Zed Seselja (ACT, Liberal Party, Minister for International Development and the Pacific) Share this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

OFFSHORE ELECTRICITY INFRASTRUCTURE BILL 2021

Today the Morrison Government is taking further steps to strengthen our economy, create jobs and opportunities for Australians, and ensure the delivery of affordable and reliable power.

I am pleased to introduce the Offshore Electricity Infrastructure Bill to the Senate. This Bill establishes a regulatory framework for a new Australian industry, building on this Government's strong record of supporting renewables projects and critical grid infrastructure.

Specifically, this Bill will facilitate and regulate the development of offshore electricity infrastructure in Commonwealth waters, including transmission infrastructure and generation. Australia is an attractive place to invest, with many opportunities to harness and a skilled and talented workforce to deliver important projects. Leading developers have expressed a keen interest in investing in offshore electricity infrastructure projects in Australia and this Bill provides a licensing framework and regulatory certainty for those investments to occur.

Enabling the development of an offshore electricity sector will deliver significant local benefits to all Australians.

Investment in transmission infrastructure will support a more secure and reliable electricity system.

Market competition from new electricity generation capacity will help put further downward pressure on wholesale electricity prices.

We can take advantage of evolving and emerging technologies to secure cost-effective electricity solutions for Australia.

Thousands of skilled regional jobs can be created, providing both direct benefits and indirect opportunities for regional businesses.

Already, there are a number of projects that stand to benefit from this legislation, representing as economic opportunity for Australia.

This Bill will help the implementation of Marinus Link, the proposed 1,500 megawatt (MW) transmission line between Tasmania and Victoria.

Marinus Link will provide the additional interconnection needed to export the electricity generated by the Battery of the Nation projects in Tasmania, to the mainland. In doing so, it will unlock new investment in generation projects, including pumped hydro energy storage. Marinus Link will help deliver a more reliable, affordable energy system, helping keep the lights on and prices low.

Passage of this Bill will also provide business certainty for other proposals that are under development, such as 'Star of the South' - a proposed offshore wind farm off the coast of Gippsland, Victoria, and 'Sun Cable' in our north.

Combined, these three proposals, Marinus Link, Star of the South and Sun Cable, are estimated to be worth over $10 billion and create over 10,000 direct and indirect job opportunities during construction. There are also ongoing employment opportunities for the staff that would be required to operate and maintain the infrastructure. Much of this job creation would occur in our regions.

While these are the most advanced projects, there are at least 10 other commercial-scale windfarms that have been proposed by developers for construction around Australia.

International experience shows that offshore electricity sectors co-exist with other offshore sectors and activities, such as fishing and shipping industries. This Bill protects these maritime stakeholders by requiring developers to take into account the impacts that potential projects may have on existing users of the offshore area. Importantly, under the Bill, areas will not be available for offshore electricity infrastructure projects if their impacts cannot be appropriately managed and enforcement action can be taken if licence holders interfere with existing users of a declared area.

Environmental approvals will be sought through established processes under the Environment Protection and Biodiversity Conservation Act 1999. This approach secures necessary protections while avoiding the imposition of any additional or duplicative regulatory obligations.

Securing the health and safety of workers and workplaces is paramount in this high risk offshore marine environment. The Bill will apply the national model Work Health and Safety Act 2011, with some necessary modifications to ensure that the framework operates appropriately in the ocean.

The Bill also requires developers to agree to provide financial security to cover the cost of decommissioning proposed infrastructure, prior to any construction or installation commencing. This financial security will be equal to the cost for government to decommission infrastructure in the licence area. This important feature ensures that tax payers do not foot the bill for removal of any retired assets in the future.

Supporting the development of large projects and a new offshore industry represents an exciting new opportunity for Australia. I urge my colleagues to support the passage of this Bill to enable the development of a new industry that will create jobs, strengthen our economy, and facilitate a more affordable and secure energy system.

OFFSHORE ELECTRICITY INFRASTRUCTURE (REGULATORY LEVIES) BILL 2021

I am pleased to introduce the Offshore Electricity Infrastructure (Regulatory Levies) Bill 2021 to the house. This Bill supports the Offshore Electricity Infrastructure Bill 2021 (or the Main Bill) which establishes a regulatory framework to enable offshore electricity infrastructure projects, including transmission and generation projects in Commonwealth waters.

The Main Bill supports investment in large scale offshore electricity infrastructure through a new licensing regime, administered and regulated by the Offshore Infrastructure Registrar and the Offshore Infrastructure Regulator.

The Regulatory Levies Bill ensures the Offshore Infrastructure Registrar and the Offshore Infrastructure Regulator are fully cost-recovered to undertake the functions required to facilitate the life-cycle of offshore electricity infrastructure projects.

The National Offshore Petroleum Titles Administrator (known as NOPTA) and the National Offshore Petroleum Safety and Environment Management Authority (known as NOPSEMA) will be appointed as registrar and regulator of the framework, respectively. These agencies have extensive experience in developing regulatory processes for the offshore environment and are best placed to support and regulate the offshore electricity infrastructure sector.

Under the Offshore Electricity Infrastructure framework, NOPTA's principal functions will be to administer the licensing scheme, including maintaining a register of licensees and managing the application process.

NOPSEMA will be responsible for regulatory duties relating to workplace health and safety, infrastructure integrity, environmental management and compliance.

Currently, NOPTA and NOPSEMA perform regulatory functions for the offshore petroleum and greenhouse gas storage industries, and are fully cost-recovered by way of fees and levies imposed on these industries. NOPTA and NOPSEMA's functions will expand under the new framework to regulate the offshore electricity infrastructure industry.

Levies collected from regulated entities will be placed in the Offshore Infrastructure Registrar Special Account established under the Main Bill, and will be apportioned between the agencies to recover costs incurred.

Supporting the development of large projects and a new offshore industry represents an exciting new opportunity for Australia.

I urge my colleagues to support the passage of these bills that will enable the development of a new industry that will create jobs, strengthen our economy, and facilitate a more affordable and secure energy system.

OFFSHORE ELECTRICITY INFRASTRUCTURE (CONSEQUENTIAL AMENDMENTS) BILL 2021

The Offshore Electricity Infrastructure (Consequential Amendments) Bill 2021 is part of a package of three bills, including the Offshore Electricity Infrastructure Bill 2021 and the Offshore Electricity Infrastructure (Regulatory Levies) Bill 2021, which were introduced into the House on 2 September 2021.

Together these bills establish a regulatory framework to enable offshore electricity infrastructure projects, including transmission and generation projects in the Commonwealth offshore area.

A new offshore industry can deliver significant benefits to all Australians by strengthening our economy, creating jobs and opportunities for Australians, and enhancing the delivery of affordable and reliable power.

Specifically, the Offshore Electricity Infrastructure (Consequential Amendments) Bill 2021 updates five Commonwealth Acts to clarify the operation of those Acts with the Offshore Electricity Infrastructure Bill.

The Consequential Amendments Bill amends the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (known as the OPGGS Act) to clarify how it is intended to work alongside the Offshore Electricity Infrastructure Bill. The OPGGS Act is amended to ensure regulated entities under the OPGGS Act do not unduly interfere with the activities of regulated entities under the Offshore Electricity Infrastructure Framework.

Amendments are also made to reflect NOPSEMA's dual role in regulating the OPGGS Act and the OEI framework, and to clarify that NOPTA may be appointed as the Registrar of the OEI framework.

This Bill also make minor amendments to other Acts to allow the Offshore Electricity Infrastructure Bill to operate as intended. This includes updating definitions for offshore electricity infrastructure and to provide for similar arrangements to the offshore electricity sector that are provided to offshore resources sector.

Together the offshore electricity infrastructure package will enable the development of a new industry that will create jobs, strengthen our economy, and facilitate a more affordable and secure energy system.

I commend this Bill.

Debate adjourned.