By Sustainable Living Armidale (SLA) broadcasting this combined councils letter is not in itself an endorsement of it by SLA. The reason for this broadcast is to enhance community knowledge on this local issue.
Background
The New England Renewable Energy Zone (‘NE REZ’) will be 8GW in size which is approximately the equivalent of 57.44 mt CO2 offset. To put that into perspective, Australia’s current CO2 emissions are approximately 528.78 mt CO2 (2020). The NE REZ will offset almost 11% of Australia’s current CO2 emissions. This is the equivalent of planting around 500,000,000 trees or removing 12.5m cars from our roads. The contribution that the region is making to Australia’s reduction in carbon is nationally significant. The establishment of the NE REZ is burdening our Councils with significant financial and social costs with little tangible benefit to our regions.
Proposal
To offset the financial and social burden associated with the NE REZ projects and gain the support of the NE REZ Councils, the NE REZ Councils require the State Government to mandate the following (as conditions precedent or subsequent) to the initial conditional approval and the final approval of any energy project:
Essential
1. Community Contribution Fee – Developers of energy projects to provide a community benefit contribution to a common fund established and solely managed by the individual Councils. This community benefit contribution would be in the region of 1.5% of build cost of the project (as detailed in the Capital Investment Value Report) or circ. $800 per MW (AC) per year over the life of the project.
2. Decommissioning Bond – Prior to the commencement of any works, a bond for decommissioning is to be provided to the relevant department of the NSW Government to be held on trust for the relevant NE Council. Where a threshold balance sheet or other financial due diligence has been met, this bond could be ‘tail-ended’ so that it becomes payable over the last five years of the life of a project. The bond will not discharged without consultation with the relevant Council.
3. Local Engagement – Developers of energy projects are to demonstrate authentic community engagement that seeks to actively involve community members in the design and decision-making process of new developments. This includes liaising with Council as to appropriate sites. (Certification by the local council that this requirement has been met, is to accompany any project application).
Desirable
4. PPA – Developers of energy projects are open to entering into a Power Purchase Agreement with Council and Council aligned businesses. This requirement is met if the Developer does not reject a Council PPA proposal, or a revised PPA proposal, where the Developer can demonstrate that the proposal would commercially compromise the project.
5. Carbon offset purchase from local market – 75% of the carbon offsets required for the individual project in the NE REZ are to be sourced from the local government area (LGA) in which the project is being developed. Where the supply in that LGA is exhausted, then the supply can come from another LGA in the NE REZ Council area. Where that supply is demonstrably exhausted, the developer will be exempted from this requirement to the extent of the lack of supply. (Certification by the local council, and or the NE REZ Councils as relevant that this requirement has been met, is to accompany any project application).
6. Telecommunications infrastructure – be constructed as part of a project and with access provided to an appropriate telecommunications company.
Sam Coupland — Mayor, Armidale Regional Council
Rob Banham — Mayor, Glen Innes Severn Council
Paul Harmon — Mayor, Inverell Shire Council
Robert Bell — Mayor, Uralla Shire Council
Eric Noakes — Mayor, Walcha Council
