SNOWY HYDRO CORPORATISATION AMENDMENT (NO NEW FOSSIL FUELS) BILL 2021
OUTLINE
The Bill would have the effect of prohibiting Snowy Hydro from doing any of the following:
· Develop, construct or be involved in the development or construction, of new fossil fuel-based electricity generation capacity;
· Acquire, purchase or otherwise invest in, or be involved in acquiring, purchasing or investing in, new fossil fuel-based electricity generation capacity;
· Operate, or be involved in the operation of, new fossil fuel-based electricity generation capacity.
However this prohibition would only impact ‘new’ fossil-fuel based electricity generation capacity, which would not include:
· Fossil fuel-based electricity generation capacity that derives from assets or facilities that a Snowy hydro-group company owns, controls or operates immediately before commencement; or
· Fossil fuel-based electricity generation capacity that derives, or will derive, from assets or facilities that a Snowy hydro-group company is required to construct, develop, acquire, purchase, invest in or operate under a binding contract entered into by a Snowy hydro-group company before commencement.
The Bill would also insert a new objects clause, a new paragraph of the simplified outline and a number of new definitions in order to facilitate these changes.
NOTES ON CLAUSES
Clause 1: Short Title
This clause provides for the Act to be cited as the Snowy Hydro Corporatisation Amendment (No New Fossil Fuels) Act 2021.
Clause 2: Commencement
This clause provides for the whole of this Act to commence the day after it receives Royal Assent.
Clause 3: Schedules
Each Act specified in a Schedule to this Act is amended or repealed as is set out in the applicable items in the Schedule. Any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendments
Amends the Snowy Hydro Corporatisation Act 1997
Items 1 and 2:
Introduces an additional objects clause to the Act, which contextualises the prohibition on the creation or investing in new fossil fuel-based electricity generation capacity within the goal of reducing Australia’s greenhouse gas pollution.
Item 3:
Updates the simplified outline to reflect that Snowy Hydro and Snowy hydro-group companies may not be involved in creating or investing in new fossil fuel-based electricity generation capacity.
Item 4:
Defines ‘fossil fuels’ and ‘fossil fuel-based electricity generation capacity’ for the purposes of the Act. The definition of ‘fossil fuels’ reflects the definition prescribed in regulation 7 of the Renewable Energy (Electricity) Regulations 2001 for the purposes of section 17 of the Renewable Energy (Electricity) Act 2000.
Items 5 and 6:
a) Sets out a number of restricted actions that Snowy Hydro and Snowy hydro-group corporations cannot undertake, including the development or construction of new fossil fuel-based electricity generation capacity, the acquisition, purchase or investment in new fossil fuel-based electricity generation capacity and the operation of new fossil fuel-based electricity generation capacity.
b) Defines ‘new’ for the purposes of the Act, noting that fossil fuel-based electricity generation capacity does not count as new if it derives from assets or facilities that a Snowy hydro-group company owns, controls or operates immediately before commencement, or is required to construct, develop, acquire, purchase, invest in or operate under a contract entered into before commencement.
This item is only meant to apply to existing generation assets, not to assets such as land, existing renewable generation capacity or other assets that would not be classed as fossil fuel-based electricity generation capacity assets.
c) Makes clear that directors of Snowy Hydro and Snowy hydro-group companies have an obligation to ensure that these new requirements are complied with.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Snowy Hydro Corporatisation Amendment (No New Fossil Fuels) Bill 2021
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 would have the effect of prohibiting Snowy Hydro from doing any of the following:
· Develop, construct or be involved in the development or construction, of new fossil fuel-based electricity generation capacity;
· Acquire, purchase or otherwise invest in, or be involved in acquiring, purchasing or investing in, new fossil fuel-based electricity generation capacity;
· Operate, or be involved in the operation of, new fossil fuel-based electricity generation capacity.
However this prohibition would only impact ‘new’ fossil-fuel based electricity generation capacity, which would not include:
· Fossil fuel-based electricity generation capacity that derives from assets or facilities that a Snowy hydro-group company owns, controls or operates immediately before commencement; or
· Fossil fuel-based electricity generation capacity that derives, or will derive, from assets or facilities that a Snowy hydro-group company is required to construct, develop, acquire, purchase, invest in or operate under a binding contract entered into by a Snowy hydro-group company before commencement.
The Bill would also insert a new objects clause, a new paragraph of the simplified outline and a number of new definitions in order to facilitate these changes.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms, other than to promote the safety and wellbeing of people by helping to ensure a safe climate.
Conclusion
This Bill is compatible with human rights as it does not otherwise raise any human rights issues.
Senator Larissa Waters