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2008 - 2009
THE PARLIAMENT OF THE COMMONWEALTH OF
AUSTRALIA
HOUSE OF REPRESENTATIVES
AUSTRALIAN CENTRE FOR RENEWABLE ENERGY BILL 2009
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Resources and Energy
the Hon Martin Ferguson MP)
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AUSTRALIAN CENTRE FOR RENEWABLE ENERGY BILL 2009
The purpose of this Bill is to establish the Australian Centre for Renewable Energy
(ACRE) Board and the position of Chief Executive Officer of ACRE.
ACRE is an initiative under the Clean Energy Initiative (CEI). It will complement the
Carbon Pollution Reduction Scheme and expanded Renewable Energy Target by
supporting the research, development and demonstration of low-emission and
renewable energy technologies. The CEI also includes:
� the Carbon Capture and Storage Flagships Program, involving funding to
support the construction and demonstration of large-scale integrated carbon
capture and storage projects in Australia; and
� the Solar Flagships Program, involving funding to support the construction
and demonstration of large-scale solar power stations in Australia.
� The Australian Solar Institute, which will support solar research and
development and encourage collaboration between Australian researchers as
well as with international solar researchers and institutions.
ACRE's objective will be to promote the development, commercialisation and
deployment of renewable energy and enabling technologies and to improve their
competitiveness in Australia. It will achieve this by:
a) developing and implementing a funding strategy capable of supporting
projects along the innovation chain;
b) encouraging additional investments, including investments from the private
sector and State and Territory governments;
c) managing the cost effective delivery of Government funded renewable energy
and enabling technology programs;
d) providing support and advice to governments, industry and the community on
renewable energy and enabling technologies, strategies and related issues
when requested;
e) fostering collaboration between governments, industry and the research
community on renewable energy projects;
f) supporting growth in skills and capacity in renewable technologies for the
domestic and international markets; and
g) any other activities that it is directed to do by the Government to support
renewable energy and enabling technologies.
Australian Government funded renewable energy technology programs have evolved
in an uncoordinated fashion across agencies over a number of years. To address this,
and to provide additional benefits to stakeholders, ACRE will become the
Government's one-stop shop for Australian renewable energy businesses,
consolidating a number of Government programs.
ACRE will become the central point of contact for support in the Australian
Government for renewable energy and enabling technologies. It will also bring
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together a large amount of information on renewable energy and enabling
technologies and will allow for better tracking and bench-marking of outcomes. All
new renewable energy technology programs are expected to be delivered through
ACRE. A focus will be to build on the research and development funded through
other bodies, such as the Australian Solar Institute and the Australian Research
Council, taking technologies to further development, pilot or small-scale
demonstration, and commercialisation.
The principal function of the ACRE Board will be to advise the Minister on
renewable energy and enabling technologies. This may include advice on:
(i) strategies to fund and promote the development, commercialisation and use of
renewable energy technologies;
(ii) the funding of renewable energy technology projects and measures;
(iii) the management of renewable energy technology programs;
(iv) improving existing program delivery;
(v) the provision of venture capital funding;
(vi) priority areas for government support;
(vii) establishing links with State and Territory government agencies and the private
sector with a view to developing strategies for stimulating investment in
renewable energy technologies.
A key activity of the ACRE Board will be to advise on the development of funding
and promotion strategies for renewable energy technology development,
commercialisation and use. These strategies may include new funding programs and
new measures, such as marketing initiatives, business mentoring, and other general
business support for the renewable energy industry. In terms of funding for promising
renewable energy technologies, grants, loans, collaborative funding arrangements or
other types of support may be considered.
The ACRE Board, with support from Departmental staff of the Department of
Resources, Energy and Tourism, will design programs and measures that are capable
of supporting renewable energy technologies along the innovation chain, to help bring
these technologies to market. A key expectation is that the ACRE Board will be
innovative in its advice to Government on program design, ensuring that the
Government's investment is maximised, and projects are supported flexibly and
creatively to build a solid portfolio of renewable energy and enabling technologies for
Australia's energy future.
A key function will be overseeing the provision of venture capital funds to help grow
promising renewable energy technologies. The ACRE Board will advise on how best
to provide such funds. In addition to supporting renewable technologies, the ACRE
Board will investigate what support the businesses developing these technologies may
need in terms of business skills, for example, and will provide recommendations to
Government.
In order to provide final recommendations to the Minister or the Minister's program
delegate on the funding of renewable energy technology projects and measures, the
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ACRE Board will perform evaluations and assessments on the proposals for those
projects and measures. This may be done by the ACRE Board, or, for matters
requiring specialist advice, by external consultants.
Program management will be undertaken by ACRE. The ACRE Board may wish to
review existing management practices and infrastructure and will advise on where
improvements may be achieved. Program management should be efficient and
effective, and should enable the gathering of useful information on renewable energy
and enabling technologies to inform the ACRE Board, the Government and the
broader community, as required.
The ACRE Board will have access to a broad range of information on renewable
energy and enabling technologies, through the programs ACRE manages, the
stakeholders ACRE interacts with, and the projects it funds. This will enable the
ACRE Board to have a key role in advising Government on the state of renewable
energy technologies in Australia through knowledge of its own client base, such as
optimum collaboration and network models for renewable energy technology
innovation and commercialisation; barriers to renewable energy technology
innovation and commercialisation; prospects for collaboration domestically and
internationally; the impact of regulation, and standards, skills and training
requirements for the renewable energy technology industry.
The ACRE Board will have the capacity to advise on priority areas for Government
support; this may be particular stages in the innovation chain, or particular skills gaps
in renewable energy technology businesses, for example.
While the ACRE Board will play a key leadership role in promoting renewable
energy technologies, state and territory governments have a strong role to play in
supporting renewable energy and enabling technology development. In addition to
investing in promising technologies, they can assist with regulatory issues, site
locations, and advice on what particular technologies are most appropriate for their
local conditions. The ACRE Board is expected to form strong relationships with state
and territory governments and encourage partnerships where possible in growing this
important industry. In addition, the ACRE Board will play a key role in encouraging
investment from the private sector, to help lower the cost of promising technologies
entering the market.
The ACRE Board will be an independent body under the Minister for Resources and
Energy, comprising a Chair, a CEO of ACRE as an ex-officio member and up to 6
other members. The members will be appointed by the Minister based on their
knowledge or experience in fields relevant to the ACRE Board's functions. Staff
assisting the ACRE Board will be employees of the Department of Resources, Energy
and Tourism, and will be employed under the Public Service Act 1999.
The Bill also provides for the establishment of the position of CEO of ACRE. The
CEO will be an employee of the Department of Resources, Energy and Tourism. The
CEO will be a key component of the ACRE leadership team, and will have a role in
promoting renewable energy and enabling technologies. The CEO will administer
ACRE on a day-to day basis.
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Financial impact statement
This Bill will have no financial impact.
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NOTES ON CLAUSES
PART 1--PRELIMINARY
Clause 1 - Short title
Clause 1 is a formal provision specifying the short title of the Bill.
Clause 2 - Commencement
This clause provides that the Act will commence on the day the Act receives the
Royal Assent.
Clause 3 - Definitions
This clause sets out the definitions of terms that are relied on in other provisions
throughout the Bill.
The clause includes a definition of 'renewable energy technologies'. These are
technologies where the energy is generated from natural resources and which can be
constantly replenished. The definition states that 'renewable energy technologies'
include 'enabling technologies'. Enabling technologies are those technologies that
enable renewable energy technologies to function more effectively within an
electricity grid.
The other definitions are straightforward and do not require additional explanation.
PART 2--THE AUSTRALIAN CENTRE FOR RENEWABLE ENERGY BOARD
Division 1--Establishment and functions of the Board
Clause 4 - Establishment
Clause 4 is a formal provision establishing the Australian Centre for Renewable
Energy Board (the Board).
Clause 5 - Functions
This clause sets out the functions of the Board. The principal function of the Board is
to advise the Minister about renewable energy technologies. The subjects which the
Board is to advise the Minister about include:
(i) strategies to fund and promote the development, commercialisation and use of
renewable energy technologies - these strategies may include new funding
programs and new measures, such as marketing initiatives, business mentoring,
and general business support for the renewable energy industry. Such programs
and measures will be capable of supporting renewable technologies along the
innovation chain. The Board will be expected to take an innovative approach to
ensure that the Government's investment is maximised;
(ii) the funding of renewable energy technology projects and measures - the Board
may evaluate and assess applications for funding under the programs that
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ACRE administers and, following the assessment process, can make
recommendations to the Minister or the Minister's program delegate on which
projects or measures should be supported and what funding should be provided;
(iii) the management of renewable energy technology programs - the Board will
play an active role in ensuring the management of ACRE's renewable energy
and enabling technology programs is effective and efficient, and that
appropriate information is collated for research purposes;
(iv) improving existing program delivery - the Board may review existing
management practices and infrastructure and make recommendations as to
possible improvements;
(v) the provision of venture capital funding - the Board will oversee the provision
of venture capital funds to help grow promising renewable energy technologies
and advise the Government on how to best provide such funds;
(vi) priority areas for government support - for example, this may be particular
stages in the innovation chain, or particular skills gaps in renewable energy
technology businesses;
(vii) establishing links with State and Territory government agencies and the private
sector with a view to developing strategies for stimulating investment in
renewable energy technologies - such investment will help lower the cost of
promising technologies entering the market and encourage further investment as
confidence builds. The Board will aim to form strong relationships with State
and Territory government agencies and the private sector.
The Minister may also confer other functions on the Board, by a direction in writing.
Subclause 5(2) provides that a direction given by the Minister which confers
functions on the Board is not a legislative instrument. This provision has been
included for the assistance of readers because a direction under this clause is not a
legislative instrument within the meaning of section 5 of the Legislative Instruments
Act 2003.
Clause 6 - Minister may give directions to the Board
Clause 6 outlines the circumstances in which the Minister may direct the Board to
perform its functions. Directions must by in writing and must be of a general nature
only. In order to ensure the independence of advice, the Minister cannot give
directions to the Board in relation to the content of any advice that may be given by
the Board.
Subclause 6(5) provides that a direction given by the Minister to the Board in relation
to the performance of the Board's functions is not a legislative instrument. The
provision has been included for the assistance of readers because a direction under
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this clause is not a legislative instrument within the meaning of section 5 of the
Legislative Instruments Act 2003.
Division 2--Members of the Board
Clause 7 - Membership
This clause sets out who the members of the Board will be. The Board will have a
Chair, the ACRE CEO (as an ex-officio member), and up to six other members.
Clause 8 - Appointment of members
Members of the Board (other than the CEO) will be appointed by the Minister in
writing. Members will be required to have relevant knowledge or expertise so that
they can contribute to the functions of the Board. These appointments are made on a
part time basis.
Clause 9- Term of appointment
This clause provides that a member is appointed for the time specified by the Minister
in the instrument of appointment. The period of appointment must not exceed 2
years, however, a member is eligible for reappointment. The Minister is able to make
appointments for less than two years.
Clause 10 - Acting appointments
The Minister may appoint a member to act as the Chair should the Chair become
unavailable for any reason to ensure that the functions of the Board can be progressed
in the Chair's absence. A breadth of contributions to the Board can also be
maintained by allowing the appointment of acting members when there are temporary
or permanent vacancies.
Clause 11 - Remuneration
This clause provides that a member is to be paid remuneration determined by the
Remuneration Tribunal, including any allowances. The Remuneration Tribunal is
required to determine remuneration for offices that meet the definition of 'public
office' in section 3(4) of the Remuneration Tribunal Act 1973. This definition
includes all offices established under laws of the Commonwealth.
Clause 12 - Leave of absence
Clause 12 outlines the leave provisions for members and the Chair.
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Clause 13 - Disclosure of interests to the Minister
This clause outlines the requirements for members to declare interests. To maintain
the Board's integrity and to ensure that the Government has confidence in the advice
it gives means it is important that members make the Minister fully aware of any
interests, pecuniary or otherwise.
Clause 14 - Disclosure of interests to the Board
This clause provides that members must disclose their interests in matters being or
about to be considered by the Board, so that the Board can manage any potential or
actual conflicts. This clause ensures that members are required to disclose any
conflicts to the meeting and ensure that proper procedures are followed where
conflicts are identified.
Clause 15 - Other terms and conditions
This clause provides for terms and conditions of office, not otherwise provided for in
the Act, to be determined by the Minister.
Clause 16 - Registration of members
This clause outlines the formal arrangements for the resignation of members.
Clause 17 - Termination of appointment
This clause sets out the conditions under which the Minister may terminate the
appointment of a member.
Division 3--Meetings of the Board
Clause 18 - Convening meetings
This clause outlines the provisions relating to the number and location of meetings of
the Board.
Clause 19 - Presiding at meetings
This clause outlines the role of the Chair to preside at meetings or for members to
appoint a member to preside in the Chair's absence.
Clause 20 - Quorum
This clause outlines the number of members needed to form a quorum and the special
circumstances when a member leaves the meeting due to a conflict of interest.
Clause 21 - Voting at meetings
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This clause outlines the rules relating to making decisions on matters at meetings.
Clause 22 - Conduct of meetings
Clause 22 allows the Board to establish rules for the conduct of its meetings.
Clause 23 - Minutes
This clause requires the Board to keep minutes of meetings.
Clause 24 - Decisions without meetings
This clause allows the Board to conduct business out of session should it determine it
necessary and outlines the rules for making decisions under these circumstances.
Division 4--Reports
Clause 25 - Annual Reports
The Board must report to Parliament through the Minister each year on its activities.
PART 3 - Chief Executive Officer
Clause 26 - Chief Executive Office
This clause provides that the Secretary must designate a person within the Department
of Resources, Energy and Tourism to be a CEO of ACRE. That person must be an
SES employee and the designation must be in writing.
Subclause 26(3) provides that an instrument under clause 26(1) which designates a
person as the CEO of ACRE is not a legislative instrument. The provision has been
included for the assistance of readers because a designation under this clause is not a
legislative instrument within the meaning of section 5 of the Legislative Instruments
Act 2003.
Clause 27 - Staff and consultants
This clause provides for staff and other persons to assist the Board.
PART 4 - MISCELLANEOUS
Clause 28 - Delegation
This clause is a formal provision allowing the Minister to delegate certain functions
under the proposed Act.
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Clause 29 - Regulations
This clause is a formal provision allowing the Governor-General to make regulations
for the purposes of the proposed Act.