On Monday, November 18, Federal Member for Nicholls Sam Birrell introduced the Requiring Energy Operators to Obtain Rehabilitation Bonds Bill 2024 in the House of Representatives.
This legislation aims to hold energy companies accountable for the environmental impacts of their activities.
“This bill addresses a critical gap in current renewable energy policy,” Mr Birrell said.
“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.”
The bill seeks to protect landholders, particularly farmers, from unexpected rehabilitation costs.
Recent estimates indicate that the cost of decommissioning a single wind turbine ranges from $400,000 to $600,000, which raises concerns for landowners hosting energy projects.
The legislation mandates that onshore wind and large-scale solar project developers obtain rehabilitation bonds that will cover future decommissioning costs and environmental restoration efforts.
Supporting the transition to cleaner energy sources, Mr Birrell highlighted the importance of responsible management.
“We must ensure that the environmental and financial impacts of these projects are properly managed throughout their entire lifecycle,” he said.
The proposed legislation requires project proponents to submit draft rehabilitation plans and complete rehabilitation liability assessments, similar to existing requirements for the mining sector.
“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 said.
“It’s about ensuring that the renewable energy sector operates responsibly and maintains its social license to operate.”
While some industry participants may view the bill as harmful to investment, Mr Birrell believes it will strengthen public trust in the renewable energy sector.
It is expected to ease the financial burden on energy consumers who currently subsidise these initiatives, promoting a more conscientious approach to renewable energy development in Australia.
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