows that both wood

production and the water use efficiency for wood production will be

increased by any means (breeding or management) that increases

the leaf area index during the early part of the growing season (winter

and spring). The implication is that increasing water use under these

circumstances (providing water and not carbon and nutrients are

growth limiting) will increase the water use efficiency of wood

production. It follows that the same volume of wood could be grown

using the same volume of water by planting a smaller area of higher

water availability.

The research also shows that promoting an increase in leaf area index

exposes the plantation to the risk of tree deaths during drought years

but that appropriate planting densities and thinning regimes can

control this.

PRC071-0708: The impact of plantations on water security

The objectives of this review can be summarized as

to identify regionally specific hydrological issues across Australia

relating to plantations and water interception, to analyse the

magnitude of the impacts of plantations on water flows and to

identify where research can inform policy.

to review forest management impacts on water use efficiency,

the impacts of other crops sharing catchments with plantations

and the role of native forests in water supply.

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Consequently this review was valuable in informing this plan and

indeed some of the research recommendations of this review have

been carried forward into this plan. An important conclusion from this

review was that the impacts of plantations on water security at the

regional and national scale have been over-stated but that local-scale

impacts can be important in certain areas where the proportion of

plantation to other land use is high. The review emphasized that

plantations in predominantly groundwater systems are of more

concern than surface water catchments such as the Murray Darling

Basin. The report provides comprehensive information, state by state,

and as such is a valuable reference.

The review made recommendations for future research:

Consolidate national data sets. While this will not be a

recommendation in this plan, it is acknowledged as an important

requirement to assist future research and policy development.

Identify cost effective and practical methods to monitor

plantation water use and impacts. This will be a

recommendation in this plan through developing models at finer

scales of space and time and promoting research in remote

sensing.

Develop and apply methods to determine' significance' and

'thresholds'. This will not be a specific recommendation in this

plan. However, it may be incorporated in the model

development foreshadowed above.

Investigate and apply methods to assess the net benefits and

impacts of plantations on economic, environmental and social

values. There will be a recommendation in this plan framed

around this.

Investigate climate change and management impacts on

native forests and catchment water flows. This clearly is very

important but not a responsibility of FWPA. It will not be a

recommendation in this plan.

PNC061-0405: Predicting and managing the impacts of commercial

plantations on water balances

The objective of this research was to develop models to predict

transpiration and the hydrological consequences in existing or

proposed plantations in relation to their location and management. A

primary objective was to determine the impact of plantations in

catchments containing various land uses. A forest growth model 3PG+,

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(Landsberg and Waring 1997, Morris 2003) was integrated with the

agricultural soil water balance model PERFECT within the Catchment

Analysis Tool (CAT) framework (Beverley et al. 2005). This framework

comprises a suite of farming system models.

The predictive value of the models was mixed, being able to predict

stream flow better in some catchments than others. This research is

certainly a valuable step in the right direction and a basis for further

research. It acknowledges the need to place forest models within

broader catchment models that incorporate other land uses. There is

a way to go however before such models can be used at appropriate

temporal and spatial scales that can partition water use between

various land uses.

PNC143-0809: Predicting Eucalyptus nitens plantation water use using

growth parameters

This research in progress uses a different approach to measuring

plantation water use and its impact on streamflow. The objective is to

develop empirical relationships between Eucalyptus nitens growth

parameters (e.g. basal area) and water use. These relationships could

then be integrated into forest estate models that could simultaneously predict water use and wood volume.

PRC115-0809: Methods to accurately assess water allocation impacts

of plantations

This is a large continuing research project where the dominant funders

are the National Water Commission (NWC) and CSIRO. FWPA

contributed 12% of the funding. This research has two parts. The first is

whole catchment scale modelling of the impacts of plantations on

water yields and flow durations using catchment scale models that use

average climate data and with limited capacity to analyse inter

seasonal flows and land uses other than forests compared with grass.

These are valuable but can only provide qualitative information at the

broadest level. More exciting is the second part, which like PNC061-

0405 attempts to account for all land uses in catchments, not just

plantations, and which attempts to do so at finer scales of space and

time. This research is ongoing and the final results currently are

unavailable. Preliminary reports suggest that, like PNC061-0405, this will

provide valuable leads for future research.

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Table 1: Investment by FWPA in water projects 2005-2010

Completed

PROJECT TITLE FWPA COMMON-

WEALTH *

STATE GOVT INDUSTRY

(direct)

TOTAL %

FWPA

REGION SPECIES

PN04.4010 Regional scale,

spatially explicit

quantification of

plantation forest

water use

$39,254 $19,627 $9,814 $9,815 $78,510 50 Green

Triangle

E.globulus

P.radiata

PNC064-0607 Quantifying plantation

water use in the

Green Triangle

$187,222 $220,325 $347,000 $754,547 25 Green

Triangle

E.globulus

P.radiata

PNC073-0708 Decision support for

water use efficient

plantation

management and

wood production

$94,600 $40,500 $52,500 $187,600 50 Southern

Australia

Eucalypts

P. radiata

PRC071-0708 The impact of

plantations on water

security

$60,000 $30,000 $30,000 $120,000 50 National Native

and

plantation

PNC061-0405 Predicting and

managing the

impacts of

commercial

plantations on water

balances

$250,000 $79,800 $170,200 $500,000 50 Victoria

and

Tasmania

Eucalypts

and P.

radiata

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Active

PROJECT TITLE FWPA COMMON-

WEALTH **

STATE GOVT INDUSTRY

(direct)

TOTAL %

FWPA

REGION SPECIES

PNC143-

0809

Predicting Eucalyptus

nitens plantation water

use using growth

parameters

$303,000 $525,270 $828,270 37 Tasmani

a

E. nitens

PRC115-

0809

Methods to accurately

assess water allocation

impacts of plantations

$200,000 $1,402,000 $1,602,000 12 National Native

and

plantation

Overview

Completed $631,076 $390,252 $527,014 $92,315 $1,640,657 38

Active $503,000 $1,402,000 $525,270 $2,430,270 21

Total $1,134,076 $1,792,252 $1,052,284 $92,315 $4,070,927 28

* Mainly CSIRO and NWC

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Figure 1: Proportion of dollar investment in water projects from various donor agencies, 2005-2010.

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3. SWOT ANALYSIS

Category Strengths Weaknesses Opportunities Threats

Monitoring Good information on

water flows in some

catchments

Lack of information on water

flows in some critical

catchments

Lack of commitment to

continue monitoring

Generally poor representation of

all the components of the water

balance

To continue monitoring

To establish a national database

Poor funding and lack of

commitment will result in

discontinuity or ceasing of

monitoring

Models Good (top down)

catchment scale

qualitative models for

average weather

comparing trees with grass

Good (bottom up) stand

scale growth models (3PG,

Cabala, Promod etc) for

plantation species

Models cannot account for

land-uses other than trees and

grass

Models at sub-catchment and

plot level are poor or non-

existent

Models for groundwater systems

are too general and potentially

misleading

Poor integration of top down

and bottom up approaches

Insufficient base data and lack

of integration and application

Develop better models to better

characterise those areas known

to have an impact, and at finer

scales

Incorporate the full range of land-

uses in predictive models

To consider the interactive effects

of drought and climate

uncertainty with the impact of

forests

Better integration of modelling

and monitoring for the

development of proactive

management strategies

Cost and complexity of

developing workable models

Fragmentation of existing

research capability

Lack of reliable data for

validation of modelling

approaches

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Category Strengths Weaknesses Opportunities Threats

Remote sensing Potentially inexpensive

and effective method of

measuring

evapotranspiration at

regional scales

Does not measure all

components of the water

balance

Current techniques not largely

tested in Australia and not well

suited to Australia

Current techniques subject to

considerable error

Do not operate at finer temporal

scales

Difficulty in scaling single point to

daily values

To develop cost-effective remote

sensing technologies at finer

scales

Rotation length monitoring of

water resources

Potentially highly skilled and

difficult interpretation may

limit uptake by industry

players

Poor validation of existing

approaches in plantations

Allocation Good process based

understanding of the

controls on tree and

catchment water balance

Known and assumed water yield

reductions associated with

conversion of pasture to forest

Lack of knowledge on impact of

the range of agricultural

practices and the extent to

which they will be deployed

across large areas

To develop systems for

meaningful and fair interaction

with water policy developers to

ensure that forestry gets a fair

deal in water allocation

Ability to have water allocated on

the basis of quantity rather than

area of land to be planted

Proliferation of the

requirement for plantation

owners to obtain water

licences for new land

Uncertainty about whether

any retrospectivity will apply

for areas already planted (i.e.

not permitted to replant)

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Category Strengths Weaknesses Opportunities Threats

Water use

efficiency (WUE)

Good silvicultural research

to optimise WUE

Poor interaction between forest

owners and water policy

developers

Models are not good enough to

provide the best information at

the required scales

Proven silviculture not being

practiced

Allocation procedures not suited

to allocation of water by

amount

Confusion over use of the term

water use efficiency at the

scales from leaf to catchment

To make best use of a given

amount of water allocated

To improve plantation productivity

and therefore profitability

To provide security of the

plantation estate

Unreasonable expectations

of other land users

Care need to make sure that

practices do not make trees

more vulnerable to drought-

induced mortality

Triple bottom line

(environment,

economics and

society)

Plantations provide a

product of high national

importance

Plantations provide

environmental benefits

that competing land-uses

cannot

Plantations viewed by many as

less important than other

agricultural land uses such as for

food production

Environmental benefits of

plantations not widely accepted

in the broader community

To ensure that water policy

developers understand the full

value of plantations

Improve value of forest products

to match or exceed that of

alternative land uses

Forestry does not get a fair

deal from negotiations

Value of the forest products

may be less than competing

land uses

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Category Strengths Weaknesses Opportunities Threats

Salinity

Water quality

other than salinity

Trees planted in recharge

areas can rehabilitate

saline sub-catchments

Both native forests and

plantations, properly

managed, yield high

quality water

Plantations have less of a

'human face' than does

agriculture

Plantations established for wood

alone are non-commercial in

saline areas

Native forest to plantation forest

impacts poorly understood

To provide good quality drinking

water to urban populations and

to agriculture

To establish mechanisms to give

the full value for rehabilitation

plantings that include the value of

the water

Commercial tree planting in

stream management zones (with

appropriate safeguards)

Agriculture not releasing

targeted recharge areas for

tree planting

Wildfire

Poor practice, especially

roading

Native forest Dominates the supply of

quality water to urban

areas

Regrowth management

Fire control

Wildfire and inappropriate

prescribed burning

Climate uncertainty

Fragmentation of research

Climate change

and carbon

Forests sequester carbon

Construction in wood

emits less carbon-dioxide

than competitors

Any increase in WUE will

increase productivity for

the same amount of water

(BUT see weaknesses)

Any increase in ET will result in

decreased water yield to

streams and/or groundwater

Poor (but improving)

understanding of the effect of

elevated carbon-dioxide

concentrations and increased

temperatures on WUE and ET at

catchment scales

Poor community understanding

of the benefits of forestry in

ameliorating climate change

and providing an

environmentally superior

building material

To incorporate regional

predictions of climate change,

and the impacts of these on

plantation health and

productivity, in models

Uncertainty about climate

trends at regional level?

Drier climates in some regions

Changed growing

environments

Competition with agriculture

Increases in pests and

disease

Increased wildfire

Tree mortality

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4. CONTEXT

4.1 Plantations and water balance

When rain falls on a catchment some is held up and evaporated

directly from leaves while the rest falls to the ground and adds to soil

water storage if there is capacity to do so or else runs off to streams or

adds to ground water. Counteracting this is evapotranspiration (ET),

which is the sum of water evaporated directly from the leaves, water

transpired through leaves and water evaporated from soil and free

water surfaces. Apart from rainfall, ET is usually the largest component

of this water balance and particularly in forested catchments. ET from

forests usually is greater than from grassland because of a combination

of (a) more rain evaporated directly from forest canopies, (b) forest

canopies having higher water conductances from canopy to

atmosphere and (c) forest trees having deeper root systems, allowing

them to access water unavailable to more shallow rooted species,

particularly in the dry season.

Consequently, plantations generally use (evapotranspire) more water

than rain-fed agriculture. The extent to which this occurs is often

overstated because (a) most plantations in Australia have been

established on cleared native forest where the differences are not as

marked, (b) most comparisons have been made between plantation

and grass without reference to other more consumptive agricultural

land uses and (c) the area of plantation in most catchments is small.

Nevertheless, in areas where the proportion of plantation cover is high

there may be legitimate concern about the extent of water use by

plantations. (There are hydrological implications of multiple rotation

forestry. The observed declines in second rotation productivity in the

hardwood sector seem to be related to decreased soil water

availability as a result of the first rotation. Inter-rotation management

may have significant role to play in the management of the

hydrological impacts of plantation forestry).

Climate drives the system. Water flows in a catchment are mainly

determined by the amount, intensity and distribution (spatial and

temporal) of rainfall. Water flows will be less in low rainfall areas and in

areas experiencing drought. The proportion of rainfall (not amount) ET

contributes in plantations usually increases as rainfall decreases and

consequently the relative impact of plantations will be greater in areas

experiencing low rainfall. Water flows may be low or absent in dry

years.

For convenience, catchments can be divided into surface water

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catchments where water flows are mainly directed towards streams

and groundwater catchments where water flows are mainly directed

towards groundwater. In the groundwater catchments of the Green

Triangle (SE South Australia and SW Victoria) and in the Gnangara

mound close to Perth, the potential for excessive water use by

plantations in situations where they may be directly accessing

groundwater is a concern to water resource managers.

O'Loughlin and Nambiar (2001) discuss the range of issues concerning

plantations and water.

4.2 Monitoring water use

There is an important need for cost effective methods of monitoring

water use over the long term. Clearly the best way to monitor runoff to

streams and groundwater levels is to measure them directly by

gauging streams and measuring changes in groundwater levels. Many

catchments containing plantations and native forests have been

monitored and some for long periods. However, direct monitoring is

expensive to maintain and there is reluctance by some authorities to

continue measurements when they can see no obvious financial

benefit in doing so. The financial implications of not doing so could be

significant.

There is widespread agreement amongst industry and amongst

research providers that there is a real need for a comprehensive

national database sharing all available information. There is a range of

databases either contemplated or in early phase of operation. The

National Water Initiative (NWI) requires government agencies to report

hydrological data from some forested catchments. Currently this data

is not freely available and presented in a form useful to all researchers.

Also private entities and research organizations are not required to

submit their data and this is needed in order for this to be a nationally

relevant database. The Water Information Research and

Development Alliance (WIRADA) is a partnership between CSIRO and

the Bureau of Meteorology that has the aim, amongst other things, to

'hold and manage all of Australia's water data'. Their website

(www.csiro.au/partnerships/WIRADA.html) says 'Water resources

information is currently collected and held by hundreds of

organisations across Australia, making it difficult to monitor the status

and use of Australia's water resources and to accurately forecast water

availability. The Bureau of Meteorology’s role has expanded to include

transforming Australia’s water resources information by improving its

accessibility, integration and use. These improvements will be

achieved through substantial innovation and will yield huge benefits

through more informed policy and infrastructure decisions'. However,

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this information is not yet accessible to the broader research

community. Donohue et al. (2010) discuss the numerous Australian

spatiotemporal datasets that have been generated for analysing rates

and trends in hydroclimatological conditions, particularly in

evaporative demand.

Researchers interviewed were unanimous in their plea for a

consolidation of national data sets. This was also a key

recommendation of the FWPA sponsored PRC071-0708 (page 2).

Comprehensive national information is needed to adequately develop

and validate predictive models for use by water resource managers

and policy developers. Researchers who need this data are confused

about the current stage of development, freedom of access, extent of

information and applicability to their particular requirements of

national databases either under construction or contemplated. There

is a need to rationalize this to provide a database that actually works

for the benefit of all interested parties. It is easy to be pessimistic about

this. Past experience in other areas show that such enterprises may

start with collective enthusiasm but end with indifference. The key is to

have clear and accountable procedures that all parties accept and

agree to. The initial challenge is to work out how to do this and to

maintain it. This would involve evaluating the role, accessibility and

applicability of existing datasets. The objective might be to identify an

already existing database and provide recommendations on how this

may be further supported to become complete and available to all

researchers. This is not a research project and therefore not

appropriate for FWPA investment. Rather it is a service required by and

requested by researchers. Funding and motivation should come from

elsewhere.

4.3 Remote sensing

The cost of monitoring by direct on-the-ground measurement is high.

Remote sensing of ET is a cost-effective possibility. After rainfall, ET is the

dominant variable in the water balance. The advantage remote

sensing offers is the potential ability to get virtually instantaneous

estimates of ET over extensive regions at a resolution at which

differences in land uses can be partitioned at the scale at which

management decisions are made. There have been several studies

using remote sensing techniques such as Advanced Very High

Resolution Radiometer (AVHRR), the Surface Energy Algorithm for Land

(SEBAL), and Mapping Evapotranspiration at high Resolution with

Internalized Calibration (METRIC). MODIS (Moderate Resolution Imaging

Spectroradiometer) can remotely estimate Leaf Area Index (LAI),

which is related to evapotranspiration. These systems have not been

comprehensively tested in Australia and their accuracy in Australia is

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questionable. Australia has a limited number of flux towers and none in

a plantation setting. More towers are needed to improve the

accuracy of these remote sensing systems in the Australian

environment. Flux towers are expensive to construct and maintain. The

NWC recently funded studies into remote sensing that aim to partition

ET between different land use types (e.g. plantation forestry, cropping,

dryland pasture, irrigated agriculture, wetlands, floodplains and native

forest) at the catchment scale. One of these used SEBAL to look at

water use in the green triangle (SKM 2010). The resolution in this study

was 30 metres, possibly fine enough for the purpose. They compared

the on-ground sap-flow measurements of Benyon and Doody (2004,

2005) with SEBAL ET data and found a good match at 3 of the 7 sites

and that on average SEBAL ET was 15% lower than field-based ET. They

considered the differences to be 'a result of the different processes and

errors associated with comparing point-based measurements with

area-based measurements.' Herein lies the dilemma. The detailed

data of Benyon and Doody are based on individual tree

measurements that need to be scaled up to represent the variability

that occurs over the whole region. The area-based measurements of

SEBAL need to be scaled down to meet the precision of the single-tree

data of Benyon and Doody. Even although there is more data on tree

water use in the Green Triangle than in any other plantation region in

Australia, there is still insufficient ground data to provide

comprehensive and reliable data on which to base water policy for

the region.

SEBAL is subject to error arising from 'self calibration' routines the

algorithm uses to scale estimates of sensible heat and the temporal

scaling of the image snapshot. There is still a long way to go before

accurate estimates of ET can be derived routinely via remote sensing

approaches. While remote sensing of ET is important, integration with

and estimation of the other components of the water balance will be

critical to resolving regional water balance issues.

The forest research community is enthusiastic about the possibility of

using remote sensing at appropriate scale but vague about the current

state of knowledge and applicability. This plan will recommend further

research in remote sensing.

4.4 Models of water use

Simple surface water models such as Forest Cover Flow Change (FCFC,

Brown et al. 2006) represent an average condition at the whole of

catchment scale. They give flow duration curves i.e. the shape of the

flow. They compare forest with non-forest using average annual

climate. They do not account for land uses other than trees, they do

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not consider the distribution/position of land use within the catchment

and they do not cope with climate variability. They provide predictions

only of long term mean annual flow. As such they are valuable models

in determining whether or not plantations are likely to have an impact

at the catchment/basin scale but should not be expected to provide

more detailed information than this. These models confirm that in

surface water catchments in Australia, plantations most often have no

impact because they occupy such a small area of the catchment.

However, impacts may be significant at the sub-catchment or plot

scale where plantations occupy a significant proportion of the area or

would be if new plantations were to be established. For example, the

impact of plantations in the Murray Darling Basin (MDB) is almost

invisible at the whole of catchment level but plantations have

significant impacts in the sub-catchments of Tarcutta Creek, Gilmore

Creek, Adjungbilly Creek and Adelong Creek. PRC071-0708 (page 4)

reports estimates that establishing a hypothetical 30,000ha of

plantation in the Adelong Creek sub-catchment would result in a 23%

reduction in stream flow. Large-scale plantation expansion in areas of

low rainfall is likely to reduce local stream flow significantly. However,

currently plantations are established as a mosaic with other land uses

rather than the “wall to wall” plantations of the past and as such have

a lesser impact on water availability.

Similarly, models developed for groundwater have been valuable for

providing general information but have considerable scope for

redefining. Models have poor accuracy where trees are using

groundwater. They do not adequately account for the low water use

during the fallow periods between rotations and the low water use

during the early stages of growth prior to canopy closure. They do not

account for the effect of thinning and spacing and differences in soil

properties. Most investigations have been at plot scale, which is

difficult to extrapolate to regional scale. Also investigations have been

over short time periods, which provide limited information on temporal

variability (O'Grady et al. 2010). The information on which far-reaching

decisions about water allocation and licencing of forest plantations

using groundwater has been on very limited data that mostly over-

estimate water use by plantations.

Current catchment scale models can determine whether plantations

have a significant impact or not on water use (although there is no

robust definition of what is significant and what the thresholds are).

Research and modelling should be focussed in areas where the

impacts of plantation development on the water resource are high.

Water use by plantations can be very variable and site specific. Scale

is an important consideration. Ideally models and decision support

systems should account for all of the variables that determine water

use. Ideally models should be:

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nationally applicable but locally relevant

simple enough to be applied in practice

flexible enough to account for local circumstances

scientifically sound, and accepted as such

applicable at a scale used in the implementation of policies

able to compare, spatially and temporally, all interceptors in the

catchment (vegetation type and management, irrigated

agriculture, farm dams, groundwater bores, dryland farming,

expansion of perennial pastures)

able to account for differences in extent of different land uses

(eg perennial pastures versus plantation forestry)

able to account for seasonal and inter-annual flows

able to separate the effect of climate change and changing

land use

able to account for the impact of site quality (soil, aspect, slope),

the impact of silviculture (fertiliser, weed control) and tree

(species/genotype)

able to deal with patchiness and mosaics in both hydrological

properties and land use

able to be incorporated into forest management plans

precise enough to locate appropriate places in a catchment to

maximise wood production per unit of water used, which will also

increase water use efficiency)

able to apply over extended time periods

This is a formidable list and it is unlikely and indeed impracticable that

all of these can be accounted for in a universal model. Realistically,

those variables that have the most significant impact on water use and

informing policy for individual circumstances should be identified and

targeted. The effect of location within a catchment can have large

effects on water use. Models are required at a range of scales. The

appropriate scale will be that at which water allocations are made

and at which management decisions are made. Point models do not

show what happens in a catchment farther away and later in time.

Often a catchment will delay and dilute impacts. Trees are penalized

at point scale rather than catchment scale. Long time periods are

involved. Models need to allow for differences in space and in time.

A step in the right direction is the combination model developed in

PNC061-0405 (page 5). Also, PRC115-0809 (page 6) is developing a

combination model that has a forest growth model (3PG) combined

with an agricultural model (PERFECT) each delivering water to a

hydrological model (2CSalt). This acknowledges that land uses other

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than trees and grass need to be considered. All interceptors in a

catchment need to be included in models. The current trend towards

replacing annual with perennial pastures may well have an effect on

reducing stream flow of the same order of magnitude as plantations.

Sinclair Knight Merz (SKM) and the Victorian Department of Primary

Industry recently looked at modeling the impacts of various land uses in

Victorian catchments. CSIRO and Queensland DPI have developed

the Agricultural Production Systems Simulator (APSIM, www.apsim.info),

which is a modular framework that grows a range of crops, pastures

and plantation forests and details their carbon, water and nutrient

balances. It can compare agricultural and forestry systems at point

scale. The challenge would be to place APSIM within a hydrological

model that delivers water to streams and groundwater. Perhaps APSIM

could be used as an appropriate framework on which to focus future

modeling research. Current models are not sophisticated enough to

account for the range of land uses. Benyon et al. (2007) agree.

There are some very good process-based growth models for Australian

plantation species. The problem is that they have not been

adequately integrated with models for other land-uses, which together

are placed into a hydrological model that delivers water to streams

and/or groundwater at appropriate scale. Validation of such

approaches is difficult as the required ground truthing is often absent.

In most situations the scenarios modelled are unconstrained.

Appropriate models may already exist. The challenge is for better

integration and application of these biophysical models. Most of the

models are validated against the residual term, streamflow, but very

few validate the estimates of ET, which is one of the largest terms of the

water balance. Better testing, validating and improved capacity to

downscale the predictions should be a high research priority.

Improved estimates of water use could cost a small fraction of the

potential value of the water involved.

4.5 Environmental flows

Adequate environmental flows of surface water are necessary to

maintain downstream ecosystem health. Currently the Murray Darling

Basin Authority is calling for increased environmental flows at the

expense of irrigation diversions. There may well be more calls for

greater environmental flows in other surface water catchments across

Australia. Plantations are seen as significant interceptors and may be

asked to make sacrifices to contribute their share. Modelling could

provide a framework for increasing environmental flows by positioning

new plantations within catchments to minimise stream flow impacts

and maximise productivity.

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4.6 Water allocation

Water intercepting activities, including plantation water use, can

become an issue in catchments where water is near, at, or over

allocated.

Perth extracts groundwater from the Gnangara mound. The amount

Perth extracts from the mound has fallen from about 50% to 25% of its

consumption and falling. A desalination plant providing water at a

much greater cost and at a considerable energy cost has made up

the shortfall. Water availability from the mound has fallen because of

(a) continued extraction of urban water, (b) 22,000 ha of un-thinned

Pinus pinaster plantations and (c) an extended drought period.

Recent research has shown the major reason for the decline to be the

current 35-year drought, but there is no recharge under the Pinus

pinaster, which is in poor condition and subject to serious risk of drought

related mortality. It was suggested that the Pinus pinaster should be

removed over a couple of decades and replaced by Banksia

woodland. This was estimated to provide 100mm groundwater

recharge per year. The establishment of this woodland would be very

expensive ($10,000 per hectare) but there are other options. Thinning is

one option (but there is no market for the thinnings). Another option is

low-density ‘checkerboard’ plantations to allow recharge and provide

effective firebreaks. The State Government has commissioned a study

looking at these options. From a forestry perspective, modification of

the existing plantation estate is preferable to clearing it.

Pinus radiata and Eucalyptus globulus currently occupy 14% of the

area in the South Australian part of the Green Triangle but are

allocated 30% of the water use from the regional consumptive pool.

Much of the existing softwood estate was converted from native forest

and has never contributed to the pasture recharge used to calculate

this pool. In the Lower Limestone Coast Water Allocation Plan,

deemed rates of plantation water use are used for

accounting purposes. On average Pinus radiata intercepts 83% of

annual aquifer recharge and Eucalyptus globulus intercepts 78%. In

areas where groundwater is close to the surface (< 6m), trees are

deemed to use more than annual rainfall due to direct extraction from

groundwater. The current extraction models use rotation length

averages of 1.66 ML/ha/yr for softwood and 1.82 ML/yr for hardwood.

Currently there is a 'free' licence for existing plantations to recognize

prior rights for interception and extraction but a licence has to be

purchased for new plantations to cover deemed extraction and also

for interception in specified fully allocated water management areas.

In cases where the volumetric value of the licence is reduced it is

proposed that the loss should be met across the existing or future

estate. This could mean that some areas may not be able to be

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replanted. These precedents concern plantation owners in other

states. Current estimates of direct extraction by plantations in the

Green Triangle are highly precautionary (based on a partial

hydrological model) and lead to major over-allocation issues when

coupled with conservative estimates of groundwater recharge. Recent

bore observations indicate declining water tables during drought and

development of a cone of depression under Eucalyptus globulus

plantations. However, the underlying behaviour of the water table is

not fully understood given visual observations of poor tree growth and

recent higher rainfall. The crucial problem of scaling up point water

use estimates from plot studies or observation wells to regional

estimates must be addressed to gain wider industry support.

Improved community confidence would also be achieved if these

results match alternative estimates from remote sensing studies,

hydrologic models or regional plantation productivity.

A water licence for new areas is an up-front cost to be factored into

any decisions about purchasing land and establishing new areas of

plantations, whether for wood production or carbon credits. The NWI

says there should be no retrospectivity – that existing plantations can

remain in over allocated catchments. However, the NWI also says that

over allocated catchments should be brought back to full allocation.

This is confusing and plantation owners have a right to be nervous.

Plantation owners need to acquire the best quality information to

present to the developers of water policy, including the relative impact

of other water users and intercepting activities on total water budgets.

There is the need to consider where plantations have been established,

where they are likely to be established in the future, areas of surface or

groundwater management that are over-allocated or approaching full

allocation, where these overlap and the extent to which plantations

may significantly reduce water flows. Most plantations in Australia

have been established on prior native forest sites. From this perspective

it might be argued that native forest and not pasture should be used as

a default. However, in most allocation situations the relevant question

is how much water would be released if the plantation forest were

converted to pasture. Also new plantations are being established on

pasture rather than native forest sites. Even so, there is a case that

native forest should be included in research comparing water use by

the range of land uses in catchments. All interceptors should be

identified and considered. Past experience demonstrates that where

information is of general rather than specific nature, the impact of

plantations is likely to be over-estimated by the policy makers. There

needs to be well defined and agreed mechanisms by which plantation

owners communicate with developers of water policy and with water

resource managers. Plantation owners also should ensure that their

management plans include potential water impacts. Frequently the

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approval process for plantation establishment and water allocation are

not linked.

The recent guide to the Murray Darling Basin plan (Murray–Darling Basin

Authority, 2010) says that the basin receives a long term average (1895-

2009) of 500,000 GL/y rainfall of which 31,781 GL/y is average surface

water inflow and approximately 26,500 GL/y is groundwater recharge.

They calculate the consumptive use of surface water as 13,677 GL/y

made up as 'surface water diversions' for irrigation and urban supplies

(10,942 GL/y), 'interception' by farm dams (2,394 GL/y) and

'interception' by forest plantations (341 Gl/y). Thus, plantations

comprise just 2.5% of consumptive use on average but with

considerable variation between regions. Other evapotranspirers

(annual and perennial pastures, native forest and any other rain-fed

vegetation) have not been included as 'interceptions.' The area of

perennial pastures in the Murray Darling Basin has increased to about

70% of the area of the basin whereas the area of plantations is less

than 0.03% (NAFI 2011). Clearly the impact of perennial pastures on

water use will be greater than that of plantations but these have not

been considered as interceptors in the plan. It is proposed that the

'surface water diversion' allocations should be reduced across the

basin to ensure adequate environmental flows but no reduction in

allocations have been foreshadowed for 'interceptions' in any regions.

CSIRO (2011) criticized the implication in the plan that current

interceptions should be considered against low water-use pasture as

the appropriate baseline rather than the historical baseline of prior to

clearing for pasture. They considered that only future interception in a

fully allocated region should be of concern. The guide to the plan

acknowledges the paucity of reliable information on the contribution

of plantations. There is some irony in that forest plantations are not

being considered for cuts in allocation at this stage because the

quality of the available information is not good enough and plantation

water use in the basin currently is largely unregulated. This however

must not be used as an excuse to do nothing in the vain hope that it

will all go away. The need for high quality information on water

intercepting activities that is regionally relevant and at appropriate

scale is inescapable.

Recent droughts have highlighted concern about environmental water

provisions, particularly in the Murray Darling Basin, and measurements

of wetland water use are also required for equitable allocations

among all water users. Surface - groundwater connectivity and water

quality issues must also be considered in a complete water balance

framework, rather than one solely based on quantity estimates of

recharge or streamflow. Continuous improvement of information and

hydrologic understanding should be the basis for better decision

making and adaptive management of water resources.

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4.7 Water use efficiency

Water use efficiency (WUE) can be considered at a range of scales: at

the foliar gas exchange level, at the canopy level, at the whole plant

level, at the stand level and at the catchment level. Here WUE is

defined as the amount (weight, volume) of harvestable product per

unit of water used. PNC073-0708 (page 4) demonstrated that for

plantations in Mediterranean type climates such as over much of

southern Australia, both WUE and overall wood production increase

with tree water use when water and not nutrition is the growth-limiting

factor. Under these circumstances in order to produce a given

amount of wood it would be better to plant trees in areas where they

will use more water rather than less. This presupposes that competing

weeds are controlled, that evaporation of water from soil is minimised

and that nutrients are not growth limiting. Taking this one step further,

WUE would be increased by encouraging rather than discouraging the

use of shallow groundwater and irrigation would also increase WUE.

However, both of these would be controversial and not worth arguing

the case.

Consequently it makes more sense for policy makers to allocate to

plantation managers an amount of water to be used rather than an

area to be planted in order to produce a given amount of wood. This

would give the silviculturalist maximum flexibility and managers long-

term security of the plantation estate. Generally the best silviculture to

improve productivity will increase water use efficiency. Currently

methods of water allocation to plantations are not suited to allocation

on a water used basis and it would require a significant shift in thinking

by both policy makers and plantation managers to achieve this. Even

so, it is a worthwhile objective.

There is the risk that trees well supplied with water will be at greater risk

of mortality in times of drought. This can be controlled to some extent

by thinning and spacing.

4.8 Economic and environmental benefit

Water policy should be directed towards optimizing the value of

allocated water across the range of uses within a water allocation

zone (e.g. irrigated and rain-fed agriculture, plantations, drinking water,

environmental flows, etc). The objective should be to maximize value

by analyzing trade-offs between alternate land uses. Inevitably

differences of opinion and expressions of self-interest will arise. It is

important that the full value of both plantations and native forests are

recognized in negotiations. Water use efficiency of plantations could

be further defined as economic benefit per unit of water used.

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Economic benefit here is not simply defined as company profitability

but as overall national benefit. Also, plantations bring biodiversity and

water quality benefits. This, however, needs to be balanced against

potential negative effects on downstream ecosystems resulting from

reduced stream flows.

In this context there is scope for research analyzing the economic and

environmental benefit of plantation forestry compared with alternative

land uses within water allocation zones.

4.9 Plantations and salinity

Tree clearing in the past over large areas of southern Australia resulted

in an increase in groundwater recharge which mobilized salts deeper

in the soil and brought them close to, even breaching, the surface.

Planting with trees can reverse this effect. Tree planting in saline areas

has the potential to improve the quality of otherwise non-potable

water to that fit for human consumption and agricultural use. This

could occur over time periods as little as one decade. However,

salinity reduces tree productivity and wood quality. FWPA 's main focus

is promoting high value wood production and as such should not invest

in salinity related research.

4.10 Plantations and water quality (other than salinity)

Native forests appropriately managed and in the absence of wildfire,

provide higher quality water than land cleared for agriculture. This is

also the case for plantations although the public at large generally

does not appreciate this. Providing current codes of practice are

adhered to (roading, harvesting, fertilizing, buffers, pesticides),

plantations will yield better quality water than most agricultural pursuits

where management interventions are usually more intense and more

frequent. Codes of Forest Practice usually preclude clearing of

vegetation near streams and require the preservation of buffers to

arrest the movement of sediment into streams. However, in other parts

of the world planting stream management zones (SMZs) with perennial

vegetation, including trees, is seen as a way to protect water quality

against agricultural activities that encroach on streams. Neary et al.

(2010) suggest that, properly managed, commercial tree plantings

could be carried out in SMZs in Australia. This could be an opportunity

for commercial forestry but would need considerable background

research to ensure that it is 'safe' and of course the impacts on water

quantity would need to be taken into consideration. There is no

suggestion here that the requirement for buffer strips in plantation

establishment should be relaxed in any way. Rather the idea is that

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commercial tree planting could help to rehabilitate SMZs where

agricultural activity has fouled the streams. FWPA should not invest in

research in this area at the moment but should keep a watching brief.

Wildfires can cause immediate and extreme deterioration in water

quality.

4.11 Native forests

The role of native forests in affecting water quality and quantity is

orders of magnitude more important than that of plantations. The area

of native forests is much larger than that of plantations. Also native

forests are very important in supplying drinking water to urban

populations and in ensuring environmental flows. Even so, there are

many catchments where agricultural activities lay alongside or

downstream from large areas of native forest.

All native forest is vulnerable to wildfires of varying intensities from mild

to catastrophic. Wildfire can greatly and quickly reduce water quality.

The Canberra fire of 2003 is a good example of this. Prescribed burning

may assist in reducing the occurrence and intensity of wild fires but in

itself, unless properly managed, can be a source of deterioration in

water quality. Usually the areas of prescribed burning are small

enough for there to be no significant effect on water quality but the

impact of greatly increasing the annual area to be burnt, as

recommended in the 2010 Royal Commission in Victoria, is not known.

There is need for further research of fire effects on water quality in

native forests.

A very small percentage of native forests in Australia are available for

harvesting and consequently any harvesting effects on water issues will

be correspondingly small overall. However, there may be significant

local effects on both water quantity and water quality if not properly

managed. This is of particular concern in catchments that supply

drinking water. Areas in Australia that are selectively logged (e.g.

coastal forests north of Sydney) and the Jarrah forests of Western

Australia are mainly water positive, i.e. logging increases water yield.

Natural regeneration in these areas is usually not vigorous enough to

cause any problem. Jarrah forests are heavily thinned to increase

water yield but this results in large wastage of biomass. In areas where

clear felling or island harvesting regimes are practiced (e.g. eastern

Victoria and Tasmania), vigorous regrowth can reduce water yield.

Much has been made of the Kuczera curves. This relationship was

developed from rainfall and runoff data collected from predominantly

Eucalyptus regnans catchments that were completely or partially burnt

by the 1939 fires. The Kuczera curves predict a sudden but short-lived

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increase in water yield following a large scale clearing event (fire or

clear-felling) followed by a decline in water yield to a minimum at

about 20 to 30 years, followed by a gradual rise back to 'old growth'

levels at about 100 years of age (see Vertessy et al. 2001). However,

these classic and often quoted curves are based on large-scale

clearing (near 100%) of Eucalyptus regnans by wildfire. This does not

represent current harvesting practices in Australia's native forests.

Almost all significant areas of Eucalyptus regnans in Victoria are

reserved in the Melbourne water catchments and unavailable for

harvesting. More research is needed on the water release curves of

forest types actually being harvested and under the harvesting regimes

that are practiced. Current research is looking at the effects of fire,

regrowth management and thinning on water yield.

Native forests exert overwhelming control over drinking water and

environmental flows. At the national scale native forests exert far more

control on water supplies than do plantations. There have been

significant reductions in harvesting in native forests over the past few

decades and currently plantations provide approximately 70% of

Australia's wood harvest and increasing. Consequently agencies other

than FWPA should have the major responsibility for research in native

forests. FWPA should focus its investment on plantations.

4.12 Climate change and carbon

The effect of increased carbon-dioxide concentrations in the

atmosphere together with slightly increased temperatures will

accelerate photosynthesis and therefore plant productivity up to the

point that water and/or nutrients become limiting. Also, increases in

rainfall are predicted at the global scale. Consequently increased

global productivity overall has been predicted as a result of global

warming. However, in regions where decreases in rainfall are

predicted, productivity of forests, including plantations, will be reduced

and the relative impact of forests on reducing water yield in

catchments will be greater. Predictions of climate change at the large

scale are rough and predictions at the regional scale are even

rougher. The safest way of looking at future climate is that it will be

uncertain and forward planning should be about climate uncertainty.

There may be increased frequency and intensity of wildfires. There

may be increased pestilence. Both of these will reduce forest

productivity but can be managed in plantation forests.

Increased concentrations of carbon dioxide will increase WUE, which

may be expressed as increased productivity, reduced ET or a

combination of both. Increased temperatures will increase vapour

pressure deficit (VPD) and therefore ET if relative humidity (RH) remains

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unchanged or decreases. The impact that these interactions will have

on ET is uncertain. Research is required but this is not appropriate for

FWPA investment.

The effect of the recent long drought period in southern Australia has

confounded the interpretation of the effect of increasing plantation

areas on water availability. It is a great challenge to the modellers to

unravel this. It is likely there are cases where reduced water availability

has been wrongly blamed on plantation establishment when it has

largely been caused by drought.

Much has been made about the potential of planting trees in low

rainfall areas to gain carbon and biodiversity credits. Plantations in

these areas would hardly provide a commercial timber crop and as

such is not relevant to FWPA.

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5. RECOMMENDATIONS

FWPA has limited funds to invest and must be strategic in order to meet

its goal of improving profitability and reducing risk to levy payers. The

following recommendations are based on interviews with key industry

players and with those research providers who have developed a

relationship with industry. Regrettably there are important areas of

research that miss out. The recommendations are essentially risk

mitigation strategies. However, it is clear that failure to address these

issues would almost certainly reduce profitability. It will impact on

whether or not new areas can be planted and even whether current

plantation areas can be replanted.

There was a strong consensus that the collection, continuity,

consolidation and security of data are of paramount importance and

that all parties should have unencumbered access to a

comprehensive and well-maintained national database of

hydrological data from forested catchments. This is not a research

issue and there will be no specific research recommendation on it.

However, it is of such fundamental importance that FWPA should keep

a watching brief to see whether there are any ways it can assist.

Perhaps a scoping study would be appropriate. Also FWPA might act

as an agent to bring appropriate parties together for discussion.

Models

Current models are inadequate to represent forest water use when

developing water policy and allocating water to competing land uses.

Recommendation 1: FWPA will invest in the development of models

that account for all interceptors at finer scales of space and time.

It is difficult to put a price on this but the consequences of not having

and applying good models will mean that plantation enterprises will

not have the information available for them to get a fair deal when

allocations are being negotiated. Past experience has shown that if

plantation managers do not have good information, their water use is

likely to be overestimated. If a water licence is an initial start up cost

that has to be carried with interest over the rotation, then this may

make all the difference between success and failure, or indeed

whether it is worth acquiring the land in the first place. Even if the

licence comes only at a nominal cost it still pegs the amount of new

land available for plantation establishment. Also, the possibility of

retrospectivity is a worry. Priority should be given to groundwater

systems.

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PRC071-0708 (page 4) agrees with his. Better testing, integrating and

validating should be a high research priority.

It follows from the above that the impact of pre-harvest water for Life

Cycle Analysis (LCA) of timber is based on generalisations that over-

emphasize water use. Better models will provide better information for

Life Cycle Inventory (LCI) and LCA.

FWPA is looking for comprehensive objective data that is accepted

across the range of land users. Consequently the ideal arrangement

would be for research to be carried out within teams that represent the

range of primary producers co-existing within key catchments where

plantation forestry is considered to have an impact. This will have two

benefits. Firstly, agreement at the research stage will assist with

reaching agreement at the policy stage. Secondly it provides the

opportunity for co-funding from other primary producing interests (e.g.

GRDC). A good investment would be to encourage the use of APSIM

in meeting the modelling recommendation.

Plantation impacts are more significant in ground water systems than

surface water systems and research should be focussed on these

where possible.

Remote sensing

Remote sensing is a promising cost-effective option for measuring forest

water use.

Recommendation 2: FWPA will invest in research into remote sensing at

appropriate scale to measure water use of the range of land uses in

catchments containing plantations.

The outcome will be less expensive monitoring and model

development. Currently the most relevant remote sensing expertise

resides with CSIRO, the Commonwealth Department of Meteorology,

the University of Melbourne, the University of NSW, various state water

agencies and DPIs, and SKM. The NWC retains an overarching interest.

Some agencies, e.g. CSIRO, are concerned with improving accuracy.

This necessitates constructing more flux towers and improving

algorithms. Arguably the nearest to best of the most recent research of

direct relevance to FWPA is the NWC sponsored project carried out by

SKM looking at remote sensing of water use in the Green Triangle (SKM

2010, and page 14). This research did not deliver a completely

satisfactory outcome because of insufficient ground-based data over

long enough time periods for calibration. Also there are concerns

about the accuracy of SEBAL in this environment. However, further

research investment in the Green Triangle is justified to produce a

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better result. The Green Triangle is the area with the most water use

data, an area of great economic importance for plantation forestry

and also the area in which water allocation problems are evident.

Alternatively, additionally or coincidentally FWPA could focus remote

sensing research in those catchment(s) where investment will be made

in further model development. Ideally investment could be made in

remote sensing research carried out in parallel with an APSIM based

modelling project in a catchment where plantations are considered to

have a significant impact. This may or may not be the Green Triangle

but a good case can be presented that it should.

Allocation

Ultimately the objective should be for forestry to get a fair deal in

negotiation with water policy developers and for the agricultural

community to understand and accept that plantation forestry is a

legitimate land use within the broader primary industry community

concerned with fair and equitable access to water.

Recommendation 3: FWPA will invest in research to analyse trade-offs

between plantations and alternate land-uses in optimising economic,

environmental and social benefits and to have these recognised and

accepted by the developers of water policy and by the community at

large. Implicit in this is the need for plantations to have a 'licence to

operate' within the broader primary industries community competing

for access to water.

The need is to undertake appropriate sociological research to

understand and manage the potential conflicts involved. This involves

understanding the social dynamics in collective decisions made about

water allocation. The forest industry (growers and processors) needs to

be proactive rather than reactive in negotiation. This necessitates

understanding the various players and processes in order to make best

use of the reliable information gained from improved models. This

should include research into how the decisions are made, how much

information is required to make defensible decisions and how dynamic

are the policy settings to ensure security of future investment in the

industry.

Proposals for funding should as a priority address specific

catchments/ground water systems where water is at, near or over

allocated and where plantations cover an area large or consolidated

enough for them to have a known or suspected impact. Ideally they

would cover the same catchments/ground water systems as those

used in recommendations 1 and 2, although quality proposals from

other areas may also be considered. A state government committee is

handling the research and policy surrounding the role of plantations on

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the Gnangara mound and FWPA need not be involved. Water

allocation policy and practice in the South Australian part of the Green

Triangle has already been set to some extent but should not be

immune from careful scrutiny. It is ironical that, arguably, the best

research information on water use in any plantation area in Australia is

in the Green Triangle and yet the information is too site specific and

limited to provide enough information for rational and fair decisions on

water allocation. FWPA should support any initiative that critically

analyses the pathway that set current water policy in the South

Australian part of the Green Triangle with the objective of learning how

plantation forestry might have been better involved in policy setting

and how plantation forestry may yet be partners in a reconsidered

policy. Such research should benefit plantation forestry as a whole.

FWPA could also support a project that looks at water policy setting in

a surface catchment where plantation expansion would have an

impact.

Ideally a successful proposal will have the major competing land users

involved. This will be challenging because agricultural interests may

judge they have nothing to gain and potentially something to lose by

entering into research partnerships. It would be essential however that

water policy makers and regulators are involved as research partners

rather than as uninvolved parties or worse as combatants.

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6. RESEARCH PLAN

Research on the impact of plantations on water mostly has past the

pre-competitive stage. It is more significant in some regions than

others. Clearly research should be focussed on areas with significant

impacts, particularly in catchments that are fully allocated. From this

perspective significant direct regional industry co-investment is

expected. Ideally, research teams should not be confined to forestry

interests but should cover the broad spectrum of competitive land

uses. FWPA could achieve this cost-effectively by co-investing with

larger funders (e.g. NWC) to incorporate FWPA's particular interests.

PRC115-0809 (page 7) is a good example.

FWPA will allocate $1,250,000 over the period 2011 to 2015 as follows.

The direct industry investment in water research over the period 2005-

2010 (Table 1) was a low 2% of total funding. The expectation is that

industry will directly invest more than in the past. Preference will be

given to projects with significant direct industry investment.

Table 2: Proposed investment by FWPA over the period 2011-2015.

Recommendation 2011 2012 2013 2014 2015 Total

Models $100,000 $150,000 $150,000 $150,000 $50,000 $600,000

Remote sensing $50,000 $100,000 $100,000 $100,000 $50,000 $400,000

Allocation $50,000 $50,000 $50,000 $50,000 $50,000 $250,000

Total $200,000 $300,000 $300,000 $300,000 $150,000 $1,250,000

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7. ABBREVIATIONS

AFPA Australian Forest Products Association

APSIM Agricultural Production Systems Simulator

ASDI Australian Spatial Data Infrastructure

AVHRR Advanced Very High Resolution Radiometer

CAT Catchment Analysis Tool

CSIRO Commonwealth Scientific and Industrial Research

Organisation

FWPA Forests and Wood Products Australia

ET Evapotranspiration

DPI Department of Primary Industry

FCFC Forest Cover Flow Change

GRDC Grains Research and Development Corporation

LAI Leaf Area Index

LCA Life Cycle Analysis

LCI Life Cycle Inventory

METRIC Mapping Evapotranspiration at High Resolution with

Internalized Calibration

MDB Murray Darling Basin

MODIS Moderate Resolution Imaging Spectroradiometer

NAFI National Association of Forest Industries

SEBAL Surface Energy Algorithm for Land

NWC National Water Commission

NWI National Water Initiative

RH Relative Humidity

SKM Sinclair Knight Merz

SMZ Stream Management Zone

VPD Vapour Pressure Deficit

WUE Water Use Efficiency

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8. REFERENCES

Benyon, R.G. and Doody, T.M. (2004). Water use by tree plantations in

southeast South Australia. CSIRO Forestry and Forest Products

Technical Report No. 148. CSIRO Mt Gambier SA.

Benyon, R.G. and Doody, T.M. (2005). Regional scale, spatially explicit

quantification of plantation forest water use. CSIRO final report to

FWPA Project PN04.4010.

Benyon, R., England, J., Eastham, J., Polglase, P. and White, D. (2007).

Tree water use in forestry compared to other dry-land agricultural crops

in the Victorian context. Report to the Victorian Department of Primary

Industries. Ensis, Canberra, 83pp.

Beverly, C., Bari, M., Christy, B., Hocking, M. and Smetton, K. (2005).

Salinity impacts from land use change; comparison between a rapid

assessment approach and a detailed modeling framework. Australian

Journal of Experimental Agriculture 45: 1453-1469.

Brown, A.E., McMahon, T.A., Podger, G.M. and Zhang, L. (2006). A

methodology to predict the impact of change in forest cover on flow

duration curves. Science Report 8/06. CSIRO Land and Water,

Canberra.

CSIRO. (2011). CSIRO Technical Comments on the Guide to the

Proposed Basin Plan. CSIRO, 18pp.

Donohue, R.J., McVicar, T.R., Lingtao, L. and Roderick, M.L. (2010). A

data resource for analysing dynamics in Australian ecohydrological

conditions. Austral Ecology 35: 593-594.

Landsberg, J.J and Waring, R.H. (1997). A generalized model of forest

productivity using simplified concepts of radiation-use efficiency,

carbon balance and partitioning. Forest Ecology and Management

95:209-228.

Morris, J.D. (2003). Predicting the environmental interactions of

eucalypt plantations using a process-based forest model. Pages 185-

192 in J.W. Turnbull (ed). ACIAR Proceedings on Eucalypts in Asia, No

111, Zhanjiang, Peoples Republic of China, 7-11 April 2003.

Murray–Darling Basin Authority (2010). Guide to the proposed basin

plan: overview. Murray–Darling Basin Authority, Canberra.

NAFI. (2011). Opening Statement by the National Association of Forest

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Industries to the House of Representatives Standing Committee on

Regional Australia Inquiry into the Impact of the Murray-Darling Basin

Plan in Regional Australia. NAFI 3pp.

Neary, D.G., Smethurst, P.J., Baillie, B.R., Petrone, K.C., Cotching, W.E.

and Baillie, C.C. (2010). Does tree harvesting in streamside

management zones adversely affect stream turbidity? - preliminary

observations from an Australian case study. J. Soil Sediments 10: 652-

670.

O'Grady, A.P., Carter, J. and Holland, K. (2010). Review of Australian

groundwater discharge studies of terrestrial systems. CSIRO Water for a

Healthy Country, Canberra, pp 56.

O'Loughlin, E. and Nambiar, E.K.S. (2001). Plantations, farm forestry

and water – a discussion paper. Water and Salinity Issues in

Agroforestry No. 8, RIRDC Publication No. 01/37.

SNK. (2010). Assessment of plantation water use in south-west Victoria

and south-east South Australia using SEBAL remote sensing technology.

National Water Commission funded project on application of remotely

sensed evapotranspiration to improve water accounting and

management.

Vertessy, R.A. Watson, F.G.R. and O’Sullivan, S.K. (2001). Factors

determining relations between stand age and catchment water

balance in mountain ash forests. Forest Ecology and Management 143:

13-26.

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9. APPENDIX 1: CONSULTAION

AFPA Richard Stanton

Mick Stephens

CRC Forestry Gordon Duff

CSIRO Auro Almeida

Mat Gilfedder

Anthony O'Grady

Philip Polglase

Tivi Theiveyanathan

Don White

Lu Zhang

Forests NSW Ashley Webb

Forestry Plantations Queensland Ken Bubb

Forest Products Commission (WA) Stuart Crombie

John McGrath

Forestry SA Jim O'Hehir

Don McGuire

Forestry Tasmania Sandra Roberts

Gunns Ian Ravenwood

SA Water Board Graham Allison

SKM Robert Molloy

University of Melbourne Richard Benyon

Patrick Lane

VicForests Michael Long


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