Amendment 1
By leave—I move:
(9) Clause 16, page 18 (lines 3 to 6), omit subclause (2), substitute:
(2) In performing the Authority’s functions, the Authority should prioritise communities, regions, industries and workers that are or will be:
(a) in areas recognised by the Australian Energy Market Operator as renewable energy zones; or
(b) otherwise significantly affected by Australia’s transition to a net zero emissions economy.
(10) Page 21 (after line 28), after clause 19, insert:
19A Board must prepare annual work plan
(1) The Board must prepare and give to the Minister a work plan, in writing, for each financial year beginning on or after the commencement of this Act.
(2) The work plan for a financial year must set out:
(a) the main activities proposed to be undertaken by the Authority and the Board for the financial year and for the following 2 financial years, including activities relating to:
(i) the scheme prescribed for the purposes of section 68AD (the developer rating scheme); and
(ii) local energy hubs (see Part 5B); and
(iii) community benefit plans (see Part 5C);
(b) how those activities are proposed to be undertaken.
Note: For example, the work plan could include the following activities relating to Australia’s transition to a net zero emissions economy:
(a) capacity building in regions to guide future economic development;
(b) working with State-based regional transition authorities on particular activities;
(c) funding and facilitating the development and delivery of regional strategies to improve economic diversification.
Consultation on a draft work plan
(3) Before giving the Minister a work plan for a financial year, the Board must:
(a) prepare a draft of the work plan and give it to the Minister, the States, the Australian Capital Territory and the Northern Territory; and
(b) cause the draft work plan to be published on the Department’s website; and
(c) invite all interested bodies or persons to give the Authority written comments on the draft work plan within:
(i) 90 days after the invitation is given; or
(ii) such longer period as advised by the Authority.
The Board may also consult with any other person that the Board considers appropriate about the draft work plan.
(4) In preparing a work plan for a financial year, the Board must have regard to any comments given under paragraph (3)(c) in relation to the draft of the work plan.
Tabling and publishing a work plan
(5) The Minister must table each work plan in each House of the Parliament within 7 sitting days of that House after receiving the work plan under subsection (1).
(6) The Board must cause each work plan to be published on the Department’s website as soon as practicable after giving it to the Minister.
(7) A work plan prepared under subsection (1) is not a legislative instrument.
(11) Clause 20, page 22 (after line 16), at the end of the clause, add:
(5) A direction under subsection (1) must be consistent with this Act (including the object of this Act), with the Board’s functions and with the Authority’s functions.
(16) Clause 69, page 68 (line 5), after “including”, insert “the Authority’s budget”.
(17) Page 69 (before line 2), before clause 70, insert:
69A Minimum 10-year budget for the Authority
(1) If, by the end of the 6-month period beginning on the day this Act commences, no Commonwealth law sets out a budget for the Authority for each of the first 10 financial years starting on or after that commencement, the Minister must cause to be prepared a written report explaining the reasons why.
(2) The Minister must table the report in each House of the Parliament within 7 sitting days of that House after the end of that 6-month period.
These amendments really should be noncontroversial. These amendments are housekeeping, actually. They require the authority to undertake an annual work plan. That’s good practice. These are sensible, non-controversial amendments. It’s what the government ‘s owner Jobs and Skills Australia does so the public knows what the work is that this taxpayer funded body actually does.
These amendments require a long-term budget for the authority. Again, this isn’t a first-time idea. The Australian Renewable Energy Agency, the Clean Energy Finance Corporation and the National Reconstruction Fund all have legislated budgets. I would argue that, if the authority is such an important pillar in our transition to net zero, it should be guaranteed funding for 10 years. I understand that this government has a strong ambition for the Net Zero Economy Authority. We’re coming into an election period. Who’s to say who will be the next government? I would say to this government: Lock it in. Make sure that the Net Zero Economy Authority is set up to succeed, whoever is sitting in that chair.
These amendments would also ensure that the authority supports communities in renewable energy zones. This really is just so obvious to me. If we have a renewable energy zone determined in an area, this bill should apply to people in that area. It’s a really obvious but important amendment. The government like to talk about these renewable energy zones. They talk about them frequently. These are the areas across regional Australia that the Australian Energy Market Operator has identified as renewable-rich areas with the right infrastructure and transmission. There are two of them in my electorate. But residents in my electorate and others like it are not having a REZ explained to them at all. I really can’t believe there’s not one mention of renewable energy zones in a bill whose objects include ‘facilitating the achievement of Australia’s greenhouse gas emissions reduction targets’ and ‘ensuring Australia’s regions and workers are supported in relation to, and benefit from, Australia’s transition to a net zero emissions economy’. If REZs aren’t in the bill, then I ask the government: what do you think their role is in the net zero economy? I ask that with great conviction.
My amendments add a provision which ensures that the minister’s directions to the authority must not contradict the objects of the bill. Again, this is really tight housekeeping that future-proofs and protects this bill. It feels like an obvious amendment to me.
The transition to a future powered by clean energy is going to take more than a couple of election cycles. We must ensure that the authority is used for its intended purpose and is not used as a vehicle to pursue political aims. I hope people are listening at home, because we have seen this happen before. I don’t want to see that record played over again. Quite frankly, I don’t. I want to see this authority set up for the long term and to succeed.
Finally, I want to thank those individuals and organisations that have made such fulsome contributions to the Senate inquiry on this bill. Many of these have informed the amendments that I have put to the parliament today. One of the great joys of being an independent is to be able to look at those submissions really carefully and to engage with the community that I represent and to engage with civil society organisations who are really interested in good policy. So, in particular, I want to thank the RE-Alliance group, the Grattan Institute, the Australian Institute, the Australian Council of Social Service and Next Economy. I urge the government: do your housekeeping. I urge them to support these very sensible and modest amendments.
Amendment 2
By leave—I move amendments (12) and (13) on the sheet revised 29 May 2024, as circulated in my name, together:
(12) Clause 23, page 24 (lines 11 to 13), omit paragraph (2)(d), substitute:
(d) 1 other Board member with expertise or experience, professional credibility and significant standing in the field mentioned in paragraph (3)(h); and
(e) up to 3 other Board members with expertise or experience, professional credibility and significant standing in any of the fields mentioned in subsection (3).
(13) Clause 23, page 24 (lines 14 and 15), omit “Paragraphs (b) and (c) do not by implication limit paragraph (a) or (d).”, substitute “Paragraphs (b), (c) and (d) do not by implication limit paragraph (a) or (e).”.
These amendments would ensure the board, which provides advice to the authority, includes a member with expertise or experience, professional credibility and significant standing in regional development. These amendments are an obvious improvement to the bill. Without these amendments, having a board member with regional development credentials would only be optional. But regional development experience on the board is vital to the success of the authority; it shouldn’t be optional. To properly support regional communities, the authority must actually hear from a member from these communities. The authority must work with communities to determine what they need and want from the net zero energy transformation, and having somebody on the board who comes from the regions will help achieve this.
It’s not just living in the regions that will make this board member valuable; it’s about having experience in regional development too. When I talk about regional development, I’m talking about thriving, prosperous communities. I want to see this board member advocate for the transformational opportunity the net zero economy presents for regional communities—things like quality health care, available child care and well-paid, long-term jobs. I’m also talking about stable phone and internet connections, roads that aren’t riddled with potholes and a cheap, reliable source of energy that’s shared locally. This is what regional communities must expect from the net zero transformation, but it’s not being shown to them right now. A board member with regional development expertise is a step towards realising prosperous livelihoods in the regions in a net zero economy.
I don’t want to steal the minister’s thunder here, but I think I’m going to do it again because it’s important I say this: I understand the government will support these amendments, and I’m pleased that they will, of course. I thank the Assistant Minister to the Prime Minister and the Prime Minister himself for meeting with me and discussing what is something I feel very passionate about. I want to emphasise—and I really want you to listen carefully to this—that having a regional member on the board of the authority will only be as useful as the authority itself. A regional board member must not be there to only support the regional communities transitioning out of fossil fuel industries. At the same time, the board and the authority must direct its work to the regional communities transitioning into renewable energy; I’m going to keep saying it because it’s critical. I’m talking about the regional communities that are being told they are in renewable energy zones but don’t know what this means. These are communities that are suddenly being told that they are in ‘ideal’ locations for grid-scale solar farms with turbines and large battery storage systems—told, not invited to plan and participate in this massive transformation. Communities are not being given the opportunity to plan their futures right now. To achieve net zero with these communities, we must reframe the question from, ‘How do we gain their social licence?’ to ‘How do we achieve regional development and prosperity for them?’ I’m going to keep saying that too, because it’s just so critical.
My other amendments to this bill provide the pathways towards showing regional development—not merely writing it down in words but actually showing it. They’re about action. I’m disappointed that the government is not supporting them at this time, but I look forward to continued discussions with the government, including with the Prime Minister and the Minister for Climate Change and Energy, about how this can be realised. A board member with regional development experience is a good start, but we have a long way to go to ensure that their expertise is going to be utilised. I will be watching this very, very closely.
Amendment 3
By leave—I move amendments (1) to (8), (14) and (15) on the sheet revised 29 May 2024, as circulated in my name, together:
(1) Clause 3, page 2 (line 16), omit “ensure Australia’s regions and workers”, substitute “ensure Australia’s communities and workers, especially in regional, rural and remote Australia,”.
(2) Clause 3, page 2 (line 18), at the end of the clause, add:
; and (d) facilitate community leadership of economic diversification in response to Australia’s transition to a net zero emissions economy, in order to maximise outcomes for communities.
(3) Clause 5, page 5 (after line 23), after the definition of Commonwealth entity, insert:
community benefit plan means a plan made under subsection 68CB(3).
(4) Clause 5, page 6 (after line 6), after the definition of dependent employer, insert:
developer, of a net zero transformation initiative, includes a proponent and an operator of the project or initiative.
(5) Clause 5, page 7 (after line 21), after the definition of Kyoto Protocol, insert:
large renewable energy project has the meaning given by subsection 68AE(2).
(6) Clause 5, page 7 (after line 24), after the definition of likely to prejudice national security, insert:
local energy hub means a hub referred to in subparagraph 16(1)(db)(i) (see also Part 5B).
(7) Clause 16, page 17 (after line 24), after paragraph (1)(d), insert:
(da) to support communities that are hosting net zero transformation initiatives, especially those communities in areas where there has historically been agriculture and other forms of primary production;
(db) to:
(i) establish and maintain one or more local energy hubs in each region affected by Australia’s transition to a net zero emissions economy; and
(ii) develop community benefit plans for communities in each region affected by a net zero transformation initiative; and
(iii) assist with planning and coordinating other transitional measures to improve and embed sustainable local infrastructure and services that enhance wellbeing in each region affected by Australia’s transition to a net zero emissions economy;
(dc) to facilitate community leadership of economic diversification in response to Australia’s transition to a net zero emissions economy, in order to maximise outcomes for communities;
(8) Clause 16, page 18 (after line 2), at the end of the subclause (1), add:
Note 3: For subparagraph (db)(ii), a community benefit plan for a community affected by a net zero transformation initiative could include benefits such as:
(a) jobs in the initiative; or
(b) childcare services; or
(c) health services; or
(d) roads, bridges and other transport infrastructure; or
(e) public infrastructure; or
(f) cheap and reliable energy, including energy security during emergencies; or
(g) affordable housing; or
(h) communications services; or
(i) a community benefit fund.
(14) Page 67 (after line 27), after Part 5, insert:
Part 5A — Developers of net zero transformation initiatives
Division 1 — Preliminary
68AA Simplified outline of this Part
Before facilitating the participation of or investment by a developer from the private sector in a net zero transformation initiative as described in paragraph 16(1)(b), the Authority must ensure that:
(a) the developer has a high rating under the scheme mentioned in Division 2; and
(b) if applicable, the developer has allowed for community investment in the initiative under the scheme mentioned in Division 3.
Note: This Part only applies to a developer of a net zero transformation initiative to the extent that the Authority is performing the Authority’s function under paragraph 16(1)(b) in circumstances permitted by subsection 16(4).
68AB Concurrent operation of State and Territory laws
It is the Parliament’s intention that a law of a State or Territory should be able to operate concurrently with this Part unless the law is directly inconsistent with this Part.
Division 2 — Developer rating scheme
68AC Facilitating public and private sector participant and investment
Before facilitating the participation of or investment by a developer from the private sector in a net zero transformation initiative as described in paragraph 16(1)(b), the Authority must ensure that the developer has a high rating under the scheme prescribed for the purposes of section 68AD.
68AD Developer rating scheme
(1) The rules must prescribe a voluntary scheme for rating developers of net zero transformation initiatives in Australia.
(2) For the purposes of (but without limiting) subsection (1), the scheme must:
(a) empower the Authority to rate a developer’s or potential developer’s past or potential performance on:
(i) engagement relating to net zero transformation initiatives; and
(ii) providing benefits to communities affected by net zero transformation initiatives; and
(iii) locating infrastructure involved with net zero transformation initiatives; and
(iv) other specified matters relating to net zero transformation initiatives; and
(b) be designed to motivate developers to continuously improve on such matters; and
(c) provide for the criteria by which the Authority determines such ratings; and
(d) provide for how a developer or potential developer may apply for such a rating, which may include requiring applications to be made in a manner and form approved by the Authority; and
(e) provide for the regular review and updating by the Authority of:
(i) such ratings; and
(ii) the criteria for determining them; and
(f) provide that applications may be made to the Administrative Appeals Tribunal for review of decisions by the Authority under the scheme; and
(g) provide for the establishment and maintenance of a public register that records such ratings and the criteria for determining them.
Note: The scheme may provide for other matters.
(3) In designing the scheme, the Minister must have regard to consultation conducted by the Authority with:
(a) the Commonwealth, the States, the Australian Capital Territory and the Northern Territory; and
(b) peak bodies for local governments, industry and Indigenous persons; and
(c) representative community groups.
Division 3 — Community investment in large renewable energy projects
68AE Authority must ensure that developers of large renewable energy projects allow for community investment
(1) Before facilitating the participation of or investment by a developer from the private sector in a large renewable energy project as described in paragraph 16(1)(b), the Authority must ensure that the developer has complied with the scheme prescribed for the purposes of section 68AF.
(2) A large renewable energy project is a project or initiative that:
(a) is a net zero transformation initiative; and
(b) involves constructing, modifying or expanding a renewable energy generation facility in Australia having a maximum capacity of 10 MW or more; and
(c) starts on or after the commencement of this Act.
68AF Scheme for community investment in large renewable energy projects
(1) The rules must prescribe a voluntary scheme under which the developer of a large renewable energy project engages with all individuals living within 30 km of the project (the locals) and gives the locals a reasonable opportunity to invest in the project.
(2) For the purposes of (but without limiting) subsection (1), the scheme must ensure that this opportunity involves:
(a) rights to at least 20% of the profits from the project being offered to the locals; and
(b) the locals having been given a reasonable opportunity to consider and respond to the offer; and
(c) the consideration (if any) payable in exchange for the rights being reasonable, having regard to the market value of the rights; and
(d) the offer being structured in a way that is intended to ensure that the rights are acquired by a large number of locals rather than by just a few individuals.
(3) Subsection (2) does not prevent the rights mentioned in paragraph (2)(a) from being offered to anyone else, after the offer mentioned in that subsection closes, to the extent that the locals do not accept the offer.
(4) In designing the scheme, the Minister must have regard to consultation conducted by the Authority with:
(a) the Commonwealth, the States, the Australian Capital Territory and the Northern Territory; and
(b) peak bodies for local governments, industry and Indigenous persons; and
(c) representative community groups.
(15) Page 68 (before line 1), before Part 6, insert:
Part 5B — Local energy hubs
68BA Simplified outline of this Part
Local energy hubs are to provide support for regions affected by Australia’s transition to a net zero emissions economy.
68BB Local energy hubs
(1) When establishing and maintaining a local energy hub in a region affected by Australia’s transition to a net zero emissions economy (see subparagraph 16(1)(db)(i)), the Authority must ensure that the local energy hub is staffed by local outreach officers who are trained to support communities.
(2) To support the local energy hubs in a region that is also a region referred to in subsection 16(2), the Authority must establish and maintain an office in that region.
68BC Functions of local energy hubs
The functions of a local energy hub for a region are:
(a) to support each of the region’s communities, including as follows:
(i) engaging with developers of large-scale net zero transformation initiatives proposed in or near the community;
(ii) facilitating an understanding of net zero transformation initiatives proposed in or near the community, including concerns regarding fire risk, insurance premium increases and biosecurity risks;
(iii) communicating locally informed, clear expectations to industry on how the community would like to be engaged and participate in project plans for large-scale net zero transformation initiatives proposed in or near the community;
(iv) facilitating energy literacy programs targeted at low-income households to reduce energy costs;
(v) advising on household energy efficiency, electrification and bill savings;
(vi) assisting with accessing government grants and subsidies relating to Australia’s transition to a net zero emissions economy;
(vii) advising on the feasibility of community energy projects;
(viii) advising agricultural businesses looking to utilise clean energy technologies; and
(b) to assist with developing, and monitoring compliance with, community benefit plans relating to the region (see Part 5C); and
(c) to make recommendations to the Authority on the region’s needs and priorities; and
(d) any other functions conferred on the local energy hub by the Authority.
Note: A reference in this section to a net zero transformation initiative could include a renewable energy project or a project relating to transmission lines.
Part 5C — Community benefit plans
68CA Simplified outline of this Part
The Authority may work with:
(a) a developer of a net zero transformation initiative; and
(b) the communities, landholders, groups or individuals affected by that initiative;
to develop a community benefit plan.
The developer must comply with the plan.
68CB Identifying affected communities and making plans to benefit them
(1) The Authority must make reasonable efforts to identify the communities, landholders, groups or individuals (the affected entities) affected by each net zero transformation initiative.
(2) The Authority must make reasonable efforts to work with each developer of the initiative, and the affected entities, to identify ways how the developer can:
(a) engage with the affected entities; and
(b) provide benefits related to the initiative to those affected entities.
(3) The Authority may make a written plan requiring the developer of the initiative to:
(a) engage in one or more specified ways with the affected entities specified in the plan; and
(b) provide one or more specified benefits to those affected entities.
Note: For examples of benefits, see note 3 to subsection 16(1).
(4) The Authority must give a copy of the plan to:
(a) the developer of the initiative; and
(b) each of the affected entities or to their representatives.
68CC Compliance with community benefit plans
A person contravenes this section if:
(a) the person is a developer of a net zero transformation initiative; and
(b) the person is given a copy of a community benefit plan for the initiative; and
(c) the person fails to comply with the plan.
Civil penalty: 600 penalty units.
68CD Internal review of community benefit plans
(1) If the Authority decides to make a community benefit plan (the original decision), the Authority must give written notice of the original decision to the persons whose interests it affects. The notice must include a statement to the effect that such a person may, if the person is dissatisfied with the decision, apply to the Authority for an internal review of the original decision.
(2) Such an application by a person for an internal review of the original decision must:
(a) set out the reasons for the application; and
(b) be made within 28 days after the day the person is informed of the decision.
(3) Upon receiving such an application, the Authority must:
(a) reconsider the original decision; and
(b) decide to affirm, vary or revoke the original decision.
(4) This Act, other than subsections (1) and (2), applies to the decision under paragraph (3)(b) (the internal review decision) as if it were the original decision.
(5) The Authority must give written notice of the internal review decision to the applicant. The notice must include a statement to the effect that the applicant may, if the applicant is dissatisfied with the internal review decision, apply to the Administrative Appeals Tribunal in accordance with the Administrative Appeals Tribunal Act 1975 for review of the internal review decision.
(6) Failure to comply with this subsection (1) or (5) does not affect the validity of a decision.
68CE Review by the Administrative Appeals Tribunal
Applications may be made to the Administrative Appeals Tribunal for review of a decision of the Authority under paragraph 68CD(3)(b).
68CF Involving local energy hubs
The Authority is to involve the relevant local energy hub when:
(a) acting under section 68CB in relation to a net zero transformation initiative; and
(b) monitoring compliance with a community benefit plan.
These amendments are about realising community engagement and benefit in the net zero economy. They’re about showing regional Australia the pathway to a prosperous economy for future generations as we transition to a clean economy. The government says this bill is about promoting orderly and positive economic transformation associated with achieving net zero emissions. Unfortunately, though, the bill as currently drafted seems to only set out how to achieve this for communities transitioning out of fossil fuel industries. It does nothing for the communities in my electorate and across regional Australia that are transitioning into renewable energy for the very first time. Unless these communities are included in the bill, I truly struggle to see how a positive and orderly net zero economy will be realised. I truly do.
In Indi, farming communities are being approached to host massive solar farms and battery energy storage systems—key projects to get us to the government’s net zero target. But right now, let me tell you, some in these communities are fighting to prevent these projects getting off the ground. There are two reasons for this. They don’t feel like they are being fairly and respectfully engaged by project developers. Their questions are not answered in a way that relieves their worries about the impact on their insurance, their farms and the beautiful natural environment that surrounds them—the beautiful natural environment that they know is at peril from climate change but that they see changing in front of their very eyes, without any engagement that satisfies them. Second, the communities expected to host the large-scale renewable projects can’t see how this will bring long-term prosperity to the whole community.
My amendments offer practical ways for the government to ensure that renewable energy developers meaningfully engage with communities, they do it early, they do it often and they do it in a respectful way. My amendments would give powers for the authority to develop and implement local energy hubs. The minister says, quite clearly, that the authority will be the shopfront for industry and investors. But I ask: Where is the community? What about community members and landholders who want to know more about what this industry is planning in their region? A local energy hub would be the shopfront for local communities situated in towns across regional, rural and remote Australia, staffed by trusted, reliable people who know the community and can assist them with understanding the renewable energy being built, how developers should engage with them and what benefit they and the wider community can receive from the project.
My amendments also allow for a developer rating scheme. This is a recommendation of Professor Andrew Dyer’s Community Engagement Review, accepted in principle by the Minister for Climate Change and Energy, Chris Bowen. A developer rating scheme would show the public a developer’s track record on things like community engagement so that, when a landholder receives a letter in the mail or a knock on the door from a developer or prospector for the next solar farm, that landholder can assess whether that developer is in fact trusted and reputable.
Critically, my amendments create pathways for communities to achieve regional prosperity, and they do this by creating powers for the authority to administer community benefit plans. Like the energy industry jobs plan already in the bill, a community benefit plan would demonstrate tangible benefits to communities that find themselves at the forefront of energy generation, storage or transmission for the very first time. I’m talking about things as tangible as a share in the project itself or lower power bills for homes and businesses near the development. It could be skilling up workers for long-term jobs or investment in roads and affordable housing. It could be providing public transport or building a new mobile phone tower to improve telecommunications in a country town—true long-term, game-changing benefits, real benefits that developers can provide. If for-profit renewable energy developers want communities to host their projects, they must show what’s in it for the communities. But government tell me now that they won’t be supporting these amendments, because right now they want to focus on the communities transitioning out of coal- and gas-fired power stations. But surely this government can walk and chew gum at the same time. They can support the communities to transition while supporting communities experiencing a transition—communities who are not moving from coal and gas but communities who are now being asked to host large-scale grid developments. We need to think about all of them.