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Energy and Resources Legislation
Amendment Bill 2009
Introduction Print
EXPLANATORY MEMORANDUM
General
The Bill contains a range of amendments to various Acts, including the
Electricity Industry Act 2000, Electricity Safety Act 1998, Electricity
Safety Amendment Act 2007, Gas Industry Act 2001, Gas Safety Act
1997, Mineral Resources (Sustainable Development) Act 1990, Resources
Industry Legislation Amendment Act 2009, the Petroleum Act 1998 and
the Aboriginal Heritage Act 2006.
Clause Notes
PART 1--PRELIMINARY
Clause 1 sets out the main purposes of the Bill.
Clause 2 sets out the commencement provisions for the Bill. The Bill will
commence on a day or days specified by proclamation, or if a
provision of the Bill has not commenced by 1 September 2010,
it commences on that day.
PART 2--AMENDMENT OF ELECTRICITY INDUSTRY
ACT 2000
Clause 3 amends section 35C(1)(b) of the Electricity Industry Act 2000
to enable a licensee under that Act to provide the requisite
notification before issuing the first electricity bill after a standing
offer comes into effect. The requisite notification is to advise a
domestic or small business customer about which standing offer
applies in respect of the sale of electricity to that customer.
561340 1 BILL LA INTRODUCTION 12/8/2009
PART 3--AMENDMENT OF ELECTRICITY SAFETY
ACT 1998
Clause 4 amends section 3 of the Electricity Safety Act 1998 to insert a
definition for complex electrical installation, energy efficiency
electrical equipment and major electricity company. The clause
also amends existing definitions for electrical installation,
practicable and supply network and repeals the definitions for
network operator and upstream network.
A complex electrical installation is constituted by electrical
installations that have installed generation capacity of equal to or
greater than 1000kVA, or which have electrical lines, including
underground lines, that run over land not owned or leased by the
owner or operator of the electrical line.
The term network operator has been replaced by the term
complex electrical installation, for the purpose of the general
safety obligations under section 75, as well as the regulations.
Clause 5 provides for a substitution of the term used in section 38(e) of
the Electricity Safety Act 1998. The Electricity Safety
Amendment Act 2007 amends the Electricity Safety Act 1998
to provide for a definition of the term accepted ESMS; this
clause reflects the use of that new definition.
Clause 6 repeals section 67 of the Electricity Safety Act 1998.
The provisions in section 67 will be incorporated into section 68
by amendments contained in this Bill.
Clause 7 provides a substitute for section 68 and inserts a new section 68A
into the Electricity Safety Act 1998. Proposed new section 68
provides that a person must not supply or offer to supply
equipment prescribed for the purpose of Part 5, unless the
equipment has been registered and labelled in accordance with
the regulations. In addition, the proposed new section 68A
enables Energy Safe Victoria to exempt prescribed equipment
from compliance with section 68, and consequently exempts that
equipment from compliance with the registration and labelling
requirements in the regulations.
Clause 8 provides for amendments to section 69 of the Electricity Safety
Act 1998 to reflect the new definitions used for the purpose of
Part 5, namely replacing the term proclaimed electrical
equipment with the term energy efficiency electrical equipment.
The clause also makes a decision of Energy Safe Victoria relating
to exemption of equipment under section 68A, reviewable by the
Victorian Civil and Administrative Tribunal.
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Clause 9 provides for a new heading to Part 7 of the Electricity Safety
Act 1998, to reflect the amendments to the sections in that Part,
namely to recognise the term complex electrical installation.
Clause 10 substitutes a new section 75 of the Electricity Safety Act 1998 to
require compliance with the regulations and also the general
safety obligation. The owner or operator of a complex electrical
installation must take reasonable care to ensure that the owner or
operator complies with the applicable regulations and with the
general safety obligation contained in that section. Owners or
operators of a railway must take reasonable care to ensure that
they comply with the applicable regulations and the general
safety obligation, in respect of its supply network. A supply
network includes, but is not limited to, electric lines and
substations.
Clause 11 substitutes section 150(d) of the Electricity Safety Act 1998.
The Electricity Safety Amendment Act 2007 amends the
Electricity Safety Act 1998 to provide for a definition of the
term accepted ESMS; the new substituted paragraph reflects the
use of that new definition.
Clause 12 amends section 154 of the Electricity Safety Act 1998 to make
substitutions for the new term inserted into Part 5, namely the
term energy efficiency electrical equipment.
PART 4--AMENDMENT OF ELECTRICITY SAFETY
AMENDMENT ACT 2007
Clause 13 amends section 4 of the Electricity Safety Amendment Act
2007 to repeal redundant definitions and definitions otherwise
provided for through amendment of the Electricity Safety Act
1998, through this Bill. Specifically, the effect of the
amendments made by this clause is that only licensed
transmission and distribution companies will be included in the
definition of major electricity company.
Clause 14 amends section 5 of the Electricity Safety Amendment Act
2007 to remove a term that is made redundant by the
amendments in this Bill.
Clause 15 repeals section 6 of the Electricity Safety Amendment Act
2007. Section 6, which is redundant in light of the amendments
made by this Bill, provided for amendments to section 75 of the
Electricity Safety Act 1998 dealing with general safety
obligations and obligations under the Electricity Safety Network
Assets Regulations.
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Clause 16 amends section 7 of the Electricity Safety Amendment Act
2007 to replace references to network operator in proposed
provisions relating to voluntary electricity safety management
schemes with references to the owner of a complex electrical
installation. The effect of the amendments is that the owner of
a complex electrical installation is responsible for lodging a
voluntary electricity safety management scheme and for ensuring
compliance with the accepted voluntary electricity safety
management scheme.
PART 5--AMENDMENT OF GAS INDUSTRY ACT 2000
Clause 17 amends section 42C(1)(b) of the Gas Industry Act 2001 to
enable a licensee under that Act to provide the requisite
notification before issuing the first gas bill after a standing offer
comes into effect. The requisite notification is to advise a
domestic or small business customer about which standing offer
applies in respect of the sale of gas to that customer.
Clause 18 amends section 51A of the Gas Industry Act 2001 to provide for
a definition of MIRN, otherwise called a metering installation
registration number. This new definition replaces the original
definition, which became redundant when the functions and
powers of the Victoria-based VENCorp were transferred to the
new national energy market operator, AEMO, on 1 July 2009.
PART 6--AMENDMENT OF GAS SAFETY ACT 1997
Clause 19 inserts new section 68AA into the Gas Safety Act 1997 which
defines ESV approved label for the purposes of Division 5 of
Part 3 of that Act.
Clause 20 inserts new section 69B into the Gas Safety Act 1997 to enable
the operation of other amendments made by this Bill which
empower Energy Safe Victoria to gazette a label for the purposes
of compliance with section 70(1) and section 71 of the Gas
Safety Act 1997.
Clause 21 amends section 70(1) of the Gas Safety Act 1997 to make it an
offence for a person to install a Type A gas appliance, that has
not been accepted and labelled in accordance with that Division.
Clause 22 amends section 71 of the Gas Safety Act 1997 to make it an
offence for Type A gas appliances to be supplied or offered for
supply, sold or offered for sale, unless they have been accepted
and labelled in accordance with that section.
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PART 7--AMENDMENT OF MINERAL RESOURCES
(SUSTAINABLE DEVELOPMENT) ACT 1990
Clause 23 amends section 4(1) of the Mineral Resources (Sustainable
Development) Act 1990 to insert definitions of area work plan
schedule, declared mine and declared quarry.
Clause 24 inserts a new section 7C into the Mineral Resources
(Sustainable Development) Act 1990 to empower the Minister
for Energy and Resources to specify that a mine or quarry is a
declared mine or quarry, for the purposes of complying with the
additional obligations placed on declared mines or quarries.
The new section sets out the grounds on which the Minister may
make such a declaration, namely that the Minister must be
satisfied that there are geotechnical or hydrogeological factors
within the mine or quarry that present a significant risk to public
safety, the environment or infrastructure.
Clause 25 inserts a Division 9 into Part 2 of the Mineral Resources
(Sustainable Development) Act 1990, which contains
provisions relating to a Latrobe Valley mine stability levy.
Proposed new section 38AAA sets out two criteria which must
exist for a mine to be liable to pay the mine stability levy.
Firstly, the mine must be located within the Latrobe Valley
region, and secondly, the mine must be prescribed for the
purpose of paying the levy. The section defines the Latrobe
Valley region, which is the geographic parameter within which a
mine must be located to be liable to pay the mine stability levy.
The proposed new section also provides for definitions of
Latrobe Valley region coal mine and mine stability levy.
Proposed new section 38AAB establishes a mine stability levy
for the purpose of providing for measures to reduce geotechnical
and hydrogeological risks to the stability of Latrobe Valley
region coal mines.
Proposed new section 38AAC sets out who is liable to pay the
levy, namely the holder of a licence in respect of a Latrobe
Valley region coal mine.
Proposed new section 38AAD provides for the amount of the
mine stability levy to be set out in the regulations.
Proposed new section 38AAE provides that the times, period for
which the levy is payable and manner in which the holder of a
licence relating to a Latrobe Valley coal mine, must pay the mine
stability levy, may be set out in the regulations.
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Clause 26 amends section 40 of the Mineral Resources (Sustainable
Development) Act 1990 to insert new provisions that enable the
holder of a mining licence to lodge a work plan in respect of a
specific location or in respect of an area.
This clause also amends section 40 to require additional
information, as prescribed, to be included in a work plan, where
the operations to which that work plan relate are carried out in
respect of a declared mine. The additional information
requirements will be prescribed in the regulations, but relate to
the submission of a mine stability plan as part of the work plan.
Clause 27 inserts new sections into the Mineral Resources (Sustainable
Development) Act 1990. The new sections provide for the
following:
Proposed new section 41AB provides that the holder of a mining
licence relating to a declared mine must provide a report to the
Department Head; the report must contain the information
prescribed, and be submitted at the times and in the manner set
out in the regulations.
Proposed new section 41AC provides that the holder of a mining
licence must report to the Chief Inspector a reportable event.
A reportable event is defined in the proposed new section as an
event that is prescribed by the regulations for the purpose of that
section. The event must be reported as soon as practicable after
the event occurs.
Proposed new section 41AD provides that where the holder of
a mining or exploration licence has lodged an area work plan,
works cannot commence under that work plan, until a work
schedule has been submitted to the Department Head at least
21 days prior to the commencement of works. The work
schedule must contain the prescribed particulars and must be
accompanied by an approved cultural heritage management plan,
where required. In addition, where an approved cultural heritage
management plan is required, the work schedule must be
consistent with that approved plan.
Proposed new section 41AE provides that where a mine has been
declared under section 7C, the holder of the mining licence under
which the declared mine operates, must apply to vary their work
plan within 60 days after the declaration being made. The varied
work plan must be consistent with the prescribed mine stability
requirements and the process for making application for the
variation will follow the existing provisions set out in sections
41(2) to (9) of the Mineral Resources (Sustainable
Development) Act 1990.
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Clause 28 amends section 42A of the Mineral Resources (Sustainable
Development) Act 1990 to remove references to the Minister
and replace them with references to the Department Head.
In section 41 of the Mineral Resources (Sustainable
Development) Act 1990, the Department Head approves those
variations, not the Minister.
Clause 29 amends section 43 of the Mineral Resources (Sustainable
Development) Act 1990 to require an exploration licence holder
to submit a work schedule, where the work plan is an area work
plan.
Clause 30 inserts a new section 116A into the Mineral Resources
(Sustainable Development) Act 1990, to require the holders of
extractive industry work authorities to submit certain information
to the Minister in accordance with the regulations.
Clause 31 inserts a new section 120(3) into the Mineral Resources
(Sustainable Development) Act 1990, to enable the Department
Head to delegate his or her functions and powers as a referral
authority under the Planning and Environment Act 1987.
Clause 32 amends section 124 of the Mineral Resources (Sustainable
Development) Act 1990 to provide for additional heads of power
for the making of regulations. In particular, the heads of power
relate to the mine stability levy and licence and extractive
industry work authority holders, mine stability requirements.
PART 8--AMENDMENT OF RESOURCES INDUSTRY
LEGISLATION AMENDMENT ACT 2009
Clause 33 amends section 20 of the Resources Industry Legislation
Amendment Act 2009 to amend proposed section 77G(3)(a),
to be inserted into the Mineral Resources (Sustainable
Development) Act 1990, to provide that the holder of an
extractive industry work authority must also include the
prescribed quarry stability information in their work plans.
Clause 34 inserts the following proposed new sections of the Mineral
Resources (Sustainable Development) Act 1990 into section 20
of the Resources Industry Legislation Amendment Act 2009:
Proposed new section 77KA requires the holder of an extractive
industry work authority to report to the Chief Inspector a
reportable event, as soon as practicable after that event occurs.
A reportable event is defined in the proposed new section as an
event that is prescribed by the regulations for the purpose of that
section.
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Proposed new section 77KB requires the holder of an extractive
industry work authority, relating to a declared quarry, to apply
for approval to vary their work plan within 60 days after the
declaration of their quarry. The varied work plan must be
consistent with the prescribed quarry stability requirements and
the process for making application for the variation will follow
the existing provisions set out in sections 77H(2) to (8) of the
Mineral Resources (Sustainable Development) Act 1990.
PART 9--AMENDMENT OF PETROLEUM ACT 1998
Clause 35 amends section 4 of the Petroleum Act 1998. It inserts the
definitions of current authority holder, primary authorisation,
drilling authorisation area, P(SL)A lease, P(SL)A licence,
P(SL)A permit and amends the definition of authority.
The definition of primary authorisation is constituted by a
permit, lease or licence granted under either the Petroleum Act
1998 or the Petroleum (Submerged Lands) Act 1982.
Clause 36 amends section 82 of the Petroleum Act 1998 to amend the
definition of gathering line so that it applies to a drilling
authorisation area. A gathering line is a pipeline that is situated
wholly within the production licence area or drilling
authorisation area and is used to convey petroleum from one
point to another within the authorisation area.
Clause 37 inserts a new Part 6A into the Petroleum Act 1998 to make
provision for special drilling authorisations. In particular, the
new Part provides for the following--
Proposed new section 95A sets out the activities which are
authorised by a special drilling authorisation. It provides that
where a primary authorisation is a permit or lease under either the
Petroleum Act 1998 or Petroleum (Submerged Lands) Act
1982, the related special drilling authorisation only confers rights
to conduct exploration and associated exploration activities.
Where a primary authorisation is a production licence under
either the Petroleum Act 1998 or Petroleum (Submerged
Lands) Act 1982, the related special drilling authorisation
enables production and associated production activities, including
exploration.
The proposed section specifically provides that a special drilling
authorisation does not give its holder any rights to resources that
are within the drilling authorisation area. The special drilling
authorisation is only used in respect of rights to resources within
the area granted under the primary authorisation.
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Proposed new section 95B provides for the process which the
holder of a primary authorisation must follow to apply to the
Minister for the grant of a special drilling authorisation.
Proposed new section 95C sets out the criteria the Minister must
consider in deciding whether or not to grant a special drilling
authorisation.
Proposed new section 95D sets out the criteria the Minister must
consider where a special drilling authorisation is applied for in
respect to an area that is subject to an existing permit, lease or
licence. The Minister must not grant a special drilling
authorisation unless the existing permit, lease or licence holder
has consented in writing to the grant of the special drilling
authorisation.
Proposed new section 95E provides for the procedure to be
followed if the consent required under proposed section 95D has
not been obtained. Following the procedure set out in this
section, the Minister may still grant a special drilling
authorisation without the existing permit, lease or licence holder's
consent.
Proposed new section 95F enables the Minister to vary the size of
the area for which a special drilling authorisation is granted, in
relation to the area for which the authorisation was sought.
Proposed new section 95G enables the Minister to grant a special
drilling authorisation in respect of an area that is already subject
to a special drilling authorisation. The section sets out the
procedure to be followed by the Minister prior to making such a
grant.
Proposed new section 95H provides for the term of a special
drilling authorisation. A special drilling authorisation's term is
directly linked to the term of the primary authorisation to which it
relates. If the primary authorisation is cancelled, surrendered or
suspended, or expires, the related special drilling authorisation is
also cancelled, surrendered or suspended or expires on the same
day as the primary authorisation.
Proposed new section 95I provides that the holder of a permit,
lease or licence in respect of the same area for which a special
drilling authorisation is granted, is not liable for the actions of
the holder of the special drilling authorisation. This provision
applies irrespective of whether the permit, lease or licence holder
consented to the grant of the special drilling authorisation.
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Proposed new section 95J requires the holder of a special drilling
authorisation to provide factual information obtained as a result
of operations under that authorisation to the Minister within the
defined period.
Proposed new section 95K requires the holder of a special
drilling authorisation to provide factual information obtained as a
result of operations under its special drilling authorisation, to the
holder of a permit, lease or licence in respect of the same area for
which the special drilling authorisation was granted. The section
does not interfere with any agreement between the holder of the
special drilling authorisation and the permit, lease or licence
holder.
Clause 38 amends section 107(1) of the Petroleum Act 1998 to specifically
exclude that section from applying to special drilling
authorisations. Section 107(1) provides that the holder of an
authority or any other person may apply for the transfer of their
authority.
Clause 39 inserts new section 107A into the Petroleum Act 1998 which
provides for the transfer of a special drilling authorisation.
The new section provides that a special drilling authorisation is
deemed to be transferred when a primary authorisation is
transferred. The transfer of the special drilling authorisation
takes place at the same time as the transfer of the primary
authorisation and it is also deemed to be transferred to the same
person to which the primary authorisation is transferred.
Clause 40 inserts new section 110(6) into the Petroleum Act 1998 which
provides that where application is made for part of a permit or
lease area to be transferred, the holder of the special drilling
authorisation must specify whether or not it is transferring the
special drilling authorisation to the person to whom part of the
permit or lease is to be transferred.
Clause 41 inserts new sections 113A and 113B into the Petroleum Act
1998.
Proposed new section 113A provides that where a primary
authorisation is suspended or cancelled, the special drilling
authorisation relating to that primary authorisation is taken to
be suspended or cancelled on the same day.
Proposed new section 113B provides that where a primary
authorisation expires, the special drilling authorisation is taken
to expire on the same day.
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In addition, where a primary authorisation under the Petroleum
(Submerged Lands) Act 1982 is terminated, the special drilling
authorisation to which that primary authorisation relates, is also
taken to be terminated on that same day.
PART 10--CONSEQUENTIAL AMENDMENTS AND REPEAL
OF AMENDING ACT
Clause 42 consequentially amends section 50 of the Aboriginal Heritage
Act 2006 to amend the definition of statutory authorisation to
exclude an area work plan lodged under the Mineral Resources
(Sustainable Development) Act 1990. The result is that a
cultural heritage management plan is not required to be approved
at the point for which an area work plan is lodged. Rather, when
read with the amendments in clause 26 and clause 27, a cultural
heritage management plan would, if required in respect of works
under a particular area work plan, need to be approved and
submitted with a work schedule, pursuant to proposed
section 41AD of the Mineral Resources (Sustainable
Development) Act 1990.
Clause 43 inserts new section 164 into the Electricity Safety Act 1998
which is a savings provision. The section provides that where
equipment was proclaimed for the purposes of Part 5 of the
Electricity Safety Act 1998 relating to energy efficiency, that
equipment is taken to be energy efficiency electrical equipment,
upon commencement of clause 7 of this Bill.
Clause 44 provides for repeal of this Act on 1 September 2011. The repeal
of this Act does not affect the ongoing operation of the
amendments made by it. (See section 15(1) of the
Interpretation of Legislation Act 1984).
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