Electricity Infrastructure Investment Regulation 2021

Executive summary of update

• Effective date: 27 March 2026 This update introduces new functions for the Infrastructure Planner (Energy Corporation) to administer economic development payments for communities affected by renewable energy zones or projects, requiring specific guidelines. It also broadens the scope of beneficiaries for community and employment purpose fees under access schemes by removing restrictive definitions of “relevant local community” and “relevant employee.” These changes aim to enhance local economic development and community benefits, while requiring new internal processes for fund administration and guideline development. The update clarifies the meaning of “administer” within Part 7, reinforcing the comprehensive nature of these new and existing responsibilities.

Impacted parties

The Infrastructure Planner (Energy Corporation), project developers, and communities/persons within or affected by Renewable Energy Zones are most significantly impacted by this update.

Change Analysis

1. New Economic Development Function for Infrastructure Planner

• What is the new requirement? A new clause 42DA has been inserted, granting the Energy Corporation, when appointed as the infrastructure planner for priority network infrastructure projects or renewable energy zones, the function to administer payments for economic development in affected communities. This function requires the preparation of Minister-approved guidelines for fund administration, payment, and selection of programs and communities.
• What was the old rule? (New Obligation)
• Why does this matter? This introduces a significant new responsibility for the Energy Corporation, requiring the establishment of new governance frameworks, operational processes, and stakeholder engagement strategies to manage and disburse economic development funds. It creates a direct mechanism for broader community benefit sharing, potentially influencing project social license and regional economic outcomes.

2. Broadening of Community Purpose Fee Beneficiaries

• What is the new requirement? Clause 56(1) has been amended to refer to the “relevant community” instead of the “relevant local community” for the use of community purpose fees. Concurrently, the definition of “relevant local community” in Schedule 4 has been repealed.
• What was the old rule? Community purpose fees were specifically designated for the “relevant local community,” which was narrowly defined as the local community within the geographic area of the renewable energy zone.
• Why does this matter? This change broadens the potential beneficiaries of community purpose funds, allowing for a wider geographic or demographic scope. This requires a review of existing or planned community benefit programs to ensure inclusivity and may lead to increased demand for funding from a more diverse range of community groups.

3. Broadening of Employment Purpose Fee Beneficiaries

• What is the new requirement? Clause 57(1) has been amended to refer to “relevant persons” instead of “relevant employees” for the use of employment purpose fees. Concurrently, the definition of “relevant employee” in Schedule 4 has been repealed.
• What was the old rule? Employment purpose fees were specifically for “relevant employees,” defined as employees in the geographic area of the renewable energy zone affected by changes in electricity generation.
• Why does this matter? Similar to community purpose fees, this change expands the potential beneficiaries of employment purpose funds. Training, skills, and employment support programs may need to be adapted to cater to a broader group of individuals, not just those directly employed or affected by generation changes, potentially increasing the scope and cost of such programs.

4. Clarification of “Administer” Definition in Part 7

• What is the new requirement? A new definition for “administer” has been inserted in clause 39B (and Schedule 4), explicitly stating that for Part 7, “administer a payment includes (a) manage a payment, and (b) make a payment.” This also subtly impacts clause 42D(2)(b)(i) where “administer, manage and make payments” is simplified to “administer payments.”
• What was the old rule? (New Definition)
• Why does this matter? This new definition provides clarity and consistency regarding the scope of administrative functions for the Infrastructure Planner (Energy Corporation) within Part 7. It reinforces the comprehensive nature of the administrative responsibilities, particularly for the new economic development function and existing community/employment fee administration, ensuring a clear understanding of the required actions.

Corrective and preventive actions

• Legal:
  • Section 39B, 42DA, 56, 57, Schedule 4: Review all internal policies, contracts, and external communications related to community and employment benefit schemes to ensure alignment with the broadened definitions of “relevant community” and “relevant persons.”
  • Section 42DA: Draft new guidelines for the administration and payment of economic development funds, including selection criteria for programs and communities, for Minister approval by 27 September 2026 (6 months from effective date).
  • Section 42D(2)(b)(i): Update internal documentation to reflect the clarified meaning of “administer payments” as per the new definition in clause 39B.
• Project Management:
  • Section 42DA: Incorporate the new economic development function and associated guideline development into project planning for all priority network infrastructure and REZ projects commencing after 27 March 2026.
  • Section 56, 57: Review and update stakeholder engagement plans for projects to reflect the broader scope of community and employment beneficiaries for access scheme fees by 27 June 2026.
• Community & Social:
  • Section 42DA: Develop strategies for identifying and engaging with communities affected by REZ and priority network infrastructure projects for economic development initiatives by 27 June 2026.
  • Section 56, 57: Re-evaluate existing community and employment benefit programs to ensure they are inclusive of the broader “relevant community” and “relevant persons” as per the updated clauses by 27 June 2026.
• Government & Regulatory Affairs:
  • Section 42DA: Facilitate the Minister’s approval process for the new economic development guidelines, aiming for approval by 27 September 2026.
  • Section 56, 57: Monitor regulatory interpretations and industry practices regarding the broadened scope of community and employment benefits.
• Finance:
  • Section 42DA: Establish new financial tracking and reporting mechanisms for economic development payments administered by the Infrastructure Planner by 27 June 2026.
  • Section 56, 57: Review budget allocations and financial models for community and employment benefit programs to account for potentially broader beneficiary groups by 27 June 2026.
• Human Resources:
  • Section 57: Review and update any employment support programs to ensure they cater to the broader definition of “relevant persons” affected by electricity generation changes by 27 June 2026.

Risks & opportunities assessment

Risks:

• Operational Complexity: The new economic development function for the Infrastructure Planner introduces significant administrative and governance complexity, requiring robust internal systems and skilled personnel to manage funds and programs effectively.
• Increased Stakeholder Expectations: Broadening the scope of community and employment benefit recipients may lead to increased expectations and potential disputes from a wider array of groups, requiring enhanced communication and transparent allocation processes.
• Financial Mismanagement: Without clear, Minister-approved guidelines for the new economic development fund, there is a risk of misallocation or inefficient use of funds, potentially undermining public trust and project viability.

Opportunities:

• Enhanced Social License: The new economic development function and broadened benefit schemes offer a significant opportunity to build stronger community relationships and secure greater social license for renewable energy projects, potentially reducing project delays and opposition.
• Regional Economic Growth: Directing funds towards economic development in affected communities can foster local job creation, skills development, and diversification, aligning with broader regional development goals and creating long-term value.
• Improved Reputation: Proactive and transparent administration of these expanded benefit schemes can enhance Simpoli’s reputation as a responsible and community-focused energy infrastructure developer and operator.