FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (ENVIRONMENT AND ENERGY MEASURES NO. 1) REGULATIONS 2017 (F2017L00215) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

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FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (ENVIRONMENT AND ENERGY MEASURES NO. 1) REGULATIONS 2017 (F2017L00215)

EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Finance

 

Financial Framework (Supplementary Powers) Act 1997

 

Financial Framework (Supplementary Powers) Amendment

(Environment and Energy Measures No. 1) Regulations 2017

 

The Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) confers on the Commonwealth, in certain circumstances, powers to make arrangements under which money can be spent; or to make grants of financial assistance; and to form, or otherwise be involved in, companies.  The arrangements, grants, programs and companies (or classes of arrangements or grants in relation to which the powers are conferred) are specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal Regulations).  The FF(SP) Act applies to Ministers and the accountable authorities of non-corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013

 

Section 65 of the FF(SP) Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to that Act.

 

Section 32B of the FF(SP) Act authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Principal Regulations.  Section 32B also authorises the Commonwealth to make, vary and administer arrangements for the purposes of programs specified in the Principal Regulations.  Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs. 

 

Schedule 1 to the Regulations amends the Principal Regulations to establish legislative authority in Schedule 1AB for government spending on three programs that were announced during the 2016 federal election.  The programs will be administered by the Department of the Environment and Energy. 

 

Funding will be provided for:

*         the Improving Your Local Parks and Environment Program to support communities revitalise, maintain, manage and improve local parks, including nature reserves, rivers, coastal areas and community facilities;

*         the Solar Communities Program to provide grants to community organisations for the installation of roof top solar photovoltaic, solar hot water heating and solar-connected battery systems; and

*         the Food Rescue Charity Program to enable four food rescue charities to install solar photovoltaic, battery and energy efficient refrigeration systems.

 

Details of the Regulations are set out at Attachment A.  A Statement of Compatibility with Human Rights is at Attachment B

 

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.  The Regulations commence on the day after registration on the Federal Register of Legislation. 

 

Consultation

 

In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of the Environment and Energy.

 

A regulation impact statement is not required as the Regulations only apply to non-corporate Commonwealth entities and do not adversely affect the private sector. 

 

 


Details of the Financial Framework (Supplementary Powers) Amendment (Environment and Energy Measures No. 1) Regulations 2017

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Environment and Energy Measures No. 1) Regulation 2017.

 

Section 2 - Commencement

 

This section provides that the Regulations commence on the day after registration on the Federal Register of Legislation. 

 

Section 3 - Authority

 

This section provides that the Regulations are made under the Financial Framework (Supplementary Powers) Act 1997.

 

Section 4 - Schedules

 

This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 are amended as set out in the Schedules to the Regulations.

 

Schedule 1 - Amendments

 

Item 1 - In the appropriate position in Part 4 of Schedule 1AB (table)

 

This item adds three new table items to Part 4 of Schedule 1AB to establish legislative authority for government spending on three initiatives which will be administered by the Department of the Environment and Energy. 

 

New table item 194 establishes legislative authority for the Government to fund the Improving Your Local Parks and Environment Program.

 

The program will provide funding to support communities revitalise, maintain, manage and improve local parks, including nature reserves, rivers, coastal areas and community facilities.

 

Funding of $22.8 million over four years from 2016-17 will be provided to local councils, community groups, environment groups and others to build environmental awareness and ensure communities have better and more accessible green spaces.  Projects could include facility improvements, weed and invasive species control, revegetation and restoration of the natural environment, walkways and riverside walks, community gardens and riparian erosion management.

 

The program was announced on 21 May 2016 as an election commitment by the Prime Minister, the Hon Malcolm Turnbull MP, and the then Minister for the Environment, the Hon Greg Hunt MP.

 

The program will be delivered by the Department of Industry, Innovation and Science as part of the Government's Streamlining Grants Administration program.  The Improving Your Local Parks and Environment Program is being delivered through a non-competitive one-off process, as well as discretionary grants at the Minister's discretion.  In accordance with the Commonwealth Grants Rules and Guidelines, program guidelines containing eligibility and assessment criteria will be available on the Department of Industry, Innovation and Science's website at www.business.gov.au/iylpe.  Grant recipients must demonstrate that a project meets the program's criteria before receiving a grant.

 

The Department of the Environment and Energy will make recommendations to the Minister for the Environment and Energy on the merits of each proposal.  The Minister will make the final determination on funding.

 

Funding decisions for the measure will be made in accordance with the above selection process, and in accordance with applicable legislative requirements under the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Grants Rules and Guidelines.

 

Under the Commonwealth Grants Rules and Guidelines, details of all grants provided will be published on the Department of the Environment and Energy's website at https://www.environment.gov.au/about-us/accountability-reporting/grants-listing.

 

The program will not be subject to a merits review mechanism because the program will be delivered through a highly targeted non-competitive funding round to identified local councils, community groups, environment groups and others.  Also, as this is a one-off funding round, an application for merits review may result in delays in finalising the grants and delay providing funding to recipients.  Information on complaints mechanisms and how complaints will be dealt with is included in the program guidelines.  Complaints may be raised with the Department of Industry, Innovation and Science by phone or in writing.  If the person is not satisfied with the way the complaint is handled, they are invited to contact the Commonwealth Ombudsman.  The guaranteed right of review under section 75(v) of the Constitution, and review under section 39B of the Judiciary Act 1903, would still be available.  People affected by spending decisions would also have recourse to the Commonwealth Ombudsman where appropriate.

 

Funding for the program will come from Program 1.1: Sustainable Management of Natural Resources and the Environment, which is part of Outcome 1.  Details are set out in the 2016-17 Mid-Year Economic and Fiscal Outlook under the measure 'Support Your Local Parks and Environment' at page 156 and in the Portfolio Additional Estimates Statements 2016-17, Environment and Energy Portfolio at page 16.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the external affairs power (section 51(xxix)) of the Constitution.

 


 

New table item 195 establishes legislative authority for the Government to fund the Solar Communities Program.

 

The $5 million Solar Communities Program will provide funding of up to $100,000 to regions which will allow community and sporting groups to install solar photovoltaic, solar water heating and solar-connected battery systems at their facilities to reduce emissions, reduce their electricity costs and support renewable energy.  Individual projects will receive up to $15,000.

 

The program was announced on 21 May 2016 as an election commitment by the Prime Minister, the Hon Malcolm Turnbull MP, and the then Minister for the Environment, the Hon Greg Hunt MP.

 

Individual grants for the program will be allocated through a merit-based assessment process with the primary eligibility criteria being:

*         the applicant is a community organisation in a selected region; and

*         the applicant's proposal is under a relevant benchmark (such as cost per kilowatt hour).

 

The program will be implemented through two rounds: an election commitment round (Round 1) and a subsequent competitive round (Round 2).

 

Round 1 of the program will fund more than 200 projects that were announced during May and June 2016.  These announced projects will go through a non-competitive targeted funding round.  To be successful in this round, proponents must submit an application form which demonstrates that a project meets the program's criteria before receiving a grant. 

 

Round 2 of the program will meet the Government's commitment to provide funding on a regional basis up to a specified cap.  Round 2 will be a competitive grants round, where applications that come forward and satisfy eligibility requirements will receive funding up to the limit of available funds per region. 

 

Funding decisions for the measure will be made in accordance with the above selection processes, and in accordance with applicable legislative requirements under the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Grants Rules and GuidelinesIn accordance with the Commonwealth Grants Rules and Guidelines, the Minister will release Round 1 program guidelines to eligible program participants, while guidelines for Round 2 will be posted on the Department of the Environment and Energy's website at http://www.environment.gov.au/climate-change/renewable-energy/solar-communities.  The guidelines contain eligibility and assessment criteria for the program.

 

The Department will make recommendations to the Minister for the Environment and Energy on the merits of each proposal.  The Minister will make the final determination on funding.

 

Under the Commonwealth Grants Rules and Guidelines, details of all grants provided will be published on the Department's website at https://www.environment.gov.au/about-us/accountability-reporting/grants-listing.

 


 

The program is not considered suitable for independent merits review because it will be delivered through targeted funding to community groups and involves the allocation of finite resources (individual grants of up to $15,000).  Since the program has limited funds, only a proportion of applications may be met.  The re-making of a decision under merits review would necessarily affect allocations available to other parties.  An application for merits review also may result in delays in finalising funding agreements, which would affect the timely provision of grants to recipients.  The guaranteed right of review under section 75(v) of the Constitution, and review under section 39B of the Judiciary Act 1903, would still be available.  People affected by spending decisions would also have recourse to the Commonwealth Ombudsman where appropriate. 

 

Funding of $5 million over three years from 2016-17 will come from Program 2.1: Reducing Australia's Greenhouse Gas Emissions, which is part of Outcome 2.  Details are set out in the 2016-17 Mid-Year Economic and Fiscal Outlook in the measure 'Support Your Local Parks and Environment' at page 156 and in the Portfolio Additional Estimates Statements 2016-17, Environment and Energy Portfolio at page 33. 

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the external affairs power (section 51(xxix)) of the Constitution.

 

New table item 196 establishes legislative authority for the Government to fund the Food Rescue Charity Program.

 

Under this program, funding will be provided to four food rescue charities to install solar photovoltaic, battery and energy efficient refrigeration systems.

 

The food rescue charities will need to demonstrate that the grants help reduce emissions through one or more of:

*         increased renewable energy output;

*         reduced energy use (such as through replacement of inefficient equipment); and/or

*         increased diversion of food waste from landfill.

 

The $1.2 million Food Rescue Charity Program is a 2016 federal election commitment that was announced on 30 June 2016 by the then Minister for the Environment, the Hon Greg Hunt MP.

 

Four charities will be eligible to apply for grants of up to $300,000 through a non-competitive targeted funding round.  The four charities are: Foodbank, OzHarvest, Secondbite and Fareshare.

 

In accordance with the Commonwealth Grants Rules and Guidelines, program guidelines containing eligibility and assessment criteria for the program will be made available to eligible program participants.

 

The Department will make recommendations to the Minister for the Environment and Energy on the merits of each proposal.  The Minister will make the final determination on funding.

 


 

Under the Commonwealth Grants Rules and Guidelines, details of all grants provided will be published on the Department's website at https://www.environment.gov.au/about-us/accountability-reporting/grants-listingProponents must demonstrate that a project meets the program's criteria before receiving a grant.

 

The program will not be subject to a merits review mechanism as it will be delivered through a non-competitive targeted funding process to four charities with a limit on the amount of funding for the program as a whole and a cap of $300,000 for each grant allocation.  

 

Funding of $1.2 million over two years from 2016-17 will come from Program 2.1: Reducing Australia's Greenhouse Gas Emissions, which is part of Outcome 2.  Details are set out in the 2016-17 Mid-Year Economic and Fiscal Outlook under the measure 'Support Your Local Parks and Environment' at page 156 and in the Portfolio Additional Estimates Statements 2016-17, Environment and Energy Portfolio at page 33. 

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the external affairs power (section 51(xxix)) of the Constitution.

 

 

 

 

 

 

 


Statement of Compatibility with Human Rights

 

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

 

Financial Framework (Supplementary Powers) Amendment (Environment and Energy No. 1) Regulations 2017

 

These Regulations are 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 Legislative Instrument

 

Section 32B of the Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the FF(SP) Regulations) and to make, vary and administer arrangements and grants for the purposes of programs specified in the Regulations.  Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programs.  The FF(SP) Act applies to Ministers and the accountable authorities of non-corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013

 

Schedule 1 to the Regulations amends Schedule 1AB to the FF(SP) Regulations to establish legislative authority for government spending on three programs that were announced during the 2016 federal election, namely:

*         the Improving Your Local Parks and Environment Program to support communities revitalise, maintain, manage and improve local parks, including nature reserves, rivers, coastal areas and community facilities;

*         the Solar Communities Program to provide grants to community organisations for the installation of roof top solar photovoltaic, solar hot water heating and solar-connected battery systems; and

*         the Food Rescue Charity Program to provide funding to four food rescue charities for the installation of solar photovoltaic, battery and energy efficient refrigeration systems.

 

The Minister for the Environment and Energy has portfolio responsibility for these programs which will be administered by the Department of the Environment and Energy.

 

Human rights implications

 

The Regulations do not engage any of the applicable rights or freedoms.

 

Conclusion

 

These Regulations are compatible with human rights as they do not raise any human rights issues.

 

Senator the Hon Mathias Cormann

Minister for Finance


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