Clean Energy Finance Corporation Act, 2012
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”. One of the functions 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 2017-18 there were no substantial amendments to the CEFC’s enabling legislation. However, 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. At the time of writing, the Bill was waiting to proceed through the House of Representatives and had not been introduced into the Senate.
Under the CEFC Act, the CEFC has two responsible Ministers. At 30 June 2018, they were:
- The Hon Josh Frydenberg MP, Minister for the Environment and Energy; and
- Senator the Hon Mathias Cormann, Minister for Finance.
For the period 2017-18 the CEFC was located within the Environment and Energy portfolio.
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 2017-18 the nominated Minister was The Hon Josh Frydenberg MP, Minister for the Environment and Energy.
Ministerial Powers of Direction
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 large cash management function. Such a direction has been made in the past and was in effect throughout the reporting period.
|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, Minister for the Environment, and Senator the Hon Mathias Cormann, Minister for Finance.|
The responsible Ministers may issue one or more directions to the 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 Corporation to make or not make a particular investment
- Is not inconsistent with the CEFC Act (including the object of the CEFC Act).
|Name||Date Issued||Date Registered||Date of Effect|
|Clean Energy Finance Corporation Investment Mandate Direction 2016 (No.2)*||13 December 2016||10 January 2017||11 January 2017|
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 2017-18.
Statement of Compliance
The CEFC had no instances of non-compliance with Ministerial Directions (including the Investment Mandate) or GPOs in the 2017-18 year.
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||Contract Value: $||FY18 Value Expensed: $||Contracting Party||Purpose|
|June 2013||590,665||73,783||Marsh Pty Ltd||D&O Insurance for period 14 June 2013 to 14 June 2021|
|June 2015||555,591||213,983||Technology One Ltd||5-year License Fees, 3-year minimum maintenance and support, initial implementation costs and cloud service fee for TechnologyOne software|
|July 2015||723,377||(51,994)||The Uniting Church in Australia Property Trust (Q.)||Lease of premises at Level 8, 140 Ann Street, Brisbane from 15 July 2015 to 14 July 2018: surrendered in May 2018 resulting in a refund of two months’ rental|
|March 2016||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 2017||102,534||85,209||Deloitte Touche Tohmatsu||Information security strategy, policies and awareness|
|May 2017||168,300||155,639||Price–waterhouse–Coopers||Internal Audit engagement for 1 July 2017 to 30 June 2018|
|May 2017||4,046,431||752,824||Riverside Development Pty Ltd||Lease of premises at Level 25, 71 Eagle Street, Brisbane for 18 May 2017 to 30 September 2022|
|July 2017||91,345||91,345||Australian Government Comcover||General, professional indemnity, D&O, property including business interruption and travel insurance for 1 July 2017 to 30 June 2018|
|July 2017||402,644||64,855||Axiom Workplaces Pty Ltd||Fit-out of premises at Level 13, 222 Exhibition Street, Melbourne|
|July 2017||194,585||194,585||Bloomberg Australia Pty Ltd||Bloomberg terminal and NEF All Insight Package Level III|
|July 2017||357,370||357,370||Datacom Systems Pty Ltd||IT support, applications and hardware for 1 July 2017 to 30 June 2018 along with an Enterprise Information Review Report and system health check|
|July 2017||596,011||596,011||Herbert Smith Freehills||Legal fees incurred for various investment projects for 1 July 2017 to 30 June 2018|
|July 2017||113,978||113,978||King & Wood Mallesons||Legal fees incurred for various investment projects for 1 July 2017 to 30 June 2018|
|July 2017||568,836||89,044||Knight Frank Australia Pty Ltd||Lease of premises at Level 13, 222 Exhibition Street, Melbourne for 1 July 2017 to 30 June 2022|
|July 2017||135,112||135,112||Macquarie Telecom Pty Ltd||Provision of telecommunications, data and hosting for July 2017 to 30 June 2018|
|July 2017||274,310||274,310||National Australia Bank||Bond custody fees for 1 July 2017 to 30 June 2018|
|July 2017||632,104||632,104||QBT Pty Ltd||Work travel and incidental costs for 1 July 2017 to 30 June 2018 under the whole of government travel procurement program|
|July 2017||80,908||80,908||Screentide Pty Ltd||Video case studies providing insights into CEFC finance in action|
|August 2017||151,959||151,959||Johnson Advisory Pty Ltd||Recruitment services|
|October 2017||87,106||87,106||Noble Brands Worldwide||Annual Report design, production and printing, plus other smaller-scale design and print projects|
|November 2017||81,436||81,436||Gerard Daniels Australia Pty Ltd||Recruitment services|
|January 2018||180,735||90,368||Energeia Pty Ltd||Electric vehicle market study: 50 per cent of cost shared with ARENA|
|January 2018||218,763||76,232||Reval.com Inc||3-year License Fees renewal, maintenance and support for Loan Management System|
|January 2018||83,732||83,732||The Specialist Recruitment Group Pty Ltd – Taylor Root||Temporary staff and recruitment services|
|March 2018||84,700||42,350||GHD Pty Ltd||Biofuels research project: 50 per cent of cost shared with ARENA|
|March 2018||216,095||216,095||Glass and Co Pty Ltd||Enterprise Information Management project costs based on individual statements of work|
|March 2018||90,465||90,465||Price–waterhouse–Coopers||AASB 9 “financial instruments” diagnostic workshop, provision for impairment modelling and preparation of documentation to support CEFC adoption of AASB 9|
|June 2018||202,950||175,450||Australian National Audit Office||Audit of financial statements for year ended 30 June 2018|