2022-2023

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

Nature Repair Market Bill 2023

 

No.      , 2023

 

(Climate Change, Energy, the Environment and Water)

 

 

 

A Bill for an Act to establish a national voluntary framework for projects to enhance or protect biodiversity, and for other purposes

   

   

   

Contents

Part 1—Preliminary                                                                                                              1

1............ Short title............................................................................................ 1

2............ Commencement.................................................................................. 2

3............ Objects of this Act.............................................................................. 2

4............ Simplified outline of this Act............................................................. 3

5............ Crown to be bound............................................................................. 4

6............ Extension to external Territories........................................................ 5

7............ Definitions.......................................................................................... 5

8............ Vacancy in the office of a Nature Repair Market Committee member 18

9............ Electronic notice transmitted to the Regulator................................. 18

Part 2—Registered biodiversity projects                                                               19

Division 1—Introduction                                                                                             19

10.......... Simplified outline of this Part.......................................................... 19

Division 2—Registration of biodiversity project                                              20

11.......... Application for approval of registration of biodiversity project...... 20

12.......... Form of application.......................................................................... 20

13.......... Further information.......................................................................... 22

14.......... Withdrawal of application................................................................ 22

15.......... Approval of registration of biodiversity project............................... 23

16.......... Suspension of processing of applications for registrations of biodiversity projects                27

17.......... Registration may be subject to condition about obtaining regulatory approvals     28

18.......... Registration may be subject to condition about obtaining consents from eligible interest holders         29

18A....... Registration may be subject to condition about obtaining consent from registered native title body corporate.......................................................................................................... 30

Division 3—Variation of registration                                                                     32

19.......... Voluntary variation of registration of biodiversity project—change in identity of project proponent    32

20.......... Voluntary variation of registration of biodiversity project—changes in project area etc.       33

21.......... Voluntary variation of conditional registration of biodiversity project—condition of registration has been met.......................................................................................................... 34

22.......... Procedures for voluntary variation of registration of biodiversity project               35

Division 4—Cancellation of registration of biodiversity project               37

Subdivision A—Voluntary cancellation of registration of biodiversity project             37

23.......... Voluntary cancellation of registration of biodiversity project—certificate in effect               37

24.......... Voluntary cancellation of registration of biodiversity project—no certificate in effect          38

25.......... Procedures for voluntary cancellation of registration of biodiversity project          38

Subdivision B—Unilateral cancellation of registration of biodiversity project             40

26.......... Unilateral cancellation of registration of biodiversity project—condition of registration has not been met.......................................................................................................... 40

27.......... Unilateral cancellation of registration of biodiversity project—project not commenced, or unlikely to result in issuing of biodiversity certificate..................................................... 40

28.......... Unilateral cancellation of registration of biodiversity project—eligibility requirements not met etc.    41

29.......... Unilateral cancellation of registration of biodiversity project—project proponent ceases to be a fit and proper person............................................................................................... 41

30.......... Unilateral cancellation of registration of biodiversity project—project proponent ceases to exist etc.  42

31.......... Unilateral cancellation of registration of biodiversity project—false or misleading information           43

32.......... Notice of unilateral cancellation of registration of biodiversity project  44

Subdivision C—Cancellation of registration of biodiversity project at the end of the permanence period for the project                                                                                     44

32A....... Cancellation of registration of biodiversity project at the end of the permanence period for the project.......................................................................................................... 44

Division 5—Excluded biodiversity projects                                                        45

33.......... Excluded biodiversity projects......................................................... 45

Division 6—Permanence period                                                                               46

34.......... Permanence period........................................................................... 46

Part 3—Multiple project proponents                                                                       50

Division 1—Introduction                                                                                             50

35.......... Simplified outline of this Part.......................................................... 50

Division 2—References to project proponents                                                   51

36.......... References to project proponents..................................................... 51

Division 3—Nominee of multiple project proponents                                    52

37.......... Nomination of nominee by multiple project proponents—nomination accompanying application        52

38.......... Nomination of nominee by multiple project proponents—other nominations        53

39.......... Revocation and cessation of nomination.......................................... 53

40.......... Service of documents on nominee.................................................... 54

41.......... Eligible voluntary action taken by nominee..................................... 54

42.......... Unilateral cancellation of registration of biodiversity project—failure of multiple project proponents to nominate a nominee.......................................................................... 55

Division 4—Obligations of multiple project proponents                               57

43.......... Obligations of multiple project proponents...................................... 57

Part 4—Methodology determinations                                                                     58

Division 1—Introduction                                                                                             58

44.......... Simplified outline of this Part.......................................................... 58

Division 2—Methodology determinations                                                            59

Subdivision A—Making of methodology determinations                              59

45.......... Methodology determinations............................................................ 59

46.......... Civil penalties—requirements in methodology determination........ 62

47.......... Procedure for making a methodology determination....................... 63

Subdivision B—Variation of methodology determinations                          65

48.......... Variation of methodology determinations........................................ 65

49.......... When variation takes effect.............................................................. 66

Subdivision C—Duration, expiry and revocation of methodology determinations      69

50.......... Duration of methodology determinations......................................... 69

51.......... Revocation of methodology determinations..................................... 70

52.......... Consequences of methodology determination ceasing to have effect 71

53.......... Effect of methodology determination ceasing to have effect—applications for registration  73

Subdivision D—Advice about making, varying or revoking methodology determinations       74

54.......... Advice by the Nature Repair Market Committee............................. 74

55.......... Additional matters for the Nature Repair Market Committee to take into account 76

Subdivision E—Consultation by the Nature Repair Market Committee 77

56.......... Consultation by the Nature Repair Market Committee.................... 77

Division 3—Biodiversity integrity standards                                                     79

57.......... Biodiversity integrity standards........................................................ 79

Division 4—Biodiversity assessment instruments                                            82

Subdivision A—Making of biodiversity assessment instruments                82

58.......... Biodiversity assessment instruments................................................ 82

59.......... Procedure for making a biodiversity assessment instrument........... 82

Subdivision B—Variation of biodiversity assessment instruments            84

60.......... Variation of biodiversity assessment instruments............................ 84

61.......... Procedure for varying a biodiversity assessment instrument........... 84

Subdivision C—Revocation of biodiversity assessment instruments         86

62.......... Revocation of biodiversity assessment instruments......................... 86

63.......... Procedure for revoking a biodiversity assessment instrument......... 86

Subdivision D—Advice about making, varying or revoking biodiversity assessment instruments          88

64.......... Advice by the Nature Repair Market Committee............................. 88

65.......... Consultation by the Nature Repair Market Committee.................... 90

65A....... Additional matters for the Nature Repair Market Committee to take into account 91

Part 5—Biodiversity certificates                                                                                 92

Division 1—Introduction                                                                                             92

66.......... Simplified outline of this Part.......................................................... 92

Division 2—Issue of biodiversity certificates                                                      93

67.......... Application for biodiversity certificate............................................ 93

68.......... Form of application.......................................................................... 93

69.......... Further information.......................................................................... 94

70.......... Issue of biodiversity certificate........................................................ 95

70A....... Correction of biodiversity certificate............................................... 96

71.......... Basis on which biodiversity certificates are issued.......................... 96

Division 3—Property in biodiversity certificates                                              98

72.......... A biodiversity certificate is personal property................................. 98

73.......... Ownership of biodiversity certificate............................................... 98

74.......... Transmission of biodiversity certificates......................................... 98

75.......... Registration of equitable interests in relation to biodiversity certificates                99

76.......... Equitable interests in relation to biodiversity certificates................ 99

Division 4—Cancellation of biodiversity certificate at the end of the permanence period for a registered biodiversity project                                                      100

77.......... Cancellation of biodiversity certificate at the end of the permanence period for a registered biodiversity project............................................................................................. 100

Division 5—Cancellation of biodiversity certificate if registration of registered biodiversity project is cancelled                                                                                                  101

77A....... Cancellation of biodiversity certificate if registration of registered biodiversity project is cancelled     101

Part 6—Purchase of biodiversity certificates by the Commonwealth 102

Division 1—Introduction                                                                                           102

78.......... Simplified outline of this Part........................................................ 102

Division 2—Biodiversity conservation contracts                                            103

79.......... Biodiversity conservation contracts............................................... 103

80.......... When biodiversity conservation contracts may be entered into..... 103

81.......... Secretary has powers etc. of the Commonwealth........................... 104

82.......... Conferral of powers on the Secretary............................................. 104

Division 3—Biodiversity conservation purchasing processes                   105

83.......... Biodiversity conservation purchasing process............................... 105

84.......... Conduct of biodiversity conservation purchasing processes.......... 105

Division 4—Miscellaneous                                                                                        107

85.......... Rules may provide for certain matters relating to purchased biodiversity certificates            107

86.......... Certain instruments relating to Commonwealth procurement are not applicable    107

87.......... Biodiversity conservation contracts are not instruments made under this Act        107

Part 7—Interests in land                                                                                                108

Division 1—Introduction                                                                                           108

88.......... Simplified outline of this Part........................................................ 108

Division 2—Eligible interest in an area of land                                               109

89.......... Eligible interest in an area of land—Torrens system land............. 109

90.......... Eligible interest in an area of land—Crown land that is not Torrens system land  111

92.......... Eligible interest in an area of land—Aboriginal land council........ 113

Division 3—Freehold land rights land                                                                 114

93.......... Regulator to notify Crown lands Minister of approval of registration of biodiversity project                114

Division 4—Entries in title registers                                                                     115

94.......... Entries in title registers—general................................................... 115

95.......... Entries in title registers—biodiversity maintenance areas............. 115

Part 8—Fit and proper person                                                                                   116

96.......... Simplified outline of this Part........................................................ 116

97.......... Fit and proper person—individuals................................................ 116

98.......... Fit and proper person—corporations.............................................. 118

99.......... Fit and proper person—trusts......................................................... 121

99A....... Fit and proper person—non-corporate government bodies............ 124

Part 9—Reporting and notification requirements                                         127

Division 1—Introduction                                                                                           127

100........ Simplified outline of this Part........................................................ 127

Division 2—Reporting requirements                                                                   128

Subdivision A—Category A biodiversity project reports                            128

101........ Category A biodiversity project reports—first report.................... 128

102........ Category A biodiversity project reports—subsequent reports....... 128

103........ Requirements for category A biodiversity project reports............. 130

Subdivision B—Category B biodiversity project reports                            132

104........ Category B biodiversity project reports......................................... 132

Subdivision C—Alternative assurance agreements                                      134

104A..... Alternative assurance agreements.................................................. 134

Division 3—Notification requirements                                                                136

105........ Notification requirement—project proponent ceases to have right to carry out project          136

106........ Notification requirement—withdrawal or cessation of regulatory approval           137

107........ Notification requirement—death of project proponent.................. 137

108........ Notification requirement—methodology determinations.............. 138

109........ Notification requirement—reversal of biodiversity outcome........ 138

110........ Notification requirement—event or conduct that causes, or is likely to cause, reversal of biodiversity outcome........................................................................................................ 139

111........ Significant reversals in biodiversity outcomes—notification requirements            140

112........ Notification requirement—event relevant to whether a project proponent is a fit and proper person    140

113........ Notification requirement—variation of project plan...................... 142

114........ The rules may impose notification requirements........................... 143

Part 10—Information-gathering powers                                                             144

115........ Simplified outline of this Part........................................................ 144

116........ Regulator may obtain information or documents........................... 144

117........ Copying documents—compensation.............................................. 145

118........ Copies of documents...................................................................... 145

119........ Regulator may retain documents.................................................... 145

Part 11—Audits                                                                                                                   147

Division 1—Introduction                                                                                           147

120........ Simplified outline of this Part........................................................ 147

Division 2—Audits                                                                                                        148

121........ Compliance audits.......................................................................... 148

122........ Other audits.................................................................................... 150

123........ Information-gathering of audit team leaders and persons assisting audit team leaders           151

Division 3—Audit information                                                                                153

Subdivision A—Information                                                                               153

124........ Meaning of audit information ........................................................ 153

125........ Meaning of protected audit information ........................................ 153

Subdivision B—Secrecy                                                                                        154

126........ Secrecy—protected audit information............................................ 154

Subdivision C—Disclosure or use of audit information                               154

127........ Disclosure or use for purposes of carrying out biodiversity audit or preparing biodiversity audit report etc......................................................................................................... 154

128........ Disclosure to the Regulator............................................................ 155

129........ Disclosure to Minister etc............................................................... 155

130........ Disclosure to the Secretary etc....................................................... 155

131........ Disclosure to reduce serious risk to life or health of individual..... 156

132........ Disclosure to reduce serious risk to the environment..................... 156

133........ Disclosure to a court, tribunal etc................................................... 156

134........ Disclosure of publicly available information................................. 157

135........ Disclosure with consent.................................................................. 157

136........ Disclosure to person to whom audit information relates................ 157

137........ Disclosure to person who provided audit information................... 157

138........ Disclosure of statistics.................................................................... 157

Part 12—Deposit of biodiversity certificates with the Regulator         158

139........ Simplified outline of this Part........................................................ 158

140........ Application to approve the deposit of a biodiversity certificate with the Regulator               158

141........ Approval of deposit of a biodiversity certificate with the Regulator 159

142........ Deposit of a biodiversity certificate with the Regulator................. 159

Part 13—Relinquishment requirements                                                              161

Division 1—Introduction                                                                                           161

143........ Simplified outline of this Part........................................................ 161

Division 2—Relinquishment notices                                                                     162

144........ Relinquishment notice—false or misleading information.............. 162

146........ Relinquishment notice—reversal of biodiversity outcome other than due to natural disturbance or conduct etc......................................................................................................... 163

147........ Relinquishment notice—reversal of biodiversity outcome due to natural disturbance or conduct and no mitigation happens......................................................................... 163

147A..... Relinquishment notice—circumstances prescribed by the rules.... 164

148........ Significant reversals in biodiversity outcomes—relinquishment requirements       165

149........ Form and content of relinquishment notice.................................... 165

Division 3—Complying with a relinquishment notice                                  166

150........ Requirement for compliance with relinquishment notice.............. 166

151........ Compliance with relinquishment requirement—relinquishing equivalent biodiversity certificate or certificates........................................................................................................ 168

152........ How biodiversity certificates are relinquished............................... 169

Part 14—Biodiversity maintenance declarations                                           171

Division 1—Introduction                                                                                           171

153........ Simplified outline of this Part........................................................ 171

Division 2—Biodiversity maintenance declarations                                      172

154........ Biodiversity maintenance declaration............................................ 172

155........ Civil penalty for carrying out declared prohibited activity............ 174

156........ When a biodiversity maintenance declaration ceases to be in force 174

157........ Variation or revocation of biodiversity maintenance declaration.. 175

158........ Revocation of biodiversity maintenance declaration—voluntary relinquishment of biodiversity certificate........................................................................................................ 177

Part 15—Registers                                                                                                              179

Division 1—Introduction                                                                                           179

160........ Simplified outline of this Part........................................................ 179

Division 2—Biodiversity Market Register                                                         180

161........ Biodiversity Market Register......................................................... 180

162........ Entries in the Register—registered biodiversity projects and former registered biodiversity projects   180

163........ Requests for information about project area not to be set out in the Register         182

163A..... Requests for information about a project not to be set out in the Register              184

164........ Entries in the Register—biodiversity certificates........................... 186

165........ Entries in the Register—accounts for holding biodiversity certificates.. 186

166........ Suspension of operation of the Register......................................... 186

167........ Rules may make provision in relation to the Register.................... 187

168........ Use and disclosure of information obtained from the Register...... 188

Division 3—Online platform                                                                                    190

169........ Online Platform.............................................................................. 190

Part 16—Publication of information                                                                      191

Division 1—Introduction                                                                                           191

170........ Simplified outline of this Part........................................................ 191

Division 2—Information about biodiversity certificates                             192

171........ Information about biodiversity certificates.................................... 192

172........ Reports about activities of Regulator............................................. 192

173........ Publication of concise description of the characteristics of biodiversity certificates               192

Division 3—Information about biodiversity certificates purchased by the Commonwealth             194

174........ Information about biodiversity conservation purchasing processes 194

175........ Annual reports about purchases of biodiversity certificates.......... 194

Division 4—Information about relinquishment requirements                 196

176........ Information about relinquishment requirements............................ 196

177........ Information about relinquished certificates.................................... 197

Part 17—Record-keeping and project monitoring requirements        198

Division 1—Introduction                                                                                           198

178........ Simplified outline of this Part........................................................ 198

Division 2—Record-keeping requirements                                                       199

179........ Record-keeping requirements—general......................................... 199

180........ Record-keeping requirements—preparation of biodiversity project report             199

181........ Record-keeping requirements—methodology determinations....... 200

Division 3—Project monitoring requirements                                                 201

182........ Project monitoring requirements—methodology determinations.. 201

Part 18—Enforcement                                                                                                     202

Division 1—Introduction                                                                                           202

183........ Simplified outline of this Part........................................................ 202

184........ Appointment of inspectors............................................................. 202

Division 2—Monitoring powers                                                                              204

185........ Monitoring powers......................................................................... 204

186........ Modifications of Part 2 of the Regulatory Powers Act.................. 205

Division 3—Investigation powers                                                                          208

187........ Investigation powers....................................................................... 208

188........ Modifications of Part 3 of the Regulatory Powers Act.................. 209

Division 4—Civil penalty provisions                                                                    212

189........ Civil penalty provisions.................................................................. 212

Division 5—Infringement notices                                                                          214

190........ Infringement notices....................................................................... 214

Division 6—Enforceable undertakings                                                               216

191........ Enforceable undertakings............................................................... 216

Division 7—Injunctions                                                                                              218

192........ Injunctions...................................................................................... 218

Part 19—Nature Repair Market Committee                                                    220

Division 1—Introduction                                                                                           220

193........ Simplified outline of this Part........................................................ 220

Division 2—Establishment and functions of the Nature Repair Market Committee            221

194........ Nature Repair Market Committee.................................................. 221

195........ Functions of the Nature Repair Market Committee....................... 221

195A..... Request for review of methodology determinations...................... 222

196........ Nature Repair Market Committee may obtain advice.................... 223

196A..... Nature Repair Market Committee must publish outcomes of reviews 223

Division 3—Membership of the Nature Repair Market Committee     224

197........ Membership of the Nature Repair Market Committee................... 224

198........ Appointment of Nature Repair Market Committee members........ 224

199........ Period for appointment for Nature Repair Market Committee members 225

200........ Acting Nature Repair Market Committee members....................... 226

201........ Procedures...................................................................................... 227

202........ Disclosure of interests to the Minister............................................ 228

203........ Disclosure of interests to the Nature Repair Market Committee... 228

204........ Other paid work.............................................................................. 229

205........ Remuneration................................................................................. 229

206........ Leave of absence............................................................................ 229

207........ Resignation..................................................................................... 229

208........ Termination of appointment........................................................... 230

209........ Other terms and conditions............................................................. 231

210........ Assistance to Nature Repair Market Committee............................ 231

210A..... Application of the finance law....................................................... 231

Part 20—Review of decisions                                                                                      232

Division 1—Introduction                                                                                           232

211........ Simplified outline of this Part........................................................ 232

Division 2—Decisions of the Regulator                                                               233

212........ Reviewable decisions..................................................................... 233

213........ Notice of decision and reconsideration rights to be given—decisions made by delegates of the Regulator........................................................................................................ 234

214........ Applications for reconsideration of decisions made by delegates of the Regulator                235

215........ Reconsideration by the Regulator.................................................. 235

216........ Deadline for reconsideration.......................................................... 236

217........ Review by the Administrative Appeals Tribunal........................... 236

Part 21—Miscellaneous                                                                                                   237

218........ Simplified outline of this Part........................................................ 237

219........ Miscellaneous functions of the Regulator...................................... 237

220........ Treatment of trusts.......................................................................... 238

221........ Rules may provide for voluntary accreditation of advisers etc...... 238

222........ Information previously given to the Regulator.............................. 239

223........ Delegation by the Minister............................................................. 239

224........ Delegation by the Secretary........................................................... 240

225........ Concurrent operation of State and Territory laws.......................... 240

226........ Law relating to legal professional privilege not affected............... 241

227........ Arrangements with States and Territories...................................... 241

228........ Liability for damages...................................................................... 241

229........ Executive power of the Commonwealth........................................ 242

230........ Notional payments by the Commonwealth.................................... 242

231........ Compensation for acquisition of property...................................... 242

232........ Native title rights not affected........................................................ 243

233........ Racial Discrimination Act not affected.......................................... 243

234........ Administrative decisions under the rules....................................... 243

235........ Revocation or variation of instruments.......................................... 243

236........ Review of operation of this Act etc................................................ 243

237........ Rules............................................................................................... 245

 

A Bill for an Act to establish a national voluntary framework for projects to enhance or protect biodiversity, and for other purposes

The Parliament of Australia enacts: