Untitled document
Energy and Resources Legislation Amendment Act 2010
No. 55 of 2010
TABLE OF PROVISIONS
Section Page
PART 1—PRELIMINARY
1Purposes
2Commencement
PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000
3Amendment of Division heading
4Definitions for purpose of Division 2A of Part 2
5Relevant augmentations
6Applicable charging principles
7Variation or revocation of licence
8Definition for purpose of Division 6A of Part 2
9Orders in relation to advanced metering infrastructure
10New section 46DA inserted
46DAInterrelationship of Orders and other provisions relating to tariffs
11Statute law revision
PART 3—AMENDMENT OF ELECTRICITY SAFETY
ACT 1998
12New section 1 substituted
1Purpose
13Definitions
14Objectives and functions of Energy Safe Victoria
15New section 7A inserted
7AEnergy Safe Victoria may have regard to the reliability and security of electricity supply in certain cases
16Amendment of heading to Part 8
17New Division 1A of Part 8 substituted
Division 1A—Bushfire mitigation requirements for certain operators of at-risk electric lines
Subdivision 1—Interpretation
83ADefinitions
Subdivision 2—General duties in relation to bushfire mitigation plans
83BGeneral duty of specified operators to minimise bushfire danger
83BASubmission of bushfire mitigation plans for
acceptance83BBCompliance with bushfire mitigation plan
Subdivision 3—Acceptance and validation of bushfire mitigation plans
83BCValidation of bushfire mitigation plans
83BDAdditional information
83BEAcceptance of bushfire mitigation plan
83BFProvisional acceptance of bushfire mitigation plan
83BGNon-acceptance of bushfire mitigation plan
83BHEnergy Safe Victoria may determine bushfire mitigation plan
83BIDuration of accepted bushfire mitigation plan
83BJCompliance audits for accepted bushfire mitigation plans—independent audits
83BKCompliance audits—Energy Safe Victoria
18New section 86A inserted
86AEnergy Safe Victoria may give directions for restriction or prevention of tree growth
19New Division 2A of Part 8 inserted
Division 2A—Electric lines and municipal fire prevention plans
86BMunicipal fire prevention plans must specify procedures for the identification of trees that are hazardous to electric lines
20New Division 4 of Part 8 inserted
Division 4—Compliance audits in relation to compliance with the Code
90AApplication
90BCompliance audits for management plans—independent audits
90CCompliance audits—Energy Safe Victoria
21Constitution of Committee
22New section 88A inserted
88ACommittee to consider reliability and security of electricity supply
23New Division 1AA of Part 10 inserted
Division 1AA—Interpretation
98AADefinitions
24General duty of major electricity companies
25Electricity safety management schemes
26New section 105A inserted
105ABushfire mitigation parts of initial accepted ESMS lapse by certain date
27New Division 2A of Part 10 inserted
Division 2A—Ongoing bushfire mitigation requirements for major electricity companies
113ASubmission of bushfire mitigation plans for
acceptance113BCompliance with bushfire mitigation plan
113CValidation, acceptance, provisional acceptance and determination of bushfire mitigation plans
113DAccepted bushfire mitigation plan forms part of accepted ESMS
113EDuration of accepted bushfire mitigation plan
113FInspection of overhead private electric lines
28Repeal of redundant provision
29Compliance audits—independent audits
30Compliance audits—Energy Safe Victoria
31Definition for purpose of infringement notices
32Director may give directions
33New section 141AB inserted
141ABInformation notices
34New section 149A inserted
149AReliability and security of electricity supply
35Electric line clearance
36New section 151A inserted
151ABushfire mitigation
37Statute law revision
PART 4—AMENDMENT OF NATIONAL ELECTRICITY (VICTORIA) ACT 2005
38New section 16B inserted
16BDisapplication of national smart meter rollout
provisions
39New Division heading inserted into Part 3
"Division 1—Interpretation"
40Definitions—Part 3
41New Division heading inserted
42New Division 3 of Part 3 inserted
Division 3—The f-factor scheme
16COrder in Council for establishment of f‑factor scheme
16DFunctions and powers conferred and duties imposed on AER
16EApplication of NEL provisions after the Victorian distribution pricing determination end date
16FInterrelationship between f‑factor determinations and distribution determinations
16GPower of AER to request information relating to
f-factor determinations
43Appeals against certain decisions or actions of the AER
44Statute law revision
PART 5—AMENDMENT OF ENERGY SAFE VICTORIA ACT 2005
45Grounds for the Director's removal from office
46New Division 5A of Part 2 inserted
Division 5A—Other matters
19AEnergy Safe Victoria must publish Charter
19BMemoranda of Understanding
PART 6—AMENDMENT OF MINERAL RESOURCES (SUSTAINABLE DEVELOPMENT) ACT 1990
47Objectives
48Definitions
49Offence to carry on extractive industry without authority
50Work plans
51Conditions of extractive industry work authorities
52New sections 77KA and 77KB inserted
77KAChief Inspector to be notified of reportable events in relation to quarries
77KBVariation application must be made if quarry is
declared
53Variation of an extractive industry work authority
54Report to be given about entry
55Regulations
56Statute law revision
PART 7—AMENDMENT OF PETROLEUM ACT 1998
57Objectives
58General definitions
59New section 20A inserted
20AGrant of exploration permit
60New definition of gathering line substituted
82Meaning of gathering line
61Operation plan to be prepared
62Emergencies
63Announcement before entry
64Prohibition notice
65Regulations
PART 8—REPEALS AND AMENDMENT OF OTHER ACTS
Division 1—Mines Act 1958
66Repeal
Division 2—Geothermal Energy Resources Act 2005
67Objectives and principles
68New section 20A inserted
20AGrant of exploration permit
69Operation plan to be prepared
70Release of factual information
71Emergencies
72Announcement before entry
73Prohibition notice
74Repeal of spent provisions
Division 3—Greenhouse Gas Geological Sequestration Act 2008
75Operation plan to be prepared
76Emergencies
77Announcement before entry
78Prohibition notice
79Statute law revision
Division 4—Offshore Petroleum and Greenhouse Gas Storage Act 2010
80Statute law revision
Division 5—Pipelines Act 2005
81Heading to section 51 amended
82Pipelines register
83New section 186A inserted
186AOther documents to be registered
Division 6—Victorian Energy Efficiency Target Act 2007
84How many certificates may be created in respect of a prescribed activity
85New section 32A inserted
32AEffect of specified Order made under section 32
Division 7—Victorian Renewable Energy Act 2006
86Statute law revision
Division 8—Gas Industry Act 2001
87Variation or revocation of licence
Division 9—Energy and Resources Legislation Amendment
Act 2009
88Part 8 repealed
Division 10—Aboriginal Heritage Act 2006
89Definitions
PART 9—REPEAL OF AMENDING ACT
90Repeal
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ENDNOTES
Energy and Resources Legislation Amendment Act 2010
No. 55 of 2010
[Assented to 14 September 2010]
The Parliament of Victoria enacts:
PART 1—PRELIMINARY
1Purposes
The main purposes of this Act are—
(a)to amend the Electricity Industry Act 2000—
(i)to extend the application of provisions of that Act designed to facilitate cost sharing for augmentations to distribution systems; and
(ii)to require the Essential Services Commission to have regard to a Ministerial emergency power direction under Part 6 of that Act that is in force before revoking a licence under that Act; and
(iii)to make further provision in relation to matters that are consequential to the rollout of advanced metering infrastructure; and
(b)to make amendments to the Electricity Safety Act 1998 relating—
(i)to the functions and powers of Energy Safe Victoria; and
(ii)to the clearance of vegetation around electric power lines; and
(iii)to bushfire mitigation plans; and
(iv)to electricity safety management schemes; and
(c)to amend the National Electricity (Victoria) Act 2005—
(i)to disapply the smart meter rollout provisions under the National Electricity Law to prevent an overlap with the advanced metering infrastructure arrangements under the Electricity Industry Act 2000; and
(ii)to provide for an economic incentive scheme with respect to fire starts to be administered by the Australian Energy Regulator in respect of distribution companies operating in Victoria; and
(d)to amend the Energy Safe Victoria Act 2005 to make further provision in relation to Energy Safe Victoria's corporate governance arrangements; and
(e)to amend the Mineral Resources (Sustainable Development) Act 1990 to improve the operation of that Act; and
(f)to amend the Petroleum Act 1998 to improve the operation of that Act; and
(g)to repeal the Mines Act 1958; and
(h)to amend the Gas Industry Act 2001 to require the Essential Services Commission to have regard to any Ministerial emergency power direction under Part 9 of that Act that is in force before revoking a licence under that Act; and
(i)to amend the Aboriginal Heritage Act 2006 to make further provision in relation to the interrelationship between cultural heritage management plans under that Act and area work plans under the Mineral Resources (Sustainable Development) Act 1990; and
(j)to make miscellaneous amendments to the Geothermal Energy Resources Act 2005, the Greenhouse Gas Geological Sequestration Act 2008, the Offshore Petroleum and Greenhouse Gas Storage Act 2010, the Pipelines Act 2005, the Victorian Energy Efficiency Target Act 2007, the Victorian Renewable Energy Act 2006 and the Energy and Resources Legislation Amendment Act 2009.
2Commencement
(1)Subject to subsection (3), this Act (except sections 36 and 85) comes into operation on a day or days to be proclaimed.
(2)Sections 36 and 85 come into operation on the day after the day on which this Act receives the Royal Assent.
(3)If a provision of this Act does not come into operation before 1 July 2011, it comes into operation on that day.
__________________
PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000
3Amendment of Division heading
In the heading to Division 2A of Part 2 of the Electricity Industry Act 2000 omit "wind energy".
4Definitions for purpose of Division 2A of Part 2
(1)In section 15B of the Electricity Industry Act 2000, in the definition of relevant generator, in paragraph (b), for "activity;" substitute "activity.".
(2)In section 15B of the Electricity Industry Act 2000, the definition of wind energy generation facility is repealed.
5Relevant augmentations
In section 15C(2) of the Electricity Industry Act 2000 omit "wind energy".
6Applicable charging principles
(1)In the heading to section 15D of the Electricity Industry Act 2000 omit "wind energy".
(2)In section 15D(1)(a) of the Electricity Industry Act 2000 omit "wind energy".
7Variation or revocation of licence
After section 29(3) of the Electricity Industry Act 2000 insert—
"(4)In deciding whether to revoke a licence the Commission must have regard to any direction of the Minister under section 96 that is in force.
(5)Anything in the procedures specified in the licence's conditions for the revocation of the licence that is inconsistent with subsection (4) is of no effect.".
8Definition for purpose of Division 6A of Part 2
In section 46B of the Electricity Industry Act 2000 insert the following definition—
"AMI tariff means—
(a)a tariff (including a tariff referred to in section 35 or 36A) applying to electricity supplied and sold that is metered by means of advanced metering infrastructure; or
(b)a tariff (including a tariff referred to in section 40A) applying to electricity distributed or supplied that is metered by means of advanced metering infrastructure;".
9Orders in relation to advanced metering infrastructure
(1)In section 46D(i)(ii) of the Electricity Industry Act 2000, for "supplied." substitute "supplied;".
(2)After section 46D(i) of the Electricity Industry Act 2000 insert—
"(j)require a relevant licensee to give a specified customer, or a customer of a specified class—
(i)information about advanced metering infrastructure of an explanatory kind;
(ii)information about when a specified AMI tariff, or a specified class of AMI tariffs, may take effect;
(iii)notification of the date when, or the period within which, electricity will be supplied and sold to that specified customer, or customers of that specified class, at specified AMI tariffs;
(iv)information as to the basis on which a specified AMI tariff, or a specified class of AMI tariffs, is calculated;
(v)information about the supply and installation of advanced metering infrastructure;
(k)specify how information referred to in paragraph (j) is to be given to a specified customer, or a customer of a specified class;
(l)require a relevant licensee to prepare, publish and maintain specified information to enable a specified customer, or a customer of a specified class, to compare offers for the supply and sale of electricity that is to be supplied and sold at specified AMI tariffs;
(m)specify how information referred to in paragraph (l) is to be published;
(n)require a relevant licensee to provide specified information to another relevant licensee (the second licensee) for the purpose of enabling the second licensee to comply with a requirement made under paragraph (j) or (l);
(o)specify how the information referred to in paragraph (n) is to be given to the second licensee;
(p)require a relevant licensee to assist, in a specified manner, a specified customer, or a customer of a specified class, to enable the customer to determine whether the customer may benefit from being supplied and sold electricity at a specified AMI tariff;
(q)require a relevant licensee to establish and maintain a specified method, process or procedure by which a specified customer, or a customer of a specified class, who is supplied and sold electricity at an AMI tariff may access data relating to past electricity consumption by that customer;
(r)provide for when a specified AMI tariff, or a specified class of AMI tariffs, may have effect;
(s)specify the requirements to be met by a relevant licensee before the licensee may offer to supply and sell, or distribute and supply, electricity to a specified customer, or a customer of a specified class, at a specified AMI tariff or specified AMI tariffs.".
10New section 46DA inserted
After section 46D of the Electricity Industry Act 2000 insert—
"46DA Interrelationship of Orders and other provisions relating to tariffs
A requirement under an Order of the Governor in Council made under section 46D(j) to (s) is in addition to, and does not limit, a requirement under section 35, 35C, 35D, 36A or 40A.".
11Statute law revision
(1)In section 40F(1) of the Electricity Industry Act 2000, in the definition of qualifying solar energy generating facility, for "generating" (where first occurring) substitute "generation".
(2)In section 40FJ(2) of the Electricity Industry Act 2000, for "day.." substitute "day.".
__________________
PART 3—AMENDMENT OF ELECTRICITY SAFETY ACT 1998
12New section 1 substituted
For section 1 of the Electricity Safety Act 1998 substitute—
"1 Purpose
The purpose of this Act is to make further provision relating to—
(a)the safety of electricity supply and use; and
(b)the reliability and security of electricity supply; and
(c)the efficiency of electrical equipment.".
13Definitions
(1)In section 3 of the Electricity Safety Act 1998, in the definition of distribution area, for "licensee" substitute "distribution company".
(2)In section 3 of the Electricity Safety Act 1998, in the definition of practicable, after "in" (where first occurring) insert "section 83B or".
(3)In section 3 of the Electricity Safety Act 1998 insert the following definitions—
'accepted bushfire mitigation plan means—
(a)a bushfire mitigation plan accepted by Energy Safe Victoria under Subdivision 3 of Division 1A of Part 8 and includes a bushfire mitigation plan provisionally accepted by Energy Safe Victoria under that Subdivision; or
(b)a bushfire mitigation plan accepted by Energy Safe Victoria under Division 2A of Part 10 (and taken to form part of an accepted ESMS by operation of section 113D) and includes a bushfire mitigation plan provisionally accepted by Energy Safe Victoria under that Division;
bushfire mitigation plan means a plan referred to in section 83BA(1) or 113A(1);
hazardous bushfire risk area means an area—
(a)to which a fire authority has assigned a fire hazard rating of "high" under section 80, whether or not the area is an urban area; or
(b)that is not an urban area (other than an area a fire control authority has assigned a fire hazard rating of "low" under section 80);
specified bushfire risk period means the period commencing 1 November and ending 31 March the following year;'.
14Objectives and functions of Energy Safe Victoria
(1)After section 6(c) of the Electricity Safety Act 1998 insert—
"(ca)to promote the prevention and mitigation of bushfire danger;".
(2)After section 7(f) of the Electricity Safety Act 1998 insert—
"(fa)to regulate, monitor and enforce the prevention and mitigation of bushfires that arise out of incidents involving electric lines or electrical installations;".
15New section 7A inserted
After section 7 of the Electricity Safety Act 1998 insert—
"7A Energy Safe Victoria may have regard to the reliability and security of electricity supply in certain cases
In performing a function or exercising a power under Part 8 or 10 or regulations made for the purposes of either of those Parts, Energy Safe Victoria may have regard to the reliability and security of electricity supply.".
16Amendment of heading to Part 8
In the heading to Part 8 of the Electricity Safety Act 1998, before "ELECTRIC" insert "BUSHFIRE MITIGATION REQUIREMENTS FOR CERTAIN OPERATORS AND".
17New Division 1A of Part 8 substituted
For Division 1A of Part 8 of the Electricity Safety Act 1998 substitute—
"Division 1A—Bushfire mitigation requirements for certain operators of at-risk electric lines
Subdivision 1—Interpretation
83ADefinitions
In this Division—
at-risk electric line means an electric line (other than a private electric line) that is—
(a)above the surface of land; and
(b)in a hazardous bushfire risk area;
specified operator means the operator of an at-risk electric line but does not include a major electricity company.
Subdivision 2—General duties in relation to bushfire mitigation plans
83BGeneral duty of specified operators to minimise bushfire danger
(1)A specified operator must design, construct, operate, maintain and decommission an at-risk electric line to minimise as far as practicable the bushfire danger arising from that line.
Penalty:In the case of a natural person, 300 penalty units;
In the case of a body corporate, 1500 penalty units.
(2)It is a defence to a prosecution of a specified operator for an offence relating to a breach of a duty or obligation set out in subsection (1) if the operator has complied with the accepted bushfire mitigation plan in relation to that duty or obligation.
83BASubmission of bushfire mitigation plans for acceptance
(1)A specified operator must, before 1 July in each year, prepare and submit to Energy Safe Victoria, for acceptance under Subdivision 3, a plan for the operator's proposals for the mitigation of bushfire in relation to the operator's at-risk electric lines.
Penalty:In the case of a natural person, 300 penalty units;
In the case of a body corporate, 1500 penalty units.
(2)A bushfire mitigation plan under subsection (1)—
(a)must be in or to the effect of a form approved by Energy Safe Victoria; and
(b)must include the prescribed particulars.
(3)A specified operator must cause a copy of an accepted bushfire mitigation plan to be available for inspection—
(a)on the operator's Internet site; and
(b)at the operator's principal office in the State during ordinary business hours.
Penalty:In the case of a natural person, 10 penalty units;
In the case of a body corporate, 50 penalty units.
83BBCompliance with bushfire mitigation plan
(1)During the specified bushfire risk period, a specified operator must not commence to commission, or operate, an at-risk electric line unless a bushfire mitigation plan that applies to the operator's at-risk electric lines has been accepted or provisionally accepted under Subdivision 3.
Penalty:In the case of a natural person, 300 penalty units;
In the case of a body corporate, 1500 penalty units.
(2)A specified operator must comply with an accepted bushfire mitigation plan that applies to the operator's at-risk electric lines.
Penalty:In the case of a natural person, 300 penalty units;
In the case of a body corporate, 1500 penalty units.
(3)Subsection (1) does not apply to a specified operator who has a reasonable excuse.
(4)For the purposes of subsection (1), it is a reasonable excuse for a specified operator not to comply with subsection (1) if—
(a)there is no accepted bushfire mitigation plan that applies to the operator's at-risk electric lines; and
(b)the reason for there being no accepted bushfire mitigation plan that applies to the operator's at-risk electric lines is that—
(i)Energy Safe Victoria failed to accept the operator's bushfire mitigation plan by 31 October in the year it was submitted to Energy Safe Victoria; and
(ii)that failure arose because of unreasonable delay on Energy Safe Victoria's part.
(5)For the purposes of subsection (1), it is not a reasonable excuse for a specified operator not to comply with subsection (1) if—
(a)there is no accepted bushfire mitigation plan that applies to the operator's at-risk electric lines; and
(b)the reason for there being no accepted bushfire mitigation plan that applies to the operator's at-risk electric lines is that—
(i)Energy Safe Victoria failed to accept the operator's bushfire mitigation plan by 31 October in the year it was submitted to Energy Safe Victoria and that failure arose because of actions or inactions of the operator that hampered the ability of Energy Safe Victoria to make a decision whether to accept that plan by 31 October; or
(ii)Energy Safe Victoria has not accepted a plan under section 83BG.
(6)Subsections (4) and (5) do not limit what may constitute a reasonable excuse.
Subdivision 3—Acceptance and validation of bushfire mitigation plans
83BCValidation of bushfire mitigation plans
(1)If a bushfire mitigation plan has been submitted by a specified operator under section 83BA, Energy Safe Victoria may require the operator to obtain an independent validation of that plan or any part of that plan.
(2)The specified operator must establish to the satisfaction of Energy Safe Victoria that each person undertaking the validation of a bushfire mitigation plan has the necessary competence and ability and access to information to arrive at an independent opinion in respect of the plan.
(3)If Energy Safe Victoria requires a specified operator to provide an independent validation of a bushfire mitigation plan or part of a plan, the costs of that validation must be borne by the operator.
(4)Energy Safe Victoria is not required to proceed with the consideration of a bushfire mitigation plan under this Subdivision until the independent validation is provided.
83BDAdditional information
(1)Energy Safe Victoria may require a specified operator to provide any additional information that Energy Safe Victoria thinks fit in relation to a bushfire mitigation plan submitted by the operator under section 83BA.
(2)Energy Safe Victoria is not required to proceed with the consideration of a bushfire mitigation plan under this Subdivision until the additional information is provided.
83BEAcceptance of bushfire mitigation plan
(1)Energy Safe Victoria must consider a bushfire mitigation plan submitted under section 83BA with as much expedition as the requirements of this Act and the regulations and the proper consideration of the plan permit.
(2)Energy Safe Victoria must accept a bushfire mitigation plan submitted under section 83BA if it is satisfied that the plan is appropriate for the at-risk electric lines to which it relates.
(3)Energy Safe Victoria must notify the specified operator in writing of its decision to accept a bushfire mitigation plan.
83BFProvisional acceptance of bushfire mitigation plan
(1)Energy Safe Victoria may provisionally accept a bushfire mitigation plan submitted under section 83BA if it is satisfied that the plan will minimise the bushfire danger arising from the at-risk electric lines to which the plan applies.
(2)Energy Safe Victoria must notify the operator that submitted the bushfire mitigation plan, in writing, of its decision to provisionally accept the plan.
(3)The notice of provisional acceptance must state—
(a)the period that the provisional acceptance will be in force; and
(b)the extent to which the bushfire mitigation plan has been accepted; and
(c)any limitations or conditions which will apply in respect of the accepted bushfire mitigation plan or part of the plan.
83BGNon-acceptance of bushfire mitigation plan
(1)If Energy Safe Victoria does not accept or provisionally accept a bushfire mitigation plan submitted to it under section 83BA, it must—
(a)notify the specified operator that submitted the plan in writing of the non-acceptance; and
(b)give the operator an opportunity to modify and re-submit the bushfire mitigation plan.
(2)A modified bushfire mitigation plan must be submitted to Energy Safe Victoria within 28 days after the notice is given under subsection (1).
(3)If, after considering any modified bushfire mitigation plan submitted under this section, Energy Safe Victoria decides not to accept the plan, Energy Safe Victoria must give notice in writing of that decision to the specified operator that submitted the plan.
(4)A notice under this section must be accompanied by a statement of the reasons for the decision.
83BHEnergy Safe Victoria may determine bushfire mitigation plan
(1)Energy Safe Victoria may determine the bushfire mitigation plan which is to apply in relation to a specified operator's at-risk electric lines.
(2)Energy Safe Victoria may make a determination under subsection (1) if—
(a)a specified operator fails to submit a bushfire mitigation plan under section 83BA that relates to the operator's at‑risk electric lines; or
(b)Energy Safe Victoria has decided not to accept a bushfire mitigation plan submitted under section 83BA that relates to a specified operator's at-risk electric lines.
(3)If Energy Safe Victoria determines the bushfire mitigation plan to apply to a specified operator's at-risk electric lines under this section, Energy Safe Victoria must give notice in writing to the operator of that determination.
(4)On notice being given to the specified operator under subsection (3), the bushfire mitigation plan determined by Energy Safe Victoria is taken for the purposes of this Act to be the accepted bushfire mitigation plan for that operator's at-risk electric lines.
(5)Nothing in subsection (4) prevents a specified operator from submitting a bushfire mitigation plan under section 83BA in relation to the operator's at-risk electric lines for acceptance under this Subdivision.
83BIDuration of accepted bushfire mitigation plan
An accepted bushfire mitigation plan ceases to have effect on 30 June in the year after it is accepted under this Subdivision.
83BJCompliance audits for accepted bushfire mitigation plans—independent audits
(1)Energy Safe Victoria may require a specified operator—
(a)to obtain, at the intervals determined by Energy Safe Victoria, independent audits of the operator's compliance with an accepted bushfire mitigation plan; and
(b)to forward a copy of each audit report to Energy Safe Victoria within a time specified by Energy Safe Victoria.
(2)The specified operator must establish to the satisfaction of Energy Safe Victoria that each person undertaking an audit under this section has the necessary competence and ability and access to information on the operations of the operator and the accepted bushfire mitigation plan to enable an independent audit to be carried out.
(3)If Energy Safe Victoria requires a specified operator to obtain an independent audit under this section, the costs of that audit must be borne by the operator.
(4)A specified operator must comply with a requirement of Energy Safe Victoria under this section.
Penalty:200 penalty units.
83BKCompliance audits—Energy Safe Victoria
Energy Safe Victoria may conduct, or cause to be conducted, an audit to determine whether or not a specified operator is satisfactorily complying with an accepted bushfire mitigation plan.".
18New section 86A inserted
After section 86 of the Electricity Safety Act 1998 insert—
"86A Energy Safe Victoria may give directions for restriction or prevention of tree growth
(1)If Energy Safe Victoria is satisfied that it is necessary to do so in order to prevent future unsafe electrical situations, Energy Safe Victoria may, in writing, direct a specified person—
(a)to restrict or cease the planting of specified trees or species or classes of tree in the immediate area around an electric line; or
(b)to clear specified trees or species or classes of tree from the immediate area around an electric line; or
(c)to do any other thing necessary to minimise or prevent growth of specified trees or species or classes of tree in the immediate area around an electric line.
(2)A direction under subsection (1) must be reasonable.
(3)In this section, specified person means the owner or occupier of land in the area of an electric line or the relevant distribution company or relevant transmission company that owns or operates the electric line.
(4)A specified person must comply with a direction under subsection (1) that applies to the specified person.
Penalty:In the case of a natural person, 50 penalty units;
In the case of a body corporate, 250 penalty units.".
19New Division 2A of Part 8 inserted
After Division 2 of Part 8 of the Electricity Safety Act 1998 insert—
"Division 2A—Electric lines and municipal fire prevention plans
86BMunicipal fire prevention plans must specify procedures for the identification of trees that are hazardous to electric lines
Without limiting section 55A of the Country Fire Authority Act 1958, a municipal council must, in a municipal fire prevention plan required to be prepared and maintained under that section, specify—
(a)procedures and criteria for the identification of trees that are likely to fall onto, or come into contact with, an electric line (hazard trees); and
(b)procedures for the notification of responsible persons of trees that are hazard trees in relation to electric lines for which they are responsible.".
20New Division 4 of Part 8 inserted
After Division 3 of Part 8 of the Electricity Safety Act 1998 insert—
"Division 4—Compliance audits in relation to compliance with the Code
90AApplication
(1)This Division applies to a responsible person who has prepared a management plan relating to compliance with the Code that has been approved by Energy Safe Victoria under the regulations.
(2)In subsection (1) responsible person means a person referred to in section 84(4), (5), (6) or (7).
90BCompliance audits for management plans—independent audits
(1)Energy Safe Victoria may require a responsible person—
(a)to obtain, at the intervals determined by Energy Safe Victoria, independent audits of the person's compliance with the management plan; and
(b)to forward a copy of each audit report to Energy Safe Victoria within a time specified by Energy Safe Victoria.
(2)The responsible person must establish to the satisfaction of Energy Safe Victoria that each person undertaking an audit under this section has the necessary competence and ability and access to information on the operations of the responsible person and the management plan to enable an independent audit to be carried out.
(3)If Energy Safe Victoria requires a responsible person to obtain an independent audit under this section, the costs of that audit must be borne by the responsible person.
(4)A responsible person must comply with a requirement of Energy Safe Victoria under this section.
Penalty:200 penalty units.
90CCompliance audits—Energy Safe Victoria
Energy Safe Victoria may conduct, or cause to be conducted, an audit to determine whether or not a responsible person is satisfactorily complying with the management plan.".
21Constitution of Committee
(1)In section 87(5)(f) of the Electricity Safety Act 1998, for "6 other members" substitute "5 other members".
(2)In section 87(5)(f)(iv) of the Electricity Safety Act 1998, for "1987." substitute "1987; and".
(3)After section 87(5)(f) of the Electricity Safety Act 1998 insert—
"(g) an officer or employee of Energy Safe Victoria nominated by the Minister administering the Energy Safe Victoria Act 2005.".
22New section 88A inserted
After section 88 of the Electricity Safety Act 1998 insert—
"88A Committee to consider reliability and security of electricity supply
In performing its functions under section 88, the Electric Line Clearance Consultative Committee may have regard to the reliability and security of electricity supply.".
23New Division 1AA of Part 10 inserted
Before Division 1 of Part 10 of the Electricity Safety Act 1998 insert—
"Division 1AA—Interpretation
98AADefinitions
In this Part—
at-risk supply network means a supply network or a part of a supply network that is—
(a)above the surface of land; and
(b)in a hazardous bushfire risk area.".
24General duty of major electricity companies
(1)In section 98(b) of the Electricity Safety Act 1998, for "network." substitute "network; and".
(2)After section 98(b) of the Electricity Safety Act 1998 insert—
"(c)if that network is an at-risk supply network, the bushfire danger arising from that network.".
25Electricity safety management schemes
After section 99(2) of the Electricity Safety Act 1998 insert—
"(2A)Without limiting subsection (2)(b), an electricity safety management scheme must include a plan for the mitigation of bushfire danger in relation to the major electricity company's at-risk supply network.".
26New section 105A inserted
After section 105 of the Electricity Safety Act 1998 insert—
"105A Bushfire mitigation parts of initial accepted ESMS lapse by certain date
The provisions of an accepted ESMS that constitute a plan for the mitigation of bushfire danger in relation to the major electricity company's at-risk supply network lapse on 30 June in the year after the year in which the accepted ESMS is accepted.
Note
See also Division 2A of this Part.".
27New Division 2A of Part 10 inserted
After Division 2 of Part 10 of the Electricity Safety Act 1998 insert—
"Division 2A—Ongoing bushfire mitigation requirements for major electricity companies
113ASubmission of bushfire mitigation plans for acceptance
(1)A major electricity company must, before 1 July in each year, prepare and submit to Energy Safe Victoria, for acceptance under this Division, a plan for the company's proposals for mitigation of bushfire in relation to the company's at-risk supply network.
Penalty:In the case of a natural person, 300 penalty units;
In the case of a body corporate, 1500 penalty units.
(2)A bushfire mitigation plan under subsection (1)—
(a)must be in or to the effect of a form approved by Energy Safe Victoria; and
(b)must include the prescribed particulars.
(3)A major electricity company must cause a copy of its accepted bushfire mitigation plan to be made available for inspection—
(a)on the company's Internet site; and
(b)at the company's principal office in the State during ordinary business hours.
Penalty:In the case of a natural person, 10 penalty units;
In the case of a body corporate, 50 penalty units.
113BCompliance with bushfire mitigation plan
(1)During the specified bushfire risk period, a major electricity company must not commence to commission, or operate, an at‑risk supply network unless a bushfire mitigation plan that applies to the company's at-risk electric lines has been accepted or provisionally accepted under this Division.
Penalty:In the case of a natural person, 300 penalty units;
In the case of a body corporate, 1500 penalty units.
(2)A major electricity company must comply with an accepted bushfire mitigation plan that applies to the company's at-risk supply network.
Penalty:In the case of a natural person, 300 penalty units;
In the case of a body corporate, 1500 penalty units.
(3)Subsection (1) does not apply to a major electricity company that has a reasonable excuse.
(4)For the purposes of subsection (1), it is a reasonable excuse for a major electricity company not to comply with subsection (1) if—
(a)there is no accepted bushfire mitigation plan that applies to the company's at‑risk supply network; and
(b)the reason for there being no accepted bushfire mitigation plan that applies to the company's at-risk supply network is that—
(i)Energy Safe Victoria failed to accept the company's bushfire mitigation plan by 31 October in the year it was submitted to Energy Safe Victoria; and
(ii)that failure arose because of unreasonable delay on Energy Safe Victoria's part.
(5)For the purposes of subsection (1), it is not a reasonable excuse for a major electricity company not to comply with subsection (1) if—
(a)there is no accepted bushfire mitigation plan that applies to the company's at‑risk supply network; and
(b)the reason for there being no accepted bushfire mitigation plan that applies to the company's at-risk supply network is that—
(i)Energy Safe Victoria failed to accept the company's bushfire mitigation plan by 31 October in the year it was submitted to Energy Safe Victoria and that failure arose because of actions or inactions of the company that hampered the ability of Energy Safe Victoria to make a decision whether to accept that plan by 31 October; or
(ii)Energy Safe Victoria has not accepted a plan under section 83BG (as applied and modified by section 113C).
(6)Subsections (4) and (5) do not limit what may constitute a reasonable excuse.
113CValidation, acceptance, provisional acceptance and determination of bushfire mitigation plans
Sections 83BC to 83BH apply to the validation, or acceptance, provisional acceptance or non-acceptance or determination by Energy Safe Victoria, of a bushfire mitigation plan under this Division—
(a)as if—
(i)a reference to a specified operator were a reference to a major electricity company; and
(ii)a reference to an at-risk electric line were a reference to an at-risk supply network; and
(iii)a reference to a bushfire mitigation plan were a reference to a bushfire mitigation plan submitted under this Division; and
(iv)a reference to an accepted bushfire mitigation plan were a reference to an accepted bushfire mitigation plan accepted or provisionally accepted under this Division; and
(b)with any other modifications that are necessary.
113DAccepted bushfire mitigation plan forms part of accepted ESMS
(1)An accepted bushfire mitigation plan applying to a major electricity company's at‑risk supply network is taken to form part of the major electricity company's accepted ESMS.
(2)However, despite anything to the contrary in Division 2, sections 106, 107, 109 and 110 do not apply to that part of an accepted ESMS that is constituted by an accepted bushfire mitigation plan.
(3)In addition, to avoid doubt, an acceptance, provisional acceptance or determination of a bushfire mitigation plan under this Division is not a revision of an accepted ESMS for the purposes of section 108.
113EDuration of accepted bushfire mitigation plan
The part of an accepted ESMS that is constituted by an accepted bushfire mitigation plan ceases to have effect on 30 June in the year after the accepted bushfire mitigation plan is accepted under this Division.
113FInspection of overhead private electric lines
(1)A major electricity company that has a distribution area must cause an inspection to be carried out at such times as are prescribed, and in accordance with the prescribed standards (if any), of private electric lines that are above the surface of land within its distribution area, other than any prescribed parts of those lines.
Penalty:In the case of a natural person, 50 penalty units;
In the case of a body corporate, 250 penalty units.
(2)A major electricity company must give to the occupier of land above which there is a private electric line notice in the prescribed form (if any) during the prescribed period (if any) before an inspection under subsection (1) is carried out.
(3)A major electricity company may, for the purpose of an inspection under this section, enter onto land at any reasonable time for the purposes of inspecting a private electric line under this section and remain on the land for so long as is necessary to inspect the line.
(4)If an inspection carried out under this section reveals that maintenance is required on a private electric line above land, the major electricity company must give the owner of the land written notice of the maintenance required.".
28Repeal of redundant provision
Section 112 of the Electricity Safety Act 1998 is repealed.
29Compliance audits—independent audits
For section 120H(1)(a)(ii) of the Electricity Safety Act 1998 substitute—
"(ii)the operator's supply network (including the operator's at-risk supply network) or complex electrical installation; and".
30Compliance audits—Energy Safe Victoria
For section 120I(b) of the Electricity Safety Act 1998 substitute—
"(b)the operator's supply network (including the operator's at-risk supply network) or complex electrical installation.".
31Definition for purpose of infringement notices
In section 140A of the Electricity Safety Act 1998, in the definition of prescribed offence, in paragraph (a)—
(a)for "83A(1), 83A(3), 83B(1)" substitute "83BA(3),";
(b)after "110," insert "113A(3), 113F(1),".
32Director may give directions
(1)In section 141(2)(d) of the Electricity Safety Act 1998, for "safe." substitute "safe; or".
(2)After section 141(2)(d) of the Electricity Safety Act 1998 insert—
"(e)to do any other thing necessary to prevent an unsafe electrical situation from arising.".
33New section 141AB inserted
After section 141A of the Electricity Safety Act 1998 insert—
"141AB Information notices
(1)Energy Safe Victoria, by written notice, may require a person to give Energy Safe Victoria information in the person's possession or control that Energy Safe Victoria reasonably requires for the purpose of preparing annual reports in relation to the performance of distribution companies in complying with Divisions 1A, 2 and 4 of Part 8, and Part 10.
(2)A notice under subsection (1) must—
(a)specify or describe the information that is required by Energy Safe Victoria; and
(b)specify the format in which that information is to be given to Energy Safe Victoria; and
(c)specify the date by which the information must be given to Energy Safe Victoria.
(3)A person who is given a notice under subsection (1) must comply with the notice unless the person has a lawful excuse.
Penalty:In the case of a natural person, 50 penalty units;
In the case of a body corporate, 200 penalty units.
(4)A natual person cannot be compelled, by the giving of a notice under subsection (1), to give information if the information might tend to incriminate the person of an offence.
(5)This section does not require a person to give information that is the subject of legal professional privilege or client legal privilege.
(6)It is not a lawful excuse for a person to fail to comply with a notice under subsection (1) on the ground of any duty of confidence.".
34New section 149A inserted
After section 149 of the Electricity Safety Act 1998 insert—
"149A Reliability and security of electricity supply
The Governor in Council may make regulations for or with respect to the reliability and security of the supply of electricity.".
35Electric line clearance
(1)In section 151(d) of the Electricity Safety Act 1998, for "an approved management plan." substitute "an approved management plan;".
(2)After section 151(d) of the Electricity Safety Act 1998 insert—
"(e)the standards and practices to be adopted and observed in relation to—
(i)tree planting, pruning or clearing in the immediate area around electric lines;
(ii)species of tree or classes of tree that may remain or be planted in the immediate area around electric lines;
(iii)species of tree or classes of tree that must be cleared from the immediate area around electric lines;
(iv)the management of trees in the immediate area around electric lines.".
36New section 151A inserted
After section 151 of the Electricity Safety Act 1998 insert—
"151A Bushfire mitigation
The Governor in Council may make regulations for or with respect to—
(a)the prevention of bushfires arising from electric lines or electrical installations;
(b)the protection of electric lines or electrical installations from the effects of bushfires;
(c)the inspection of electric lines or electrical installations for the purpose of the prevention of bushfires arising from such lines or installations;
(d)the training of persons conducting inspections of the kind referred to in paragraph (c);
(e)the auditing of the training and performance of persons conducting inspections of the kind referred to in paragraph (c).".
37Statute law revision
(1)In section 3 of the Electricity Safety Act 1998—
(a)the definition of Committee is repealed; and
(b)insert the following definition—
"Committee means—
(a)in Part 4, the Equipment Advisory Committee;
(b)in Part 8, the Electric Line Clearance Consultative Committee;
(c)in Part 9, the Victorian Electrolysis Committee;"; and
(c)in the definition of voluntary ESMS operator, for "Part 10;" substitute "Part 10.".
(2)In section 120C(1)(b) of the Electricity Safety Act 1998, before "complex" insert "a".
__________________
PART 4—AMENDMENT OF NATIONAL ELECTRICITY (VICTORIA) ACT 2005
38New section 16B inserted
After section 16A of the National Electricity (Victoria) Act 2005 insert—
"16B Disapplication of national smart meter rollout provisions
Despite section 6—
(a)Part 8A of the NEL does not apply as a law of Victoria; and
(b)any Rule made for the purposes of that Part does not have the force of law in Victoria.".
39New Division heading inserted into Part 3
Before section 13 of the National Electricity (Victoria) Act 2005 insert—
"Division 1—Interpretation".
40Definitions—Part 3
In section 13 of the National Electricity (Victoria) Act 2005, insert the following definitions—
"Country Fire Authority means the Country Fire Authority appointed under the Country Fire Authority Act 1958;
Distribution Network Service Provider has the same meaning as in the National Electricity Rules;
Energy Safe Victoria means Energy Safe Victoria established under the Energy Safe Victoria Act 2005;
f-factor amount determination means a determination made by the AER in accordance with an Order under section 16C(1)(b);
f-factor scheme determination means a determination made by the AER in accordance with an Order under section 16C(1)(a);
first distribution determination period means the period—
(a)commencing on the day after the day that is the Victorian distribution pricing determination end date; and
(b)ending on—
(i)31 December 2015; or
(ii)for a distribution determination that continues to be in force after that date, the date on which that distribution determination ceases to be in force;
Metropolitan Fire and Emergency Services Board means the Metropolitan Fire and Emergency Services Board established under the Metropolitan Fire Brigades Act 1958;
relevant entity means—
(a)the Secretary to the Department of Sustainability and Environment; or
(b)Energy Safe Victoria; or
(c)the Country Fire Authority; or
(d)the Metropolitan Fire and Emergency Services Board;
service target performance incentive scheme has the same meaning as in the National Electricity Rules;".
41New Division heading inserted
After section 13 of the National Electricity (Victoria) Act 2005 insert—
"Division 2—General modifications".
42New Division 3 of Part 3 inserted
After Division 2 of Part 3 of the National Electricity (Victoria) Act 2005 insert—
'Division 3—The f-factor scheme
16COrder in Council for establishment of f‑factor scheme
(1)The Governor in Council, by Order published in the Government Gazette, for the purpose of reducing the risk of fire starts and reducing the risk of loss or damage caused by fire starts, may confer functions and powers, or impose duties, on the AER to make—
(a)a determination for the purpose of providing incentives for Distribution Network Service Providers to reduce the risk of fire starts and reduce the risk of loss or damage caused by fire starts;
(b)a determination for each year of the first distribution determination period specifying an amount that is to be treated as a positive pass through amount or a negative pass through amount for the purposes of Chapter 6 of the National Electricity Rules.
(2)Without limiting subsection (1), an Order under that subsection may—
(a)specify how the AER is to make, publish, implement and administer an f‑factor scheme determination and an f‑factor amount determination;
(b)specify the kinds of fire starts to be covered by an f‑factor scheme determination or require the AER to determine the kinds of fire starts to be covered by an f‑factor scheme determination;
(c)require the AER, before making an f‑factor scheme determination, to consult with one or more of the following—
(i)the Minister;
(ii)a Distribution Network Service Provider;
(iii)a relevant entity;
(iv)any other person whose interests are affected and who is specified as a person with whom the AER must consult;
(d)require the AER, when consulting with persons referred to in paragraph (c), to comply with specified consultation procedures;
(e)require the AER to include benchmarks or targets for Distribution Network Service Providers as part of an f‑factor scheme determination;
(f)require the AER to assess the performance of Distribution Network Service Providers in relation to any benchmarks or targets included as part of an f‑factor scheme determination and for the purpose of making an f‑factor amount determination;
(g)specify any benchmarks, targets, incentives, rewards or penalties for inclusion in an f‑factor scheme determination that will apply to Distribution Network Service Providers and for the purpose of making f‑factor amount determinations;
(h)require the AER, in making an f‑factor scheme determination, to have regard to specified criteria, including—
(i)the need to ensure that the benefits to consumers likely to result from the making of an f‑factor scheme determination are sufficient to warrant the determination's benchmarks, targets, incentives, rewards or penalties for Distribution Network Service Providers;
(ii)any regulatory obligation or requirement to which Distribution Network Service Providers are subject;
(iii)a distribution system's history of fire starts;
(iv)the willingness of end users to pay for enhanced fire safety;
(v)criteria for determining benchmarks, targets, incentives, rewards or penalties that will apply to Distribution Network Service Providers and for the purpose of making an f‑factor amount determination;
(vi)any interaction between the Order and a service target performance incentive scheme;
(vii)any interaction between the Order and any other incentive scheme, including an incentive scheme in relation to services provided by means of a distribution system (other than a service target performance incentive scheme that applies to a Distribution Network Service Provider);
(i)specify, for a Distribution Network Service Provider, the interaction between an f‑factor scheme determination and a service target performance incentive scheme that apply to that Distribution Network Service Provider.
(3)An Order under subsection (1) may be made so as to apply, adopt or incorporate wholly or partially or as amended by the Order, the provisions of any document, standard, rule, specification or method formulated, issued, prescribed or published by any authority or body whether—
(a)as formulated, issued, prescribed or published at the time the Order is made or at any time before the Order is made; or
(b)as amended from time to time.
(4)An Order under subsection (1) may—
(a)leave any matter to be decided by the AER; and
(b)without limiting paragraph (a), direct the AER to make amendments to any instrument made by the AER to give effect to any matter specified in an Order made under this section.
(5)The provisions of an Order under subsection (1) may—
(a)be of general or limited application;
(b)differ according to differences in time, place and circumstances.
(6)An Order under subsection (1) has effect as from the day specified in the Order and until the day specified in the Order.
(7)An f-factor scheme determination or f-factor amount determination made under an Order under subsection (1) cannot come into effect before the Victorian distribution pricing determination end date.
16DFunctions and powers conferred and duties imposed on AER
A function or power conferred or a duty imposed on the AER by an Order under section 16C is taken to be conferred or imposed by this Act.
Note
See sections 44AH and 44AI of the Trade Practices Act 1974 of the Commonwealth.
16EApplication of NEL provisions after the Victorian distribution pricing determination end date
(1)Despite section 6, after the Victorian distribution pricing determination end date—
(a)unless the context otherwise requires, a reference in the NEL to "the Law" or "this Law" is to be read as including a reference to an Order under section 16C;
(b)a reference in the NEL to a function or power of the AER (including, but not limited to, an AER economic regulatory function or power) is to be read as including a reference to a function or power conferred or a duty imposed on the AER under section 16D;
(c)section 14B of the NEL is to be read as if after "that operator" there were inserted "and an f‑factor scheme determination and an f-factor amount determination that applies to that operator";
(d)sections 28F(1), 28ZC and 28ZD of the NEL are to be read as if after every reference in those sections to "or the Rules" there were inserted "or an Order under section 16C under the National Electricity (Victoria) Act 2005";
(e)Division 6 of Part 3 of the NEL is to be read as if after every reference in that Division to "or the Rules" there were inserted "or an Order under section 16C under the National Electricity (Victoria) Act 2005";
(f)section 28F(3)(d) of the NEL is to be read as if after "performance report" there were inserted ", other than a service provider performance report relating to a Distribution Network Service Provider's compliance with an f‑factor scheme determination or f‑factor amount determination";
(g)section 28V(2)(a) of the NEL is to be read as if after subparagraph (iii) there were inserted—
"(iv)complying with an f‑factor scheme determination and an f‑factor amount determination; and".
(2)Despite section 6, on and after the date the first Order made under section 16C comes into effect, the National Electricity Rules have the force of law in Victoria as if—
(a)after rule 6.13 of the Rules there were inserted—
"6.13A Variations to distribution determinations for purpose of f‑factor scheme determinations
(a)Despite anything to the contrary in these Rules and subject to this rule, the AER may, as a consequence of the making of an f-factor scheme determination (within the meaning of section 13 of the National Electricity (Victoria) Act 2005), vary a distribution determination during the course of the regulatory control period.
(b)The AER must not vary a distribution determination under this rule unless the AER has complied with any consultation procedures specified in an Order under section 16C of the National Electricity (Victoria) Act 2005.
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ENDNOTES
Minister's second reading speech—
Legislative Assembly: 24 June 2010
Legislative Council: 29 July 2010
The long title for the Bill for this Act was "A Bill for an Act to amend the Electricity Industry Act 2000, the Electricity Safety Act 1998, the National Electricity (Victoria) Act 2005, the Energy Safe Victoria Act 2005, the Mineral Resources (Sustainable Development) Act 1990, the Petroleum Act 1998, the Gas Industry Act 2001, the Victorian Energy Efficiency Target Act 2007, to repeal the Mines Act 1958 and to amend other Acts and for other purposes."
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