EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
The Determination to which this Explanatory Statement relates
This Explanatory Statement relates to the determination named ARENA Act Subsection 64(3) Determination 2013/01. The determination is made under subsection 64(3) of the Australian Renewable Energy Agency Act 2011 (ARENA Act).
Subsection 64(3) of the ARENA Act provides that the Finance Minister may determine by legislative instrument, in the 2012-2013 financial year, an amount. 'Finance Minister' is defined in section 4 of the ARENA Act to be the Minister who administers the Financial Management and Accountability Act 1997, being the Minister for Finance and Deregulation. Subsection 64(4) of the ARENA Act provides that the amount determined by the Finance Minister under subsection 64(3) is debited from the Clean Energy Initiative Special Account (CEI Special Account) and that the table in subsection 64(1) has effect as if the amount for the 2012-2013 financial year were increased (or further increased) by the amount determined.
The determination is for the amount of $278,892,619.29. At the time of making the determination, this amount does not exceed the balance of the CEI Special Account.
Purpose and operation of the Determination
The determination will enable the amount available to ARENA during the 2012-2013 financial year, under subsection 64(1) of the ARENA Act, to be increased by $278,892,619.29. Amounts available for payment to ARENA are set out in the table in subsection 64(1) of the ARENA Act.
The determination is a legislative instrument subject to section 42 (disallowance) and Part 6 (sunsetting) of the Legislative Instruments Act 2003.
ARENA was established on 1 July 2012 as a Commonwealth authority to support innovations that improve the competitiveness of renewable energy technologies and increase the supply of renewable energy in Australia.
The CEI Special Account was established under section 20 of the Financial Management and Accountability Act 1997. The purposes of the Special Account are to meet expenses related to initiatives that support the growth of clean energy generation, the growth of related new technologies and the reduction of carbon emissions.
Statement of Compatibility with Human Rights
Legislative instruments provided for under the ARENA Act by the Finance Minister are subject to the rights or freedoms relevant to the Human Rights (Parliamentary Scrutiny) Act 2011 and require a Statement of Compatibility with Human Rights. That Act applies to legislative instruments that are subject to disallowance under section 42 of the Legislative Instruments Act 2003.
The main object of the ARENA Act is to improve the competitiveness of renewable energy technologies and increase the supply of renewable energy in Australia. This legislative instrument, however, only deals with the movement of an appropriation. Accordingly, it is not seen as engaging, or otherwise affecting, the rights or freedoms relevant to the Human Rights (Parliamentary Scrutiny) Act 2011.
Consultation
The Department of Resources, Energy and Tourism was consulted in the preparation of this determination.
Overview
The ARENA Act Subsection 64(3) Determination 2013/01 was enacted in 2013 to address a financial need identified in the Australian Renewable Energy Agency Act 2011. This Determination, made under subsection 64(3) of the ARENA Act, empowers the Minister for Finance and Deregulation to specify an amount to be debited from the Clean Energy Initiative Special Account. The specific purpose of this Determination is to increase the funds available to the Australian Renewable Energy Agency (ARENA) during the 2012-2013 financial year by $278,892,619.29. This allocation supports ARENA’s mission to enhance the competitiveness of renewable energy technologies and boost the supply of renewable energy in Australia. The determination is subject to scrutiny under the Legislative Instruments Act 2003 and requires compliance with the Human Rights (Parliamentary Scrutiny) Act 2011, although it is deemed not to affect relevant human rights or freedoms. The enactment ensures that the movement of the appropriation aligns with the legislative framework designed to foster innovation and growth in the renewable energy sector.
Scope and Application
The ARENA Act Subsection 64(3) Determination 2013/01 pertains to the Australian Renewable Energy Agency Act 2011 and is administered by the Minister for Finance and Deregulation. This determination enables an increase in the funding available to the Australian Renewable Energy Agency (ARENA) for the 2012-2013 financial year by debiting a specific amount from the Clean Energy Initiative Special Account. The Act applies to the Commonwealth level, specifically to the allocation of funds from the financial account set up for clean energy initiatives, and its operation is constrained within the confines of the Legislative Instruments Act 2003, including provisions for disallowance and sunsetting. This determination is a legislative instrument subject to parliamentary scrutiny and does not contravene the Human Rights (Parliamentary Scrutiny) Act 2011 as it pertains strictly to the movement of an appropriation rather than the engagement or infringement of human rights. The Department of Resources, Energy and Tourism was consulted during the preparation of this determination, ensuring that the legislative action aligns with broader energy and environmental policy objectives.
Key Provisions
The main operative sections of the ARENA Act Subsection 64(3) Determination 2013/01 (hereafter referred to as the Determination) pertain to the provision of an additional appropriation to the Australian Renewable Energy Agency (ARENA) for the 2012-2013 financial year. Section 64(3) of the ARENA Act authorises the Finance Minister to determine an amount, which is subsequently debited from the Clean Energy Initiative Special Account (CEI Special Account) as per section 64(4). The Determination specifies that the Finance Minister has determined an amount of $278,892,619.29 to be allocated to ARENA for the financial year in question. This adjustment increases the amount available to ARENA as per the table in subsection 64(1) of the ARENA Act.
The Determination imposes specific obligations on the parties involved, primarily the Finance Minister and ARENA. The Finance Minister, in exercising the power under section 64(3) of the ARENA Act, is required to ensure that the amount determined does not exceed the balance available in the CEI Special Account. This obligation ensures that the appropriation is sourced from an existing fund and does not create a deficit in the CEI Special Account. ARENA, on the other hand, must utilise the additional funds in accordance with its mandate to support renewable energy technologies and initiatives as stipulated in the ARENA Act.
Breach of the provisions outlined in the Determination could lead to various consequences. Although the Determination itself does not explicitly state offences or penalties, the underlying legislation and related acts provide a framework for potential consequences. Under the Legislative Instruments Act 2003, the Determination is subject to disallowance under section 42, which could render the Determination void if disallowed by Parliament. Additionally, any misuse of the appropriated funds by ARENA or improper accounting by the Finance Minister could lead to administrative or legal repercussions under the Financial Management and Accountability Act 1997. The Human Rights (Parliamentary Scrutiny) Act 2011 also mandates a Statement of Compatibility with Human Rights for legislative instruments subject to disallowance, although the Determination has been assessed as not affecting relevant rights or freedoms.