7.         This clause states that this Act extends to every external Territory.

Part 2 - National Energy Transition Authority

Division 1 – Establishment

Clause 8: Establishment

9.         This clause establishes the National Energy Transition Authority as a body corporate that must have a seal, may acquire, hold and dispose of real and personal property and may sue and be sued.

Division 2 - Functions

Clause 9: Functions – general

10.       This clause provides for the general functions of the National Energy Transition Authority including law reform, advice, support for communities and workers affected to adapt, helping to attract new public and private investment in job-creating industries and social infrastructure to affected areas, and ensuring ongoing equivalent employment or social services are provided, working with employers in relevant industries to encourage workforce pooling planning with workers and relevant agencies to assist workers nearing retirement age to transition to a voluntary, financially secure retirement; and any other functions conferred on it by this Act or other law. The National Energy Transition Authority can do anything incidental or conducive to the performance of the above functions.

Clause 10: Law reform functions

11.       This clause provides that the National Energy Transition Authority’s law reform functions are to review and propose changes to Commonwealth, State and Territory laws relating to mining, resources, industry policy, industrial relations, electricity generation and related matters, to consult with Commonwealth, State and Territory governments about the proposed changes, to recommend Commonwealth law changes to the Minister and to publish reviews and proposals on its website. This clause also:

●       provides that the National Energy Transition Authority must consider the desirability of complementary Commonwealth, State and Territory legislation when considering law reform under paragraph 11(1)(a);

●       states that if complementary legislation is not possible, recommended changes must assume that the changes will be implemented through Commonwealth legislation;

●       states that recommended changes must be accompanied by draft legislation; and

●       states that the National Energy Transition Authority must give the Minister recommendations for law reform within 12 months of commencement and at other times as it thinks fit.

Clause 11: Advice function

12.       This clause outlines that the National Energy Transition Authority will provide and publish advice to the Minister and Commonwealth, State and Local governments and relevant statutory or other government bodies engaged in transition work, including:

●       sources of renewable energy;

●       particular electricity generation projects;

●       models for return on investment on electricity generation projects;

●       workforce modelling and planning for energy and related industries that are suited to a zero emissions economy with consideration of existing national, state/territory and regional workforce trends;

●       how communities and workers affected by the closure of fossil fuel mines or coal-fired power stations can be worked with to ensure equivalent employment opportunities and social services are maintained, including by attracting new industries to affected areas; and

●       how, and to what extent, emerging renewable energy and related industries can replace existing exports of coal and gas.

Clause 12: Functions – constitutional limits  

14.       This clause provides the constitutional limits under which the National Energy Transition Authority operates.

Clause 13: Functions – Minister may give directions  

15.       This clause sets out the directions that the Minister may give to the National Energy Transition Authority.

Clause 14: Commonwealth consent to conferral of functions etc. on the National Energy Transition Authority by State and Territory laws

16.       This clause states that a law of a State or Territory may confer powers or functions on the National Energy Transition Authority.

Clause 15: How duty is imposed on the National Energy Transition Authority by State and Territory laws

17.       This clause outlines how duty is imposed on the National Energy Transition Authority by State and Territory laws.

Clause 16: When State and Territory laws impose a duty on the National Energy Transition Authority

18.       This clause outlines when State and Territory laws impose a duty on the National Energy Transition Authority.

Division 3 – Power, privileges and immunities

Clause 17: National Energy Transition Authority’s Powers

19.       This clause sets out the National Energy Transition Authority’s powers.

Clause 18: National Energy Transition Authority does not have privileges and immunities of the Crown

20.       This clause provides that the National Energy Transition Authority does not have the privileges and immunities of the Crown.

Part 3 – Board of National Energy Transition Authority

Division 1 – Establishment and functions

Clause 19: Establishment

21.       This clause establishes the National Energy Transition Authority Board.

Clause 20: Functions of the Board

22.       This clause sets out the functions of the National Energy Transition Authority Board.

Division 2 – Board Members

Clauses 21-30

23.       These clauses provide for the membership, appointment, remuneration, leave of absence, resignation and termination of board members and the chair of the board.

Division 3 – Meetings of the Board

Clauses 31-37

24.       These clauses set out the practice for meetings and decisions of the board.

Part 4 - Chief Executive Officer, staff and consultants and committees

Division 1 – Chief Executive Office of National Energy Transition Authority

Clauses 38-48

25.       These clauses provide for the appointment of the Chief Executive Officer of National Energy Transition Authority and sets out the conditions of employment.

Division 2 – Staff and consultants

Clauses 49-50

26.       These clauses set out the basis under which staff and consultants can be engaged.

Division 3 – Committees

Clauses 51-52

27.       These clauses provide for the establishment of committees to advise or assist the board and set out the terms in which they are engaged.

Part 5 - Finance

Clause 53: Money payable to National Energy Transition Authority

28.       This clause sets out that the Parliament may appropriate money for National Energy Transition Authority and that the Finance Minister may give directions about the money payable to National Energy Transition Authority. Any written direction given by the Finance Minister is not a legislative instrument.

Clause 54: Application of money by National Energy Transition Authority

29.       This clause prescribes that the application of money by the National Energy Transition Authority may only be applied in the performance of its functions and the exercise of its power or in payment of any remuneration or allowances payable under this Act. As under section 59 of the Public Governance, Performance and Accountability Act 2013, money that is not immediately required for the purpose of National Energy Transition Authority may be invested.

Clause 55: Borrowing from the Commonwealth

30.       This clause provides that the Finance Minister may lend money to the National Energy Transition Authority out of money appropriated by the Parliament.

Clause 56: Borrowing from persons other than the Commonwealth

31.       This clause sets out that the National Energy Transition Authority may borrow money from persons other than the Commonwealth with the written approval of the Treasurer. This money may be partly or wholly in foreign currency,

Clause 57: Guarantee of borrowing

32.       This clause determines that the Treasurer may guarantee the money borrowed by the National Energy Transition Authority from persons other than the Commonwealth.

Clause 58: National Energy Transition Authority may give security

33.       This clause provides that National Energy Transition Authority may give security over the whole or part of its assets for the performance by National Energy Transition Authority of any obligation under section 56 or 57 or the payment to the Commonwealth of amounts paid by the Commonwealth under a guarantee.

Clause 59: National Energy Transition Authority may charge fees

34.       This clause determines that the National Energy Transition Authority may charge fees in relation to its function.

Clause 60: Taxation

35.       This clause sets out that the National Energy Transition Authority is not subject to taxation under any law of the Commonwealth, State or Territory. A note on this clause prescribes that the National Energy Transition Authority may be subject to taxation under certain laws, for example, section 66 of the Fringe Benefits Tax Assessment Act 1986.

Part 6 - Strategic plans and annual operational plans

Clause 61: Planning periods

36.       This clause provides that planning periods for the Board of the National Energy Transition Authority will be periods of not more than 5 years, and that the Board will inform the Minister of all declarations of planning periods.

Clause 62: Strategic plans

37.       This clause provides that before the commencement of each planning period the Board will formulate a strategic plan for the relevant planning period, setting out the objectives and policies of the National Energy Transition Authority in performing its functions, and provide that plan to the Minister.

Clause 63: Annual operational plans

38.       This clause provides that before the commencement of each financial year the Chief Executive Officer will formulate an operational plan for the financial year, setting out the strategies, activities and resources of the National Energy Transition Authority giving effect to the relevant strategic plan, and provide that plan to the Board.

Part 7 - Miscellaneous

Clause 64: Delegation by National Energy Transition Authority

36.       This clause provides that the National Energy Transition Authority may delegate all or any of its powers or functions under this Act to a board member or the CEO. In exercising these powers, the delegate must comply with any directions of the National Energy Transition Authority.

Clause 65: Delegation by Board

37.       This clause provides that the board may delegate any of its powers or functions under this Act to a board member or the CEO. In exercising these powers, the delegate must comply with any directions of the National Energy Transition Authority.

Clause 66: Delegation and subdelegation by CEO

38.       This clause provides that the CEO may delegate any CEO powers or functions to a senior member of staff referred to in section 50. In exercising these powers the delegate must comply with any directions of the CEO.

Clause 67: Rules

39.       This clause provides that the Minister may prescribe matters by making rules. These rules cannot create an offence or civil penalty, provide power of arrest, detention, entry search or seizure, impose a tax, determine an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act or directly amend the text of this Act.

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

National Energy Transition Authority Bill 2022

This Bill 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.

Overview of the Bill

The Bill establishes the National Energy Transition Authority, an authority to plan and drive the transition to a new clean energy system.

Human rights implications

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

Conclusion

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

Senator Allman-Payne