A Bill for an Act to amend the Clean Energy Finance Corporation Act 2012, and for related purposes
The Parliament of Australia enacts:
1 Short title
This Act is the Clean Energy Finance Corporation Amendment (Grid Reliability Fund) Act 2020.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
| Commencement information |
| Column 1 | Column 2 | Column 3 |
| Provisions | Commencement | Date/Details |
| 1. The whole of this Act | The day after this Act receives the Royal Assent. | |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
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)”.