4th Jun 2024, 5:19 PM – Representatives Net Zero Economy Authority Bill 2024 - Consideration in Detail - Community engagements and plans; developer rating scheme

The majority voted against amendments introduced by Indi MP Helen Haines (Independent), which means they failed.

What do these amendments do?

Dr Haines explained that:

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.

Amendment text

(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.