Regulation Impact Statement – Department of Industry, Science, Energy and Resources
On 2 September 2021, the Australian Government introduced the Offshore Electricity Infrastructure Bill 2021 into Parliament.
Australia’s current regulatory environment does not provide a defined approvals pathway or protections for proponents looking to establish offshore electricity infrastructure facilities in Commonwealth waters, leading to a number of risks.
The RIS examines options to increase clarity in the regulatory environment to support an efficient and effective offshore electricity undertaking, throughout construction, operation and decommissioning.
The existing regulatory environment does not cover the extent of protections needed to support development of offshore infrastructure, which would need to be addressed on a case by case basis. Analysis indicates alternative approaches create a patchwork of inconsistent, ad hoc measures with potential safety and protection issues.
A RIS, considering two options, was prepared to support the Australian Government in approaching this problem. The options considered were:
- Maintain the status quo – This approach would see the existing arrangements continue where government considers and facilitates projects on an ad-hoc and case by case basis. The RIS concludes that, if taken, this option would not support the construction, operation and decommissioning or ongoing management of projects, nor would it facilitate the long-term allocation of licences for prospective development.
- Develop a legislative regulatory framework – This approach would see a new legislative framework created to draw together existing arrangements while addressing gaps and reducing risk to industry and government. The RIS concludes that this option is the preferred option as it would address issues outlined above, noting the wide range of implementation options available.
Department of Industry, Science, Energy and Resources prepared and certified a Regulation Impact Statement (RIS), which the Office of Best Practice Regulation (OBPR) assessed as good practice.