ENERGY AND RESOURCES LEGISLATION AMENDMENT BILL 2009

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ENERGY AND RESOURCES LEGISLATION AMENDMENT BILL 2009

PARLIAMENT OF VICTORIA Energy and Resources Legislation Amendment Bill 2009 TABLE OF PROVISIONS Clause Page PART 1--PRELIMINARY 1 1 Purpose 1 2 Commencement 3 PART 2--AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000 4 3 Internet publication and bill notification of licensee standing offers 4 PART 3--AMENDMENT OF ELECTRICITY SAFETY ACT 1998 5 4 Definitions 5 5 Electrical workers 6 6 Section 67 repealed--proclaimed electrical equipment 6 7 New section 68 substituted and new section 68A inserted 6 68 Prescribed electrical equipment not to be supplied unless registered and labelled 6 68A Exemptions from energy efficiency 7 8 Application to review 8 9 New Heading to Part 7 inserted 8 10 New section 75 substituted 9 75 General duties of owners or operators of complex electrical installations and railways 9 11 Regulations--safety management schemes 9 12 Regulations--equipment efficiency 10 PART 4--AMENDMENT OF ELECTRICITY SAFETY AMENDMENT ACT 2007 11 13 Definitions 11 14 Section 5 amended 11 15 Section 6 repealed 11 16 Voluntary electricity safety management schemes for owner of complex electrical installations 11 561340B.I-12/8/2009 i BILL LA INTRODUCTION 12/8/2009

Clause Page PART 5--AMENDMENT OF GAS INDUSTRY ACT 2001 14 17 Internet publication and bill notification of licensee standing offers 14 18 Definitions 14 PART 6--AMENDMENT OF GAS SAFETY ACT 1997 15 19 New section 68AA inserted 15 68AA Definition 15 20 New section 69B inserted 15 69B Approval of label for Type A appliances 15 21 Offence to install certain Type A appliances 15 22 Offence to supply or sell unaccepted appliances 16 PART 7--AMENDMENT OF MINERAL RESOURCES (SUSTAINABLE DEVELOPMENT) ACT 1990 17 23 Definitions 17 24 New section 7C inserted 17 7C Ministerial Order declaring specified mines and quarries 17 25 New Division 9 inserted into Part 2 18 Division 9--Mine stability levy for Latrobe Valley 18 38AAA Definitions 18 38AAB Mine stability levy imposed 18 38AAC Who is liable for mine stability levy? 18 38AAD Amount of the mine stability levy 19 38AAE When and how is the mine stability levy to be paid? 19 26 Work plans 19 27 New sections 41AB to 41AE inserted 20 41AB Reporting requirements for declared mines 20 41AC Chief Inspector to be notified of reportable events in relation to mines 20 41AD Licensee to submit area plan work schedule 20 41AE Variation application must be made if mine is declared 21 28 Planning permits not required for some work variations 21 29 Commencement of work under exploration licence 22 30 New section 116A inserted 22 116A Holder of extractive industry work authority or consent to supply information 22 31 Delegation 23 32 Regulations 23 561340B.I-12/8/2009 ii BILL LA INTRODUCTION 12/8/2009

Clause Page PART 8--AMENDMENT OF RESOURCES INDUSTRY LEGISLATION AMENDMENT ACT 2009 24 33 Work plans 24 34 New proposed sections 77KA and 77KB inserted 24 77KA Chief Inspector to be notified of reportable events in relation to quarries 24 77KB Variation application must be made if quarry is declared 25 PART 9--AMENDMENT OF PETROLEUM ACT 1998 26 35 Definitions 26 36 Meaning of gathering line 27 37 New Part 6A inserted 27 PART 6A--SPECIAL DRILLING AUTHORISATIONS 27 95A Special drilling authorisation 27 95B Application for special drilling authorisation 28 95C General criteria the Minister must consider 29 95D Criteria that apply to permit, lease and licence areas 29 95E Exception to section 95D 29 95F Minister may vary area to which authorisation applies 30 95G Authorisation does not give exclusive rights 30 95H Term of authorisation 31 95I Existing permit, lease or licence holder not liable for actions of authorisation holder 32 95J Authorisation holder must give data to the Minister 32 95K Authorisation holder must give data to permit, lease or licence holder 32 38 Transfers 33 39 New section 107A inserted 33 107A Transfers in relation to special drilling authorisations 33 40 Partial transfer of permits and licences 34 41 New sections 113A and 113B inserted 34 113A Special drilling authorisation suspended or cancelled if primary authorisation suspended or cancelled 34 113B Special drilling authorisation expires or is terminated if primary authorisation expires or is terminated 35 PART 10--CONSEQUENTIAL AMENDMENTS AND REPEAL OF AMENDING ACT 36 Division 1--Consequential amendments 36 42 Aboriginal Heritage Act 2006 36 43 Savings provision for Electricity Safety Act 1998 36 165 Savings provision--proclaimed electrical equipment 36 561340B.I-12/8/2009 iii BILL LA INTRODUCTION 12/8/2009

Clause Page Division 2--Repeal of amending Act 37 44 Repeal of amending Act 37 ENDNOTES 38 561340B.I-12/8/2009 iv BILL LA INTRODUCTION 12/8/2009

PARLIAMENT OF VICTORIA Introduced in the Assembly Energy and Resources Legislation Amendment Bill 2009 A Bill for an Act to amend the Electricity Industry Act 2000, the Electricity Safety Act 1998, the Electricity Safety Amendment Act 2007, the Gas Industry Act 2001, the Gas Safety Act 1997, the Mineral Resources (Sustainable Development) Act 1990, the Resources Industry Legislation Amendment Act 2009, the Petroleum Act 1998, the Aboriginal Heritage Act 2006 and for other purposes. The Parliament of Victoria enacts: PART 1--PRELIMINARY 1 Purpose The main purpose of this Act is to amend-- (a) the Electricity Industry Act 2000 to make 5 further provision for notifications of standing 561340B.I-12/8/2009 1 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 1--Preliminary s. 1 offers to domestic or small business customers; and (b) the Electricity Safety Act 1998-- (i) to provide for equipment to be 5 prescribed under Part 5 rather than be proclaimed; and (ii) to empower Energy Safe Victoria to exempt a person from compliance with the equipment efficiency regulations; 10 and (c) the Electricity Safety Act 1998 and Electricity Safety Amendment Act 2007 to make further provision in relation to electricity safety management schemes; and 15 (d) the Gas Industry Act 2001 to make further provision for notifications of standing offers to domestic or small business customers; and (e) the Gas Safety Act 1997 to provide for a system of labelling Type A appliances that 20 are accepted under Division 5 of Part 3 of that Act; and (f) the Mineral Resources (Sustainable Development) Act 1990 and the Resources Industry Legislation Amendment Act 25 2009-- (i) to provide for certain work plans to be approved as area work plans; and (ii) to impose a levy in relation to certain mines; and 30 (iii) to provide for risk management requirements for declared mines and declared quarries; and 561340B.I-12/8/2009 2 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 1--Preliminary s. 2 (iv) to provide for reporting and notification requirements for mines and quarries; and (g) the Petroleum Act 1998 to provide for the 5 granting of special drilling authorisations to holders of exploration permits, retention leases or production licences and leases, licences and permits under that Act and the Petroleum (Submerged Lands) Act 1982. 10 2 Commencement (1) Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed. (2) If a provision of this Act does not come into operation before 1 September 2010, it comes into 15 operation on that day. __________________ 561340B.I-12/8/2009 3 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 2--Amendment of Electricity Industry Act 2000 s. 3 PART 2--AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000 3 Internet publication and bill notification of licensee standing offers 5 See: In section 35C(1)(b) of the Electricity Industry Act No. 68/2000. Act 2000, after "that customer" insert "at any Reprint No. 5 time before or". as at 1 July 2009. LawToday: www. legislation. vic.gov.au __________________ 561340B.I-12/8/2009 4 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 3--Amendment of Electricity Safety Act 1998 s. 4 PART 3--AMENDMENT OF ELECTRICITY SAFETY ACT 1998 4 Definitions In section 3 of the Electricity Safety Act 1998-- See: Act No. 25/1998. 5 (a) insert the following definitions-- Reprint No. 5 as at "complex electrical installation means an 21 August electrical installation that-- 2008 and (a) has an installed generation amending Act Nos capacity of equal to or greater than 61/2007, 10 1000 kVA; or 25/2008 and 59/2008. LawToday: (b) is an electric line that is on land www. that is not owned or leased by the legislation. vic.gov.au owner or operator of the electric line; 15 energy efficiency electrical equipment means electrical equipment that is prescribed as energy efficiency electrical equipment for the purposes of Part 5; 20 major electricity company means-- (a) a distribution company; or (b) a transmission company-- but does not include a distribution company or a transmission company, or 25 a class of distribution company or transmission company, declared under section 3A not to be a major electricity company;"; (b) in the definition of electrical installation, 30 after "any land" insert "but does not include a supply network that is owned or operated by a major electricity company"; 561340B.I-12/8/2009 5 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 3--Amendment of Electricity Safety Act 1998 s. 5 (c) in the definition of practicable, for "sections 111 and 119" substitute "Part 10"; (d) in the definition of supply network omit "generators," and "generation,"; 5 (e) the definition of network operator is repealed; (f) the definition of upstream network is repealed. 5 Electrical workers 10 In section 38(e) of the Electricity Safety Act 1998, for "electricity safety management scheme" substitute "ESMS". 6 Section 67 repealed--proclaimed electrical equipment 15 Section 67 of the Electricity Safety Act 1998 is repealed. 7 New section 68 substituted and new section 68A inserted For section 68 of the Electricity Safety Act 1998 20 substitute-- "68 Prescribed electrical equipment not to be supplied unless registered and labelled (1) A person must not supply energy efficiency electrical equipment that is not registered 25 and labelled in accordance with the regulations relating to energy efficiency unless an exemption under section 68A applies to that equipment. Penalty: 50 penalty units. 30 (2) A person must not offer to supply energy efficiency electrical equipment that is not registered and labelled in accordance with the regulations relating to energy efficiency 561340B.I-12/8/2009 6 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 3--Amendment of Electricity Safety Act 1998 s. 7 unless an exemption under section 68A applies to that equipment. Penalty: 50 penalty units. 68A Exemptions from energy efficiency 5 (1) Energy Safe Victoria, on the application of a supplier of energy efficiency electrical equipment, or on its own initiative, may exempt that equipment for the purposes of section 68. 10 (2) An exemption must be published in the Government Gazette. (3) An exemption may be subject to any conditions specified by Energy Safe Victoria in the exemption. 15 (4) An exemption takes effect on the day specified in the exemption. (5) In the case of an application under subsection (1), the application must-- (a) be in writing; and 20 (b) contain details of-- (i) the applicant's name, telephone number, and business and postal address; and (ii) the exemption requested; and 25 (iii) the reasons for the exemption; and (c) be accompanied by-- (i) any relevant technical information; and (ii) the prescribed application fee. 30 (6) Energy Safe Victoria may, at any time, by notice published in the Government Gazette, revoke an exemption. 561340B.I-12/8/2009 7 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 3--Amendment of Electricity Safety Act 1998 s. 8 (7) As soon as is practicable after an exemption or revocation under this section is made, Energy Safe Victoria must notify the applicant in writing of the exemption or 5 revocation.". 8 Application to review (1) In section 69(2)(e)(i) of the Electricity Safety Act 1998, for "proclaimed" substitute "energy efficiency". 10 (2) In section 69(2)(e)(ii) of the Electricity Safety Act 1998, for "proclaimed electrical equipment." substitute "energy efficiency electrical equipment; or". (3) After section 69(2)(e)(ii) of the Electricity Safety 15 Act 1998 insert-- "(f) a decision under section 68A-- (i) to exempt energy efficiency electrical equipment from the regulations; or (ii) to revoke an exemption.". 20 9 New Heading to Part 7 inserted Insert the following heading to Part 7 of the Electricity Safety Act 1998-- "PART 7--UNDERGROUND ELECTRIC LINES AND OWNERS OR OPERATORS OF COMPLEX 25 ELECTRICAL INSTALLATIONS". 561340B.I-12/8/2009 8 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 3--Amendment of Electricity Safety Act 1998 s. 10 10 New section 75 substituted For section 75 of the Electricity Safety Act 1998 substitute-- "75 General duties of owners or operators of 5 complex electrical installations and railways (1) An owner or operator of a complex electrical installation must take reasonable care to ensure that all parts of the complex electrical 10 installation that it owns or operates-- (a) are designed, constructed, operated, maintained and decommissioned in accordance with the regulations; and (b) are safe and operated safely. 15 Penalty: 1500 penalty units. (2) An owner or operator of a railway must take reasonable care to ensure that all parts of the supply network of the railway that it owns or operates-- 20 (a) are designed, constructed, operated, maintained and decommissioned in accordance with the regulations; and (b) are safe and operated safely. Penalty: 1500 penalty units.". 25 11 Regulations--safety management schemes For section 150(d) of the Electricity Safety Act 1998 substitute-- "(d) providing for a compliance audit of an accepted ESMS;". 561340B.I-12/8/2009 9 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 3--Amendment of Electricity Safety Act 1998 s. 12 12 Regulations--equipment efficiency (1) In section 154(a) of the Electricity Safety Act 1998, for "proclaimed" substitute "energy efficiency". 5 (2) In section 154(b) of the Electricity Safety Act 1998, for "proclaimed" substitute "energy efficiency". (3) In section 154(c) of the Electricity Safety Act 1998, for "proclaimed" (wherever occurring) 10 substitute "energy efficiency". (4) In section 154(d) of the Electricity Safety Act 1998, for "proclaimed" substitute "energy efficiency". (5) In section 154(e) of the Electricity Safety Act 15 1998, for "proclaimed" (wherever occurring) substitute "energy efficiency". (6) In section 154(f) of the Electricity Safety Act 1998, for "proclaimed" substitute "energy efficiency". __________________ 561340B.I-12/8/2009 10 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 4--Amendment of Electricity Safety Amendment Act 2007 s. 13 PART 4--AMENDMENT OF ELECTRICITY SAFETY AMENDMENT ACT 2007 13 Definitions (1) In section 4(1) of the Electricity Safety See: Act No. 5 Amendment Act 2007, the definitions of major 61/2007. electricity company, non-licensed distribution Statute Book: www. company, non-licensed transmission company, legislation. regulated distribution company and regulated vic.gov.au transmission company proposed to be inserted 10 into section 3 of the Electricity Safety Act 1998 are repealed. (2) Section 4(2) of the Electricity Safety Amendment Act 2007 is repealed. 14 Section 5 amended 15 In section 5 of the Electricity Safety Amendment Act 2007, in proposed section 3A of the Electricity Safety Act 1998, omit "regulated" (wherever occurring). 15 Section 6 repealed 20 Section 6 of the Electricity Safety Amendment Act 2007 is repealed. 16 Voluntary electricity safety management schemes for owner of complex electrical installations (1) In section 7 of the Electricity Safety 25 Amendment Act 2007, in the heading to proposed section 116 of the Electricity Safety Act 1998, for "network operator" substitute "owner of complex electrical installation". (2) In section 7 of the Electricity Safety 30 Amendment Act 2007, in proposed section 116(1) of the Electricity Safety Act 1998-- 561340B.I-12/8/2009 11 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 4--Amendment of Electricity Safety Amendment Act 2007 s. 16 (a) for "a network operator (other than a major electricity company)" substitute "an owner of a complex electrical installation"; (b) for "the network operator's supply network" 5 substitute "the owner's complex electrical installation". (3) In section 7 of the Electricity Safety Amendment Act 2007, in proposed section 116(3) of the Electricity Safety Act 1998, for 10 "network operator" substitute "owner of the complex electrical installation". (4) In section 7 of the Electricity Safety Amendment Act 2007, in proposed section 118(3) of the Electricity Safety Act 1998-- 15 (a) for "A network operator" substitute "An owner of a complex electrical installation"; (b) for "operator's supply network" substitute "owner's complex electrical installation". (5) In section 7 of the Electricity Safety 20 Amendment Act 2007, in proposed section 120A(1)(c) of the Electricity Safety Act 1998-- (a) for "a network operator" substitute "an owner of a complex electrical installation"; (b) for "supply network" substitute "complex 25 electrical installation". (6) In section 7 of the Electricity Safety Amendment Act 2007, in proposed section 120C(1)(b) of the Electricity Safety Act 1998, for "supply network" substitute "complex 30 electrical installation". (7) In section 7 of the Electricity Safety Amendment Act 2007, in proposed section 120C(2)(b) of the Electricity Safety Act 1998, for "operator's supply network" substitute 35 "owner's complex electrical installation". 561340B.I-12/8/2009 12 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 4--Amendment of Electricity Safety Amendment Act 2007 s. 16 (8) In section 7 of the Electricity Safety Amendment Act 2007, in the heading to proposed section 120F of the Electricity Safety Act 1998, for "network operator" substitute 5 "owner of complex electrical installation". (9) In section 7 of the Electricity Safety Amendment Act 2007, in proposed section 120F of the Electricity Safety Act 1998-- (a) for "A network operator (other than a major 10 electrical company)" substitute "An owner of a complex electrical installation"; (b) for "a supply network" substitute "the complex electrical installation"; (c) for "that supply network" substitute "that 15 complex electrical installation". (10) In section 7 of the Electricity Safety Amendment Act 2007, in proposed section 120F(a) of the Electricity Safety Act 1998, for "supply network" substitute "complex electrical 20 installation". (11) In section 7 of the Electricity Safety Amendment Act 2007, in proposed section 120F(b) of the Electricity Safety Act 1998, for "supply network" substitute "complex electrical 25 installation". (12) In section 7 of the Electricity Safety Amendment Act 2007, in proposed section 120H(1)(a)(ii) of the Electricity Safety Act 1998, for "operator's supply network" substitute 30 "owner's complex electrical installation". (13) In section 7 of the Electricity Safety Amendment Act 2007, in proposed section 120I(b) of the Electricity Safety Act 1998, for "operator's supply network" substitute "owner's 35 complex electrical installation". __________________ 561340B.I-12/8/2009 13 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 5--Amendment of Gas Industry Act 2001 s. 17 PART 5--AMENDMENT OF GAS INDUSTRY ACT 2001 17 Internet publication and bill notification of licensee standing offers See: In section 42C(1)(b) of the Gas Industry Act Act No. 5 31/2001. 2001, after "that customer" insert "at any time Reprint No. 4 before or". as at 1 July 2009. LawToday: www. legislation. vic.gov.au 18 Definitions In section 51A of the Gas Industry Act 2001, for the definition of MIRN substitute-- 10 "MIRN means the unique identifier for a gas metering installation allocated and registered under the Retail Market Procedures within the meaning of the National Gas (Victoria) Law;". __________________ 561340B.I-12/8/2009 14 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 6--Amendment of Gas Safety Act 1997 s. 19 PART 6--AMENDMENT OF GAS SAFETY ACT 1997 19 New section 68AA inserted In Division 5 of Part 3 of the Gas Safety Act See: Act No. 1997, before section 68 insert-- 99/1997. Reprint No. 3 5 "68AA Definition as at 1 May 2008 In this Division-- and amending ESV approved label means a label approved Act Nos 59/2008 and by Energy Safe Victoria under 23/2009. section 69B.". LawToday: www. legislation. vic.gov.au 10 20 New section 69B inserted After section 69A of the Gas Safety Act 1997 insert-- "69B Approval of label for Type A appliances Energy Safe Victoria may, by notice 15 published in the Government Gazette, approve a label for the purposes of section 70(1) or 71(1).". 21 Offence to install certain Type A appliances For section 70(1) of the Gas Safety Act 1997 20 substitute-- "(1) A person must not knowingly install a Type A appliance unless the appliance has-- (a) been accepted under an acceptance scheme authorised under this Division 25 or accepted by Energy Safe Victoria under this Division; and 561340B.I-12/8/2009 15 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 6--Amendment of Gas Safety Act 1997 s. 22 (b) an ESV approved label affixed to it. Penalty: In the case of a natural person, 40 penalty units. In the case of a body corporate, 5 200 penalty units.". 22 Offence to supply or sell unaccepted appliances (1) Insert the following heading to section 71 of the Gas Safety Act 1997-- "Offence to supply or sell unaccepted or 10 unlabelled appliances". (2) For section 71(1) of the Gas Safety Act 1997 substitute-- "(1) A person must not knowingly supply or offer to supply or sell or offer to sell a Type A 15 appliance unless the appliance has-- (a) been accepted under an acceptance scheme authorised under this Division or accepted by Energy Safe Victoria under this Division; and 20 (b) an ESV approved label affixed to it. Penalty: In the case of a natural person, 40 penalty units; In the case of a body corporate, 200 penalty units.". __________________ 561340B.I-12/8/2009 16 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 7--Amendment of Mineral Resources (Sustainable Development) Act s. 23 1990 PART 7--AMENDMENT OF MINERAL RESOURCES (SUSTAINABLE DEVELOPMENT) ACT 1990 23 Definitions In section 4(1) of the Mineral Resources See: Act No. 5 (Sustainable Development) Act 1990 insert the 92/1990. following definitions-- Reprint No. 7 as at 9 February "area work plan schedule means an area work 2007 plan schedule submitted under and amending section 41AD; Act Nos 16/2006, 10 declared mine means a mine specified in an Order 63/2006, under section 7C; 25/2008, 54/2008 and declared quarry means a quarry specified in an 6/2009. LawToday: Order under section 7C;". www. legislation. vic.gov.au 24 New section 7C inserted 15 After section 7B of the Mineral Resources (Sustainable Development) Act 1990 insert-- "7C Ministerial Order declaring specified mines and quarries (1) The Minister, by Order published in the 20 Government Gazette, may declare that a specified mine or quarry is a declared mine or declared quarry. (2) The Minister must not make a declaration under subsection (1) in respect of a mine or 25 quarry unless the Minister is satisfied that there are geotechnical or hydrogeological factors within the mine or quarry that pose a significant risk to-- (a) public safety; or 30 (b) the environment; or (c) infrastructure.". 561340B.I-12/8/2009 17 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 7--Amendment of Mineral Resources (Sustainable Development) Act s. 25 1990 25 New Division 9 inserted into Part 2 After Division 8 of Part 2 of the Mineral Resources (Sustainable Development) Act 1990 insert-- 5 "Division 9--Mine stability levy for Latrobe Valley 38AAA Definitions In this Division-- Latrobe Valley region means the region 10 constituted by the municipal boundaries of the Latrobe City Council and Wellington Shire Council; Latrobe Valley region coal mine means a coal mine that-- 15 (a) is prescribed for the purposes of the mine stability levy; and (b) is situated within the Latrobe Valley region; mine stability levy means the levy referred to 20 in section 38AAB. 38AAB Mine stability levy imposed This Division imposes a levy (the mine stability levy) for the purpose of providing measures designed to decrease geotechnical 25 and hydrogeological risks to mine stability in the Latrobe Valley region coal mines. 38AAC Who is liable for mine stability levy? A holder of a mining licence in respect of a Latrobe Valley region coal mine is liable to 30 pay the Minister the mine stability levy. 561340B.I-12/8/2009 18 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 7--Amendment of Mineral Resources (Sustainable Development) Act s. 26 1990 38AAD Amount of the mine stability levy The mine stability levy is the amount determined in accordance with the regulations. 5 38AAE When and how is the mine stability levy to be paid? A holder of a mining licence in respect of a Latrobe Valley region coal mine must pay the mine stability levy to the Minister by the 10 date or dates and in the manner and in respect of the period specified under the regulations.". 26 Work plans (1) After section 40(1) of the Mineral Resources 15 (Sustainable Development) Act 1990 insert-- "(1AA) A work plan lodged under subsection (1) must-- (a) specify the location at which work is to be carried out; or 20 (b) if the exact location is not known, specify the area within which work is to be carried out.". (2) After section 40(3)(a) of the Mineral Resources (Sustainable Development) Act 1990 insert-- 25 "(ab) if the licence is a mining licence relating to a declared mine, in addition to the prescribed information referred to in paragraph (a), prescribed mine stability requirements and processes; and". 561340B.I-12/8/2009 19 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 7--Amendment of Mineral Resources (Sustainable Development) Act s. 27 1990 27 New sections 41AB to 41AE inserted After section 41A of the Mineral Resources (Sustainable Development) Act 1990 insert-- "41AB Reporting requirements for declared 5 mines A holder of a licence in respect of a declared mine must provide a report containing the prescribed particulars to the Department Head in accordance with the regulations. 10 41AC Chief Inspector to be notified of reportable events in relation to mines (1) A licensee must report to the Chief Inspector in accordance with the regulations a reportable event at the mine as soon as 15 practicable after the reportable event occurs. (2) In this section, reportable event means an event prescribed as a reportable event for the purposes of this section. 41AD Licensee to submit area plan work 20 schedule (1) A licensee who has lodged an area work plan must not carry out any work on the land to which the area work plan relates unless the licensee has submitted to the Department 25 Head, not less than 21 days before carrying out that work, an area work plan schedule containing the prescribed information in relation to that work plan. (2) If an approved cultural heritage management 30 plan (within the meaning of the Aboriginal Heritage Act 2006) is required under that Act or regulations made under that Act in respect of work on land to which an area work plan relates, an area work plan 35 schedule is taken not to have been submitted 561340B.I-12/8/2009 20 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 7--Amendment of Mineral Resources (Sustainable Development) Act s. 28 1990 under subsection (1) unless the area work plan schedule is accompanied by a copy of the approved cultural heritage management plan. 5 (3) An area work plan schedule that is required to be submitted with a copy of an approved cultural heritage management plan under subsection (2) must be consistent with the approved cultural heritage management plan. 10 (4) In this section, area work plan means a work plan that has been-- (a) lodged under section 40(1AA)(b); and (b) approved under section 40. 41AE Variation application must be made if 15 mine is declared (1) If the Minister declares by Order under section 7C that a specified mine is a declared mine, the licensee in respect of the declared mine, within 60 days after the declaration, 20 must make an application to vary the approved work plan in respect of the declared mine. (2) The application must contain the prescribed mine stability requirements and processes. 25 (3) Sections 41(2) to (9) apply to an application lodged under this section.". 28 Planning permits not required for some work variations (1) In section 42A(2) of the Mineral Resources 30 (Sustainable Development) Act 1990, after "that work" insert "only". (2) In section 42A(2)(b) of the Mineral Resources (Sustainable Development) Act 1990, for "Minister" substitute "Department Head". 561340B.I-12/8/2009 21 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 7--Amendment of Mineral Resources (Sustainable Development) Act s. 29 1990 (3) In section 42A(3)(d) of the Mineral Resources (Sustainable Development) Act 1990, for "Minister" substitute "Department Head". 29 Commencement of work under exploration licence 5 After section 43(1)(a) of the Mineral Resources (Sustainable Development) Act 1990 insert-- "(ab) in the case of an area work plan within the meaning of section 41AD(4), the licensee has submitted the relevant area work plan 10 schedule containing the prescribed information to the Department Head not less than 21 days before carrying out any work on the land affected; and". 30 New section 116A inserted 15 After section 116 of the Mineral Resources (Sustainable Development) Act 1990 insert-- "116A Holder of extractive industry work authority or consent to supply information 20 (1) The holder of an extractive industry work authority must (in the prescribed form and at the prescribed times) furnish to the Minister the prescribed information relating to work done under the extractive industry work 25 authority. Penalty: 20 penalty units. (2) The holder of a consent under section 77A must (in the prescribed form and at the prescribed times) furnish to the Minister the 30 prescribed information relating to any surveys and other operations authorised by the consent. Penalty: 20 penalty units. 561340B.I-12/8/2009 22 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 7--Amendment of Mineral Resources (Sustainable Development) Act s. 31 1990 (3) A document furnished under subsection (1) or (2) is the property of the Crown and may be made available by the Minister for inspection by the public at any time after the 5 extractive industry work authority or consent under section 77A ceases to be in force.". 31 Delegation After section 120(2) of the Mineral Resources (Sustainable Development) Act 1990 insert-- 10 "(3) The Department Head may, by instrument, delegate to any employee in the Department any power or function the Department Head has as a referral authority under the Planning and Environment Act 1987 or 15 regulations under that Act.". 32 Regulations After section 124(1)(l) of the Mineral Resources (Sustainable Development) Act 1990 insert-- "(m) the method by which the amount of a mine 20 stability levy is determined; and (n) the date by which the mine stability levy or a part of the mine stability levy must be paid; and (o) the method by which the mine stability levy 25 or a part of the mine stability levy must be paid; and (oa) the period to which the mine stability levy will relate; and (ob) prescribing requirements for licensees or 30 holders of extractive industry work authorites that relate to geotechnical or hydrogeological risks to public safety, the environment or infrastructure; and". __________________ 561340B.I-12/8/2009 23 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 8--Amendment of Resources Industry Legislation Amendment Act s. 33 2009 PART 8--AMENDMENT OF RESOURCES INDUSTRY LEGISLATION AMENDMENT ACT 2009 33 Work plans See: In section 20 of the Resources Industry Act No. 5 6/2009. Legislation Amendment Act 2009, after Statute Book: proposed section 77G(3)(a) of the Mineral www. legislation. Resources (Sustainable Development) Act 1990 vic.gov.au insert-- "(ab) if the extractive industry work authority 10 relates to a declared quarry, in addition to the prescribed information referred to in paragraph (a), prescribed quarry stability requirements and processes; and". 34 New proposed sections 77KA and 77KB inserted 15 In section 20 of the Resources Industry Legislation Amendment Act 2009, after proposed section 77K of the Mineral Resources (Sustainable Development) Act 1990 insert-- "77KA Chief Inspector to be notified of 20 reportable events in relation to quarries (1) The holder of an extractive industry work authority who carries out an extractive industry at a quarry must report to the Chief Inspector in accordance with the regulations 25 a reportable event at the quarry as soon as practicable after the reportable event occurs. (2) In this section, reportable event means an event prescribed as a reportable event for the purposes of this section. 561340B.I-12/8/2009 24 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 8--Amendment of Resources Industry Legislation Amendment Act s. 34 2009 77KB Variation application must be made if quarry is declared (1) If the Minister declares by Order under section 7C that a specified quarry is a 5 declared quarry, the holder of an extractive industry work authority in respect of the declared quarry, within 60 days after the declaration, must make an application to vary the approved work plan in respect of the 10 declared quarry. (2) The application must contain the prescribed quarry stability requirements and processes. (3) Sections 77H(2) to (8) apply to an application lodged under this section.". __________________ 561340B.I-12/8/2009 25 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 9--Amendment of Petroleum Act 1998 s. 35 PART 9--AMENDMENT OF PETROLEUM ACT 1998 35 Definitions See: In section 4 of the Petroleum Act 1998-- Act No. 96/1998. Reprint No. 1 (a) insert the following definitions-- as at 5 18 September "current authority holder means a holder of 2007 a primary authorisation; and amending drilling authorisation area means the area Act No. 25/2008. specified in a special drilling LawToday: authorisation granted under Part 6A; www. legislation. 10 vic.gov.au primary authorisation means-- (a) an exploration permit; or (b) a retention lease; or (c) a production licence; or (d) a P(SL)A lease; or 15 (e) a P(SL)A licence; or (f) a P(SL)A permit; P(SL)A lease means a lease within the meaning of the Petroleum (Submerged Lands) Act 1982; 20 P(SL)A licence means a licence within the meaning of the Petroleum (Submerged Lands) Act 1982; P(SL)A permit means a permit within the meaning of the Petroleum 25 (Submerged Lands) Act 1982;"; (b) in the definition of authority, for "or a special access" substitute ", special access authorisation or a special drilling". 561340B.I-12/8/2009 26 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 9--Amendment of Petroleum Act 1998 s. 36 36 Meaning of gathering line In section 82 of the Petroleum Act 1998-- (a) after "production licence area" insert "or drilling authorisation area"; 5 (b) after "that area" insert "or from a drilling authorisation area to a production licence area". 37 New Part 6A inserted After Part 6 of the Petroleum Act 1998 insert-- 10 "PART 6A--SPECIAL DRILLING AUTHORISATIONS 95A Special drilling authorisation (1) A special drilling authorisation authorises a current authority holder to-- 15 (a) in the case of the holder of an exploration permit, retention lease, P(SL)A permit or a P(SL)A lease-- (i) carry out petroleum exploration operations in the drilling 20 authorisation area; and (ii) do anything in the drilling authorisation area that is necessary for the purposes of subparagraph (i); 25 (b) in the case of a holder of a production licence or a P(SL)A licence-- (i) carry out petroleum production in the area specified in the drilling authorisation area; and 561340B.I-12/8/2009 27 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 9--Amendment of Petroleum Act 1998 s. 37 (ii) do anything in the drilling authorisation area that is necessary for the purposes of subparagraph (i). 5 (2) A special drilling authorisation does not give a current authority holder any rights in respect of resources in the drilling authorisation area. 95B Application for special drilling 10 authorisation (1) A current authority holder may apply to the Minister for the grant of a special drilling authorisation in respect of an area (other than an area to which the Petroleum 15 (Submerged Lands) Act 1982 applies) adjacent to the area set out in a primary authorisation held by the holder. (2) In addition to complying with section 96, an applicant for a special drilling authorisation 20 must-- (a) describe and precisely identify the area in respect of which the authorisation is sought; and (b) describe in detail the operations that the 25 person seeks to carry out in that area; and (c) submit details of-- (i) its relevant technical qualifications and of the relevant 30 technical qualifications of its employees; and (ii) the relevant technical advice available to it; and (iii) the financial resources available to 35 it. 561340B.I-12/8/2009 28 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 9--Amendment of Petroleum Act 1998 s. 37 95C General criteria the Minister must consider (1) The Minister must not grant an application for an authorisation unless the Minister is 5 satisfied that the applicant holds a primary authorisation in respect of an area that is adjacent to the proposed drilling authorisation area. (2) The Minister must not grant an authorisation 10 in respect of an area unless the Minister is satisfied that the size of the area is appropriate having regard to the operations proposed in respect of the area by the person applying for the authorisation. 15 95D Criteria that apply to permit, lease and licence areas (1) This section applies if any part of the area in respect of which a special drilling authorisation is sought falls within an area 20 that is the subject of an exploration permit, a retention lease or a production licence held by a current authority holder who is not the applicant. (2) The Minister must not grant an authorisation 25 in respect of that part of the area unless that current authority holder has consented in writing to the issue of the authorisation in respect of that part of the area. 95E Exception to section 95D 30 Despite section 95D(2), the Minister may grant a special drilling authorisation in respect of an area that is the subject of a primary authorisation held by a current authority holder who is not the applicant 35 without the consent of that holder if-- 561340B.I-12/8/2009 29 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 9--Amendment of Petroleum Act 1998 s. 37 (a) the Minister-- (i) notifies that holder in writing that the Minister is proposing to exercise the Minister's powers 5 under this section, and of the reasons why the Minister is proposing to do so; and (ii) gives that holder 28 days to make any submissions it wishes in 10 relation to the proposal; and (b) the Minister considers any submissions made in response to the notice and also takes into account any commercial consequences to that holder that may be 15 likely if the authorisation is granted. 95F Minister may vary area to which authorisation applies In granting a special drilling authorisation, the Minister may vary in any way the 20 Minister considers appropriate the size or the boundaries of the area in respect of which the authorisation was sought. 95G Authorisation does not give exclusive rights 25 (1) The Minister may grant a special drilling authorisation in respect of an area, or any part of an area, that is already the subject of another special drilling authorisation. (2) The Minister must not grant a special drilling 30 authorisation in respect of an area, or any part of an area, that is already the subject of another special drilling authorisation unless-- 561340B.I-12/8/2009 30 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 9--Amendment of Petroleum Act 1998 s. 37 (a) the Minister has taken into account the work program of the current holder of the special drilling authorisation; and (b) the Minister is satisfied that the 5 operations proposed to be carried out under the authorisation will not be detrimental to, or unduly interfere with, any current or proposed future operations of the current holder of the 10 special drilling authorisation; and (c) the current holder of the special drilling authorisation has consented in writing to the issue of another special drilling authorisation in respect of that part of 15 the area. (3) The Minister may grant an exploration permit, a retention lease or a production licence in respect of an area, or any part of an area, that is already the subject of a 20 special drilling authorisation. 95H Term of authorisation A special drilling authorisation continues in force for the period specified in the authorisation by the Minister-- 25 (a) until it is cancelled by the Minister; or (b) until it is surrendered; or (c) until a primary authorisation in respect of or adjacent to the drilling authorisation area specified in the 30 authorisation expires or is surrendered, cancelled or terminated; or (d) unless this Act otherwise provides. 561340B.I-12/8/2009 31 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 9--Amendment of Petroleum Act 1998 s. 37 95I Existing permit, lease or licence holder not liable for actions of authorisation holder (1) This section applies if any part of the drilling authorisation area falls within an area that is 5 the subject of a primary authorisation held by a current authority holder that is not the holder of a special drilling authorisation. (2) The current authority holder is not liable in any way for any thing that is done or not 10 done by the holder of the special drilling authorisation. (3) Subsection (2) applies even if the current authority holder consented to the granting of the special drilling authorisation in respect of 15 the drilling authorisation area. 95J Authorisation holder must give data to the Minister (1) The holder of a special drilling authorisation must give a copy of all factual information 20 obtained as a result of operations carried out under the authorisation to the Minister within 30 days of the information being obtained. Penalty: 60 penalty units. (2) A reference to factual information in this 25 section includes any report compiled on the basis of information obtained under the authorisation. 95K Authorisation holder must give data to permit, lease or licence holder 30 (1) This section applies if any part of a special drilling authorisation area falls within an area that is the subject of an exploration permit, a retention lease or a production licence held by a current authority holder 561340B.I-12/8/2009 32 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 9--Amendment of Petroleum Act 1998 s. 38 who is not the holder of the special drilling authorisation. (2) The holder of the permit, lease or licence must give a copy of any factual information 5 obtained as a result of operations carried out under the authorisation in that part of the area to that holder within 30 days after completing in that part of the area the operations from which the information was 10 obtained. (3) If there is an agreement between the holder of the authorisation and the current authority holder in relation to the supply of the information, that agreement prevails over 15 anything to the contrary in this section. (4) A person must not impose any conditions on the supply of information under this section. (5) A person must comply with any obligation imposed on it by this section. 20 Penalty: 60 penalty units. __________________". 38 Transfers In section 107(1) of the Petroleum Act 1998, after "an authority" insert ", other than a special 25 drilling authorisation,". 39 New section 107A inserted After section 107 of the Petroleum Act 1998 insert-- "107A Transfers in relation to special drilling 30 authorisations (1) This section applies if a primary authorisation that is the basis for a special drilling authorisation granted under Part 6A 561340B.I-12/8/2009 33 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 9--Amendment of Petroleum Act 1998 s. 40 is transferred under this Act or the Petroleum (Submerged Lands) Act 1982. (2) Despite anything to the contrary in this Act, the special drilling authorisation to which 5 that primary authorisation relates is taken to be transferred to the person to whom the primary authorisation is transferred on the same day the primary authorisation is transferred.". 10 40 Partial transfer of permits and licences After section 110(5) of the Petroleum Act 1998 insert-- "(6) If the area that is the subject of an application under subsection (1) is also the 15 subject of a special drilling authorisation, an applicant for a transfer under this section must specify in the application-- (a) that the applicant is retaining the special drilling authorisation for that 20 part of the area that is not being transferred; or (b) that the applicant is transferring the special drilling authorisation to the other person.". 25 41 New sections 113A and 113B inserted After section 113 of the Petroleum Act 1998 insert-- "113A Special drilling authorisation suspended or cancelled if primary authorisation 30 suspended or cancelled (1) If a primary authorisation that is the basis for a special drilling authorisation granted under Part 6A is cancelled under this Act or the Petroleum (Submerged Lands) Act 1982, 35 the special drilling authorisation that relates 561340B.I-12/8/2009 34 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 9--Amendment of Petroleum Act 1998 s. 41 to that primary authorisation is taken to be cancelled on the same day the primary authorisation is cancelled. (2) If a primary authorisation that is the basis for 5 a special drilling authorisation granted under Part 6A is suspended under this Act or the Petroleum (Submerged Lands) Act 1982, the special drilling authorisation that relates to that primary authorisation is taken to be 10 suspended on the same day the primary authorisation is suspended. 113B Special drilling authorisation expires or is terminated if primary authorisation expires or is terminated 15 (1) If a primary authorisation that is the basis for a special drilling authorisation granted under Part 6A expires under this Act or the Petroleum (Submerged Lands) Act 1982, the special drilling authorisation that relates 20 to that primary authorisation is taken to expire on the same day the primary authorisation expires. (2) If a primary authorisation that is the basis for a special drilling authorisation granted under 25 Part 6A is terminated under the Petroleum (Submerged Lands) Act 1982, the special drilling authorisation that relates to that primary authorisation is taken to be terminated on the same day the primary 30 authorisation is terminated.". __________________ 561340B.I-12/8/2009 35 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 10--Consequential Amendments and Repeal of Amending Act s. 42 PART 10--CONSEQUENTIAL AMENDMENTS AND REPEAL OF AMENDING ACT Division 1--Consequential amendments See: 42 Aboriginal Heritage Act 2006 Act No. 16/2006 5 and In section 50 of the Aboriginal Heritage Act amending 2006, in paragraph (c) of the definition of Act Nos 63/2006, statutory authorisation, after "authorisation" 77/2008 and insert "other than an area work plan within the 6/2009. LawToday: meaning of section 41AD(4) of the Mineral 10 www. Resources (Sustainable Development) Act legislation. vic.gov.au 1990". See: 43 Savings provision for Electricity Safety Act 1998 Act No. 25/1998. Reprint No. 5 After section 164 of the Electricity Safety Act as at 1998 insert-- 21 August 15 2008 "165 Savings provision--proclaimed electrical and amending equipment Act Nos 61/2007, On the day section 7 of the Energy and 25/2008 and 59/2008. Resources Legislation Amendment Act LawToday: 2009 comes into operation, electrical 20 www. equipment that was proclaimed electrical legislation. vic.gov.au equipment immediately before the repeal of section 67 by section 6 of that Act is taken to be energy efficiency electrical equipment for the purposes of Part 5.". 561340B.I-12/8/2009 36 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Part 10--Consequential Amendments and Repeal of Amending Act s. 44 Division 2--Repeal of amending Act 44 Repeal of amending Act This Act is repealed on 1 September 2011. Note 5 The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984). 561340B.I-12/8/2009 37 BILL LA INTRODUCTION 12/8/2009

Energy and Resources Legislation Amendment Bill 2009 Endnotes ENDNOTES By Authority. Government Printer for the State of Victoria. 561340B.I-12/8/2009 38 BILL LA INTRODUCTION 12/8/2009

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