Commonwealth of Australia Explanatory Memoranda

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AUSTRALIAN CLIMATE CHANGE REGULATORY AUTHORITY BILL 2009 [NO. 2]

2008-2009





THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA











SENATE











Australian Climate Change Regulatory Authority Bill 2009














SUPPLEMENTARY EXPLANATORY MEMORANDUM





Amendments to be moved on behalf of the Government














(Circulated by the authority of the Minister for
Climate Change and Water, Senator the Honourable Penny Wong)






Table of contents


Glossary    1


General outline and financial impact    3


 Chapter 1   Membership qualifications for the Authority 5


Index 7





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The following abbreviations and acronyms are used throughout this
explanatory memorandum.

|Abbreviation        |Definition                   |
|ACCRA bill          |Australian Climate Change    |
|                    |Regulatory Authority Bill    |
|                    |2009                         |
|The Authority       |The Australian Climate Change|
|                    |Regulatory Authority         |
|The bill            |The Carbon Pollution         |
|                    |Reduction Scheme Bill 2009   |
|The consequential   |The Carbon Pollution         |
|amendments bill     |Reduction Scheme             |
|                    |(Consequential Amendments)   |
|                    |Bill 2009                    |
|The Scheme          |The Carbon Pollution         |
|                    |Reduction Scheme             |

General outline and financial impact




Amendment of the Australian Climate Change Regulatory Authority Bill 2009


         These amendments expand the appointment criteria for membership of
         the Australian Climate Change Regulatory Authority so that the
         Minister may appoint a person with substantial experience or
         knowledge and significant standing in public administration.





Financial impact


Nil.


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     1.



This Chapter refers to amendments that appear in Sheet AL233.


Outline of chapter


      1. These amendments expand the appointment criteria for membership of
         the Australian Climate Change Regulatory Authority (the Authority).




Context of amendments


      2. The Australian Climate Change Regulatory Authority Bill 2009 (ACCRA
         Bill) establishes the Authority, a body corporate comprising a
         Chair and between 2 and 4 other members.


      3. The primary functions of the Authority are to administer the
         Scheme, the Renewable Energy Target, and the National Greenhouse
         and Energy Reporting System.


      4. The Authority has the following functions [Part 2, Division 1,
         clause 11]:


Such functions as are conferred on the Authority by a climate change law;


Such functions as are conferred on the Authority by any other law of the
Commonwealth; and


To do anything incidental to or conducive to the performance of any of the
above functions.


      5. The Minister is responsible for appointing members of the Authority
         [Part 2, Division 2, subclause 18(1)].


      6. Before appointing a member, the Minister must be satisfied that the
         member has substantial experience or knowledge and significant
         standing in at least one of the following fields:


Economics


Industry


Energy production and supply


Energy measurement and reporting


Greenhouse gas emissions measurement and reporting


Greenhouse gas abatement measures


Financial markets


Trading of environmental instruments [Part 2, Division 2, subclause 18(2)].


      7. The Minister may only terminate the appointment of a member of the
         Authority on narrow grounds, including for misbehaviour, physical
         or mental incapacity or repeated absence from meetings of the
         Authority.


Summary of new law


      8. The amendments allow the Minister to appoint a member with
         substantial experience or knowledge and with significant standing
         in public administration.


Detailed explanation of new law


      9. Amendment (3) adds a further criterion, 'public administration', to
         the list of attributes required for appointment to the Authority
         [Part 2, Division 2, subclause 18(2)].


     10. Public administration skills and experience are highly relevant to
         the functions of Authority members.


For example, in order to ensure proper use and management of public money,
public property and other Commonwealth resources, the Authority will be
subject to the Financial Management and Accountability Act 1997.   The
Chair of the Authority will perform functions and exercise powers relating
to public administration as the Chief Executive under this legislation.


The Chair of the Authority is the head of a Statutory Agency under the
Public Service Act 1999 and can employ Australian Public Sector employees
on behalf of the Commonwealth.  The Chair will be expected to direct these
staff in their duties.


     11. Amendment (2) amends punctuation as a consequence of amendment (3)
         [Part 2, Division 2, subclause 18(2)].


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Part 2:  National scheme cap and national Scheme gateway

|Bill reference                              |Paragraph     |
|                                            |number        |
|Division 1, clause 11                       |1.4           |
|Division 2, subclause 18(1)                 |1.5           |
|Division 2, subclause 18(2)                 |1.6, 1.9, 1.11|


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