598 The council has, as part of its submissions in these proceedings, supported the Minister's condition as to contribution level and the basis for utilisation of those contributions.
599 We turn, first, to the question of the appropriate level of contribution that should be required. In this regard, we have the evidence of Mr Durran, an executive of the company, that there was no calculated basis that provided any foundation for the amount that had been offered for the Cullerin Range wind farm community contribution. He said that the amount had been selected by the proponent because it reflected what the company considered was a fair and reasonable amount under the circumstances.
600 We were also provided a table that showed what would be the rate per turbine that would be derived if the contribution rate for the Cullerin Range wind farm of $25,000 per annum were to be attributed on a per turbine basis. The result of such a calculation shows that the Cullerin Range wind farm contribution is $1,666 per annum per turbine for the life of that wind farm.
601 It is clear, from the material contained in the environmental assessment and other evidence given in the proceedings that final selection of the turbines to be used in this proposed wind farm will be dependent on a number of matters including availability of turbines, exchange rates, expectations concerning electricity prices and the like.
602 However, we are of the view that any proposed compensatory payment ought only relate to the generating capacity of a turbine if there is some particular extent to which the visual impact of a turbine alters as a consequence of any change in the generating capacity of such turbine.
603 The position as noted in RES Southern Cross v Minister for Planning and Taralga Landscape Guardians Inc. [2009] NSWLEC 1034, at para 19, is that there is little or no perceptible difference in noise between a wind farm installation such as that presently operating at the Cullerin Range wind farm and that wind farm if there were to be any increase in the generating capacity of its turbines.
604 The position is also that there is no visual impact of any significance caused by either the height of the rotors or the height of the tower supporting the turbine nacelle if there any increase in the generating capacity of the turbines. Further, there is no additional visual impact from the turbine nacelle housing of a more powerful turbine, as there is no increase in the size of the nacelle.
605 All this leads inescapably, in our view, to the conclusion that there is no rational basis upon which the visual impact of a wind farm could be linked to its electricity generation output capacity.
606 On the other hand, although we accept that the proponent selected $25,000 on some abstract basis as being the appropriate amount for compensation for the Cullerin Range wind farm, the proponent obviously considered that that was the appropriate amount to compensate the local community for the presence of 15 turbines in their landscape.
607 Although, in this instance, there are proposed to be significantly more turbines in the Gullen range landscape than the Cullerin Range wind farm, we are satisfied that the turbine arrangement (within the four sectors and across the two distinct halves of this wind farm) is not so radically dissimilar to a repetition of the clumping and tailed arrangements of the Cullerin Range wind farm that a per turbine rate derived from the contribution to that wind farm would not be appropriate to be applied to this wind farm.
608 As a consequence, although we do not accept that the contribution in the Minister's conditions is appropriate; neither do we accept that the amount of $75,000 per annum proposed by the proponent is acceptable.
609 Instead, given that this decision also provides a range of choices for the proponent as to whether it wishes to delete turbines or acquire properties, we consider it appropriate to adopt the per turbine rate derived from the Cullerin Range wind farm (of $1,666 per turbine per annum) and not express the contribution as an aggregated sum. We do this because the amount of the contribution will, in the final analysis, depend on the number of turbines to be developed by the proponent in light of this decision and its choices arising from it. As a consequence, this element of the condition is to be rewritten to reflect this decision.
610 We now turn to consider the nature of the scheme to which the contribution is to be applied. Mr Pickles made a number of criticisms of the council's scheme, the first being that the costing of the works for each of the proposed projects was imprecise (as was conceded by Mr Mowle, in the course of his oral evidence). A second criticism he made was that there was no particular link for many of the projects on the council's list of possible application of the funds to the portion of the council's area where this wind farm is to be located.
611 To these criticisms is to be added, in our view, the fact that, as is evident from the property tenure maps, a significant number of the properties, earlier described as being to the east and south-east of the more southern portion of the southern half of this wind farm are not located within the council's boundaries but are located in the neighbouring local government area of Goulburn Mulwaree Shire. As a consequence, we are of the view that there would be, if we were to adopt the totality of the council's scheme as the recipient of these funds, limited benefit to those affected properties.
612 On the other hand, there are attractions and limitations to the proponent's proposal. First, the proponent's proposal is both symbolically and practically linked to the renewable energy - the social desirability of which we have earlier discussed, briefly, and was discussed, as earlier noted, extensively by Preston CJ in Taralga. Second, the proponent's scheme is, in its renewable energy aspect, not limited to the boundaries of the council's local government area but encompasses all residences question from non-associated properties within 10 km of a turbine of this wind farm.
613 Such a proposal remedies the inequity effect that would arise if the council's scheme were to be adopted as the full position.
614 Finally, the proponent's scheme recognises that there might be a limited taking up of its scheme - a possibility, perhaps, more likely given the rate of contribution we have determined may result in a total contribution nearly double that anticipated by the proponent when crafting their own proposal - and addresses that by providing that any on taken up portion in any 12 month period would default to a contribution to the council's scheme.
615 As a consequence, as we consider the defects in the proponent's scheme can be secured, as discussed below, we consider that the proponent's scheme is preferable subject to the changes described below.
616 On the other hand, the proponent's proposal also requires not insignificant contributions from households that might wish to participate. Given the wide range of financial circumstances that were put to us during the course of hearing the objector evidence, we are concerned that the requirement for any contribution by a householder would be potentially discriminatory and, indeed, would have the potential to make it significantly less likely that those households in the socio-economic demographic that would most benefit from such energy efficiency installations would be those least able to take up that option.
617 As a consequence, particularly in light of the fact that the increased contribution levels we have determined will make it more likely that there will be the ability to enrol more households than previously anticipated (even if there is no financial contribution required from that household), such contributions are not to be a part of the scheme.
618 The second element of the proponent's proposal that concerns us is it makes the provision of these alternative energy installations subject to uncertainty, in some fashion, by making it conditional on the extent of government subsidies or rebates available for this purpose. The social desirability (as well as the environmental desirability) of these installations should not be subject to such a linkage. As a consequence, the proponent's scheme, to ensure certainty for the local community, should also have this aspect removed. Again, because of the fact that there is likely to be significantly more money available for the scheme than would be provided under the proponent's funding regime, we would not expect this uncoupling from government subsidy levels to make any significant difference to take up rates.
619 As a consequence of all the foregoing, the outline of a modified proponent proposal scheme can be derived from this decision (and reflected in the conditions) but we would expect that the final details of the scheme, including a process for calling of applications, assessment and prioritisation for access to funding from the scheme (if there were more applications in any year than there were funds available to support them) needs to be developed and approved by the Director-General. Such details of the scheme should include a basis for participation by the local community and by the council in the selection and prioritisation process and the conditions of consent are to reflect that this is to be a requirement of the scheme.