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2019-2020-2021
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
Snowy Hydro Corporatisation Amendment (No New Fossil Fuels) Bill 2021
EXPLANATORY MEMORANDUM
and
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Circulated by authority of
Adam Bandt MP
Snowy Hydro Corporatisation Amendment (No New Fossil Fuels) Bill 2021
OUTLINE
The Bill would have the effect of prohibiting Snowy Hydro from doing any of the following:
Develop, construct or be involved in the development or construction, of new fossil
fuel-based electricity generation capacity;
Acquire, purchase or otherwise invest in, or be involved in acquiring, purchasing or
investing in, new fossil fuel-based electricity generation capacity;
Operate, or be involved in the operation of, new fossil fuel-based electricity
generation capacity.
However this prohibition would only impact 'new' fossil-fuel based electricity generation
capacity, which would not include:
Fossil fuel-based electricity generation capacity that derives from assets or facilities
that a Snowy hydro-group company owns, controls or operates immediately before
the day this section commences
Fossil fuel-based electricity generation capacity that derives, or will derive, from
assets or facilities that a Snowy hydro-group company is required to construct,
develop, acquire, purchase, invest in or operate under a binding contract entered
into by a Snowy hydro-group company before the day this section commences.
The Bill would also insert a new objects clause, a new subsection of the short outline and
a number of new definitions in order to facilitate these changes.
FINANCIAL IMPACT
The bill will have no financial impact.
NOTES ON CLAUSES
Clause 1: Short Title
This clause provides for the Act to be cited as the Snowy Hydro Corporatisation
Amendment (No New Fossil Fuels) Act 2021.
Clause 2: Commencement
This clause provides for the whole of this Act to commence the day after it receives Royal
Assent.
Schedule 1--Amendments
Amends the Snowy Hydro Corporatisation Act 1997
Items 1- 2:
Introduces an additional objects clause to the Act, which contextualises the prohibition on
the creation or investing in new fossil fuel-based electricity generation capacity within the
goal of reducing Australia's greenhouse gas pollution
Item 3:
Updates the short outline to reflect that Snowy Hydro and Snowy hydro-group companies
may not be involved in creating or investing in new fossil fuel-based electricity generation
capacity.
Item 4:
Defines 'fossil-fuels' and 'fossil fuel-based electricity generation capacity' for the purposes
of the Act. These definitions reflect the definition prescribed in regulation 7 of the
Renewable Energy (Electricity) Regulations 2001 for the purposes of section 17 of the
Renewable Energy (Electricity) Act 2000.
Items 5-6:
a) Sets out a number of restricted actions that Snowy Hydro and Snowy hydro-group
corporations cannot undertake, including the development or construction of new
fossil fuel-based electricity generation capacity, the acquisition, purchase or
investment in new fossil fuel-based electricity generation capacity and the operation
of new fossil fuel-based electricity generation capacity
b) Defines 'new' for the purposes of the Act, noting that fossil fuel-based electricity
generation capacity does not count as new if it derives from assets or facilities that
a Snowy hydro-group company owns, controls or operates immediately before the
day this section commences, or is required to construct, develop, acquire,
purchase, invest in or operate under a contract entered into before the day this
section commences.
This item is only mean to apply to existing generation assets, not to assets such a
land, existing renewable generation capacity or other assets that would not be
classed as fossil fuel-based electricity generation capacity assets.
c) Makes clear that directors of Snowy Hydro and Snowy hydro-group companies
have an obligation to ensure that the above sections are complied with.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Snowy Hydro Corporatisation Amendment (No New Fossil Fuels) Bill 2021
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 would have the effect of prohibiting Snowy Hydro from doing any of the following:
Develop, construct or be involved in the development or construction, of new fossil
fuel-based electricity generation capacity;
Acquire, purchase or otherwise invest in, or be involved in acquiring, purchasing or
investing in, new fossil fuel-based electricity generation capacity;
Operate, or be involved in the operation of, new fossil fuel-based electricity
generation capacity.
However this prohibition would only impact 'new' fossil-fuel based electricity generation
capacity, which would not include:
Fossil fuel-based electricity generation capacity that derives from assets or facilities
that a Snowy hydro-group company owns, controls or operates immediately before
the day this section commences
Fossil fuel-based electricity generation capacity that derives, or will derive, from
assets or facilities that a Snowy hydro-group company is required to construct,
develop, acquire, purchase, invest in or operate under a binding contract entered
into by a Snowy hydro-group company before the day this section commences.
The Bill would also insert a new objects clause, a new subsection of the short outline and
a number of new definitions in order to facilitate these changes.
Human rights implications
This bill does not engage any of the applicable rights or freedoms, other than to promote
the safety and wellbeing of people by helping to ensure a safe climate.
Conclusion
This bill is compatible with human rights because it does not otherwise raise any human
rights issues.
Adam Bandt MP