Commonwealth of Australia
Australian Renewable Energy Agency Act 2011
Australian Renewable Energy Agency Determination No 1 of 2013
Explanatory Statement
Issued by the authority of the Minister for Resources and Energy
GARY GRAY
Date of approval: 1 July 2013
AUSTRALIAN RENEWABLE ENERGY AGENCY
DETERMINATION No 1 of 2013
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.
A general funding strategy for a financial year must be developed during the previous financial 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.
On 9 November 2012 the Australian Renewable Energy Agency Determination No 2 of 2012 (the Previous Determination) was made in accordance with the Australian Renewable Energy Agency Act 2011.
Determination of the general funding strategy
The general funding strategy attached to the Australian Renewable Energy Determination No 1 of 2013 has been developed by the Board and approved by the Minister for Resources and Energy and is determined to be the general funding strategy for the purposes of section 19 of the Act.
ARENA may release other documents that explain specific activities that ARENA will undertake within the framework set out in the general funding strategy, for example, an Investment Plan. The intention is that other Investment Plans may be released during the financial year without the need to amend the general funding strategy. The Investment Plan does not constitute part of the Determination.
Legislative Authority
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
The following consultation occurred in relation to the making of the general funding strategy:
The ARENA Board and CEO held a National Forum in Melbourne on 3 May 2013. The consultation process also allowed for written submission; the submissions deadline was set at 17 May 2013. ARENA received 8 submissions in this process. In developing this general funding strategy, the ARENA Board considered the input provided in written submissions and feedback in the consultation sessions.
The Minister is satisfied that the requirements of section 17 of the LIA have been complied with and that appropriate consultation has been undertaken.
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 1 July 2013.
Notes on Provisions
Clause 1 – Name of Determination
This prescribes the name of the Determination as the Australian Renewable Energy Agency Determination No 1 of 2013.
Clause 2 - Commencement
Clause 2 provides for the Determination to commence on 1 July 2013, consistent with subsection 21(1) of the Act. This Determination will take effect prior to registration as it is beneficial in nature by permitting funding and does not operate so as to disadvantage any person nor impose any liabilities in respect of anything done or omitted to be done before registration of the Determination.
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 the general funding strategy
Clause 4 specifies that the 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 21(2) of the Act.