Commonwealth of Australia
Australian Renewable Energy Agency Act 2011
Australian Renewable Energy Agency Determination No. 1 of 2015
Explanatory Statement
Issued by the authority of the Minister for Industry and Science
IAN ELGIN MACFARLANE
Date of approval: July 2015
AUSTRALIAN RENEWABLE ENERGY AGENCY
DETERMINATION No. 1 of 2015
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 ARENA (the Board).
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. Section 20 of the Act provides that, as soon as practicable after developing a general funding strategy for a financial year, the Board must give a copy of the strategy to the Minister for approval.
A general funding strategy for a financial year must be developed during the previous financial year (subsection 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(3) of the Act).
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 1 July 2013 the Australian Renewable Energy Agency Determination No. 1 of 2013 (the Previous Determination) was made in accordance with the Australian Renewable Energy Agency Act 2011. The Previous Determination set out the general funding strategy for financial years 2013/2014 to 2015/2016. A general funding strategy was approved by the Board in 2014 but was not approved by the Minister. In accordance with subsection 21(2) of the Act, the Previous Determination will cease on commencement of this Determination.
Determination of the general funding strategy
The general funding strategy attached to the Australian Renewable Energy Determination No. 1 of 2015 has been developed by the Board and approved by the Minister 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 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. Section 20 of the Act provides that, as soon as practicable after developing a general funding strategy for a financial year, the Board must give a copy of the strategy to the Minister for approval.
Consultation
The following consultation occurred in relation to the making of the general funding strategy:
ARENA conducted targeted consultation with key stakeholders throughout April and May 2015 on the overall approach to setting its investment priorities. This included discussions and the opportunity to provide written comment offered to peak bodies and energy market institutions. In developing this general funding strategy, the ARENA Board was informed by the input provided by stakeholders. Given the general funding strategy 2015-16 provides a similar overarching approach to ARENA funding to the Previous Determination, public consultation on the general funding strategy was not considered necessary or appropriate. Throughout 2014 and 2015, ARENA has consulted in depth on a number of areas of renewable energy investment. This consultation has informed the more detailed priorities contained in the Investment Plan to be published separately by ARENA.
The Minister is satisfied that the requirements of section 17 of the Legislative Instruments Act 2003 have been complied with and that appropriate consultation has been undertaken.
Statement of Compatibility with Human Rights
This Determination 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 Determination does not engage any of the applicable rights or freedoms.
Conclusion
This Determination is compatible with human rights as it does not raise any human rights issues.
Date of Effect
The Determination commences on the date it is made by the Minister.
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 2015.
Clause 2 - Commencement
Clause 2 provides for the Determination to commence on the date it is approved by the Minister, consistent with subsection 21(1) of the Act. This Determination will take effect prior to registration on the Federal Register of Legislative Instruments 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 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.