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Legislative and government information

Clean Energy Finance Corporation Act 2012 (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 emissions technologies. The Act expressly excludes CEFC investment in carbon capture and storage, nuclear technology and nuclear power.

During 2018–19 there were no substantial amendments to the CEFC’s enabling legislation. Prior to the reporting period (on 31 May 2017), the Australian Government introduced the Clean Energy Finance Corporation Amendment (Carbon Capture and Storage) Bill 2017 into the Parliament to amend the CEFC Act to remove the prohibition on investing in carbon capture and storage. Following the dissolution of the 45th Parliament, the Bill lapsed.

Responsible Ministers

Under the CEFC Act, the CEFC has two responsible Ministers. At the beginning of the 2018–19 reporting period, they were:

  • The Hon Josh Frydenberg MP, Minister for the Environment and Energy; and
  • Senator the Hon Mathias Cormann, Minister for 

On 28 August 2018, the responsible Ministers became:

  • The Hon Angus Taylor MP, Minister for Energy (until 29 May 2019) and Minister for Energy and Emissions Reduction (from 29 May 2019); and
  • Senator the Hon Mathias Cormann, Minister for 

For the period 2018–19 the CEFC was located within the Environment and Energy portfolio.

Nominated Minister

The nominated Minister is one of the responsible Ministers and exercises additional powers and functions under the CEFC Act.

The CEFC Act provides that the responsible Ministers must determine between them which is to be the nominated Minister. For the period 2018–19 the nominated Minister was the Hon Josh Frydenberg MP, the Minister for the Environment and Energy until 28 August 2018 and then the Hon Angus Taylor MP, Minister for Energy and Emissions Reduction.

Ministerial powers of direction

CEFC Act

The CEFC Act is structured in such a way as to maximise the CEFC’s operational independence, particularly with respect to investment decision making. Ministerial powers to direct under the CEFC Act are limited primarily to the Investment Mandate.

The CEFC can be directed by Ministers to pay surplus funds to the CEFC Special Account, since the CEFC was not conceived as having a treasury function. Such a direction has been made in the past and was in effect throughout the reporting period.

Figure 26: Ministerial directions

Operative dates

Nominated Ministers

Throughout the period

Ministerial Direction to repay surplus monies to the CEFC Special Account, signed 5 May 2016 by the Hon Greg Hunt MP, then Minister for the Environment, and Senator the Hon Mathias Cormann, Minister for Finance.

Investment Mandate

The responsible Ministers may issue one or more directions to the CEFC Board under sub-section 64(1) of the CEFC Act, known as the Investment Mandate. This is the means by which the Government of the day provides instruction as to policies to be pursued by the CEFC in performing its investment function, provided that this:

  • does not have a purpose of directing the CEFC to make or not make a particular investment
  • is not inconsistent with the CEFC Act (including the object of the CEFC Act).

Figure 27: Investment Mandates in effect 2018–19

Name

Date issued

Date registered

Date of effect

Clean Energy Finance Corporation Investment Mandate Direction 2018

14-Dec-18

14-Dec-18

17-Dec-18

Clean Energy Finance Corporation Investment Mandate Direction 2016 (No. 2)

13-Dec-16

10-Jan-17

11-Jan-17

These are available at www.legislation.gov.au.

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 2018–19.

Statement of compliance

The CEFC had no instances of non-compliance with Ministerial Directions (including the Investment Mandate) or GPOs in the 2018–19 year.

Procurement

The Commonwealth Procurement Rules are not applicable to the CEFC. Procurement is undertaken in a manner which is efficient, effective, economical and ethical, 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.

Figure 28: Procurement contracts 2018–19

Contract

date

Value

$

Expensed

$

Contracting party

Purpose

Jun-13

590,665

73,783

Marsh Pty Ltd

D&O Insurance for period 14 June 2013 to 14 June 2021

Jun-15

555,591

265,208

Technology One Ltd

5-year License Fees, 3-year minimum maintenance and support, initial implementation costs, ongoing development costs and fees for TechnologyOne software and cloud services

Mar-16

4,331,218

766,244

Dexus Property Group

Lease of premises at Level 17, 1 Bligh Street, Sydney from 1 March 2016 to 28 February 2021

May-17

4,046,431

752,824

Riverside Development Pty Ltd

Lease of premises at Level 25, 71 Eagle Street, Brisbane from 18 May 2017 to 30 September 2022

Jul-17

568,836

89,044

Knight Frank Australia Pty Ltd

Lease of premises at Level 13, 222 Exhibition Street, Melbourne from 1 July 2017 to 30 June 2022

Jan-18

218,763

75,952

Reval.com Inc

3-year License Fees renewal, maintenance and support for Loan Management System

Apr-18

98,993

84,327

Gerard Daniels Australia Pty Ltd

Recruitment services

Jul-18

239,800

239,800

Price-waterhouse-Coopers

Internal Audit engagement and Cyber Security review for 1 July 2018 to 30 June 2019

Jul-18

168,644

168,644

Australian Government Comcover

General, professional indemnity, D&O, property including business interruption and travel insurance for the period 1 July 2018 to 30 June 2019

Jul-18

212,314

212,314

Bloomberg Australia Pty Ltd

Bloomberg terminal and NEF All Insight Package Level III

Jul-18

433,096

433,096

Datacom Systems Pty Ltd

IT support, applications and hardware for the period 1 July 2018 to 30 June 2019 including provision of an onsite resource for part of the year

Jul-18

175,000

175,000

Department of the Environment and Energy

Statutory review of the operation of the CEFC conducted by Deloitte on behalf of the Department of the Environment and Energy

Jul-18

599,743

599,743

Herbert Smith Freehills

Legal fees incurred for various investment projects and corporate matters for the period 1 July 2018 to 30 June 2019

Jul-18

241,577

241,577

King & Wood Mallesons

Legal fees incurred for various investment projects and corporate matters for the period 1 July 2018 to 30 June 2019

Jul-18

106,637

106,637

Macquarie Telecom Pty Ltd

Provision of telecommunications, data and hosting for the period 1 July 2018 to 30 June 2019

Jul-18

414,813

414,813

National Australia Bank

Bond custody fees for the period 1 July 2018 to 30 June 2019

Jul-18

112,282

112,282

Charterhouse Recruitment Pty Ltd

Temporary staff under contract

Jul-18

652,281

652,281

Glass and Co Pty Ltd

Provision of technical consulting services towards Enterprise Information Management project in accordance with individual statements of work

Jul-18

866,435

866,435

QBT Pty Ltd

Work travel and incidental costs for period 1 July 2018 to 30 June 2019 under the whole of government travel procurement program

Jul-18

112,310

112,310

Intalock Technologies Pty Ltd

Information technology security monitoring services

Aug-18

238,262

238,262

Designate Group Pty Ltd

Production and printing of CEFC Annual Report and brand positioning and values projects

Sep-18

150,150

150,150

Korn Ferry International Pty Ltd

Recruitment services

Jan-19

122,892

122,892

Intelligent Technology Solutions t/a Sharing Minds

Consulting and development of workflow solutions using Nintex workflow automation software

Jun-19

248,000

226,000

Australian National Audit Office

Audit of financial statements for year ended 30 June 2019

TOTAL

$15,504,733

$7,179,618