FEDERAL Member for Nicholls, Sam Birrell MP, has introduced a Private Member's Bill in the House of Representatives on Monday November 18, aimed at ensuring the responsible development and eventual decommissioning of large-scale renewable energy projects across Australia.
The Requiring Energy Operators to Obtain Rehabilitation Bonds Bill 2024 will mandate that proponents of onshore wind and large-scale solar panel projects secure bonds to cover the future costs of decommissioning infrastructure and rehabilitating the environment.
"This bill addresses a critical gap in current renewable energy policy," Mr. Birrell said.
"While the Nationals support the transition to cleaner energy sources, we must also ensure that the environmental and financial impacts of these projects are properly managed throughout their entire lifecycle.
“In the absence of any action by state and territory governments, this bill is needed to protect regional communities who are increasingly being left out of planning discussions.”
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Key aspects of the proposed legislation include:
• Requiring project proponents to present draft rehabilitation plans
• Mandating rehabilitation liability assessments
• Compelling operators to obtain rehabilitation bonds
"By mirroring similar requirements already in place for the mining sector, we're creating a level playing field and ensuring that renewable energy developers are held to the same high standards of environmental responsibility," Mr. Birrell explained.
The bill also aims to protect landholders, such as farmers, who may otherwise be left personally liable for rehabilitation costs at the end of a project's lifespan.
Recent estimates suggest that decommissioning a single wind turbine can cost between $400,000 and $600,000.
"This legislation will not only safeguard our environment but also provide peace of mind to local communities hosting these projects," added Mr. Birrell.
"It's about ensuring that the renewable energy sector operates responsibly and maintains its social license to operate."
While some industry players may view the bill as a potential dampener on investment, Mr. Birrell argues that it will ultimately strengthen progress towards renewable energy goals by addressing significant social license concerns.
The Requiring Energy Operators to Obtain Rehabilitation Bonds Bill 2024 is expected to have a negligible financial impact on the government while potentially reducing the burden on energy consumers who currently subsidise these projects.
