Queensland’s new energy transition laws

The Queensland Parliament has passed the Clean Economy Jobs Act 2024 (Clean Economy Jobs Act) and the Energy (Renewable Transformation and Jobs) Act 2024 (Renewable Transformation Act) to enshrine Queensland’s renewable energy targets and greenhouse gas emissions targets into legislation. The Queensland Government has also introduced a Bill proposing to expand the scope of the GasFields Commission Queensland and rename it as Coexistence Queensland.

Snapshot

The Queensland Parliament has passed two key energy reforms which aim to:

• reduce emissions;
• increase renewable energy sources;
• ensure public ownership of key energy assets;
• identify priority investment areas and projects; and
• support the affected workers through additional funding for training and support.

What's new

The new laws follow the release of the Queensland Government’s 2022 Energy and Jobs Plan and enshrine Queensland’s energy targets in legislation.

Emission Reduction targets

The Clean Economy Jobs Act sets three emission reduction targets of:

1. 30% below 2005 levels by 2030;
2. 75% below the 2005 levels by 2035; and
3. net zero emissions by 2050.

Interim targets for 2040 and 2045 will be set by the Minister in 2030 and 2035 respectively.

An annual progress statement will be prepared, tabled and published, to outline progress towards achieving the reduction targets, and the methodology used to calculate the progress made.

Renewable Energy Targets

The Renewable Transformation Act legislates three new renewable energy targets of:

1. 50% renewable energy by 2030;
2. 70% by 2032; and
3. 80% by 2035.

Public Ownership of Energy Assets

The Renewable Transformation Act legislates targets for the public ownership of energy assets, along with reporting and review mechanisms to ensure the targets are achieved. The targets are intended to be achieved by 2035 and include:

1. at least 54% of generation assets;
2. 100% of transmission and distribution assets; and
3. 100% of deep storage assets.

Optimal Infrastructure Pathway

The Optimal Infrastructure Pathway (Pathway) includes significant electricity infrastructure projects identified in the Queensland SuperGrid Infrastructure Blueprint. The Pathway is intended to:

1. achieve the renewable energy targets;
2. provide a safe, secure and reliable supply of electricity to Queensland consumers; and
3. ensure the long-term minimisation of the cost of electricity for Queensland consumers.

Queensland SuperGrid Infrastructure Blueprint and Priority Transmission Investment

The Renewable Transformation Act requires the preparation of the Queensland SuperGrid Infrastructure Blueprint to identify:

1. significant electricity infrastructure projects;
2. parts of Queensland that may be suitable to be renewable energy zones; and
3. matters relevant to achieving the Pathway objectives.

If a relevant project falls within the optimal infrastructure pathway in the Infrastructure Blueprint, it may be prescribed as a Priority Transmission Investment. Once declared a Priority Transmission Investment, the Minister must direct Powerlink to construct the investment.

Job Security Guarantee Fund

The Renewable Transformation Act establishes the Job Security Guarantee Fund to support affected energy workers through training and employment opportunities. Recipient obligations will be set out under regulation.

Clean Economy Expert Panel

The Clean Economy Jobs Act establishes the Clean Economy Expert Panel to advise the Minister on achieving the emissions reduction targets and ways to reduce greenhouse gas emissions in Queensland.

The Clean Economy Jobs Act will commence on assent. The Renewable Transformation Act will commence on a day fixed by proclamation.

Mineral and Energy Resources and Other Legislation Amendment Bill 2024

On 18 April 2024, the Minister for Resources and Critical Minerals introduced the Mineral and Energy Resources and Other Legislation Amendment Bill 2024 into the Queensland Parliament.

The Bill aims to:

• strengthen Queensland’s coexistence institutions, including an expansion of the remit of the GasFields Commission, and renaming the commission to ‘Coexistence Queensland’;
• introduce a risk-based framework to assess and manage impacts of coal seam gas induced subsidence on high-value agricultural land; and
• achieve regulatory efficiencies to ensure the Queensland resources industry remains fit for purpose.

Coexistence Queensland

The key functions of Coexistence Queensland are to:

• facilitate better relationships between landholders, regional communities, the resources industry and the renewable energy industry;
• provide a central point of contact for enquiries about matters affecting the coexistence of landholders, regional communities, the resources industry and the renewable energy industry;
• advise the relevant chief executive about the ability of stakeholders to coexist within an area the subject of an assessment application under the Regional Planning Interests Act 2014;
• advise Ministers, government entities and stakeholders about the sustainable coexistence of landholders, regional communities, the resources industry and the renewable energy industry, including emerging issues, and best practice;
• partner with entities to conduct research and deliver educational resources; and
• facilitate community engagement and initiatives about assessing health and wellbeing concerns relating to the resources or renewable energy industries.

The Bill has been referred to the Clean Economy Jobs, Resources and Transport Committee for consideration. The Committee will report on the Bill by 31 May 2024.

By Kathryn Pacey, Partner, Jessica Barge, Solicitor, and Isabella Badesso, Graduate