Simon Birmingham (SA, Liberal Party, Parliamentary Secretary to the Minister for the Environment) Share this | Link to 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 PETROLEUM AND GREENHOUSE GAS STORAGE AMENDMENT (REGULATORY POWERS AND OTHER MEASURES) BILL 2014

This Bill will ensure the effective commencement of important amendments to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGSA) to strengthen the offshore petroleum regulatory regime in respect of compliance, safety, integrity and environmental management objectives.

The Offshore Petroleum and Greenhouse Gas Storage Amendment (Compliance Measures) Act 2013 and the Offshore Petroleum and Greenhouse Gas Storage Amendment (Compliance Measures No. 2) Act 2013 received Royal Assent on 14 March 2013 and 28 May 2013 respectively. These Acts include amendments to the OPGGSA that seek to clarify and strengthen the compliance, monitoring, investigation and enforcement powers of the national offshore petroleum regulator, and ensure that enforcement measures for contraventions of the Act are appropriate in application and severity in the context of a high-hazard industry.

Unfortunately, the relevant Schedules to those Compliance Measures Acts have not been able to commence. Commencement of those Schedules was linked to commencement of the proposed Regulatory Powers (Standard Provisions) Act 2013 as provisions in the Schedules would have triggered provisions in that Act; however the Bill for that Act did not pass Parliament before it was prorogued prior to last year ' s Federal election.

On 20 March 2014, the Government introduced the Regulatory Powers (Standard Provisions) Bill 2014, which provides a framework of powers for general application across regulatory schemes for monitoring compliance with, investigating breaches of, and enforcing Commonwealth laws.

The Offshore Petroleum and Greenhouse Gas Storage Amendment Bill includes amendments that will link commencement of the Compliance Measures Acts to the commencement of the proposed Regulatory Powers (Standard Provisions) Act 2014. The Government is committed to ensuring that the important amendments to the OPGGSA to be made by the Compliance Measures Acts can properly commence. Incidents such as the blowout at the Montara Wellhead Platform on 21 August 2009 off the northern coast of Western Australia, and the explosion of the Deepwater Horizon on 20 April 2010 in the Gulf of Mexico, highlight the need for a strong, effective and properly resourced offshore petroleum regulatory regime to safeguard both human health and safety as well as the Australian marine environment.

The amendments made by this Bill will also continue to ensure that the relevant standard provisions, now contained in the proposed Regulatory Powers (Standard Provisions) Act 2014 which is currently being considered by the Parliament, are triggered for use within the offshore petroleum regulatory regime. Use of the standard provisions in that Act will prevent unnecessary lengthening of the statute book and duplication within Commonwealth legislation, by negating the need to include those provisions in the OPGGSA itself. This demonstrates the Government's continuing commitment to reduce regulation, and make Commonwealth laws clear and accessible.

The Bill also includes consequential amendments to the OPGGSA to support amendments that I am introducing today to the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 (the Regulatory Levies Act). The amendments to that Act would adjust the application of annual titles administration levies to ensure that the National Offshore Petroleum Titles Administrator is able to fully cost-recover its activities undertaken in relation to titles under the OPGGSA. The consequential amendments made by this Bill will insert a regulation-making power into the OPGGSA to provide for regulations to be made to enable amounts of annual titles administration levy to be remitted or refunded in the event that the whole or part of a title is not force for a full year. Providing for refund or remittal in these circumstances will ensure that the Titles Administrator receives sufficient levy to cover its functions in relation to titles while a title is in force, but also that titleholders are not required to pay levy in relation to periods during which the title is not in force.

Other minor policy and technical amendments in this Bill will:

In summary, through a range of measures, this Bill underscores the Government's commitment to the maintenance and continuing improvement of a strong, effective framework for the regulation of offshore petroleum and greenhouse gas storage activities.

OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE (REGULATORY LEVIES) AMENDMENT BILL 2014

This Bill amends provisions in the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 (the Regulatory Levies Act) relating to the imposition of annual titles administration levy and environment plan levy.

The amendments in relation to annual titles administration levy aim to ensure that the National Offshore Petroleum Titles Administrator is able to fully cost-recover its activities undertaken in relation to titles under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (the OPGGSA). Currently, levy is imposed for each year of the term of a petroleum or greenhouse gas title. A year of the term is defined by the OPGGSA as a period of one year beginning on the day on which the title comes into force or any anniversary of that day.

However, in certain circumstances, a title may remain in force for a period of less than one year. This may include, for example, when the term of an exploration permit or retention lease is extended by the Joint Authority following an application made by the titleholder resulting in a decision to suspend or exempt a titleholder from compliance with any of the conditions to which the permit or lease is subject. In this and other circumstances resulting from applications made by the titleholder, a 'part year' in the life of the title may be created – in other words not a neat 12 month period.

Although there may be less than 12 months remaining in the life of the term of a title, the Titles Administrator is still required to conduct administration activities in relation to that title. To ensure the Titles Administrator is fully cost-recovered for its activities, this Bill amends the Regulatory Levies Act to ensure that annual titles administration levy is imposed for a year of the term of a title, even if the title does not remain in force for the full year.

I have also introduced supporting consequential amendments to the OPGGSA to insert a regulation-making power to allow for a refund or remittal of levy, as appropriate, in the event that the title is not in force for a full year. Regulations to be made under this power will ensure the Titles Administrator receives sufficient levy to cost-recover its functions in relation to titles while a title is in force, but that titleholders are not required to pay levy in relation to periods during which the title is not in force.

The amendments made by this Bill in relation to environment plan levy take account of recent amendments to the Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009 (the Environment Regulations), which enable an applicant for a petroleum access authority, a petroleum special prospecting authority, a pipeline licence, a greenhouse gas search authority or a greenhouse gas special authority to submit an environment plan to the National Offshore Petroleum Safety and Environmental Management Authority.

Environment plan levy is currently imposed on submission of an environment plan, or a revision of an environment plan, under the Environment Regulations, where the activities to which the plan relates are authorised by one or more titles. The amendments to the Regulatory Levies Act made by this Bill will impose levy on submission of an environment plan where the plan is submitted by an applicant for a title.

The Bill also amends the Regulatory Levies Act to ensure that environment plan levy is imposed on submission of an environment plan, or revision of an environment plan, where the activities to which the plan relates will be carried out under a petroleum scientific investigation consent or a greenhouse gas research consent. Recent amendments to the Environment Regulations have clarified that the holder of a consent is required to have an accepted environment plan prior to carrying out a petroleum or greenhouse gas activity under the consent. Extending the application of the levy will ensure National Offshore Petroleum Safety and Environmental Management Authority can recover its costs of assessing the environment plan and on-going compliance activities undertaken in relation to the activities carried out under the plan.

Appropriate cost-recovery by both the National Offshore Petroleum Safety and Environmental Management Authority and the National Offshore Petroleum Titles Administrator is critical to ensure that these entities are resourced to effectively administer the offshore petroleum regime.

Debate adjourned.