Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2016-2017
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
RENEW AUSTRALIA BILL 2017
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator Di Natale)
RENEW AUSTRALIA BILL 2017
OUTLINE
Australia's energy system is in transition, leading to significant disruption as old generators
close and new generation and storage technologies transform how we produce and consume
energy.
The old energy system, extensively privatised and managed with outdated rules and
institutions is not adequately managing the transition.
The Australian Greens committed at the last election to establish a new government authority,
Renew Australia, which will be responsible for managing the transition of our energy system
by planning and delivering on a 15 year pipeline of clean energy projects and managing the
closure of coal power plants to enable Australia to meet an overall renewable energy target of
90% by 2030.
Renew Australia will also be responsible for assisting workers and communities affected by
the phase out of fossil fuel power stations.
The Renew Australia Bill 2017 establishes Renew Australia, an independent public authority
to plan and drive the transition to a new clean energy system.
Renew Australia has law reform functions, an advice function, and renewable energy project
functions, relating to achieving the new energy objectives.
Renew Australia will drive Australia's transformation into a clean energy powerhouse and
utilise a combination of mechanisms, including:
driving down costs and creating a highly-skilled, clean energy workforce through a
staged pipeline of construction projects over the next 15 years;
accessing capital raised by the Commonwealth for publicly owned and operated clean
energy assets and contracting with clean energy companies to build these renewable
energy power plants;
running 'reverse' auctions for the construction of lowest cost clean energy assets, with
a preference awarded to community owned energy projects and those projects that
commit to buy their materials and employ people locally;
encouraging workers to purchase energy infrastructure through superannuation funds
which hold billions of dollars available to be invested in nationally significant
infrastructure;
negotiating clean power supply deals to attract energy intensive, 21st century
industries to Australia like data centres, battery gigafactories, carbon fibre
construction and advanced manufacturers;
attracting construction and employment to areas that are undergoing structural
challenges arising from the global energy transformation;
carrying out the necessary planning work in securing location for clean energy
projects, organising grid connections and setting the timing of construction projects;
managing the phase out of fossil fuel power stations by working with the energy
market regulators to ensure coal and gas plants are switched off at times which ensure
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no threat to electricity supply;
administering the Clean Energy Transition Fund to provide a just transition for
workers and communities affected by the shutdown of coal and gas power stations
and the mines which supply them by providing retraining, industry assistance and
other support; and
working with the Commonwealth Scientific and Industrial Research Organisation
(CSIRO), Australian Renewable Energy Agency (ARENA), Clean Energy Finance
Corporation (CEFC) and new energy companies in order to bring Australian clean
technology innovation right through to full commercial deployment and ready for
export.
NOTES ON CLAUSES
Part 1 - Preliminary
Clause 1: Short Title
1. This is a formal provision and specifies that the short title of the Bill, once enacted,
may be cited as the Renew Australia Act 2017.
Clause 2: Commencement
2. This clause provides that the Sections 1-3 of the Act will commence on the day the
Act receives the Royal Assent. Sections 4-66 and Schedule 1 will commence on a single day
to be fixed by Proclamation. However if the provisions do not commence within a 6 month
period from the date this Act receives the Royal Assent, they commence on the day after the
end of that period.
Clause 3: Objects
3. This clause lists the objects of the Bill: to help reduce Australia's greenhouse gas
pollution by transforming Australia's electricity system; to create a new statutory authority to
oversee the transformation of this system; to achieve new energy objectives; to ensure a
transition plan for affected communities; and to ensure that the closure of coal fired power
stations happens in a planned manner.
Clause 4: Simplified outline of this Act
4. This clause provides a simplified outline the Act.
Clause 5: Definitions
5. This clause outlines definitions in the Act.
Clause 6: Crown to be bound
6. This clause states that the Act will bind the Crown in all its capacities.
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Clause 7: Extension to external Territories
7. This clause states that this Act extends to every external Territory.
Clause 8: Extra-territorial application
8. This clause states that this Act extends to acts, omissions, matters and things outside
Australia.
Part 2 - Renew Australia
Division 1 - Establishment
Clause 9: Establishment
9. This clause establishes Renew Australia as a body corporate that must have a seal,
may acquire, hold and dispose of real and personal property and may sue and be sued.
Division 2 - Functions
Clause 10: Functions - general
10. This clause provides for the general functions of Renew Australia including law
reform, advice, renewable energy project, support to affected communities and workers and
any other functions conferred on it by this Act or other law. Renew Australia can do anything
incidental or conducive to the performance of the above functions.
Clause 11: Law reform functions
11. This clause provides that Renew Australia's law reform functions are to review and
propose changes to Commonwealth, State and Territory laws relating to electricity
generation, to consult with Commonwealth, State and Territory governments about the
proposed changes, to recommend Commonwealth law changes to the Minister and to publish
reviews and proposals on its website. This clause also:
provides the new energy objectives of Renew Australia;
provides Renew Australia's responsibility to lay out a timetable for planned closure of
coal-fired power stations;
outlines Renew Australia's principles for investment in the national electricity grid.
provides that Renew Australia must consider the desirability of complementary
Commonwealth, State and Territory legislation when considering law reform under
paragraph (1)(b);
states that if complementary legislation is not possible, recommended changes must
assume that the changes will be implemented through Commonwealth legislation;
states that recommended changes must be accompanied by draft legislation; and
states that Renew Australia must give the Minister recommendations for law reform
within 12 months of commencement and at other times as it thinks fit.
Clause 12: Advice function
12. This clause outlines that Renew Australia will provide advice to the Minister and
Commonwealth, State and Local governments in relation to the new energy objectives
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including sources of renewable energy, particular electricity generation projects, models for
return on investment on electricity generation projects and how affected communities and
workers can adapt.
Clause 13: Renewable energy project functions
13. This clause outlines Renew Australia's renewable energy project functions to build,
finance, own or operate renewable energy projects and run reverse auctions for new private
sector renewable energy projects. This clause also states that Renew Australia may only take
action that is in the public interest.
Clause 14: Functions - constitutional limits
14. This clause provides the constitutional limits under which Renew Australia operates.
Clause 15: Minister may give directions
15. This clause sets out the directions that the Minister may give to Renew Australia.
Clause 16: Commonwealth consent to conferral of functions etc. on Renew Australia by
State and Territory laws
16. This clause states that a law of a State or Territory may confer powers or functions on
Renew Australia.
Clause 17: How duty is imposed on Renew Australia by State and Territory laws
17. This clause outlines how duty is imposed on Renew Australia by State and Territory
laws.
Clause 18: When State and Territory laws impose duty on Renew Australia
18. This clause outlines when State and Territory laws impose duty on Renew Australia.
Division 3 - Power, privileges and immunities
Clause 19: Renew Australia's Powers
19. This clause sets out Renew Australia's powers.
Clause 20: Renew Australia does not have privileges and immunities of the Crown
20. This clause provides that Renew Australia does not have the privileges and
immunities of the Crown.
Part 3 - Board of Renew Australia
Division 1 - Establishment and functions
Clause 21: Establishment
21. This clause establishes the Renew Australia Board.
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Clause 22: Functions of the Board
22. This clause sets out the functions of the Renew Australia Board.
Division 2 - Board Members
Clauses 23-32
23. These clauses provide for the membership, appointment, remuneration, leave of
absence, resignation and termination of board members and the chair of the board.
Division 3 - Meetings of the Board
Clauses 33-39
24. These clauses set out the practice for meetings and decisions of the board.
Part 4 - Chief Executive Officer, staff and consultants and committees
Division 1 - Chief Executive Office of Renew Australia
Clauses 40-50
25. These clauses provide for the appointment of the Chief Executive Officer of Renew
Australia and sets out the conditions of employment.
Division 2 - Staff and consultants
Clauses 51-52
26. These clauses set out the basis under which staff and consultants can be engaged.
Division 3 - Committees
Clauses 53-54
27. These clauses provide for the establishment of committees to advise or assist the
board and sets out the terms in which they are engaged.
Part 5 - Finance
Clause 55: Money payable to Renew Australia
28. This clause sets out that the Parliament may appropriate money for Renew Australia
and that the Finance Minister may give directions about the money payable to Renew
Australia. Any written direction given by the Finance Minister is not a legislative instrument.
Clause 56: Application of money by Renew Australia
29. This clause prescribes that the application of money by Renew Australia may only be
applied in the performance of its functions and the exercise of its power or in payment of any
remuneration or allowances payable under this Act. As under section 59 of the Public
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Governance, Performance and Accountability Act 2013, money that is not immediately
required for the purpose of Renew Australia may be invested.
Clause 57: Borrowing from the Commonwealth
30. This clause provides that the Finance Minister may lend money to Renew Australia
out of money appropriated by the Parliament.
Clause 58: Borrowing from persons other than the Commonwealth
31. This clause sets out that Renew Australia may borrow money from persons other than
the Commonwealth with the written approval of the Treasurer. This money may be partly or
wholly in foreign currency,
Clause 59: Guarantee of borrowing
32. This clause determines that the Treasurer may guarantee the money borrowed by
Renew Australia from persons other than the Commonwealth.
Clause 60: Renew Australia may give security
33. This clause provides that Renew Australia may give security over the whole or part of
its assets for the performance by Renew Australia of any obligation under section 57 or 58 or
the payment to the Commonwealth of amounts paid by the Commonwealth under a
guarantee.
Clause 61: Renew Australia may charge fees
34. This clause determines that Renew Australia may charge fees in relation to its
function.
Clause 62: Taxation
35. This clause sets out that Renew Australia is not subject to taxation under any law of
the Commonwealth, State or Territory. A note on this clause prescribes that Renew Australia
may be subject to taxation under certain laws, for example, section 66 of the Fringe Benefits
Tax Assessment Act 1986.
Part 6 - Miscellaneous
Clause 63: Delegation by Renew Australia
36. This clause provides that Renew Australia may delegate all or any of its powers or
functions under this Act to a board member or the CEO. In exercising these powers, the
delegate must comply with any directions of Renew Australia.
Clause 64: Delegation by Board
37. This clause provides that the board may delegate any of its powers or functions under
this Act to a board member or the CEO. In exercising these powers, the delegate must comply
with any directions of Renew Australia.
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Clause 65: Delegation and subdelegation by CEO
38. This clause provides that the CEO may delegate any CEO powers or functions to a
senior member of staff referred to in section 51. In exercising these powers the delegate must
comply with any directions of the CEO.
Clause 66: Rules
39. This clause provides that the Minister may prescribe matters by making rules. These
rules cannot create an offence or civil penalty, provide power of arrest, detention, entry
search or seizure, impose a tax, determine an amount to be appropriated from the
Consolidated Revenue Fun under an appropriation in this Act or directly amend the text of
this Act.
Schedule 1 - Timetable for phased closure of coal-fired power stations
Clause 1: Timetable for phased closure of coal-fired power stations
40. This schedule sets out the proposed timetable for phased closure of coal-fired power
stations referred to in subsection 11(3).
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Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Renew Australia 2016
This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the Bill
The Bill establishes the Renew Australia, an authority to plan and drive the transition to a
new clean energy system.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
This Bill is compatible with human rights as it does not raise any human rights issues.
Senator Di Natale
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