Media Release: GOOD START, BUT BALANCE NEEDED ON CCS LEGISLATION

FROM THE MINISTER FOR ENERGY AND RESOURCES

DATE: Tuesday, July 15, 2008

GOOD START, BUT BALANCE NEEDED ON CCS LEGISLATION

The draft Commonwealth Greenhouse Gas Storage Bill while a good start may need further refinement to strike the right balance between the interests of petroleum companies and the national interest in establishing the regulatory regime for carbon capture and storage (CCS) in Australia, Victoria’s Energy and Resources Minister Peter Batchelor said today.

Speaking after the public release today of the Victorian Government submission on the proposed Commonwealth Greenhouse Gas Storage Bill, Mr Batchelor said the Federal Government’s draft legislation provided a good starting point.

“The Federal Government should be commended for taking the critical step of developing the world’s first draft framework to enable CCS, but we have concerns that some amendments may be needed if a robust CCS industry is to be established in Victoria,” Mr Batchelor said.

“The Petroleum industry is a vital contributor to the Victorian economy with production worth more than $3.5 billion each year. Ensuring the right legal framework is developed around CCS is essential for both the continued growth of the petroleum industry and the long-term successful development of CCS technologies in Australia.

These technologies have the potential to help Victoria meet our target of reducing greenhouse gas emissions by 60 per cent by 2050 by reducing carbon dioxide emissions from Victoria’s coal-fired electricity generation to near zero and providing the foundation for major coal-to-liquids projects in the Latrobe Valley,” said Mr Batchelor.

Mr Batchelor said Victoria was concerned that the legislation ‘get the balance right’ by ensuring that CCS proponents are offered similar security over their acreage titles to those awarded to petroleum acreage title holders and that there is a more level playing field between CCS proponents and existing petroleum titleholders for prospective storage areas.

“Ensuring the right legal framework is developed around CCS is critical to the long-term successful development of CCS technologies in Australia, and is of particular interest to Victoria given potential storage sites have already been identified in the Gippsland Basin,” Mr Batchelor said.

“I look forward to continuing to work with my Federal colleagues to ensure a comprehensive and effective CCS framework is put in place at both a Federal and State level.”

Mr Batchelor said the Brumby Government is currently working on an onshore legislative framework for CCS.

“We are working hard to position Victoria as an international leader on CCS technologies and it is vital CCS legislation supports this work and allows the development of a competitive CCS industry,” Mr Batchelor said.

Mr Batchelor said CCS is one of a range of low-emission and renewable technologies being explored by the Brumby Government to ensure Victoria can meet the climate change challenge.

The submission is to the House of Representatives, Standing Committee on Primary industries and Resources, Inquiry into the Draft Offshore Petroleum Amendment (Greenhouse Gas Storage) Bill. Submissions can be found at
http://www.aph.gov.au/house/committee/pir/exposuredraft/subs.htm