Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

The object of this Bill is to establish the Climate Change Fund under the Energy and
Utilities Administration Act 1987 (the Principal Act) for the purposes of providing
funding in relation to water and energy savings measures across the State (including
reducing the impacts of climate change). The new Fund is a consolidation of the
Energy Savings Fund and the Water Savings Fund currently established under the
Principal Act and may be applied for purposes similar to those for which the existing
funds may be applied.

Outline of provisions

Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on 1 July 2007.

Clause 3 is a formal provision that gives effect to the amendments to the Energy and
Utilities Administration Act 1987 set out in Schedule 1.

Clause 4 is a formal provision that gives effect to the consequential amendments to
the Electricity Supply Act 1995 set out in Schedule 2.

Clause 5 provides for the repeal of the proposed Act after all the amendments made
by the proposed Act have commenced. Once the amendments have commenced the
proposed Act will be spent and section 30 of the Interpretation Act 1987 provides
that the repeal of an amending Act does not affect the amendments made by that Act.

Schedule 1 Amendment of Energy and Utilities
Administration Act 1987
Schedule 1 [3] substitutes Divisions 2 and 3 of Part 6A of the Principal Act. The new
Division 2 (proposed sections 34E–34I) establishes the Climate Change Fund (which
is a continuation of the existing Water and Energy Savings Funds that are established
separately under existing Divisions 2 and 3) and sets out the purposes of the new
Fund and what money is to be paid into and out of the Fund. The purposes of the new
Fund are similar to the existing funds (eg to provide funding to encourage water and
energy savings) but will also include providing funding to reduce the impacts of
climate change. Similar to the existing funds, the proposed Division provides that
money may be paid out of the Fund with the approval of the Minister to fund all or
any part of the cost of any water or energy savings measure that the Minister is
satisfied promotes a purpose of the Fund. In the case of water saving measures, the
application of the Fund will no longer be limited to a water savings area as currently
defined in the Principal Act (ie the area of operations of Sydney Water and the local
governments areas of Gosford and Wyong) but will be available to fund water
savings measures in any area of the State.

The new Division 3 (proposed sections 34J–34M) of Part 6A replicates the existing
provisions of Divisions 2 and 3 that enable the Minister, by order published in the
Gazette (referred to in the new Division as a contributions order), to require State
water agencies (such as Sydney Water) and distribution network service providers
(within the meaning of the Electricity Supply Act 1995) to make annual contributions
to the existing funds.

Schedule 1 [1] and [2] make consequential amendments on the establishment of the
Climate Change Fund and the replacement of the existing Water and Energy Savings
Funds.

Schedule 1 [4] enables regulations of a savings or transitional nature to be made as
a consequence of the proposed Act. Schedule 1 [5] provides that the Climate Change
Fund is a continuation of the existing Water and Energy Savings Funds and continues
the operation of any contributions order made under existing Division 2 or 3 of Part
6A of the Principal Act.

Schedule 2 Consequential amendment of Electricity
Supply Act 1995
Schedule 2 contains amendments to the Electricity Supply Act 1995 that are
consequential on the establishment of the Climate Change Fund (and the replacement
of the Energy Savings Fund) and the renumbering of the provision that enables the
Minister to require distribution network service providers to make annual
contributions.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

---

[Index] [Search] [Download] [Bill] [Help]