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Schedule 1—Amendments

Schedule 1 Amendments

   

Clean Energy Finance Corporation Act 2012

1  Section 4 (definition of Account )

Repeal the definition.

2  Section 4

Insert:

CEFC Account means the Clean Energy Finance Corporation Special Account established by section 45.

GRF Account means the Grid Reliability Fund Special Account established by section 51A.

grid reliability fund investment : see section 58A.

grid reliability fund money : see subsection 53(1A).

grid reliability funds : see subsection 58(3A).

3  Section 4 (definition of investment )

Repeal the definition, substitute:

investment means:

                     (a)  any mode of application of money or financial assets for the purpose of gaining a return (whether by way of income, capital gain or any other form of return); or

                     (b)  giving a guarantee; or

                     (c)  doing a thing prescribed by the regulations for a purpose related to making a grid reliability fund investment.

4  Section 4 (definition of uncommitted balance )

Repeal the definition, substitute:

uncommitted balance :

                     (a)  in relation to the CEFC Account, means the amount standing to the credit of the CEFC Account less the total of the Corporation’s liabilities (whether actual or contingent) in respect of guarantees given by the Corporation and still in effect, and that are not grid reliability fund investments; and

                     (b)  in relation to the GRF Account, means the amount standing to the credit of the GRF Account less the total of the Corporation’s liabilities (whether actual or contingent) in respect of guarantees that are grid reliability fund investments given by the Corporation and still in effect.

5  After paragraph 9(1)(b)

Insert:

                   (ba)  at the request of a responsible Minister, to assist Commonwealth agencies in the development or implementation of policies or programs relating to supporting the reliability of energy grids;

6  Subdivision A of Division 1 of Part 5 (heading)

Repeal the heading, substitute:

Subdivision A Establishment of CEFC Account

7  Section 45 (heading)

Repeal the heading, substitute:

45   Establishment of CEFC Account

8  Subsection 45(2)

Before “Account”, insert “CEFC”.

9  Subdivision B of Division 1 of Part 5 (heading)

Repeal the heading, substitute:

Subdivision B Credits to CEFC Account

10  Section 46 (heading)

Repeal the heading, substitute:

46   Credits to CEFC Account

11  Section 46

Before “Account”, insert “CEFC”.

12  At the end of paragraph 46(f)

Add “, other than amounts that are to be treated as grid reliability fund money”.

13  At the end of section 46

Add:

Note:          For amounts that are to be treated as grid reliability fund money, see paragraph 54(3)(b).

14  Subdivision C of Division 1 of Part 5 (heading)

Repeal the heading, substitute:

Subdivision C Debits from CEFC Account

15  Section 47 (heading)

Repeal the heading, substitute:

47   Purposes of CEFC Account

16  Section 47

Before “Account”, insert “CEFC”.

17  Paragraph 48(1)(a)

After “Corporation”, insert “, other than liabilities or expenses related to grid reliability fund investments”.

18  Subsection 48(3)

Before “Account”, insert “CEFC”.

19  Subsection 49(2) (note)

Before “Account”, insert “CEFC”.

20  At the end of subsection 50(2)

Add “, other than earnings related to grid reliability fund investments”.

21  Subsection 50(3)

Before “Account”, insert “CEFC”.

22  Subsection 51(2) (note)

Before “Account”, insert “CEFC”.

23  After section 51

Insert:

Division 1A Grid Reliability Fund Special Account

Subdivision A Establishment of GRF Account

51A   Establishment of GRF Account

             (1)  The Grid Reliability Fund Special Account is established by this section.

             (2)  The GRF Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013 .

Subdivision B Credits to GRF Account

51B   Credits to GRF Account

                   There must be credited to the GRF Account amounts equal to the following:

                     (a)  $1 billion, to be credited on the day this paragraph commences;

                     (b)  amounts paid to the Commonwealth under section 54 that are to be treated as grid reliability fund money;

                     (c)  other amounts prescribed by the regulations for the purposes of this paragraph.

Note:          For amounts that are to be treated as grid reliability fund money, see paragraph 54(3)(b).

Subdivision C Debits from GRF Account

51C   Purpose of GRF Account

                   The purpose of the GRF Account is to make payments to the Corporation, so long as the payments are authorised by the nominated Minister under subsection 51E(1).

51D   Corporation’s request for a payment for itself

             (1)  The Corporation may request a payment by the Commonwealth of a specified amount to meet liabilities or expenses of the Corporation related to grid reliability fund investments:

                     (a)  that are already due; or

                     (b)  that will, or that are expected to, become due during the period specified in the request.

             (2)  The Corporation’s request must:

                     (a)  be in writing; and

                     (b)  specify the liabilities or expenses the payment is to meet; and

                     (c)  be in accordance with the agreement under section 52.

             (3)  The Corporation must not request a payment under subsection (1) of an amount that would exceed the uncommitted balance of the GRF Account at the time the request is made.

51E   Nominated Minister’s authorisation of payment to Corporation

             (1)  As soon as practicable after a request is made under section 51D, the nominated Minister must:

                     (a)  determine whether the request is in accordance with the agreement under section 52; and

                     (b)  if satisfied that it is—give written authorisation for the requested payment.

             (2)  If the nominated Minister gives written authorisation for the requested payment, the Commonwealth must, as soon as practicable, pay the authorised amount to the Corporation.

Note:          Under section 51C, the amount is debited from the GRF Account.

             (3)  An authorisation under subsection (1) is not a legislative instrument.

Division 1B Agreement about requests for payments

24  Section 52

Omit “and 50”, substitute “, 50 and 51D”.

25  At the end of paragraph 52(b)

Add “or paragraph 51D(1)(b)”.

26  After paragraph 53(1)(a)

Insert:

                    (aa)  money paid to the Corporation under subsection 51E(2); and

                   (ab)  money received by the Corporation in relation to grid reliability fund investments; and

27  After subsection 53(1)

Insert:

          (1A)  Money covered by paragraphs (1)(aa) and (ab) is grid reliability fund money .

28  After subsection 53(2)

Insert:

          (2A)  In addition, the Corporation’s grid reliability fund money is to be applied only:

                     (a)  in performing its investment function in relation to grid reliability fund investments; and

                     (b)  in paying or discharging the costs, expenses and other obligations incurred by the Corporation in the performance of the Corporation’s functions in relation to grid reliability fund investments; and

                     (c)  in making payments to the Commonwealth under section 54.

29  Subsection 54(3)

Omit all the words after “Corporation”, substitute:

                   must:

                     (a)  comply with the direction; and

                     (b)  specify the portion of the amount paid (if any) that is to be treated as grid reliability fund money.

30  Subsection 54(3) (note)

Repeal the note, substitute:

Note:          Amounts paid by the Corporation are credited to the CEFC Account under paragraph 46(f) or the GRF Account under paragraph 51B(b).

31  After subsection 58(3)

Insert:

          (3A)  For the purposes of subsection (3), disregard any funds invested in grid reliability fund investments ( grid reliability funds ).

32  After section 58

Insert:

58A   Grid reliability fund investments

                   An investment is a grid reliability fund investment if:

                     (a)  the investment is made for the purposes of the Corporation’s investment function after the commencement of this section; and

                     (b)  the investment is made to support:

                              (i)  energy storage; or

                             (ii)  electricity generation, transmission or distribution; or

                            (iii)  electricity grid stabilisation; and

                     (c)  at the time the investment is made, it meets the criteria (if any) set out in the Investment Mandate relating to its role in supporting the security or reliability of the energy system in Australia.

33  Subsection 60(4)

Omit all the words after “ low-emission technology ”, substitute:

                   if:

                     (a)  the technology is for any of the following and supports the achievement of low-emission energy systems in Australia:

                              (i)  energy storage;

                             (ii)  electricity generation, transmission or distribution;

                            (iii)  electricity grid stabilisation; or

                     (b)  the Board is satisfied, in accordance with guidelines made under subsection (5), that the technology is a low-emission technology.

34  Subsection 66(2) (note)

Omit “ Legislative Instruments Act 2003 ”, substitute “ Legislation Act 2003 ”.

35  Subsection 69(3)

Repeal the subsection, substitute:

             (3)  A guarantee is void if, at the time the Corporation purports to give the guarantee:

                     (a)  for a guarantee that is not a grid reliability fund investment—it would secure an amount that is more than the uncommitted balance of the CEFC Account at that time; or

                     (b)  for a guarantee that is a grid reliability fund investment—it would secure an amount that is more than the uncommitted balance of the GRF Account at that time.

To avoid doubt, the guarantee is wholly void regardless of whether a part of the amount it would secure could be covered by the uncommitted balance of the relevant account.

36  Paragraph 74(1)(c)

After “funds”, insert “(disregarding grid reliability funds)”.

37  After paragraph 74(1)(c)

Insert:

                    (ca)  state the total value of grid reliability fund investments as at the end of the period;

38  Paragraph 74(1)(j)

Omit “Account”, substitute “CEFC Account and GRF Account”.

39  Subsection 77(1)

Omit “or 51(1)”, substitute “, 51(1) or 51E(1)”.