Home > Mid-Year Economic and Fiscal Outlook > Appendix A: Policy Decisions Taken Since the 2011‑12 Budget > Expense Measures > Resources, Energy and Tourism

Appendix A: Expense Measures (Continued)

Resources, Energy and Tourism

Carbon Capture and Storage Flagships — deferral of funding

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Resources, Energy and Tourism	-	-38.5	-25.8	-2.8	-11.5

The Government will defer funding of $78.6 million for the Carbon Capture and Storage Flagships program. Total program funding will remain unchanged, with $78.6 million to be restored to the program beyond the forward estimates to better match the expected spending profile of the program.

Savings from this measure will be redirected to support other Government priorities.

Clean Energy Future — closure of emissions‑intensive electricity generation capacity

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Resources, Energy and Tourism	-	7.4	-	-	-

The Government will seek to negotiate the closure of around 2,000 megawatts of highly emissions‑intensive coal‑fired electricity generation capacity by 2020. A voluntary expression of interest process, open to generators with an emissions intensity greater than 1.2 tonnes of carbon dioxide equivalent per megawatt hour of electricity on an 'as generated' basis, will be conducted in 2011‑12. Following this process, the Government will seek to negotiate a contract for closure with one or more generators. Entering into a particular contract will be subject to an assessment that energy security will not be put at risk by the proposed closure. Payments will be contingent on the payment of workers' entitlements and appropriate arrangements for remediation of the power station site (and of a related coal mine where appropriate).

The Government will provide $7.4 million in 2011‑12 for the Department of Resources, Energy and Tourism to manage the expression of interest and contracting process. A provision has been made in the Contingency Reserve beyond 30 June 2016 for the cost of the contracts for closure.

This measure delivers on the Government's plan for a clean energy future.

Further information can be found in the joint press release of 10 July 2011 issued by the Prime Minister, the Minister for Climate Change and Energy Efficiency and the Minister for Resources and Energy.

Clean Energy Future — Improving Energy Efficiency — Energy Efficiency Opportunities Program

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Resources, Energy and Tourism	-	-	1.4	7.9	7.7

The Government will provide $31.6 million over five years from 2012‑13 (including $7.6 million in 2015‑16 and $7.0 million in 2016‑17) to continue and expand the Energy Efficiency Opportunities Program by:

enhancing assessment and verification requirements and expanding coverage to include energy transmission and distribution networks and major greenfield and expansion projects; and
establishing a voluntary scheme for medium energy use corporations that use less than 0.5 petajoules of energy per annum.

The program encourages large and medium energy‑using businesses to improve their energy efficiency. It does this by requiring them to identify, evaluate and report publicly on cost effective energy savings opportunities.

This measure delivers on the Government's plan for a clean energy future.

Further information can be found in the joint press release of 10 July 2011 issued by the Prime Minister, the Deputy Prime Minister and Treasurer and the Minister for Climate Change and Energy Efficiency.

Clean Energy Future — Innovation in Renewable Energy — Australian Renewable Energy Agency

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Resources, Energy and Tourism	-	0.5	1.0	-0.5	-1.0

The Government will establish an independent statutory body, the Australian Renewable Energy Agency (ARENA), to provide grants and other financial assistance for the research and development, demonstration and commercialisation of renewable energy and related technologies, including enabling technologies and renewable energy related transmission infrastructure. It will work closely with the new Clean Energy Finance Corporation to provide coordinated support to technologies at different stages of development.

ARENA will administer $3.2 billion in existing funding through the consolidation of programs currently delivered by the Australian Centre for Renewable Energy, the Department of Resources, Energy and Tourism, the Australian Solar Institute and the proposed Australian Biofuels Research Institute. It may also receive future funding from discretional dividends paid by the Clean Energy Finance Corporation and a share of future carbon price revenue should the Jobs and Competitiveness Program be modified following reviews by the Productivity Commission.

The Government will provide $2.5 million over three years ($0.5 million in 2011‑12 and $1.0 million per annum in 2012‑13 and 2013‑14) for the Department of Resources, Energy and Tourism to manage the transition to ARENA. This cost will be met through a reallocation and reprofiling of the Department's existing resourcing.

This measure delivers on the Government's plan for a clean energy future.

Further information can be found in the joint press release of 10 July 2011 issued by the Prime Minister, the Deputy Prime Minister and Treasurer, the Minister for Climate Change and Energy Efficiency, the Minister for Resources and Energy and the Minister for Innovation, Industry, Science and Research.

Clean Energy Future — Supporting Jobs — coal mining

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Resources, Energy and Tourism	-	222.4	10.5	246.7	257.2

The Government will provide $1.3 billion over six years (including $291.7 million in 2015‑16 and $305.6 million in 2016‑17) to assist the most emissions intensive coal mines to transition to a carbon price. This measure includes:

$1.3 billion over six years for a Coal Sector Jobs Package, to provide financial assistance to existing mines that had a fugitive emissions intensity in 2008‑09 above 0.1 tonne of carbon dioxide equivalent per tonne of saleable coal. Assistance will be based on the level and emissions intensity of production. Payments will be subject to a cap, based on production levels (the higher of 2007‑08 or 2008‑09); and
$70.0 million over six years for a Coal Mining Abatement Technology Support Package, to support the research, development and deployment of abatement technologies in the coal industry.

This measure delivers on the Government's plan for a clean energy future.

Commonwealth Heads of Government Meeting — Extractive Industries Transparency Initiative — domestic pilot

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Resources, Energy and Tourism	-	-	-	-	-

The Government will provide $0.5 million over two years ($0.3 million in 2012‑13 and $0.2 million in 2013‑14) to conduct a domestic pilot of the Extractive Industries Transparency Initiative (EITI). The pilot will be conducted across the Commonwealth, possibly a number of state and territory jurisdictions and a sample of Australian extractive resource companies to help determine how the EITI methodology could be applied effectively in Australia.

The EITI is a global standard that promotes revenue transparency through the publication of independently audited information on material payments made by oil, gas and mining companies to governments, and the revenues received by governments from these companies.

The cost of this measure will be met from within the existing resourcing of the Department of Resources, Energy and Tourism.

TQUAL Grants — redirection of funding

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Resources, Energy and Tourism	-	-0.6	-1.3	-2.0	-

The Government will redirect $3.8 million over three years from the TQUAL Grants program to support the extension of the Enterprise Connect initiative to the Australian tourism sector. The TQUAL Grants program seeks to encourage additional private sector investment in the development of Australia's tourism industry products, services and experiences.

See also the related expense measure titled Enterprise Connect — extension to tourism in the Innovation, Industry, Science and Research portfolio.

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