{"id":"F2023L01481","name":"Industry Research and Development (Capacity Investment Scheme Program) Instrument 2023","slug":"industry-research-and-development-capacity-investment-scheme-program-instrument-2023","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":104918,"registerId":"commonwealth-F2023L01481-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n  This instrument is the Industry Research and Development (Capacity Investment Scheme Program) Instrument 2023.","sortOrder":0},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This instrument is made under section 33 of the Industry Research and Development Act 1986.","sortOrder":1},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\n  In this instrument:\n\n> Act means the Industry Research and Development Act 1986.\n\n> Kyoto Protocol means the Kyoto Protocol to the United Nations Framework Convention on Climate Change, done at Kyoto on 11 December 1997, as in force for Australia from time to time.\n\n> Note: The Protocol is in Australian Treaty Series 2008 No. 2 (\\[2008\\] ATS 2) and could in 2023 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\n> Paris Agreement means the Paris Agreement, done at Paris on 12 December 2015, as in force for Australia from time to time.\n\n> Note: The Agreement is in Australian Treaty Series 2016 No. 24 (\\[2016\\] ATS 24) and could in 2023 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\n> program: see subsection 5(1).\n\n> United Nations Framework Convention on Climate Change means the United Nations Framework Convention on Climate Change, done at New York on 9 May 1992, as in force for Australia from time to time.\n\n> Note: The Convention is in Australian Treaty Series 1994 No. 2 (\\[1994\\] ATS 2) and could in 2023 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).","sortOrder":2},{"sectionNumber":"5","sectionType":"section","heading":"Prescribed program","content":"#### 5 Prescribed program\n\n  (1) For the purposes of subsection 33(1) of the Act, the Capacity Investment Scheme Program (the program) is prescribed.\n  (2) The program provides underwriting, either directly or indirectly, for either or both of the following projects:\n  (a) clean dispatchable capacity projects;\n  (b) renewable generation capacity projects.\n  (3) The purpose of the program is to encourage new investment in clean renewable generation capacity and clean dispatchable capacity to support a reliable, affordable and low-emissions energy system.\n  (4) Applicants for underwriting support may be required to provide a bond or other form of security as part of the application process.","sortOrder":3},{"sectionNumber":"6","sectionType":"section","heading":"Specified legislative power","content":"#### 6 Specified legislative power\n\nFor the purposes of subsection 33(3) of the Act, the powers of the Parliament to make laws with respect to the following are specified:\n\n    (a) external affairs (within the meaning of paragraph 51(xxix) of the Constitution) as it relates to measures to give effect to Australia’s obligations under one or more of the following:\n    (i) the Kyoto Protocol, particularly Article 10;\n    (ii) the Paris Agreement, particularly Article 4;\n    (iii) the United Nations Framework Convention on Climate Change, particularly Article 4;\n    (b) matters in respect of which the Constitution makes provision until the Parliament otherwise provides (within the meaning of paragraph 51(xxxvi) of the Constitution), together with section 96 of the Constitution (financial assistance to States).","sortOrder":4}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument does not expand statutory powers; it prescribes a specific program under the existing s33 authority and sets its object and categories (s5). It narrows focus to underwriting for clean dispatchable and renewable generation and flags possible applicant security, but leaves detailed eligibility, administration and implementation rules to the underlying Act and administrative practice (s5, s6)."},"complexity_factors":["Short, frameless instrument that prescribes a program but omits operational detail (s5) — increases interpretive work for administrators and applicants.","Broad, non‑technical project categories (clean dispatchable capacity; renewable generation capacity) create definitional ambiguity (s5(2)(a)–(b)).","Discretion over requiring applicant security (bond or other form) introduces compliance and transactional complexity for applicants (s5(4)).","Links to the Industry Research and Development Act 1986 via the s33 power means readers must consult the Act for procedural and administrative rules (s5(1)).","Explicit specification of constitutional bases (external affairs and section 96 financial assistance) raises legal complexity about federal powers and treaty‑linked obligations (s6)."],"plain_english_summary":"This instrument creates the Capacity Investment Scheme Program under the Industry Research and Development Act 1986, authorising government underwriting (directly or indirectly) for clean dispatchable and renewable generation projects to encourage new investment in a reliable, affordable, low‑emissions energy system (s5(1)–(3)). Applicants seek underwriting from government and may be required to provide a bond or other security as part of applications (s5(2),(4)); the instrument also identifies the constitutional powers relied on, including external affairs and financial assistance to states (s6)."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This is a foundational instrument that establishes a new program. There is no prior version to compare against, and the scope aligns precisely with its stated purpose of underwriting clean energy capacity projects."},"complexity_factors":["Only 6 defined terms in the interpretation section","Single operational provision (section 5) with straightforward purpose and function","No nested exceptions or conditional logic chains","Minimal cross-referencing — only refers to parent Act and constitutional provisions for legislative authority","Short length (6 sections total, with sections 2 and 3 being purely mechanical)","Clear, direct language without technical energy market jargon"],"plain_english_summary":"The bill creates a Capacity Investment Scheme Program to underwrite new clean dispatchable capacity (e.g., batteries, pumped hydro) and renewable generation projects, reducing financial risk to attract investment in low‑emissions infrastructure. It affects energy companies, investors, the Commonwealth (as guarantor) and, ultimately, electricity consumers by aiming to secure reliable, affordable, lower‑emissions supply as ageing coal plant retires. The scheme is established under the Industry Research and Development Act 1986 and federal constitutional financial and international‑obligations powers."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/industry-research-and-development-capacity-investment-scheme-program-instrument-2023","history":"/api/acts/industry-research-and-development-capacity-investment-scheme-program-instrument-2023/history","analysis":"/api/acts/industry-research-and-development-capacity-investment-scheme-program-instrument-2023/analysis","conflicts":"/api/acts/industry-research-and-development-capacity-investment-scheme-program-instrument-2023/conflicts","importantCases":"/api/acts/industry-research-and-development-capacity-investment-scheme-program-instrument-2023/important-cases","documents":"/api/acts/industry-research-and-development-capacity-investment-scheme-program-instrument-2023/documents"}}