Part 4Licensing

Part 4—Licensing 14—Regulated activities—exclusions (1) For the purposes of section 12(2)(b) of the Act, the following activities, if undertaken by a relevant distribution network service provider or a relevant transmission network service provider pursuant to a transmission licence or a distribution licence granted under Part 3 of the Electricity Act 1996, unless otherwise determined by the Minister by notice in the Gazette for the purposes of this regulation, are excluded from the definition of regulated activities for the purposes of the Act: (a) constructing, installing, operating, maintaining or decommissioning a transmission or distribution network; (b) transmitting or otherwise conveying energy obtained from a renewable energy resource through a transmission or distribution network. relevant distribution network service provider means SA Power Networks (ACN 332 330 749); relevant transmission network service provider means ElectraNet Pty Ltd (ACN 094 428 416). 15—Hydrogen generation licence—regulated activities For the purposes of section 14(1)(c) of the Act, the following regulated activities are prescribed: (a) constructing, installing, operating, maintaining or decommissioning direct air capture infrastructure to be used for the purposes of capturing carbon dioxide associated with generating hydrogen; (b) constructing, installing, operating, maintaining or decommissioning infrastructure necessary for the storage of any compound of hydrogen created in accordance with the provisions of the Act; (c) if the licensee— (i) holds a port operating agreement pursuant to section 28B of the Harbors and Navigation Act 1993 in respect of the proposed licence area; or (ii) has entered into a contract or other agreement with a person who holds a port operating agreement pursuant to section 28B of the Harbors and Navigation Act 1993 in respect of the proposed licence area, the construction, installation, operation, maintaining, management and decommissioning of a port, wharf or jetty associated with the import or export of hydrogen or a compound of hydrogen created in accordance with the provisions of the Act. 16—Associated infrastructure licence—prescribed requirements (1) For the purposes of section 23(5) of the Act, it is a requirement that the Minister must be satisfied— (a) if the licence will authorise the construction, installation, operation, maintaining, management and decommissioning of a port, wharf or jetty associated with the import or export of hydrogen or renewable energy—that the applicant for the licence— (i) holds, or will hold at the time the licence is granted, a port operating agreement within the meaning of section 28B of the Harbors and Navigation Act 1993 in respect of the proposed licence area; or (ii) has entered into a contract or other agreement with a person who holds, or will hold, a port operating agreement within the meaning of section 28B of the Harbors and Navigation Act 1993 in respect of the proposed licence area; or (b) in any other case—that the applicant for the licence has, or will acquire, a right or interest in respect of the land comprising the proposed licence area. (2) In this regulation, a reference to hydrogen includes a compound of hydrogen created in accordance with the provisions of the Act. 17—Special enterprise licence For the purposes of section 27(2)(b) of the Act, the following information is prescribed: (a) information demonstrating that the enterprise is of major significance to the economy of the State; (b) a statement outlining the regulated activity or activities proposed to be undertaken as part of the enterprise; (c) maps and plans relating to the place where the enterprise is proposed to be undertaken; (d) an outline of the environmental impacts of the proposed enterprise and of steps proposed to be undertaken to address or manage those impacts; (e) a statement of the steps taken by the proponent to obtain any permissions, authorisations, consents or other approvals from an owner of land or any registered native title claimant as would be required for a grant of another licence or permit under the Act in respect of the enterprise, including (if relevant) any attempts at mediation or other dispute resolution; (f) if so determined by the Minister in a particular case—a description of the impacts on people and communities that may reasonably be expected to occur as a result of the enterprise and the measures that are to be used to manage, limit or remedy those impacts (in the case of negative impacts), or to facilitate or ensure those impacts (in the case of positive impacts); (g) a statement of the technical, operational and financial capabilities and resources available to the proponent for the purpose of undertaking the enterprise; (h) a statement by the proponent outlining any contravention by the proponent of a provision of a designated Act in connection with activities undertaken by them within the preceding period of 5 years that resulted in— (iv) the issuing of a notice, direction or order that required the suspension or discontinuance of an activity or the rectification of any harm to the environment or the rehabilitation of any land, place or other aspect of the environment; (i) a statement identifying any exemptions or modifications with respect to the provisions of the Act that the proponent has under consideration in connection with the operation of section 29 of the Act; (j) such other information as may be determined by the Minister and notified to the proponent. 18—Application for licence—prescribed information (1) For the purposes of section 31(1)(d) of the Act, in addition to the material required under section 31 of the Act, the following information is prescribed: (a) the full name and address of the applicant; (b) if the application is being made by more than 1 person—information regarding the interest each person will have in the licence (which may be expressed as a percentage); (c) the name, address and telephone number of a person who can be contacted about the application; (d) a description of the area to which the application relates, using coordinates in a form determined or approved by the Minister and, if available, cadastral boundaries; (e) a map indicating the area of land to which the application relates that identifies any significant topographical, environmental and cultural features of the land; (f) the size of the area to which the application relates expressed in kilometres or square kilometres (as appropriate); (g) if the applicant is a body corporate—a copy of the body corporate's most recent audited financial statements; (h) information that demonstrates the expected financial position of the applicant over the proposed term of the licence (or a shorter term determined by the Minister); (i) the necessary technical qualifications and experience that will enable the applicant to undertake authorised operations; (j) the necessary operational capabilities and resources that will enable the applicant to undertake authorised operations; (k) if the proposed licence will authorise exploiting a renewable energy resource through an electricity generating plant that is to be connected to the State's power system—a certificate from the Technical Regulator certifying that the electricity generation complies with the requirements of the Technical Regulator in relation to the security and stability of the State's power system; (l) if the applicant seeks to apply for an associated infrastructure licence that confers a right to enter and use land in the proposed licence area—that fact; (m) if the applicant has, or will acquire, a right or interest in respect of land comprising the proposed licence area sufficient to undertake the proposed authorised operations—such evidence as required by the Minister that the applicant has, or will acquire, that right; (n) in the case of an application for a hydrogen generation licence, renewable energy feasibility licence, renewable energy infrastructure licence or an associated infrastructure licence that will confer a right to enter and use designated land, if any part of the proposed licence area comprises native title land— (i) if a native title agreement is in place—that fact; or (ii) in any other case—a statement outlining the manner in which the applicant will negotiate a native title agreement in respect of the land; (o) a statement outlining any contravention by the applicant of a provision of a designated Act in connection with activities undertaken by them within the preceding period of 5 years that resulted in— (iv) the issuing of a notice, direction or order that required the suspension or discontinuance of an activity or the rectification of any harm to the environment or the rehabilitation of any land, place or other aspect of the environment. electricity generating plant has the same meaning as in paragraph (a) of the definition of electricity infrastructure in section 4(1) of the Electricity Act 1996; power system and Technical Regulator have the same respective meanings as in the Electricity Act 1996. 19—Notice of certain applications For the purposes of section 32(4) of the Act, as soon as practicable after determining to grant or refuse an application to which section 32 of the Act applies, the Minister must publish, by notice in the Gazette, a statement of the determination of the Minister in relation to the application. 20—Negotiating access agreement—prescribed period For the purposes of section 42(4)(b) of the Act, the prescribed period is 2 months from the day on which the Minister commences mediation between the negotiating parties. 21—Renewal of licence (1) Subregulation (2) applies to— (a) a hydrogen generation licence; and (b) a renewable energy feasibility licence; and (c) a renewable energy infrastructure licence; and (d) a renewable energy research licence; and (e) an associated infrastructure licence. (2) For the purposes of sections 15(4), 18(4)(a), 20(4)(a), 22(4)(a) and 24(4)(a) of the Act, the Minister must, before renewing a licence to which this subregulation applies, be satisfied that an applicant for the renewal of a licence has— (a) provided to the Minister a statement of performance for the previous term of the licence which includes such information in respect of authorised operations required by the Minister and notified to the applicant; and (b) provided to the Minister— (i) a written statement of reasons for the renewal of the relevant licence outlining the operations that the applicant intends to undertake under the licence during— (A) the term of the renewed licence; or (B) a period determined by the Minister; and (ii) an estimate of the amount of expenditure expected as a result of undertaking those operations; and (iii) a written statement of any changes to the approved work program required as a result of the renewal of the relevant licence; and (c) the necessary technical qualifications and experience that will enable the applicant to undertake authorised operations; and (d) the necessary operational capabilities and resources that will enable the applicant to undertake authorised operations; and (e) provided information to the Minister of the expected financial position of the applicant over the proposed term of the licence to be renewed (or a shorter term determined by the Minister); and (f) provided a statement outlining any contravention by the applicant of a provision of a designated Act in connection with activities undertaken by them within the preceding period of 5 years that resulted in— (iv) the issuing of a notice, direction or order that required the suspension or discontinuance of any activity or the rectification of any harm to the environment or the rehabilitation of any land, place or other aspect of the environment. (3) In addition to the matters outlined in subregulation (2), for the purposes of section 15(4) of the Act, the Minister must not renew a hydrogen generation licence unless the Minister is satisfied that the applicant for the renewal has or will acquire a right or interest in respect of land comprising the licence area sufficient to undertake the operations to be authorised under the renewed licence. 22—Work program (1) For the purposes of paragraph (b) of the definition of work program in section 4(1) of the Act, the following criteria are prescribed in respect of the work program of a renewable energy feasibility licence: (a) how data obtained during exploratory operations (including from the use of equipment used for exploring a renewable energy resource) will be captured, stored, analysed, progressed, actioned and reported; (b) how the applicant for the licence or the licensee (as the case requires) will undertake construction and placement of equipment intended to be used for exploring a renewable energy resource; (c) how the applicant for the licence or the licensee (as the case requires) will effectively understand the renewable energy resource potential of the relevant release area within a specified time; (d) the manner in which the commercial and business models of the applicant or licensee (as the case requires) will support a subsequent application for a renewable energy infrastructure licence. (1a) Pursuant to paragraph (c)(i) of the definition of work program in section 4(1) of the Act, an economic analysis of the operations proposed to be undertaken under the licence must contain the following: (a) a detailed financial analysis of the proposed operations which includes— (i) revenue projections, including expected income from operations and underlying assumptions; and (ii) operating costs, detailing recurring expenditures; and (iii) capital expenditures, including estimated investments in assets and infrastructure; (b) documented evidence of financial resources necessary for the proposed operations which includes— (i) equity contributions, detailing the source and amount of the applicant's own capital investment; and (ii) evidence of committed funding, including financial guarantees or agreements with investors; and (iii) details of grants, government subsidies, or alternative funding sources, where applicable; and (iv) a contingency plan addressing financial risk management, including mitigation strategies for cost overruns or revenue shortfalls. (2) Pursuant to paragraph (c)(ii) of the definition of work program in section 4(1) of the Act, an assessment of the benefits to the State derived, or expected to be derived, from operations proposed to be undertaken under the licence should address the net economic, social and environmental benefit to the State expected as a result of the proposed authorised operations, including (if relevant) the manner in which the proposed authorised operations will— (a) support the short and long term security and stability of the State’s energy system; and (b) create and maintain jobs and provide skills and training opportunities, including jobs for young people, apprentices, Aboriginal and Torres Strait Islander people and people with a disability; and (c) provide opportunities for Australian entities to bid for the supply of goods and services necessary in undertaking the project; and (d) provide beneficial economic, environmental and social outcomes for rural, regional and Aboriginal communities. 23—Notice to Minister of commencement of authorised operations (1) For the purposes of section 44 of the Act— (a) a licensee must specify the day on which authorised operations will commence in the operational management plan approved in relation to the licence; and (b) when a licensee knows the day on which authorised operations will be completed—a licensee must specify this day in each annual licence report provided to the Minister under regulation 26. (2) If authorised operations commence or are completed on a day other than that notified to the Minister under subregulation (1), the licensee must, within 10 business days after the operations commenced or were completed (as the case requires), give written notice to the Minister of the day on which authorised operations commenced or were completed. 24—Rent (1) For the purposes of section 45(2)(a) of the Act, the amount of annual rent for a licence to which section 45 of the Act applies in respect of a particular year is— (a) in the case of a renewable energy research licence or a special enterprise licence—the amount specified in, or calculated in accordance with, a rental determination; or (b) in the case of a renewable energy feasibility licence or a renewable energy infrastructure licence— (i) the amount specified in, or calculated in accordance with, a rental determination; or (ii) the amount of the successful rental offer (if any), whichever is greater. (2) The Minister must provide to each holder of a licence to which section 45 of the Act applies a written notice of the annual rent payable by the licensee in respect of each licence year. (3) For the purposes of this regulation, the Minister must, in accordance with the requirements of this regulation, by notice in the Gazette, make a determination in relation to the amount of annual rent payable for a licence to which section 45 of the Act applies (a rental determination). (4) Without limiting the generality of subregulation (3), a rental determination may— (a) — (i) express the rent payable as a fixed amount in respect of a specified year or each year within a specified period; or (ii) provide for the manner in which the amount of rent payable is to be determined or calculated in a specified year or each year within a specified period; and (b) provide that the amount of rent payable in respect of a year is to be indexed annually in accordance with the provisions of the determination; and (c) be of general, limited or varied application according to the licence, class of licence, circumstances or any other specified factor to which the determination is expressed to apply. (5) If the Minister has issued a notice under section 11(1) of the Act inviting applications for renewable energy feasibility licences within a specified release area, the Minister must make a rental determination that will apply in relation to a renewable energy feasibility licence and a renewable energy infrastructure licence granted within that area. (6) The Minister may make a rental determination at any other time as the Minister thinks fit. (7) The Minister may, not less than 5 years after making a rental determination, undertake a review of the determination. (7a) The Minister may, on the application of the holder of a licence to which section 45 of the Act applies or on the Minister's own initiative, waive, reduce or defer (in whole or in part) a payment of rent subject to such conditions as the Minister thinks fit. (7b) Pursuant to section 45(3) of the Act— (a) the prescribed amount is an amount determined by the Minister not exceeding $25 000; and (b) the prescribed time is a day on or after 1 July, but before 31 October, in each year. (8) In this regulation— rental determination—see subregulation (3); rental offer means an offer specified in an application for a renewable energy feasibility licence made in response to— (a) an invitation for applications under section 11(1) of the Act; or (b) an invitation to submit a further application under section 11(5) of the Act, of an amount that the applicant intends to pay by way of rental in respect of 1 or both of the following: (c) a specified year, or each year within a specified period, during the term of a renewable energy feasibility licence (if granted); (d) a specified year or each year within a specified period during the term of the subsequent renewable energy infrastructure licence (if granted); successful rental offer means the rental offer made by a successful applicant for a renewable energy feasibility licence determined by the Minister under section 11 of the Act in respect of 1 or both of the following: (a) a specified year, or each year within a specified period, during the term of a renewable energy feasibility licence; (b) a specified year or each year within a specified period during the term of a subsequent renewable energy infrastructure licence. 24A—Dealing with licence Pursuant to section 50(2) of the Act, before the Minister consents to the transfer or assignment of a licence, the Minister must obtain the following written information from the person to whom the licence is to be transferred or assigned: (a) a copy of the instrument effecting the transfer or assignment; (b) — (i) if the person to whom the licence is to be transferred or assigned is an incorporated association—a copy of the association's most recent audited financial statements; or (ii) in any other case—a statement of the expected financial position of the transferee or assignee over the term of the licence (or such other period as may be requested by the Minister); (c) information that demonstrates the expected financial position of the applicant over the proposed term of the licence (or a shorter term determined by the Minister); (d) the necessary technical qualifications and experience that will enable the applicant to undertake authorised operations; (e) the necessary operational capabilities and resources that will enable the applicant to undertake authorised operations. 25—Surrender of licence (1) For the purposes of section 55(2)(b) of the Act, the following information is prescribed: (a) a statement, accompanied by supporting evidence— (i) that outcomes or objectives required under a statement of environmental objectives have been achieved (or if an outcome or objective has not been achieved, the reason for this situation and information about what the licensee has done, or proposes to do, in the circumstances); and (ii) that all rehabilitation required to be undertaken has been completed or is in place; (b) in the case of a surrender of a part of the area of the licence—a map and description of the relevant areas, showing the area to be surrendered and the area to remain, that comply with the requirements specified by the Minister; (c) the final annual licence report required under regulation 26; (d) the final half yearly report required under regulation 27; (e) the following declarations, in the form of a statutory declaration: (i) a declaration that authorised operations have ceased; (ii) — (A) if the licensee has no outstanding liabilities under the Act—a declaration of that fact; or (B) in any other case—a declaration that the licensee has a management plan in place for the management or transfer of any outstanding liabilities under the Act; (iii) a declaration that all fees, rents or penalties under the Act have been paid; (iv) a declaration that outlines any legal proceedings in respect of authorised operations that involve the licensee as a party to those proceedings; (f) an outline of the consultation undertaken by the licensee with each owner of the land within the licence area about surrendering the licence and any rehabilitation or other work or activities to be carried out in connection with the surrender, including any issues raised by the owner of land and how those issues have been, or will be, addressed. (2) For the purposes of section 55(3) of the Act, the Minister must, before accepting the surrender of a licence or a part of the area of a licence, have regard to the following matters: (a) the information provided to the Minister under subregulation (1); (b) in considering whether to approve the surrender unconditionally under section 55(4)(a) of the Act or on conditions in accordance with section 55(4)(b) of the Act—whether, on the basis of the information provided to the Minister under subregulation (1), all outstanding obligations have been met by the licensee; (c) any information provided by an administrative unit of the Public Service responsible for assisting a Minister in the administration of a prescribed Act relating to— (i) the decommissioning of the infrastructure operated under the licence; or (ii) rehabilitation of land within the licence area; or (iii) rehabilitation of the environment. prescribed Act has the same meaning as in regulation 31.