Australian Renewable Energy Agency Determination 2012

Administered by Department of Industry, Science and Resources

Legislation au F2012L01520 Not in force Legislative Instrument

Legislation content

Commonwealth of Australia

 

Australian Renewable Energy Agency Act 2011

Australian Renewable Energy Agency Determination 2012

Explanatory Statement

Issued by the authority of the Minister for Resources and Energy

MARTIN FERGUSON

 

Date of approval: 2 July 2012

 

 

AUSTRALIAN RENEWABLE ENERGY AGENCY DETERMINATION 2012

 

 

 

 

General Outline

 

Section 7 of the Australian Renewable Energy Act 2011 (the Act) establishes the Australian Renewable Energy Agency (ARENA).  Section 17 of the Act establishes the Board of the Australian Renewable Energy Agency (the Board).

 

Section 20 of the Act provides that a general funding strategy must be developed by the Board and approved by the Minister for Resources and Energy (the Minister). 

Subsection 19(1) of the Act provides that the Board must, for the 2012-13 financial year and each later financial year, develop a general funding strategy for the provision of financial assistance under the Act.

 

The general funding strategy for the 2012-2013 must be developed as soon as practicable after the start of that year (s.19(2) of the Act).

 

A general funding strategy is required to be in writing and be expressed to relate to the financial year for which the strategy is developed and the next two financial years.  It must also state ARENA’s principal objectives and priorities for the provision of financial assistance under the Act during the three year period.

 

Subsection 19(4) of the Act provides that a general funding strategy must not require financial assistance to be provided to a particular person, or for a particular project.  Section 10 of the Act requires that ARENA must not enter into an agreement for the provision of financial assistance unless the financial assistance provided for is in accordance with the general funding strategy approved by the Minister pursuant to subsection 20(2) of the Act.

 

The Australian Renewable Energy Agency Determination 2012 (the Determination) was made in accordance with the Australian Renewable Energy Agency Act 2011.

 

Determination of the interim funding strategy

 

The interim funding strategy attached to the Australian Renewable Energy Determination 2012 has been developed by the Board and approved by the Minister and is determined to be the general funding strategy for the purposes of subsection 20(2) of the Act. 

 

The interim general funding strategy will allow the ARENA Board to maintain industry momentum for renewable energy technology development and make initial funding decisions prior to the release of its 2012-13 general funding strategy later in the 2012-13 financial year.  These activities will incorporate activities which have transferred to ARENA, which ARENA will continue to administer.

 

Legislative Authority

 

Subsection 20(2) of the Act provides that a general funding strategy developed by the Board and approved by the Minister is a legislative instrument made by the Minister on the day on which the strategy is approved, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to a general funding strategy. 

 

Subsection 21(1) of the Act provides that a general funding strategy for a financial year comes into force at a time later of the following times:

(a)   the time when the Minister approves the strategy;

(b)   the start of the financial year.

 

Subsection 21(2) of the Act provides that a general funding strategy for a financial year ceases to be in force when the general funding strategy for the next financial year comes into force.

 

The Act may be found at:

 

http://www.comlaw.gov.au/Details/C2011A00152.

 

Once the Determination has been placed on the Federal Register of Legislative Instruments it can be found at:

 

http://www.frli.gov.au/ComLaw/legislation/legislativeinstrument1.nsf/sh/browse&CATEGORY=legislativeinstrument

 

Consultation

There is normally a requirement under section 17 of the Legislative Instruments Act 2003 (the LI Act) for the rule-maker to be satisfied that any consultation that is considered by the rule-maker to be appropriate, and that it is reasonably practicable to undertake, has been undertaken. 

 

Despite section 17, the nature of an instrument may be such that consultation may be unnecessary or inappropriate.  In accordance with paragraph 18(2)(a) of the LI Act the rule-maker may be satisfied that consultation is unnecessary or inappropriate because the Determination is an instrument that is of a minor or machinery nature and that it does not substantially alter existing arrangements. 

 

The Minister is satisfied in this case that paragraph 18(2)(a) is applicable as the Determination does not alter or affect existing arrangements.  The effect of the interim funding agreement will be to allow the continuation of transferring programs and the administration of novating funding agreements.

 

Statement of Compatibility with Human Rights

 

This Legislative Instrument 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.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Financial Implications

 

There are no financial implications.

 

Date of Effect

 

The Determination will commence on 2 July 2012.


Notes on Provisions

 

Clause 1 – Name of Guidelines

 

This prescribes the name of the Determination as the Australian Renewable Energy Agency Determination 2012.

 

Clause 2 - Commencement

 

Clause 2 provides for the Determination to commence on 2 July 2012.

 

Clause 3 - Definition

 

Clause 3, for the purpose of this Determination, provides a definition of the Act authorising the making of the Determination.  That is the Australian Renewable Energy Agency Act 2011. It also provides a definition for the Board and ARENA.

 

Clause 4 – Approval of interim funding strategy

 

Clause 4 specifies that the general funding strategy developed by the Board, approved by the Minister and published on ARENA’s website, is the general funding strategy for the purposes of subsection 20(2) of the Act.

 

 

Overview

The Australian Renewable Energy Agency Act 2011 was enacted to establish the Australian Renewable Energy Agency (ARENA) as a statutory body responsible for administering a range of programs and funding initiatives aimed at advancing renewable energy technologies and practices in Australia. This legislation sought to address the need for a coordinated national effort to accelerate the development and deployment of renewable energy technologies, thereby contributing to Australia's energy security and environmental sustainability objectives. Enacted by the Commonwealth Parliament, the policy objective of the Act is to foster innovation and investment in renewable energy by providing financial assistance and facilitating collaboration among industry, government, and research institutions. The Australian Renewable Energy Agency Determination 2012 complements the Act by setting out the interim general funding strategy for the 2012-2013 financial year, approved by the Minister for Resources and Energy. This strategy was developed by the ARENA Board to maintain momentum in renewable energy technology development and to enable initial funding decisions before the release of the full general funding strategy later in the financial year. The determination ensures that ARENA can continue to administer transferred activities while adhering to the legislative requirements for developing and approving funding strategies.

Scope and Application

The Australian Renewable Energy Agency Determination 2012, made under the Australian Renewable Energy Agency Act 2011, establishes an interim funding strategy for the 2012-13 financial year, allowing the Australian Renewable Energy Agency (ARENA) Board to maintain industry momentum for renewable energy technology development and make initial funding decisions before the release of the 2012-13 general funding strategy later in the financial year. This interim funding strategy, approved by the Minister for Resources and Energy, enables the continuation of transferring programs and the administration of novated funding agreements. The strategy must be in writing, relate to the relevant financial year and the next two financial years, and outline ARENA’s principal objectives and priorities for the provision of financial assistance under the Act during the three-year period. Importantly, the strategy must not require financial assistance to be provided to a particular person or for a particular project. The Determination does not alter existing arrangements, and consultation was deemed unnecessary as it does not substantially alter existing arrangements, in line with the Legislative Instruments Act 2003. This Determination is compatible with human rights and has no financial implications.

Key Provisions

The Australian Renewable Energy Agency Determination 2012 (the Determination) provides a framework for the Australian Renewable Energy Agency (ARENA) to develop and implement a general funding strategy for renewable energy projects. According to section 20 of the Australian Renewable Energy Agency Act 2011 (the Act), the Board of ARENA must develop a general funding strategy for the 2012-13 financial year and each subsequent year. The strategy must be in writing, cover the financial year in question and the next two years, and outline ARENA's primary objectives and priorities for providing financial assistance under the Act. Importantly, the strategy cannot mandate that financial assistance be provided to a specific person or for a specific project, as per subsection 19(4) of the Act. Moreover, ARENA cannot enter into any agreement for the provision of financial assistance unless it aligns with the general funding strategy approved by the Minister under subsection 20(2) of the Act. The Determination mandates that the interim funding strategy attached to it, which has been developed by the Board and approved by the Minister, serves as the general funding strategy for the purposes of subsection 20(2) of the Act. This interim strategy is designed to maintain industry momentum for renewable energy technology development and facilitate initial funding decisions before the release of the 2012-13 general funding strategy later in the financial year. It ensures continuity in activities that have been transferred to ARENA and those that ARENA will continue to administer. Under the Act, a general funding strategy developed by the Board and approved by the Minister constitutes a legislative instrument made by the Minister on the day of approval. However, section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to a general funding strategy. Furthermore, a general funding strategy for a financial year comes into force at the later of the Minister's approval of the strategy or the start of the financial year. It ceases to be in force when the strategy for the next financial year comes into force. The Determination does not impose any offences, penalties, or civil/criminal consequences for breach. However, any failure to comply with the general funding strategy could result in legal action or other consequences under the Act. For instance, if ARENA provides financial assistance that is not in accordance with the approved general funding strategy, it could be subject to legal proceedings or other remedies under the Act. Additionally, the Minister has the authority to revoke the Determination if it is found to be inconsistent with the Act or if it is no longer considered necessary or appropriate.

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