Constitution Amendment (SEC) Act 2024 (Vic)

Constitution Amendment (SEC) Act 2024

No. 36 of 2024

TABLE OF PROVISIONS

Section  Page

1Purpose

2Commencement

3Power for Parliament to alter Constitution Act 1975

4New Part IX inserted

5New Part X inserted

6Repeal of this Act

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Endnotes

1      General information

Constitution Amendment (SEC) Act 2024

No. 36 of 2024

[Assented to 22 October 2024]

The Parliament of Victoria enacts:

1Purpose

The purpose of this Act is to amend the Constitution Act 1975—

(a)to require that the State always has a controlling interest in the SEC; and

(b)to provide for the objects of the SEC; and

(c)to constrain the power of the Parliament to make laws repealing, altering or varying the provisions of the Constitution Act 1975 relating to the matters set out in paragraphs (a) and (b).

2Commencement

(1)Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed.

(2)If a provision of this Act does not come into operation before 15 November 2024, it comes into operation on that day.

3Power for Parliament to alter Constitution Act 1975

After section 18(2)(fab) of the Constitution Act 1975 insert—

"(fac)section 103; or".

4New Part IX inserted

After Part VIII of the Constitution Act 1975 insert—

'PART IX—THE SEC

100Definitions

In this Part—

electricity system means an interconnected transmission and distribution system used to convey and control the conveyance of electricity to which are connected—

(a)generating systems and other facilities; and

(b)loads;

fossil fuel facility means—

(a)a facility that—

(i)generates electrical power by using energy from the combustion of a fossil fuel; or

(ii)produces an energy source by primarily or directly using a fossil fuel; or

Example

Hydrogen is an energy source

(b)a mine at which mining for fossil fuels is primarily carried out; or

(c)a pipeline with the primary function of conveying—

(i)a fossil fuel in a gaseous or liquid state; or

(ii)materials or waste products derived from fossil fuels;

invest includes entering into a joint venture or partnership;

renewable energy generation activities means owning, operating or participating in the operation of—

(a)renewable energy generating systems and facilities; and

(b)renewable energy storage systems and facilities;

SEC means SEC Victoria Pty Ltd
(ACN 670 408 116) and includes any SEC successor entity;

SEC successor entity has the meaning given by section 101.

101Meaning of SEC successor entity

For the purposes of this Part, an SEC successor entity is a body corporate that is declared by each House of the Parliament, by resolution, to be a successor to SEC Victoria Pty Ltd (ACN 670 408 116) in the undertaking of renewable energy generation activities.

102Purpose of this Part

The purpose of this Part is to constrain the power of the Parliament to make laws repealing, altering or varying this section and sections 100, 101 and 104 to 107 to ensure that provisions requiring the following remain in force at all times as part of the law of Victoria—

(a)the State always has a controlling interest in the SEC;

(b)the SEC has the objects set out in section 105;

(c)the SEC does not—

(i)do anything contrary to the requirement that the State has a controlling interest in the SEC; or

(ii)own, operate or invest in a fossil fuel facility.

103Parliament's legislative power constrained in relation to repealing, altering or varying this Part

The Parliament may not by any Act, whether expressly or by implication, repeal, alter or vary sections 100 to 102 and 104 to 107.

104Requirement for State to always have controlling interest

(1)The State must always have a controlling interest in the SEC.

(2)For the purposes of subsection (1), the State has a controlling interest in the SEC if—

(a)in the case where the SEC is a body corporate in which shares have been issued, the State or a Minister on behalf of the State—

(i)controls the composition of the board of the SEC; and

(ii)is in a position to cast or control the casting of all of the votes that might be cast at a general meeting of the SEC; and

(b)in the case where the SEC is a body corporate established by or under an Act and in which shares have not been issued, the Governor in Council, a Minister or another person acting for or on behalf of the State has, under that Act or an instrument under that Act, the power to appoint—

(i)all of the directors or members of the governing board (by whatever name called) of the body corporate; or

(ii)if the body corporate is comprised of individuals who are not a governing board or one individual, those individuals or individual.

(3)Despite this Part or any other Act or law, the SEC may carry on business under the name "SEC", "State Electricity Commission of Victoria", "State Electricity Commission" or any other name.

105Objects of SEC

The SEC has the following objects—

(a)to support Victoria's transition to having an electricity system operating in Victoria in respect of which net zero greenhouse gas emissions are attributable to the electricity system's operation;

(b)to generate, purchase and sell electricity in Victoria;

(c)to own or operate or participate in the operation of—

(i)renewable energy generating systems and facilities; and

(ii)renewable energy storage systems and facilities;

(d)to develop or support, or participate in the development of, or invest in—

(i)renewable energy generating systems and facilities; and

(ii)renewable energy storage systems and facilities;

(e)to supply energy related products or services to energy consumers in Victoria;

(f)to develop and invest in strategic renewable energy generation and systems and facilities and strategic renewable energy storage systems and facilities necessary to maintain Victoria's energy system security and reliability in the long term.

106Prohibited activities

Despite any other Act or law, the SEC must not—

(a)if it is a body corporate in which shares have been issued—

(i)do anything contrary to section 104(2)(a); or

(ii)pay any dividend, or make any other distribution of profits to the shareholders of the SEC or the State; or

(b)if it is a body corporate established by or under an Act in which shares have not been issued, pay any dividend, or make any other distribution of profits to the State; or

(c)own, operate or invest in a fossil fuel facility.

107Certain activities void

(1)If the SEC is a body corporate in which shares have been issued, a transfer of shares in the SEC that results in the State or a Minister on behalf of the State not complying with section 104(2)(a)(i) is void.

(2)A payment of a dividend or a distribution of profits that contravenes section 106(a)(ii) or (b) is void.

(3)A contract or arrangement entered into, or deed executed, by the SEC that results in the SEC contravening section 106(c) is void.'.

5New Part X inserted

After Part IX of the Constitution Act 1975 insert—

"PART X—GENERAL

108Corporations Act displacement

Sections 104 to 107 are declared to be Corporations legislation displacement provisions for the purposes of section 5G of the Corporations Act in relation to the Corporations legislation.

Note

Section 5G of the Corporations Act provides that if a State law declares a provision of a State law to be a Corporations legislation displacement provision, any provision of the Corporations legislation with which the State provision would otherwise be inconsistent does not apply to the extent necessary to avoid the inconsistency.".

6Repeal of this Act

This Act is repealed on 15 November 2025.

Note

The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984).

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ENDNOTES

1   General information

See for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information.

Minister's second reading speech—

Legislative Assembly: 16 November 2023

Legislative Council: 6 March 2024

The long title for the Bill for this Act was "A Bill for an Act to amend the Constitution Act 1975 and for other purposes."

Constitution Act 1975:

Special majorities:

Legislative Assembly: 5 March 2024

Legislative Council: 12 September 2024