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2008-2009
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE (SAFETY LEVIES) AMENDMENT
BILL 2009
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Resources and Energy,
the Honourable Martin Ferguson AM, MP)
OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE (SAFETY LEVIES) AMENDMENT
BILL 2009
GENERAL OUTLINE
The purpose of this Bill is to remove references to the Pipeline Safety
Management Plan Levy in the Offshore Petroleum and Greenhouse Gas Storage
(Safety Levies) Act 2003.
Amendments to the Offshore Petroleum (Safety Levies) Regulations 2004 will
in future raise a levy for pipelines as a safety case levy.
This is in effect is a name change for the levy as there will not be any
other changes to levy arrangements for pipelines at this time. The amount
of the levy, who pays it and when it is paid will remain the same.
These changes will facilitate pipelines being covered under safety
regulations rather than under separate pipeline regulations as they are
currently.
FINANCIAL IMPACT STATEMENT
The Bill will not have any financial impact on the Australian Government
Budget. There are no additional costs to industry and no change to who pays
the levy.
NOTES ON INDIVIDUAL CLAUSES
Clause 1 - Short title
Clause 1 is a formal provision specifying the short title of the Bill.
Clause 2 - Commencement
Sections 1 to 3 in the Bill will commence the day the Act receives Royal
Assent.
Schedule 1, Parts 1 and 2 will commence on 1 January 2010. Schedule 1,
Part 3 will commence the day after the Act receives Royal Assent.
As safety levies are calculated annually at the start of each calendar year
it is desirable for Schedule 1, Parts 1 and 2 to come into force at the
start of the new calendar year following the passage of the bill to avoid
additional administrative burdens on industry. Otherwise levy payments
would have to be adjusted on a pro-rata basis.
No provisions in this Bill will apply retrospectively.
Clause 3 - Schedules
This clause gives effect to the provisions in the Schedules to this Act.
Schedule 1 - Amendments
Items 1-3 - Subsections 7(3) and 7(8)
These items allow the continuance of arrangements for payment of levies for
pipelines in Commonwealth waters by the pipeline licensee under a safety
case levy. The pipeline safety management plan levy is to be removed (see
Items 8-11).
Items 4-6 - Subsections 8(3) and 8(8)
These items allow the continuance of arrangements for payment of levies for
pipelines in designated coastal waters by the pipeline licensee under a
safety case levy.
Item 7 - Sections 7 and 8
This item sets out that the amendments in Items 1-6 apply to a safety case
to the extent that is in force at or after the commencement of this item.
Items 8-11 - Title, Section 3, Part 4, Section 11
These items remove the pipeline safety management plan levy and references
to it from the Act.
Item 12 - Title, Section 3, Part 4, Section 11
This item sets out that the amendments in Items 8-11 apply to a pipeline
safety management plan to the extent that is in force at or after the
commencement of this item.
Item 13 - Transitional
This item clarifies that in the Offshore Petroleum and Greenhouse Gas
Storage (Safety Levies) Act 2003 for the period from 1 July 2008 when the
Offshore Petroleum Act 2006 was proclaimed until 21 November 2008 when the
Offshore Petroleum and Amendment (Greenhouse Gas Storage) Act 2008 received
Royal Assent, any references to the Offshore Petroleum and Greenhouse Gas
Storage Act 2006 are taken to be references to the Offshore Petroleum Act
2006.