Legislative and government information
CEFC Act
The CEFC Act establishes the Clean Energy Finance Corporation, sets out the organisation’s purpose and functions, and establishes arrangements for the Board, CEO and staff. The objective of the CEFC under the CEFC Act is “to facilitate increased flows of finance into the clean energy sector”. The main function of the CEFC is to invest, directly and indirectly, in clean energy technologies (the investment function).
The CEFC Act also specifies a number of other functions, including:
- Liaising with relevant individuals, businesses, agencies and State and Territory governments to facilitate the CEFC investment function
- Performance of any other functions conferred by the CEFC Act or any other Commonwealth law
- Anything incidental or conducive to the performance of the investment function or the other functions.
Clean energy technologies are broadly defined in the CEFC Act to be energy efficiency, renewable energy and low-emission technologies. The Act expressly excludes CEFC investment in carbon capture and storage, nuclear technology and nuclear power.
During 2021–22 there were no amendments to the CEFC enabling legislation. On 30 October 2019, the Australian Government announced its intention to amend the CEFC enabling legislation to provide for the creation of a $1 billion Grid Reliability Fund (GRF). On 27 August 2020, the Clean Energy Finance Corporation Amendment (Grid Reliability Fund) Bill 2020 was introduced into the Australian Parliament to give effect to the GRF. The Bill lapsed when the Parliament was prorogued on 11 April 2022 to facilitate the 2022 Federal Election.
Subsequent to the reporting period, on 13 September 2022 with the Climate Change Bill 2022 and Climate Change (Consequential Amendments) Bill 2022 receiving royal assent, the CEFC objective was amended to include “to facilitate the achievement of Australia’s greenhouse gas emissions reduction targets”.
Responsible and nominated Ministers
Under the CEFC Act, the CEFC has two responsible Ministers, who agree which is the nominated Minister with additional powers and functions under the CEFC Act. The change of Government at the 2022 Federal Election resulted in a change to the responsible Ministers during the reporting period.
| Responsible Ministers | |
|---|---|
| 1 July 2021 to 23 May 2022^ |
Senator the Hon Simon Birmingham The Hon Angus Taylor MP* |
| 23 May 2022 to 1 June 2022 |
The Hon Richard Marles MP Senator the Hon Katy Gallagher |
| From 1 June 2022 |
Senator the Hon Katy Gallagher The Hon Chris Bowen MP* |
* Nominated Minister.
^ On 26 August 2022, the Prime Minister, the Hon Anthony Albanese MP and the Attorney-General, the Hon Mark Dreyfus QC MP, announced the appointment of the Hon Virginia Bell AC to lead an Inquiry into the appointment of the former Prime Minister, the Hon Scott Morrison MP to multiple ministries. These include both the Finance and Industry Science Energy and Resources portfolios, and the inquiry specifically includes statutory bodies such as the CEFC. Full terms of reference are available at: https://www.ag.gov.au/about-us/publications/inquiry-multiple-ministerial-appointments.
Ministerial powers of direction
The CEFC Act is structured in such a way as to maximise operational independence, particularly with respect to investment decision-making.
Investment Mandate Directions
Ministerial powers to direct the CEFC Board are primarily limited to Investment Mandate Directions, issued by responsible Ministers under sub-section 64(1) of the CEFC Act. Mandate Directions provide instruction as to the policies to be pursued by the CEFC in performing its investment function, provided this does not have a purpose of directing the CEFC to make or not make a particular investment and is not inconsistent with the CEFC Act (including the object of the CEFC Act). The Clean Energy Finance Corporation Investment Mandate Direction 2020, which came into effect from 2 May 2020, remained in place throughout the 2021–22 reporting period.
CEFC Special Account directions
Ministers may also direct the CEFC to pay surplus funds to the CEFC Special Account. During the 2021–22 reporting period, the Hon Angus Taylor MP, as Minister for Industry, Energy and Emissions Reduction and Senator the Hon Simon Birmingham, as Minister for Finance, issued a direction as to managing Surplus Money in accordance with section 54 of the CEFC Act. This direction replaced the previous direction of similar effect (issued by the then responsible Ministers on 5 May 2016). Additional information about movements into and out of the Special Account can be found in Section 3 - Financial Information.
Government policy orders
The PGPA Act allows the Australian Government to issue directions to the CEFC by means of a Government Policy Order (GPO). No GPOs applied to the CEFC during 2021–22.
Statement of compliance
The CEFC had no instances of non-compliance with Ministerial Directions (including the Investment Mandate) or GPOs in the 2021–22 year.
Judicial decisions and parliamentary committees
The CEFC is not aware of any judicial decisions or decisions of administrative tribunals in 2021–22 that have had, or may have, a significant effect on the operations of the CEFC. There were also no particular reports about the CEFC made by the Commonwealth Ombudsman or the Office of the Australian Information Commissioner. The most recent Commonwealth Ombudsman Annual Report for 2020–21 reported the CEFC as an agency which had not received any public interest disclosures.
The CEFC was mentioned in the following reports of parliamentary committees:
- Standard reporting: of CEFC appearances at Senate Estimates proceedings of the Environment and Communications Legislation Committee, including May 2022 Budget Estimates
- February 2022: House of Representatives Environment and Energy Standing Committee advisory report on the inquiry into the Australian Local Power Agency Bill 2021 and Australian Local Power Agency (Consequential Amendments) Bill 2021.
Passing references to the CEFC were made in the following Parliamentary reports:
- August 2021: Senate Foreign Affairs, Defence and Trade Legislation Committee report on Export Finance and Insurance Corporation Amendment (Equity Investments and Other Measures) Bill 2021 (Provisions)
- October 2021: Senate Environment and Communications Legislation Committee report on Offshore Electricity Infrastructure Bill 2021 and Offshore Electricity Infrastructure (Regulatory Levies) Bill 2021 (Provisions)
- February 2022: Senate Economics References Committee report: The Australian manufacturing industry
- March 2022: House of Representatives Standing Committee on Infrastructure, Transport and Cities report: Government procurement – a sovereign security imperative
- March 2022: Joint Committee on Public Accounts and Audit Report 490: Alternative financing mechanisms.
Procurement
Commonwealth Procurement Rules are not applicable to the CEFC. Procurement occurs via the most efficient, effective, economical and ethical means possible, which can involve direct engagement of service providers based on quotes, select tenders, engagement of external advisors, and in some instances joining Australian Government procurement arrangements. Under section 74 of the CEFC Act, the CEFC must specify in the Annual Report the details for each procurement contract on foot within the financial year valued at above $80,000.
|
Contract date |
Value $ |
Expensed $ |
Contracting party |
Purpose of contract |
|---|---|---|---|---|
|
May 2017 |
4,046,431 |
745,295 |
Riverside Development Pty Ltd |
Lease of premises at Level 25, 71 Eagle Street, Brisbane from 18 May 2017 to 30 September 2022 |
|
July 2017 |
568,836 |
73,186 |
Knight Frank Australia Pty Ltd/The Trust Company Limited in its capacity as trustee of the LAV Australia Sub Trust 1 |
Lease of premises at Level 13, 222 Exhibition Street, Melbourne from 1 July 2017 to 30 June 2022 |
|
March 2021 |
5,890,131 |
1,180,283 |
Dexus Property |
Lease of premises at Level 17, 1 Bligh Street, Sydney from 1 March 2021 to 28 February 2026 |
|
June 2021 |
143,712 |
47,905 |
Australian City Properties Pty Ltd |
Lease of premises at Level 14, 191 St Georges Terrace, Perth from 1 June 2021 to 31 May 2024 |
|
July 2021 |
161,927 |
161,927 |
Australian Government Comcover |
General, professional indemnity, D&O, property including business interruption and travel insurance for the period 1 July 2021 to 30 June 2022 |
|
July 2021 |
253,482 |
253,482 |
Bloomberg Australia Pty Ltd |
Bloomberg terminal and NEF All Insight Package Level III |
|
July 2021 |
82,431 |
27,151 |
Chorus Call Australia Pty Ltd |
Three-year subscription for Lifesize Cloud and Digital Security Standard (DSS) |
|
July 2021 |
551,248 |
551,248 |
Datacom Systems |
IT support, applications and hardware for the period 1 July 2021 to 30 June 2022, including provision of an onsite resource for part of the year |
|
July 2021 |
149,621 |
149,621 |
Designate Group |
Design, development and production of the 2020–21 CEFC Annual Report and development of marketing-related materials |
|
July 2021 |
163,320 |
163,320 |
Gilbert & Tobin |
Legal fees incurred for the period 1 July 2021 to 30 June 2022 for an investment project and associated with the establishment of, and contracting arrangements with, Virescent Ventures Pty Ltd |
|
July 2021 |
382,594 |
382,594 |
Glass and Co Pty Ltd |
Provision of information technology outsourced consulting services, in accordance with individual statements of work |
|
July 2021 |
266,874 |
266,874 |
Herbert Smith Freehills |
Legal fees incurred for various investment projects for the period 1 July 2021 to 30 June 2022 |
|
July 2021 |
293,779 |
293,779 |
Intalock Technologies Pty Ltd |
Information technology security threat monitoring and response services |
|
July 2021 |
93,433 |
93,433 |
Macquarie Telecom Pty Ltd |
Provision of telecommunications, data and hosting for the period 1 July 2021 to 30 June 2022 |
|
July 2021 |
101,477 |
101,477 |
Norton Rose Fulbright |
Legal fees incurred for an investment project and employment matters advice for the period 1 July 2021 to 30 June 2022 |
|
July 2021 |
322,400 |
322,400 |
PricewaterhouseCoopers |
Internal Audit engagement for the period 1 July 2021 to 30 June 2022 |
|
July 2021 |
245,326 |
245,326 |
QBT Pty Ltd |
Work travel and incidental costs for period 1 July 2021 to 30 June 2022 under the whole of government travel procurement program |
|
July 2021 |
337,863 |
337,863 |
Technology One Ltd |
Annual maintenance and support, Application Managed Service (AMS) program, ongoing development costs and fees for software and cloud services |
|
July 2021 |
118,400 |
118,400 |
The Hong Kong and Shanghai Banking Corporation Limited |
Bond custody fees for the period 1 July 2021 to 30 June 2022 |
|
July 2021 |
84,893 |
84,893 |
Wiliam Pty Ltd |
Maintenance, programming and technical services associated with the CEFC website and digital production and deployment of the 2020–21 CEFC Annual Report |
|
August 2021 |
107,564 |
107,564 |
Paxus Australia |
Provision of information technology outsourced consulting services |
|
August 2021 |
199,959 |
199,959 |
Thesoco Pty Ltd trading as SOCO |
Creation of SharePoint Workspace for improved file management and workflow of investment transactions |
|
February 2022 |
81,779 |
81,779 |
Allura Partners |
Recruitment services |
|
February 2022 |
128,150 |
– |
Valmont (QLD) |
Preliminary works related to the design and construction of fit-out for the Brisbane office |
|
February 2022 |
2,860,000 |
1,210,000 |
Virescent Ventures |
Investment management services for the CEFC Innovation Fund Investments for the period 18 February 2022 to 31 December 2022 |
|
June 2022 |
214,500 |
214,500 |
Australian National Audit Office |
Audit of financial statements for year ended 30 June 2022 |
|
June 2022 |
287,661 |
– |
CyberCX Pty Limited |
Master Services Agreement for IT services and SoW for period August 2022 to August 2024 for: Digital Forensics and Incident Response (DFIR) Retainer; and Managed SIEM Service |
|
Total |
18,137,791 |
7,414,259 |
|
|