Commonwealth: Net Zero Economy Authority Act 2024 (Cth)

Net Zero Economy Authority Act 2024 No. 85, 2024 An Act to establish the Net Zero Economy Authority, and for related purposes Contents Part 1—Preliminary 1 Short title 2 Commencement 3 Object 4 Simplified outline of this Act 5 Definitions 6 Closing employers, dependent employers and receiving employers 7 Transition employees of closing employers or dependent employers 8 Geographic area 9 Trigger notice 10 Extension to external Territories 11 Extension to exclusive economic zone and continental shelf 12 Application of this Act outside Australia Part 2—Net Zero Economy Authority Division 1—Preliminary 13 Simplified outline of this Part Division 2—Establishment and functions of the Authority 14 Establishment of the Authority 15 Constitution of the Authority 16 Functions of the Authority Part 3—Board of the Authority Division 1—Preliminary 17 Simplified outline of this Part Division 2—Establishment and functions of the Board 18 Establishment of the Board 19 Functions of the Board 20 Minister may give directions to the Board Division 3—Board members 21 Membership 22 Appointment of Board members 23 Eligibility for appointment as Board member 24 Appointment of acting Chair or Board member 25 Remuneration of Board members 26 Disclosure of interests by Board members 27 Leave of absence of Board members 28 Other terms and conditions of Board members 29 Resignation of Board members 30 Termination of appointment of Board members Division 4—Meetings of the Board 31 Convening meetings 32 Presiding at meetings 33 Quorum 34 Voting at meetings 35 Conduct of meetings 36 Minutes 37 Decisions without meetings Part 4—Chief Executive Officer and staff etc. of the Authority Division 1—Preliminary 38 Simplified outline of this Part Division 2—Chief Executive Officer 39 The Chief Executive Officer 40 CEO's functions 41 CEO to act in accordance with directions of the Board 42 Appointment of CEO 43 Appointment of acting CEO 44 Remuneration of CEO 45 Other paid work of CEO 46 Disclosure of interests by CEO 47 Leave of absence of CEO 48 Other terms and conditions of CEO 49 Resignation of CEO 50 Termination of appointment of CEO Division 3—Staff etc. of the Authority 51 Staff 52 Persons assisting the Authority 53 Consultants Part 5—Energy industry jobs plan Division 1—Preliminary 54 Simplified outline of this Part Division 2—Community of interest process and community of interest determinations 55 CEO to undertake community of interest process after giving of trigger notice 56 CEO may apply to Fair Work Commission for a community of interest determination 57 Fair Work Commission to make community of interest determination Division 3—Employer obligations 58 General obligations of closing employers and dependent employers 59 Other obligations of closing employers and dependent employers 60 Fair Work Commission determination about section 59—agreement between employer and employee organisations 61 Fair Work Commission determination about section 59—no agreement between employer and employee organisations 61A Dealing with disputes 62 Fair Work Commission order about a community of interest determination Division 4—Energy Industry Worker Redeployment Advisory Group 63 Energy Industry Worker Redeployment Advisory Group Division 5—Information management 64 CEO may require information or documents 65 Inspection and retention of documents and provision of certified copies of documents 66 CEO may provide information to employers Division 6—Enforcement of civil penalty provisions 67 Enforcement of civil penalty provisions 67A Compensation orders Division 6A—Injunctions 67B Injunctions Division 6B—Costs 67C Costs Division 7—Additional functions of CEO 68 Additional functions of CEO Part 6—Miscellaneous Division 1—Preliminary 69 Simplified outline of this Part Division 2—Miscellaneous 70 Stakeholder Panel 71 Liability for damages 72 Minister may request reports and advice 73 Consulting on corporate plan 74 Annual report 75 Publication of reports etc. 76 Disclosure of information—government related entities and individuals 77 Use of information—government related entities and individuals 78 Disclosure and use of information—other entities 79 Delegation by the Board 80 Delegation by the CEO 80A Reviews of the operation of this Act 81 Rules Net Zero Economy Authority Act 2024 No. 85, 2024 An Act to establish the Net Zero Economy Authority, and for related purposes [Assented to 17 September 2024] The Parliament of Australia enacts: Part 1—Preliminary 1 Short title This Act is the Net Zero Economy Authority Act 2024. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information Column 1 Column 2 Column 3 Provisions Commencement Date/Details 1. The whole of this Act A single day to be fixed by Proclamation. 11 December 2024 However, if the provisions do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the first day of the first calendar month to start after the end of that period. (F2024N01129) Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act. (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act. 3 Object The object of this Act is to: (a) promote orderly and positive economic transformation as the world decarbonises; and (b) facilitate the achievement of Australia's greenhouse gas emissions reduction targets; and (c) ensure Australia's regions, communities and workers are supported to manage the impacts, and share in the benefits, of Australia's transition to a net zero emissions economy. 4 Simplified outline of this Act This Act establishes the Net Zero Economy Authority. The Authority's functions are directed at promoting orderly and positive economic transformation as Australia transitions to a net zero emissions economy. These functions include: (a) consulting and cooperating with persons, organisations and governments to support Australia's transition to a net zero emissions economy; and (b) facilitating participation and investment in net zero transformation initiatives; and (c) supporting workers in emissions‑intensive industries to access new employment or improve their employment prospects. The Board is the accountable authority of the Net Zero Economy Authority and is responsible for determining the objectives, strategies and policies to be followed by the Authority and the CEO. The Minister may give general directions to the Board about the performance of the functions of the Authority and the Board. The Board members are appointed by the Minister and must have experience or expertise in particular fields. The CEO is responsible for the day‑to‑day administration of the Authority, and is to assist the Board in the performance of the Board's functions. The CEO is also responsible for the administration of Part 5 (Energy industry jobs plan). If a notice is given in relation to the closure of the whole, or a part, of a coal‑fired power station or a gas‑fired power station: (a) the CEO must undertake a community of interest process to identify closing employers, dependent employers and receiving employers; and (b) the CEO may apply to the Fair Work Commission for a community of interest determination by the Commission; and (c) closing employers and dependent employers specified in the determination are subject to obligations that are connected with facilitating transition employees of the employers to find other employment. The staff of the Authority must be persons engaged under the Public Service Act 1999. The Board must establish a Stakeholder Panel with representatives from a range of fields to provide non‑binding advice and information to the Board. The Board may also engage consultants, and make arrangements for the Authority to be assisted by certain other persons. This Act also deals with miscellaneous matters, including information sharing, delegations, review of this Act and the power to make rules. 5 Definitions In this Act: associated entity has the meaning given by section 50AAA of the Corporations Act 2001. Australia, when used in a geographical sense, includes the external Territories. Australia's greenhouse gas emissions reduction targets means: (a) if: (i) Australia's current nationally determined contribution was communicated in accordance with Article 4 of the Paris Agreement in June 2022; and (ii) that nationally determined contribution has not been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement; the greenhouse gas emissions reduction targets set out in paragraphs 10(1)(a) and (b) of the Climate Change Act 2022; or (b) in any other case—the greenhouse gas emissions reduction targets included in: (i) Australia's current nationally determined contribution communicated in accordance with Article 4 of the Paris Agreement; or (ii) if that nationally determined contribution has been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement—that nationally determined contribution, as adjusted and in force from time to time. Authority means the Net Zero Economy Authority. Board means the Board of the Authority. Board member means a member of the Board, and includes the Chair. CEO means the Chief Executive Officer of the Authority. Chair means the Chair of the Board. civil penalty provision has the same meaning as in the Regulatory Powers Act. Climate Change Convention means the United Nations Framework Convention on Climate Change done at New York on 9 May 1992, as amended and in force for Australia from time to time. Note: The Convention is in Australian Treaty Series 1994 No. 2 ([1994] ATS 2) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au). closing employer has the meaning given by section 6. Commonwealth company has the same meaning as in the PGPA Act. Commonwealth entity has the same meaning as in the PGPA Act. community of interest determination means a determination made under subsection 57(2) (including as varied). community of interest process: see section 55. constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies. Covenant on Economic, Social and Cultural Rights means the International Covenant on Economic, Social and Cultural Rights done at New York on 16 December 1966, as amended and in force for Australia from time to time. Note: The Covenant is in Australian Treaty Series 1976 No. 5 ([1976] ATS 5) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au). dependent employer has the meaning given by section 6. employee organisation has the same meaning as in the Fair Work Act 2009. employer organisation has the same meaning as in the Fair Work Act 2009. Energy Industry Worker Redeployment Advisory Group means the Energy Industry Worker Redeployment Advisory Group established under section 63. enterprise agreement has the same meaning as in the Fair Work Act 2009. entrusted entity means: (a) a government entity (within the meaning of A New Tax System (Australian Business Number) Act 1999); or (b) a Commonwealth entity; or (c) the Australian Energy Market Operator Limited (ACN 072 010 327). Finance Minister means the Minister administering the PGPA Act. gas‑fired power station means a power station that generates electricity from natural gas. geographic area means an area specified in an instrument under section 8. ILO means the International Labour Organization. ILO Convention (No. 122) means the ILO Convention (No. 122) concerning Employment Policy done at Geneva on 9 July 1964, as amended and in force for Australia from time to time. Note: The Convention is in Australian Treaty Series 1970 No. 17 ([1970] ATS 17) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au). ILO Convention (No. 142) means ILO Convention (No. 142) concerning Vocational Guidance and Vocational Training in the Development of Human Resources done at Geneva on 23 June 1975, as amended and in force for Australia from time to time. Note: The Convention is in Australian Treaty Series 1986 No. 2 ([1986] ATS 2) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au). Indigenous person means: (a) a member of the Aboriginal race of Australia; or (b) a descendant of an Indigenous inhabitant of the Torres Strait Islands. Kyoto Protocol means the Kyoto Protocol to the United Nations Framework Convention on Climate Change done at Kyoto on 11 December 1997, as amended and in force for Australia from time to time. Note: The Protocol is in Australian Treaty Series 2008 No. 2 ([2008] ATS 2) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au). likely to prejudice national security: something is likely to prejudice national security if there is a real, and not merely a remote, possibility that it will prejudice national security. National Electricity Rules means: (a) the National Electricity Rules, as in force from time to time, made under the National Electricity Law set out in the Schedule to the National Electricity (South Australia) Act 1996 (SA); or (b) the Rules referred to in paragraph (a) as they apply as a law of another State; or (c) the Rules referred to in paragraph (a) as they apply as a law of a Territory; or (d) the Rules referred to in paragraph (a) as they apply as a law of the Commonwealth. national security has the same meaning as in the National Security Information (Criminal and Civil Proceedings) Act 2004. natural gas means a substance that: (a) is in a gaseous state at standard temperature and pressure; and (b) consists of naturally occurring hydrocarbons, or a naturally occurring mixture of hydrocarbons and non‑hydrocarbons, the principal constituent of which is methane; and (c) is suitable for consumption. national security information means information the publication of which is likely to prejudice national security. net zero transformation initiative means a project or initiative that will, or is reasonably likely to, facilitate, directly or indirectly, the achievement of Australia's greenhouse gas emissions reduction targets. paid work means work for financial gain or reward (whether as an employee, a self‑employed person or otherwise). Paris Agreement means the Paris Agreement done at Paris on 12 December 2015, as amended and in force for Australia from time to time. Note: Th Agreement is in Australian Treaty Series 2016 No. 24 ([2016] ATS 24) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au). participating employees, of a closing employer or a dependent employer, means those transition employees of the employer who have given an expression of interest to the employer in finding other employment. personal information has the same meaning as in the Privacy Act 1988. PGPA Act means the Public Governance, Performance and Accountability Act 2013. receiving employer has the meaning given by section 6. Regulatory Powers Act means the Regulatory Powers (Standard Provisions) Act 2014. rules means rules made under section 81. sensitive financial intelligence information means: (a) information given in compliance with subsection 41(2) of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006; or (b) information given in compliance with a notice under subsection 49(1) of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006. staff of the Authority means the persons referred to in subsection 51(1). Stakeholder Panel means the panel established by the Board under subsection 70(1). Statistical Area level 2 means a statistical area level 2 recognised by the Australian Bureau of Statistics. this Act includes the rules. transition employee, of a closing employer or a dependent employer, has the meaning given by section 7. trigger notice means the following: (a) a kind of notice specified in an instrument under subsection 9(1); (b) a particular notice specified in an instrument under subsection 9(2). trigger situation has the meaning given by section 55. 6 Closing employers, dependent employers and receiving employers Closing employer (1) An employer is a closing employer if the employer: (a) is a constitutional corporation; and (b) owns (whether alone or jointly) or operates (whether alone or jointly) one or more parts of a coal‑fired power station, or a gas‑fired power station, that is the subject of a trigger notice that has been given; whether or not the employer employs employees to perform work at the power station. (2) An employer is also a closing employer if: (a) the employer is a constitutional corporation; and (b) the employer is an associated entity of another constitutional corporation that owns (whether alone or jointly) or operates (whether alone or jointly) one or more parts of: (i) a coal‑fired power station that is the subject of a trigger notice that has been given; or (ii) a gas‑fired power station that is the subject of a trigger notice that has been given; and (c) either or both of the following apply: (i) the employer employs employees to perform work at the coal‑fired power station or gas‑fired power station; (ii) if subparagraph (b)(i) applies and the employer operates (whether alone or jointly) a coal mine where the coal is being, or is to be, supplied for use in generating electricity at the coal‑fired power station—the employer employs employees to perform work at the coal mine. Dependent employer (3) An employer is a dependent employer if the employer (the relevant employer): (a) is a constitutional corporation; and (b) has a commercial relationship with: (i) a closing employer within the meaning of subsection (1); or (ii) a closing employer within the meaning of subsection (2) where the closing employer employs employees to perform work at the power station concerned; and (c) will, or will be likely to, cease a substantial part of the business operations carried on by the relevant employer at the power station concerned, or in the same geographic area in which the power station concerned is located, as a direct result of the eventual closure of that power station. (4) An employer is also a dependent employer if: (a) the employer (the relevant employer) is a constitutional corporation; and (b) the relevant employer: (i) has a commercial relationship with another constitutional corporation that operates (whether alone or jointly) a coal mine; or (ii) has a commercial relationship with an associated entity of another constitutional corporation, where the other constitutional corporation operates (whether alone or jointly) a coal mine; or (iii) is an associated entity of another constitutional corporation, where the other constitutional corporation operates (whether alone or jointly) a coal mine; where: (iv) the coal from the coal mine is being, or is to be, supplied to a closing employer for use in generating electricity at the coal‑fired power station concerned; and (v) the other constitutional corporation will, or will be likely to, cease a substantial part of the business operations carried on by the other constitutional corporation in the same geographic area in which the coal‑fired power station concerned is located as a direct result of the eventual closure of that power station; and (c) the relevant employer employs employees to perform work in the business operations carried on at the coal mine. Receiving employer (5) An employer is a receiving employer if the employer: (a) is a constitutional corporation; and (b) has given an expression of interest to the CEO as mentioned in paragraph 55(1)(c) and has not withdrawn that expression of interest; and (c) is specified in a determination under subsection (6). (6) The CEO may, by written determination, specify one or more employers for the purposes of paragraph (5)(c). (7) The CEO must cause a copy of the determination (including as varied) to be published on the Authority's website. (8) A determination under subsection (6) is not a legislative instrument. (9) In deciding which employers to specify in a determination under subsection (6), the CEO must have regard to any guidelines made under subsection (10). (10) The CEO may, by notifiable instrument, make guidelines for the purposes of subsection (9). 7 Transition employees of closing employers or dependent employers Transition employees of closing employer (1) A transition employee, of a closing employer within the meaning of subsection 6(1), is the following: (a) an employee of the closing employer who is employed to perform work at the coal‑fired power station or gas‑fired power station concerned; (b) if the closing employer also operates (whether alone or jointly) a coal mine where the coal is being, or is to be, supplied for use in generating electricity at the coal‑fired power station concerned—an employee of the closing employer who is employed to perform work at the coal mine. (2) A transition employee, of a closing employer within the meaning of subsection 6(2), is the following: (a) an employee of the closing employer who is employed to perform work at the coal‑fired power station or gas‑fired power station concerned; (b) an employee of the closing employer who is employed to perform work at the coal mine mentioned in subparagraph 6(2)(c)(ii). Transition employees of dependent employer (3) A transition employee, of a dependent employer within the meaning of subsection 6(3), is an employee of the dependent employer who is employed to perform work in the business operations that will, or will be likely to, cease as mentioned in paragraph 6(3)(c). (4) A transition employee, of a dependent employer within the meaning of subsection 6(4), is an employee of the dependent employer who is employed to perform work in the business operations carried on at the coal mine mentioned in paragraph 6(4)(c). 8 Geographic area (1) The CEO may, by notifiable instrument, specify one or more areas for the purposes of the definition of geographic area in section 5. (2) Without limiting subsection (1), an area specified by the CEO may consist of: (a) a single Statistical Area level 2; or (b) 2 or more Statistical Areas level 2. (3) A reference in an instrument under this section to a Statistical Area level 2 is a reference to the Statistical Area level 2 as in effect from time to time. 9 Trigger notice (1) The CEO may, by notifiable instrument, specify a kind of notice for the purposes of paragraph (a) of the definition of trigger notice in section 5. The CEO must be satisfied that the kind of notice relates to the closure of the whole, or a part, of a coal‑fired power station or a gas‑fired power station. (2) The CEO may, by notifiable instrument, specify a particular notice for the purposes of paragraph (b) of the definition of trigger notice in section 5. The CEO must be satisfied that the particular notice relates to the closure of the whole, or a part, of a coal‑fired power station or a gas‑fired power station. (3) Without limiting subsection (1) or (2), a kind of notice specified under subsection (1), or a particular notice specified under subsection (2), may be: (a) a notice given under a provision of the National Electricity Rules; or (b) a notice given under a provision of a law of Western Australia. (4) A kind of notice specified under subsection (1), or a particular notice specified under subsection (2), does not need to be a notice under a law of the Commonwealth, a State or a Territory. 10 Extension to external Territories This Act extends to the external Territories. 11 Extension to exclusive economic zone and continental shelf This Act extends to a matter relating to the exercise of Australia's sovereign rights in the exclusive economic zone or the continental shelf. 12 Application of this Act outside Australia This Act applies both within and outside Australia. Part 2—Net Zero Economy Authority Division 1—Preliminary 13 Simplified outline of this Part This Part establishes the Net Zero Economy Authority. The Authority consists of the Board, the CEO and the staff of the Authority. The Authority's functions include: (a) consulting and cooperating with persons, organisations and governments to support Australia's transition to a net zero emissions economy; and (b) facilitating public and private sector participation and investment in net zero transformation initiatives, including referring matters to specialist investment vehicles and other entities; and (c) supporting workers in emissions‑intensive industries to access new employment or improve their employment prospects; and (d) supporting and delivering educational and promotional initiatives to promote an understanding of, and encourage participation in, Australia's transition to a net zero emissions economy. The Authority may perform its functions within and outside Australia. Division 2—Establishment and functions of the Authority 14 Establishment of the Authority (1) The Net Zero Economy Authority is established by this section. Note: The Authority does not have a legal identity separate from the Commonwealth. (2) For the purposes of the finance law (within the meaning of the PGPA Act): (a) the Authority is a listed entity; and (b) the Board is the accountable authority of the Authority; and (c) the following persons are officials of the Authority: (i) the Board members; (ii) the CEO; (iii) the staff of the Authority; (iv) persons whose services are made available to the Authority under subsection 52(1); and (d) the purposes of the Authority include: (i) the functions of the Authority referred to in section 16; and (ii) the functions of the Board referred to in section 19; and (iii) the functions of the CEO referred to in section 40. 15 Constitution of the Authority The Authority consists of: (a) the Board; and (b) the CEO; and (c) the staff of the Authority. 16 Functions of the Authority (1) The Authority has the following functions: (a) to: (i) promote coordination and consistency in the design and implementation of Australian government policies, programs and plans; and (ii) consult and cooperate with other persons, organisations and governments; and (iii) provide reports, advice and recommendations to the Minister; to facilitate the achievement of Australia's greenhouse gas emissions reduction targets and support Australia's transition to a net zero emissions economy; (b) to facilitate public and private sector participation and investment in greenhouse gas emissions reduction and net zero transformation initiatives in Australia, including, but not limited to, referring matters to one or more of the entities mentioned in subsection (3); (c) to support workers in emissions‑intensive industries who are, or will be, affected by Australia's transition to a net zero emissions economy: (i) to access new employment or other opportunities; or (ii) to acquire skills to improve their employment prospects; including through the provision of funding or grants to those workers or to employers of those workers; (d) to support Indigenous persons to participate in, and benefit from, Australia's transition to a net zero emissions economy; (e) to encourage, support, develop and deliver educational and promotional initiatives for the purpose of promoting an understanding of, and enabling participation in, Australia's transition to a net zero emissions economy; (f) any other functions conferred on the Authority by this Act or any other law of the Commonwealth; (g) to do anything incidental or conducive to the performance of the above functions. Note 1: Paragraphs (a), (b) and (e) are subject to subsection (4), and paragraph (c) is subject to subsection (5). Note 2: The CEO administers Part 5 (Energy industry jobs plan). Any objectives, strategies or policies determined by the Board in respect of Part 5 must be of a general nature only (see subsection 19(3)). The Board must not give a direction to the CEO in respect of Part 5 (see subsection 41(2). (2) In performing the Authority's functions, the Authority should prioritise communities, regions, industries and workers that are, or will be, significantly affected by Australia's transition to a net zero emissions economy. (3) For the purposes of paragraph (1)(b), the entities are the following: (a) the Clean Energy Finance Corporation; (b) the Northern Australia Infrastructure Facility; (c) the Regional Investment Corporation; (d) the National Reconstruction Fund Corporation; (e) the Export Finance and Insurance Corporation; (f) the Australian Renewable Energy Agency; (g) Housing Australia. Constitutional basis (4) The Authority may perform the Authority's functions under paragraphs (1)(a), (b) and (e) only: (a) with respect to the executive power of the Commonwealth; or (b) to give effect to Australia's obligations under the following: (i) paragraphs (b) and (c) of Article 4.1, and paragraph (a) of Article 4.2, of the Climate Change Convention; (ii) paragraphs (b) and (c) of Article 10 of the Kyoto Protocol; (iii) Articles 4.2 and 10.2 of the Paris Agreement. (5) The Authority may perform the Authority's function under paragraph (1)(c) only: (a) to give effect to Australia's obligations under the following: (i) Articles 1 and 2 of ILO Convention (No. 122); (ii) Articles 1, 2 and 4 of ILO Convention (No. 142); (iii) Article 6(2) of the Covenant on Economic, Social and Cultural Rights; and (b) with respect to the provision of unemployment benefits. Other matters (6) The Authority has power to do all things necessary or convenient to be done for or in connection with the performance of the Authority's functions. (7) The Authority may perform the Authority's functions both within and outside Australia. (8) The Authority is to act in accordance with the objectives, strategies and policies determined by the Board. Part 3—Board of the Authority Division 1—Preliminary 17 Simplified outline of this Part This Part establishes the Board of the Authority. The Board's functions include determining objectives, strategies and policies to be followed by the Authority and the CEO. An objective, strategy or policy in respect of Part 5 (Energy industry jobs plan) must be of a general nature only. The Board consists of the Chair and up to 8 other members. Board members, including the Chair, are to be appointed by the Minister and must have experience or expertise in particular fields. The Minister may give directions to the Board. This Part also deals with the terms and conditions of appointment of Board members, and meetings of the Board. Division 2—Establishment and functions of the Board 18 Establishment of the Board The Board of the Net Zero Economy Authority is established by this section. 19 Functions of the Board (1) The functions of the Board are: (a) to ensure the proper, efficient and effective performance of the functions of the Authority and the CEO; and (b) subject to subsection (3), to determine the objectives, strategies and policies to be followed by the Authority and the CEO in the performance of their respective functions; and (c) to ensure the CEO complies with requests made by the Minister under section 72; and (d) any other functions conferred on the Board by this Act or any other law of the Commonwealth; and (e) to do anything incidental or conducive to the performance of any of the above functions. Note: For the purposes of paragraph (d), an example of a function conferred on the Board under this Act is the function of recommending a person to be appointed as CEO (see paragraph 42(1)(b)). (2) The Board has power to do all things necessary or convenient to be done for or in connection with the performance of the Board's functions. (3) Any objective, strategy or policy determined by the Board under paragraph (1)(b) in respect of Part 5 (Energy industry jobs plan) must be of a general nature only. (4) If an objective, strategy or policy mentioned in paragraph (1)(b) is in writing, it is not a legislative instrument. 20 Minister may give directions to the Board (1) The Minister may, by legislative instrument, give written directions to the Board about: (a) the performance of the Board's functions, or the exercise of the Board's powers; or (b) the performance of the Authority's functions, or the exercise of the Authority's powers. Note: Section 42 (disallowance) and Part 4 of Chapter 3 (sunsetting) of the Legislation Act 2003 do not apply to the directions (see regulations made for the purposes of paragraphs 44(2)(b) and 54(2)(b) of that Act). (2) A direction under subsection (1) must be of a general nature only. (3) The Board must comply with a direction under subsection (1). (4) Subsection (3) does not apply to the extent that a direction relates to the Board's performance of functions, or exercise of powers, under the PGPA Act in relation to the Authority. Division 3—Board members 21 Membership (1) The Board consists of the following members: (a) a Chair; (b) at least 6, and not more than 8, other members. (2) The performance of the functions or the exercise of the powers of the Board is not affected by reason only of the number of members falling below 7 for a period of not more than 3 months. 22 Appointment of Board members (1) The Board members are to be appointed by the Minister by written instrument. Note: The Chair is a Board member (see the definition of Board member in section 5). (2) The Board members are to be appointed on a part‑time basis. (3) A Board member holds office for the period specified in the instrument of appointment. The period must not exceed 5 years. Note: Board members may be reappointed (see section 33AA of the Acts Interpretation Act 1901). 23 Eligibility for appointment as Board member (1) A person must not be appointed as a Board member under section 22 unless the Minister is satisfied that the appointment of the person would ensure that: (a) the requirements relating to the composition of the Board set out in subsection (2) of this section are satisfied; and (b) the Board members collectively have an appropriate balance of: (i) expertise or experience; and (ii) professional credibility and significant standing; in the fields mentioned in subsection (3) of this section. (2) The Board must be comprised of: (a) as Chair—a person with expertise or experience, professional credibility and significant standing in any of the fields mentioned in subsection (3); and (b) 2 other Board members with expertise or experience, professional credibility and significant standing in the field mentioned in paragraph (3)(a); and (c) 2 other Board members with expertise or experience, professional credibility and significant standing in the field mentioned in paragraph (3)(b); and (d) 1 other Board member with expertise or experience, professional credibility and significant standing in the field mentioned in paragraph (3)(h); and (da) 1 other Board member with expertise or experience, professional credibility and significant standing in any of the fields mentioned in paragraph (3)(i); and (e) up to 2 other Board members with expertise or experience, professional credibility and significant standing in any of the fields mentioned in subsection (3). Paragraphs (b), (c), (d) and (da) do not by implication limit paragraph (a) or (e). Note: The maximum number of Board members, including the Chair, is 9 (see subsection 21(1)). (3) For the purposes of paragraph (1)(b) and subsection (2), the fields are the following: (a) trade union movement; (b) business, industry, finance or investment; (c) industrial relations or labour market adjustment; (d) economics; (e) greenhouse gas emissions reduction pathways, technologies or policy; (f) climate change policy; (g) energy markets; (h) regional development; (i) Indigenous advocacy or community leadership; (j) public or corporate governance; (k) law. Note: For the purposes of paragraph (i), Indigenous community leadership includes being an Elder. (4) The following persons are not eligible for appointment as a Board member: (a) an employee of the Commonwealth; (b) the holder of a full‑time office under a law of the Commonwealth. Note: This means the CEO is not eligible to be appointed as a Board member. (5) The performance of the functions and the exercise of the powers of the Board are not affected merely because its membership is not as required by subsection (2), unless a continuous period of 3 months has elapsed since its membership ceased to be as so required. 24 Appointment of acting Chair or Board member (1) The Minister may, by written instrument, appoint a person to act as the Chair: (a) during a vacancy in the office of the Chair, whether or not an appointment has previously been made to the office; or (b) during any period, or during all periods, when the Chair: (i) is absent from duty or from Australia; or (ii) is, for any reason, unable to perform the duties of the office of the Chair. Note: Sections 33AB and 33A of the Acts Interpretation Act 1901 have rules that apply to acting appointments. (2) The Minister may, by written instrument, appoint a person to act as a Board member (other than the Chair): (a) during a vacancy in the office of a Board member (other than the Chair), whether or not an appointment has previously been made to the office; or (b) during any period, or during all periods, when a Board member (other than the Chair): (i) is absent from duty or from Australia; or (ii) is, for any reason, unable to perform the duties of the office of a Board member. Note: Sections 33AB and 33A of the Acts Interpretation Act 1901 have rules that apply to acting appointments. (3) A person must not be appointed to act as: (a) the Chair; or (b) a Board member (other than the Chair); unless the Minister is satisfied that the matters in subsection 23(1) are satisfied in relation to the appointment to act. Note: Subsection 23(1) sets out requirements in relation to the experience or expertise of Board members and the overall composition of the Board. 25 Remuneration of Board members (1) A Board member is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the Board member is to be paid the remuneration that is prescribed by the rules. (2) A Board member is to be paid the allowances that are prescribed by the rules. (3) This section has effect subject to the Remuneration Tribunal Act 1973. 26 Disclosure of interests by Board members (1) A disclosure by a Board member under section 29 of the PGPA Act (which deals with the duty to disclose interests) must be made to the Minister. (2) Subsection (1) applies in addition to any rules made for the purposes of that section. (3) For the purposes of this Act and the PGPA Act, a Board member is taken not to have complied with section 29 of the PGPA Act if the Board member does not comply with subsection (1) of this section. 27 Leave of absence of Board members The Chair (1) The Minister may grant leave of absence to the Chair on the terms and conditions that the Minister determines. Other Board members (2) The Chair may grant leave of absence to any other Board member on the terms and conditions that the Chair determines. (3) The Chair must notify the Minister if the Chair grants a Board member leave of absence for a period that exceeds 3 months. 28 Other terms and conditions of Board members A Board member holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Minister. 29 Resignation of Board members (1) A Board member may resign the Board member's appointment by giving the Minister a written resignation. (2) The resignation takes effect on the day it is received by the Minister or, if a later day is specified in the resignation, on that later day. 30 Termination of appointment of Board members (1) The Minister may terminate the appointment of a Board member: (a) for misbehaviour; or (b) if the Board member is unable to perform the duties of the Board member's office because of physical or mental incapacity. (2) The Minister may terminate the appointment of a Board member if: (a) the Board member: (i) becomes bankrupt; or (ii) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or (iii) compounds with the Board member's creditors; or (iv) makes an assignment of the Board member's remuneration for the benefit of the Board member's creditors; or (b) the Board member is absent, except on leave of absence, from 2 consecutive meetings of the Board; or (c) the Board member fails, without reasonable excuse, to comply with section 29 of the PGPA Act (which deals with the duty to disclose interests) or rules made for the purposes of that section; or (d) a majority of the Board members recommend that the Minister terminate the appointment. Division 4—Meetings of the Board 31 Convening meetings (1) The Board must hold such meetings as are necessary for the efficient performance of its functions. (2) The Chair: (a) may convene a meeting at any time; and (b) must convene at least 6 meetings each calendar year; and (c) must convene a meeting within 30 days after receiving a written request to do so from another Board member. 32 Presiding at meetings (1) The Chair must preside at all meetings at which the Chair is present. (2) If the Chair is not present at a meeting, the other Board members present must appoint one of themselves to preside. 33 Quorum (1) At a meeting of the Board, a quorum is constituted by a majority of Board members. (2) However, if: (a) a Board member is required by rules made for the purposes of section 29 of the PGPA Act not to be present during the deliberations, or not to take part in any decision, of the Board with respect to a particular matter; and (b) when the Board member leaves the meeting concerned, there is no longer a quorum present; then the remaining Board members at the meeting constitute a quorum for the purpose of any deliberation or decision at that meeting with respect to that matter. 34 Voting at meetings (1) A question arising at a meeting of the Board is to be determined by a majority of the votes of the Board members present and voting. (2) The person presiding at a meeting of the Board has a deliberative vote and, in the event of an equality of votes, a casting vote. 35 Conduct of meetings The Board may, subject to this Division, regulate proceedings at its meetings as it considers appropriate. Note: Section 33B of the Acts Interpretation Act 1901 provides for participation in meetings by telephone etc. 36 Minutes The Board must keep minutes of its meetings. 37 Decisions without meetings (1) The Board is taken to have made a decision at a meeting if: (a) without meeting, a majority of the Board members entitled to vote on the proposed decision indicate agreement with the decision; and (b) that agreement is indicated in accordance with the method determined by the Board under subsection (2); and (c) all the Board members were informed of the proposed decision, or reasonable efforts were made to inform all the Board members of the proposed decision. (2) Subsection (1) applies only if the Board: (a) has determined that it may make decisions of that kind without meeting; and (b) has determined the method by which Board members are to indicate agreement with proposed decisions. (3) For the purposes of paragraph (1)(a), a Board member is not entitled to vote on a proposed decision if the Board member would not have been entitled to vote on that proposal if the matter had been considered at a meeting of the Board. (4) The Board must keep a record of decisions made in accordance with this section. Part 4—Chief Executive Officer and staff etc. of the Authority Division 1—Preliminary 38 Simplified outline of this Part There is to be a Chief Executive Officer of the Authority. The CEO is responsible for the day‑to‑day administration of the Authority, and is to assist the Board in the performance of the Board's functions. The CEO is responsible for the administration of Part 5 (Energy industry jobs plan). The CEO is subject to direction by the Board, except in relation to Part 5 (Energy industry jobs plan). This Part deals with the terms and conditions of appointment of the CEO and also makes provision for staff of the Authority, who must be persons engaged under the Public Service Act 1999. The Authority may be assisted by certain other persons, and the Board may engage consultants to assist in the performance of the Authority's functions. Division 2—Chief Executive Officer 39 The Chief Executive Officer There is to be a Chief Executive Officer of the Net Zero Economy Authority. 40 CEO's functions (1) The CEO is responsible for the day‑to‑day administration of the Authority. (2) The CEO also has the following functions: (a) to assist the Board in the performance of the Board's functions; (b) to administer Part 5 (Energy industry jobs plan); (c) any other functions conferred on the CEO by this Act or any other law of the Commonwealth; (d) to do anything incidental or conducive to the performance of any of the above functions. (3) The CEO is to act in accordance with the objectives, strategies and policies determined by the Board under paragraph 19(1)(b). Note: Objectives, strategies and policies determined by the Board in relation to Part 5 (Energy industry jobs plan) must be of a general nature only (see subsection 19(3)). (4) The CEO has power to do all things necessary or convenient to be done for or in connection with the performance of the CEO's functions. 41 CEO to act in accordance with directions of the Board (1) Subject to subsection (2), the Board may give written directions to the CEO about: (a) the performance of the CEO's functions or the exercise of the CEO's powers; or (b) the performance of the Authority's functions or the exercise of the Authority's powers. (2) The Board must not give a direction under subsection (1) in respect of Part 5 (Energy industry jobs plan). (3) The CEO must comply with a direction under subsection (1). (4) Subsection (3) does not apply to the extent that the direction relates to the CEO's performance of functions or exercise of powers under the Public Service Act 1999 in relation to the Authority. (5) A direction under subsection (1) is not a legislative instrument. 42 Appointment of CEO (1) The CEO is to be appointed: (a) by the Minister; and (b) on the recommendation of the Board. (2) The CEO is to be appointed: (a) by written instrument; and (b) on a full‑time basis. (3) The CEO holds office for the period specified in the instrument of appointment. The period must not exceed 5 years. Note: The CEO may be reappointed (see section 33AA of the Acts Interpretation Act 1901). (4) A Board member is not eligible to be appointed as the CEO. 43 Appointment of acting CEO (1) The Minister may, by written instrument, appoint a person to act as the CEO: (a) during a vacancy in the office of the CEO, whether or not an appointment has previously been made to the office; or (b) during any period, or during all periods, when the CEO: (i) is absent from duty or from Australia; or (ii) is, for any reason, unable to perform the duties of the office. Note: Sections 33AB and 33A of the Acts Interpretation Act 1901 have rules that apply to acting appointments. (2) A Board member is not eligible to be appointed to act as the CEO. 44 Remuneration of CEO (1) The CEO is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the CEO is to be paid the remuneration that is prescribed by the rules. (2) The CEO is to be paid the allowances that are prescribed by the rules. (3) This section has effect subject to the Remuneration Tribunal Act 1973. 45 Other paid work of CEO The CEO must not engage in paid work outside the duties of the CEO without the Minister's approval. 46 Disclosure of interests by CEO (1) A disclosure by the CEO under section 29 of the PGPA Act (which deals with the duty to disclose interests) must be made to the Minister. (2) Subsection (1) applies in addition to any rules made for the purposes of that section. (3) For the purposes of this Act and the PGPA Act, the CEO is taken not to have complied with section 29 of the PGPA Act if the CEO does not comply with subsection (1) of this section. 47 Leave of absence of CEO (1) The CEO has the recreation leave entitlements that are determined by the Remuneration Tribunal. (2) The Minister may grant the CEO leave of absence, other than recreation leave, on the terms and conditions as to remuneration or otherwise that the Minister determines. 48 Other terms and conditions of CEO The CEO holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Minister. 49 Resignation of CEO (1) The CEO may resign the CEO's appointment by giving the Minister a written resignation. (2) The resignation takes effect on the day it is received by the Minister or, if a later day is specified in the resignation, on that later day. 50 Termination of appointment of CEO (1) The Minister may terminate the appointment of the CEO: (a) for misbehaviour; or (b) if the CEO is unable to perform the duties of the CEO's office because of physical or mental incapacity. (2) Before the Minister terminates the appointment of the CEO under subsection (1), the Minister must consult the Board. (3) The Minister may terminate the appointment of the CEO if: (a) the CEO: (i) becomes bankrupt; or (ii) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or (iii) compounds with the CEO's creditors; or (iv) makes an assignment of the CEO's remuneration for the benefit of the CEO's creditors; or (b) the CEO is absent, except on leave of absence, for 14 consecutive days or for 28 days in any 12 months; or (c) the CEO engages, except with the Minister's approval, in paid work outside the duties of the CEO's office (see section 45); or (d) the CEO fails, without reasonable excuse, to comply with section 29 of the PGPA Act (which deals with the duty to disclose interests) or rules made for the purposes of that section; or (e) a majority of the Board members recommend that the Minister terminate the appointment. Division 3—Staff etc. of the Authority 51 Staff (1) The staff of the Authority must be persons engaged under the Public Service Act 1999. (2) For the purposes of the Public Service Act 1999: (a) the CEO and the APS employees assisting the CEO together constitute a Statutory Agency; and (b) the CEO is the Head of that Statutory Agency. 52 Persons assisting the Authority (1) The Authority may be assisted by: (a) officers or employees of another Commonwealth entity, or a Commonwealth company, whose services are made available to the Authority in connection with the performance of the Authority's functions; and (b) persons whose services are made available under arrangements made under subsection (2). (2) The Board may, on behalf of the Commonwealth, make an arrangement with the appropriate authority or officer of: (a) a State or Territory government; or (b) a State or Territory government authority; under which the government or authority makes officers or employees available to the Authority to perform services in connection with the performance of any of the Authority's functions. (3) An arrangement under subsection (2) may provide for the Commonwealth to reimburse a State or Territory with respect to the services of a person to whom the arrangement relates. (4) When performing services for the Authority under this section, a person is subject to the directions of the Board. 53 Consultants (1) The Board may, on behalf of the Commonwealth, engage as consultants persons having suitable qualifications and experience to assist in the performance of the Authority's functions or the exercise of the Authority's powers. (2) The engagement of a consultant must be by written agreement. (3) The terms and conditions of engagement are those that the Board determines in writing. Part 5—Energy industry jobs plan Division 1—Preliminary 54 Simplified outline of this Part A notice given in relation to the closure of the whole, or a part, of a coal‑fired power station or a gas‑fired power station triggers the operation of this Part. For the purposes of being able to make an application to the Fair Work Commission, the CEO must undertake a community of interest process to identify: (a) closing employers, dependent employers and receiving employers; and (b) the number of transition employees of the closing employers or dependent employers and the kind of jobs performed by those employees; and (c) an estimate of the number of those transition employees who are, or who will become, participating employees of the closing employers or dependent employers. If the CEO makes an application to the Fair Work Commission, the Commission must make a community of interest determination that specifies closing employers and dependent employers. A closing employer or dependent employer specified in the determination is subject to obligations of a certain kind that are connected with facilitating transition employees of the employer to find other employment. If: (a) employee organisations and a closing employer or dependent employer jointly agree on the specific actions to be taken by the employer and they make a joint application to the Fair Work Commission; or (b) employee organisations and a closing employer or dependent employer cannot agree on the specific actions to be taken by the employer and any of those organisations or the employer makes an application to the Fair Work Commission; the Commission may make a determination setting out the specific actions to be taken by the employer. The Energy Industry Worker Redeployment Advisory Group is established, which has a right to be heard in relation to various applications made to the Fair Work Commission. Various persons may apply to the Fair Work Commission for an order by the Commission in relation to the actions to be taken by a closing employer or dependent employer. There are certain civil penalty provisions that apply to a closing employer or dependent employer. If an employer contravenes a civil penalty provision, a court may order the payment of a civil penalty under the Regulatory Powers Act and may order the awarding of compensation for loss that a person has suffered because of the contravention. A court can grant an injunction restraining a person from contravening a provision of this Part or requiring a person to comply with a provision of this Part. Division 2—Community of interest process and community of interest determinations 55 CEO to undertake community of interest process after giving of trigger notice (1) For the purpose of being able to make an application under section 56, the CEO must, if a trigger situation exists, undertake a process (a community of interest process) of: (a) identifying employers as closing employers; and (b) identifying employers as dependent employers; and (c) seeking expressions of interest from employers that are constitutional corporations in being employers that may be able to offer employment to transition employees of a closing employer or dependent employer; and (d) identifying the number of transition employees of the closing employers or dependent employers and the kind of jobs performed by those employees and obtaining details relating to the employment of those employees; and (e) identifying an estimate of the number of those transition employees who are, or who will become, participating employees of the closing employers or dependent employers. (2) A trigger situation exists if: (a) the CEO becomes aware of the giving of a kind of notice covered by paragraph (a) of the definition of trigger notice in section 5; or (b) the CEO, under subsection 9(2), specifies a particular notice for the purposes of paragraph (b) of the definition of trigger notice in section 5. Note: A trigger notice is a notice in relation to the closure of the whole, or a part, of a coal‑fired power station or a gas‑fired power station. Consultation (3) As part of the community of interest process, the CEO must seek information from employers mentioned in paragraph (1)(c) about the number, nature and location of jobs, and skills required for the jobs, that those employers may be able to offer to transition employees of the closing employers or dependent employers. (4) As part of the community of interest process, the CEO must consult each employee organisation that is entitled to represent the industrial interests of one or more of the transition employees referred to in paragraph (1)(d). (5) As part of the community of interest process, the CEO must consult: (a) employers covered by paragraph (1)(a); and (b) employers covered by paragraph (1)(b); and (c) each employer organisation that is entitled to represent the industrial interests of an employer covered by paragraph (1)(a) or (b). (6) As part of the community of interest process, the CEO must undertake such community consultation as the CEO considers appropriate. (7) Subsections (3) to (6) do not limit subsection (1). 56 CEO may apply to Fair Work Commission for a community of interest determination (1) After completing the community of interest process, the CEO may apply, in writing, to the Fair Work Commission for a determination by the Commission under section 57. Timing of application (2) The CEO must make any application: (a) if the trigger notice is given at least 42 months before the scheduled closure of the whole, or a part, of the coal‑fired power station or gas‑fired power station concerned—at least 2 years before that scheduled closure; or (b) otherwise—as soon as practicable after completing the community of interest process. Contents of application (3) The CEO must specify in the application: (a) in relation to each closing employer identified by the CEO—the name of that employer if the CEO is satisfied that it is reasonable in the circumstances to do so; and (b) in relation to each dependent employer identified by the CEO—the name of that employer if the CEO is satisfied that it is reasonable in the circumstances to do so; and (c) for each closing employer or dependent employer specified under paragraph (a) or (b)—details of the total number of transition employees of the employer and the total number of each kind of job of those employees; and (d) for each closing employer or dependent employer specified under paragraph (a) or (b)—the estimate of the number of those transition employees who are, or who will become, participating employees of the employer; and (e) details of the community of interest process undertaken by the CEO; and (f) details of the basis on which the CEO specified a closing employer under paragraph (a) or a dependent employer under paragraph (b). Matters to which the CEO must have regard (4) In considering whether to make an application under subsection (1) or to specify an employer under paragraph (3)(a) or (b), the CEO must have regard to the following: (a) the object of this Act; (b) the existing supports that are available to facilitate transition employees of closing employers or dependent employers to find other employment, including supports provided under relevant enterprise agreements or other industrial instruments; (c) the number of transition employees of those employers; (d) the estimate of the number of those transition employees who are, or who will become, participating employees of those employers; (e) the capacity of those employers to redeploy those transition employees in other business operations of those employers or in business operations of associated entities of those employers; (f) the capacity of other employers in the same geographic area in which the power station concerned is located to offer employment to those transition employees. (5) Subsection (4) does not limit the matters to which the CEO may have regard. CEO to notify employers (6) As soon as practicable after making the application, the CEO must inform each employer specified in the application of the following: (a) the making of the application; (b) the fact the employer is so specified. Application of Fair Work Act 2009 (7) Division 3 of Part 5‑1 of the Fair Work Act 2009 applies in relation to an application under this section in a corresponding way to the way in which it applies in relation to an application under that Act. Note: Subsection (7) has the effect, for example, that an application under this section could be dismissed under section 587 of that Act. (8) Subsection (7) does not, by implication, limit the application of any other provision of the Fair Work Act 2009 in relation to this Part. 57 Fair Work Commission to make community of interest determination Opportunity to be heard (1) The Fair Work Commission must ensure that the following have an adequate opportunity to be heard in relation to an application under section 56: (a) the CEO or an SES employee or acting SES employee of the Authority nominated by the CEO; (b) the Energy Industry Worker Redeployment Advisory Group; (c) each employer named in the application; (d) each employee organisation that is entitled to represent the industrial interests of one or more of the transition employees of an employer named in the application; (e) if such an employee organisation nominates one or more other employers as potential closing employers or dependent employers—each such employer; (f) each employer organisation that is entitled to represent the industrial interests of an employer covered by paragraph (c) or (e); (g) a transition employee of an employer covered by paragraph (c) or (e) if the transition employee has notified the Commission in writing that the transition employee wishes to be heard in relation to the application. Community of interest determination (2) The Fair Work Commission must make a written determination (a community of interest determination): (a) if the Commission is satisfied: (i) that one or more employers specified under paragraph 56(3)(a) or nominated under paragraph (1)(e) of this section are closing employers; and (ii) that it is reasonable in the circumstances to specify one or more of those employers in the determination; specifying one or more of those employers in the determination as closing employers; and (b) if the Commission is satisfied: (i) that one or more employers specified under paragraph 56(3)(b) or nominated under paragraph (1)(e) of this section are dependent employers; and (ii) that it is reasonable in the circumstances to specify one or