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2013-2014
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
AUSTRALIAN RENEWABLE ENERGY AGENCY (REPEAL) BILL 2014
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Industry,
the Honourable Ian Macfarlane MP)
AUSTRALIAN RENEWABLE ENERGY AGENCY (REPEAL) BILL 2014
OUTLINE
The Australian Renewable Energy Agency (Repeal) Bill ("the Bill") will close the Australian
Renewable Energy Agency by repealing the Australian Renewable Energy Agency Act 2011
("the Act").
The Act sets out the legislative framework for the establishment of the Australian Renewable
Energy Agency (ARENA) and its objectives, which are to improve the competitiveness of
renewable energy and related technologies and to increase the supply of renewable energy.
The Act also details ARENA's governance arrangements and the funding available for
ARENA, to provide financial assistance for renewable energy projects, research and
development activities, and activities to capture and share knowledge.
The provisions of the Bill will commence on Royal Assent, at which time the Commonwealth
Minister and Department of Industry will assume responsibility for ARENA commitments,
assets and liabilities, and any undecided applications for financial assistance from ARENA
will lapse.
FINANCIAL IMPACT STATEMENT
Taking into account previous government decisions to change ARENA's funding, ARENA
currently has $2.357 billion of available funds, of which over $1 billion is committed,
resulting in a potential saving to government of almost $1.3 billion in uncommitted funding.
REGULATION IMPACT STATEMENT
A short-form RIS was prepared which the Office of Best Practice Regulation (OBPR) agreed
was in line with Best Practice Regulation requirements. OBPR considers that the proposed
changes will have a minor impact on business, community organisations or individuals. The
average regulatory cost saving for businesses arising from the Bill are estimated to be around
$1.8 million annually (see table below). These savings primarily arise from businesses not
having to comply with ARENA grant conditions.
Regulatory Burden and Cost Offset (RBCO) Estimate Table
Average Annual Compliance Costs (from Business as usual)
Costs ($m) Business Community Individuals Total Cost
Organisations
Total by Sector ($1.8) $0 $0 ($1.8)
Cost offset ($m) Business Community Individuals Total by
Organisations Source
Agency $ $ $ $
Within $ $ $ $
portfolio
Outside $ $ $ $
portfolio
Total by Sector $ $ $ $
Proposal is cost neutral? yes no
Proposal is deregulatory yes no
Balance of cost offsets $1.8m
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
AUSTRALIAN RENEWABLE ENERGY AGENCY (REPEAL) BILL 2014
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 Australian Renewable Energy Agency Repeal Bill will close the Australian Renewable
Energy Agency by repealing the Australian Renewable Energy Agency Act 2011 ("the Act").
The Act sets out the legislative framework for the establishment of ARENA and its
objectives, which are to improve the competitiveness of renewable energy and related
technologies and to increase the supply of renewable energy. The Act also details ARENA's
governance arrangements and the funding available for ARENA, to provide financial
assistance for renewable energy projects, research and development activities, and activities
to capture and share knowledge.
Human rights implications
The amendments provide for the winding up of ARENA. They do not engage any human
rights issues.
Conclusion
This Bill is compatible with human rights as it does not raise any human rights issues.
The Minister for Industry, the Honourable Ian Macfarlane MP
AUSTRALIAN RENEWABLE ENERGY AGENCY (REPEAL) BILL 2014
NOTES ON CLAUSES
Clause 1 - Short title
Provides for the Act to be cited as the Australian Renewable Energy Agency (Repeal) Act
2014.
Clause 2 - Commencement
Provides for the Act to commence on the day the Act receives Royal Assent.
Clause 3 - Schedule(s)
Provides that each Act that is specified in a schedule is amended or repealed as set out in the
applicable items in the schedule and that any other item in a schedule has effect according to
its terms.
Schedule 1-- Amendments
Part 1--Repeal
Australian Renewable Energy Agency Act 2011
Item 1 provides for the repeal of the Australian Renewable Energy Agency Act 2011 in its
entirety.
The purpose of this repeal is to abolish the Australian Renewable Energy Agency (ARENA)
by repealing the Australian Renewable Energy Agency Act 2011 and to provide for the
transition of ARENA commitments to the Department.
The Government has been very clear that we are facing a Budget emergency and savings
have to be achieved to return the Budget to surplus. The return of most of ARENA's
uncommitted funding will deliver a saving of almost $1.3 billion.
The Agency has already provided or committed over $1 billion in funding to support
renewable energy projects across all stages of the innovation chain - from research in the
laboratory to large scale technology demonstration projects. The total value of these projects
is around $2.8 billion.
$1 billion dollars is still a very significant investment in renewable energy, particularly when
the Renewable Energy Target scheme is also driving significant investment in renewable
energy. The Government wants to see ARENA's existing projects delivered over the coming
years, before committing more money.
In view of the limited funding available for new projects, the Government has also decided to
move management of ARENA's functions and existing commitments into the Department of
Industry. Closing ARENA as an independent agency will deliver efficiencies and allow for
greater oversight of this expenditure by the Minister.
Part 2--Transitional provisions
Part 2 sets out transitional arrangements to provide for the winding up of ARENA and the
transfer of its assets, liabilities and functions to the Department of Industry.
Division 1--Introduction
Item 2 introduces a number of definitions for the purposes of this Part 2. These definitions
include Agency, asset, assets official, commencement time, liability and Secretary.
Division 2--Transfer of assets and liabilities
Items 3 and 4 provide for the transfer of ARENA's assets and liabilities to the Department of
Industry. Under these items, on commencement, ARENA's assets and liabilities shall vest in
the Commonwealth.
Item 5 provides that if an asset vests in the Commonwealth under this Division 2, and a
certificate identifying the relevant asset has been lodged with a person or authority, that
person or authority can deal with or give effect to the certificate. This item is intended to
provide for the transactional certificates in respect of assets such as banking records or
dealing pertaining to the personal property register.
Division 3--Transfer of other matters
Items 6 provides that any acts of ARENA shall be attributed to the Commonwealth after
commencement. Under this item, anything done by, or in relation to, ARENA prior to
commencement, shall have effect as if that thing had been done by, or in relation to, the
Commonwealth.
Item 7 provides for the substitution of the Commonwealth as a party to certain pending
proceedings after commencement. Under this item, any pending court or tribunal proceedings
to which ARENA was a party prior to commencement time, shall have effect as if it had been
done by, or in relation to, the Commonwealth.
Item 8 provides for the transfer of records from ARENA to the Department of Industry.
Under this item all records and documents that were in the possession of ARENA prior to
commencement time, are to be transferred to the Department.
Item 9 provides for references to ARENA in certain instruments to be deemed to be
references to the Commonwealth on commencement. This item shall apply to the following
types of instruments:
an instrument that was made by ARENA;
an instrument to which ARENA was a party;
an instrument that was given to, or in favour of, ARENA;
an instrument under which any right or liability accrues or may accrue to ARENA;
any other instrument in which a reference is made to ARENA.
Under this item, the term, instrument, shall include:
a contract, undertaking, deed or agreement;
a notice, authority, order or instruction; and
an instrument made under an Act or under regulations.
This item does not apply to an exempt instrument. An exempt instrument is defined to mean
an Act; or any instrument made under this Act; or an instrument specified under subitem (4).
Subitem (4) provides that the Minister may, by legislative instrument, specify one or more
instruments as an exempt instrument.
Division 4--Reporting obligations
Item 10 provides for the arrangements in relation to the final annual report on ARENA's
operations during its final reporting period.
Under this item, if at commencement, ARENA has not given a final annual report to the
Minister, the Secretary must prepare and give a report on the operations of the Agency during
the final reporting period to the Minister for presentation to the Parliament.
If however, at commencement, ARENA has given a report to the Minister for the financial
year ending before the commencement time, the Secretary must prepare and give such a
report to the Minister for the period beginning at the start of the financial year (in which the
commencement time occurs) and ending immediately before commencement.
In preparing the report, the Secretary may include the report in the Department's annual
report for the financial year in which the last day of the final reporting period occurs.
If the Secretary does not include the report in the Department's annual report, then the
Secretary must give the relevant report to the Minister within 3 months after the end of the
final reporting period. In special circumstances, the Minister may grant the Secretary an
extension of time to provide the report to the Minister.
On receipt of the report, the Minister must table it in each House of the Parliament as soon as
practicable. The Secretary must also publish the report on the Department's website as soon
as practicable after the report is tabled in the House of Representatives.
Division 5--Other matters
Item 11 provides clarification that there shall be no transfer of the appointments,
engagements or employment of certain officers of ARENA in relation to the Commonwealth.
This item applies to the following officers:
a member of ARENA's Board; or
a member of a committee established by the Board; or
the Chief Executive Officer of ARENA; or
the Chief Financial Officer of ARENA; or
a consultant engaged by ARENA.
Item 12 provides for arrangements in relation to undecided applications for financial
assistance received by ARENA. Under this item, if the application has not resulted in an
agreement for the provision of financial assistance or has been refused, the application shall
lapse on commencement.
Item 13 provides that no stamp duty and other State or Territory tax shall be payable by the
Commonwealth in relation to an exempt matter. Under this item, an exempt matter is one
relating to the vesting of an asset or liability or any other matter provided for under this Part
2. Subitem (2) allows the Minister to certify in writing that a specified matter is an exempt
matter. Subitem (4) clarifies that in all courts, and for all purposes (other than for the
purposes of criminal proceedings), a certificate issued by the Minister under subitem (3) is
prima facie evidence of the matters stated in the certificate.
Item 14 makes clear that any certificate made or issued under this Part 2 is taken to be
authentic and properly given unless the contrary is established.
Item 15 allows the Minister to delegate his powers and function under this Part 2 to the
Secretary or an SES officer of the Department of Industry. A delegate must comply with any
directions of the Minister in the exercise of power or function under the delegation.
Item 16 makes provision for compensation for any acquisition of property resulting from the
operation of this Schedule 1. This item makes clear that if such an acquisition has occurred
within the meaning of paragraph 51(xxxi) of the Constitution, the Commonwealth is liable to
pay a reasonable amount of compensation to the person. If however, the Commonwealth and
the person do not agree on the amount of the compensation, the person may institute
proceedings in a court of competent jurisdiction for the recovery from the Commonwealth of
such reasonable amount of compensation as the court determines.
Item 17 allows the Minister to make transitional rules. These rules may deal with transitional
matters arising out of the amendments and repeals made by this Schedule 1. Any such
transitional rule is a legislative instrument for the purposes of the Legislative Instruments Act
2003.