Thursday, 18 June 2026

 Lily D’AMBROSIO (Mill Park – Minister for Climate Action, Minister for Energy and Resources, Minister for the State Electricity Commission) (15:08): Under the Charter of Human Rights and Responsibilities Act 2006, I table a statement of compatibility:

In accordance with section 28 of the Charter of Human Rights and Responsibilities Act 2006 (the Charter), I make this statement of compatibility with respect to the Energy and Resources Legislation Amendment (VEET Strategic Review and Other Matters) Bill 2026 (the Bill).

In my opinion, the Bill, as introduced to the Legislative Assembly, is compatible with the human rights protected by the Charter. I have this opinion for the reasons outlined in this statement.

Overview of the Bill

The Bill amends the Victorian Energy Efficiency Target Act 2007 (VEET Act), the Electricity Industry Act 2000 (EI Act), Gas Industry Act 2001 (GI Act) and Mineral Resources (Sustainable Development) Act 1990 (MRSD Act).

The VEET Act provides the legislative framework for the Victorian Energy Efficiency Target Scheme, known as the Victorian Energy Upgrades (VEU) program, which supports energy efficiency in Victorian households and businesses and contributes to reducing greenhouse gas emissions. The VEU program is intended to play a key role in achieving net zero and renewable energy targets that have been legislated under the Climate Action Act 2017and Renewable Energy (Jobs and Investment) Act 2017. The amendments to the VEET Act:

•   Expand the VEET Act’s purpose and objects beyond greenhouse gas emissions reduction, insert principles, and update terminology to align with the VEU program’s future role in emissions reduction measures;

•   Introduce an adjustment factor mechanism to allow certificates to be created for the delivery of benefits in addition to greenhouse gas emissions reductions;

•   Introduce an activities Order mechanism for adding energy upgrade (VEU scheme) activities to the VEU program and setting eligibility requirements for certificate creation;

•   Expand and clarify the role of the Essential Services Commission (ESC) and statutory functions as VEU program regulator and administrator;

•   Clarify the responsibilities of accredited persons when creating certificates, particularly where activities are undertaken by others;

•   Extend accreditation periods to reduce administrative burden for participants and the ESC;

•   Enable limits on which participants may undertake highly specialised or complex VEU scheme activities through the introduction of a nominated activities mechanism;

•   Enable the Minister to appoint an External Dispute Resolution Scheme provider and require accredited persons to be a member of an approved dispute resolution scheme as a condition of their accreditation;

•   Allow the Minister to adjust the VEU scheme target by a target adjustment instrument in certain circumstances to maintain the stability of the certificate market;

•   Allow energy retailers (‘relevant entities’) to carry forward a portion of their certificate surrender liability into the following year; and

•   Make other minor and technical amendments to the VEET Act.

The amendments to the EI Act and GI Act clarify that pricing Orders under those Acts are not limited to standing offers, and can include regulating any tariff for the sale of electricity and gas to prescribed customers or a prescribed class of customers; introduce a power for the Governor in Council to prohibit electricity and gas retailers from charging specified groups of customers specified types of administrative fees; align the GI Act with the EI Act requiring persons who are exempt under an Order, to be listed on the ESC’s register of exempt persons and correct a typographical error.

The amendments to the MRSD Act provide for a time-limited statutory continuation of the Hazelwood mining licence for rehabilitation purposes. Other amendments to the MRSD Act expand the power to increase a rehabilitation bond and require rehabilitation liability assessment, so that this can apply to former licensees as well as current licensees.

Analysis of human rights issues

VEET Act amendments

Introduction of nominated activities and activities Orders

Clause 20 introduces new sections 14FB and 14FC into the VEET Act. These provisions interact with clause 22, which inserts new sections 15AA, 15AAB and 15AAC into the VEET Act.

New section 15AA empowers the Minister to make activities Orders for the VEU scheme activities in the VEU program which specify the requirements applying to each activity. Activities Orders will be legislative instruments within the meaning of the Subordinate Legislation Act 1994, to which the publications of that Act will apply. To ensure transparency and for ease of reference, new section 15AB requires the Minister to ensure that a copy of each activities Order as amended from time to time is published on the ESC’s website as soon as practicable after being made or amended and also made available for inspection. New section 15AAC provides that the Minister may declare an activity to be a nominated activity to which specified training and competency requirements apply.

New section 14FB prohibits a scheme participant from undertaking a nominated activity unless they first comply with any training and competency requirements specified in an activities Order and provide evidence of that compliance to an accredited person. New section 14FC provides that the Minister may publish and maintain a list of nominated activity participants (a term which is defined in clause 10 of the Bill) on the ESC’s website.

Right to freedom from forced work (section 11 of the Charter)

New section 14FB(1)(b) provides that an accredited person, if required to do so by an activities Order, must determine that a scheme participant has complied with any training and competency requirements in that Order and make a declaration to the ESC that the scheme participant meets those requirements. This provision engages the right to freedom from forced work.

This right is set out in section 11(2) of the Charter, which provides that a person must not be made to perform forced or compulsory labour. Section 11(3) of the Charter provides that forced or compulsory labour does not include work or service that forms part of normal civil obligations.

New section 14FB(1)(b) may be seen to engage the right insofar as an accredited person may be required to take action to determine that a scheme participant has complied with relevant training and competency requirements. This could be viewed as requiring a person to perform forced or compulsory labour. However, in my view the right to freedom from forced work is not limited, as any labour required under this provision would fall within the scope of the exception to the prohibition in s 11(3) of the Charter, namely work or service that forms part of normal civil obligations, as accredited persons are engaging in a regulated activity and have voluntarily assumed associated responsibilities and obligations under the VEET Act. Additionally, the declaration serves the purpose of promoting the integrity of the VEU program by providing for nominated activities to be undertaken by scheme participants with the appropriate training and competency to undertake nominated activities.

Right to privacy (section 13(a) of the Charter)

New section 14FB provides for the provision of information by a scheme participant to an accredited person in relation to their compliance with the training and competency requirements applying to a VEU scheme activity. To the extent that the information provided by a scheme participant to an accredited person contains personal information, this provision engages the right to privacy set out in section 13(a) of the Charter. Furthermore, new section 14FC engages the right to privacy insofar as it provides for the publication of the personal information of nominated activity participants on the ESC’s website.

Section 13(a) of the Charter provides that a person has the right not to have that person’s privacy, family, home or correspondence unlawfully or arbitrarily interfered with. An interference will be lawful if it is permitted by a law which is precise and appropriately circumscribed, and will be arbitrary only if it is capricious, unpredictable, unjust or unreasonable, in the sense of being disproportionate to the legitimate aim sought.

In my opinion, new sections 14FB and 14FC engage but do not limit the right to privacy. The purpose of new section 14FC is to require scheme participants to undertake specific training and be competent to undertake VEU scheme activities in circumstances where the Minister has determined that additional training and competency requirements are appropriate. This may include where there are safety risks associated with undertaking the VEU scheme activity. The provision of evidence to an accredited person is necessary to ensure that scheme participants have the training and competency to undertake nominated activities in a manner that is suitable and safe. New section 14FC is intended to ensure that energy consumers have ready access to a list of scheme participants who have the training and competency to undertake nominated activities. Any interference with the right to privacy from new sections 14FB and 14FC will not be unlawful because it is authorised by an accessible and precise law. Nor is it arbitrary – these provisions have a legitimate purpose of ensuring scheme participants are suitably trained to participate in the VEU program and to maintain the safety and integrity of the program. Notably, scheme participants also engage in the VEU program on a voluntary basis and in a professional capacity.

Right to a fair hearing (section 24 of the Charter)

New section 14FC(2) provides that a list of nominated activity participants must not include a nominated activity participant to whom a prohibition notice applies. Subsection (2)(c) requires the ESC to remove a nominated activity participant to whom a prohibition notice applies from the list as soon as practicable after issuing the prohibition notice. Section 40AC empowers the ESC to issue a prohibition notice if it has reasonable grounds to believe that a scheme participant has breached the requirements applying to the VEU scheme activity or has engaged in, or proposes to engage in, conduct that has caused or is likely to cause harm to human health or safety or damage to property. Insofar as this provision does not provide for scheme participants who are nominated activity participants to have advanced notice of their removal from the list, new section 14FC(2)(c) may engage the right to a fair hearing.

New section 15AAC(1)(a) and (b) provide that in making an activities Order under section 15AA, the Minister may specify a person or class of persons that are eligible to be accredited to undertake a nominated activity or who may undertake the activity for the purpose of the VEU scheme (as scheme participants). To the extent that the exercise of this power would serve to exclude potential accredited persons and scheme participants from undertaking nominated activities, these provisions also engage the right to a fair hearing.

The right to a fair hearing is set out in section 24(1) of the Charter, which provides that a person charged with a criminal offence or a party to a civil proceeding has the right to have the charge or proceeding decided by a competent, independent and impartial court or tribunal after a fair and public hearing. The concept of a ‘civil proceeding’ is not limited to judicial decision makers and may encompass the decision-making procedures of many types of tribunals, boards, and other administrative decision-makers with the power to determine private rights and interests. The right may be limited if a person faces a procedural barrier to bringing their case before a court, or where procedural fairness is not provided.

The intention underpinning new section 15AAC(1)(a) and (b) is to ensure that only competent and capable accredited persons and scheme participants undertake nominated activities. Furthermore, new section 14FC(2)(c) is intended to ensure that the list of nominated activity participants published and maintained on the ESC’s website does not include scheme participants to whom a prohibition notice applies. The amendments seek to promote the integrity of the VEU program by ensuring that energy consumers have access to a list of nominated activity participants who are not subject to a prohibition notice. New section 14FC(2)(d) requires the ESC to include a nominated activity participant on the list as soon as practicable after a prohibition notice is revoked or ceases to apply. In addition, these provisions do not limit any judicial review rights that may otherwise be available to persons who may be affected by relevant decisions under the VEET Act. On balance, I am satisfied that any limitation to the right to a fair hearing is not unlawful as it has a legitimate purpose of ensuring safety and integrity of nominated activities.

Right to the presumption of innocence (section 25(1) of the Charter)

Clause 20 inserts new section 14FB(2) into the VEET Act. This provision makes it an offence for a scheme participant to provide information to an accredited person that purports to be evidence of their compliance with the training or competency requirements that apply to a nominated activity if the scheme participant knows the information to be false or misleading.

Section 25(1) of the Charter provides that a person charged with a criminal offence has the right to be presumed innocent until proven guilty according to law. Ordinarily, the presumption of innocence requires that the prosecution prove all matters beyond reasonable doubt. Section 25(1) of the Charter may be relevant where a statutory provision shifts the burden of proof onto an accused in a criminal proceeding, so that the accused is required to prove matters to establish, or raise evidence to suggest, that they are not guilty of an offence.

New section 14FB(2) engages the right to be presumed innocent in that in it imposes an evidential burden on an accused to adduce evidence to establish that they did not know the information they provided to an accredited person was false or misleading. New section 14FB(2) does not shift the legal burden of proof onto the accused and the prosecution continues to bear the evidential burden in relation to the other elements of the offence. I do not consider that an evidential onus of this kind limits the right to be presumed innocent.

Clause 25 of the Bill amends the offence in section 20(7) of the VEET Act to extend it to an accredited person who creates a certificate in circumstances where the person reasonably ought to know the certificate contained incorrect information or did not comply with applicable requirements. While changes to the fault element of the offence may make it easier for the prosecution to prove an offence, the amendments do not shift the legal or evidentiary burden of proof. The prosecution is still required to prove all elements of the offence. Therefore, the amendments do not limit the Charter right to presumption of innocence.

Introduction of a target adjustment mechanism

Clause 35 introduces a mechanism to adjust VEU scheme targets (which are prescribed by regulation following a regulatory impact statement process), known as the target adjustment Order. The clause inserts new section 30A into the VEET Act, which empowers the Minister to publish an Order in the Government Gazette amending the VEU scheme target for a particular year. Orders will be legislative instruments within the meaning of the Subordinate Legislation Act 1994, to which the publications of that Act will apply. To ensure transparency and for ease of reference, new section 30A requires the Minister to ensure that an Order is published on the ESC’s website as soon as practicable after being made.

In broad terms, the VEET Act requires energy retailers (known as relevant entities) to offset the greenhouse gas emissions associated with their sale of energy to consumers by acquiring certificates generated under the VEU program when energy efficiency activities are undertaken and surrendering these to the ESC. The VEU scheme target affects the number of certificates that relevant entities will need to acquire and surrender each year. The target adjustment amendment is relevant to the right to a fair hearing and the right to property.

Right to property (section 20 of the Charter)

Section 20 of the Charter provides that a person must not be deprived of their property other than in accordance with law. This right requires that powers which authorise the deprivation of property are conferred by legislation or the common law, are confined and structured rather than unclear, are accessible to the public, and are formulated precisely.

New section 30A engages the right to property insofar as certificates are property. The power to make a target adjustment Order may engage this right in circumstances where the target is increased. The Minister may only make an Order if it is necessary to prevent high volatility in the price of certificates or to protect the stability of the market for transfer of certificates. An Order made under new section 30A ceases to exist on the later of either 31 December of the year in which the Order is made or the date by which the relevant entity is required to lodge an energy acquisition statement for the year in respect of which the Order is made. Any interference with the right will not be unlawful because it is authorised by an accessible and precise legislative framework, nor arbitrary, because it has a legitimate purpose of ensuring the market does not collapse and to maintain the safety and integrity of the VEU scheme. I am therefore satisfied that the target adjustment amendment does not limit the right to property.

Right to a fair hearing (section 24 of the Charter)

In interpreting the right to a fair hearing broadly, the new target adjustment Order may engage this right in circumstances where the target for the relevant year is increased. However, new section 30A(6) requires the ESC to notify all relevant entities that the VEU scheme target has been adjusted, and any adjustment will be done to preserve market stability and prevent high volatility of the price of certificates. Therefore, the right to a fair hearing is not limited.

ESC Information sharing powers

Clauses 47 and 48 of the Bill make amendments to sections 65 and 66 of the VEET Act, which deal with the ESC’s powers to disclose information under the VEET Act. These amendments have been developed having regard to the Guidance on Adopting Model Legislative Provisions and are intended to ensure that the ESC’s powers to disclose information under the VEET Act are fit for purpose. To the extent that the amendments permit the ESC to disclose personal information, they engage the Charter right to privacy.

Right to privacy (section 13(a) of the Charter)

These amendments clarify that the ESC or a person authorised by the ESC may disclose personal information obtained or held by the ESC under the VEET Act for the purpose of performing a function or exercising a power under or in connection with the VEET Act. The amendments also expand the circumstances in which the ESC may disclose information obtained or held by the ESC under the VEET Act with public sector bodies, Councils (within the meaning of section 3(1) of the Local Government Act 2020) and government bodies in other States and Territories and the Commonwealth, confers an express power to disclose information to law enforcement agencies, such as Victoria police, for a law enforcement purpose, and enables regulations to be made to prescribe other persons, purposes and circumstances in which information may be disclosed. These amendments are consistent with the information privacy principles set out in the Privacy and Data Protection Act 2014, which enable (among other things) use or disclosure that is required or authorised by or under law, and will equip the ESC to overcome existing information sharing limitations. I am satisfied that any impacts on the right to privacy will not be unlawful or arbitrary as the disclosure of any personal information by the ESC would be authorised by an accessible and precise law. Any privacy implications of regulations that prescribe other persons, purposes and circumstances in which information may be disclosed, will be assessed when those regulations are made, in accordance with requirements under the Subordinate Legislation Act 1994 to consider impacts on Charter rights.

Removal of the privilege against self-incrimination for bodies corporate

Sections 14AE, 14E and 55P were inserted into the VEET Act by the Victorian Energy Efficiency Target Amendment Act 2022 and provide that individuals and bodies corporate may refuse or fail to provide information or disclose an adverse matter to the ESC or an auditor on the basis that doing so would tend to incriminate them. The purpose of these provisions was to protect the privilege against self-incrimination, which derives from the common law and is also reflected in section 25(2)(k) of the Charter.

Privilege against self-incrimination (section 25(2) of the Charter)

Section 25(2)(k) provides that a person charged with a criminal offence is entitled without discrimination to not be compelled to testify against themselves or to confess guilt. Clauses 50, 51 and 52 remove the privilege against self-incrimination for bodies corporate from sections 14AE, 14E and 55P of the VEET Act and as such engage section 25(2)(k) of the Charter. The purpose of these amendments is to bring sections 14AE, 14E and 55P into alignment with sections 52 and 62 of the VEET Act, which also protect the privilege against self-incrimination, but only for natural persons. These amendments also address operational challenges that have arisen in practice for the ESC in regulating corporate entities participating in the VEU program.

While clauses 50, 51 and 52 engage the Charter privilege against self-incrimination, the amendments do not limit the right, which only applies to individuals and not bodies corporate by virtue of section 6(1) of the Charter, which provides that only natural persons have human rights.

Clause 52 also removes a reference to section 55N from section 55P of the VEET Act. Section 55N makes it an offence for a person to, without reasonable excuse, give information to an auditor that they know or believe to be false or misleading in a material particular. During the course of drafting the Bill, it was determined that applying the privilege against self-incrimination (which protects a person’s right to not provide information) to an offence which involves the actual provision of false or misleading information by a person is not in keeping with how the privilege against self-incrimination is designed to work in practice. The right protects a person’s right to without information, it should not apply so as to permit a person to provide information that they know or believe to be false or misleading.

Expansion of authorised officer powers

Division 12 of Part 2 of the Bill contains a number of amendments which expand the powers of authorised officers under the VEET Act. These provisions will commence the day after the Bill receives Royal Assent, ahead of amendments that revise the terminology used within the legislation and the new activities Order provisions. To support this commencement timing, Division 13 of Part 2 provides for consequential amendments to the provisions amended by Division 12 which will take effect by proclamation on or before the default commencement date.

These expand the powers of authorised officers that are already contained within the VEET Act and provide for exercise the powers in accordance with the VEU scheme activity requirements specified in regulations and activities Orders.

Clauses 55 and 60 amend section 43 of the VEET Act to expand an authorised officer’s powers under Part 7 of the VEET Act to also include monitoring compliance with the requirements of the regulations and the requirements specified in an activities Order. Clauses 56 and 61 amend section 48 of the VEET Act to expand the monitoring powers of authorised officers to include the power to search premises under section 44 to search for any thing on a premises that relate to the undertaking of VEU scheme activities, the trading of certificates and monitoring compliance with the requirements of the Act, regulations and the requirements specified in an activities Order. Clauses 57, 58, 62 and 63 complement the amendments to section 48 and expand authorised officer powers to ask for information in line with their expanded monitoring powers. Clauses 59 and 64 complement the amendments to section 43 and provide that a magistrate may also issue a monitoring warrant if satisfied that it is reasonably necessary for authorised officers to have access to premises in order to monitoring compliance with the requirements of the regulations and the requirements specified in an activities Order. These provisions engage the Charter right to privacy.

Right to privacy (section 13(a) of the Charter)

These provisions engage two different aspects of the right to privacy.

Firstly, the amendments expand the reasons for which authorised officers may enter premises to monitor compliance. The Bill was developed after a Strategic Review was undertaken in relation the VEU program which made a number of recommendations to amend the legal framework to reflect the increasingly complex nature of VEU scheme activities, including activities that involve safety risks for VEU program participants and energy consumers. An example of one such activity is the installation of ceiling insulation, which was recently reintroduced into the VEU program. The activity is currently restricted to ceiling insulation installations in public and community housing. From 1 October 2026, this activity will be expanded to include installations in homes across Victoria.

In developing regulatory amendments to reintroduce this activity safely into the VEU program, the need to also amend Part 7 of the VEET Act to expand authorised officer powers to enter premises to monitor compliance was identified. In the case of ceiling insulation, these amendments will empower authorised officers to monitor compliance with the pre-installation safety requirements set out in the Victorian Energy Efficiency Target Regulations 2018 (VEET Regulations), which include electrical and pre-installation safety checks. The extension of monitoring power to regulations will also provide for authorised officers to monitor compliance with the Code of Conduct for accredited providers and scheme participants set out in Schedule 6 to the VEET Regulations. As the Bill provides for the introduction of activities Orders to set VEU scheme activity requirements, the amendments provide for authorised officer powers to monitor compliance with the Act, regulations and activities Orders.

The expansion of authorised officer powers engages but does not limit the right to privacy. Any interference with a person’s privacy would be lawful and not arbitrary because the VEET Act requires that either consent be obtained from the occupier of the premises or the authorised officer must have a monitoring warrant that is given by court order before entering premises. Participation in the VEU program is voluntary and the purpose of the amendments is to ensure that the safeguards set out in the legal framework are met. Authorised officers must exercise powers of search and seizure reasonably and must only enter premises at a ‘reasonable’ time of the day, must cause as little inconvenience as possible and must not remain on the premises any longer than is reasonably necessary. I am of the view that the amendments do not limit the right to privacy.

Secondly, to the extent that an authorised officer may ask or require information to be provided that may contain personal information, the right to privacy may also be engaged. Any interference with this right will not be unlawful or arbitrary and would be authorised by an accessible and precise law in relation to VEU program participants and energy consumers voluntarily engaging in the VEU program.

Publication of audit results

Clauses 53 and 54 set out amendments to the ESC’s powers to publish audit result information in the VEET Act.

Section 55R of the VEET Act empowers the ESC to publish audit result information on its website. Clause 53 removes subsection (2), which currently restricts the ESC to only publishing audit information in circumstances where the auditor did not identify any significant issues. This amendment has the effect of broadening the ESC’s power to publish audit information to include information where significant issues were identified by an auditor.

Clause 54 inserts new section 55S into the VEET Act. This provision sets out the procedural requirements that the ESC must comply with in order to publish audit result information which includes an adverse finding about an accredited person. These amendments engage the right to privacy and reputation and the right to a fair hearing.

Right to privacy and reputation (section 13(a) and (b) of the Charter)

To the extent that the amendments empower the ESC to publish the personal information of accredited persons, the right to privacy is engaged. I am of the view that the right is not limited, as the publication of personal information would be lawful and not arbitrary.

These amendments also engage section 13(b) of the Charter, which sets out the right to reputation. Section 13(b) of the Charter relevantly provides that a person has the right not to have their reputation unlawfully attacked. An ‘attack’ on reputation will be lawful if it is permitted by a precise and appropriately circumscribed law.

The purpose of the amendments is to promote the integrity of the VEU program by providing the ESC with the discretion to publish adverse audit information in circumstances where the procedural requirements have been complied with. These amendments are designed to provide energy consumers with more information about the accredited providers participating in the VEU program (all of whom do so voluntarily) and to equip them with more information about VEU program participants who have adverse audit findings. I am satisfied that the publication of adverse audit findings would only be permitted in accordance with the law and that the publication would not be done arbitrarily.

Right to a fair hearing (section 24 of the Charter)

These amendments engage the right to a fair hearing and have been developed so as to provide accredited providers with procedural fairness in relation to the publication of adverse audit findings. Clause 54 provides that before publishing adverse audit findings, the ESC must notify the accredited person and invite them to make a written submission as to why the information should not be published, which the Commission must then consider. On balance, I am satisfied that the right to a fair hearing is not limited as new section 55S accords procedural fairness to accredited persons ahead of the publication of any adverse audit results.

EI Act and GI Act amendments

Prohibition on specified administration fees

Parts 4 and 5 of the Bill set out minor amendments to the EI Act and GI Act, which introduce powers into both Acts for the Governor in Council to make Orders published in the Government Gazette regulating or prohibiting the imposition of specified fees or charges on energy consumers. Energy licensees (retailers) are required to comply with an Order, which expressly voids contractual terms and conditions between retailers and consumers to the extent that these are inconsistent with an Order.

These amendments engage the Charter right to property.

Right to property (section 20 of the Charter)

Section 20 of the Charter provides that a person must not be deprived of that person’s property other than in accordance with the law. As a contractual right could be considered a property right, the EI Act and GI Act amendments engage this right. The voiding of contractual terms and conditions which are inconsistent with an Order may deprive persons of their property rights in relation to those energy supply contracts. However, the deprivation of property is confined to the circumstances set out in the amendments. Any deprivation is for the legitimate purpose of ensuring energy consumers are not charged administration fees, such as charges for providing a paper bill. I am satisfied that any deprivation of property would be in accordance with the law and not limit property rights under the Charter.

MRSD Act amendments

Clause 145 provides for a time-limited statutory continuation of the Hazelwood mining licence from 10 September 2026 until the declared mine rehabilitation plan for the Hazelwood mine site is approved by the Secretary to the Department of Energy, Environment and Climate Action. I note that the licence holder is a body corporate to which Charter rights do not apply (by virtue of section 6(1) of the Charter which provides that only natural persons have human rights).

The Hazelwood coal mine in the Latrobe Valley ceased mining in 2017 and is now undergoing long term rehabilitation regulated under the MRSD Act. Hazelwood is a declared mine, recognised as a complex, high-risk site that requires ongoing rehabilitation to address significant residual risks including spontaneous combustion, geotechnical instability and water management issues. The mining licence contains requirements to implement active risk controls for fire, slope stability and water systems, and to comply with regulatory directions. The mining licence is being extended so that these regulatory controls can continue until a Declared Mine Rehabilitation Plan is approved and registered.

The Bill does not authorise mining at Hazelwood but ensures continuation of the licence for rehabilitation purposes only. Other amendments to the MRSD Act expand the power to increase a rehabilitation bond and require rehabilitation liability assessment, so that this can apply to former licensees as well as current licensees.

The Charter rights that are relevant to the MRSD Act amendments are cultural rights, the right to a fair hearing and right to freedom from forced work.

Cultural rights (section 19 of the Charter)

Section 19(2) of the Charter recognises that Aboriginal persons hold distinct cultural rights and must not be denied the right to maintain their distinctive spiritual, material and economic relationship with the land and waters and other resources with which they have a connection under traditional laws and customs. Further, Aboriginal cultural rights co-exist with, and may extend beyond, rights in other legislative schemes, including the Aboriginal Heritage Act 2006, Traditional Owner Settlement Act 2010, Native Title Act 1993 (Cth) and the recently enacted Statewide Treaty Act 2025.

The amendments to continue the Hazelwood mining licence engage section 19(2) cultural rights to the extent that the licence covers some public land and land within a recognised Traditional Owner area (Gunaikurnai land). As the amendments are continuing current arrangements, any cultural rights that may be exercised now, can continue to be exercised after the amendments take effect. Activities such as issuing a mining licence or varying a mining licence to expand the mine’s footprint would trigger procedural rights under the Traditional Owner Settlement Act 2010 and Native Title Act 1993 (Cth). In this circumstance, these procedural rights would not be triggered given the mining licence is being extended and doing so does not create a right to mine. It is also noted that there are requirements for consultation with Traditional Owners on Declared Mine Rehabilitation Plans under the MRSD Act and Mineral Resources (Sustainable Development) (Mineral Industries) Regulations 2019, which are not impacted by the proposed amendments. In my view these amendments do not limit section 19(2) cultural rights.

Right to a fair hearing (section 24)

In interpreting the right to a fair hearing broadly, as explained above, the right may be engaged due to the extension of the Hazelwood mine licence by clause 145 of the Bill that would otherwise expire and, as a result, natural persons continue to carry out mine rehabilitation activities. However, the right is not limited as it is necessary in the interest of rehabilitating the land so that the site is safe, stable and sustainable and ongoing risks are minimised following the long-term mining activity that was previously undertaken at the site.

Freedom from forced work (section 11)

In addition, in my view the right to freedom from forced work is not limited by clause 145 of the Bill, as any labour required by natural persons to undertake mine rehabilitation activities under the extended licence would fall within the scope of the exception to the prohibition in section 11(3) of the Charter, namely work or service that forms part of normal civil obligations, as explained above.

Conclusion

In conclusion, while the Bill engages certain relevant Charter rights, I am of the view that the Bill does not limit any of these rights and is therefore compatible with the Charter.

The Hon. Lily D’Ambrosio MP

Minister for Energy and Resources

 Lily D’AMBROSIO (Mill Park – Minister for Climate Action, Minister for Energy and Resources, Minister for the State Electricity Commission) (15:08): Under the Statewide Treaty Act 2025, I table a statement of treaty compatibility:

1.   In accordance with section 66 of the Statewide Treaty Act 2025, I table a statement of Treaty compatibility for the Energy and Resources Legislation Amendment (VEET Strategic Review and Other Matters) Bill 2026 (‘the Bill’).

2.   In my opinion, the Bill is compatible with the matters set out in section 66(3)(d) of the Statewide Treaty Act 2025. I base my opinion on the reasons outlined in this statement.

Overview of the Bill

3.   This Bill amends the Victorian Energy Efficiency Target Act 2007 (VEET Act), Mineral Resources (Sustainable Development) Act 1990 (MRSD Act), Electricity Industry Act 2000 (EI Act) and Gas Industry Act 2001 (GI Act).

4.   The VEET Act provides the legislative framework for the Victorian Energy Efficiency Target Scheme, known as the Victorian Energy Upgrades (VEU) program, which supports energy efficiency in Victorian households and businesses and contributes to reducing greenhouse gas emissions. The VEU program is intended to play a key role in achieving net zero and renewable energy targets that have been legislated under the Climate Action Act 2017 and Renewable Energy (Jobs and Investment) Act 2017. The amendments to the VEET Act broaden the purpose and objects of the Act to align with the program’s future role in emission reduction measures, introduces new mechanisms to create a more flexible legal framework and expands and clarifies the Essential Services Commission’s (ESC) role and statutory functions as program regulator and administrator.

5.   The amendments to the MRSD Act provide for a time-limited statutory continuation of the Hazelwood mining licence for rehabilitation purposes only. The Hazelwood coal mine in the Latrobe Valley ceased mining in 2017 and is now undergoing long term rehabilitation regulated under the MRSD Act. Hazelwood is a declared mine, recognised as a complex, high-risk site that requires ongoing rehabilitation to address significant residual risks including spontaneous combustion, geotechnical instability and water management issues. The mining licence, which is due to expire on 10 September 2026, contains requirements to implement active risk controls for fire, slope stability and water systems, and to comply with regulatory directions. The mining licence is being extended so that these regulatory controls can continue until a Declared Mine Rehabilitation Plan is approved and registered. The Bill does not authorise mining at Hazelwood but ensures continuation of the licence for rehabilitation purposes only. Other amendments to the MRSD Act expand the power to increase a rehabilitation bond and require rehabilitation liability assessment, so that this can apply to former licensees as well as current licensees. This is consistent with other provisions in the MRSD Act related to rehabilitation that apply to both current and former licensees, for example the process for varying a rehabilitation plan, and will improve the ability to regulate rehabilitation that continues after licence expiry.

6.   The amendments to the EI Act and GI Act clarify that pricing Orders under those Acts are not limited to standing offers, and can include regulating any tariff for the sale of electricity and gas to prescribed customers or a prescribed class of customers; introduce a power for the Governor in Council to prohibit electricity and gas retailers from charging specified groups of customers specified types of administrative fees; align the GI Act with the EI Act requiring persons who are exempt under an Order, to be listed on the Essential Services Commission’s register of exempt persons; and correct a typographical error.

Consultation with the First Peoples’ Assembly of Gellung Warl

7.   Due to the recent establishment of the First Peoples’ Assembly of Gellung Warl, it was not possible to give the First Peoples’ Assembly the opportunity to advise on the Bill or otherwise make representations about the effect of the Bill on First Peoples.

Compatibility of the Bill with each of the objects in section 66(3)(d) of the Statewide Treaty Act 2025

8.   I have considered whether the Bill is compatible with the following objects set out at section 66(3)(d) of the Statewide Treaty Act 2025:

8.1 advancing the inherent rights and self‑determination of First Peoples; and

8.2 addressing the unacceptable disadvantage inflicted on First Peoples by the historic wrongs and ongoing injustices of colonisation; and

8.3 ensuring the equal enjoyment of human rights and fundamental freedoms by First Peoples.

9.   The amendments to the VEET Act do not in their terms deal with First Peoples and their practical operation is not expected to have any differential effect on First Peoples. As explained in the overview, the amendments are directed to broadening and creating more flexibility in the legislative framework supporting energy efficiency measures under the VEU program. Following amendments made by the Bill, the impacts of specific activities under the VEU program will be separately considered before an activities order under the VEET Act is made to approve them.

10.   The Hazelwood mining licence that is continued for rehabilitation purposes by the amendments to the MRSD Act covers some public land and land within a recognised Traditional Owner area (Gunaikurnai land). Activities such as issuing a mining licence or varying a mining licence to expand the mine’s footprint would trigger procedural rights under the Traditional Owner Settlement Act 2010 (Vic) and Native Title Act 1993 (Cth). In this circumstance, these procedural rights would not be triggered given the mining licences is being extended and doing so does not create a right to mine. It is also noted that there are requirements for consultation with Traditional Owners on Declared Mine Rehabilitation Plans under the MRSD Act and Mineral Resources (Sustainable Development) (Mineral Industries) Regulations 2019, which are not impacted by the proposed amendments. The other amendments to the MRSD Act (described at paragraph 5 above) do not in their terms deal with First Peoples. Therefore, the amendments to the MRSD Act do not affect any of the objects in section 66(3)(d) of the Statewide Treaty Act 2025.

11.   The amendments to the EI Act and GI Act do not in their terms deal with First Peoples. As explained in the overview, they clarify pricing orders made under those Acts and enable orders to be made under those Acts relating to fees and charges to protect energy consumers and enable a register of gas exempt persons. The scope and application of any order made under those Acts specifying groups of consumers will be considered separately at the time of making those orders.

Conclusion

12.   I consider the Bill does not affect any of the objects specified in section 66(3)(d) of the Statewide Treaty Act 2025 and is therefore compatible with each of those objects.

Lily D’Ambrosio MP

Minister for Energy and Resources

 Lily D’AMBROSIO (Mill Park – Minister for Climate Action, Minister for Energy and Resources, Minister for the State Electricity Commission) (15:08): I move:

That this bill be now read a second time.

I ask that my second-reading speech be incorporated into Hansard.

Incorporated speech as follows:

The Victorian Energy Efficiency Target Act 2007 (VEET Act) establishes the Victorian Energy Upgrades (VEU) program, the Victorian Government’s flagship energy savings and emissions reduction program. It is the largest energy efficiency program in Australia. The VEU program helps Victorians to reduce their energy bills and greenhouse gas emissions by providing access to discounted energy efficient products and services. The VEU program is a major contributor to the achievement of Victoria’s emission reduction targets established under the Climate Change Act 2017.

Since 2009, the VEU program has helped nearly 2.6 million Victorian homes and businesses access energy-saving technologies and upgrades, equivalent to abating more than 93 million tonnes of greenhouse gas emissions. The VEU program is one of the largest contributors to emissions reduction in the Victorian economy, driving investment, employment and innovation in industries that supply energy efficient products and services.

The VEU program has provided over $600 million in discounts for households and businesses to access more efficient and electric appliances. Between 2021 and 2025, the VEU program was estimated to avoid $3.8 billion1 in energy system costs, so even after accessing appliance discounts and getting real bill savings, every single Victorian is also avoiding extra energy costs they would have had to pay if the VEU did not exist to help drive down electricity demand.

While the program’s success is evident, it is important to recognise that its operating environment has significantly changed since launching in 2009. Major developments in the energy sector have occurred. When the VEET Act was introduced in 2007, only 3% of Victoria’s electricity came from renewables, and most was generated by brown coal. The VEU program now operates in a significantly different energy landscape. When the VEET Act was introduced, Victoria did not have renewable energy or emissions reduction targets. Victoria is now generating about 44% from renewables with 29% of homes generating their own solar energy, driven significantly by government’s incentives through the Solar Homes program, delivering over 9% of Victoria’s electricity generation in 2023–24.

Energy efficiency still has great value in the future of the VEU program as reduced electricity consumption from energy efficient installations continue to provide significant benefits for Victorian energy consumers, such as lower bills, increased generation capacity, and reduced infrastructure transmission and distribution costs.

After more than 16 years of the program’s existence and in recognition of the changing energy landscape, in May 2024, the Victorian Government announced a Strategic Review of the VEU program. The review established a strong evidence base and robust governance arrangements to guide and inform its recommendations. Extensive stakeholder consultation was undertaken to ensure that its findings reflected diverse perspectives, as well as industry and consumer needs.

The review confirmed that the VEU program has been, and will remain, a central part of Victoria’s energy transition, not just in supporting electrification through energy efficiency, but also in transitioning Victorian households and businesses away from gas or increasing gas efficiency when fuel switching is not possible.

With the VEU program’s extension to 2045, this Bill will modernise the VEU program to ensure households and businesses can continue to cut their energy costs and reduce their emissions. This Bill will expand the VEU program, embed flexibility in its legal framework to enhance program integrity, strengthening its responsiveness for the future of the energy transition.

Reforms enabling expansion of the VEU program

The Bill proposes to expand and strengthen the VEU program so that it can better support activities delivering system-wide benefits beyond emissions reduction and ensure that the VEU program can reach more Victorians.

Currently, the VEU program only includes activities that directly reduce emissions. Activities and technologies that indirectly reduce emissions by supporting complementary Government policy initiatives, such as electrification-enabling and flexible demand technologies, are ineligible to generate certificates in the program.

The current legal framework also does not allow for the use of targeted activity measures, such as offering greater incentives for the adoption of certain technologies, or to assist certain cohorts to engage with the VEU program. Victorian cohorts experiencing vulnerability, including low-income households and renters, may not be able to access the benefits of electrification or energy savings through the VEU program as easily as others.

These gaps limit the VEU program’s potential to contribute to achieving Victorian energy policy and affordability objectives. The Strategic Review Bill will change this. The Bill will modernise the legal framework so that it recognises a range of environmental, economic and social benefits beyond direct emissions reduction, to meet Victoria’s clean economy goals.

The Victorian Energy Efficiency Target Act will be renamed the Victorian Energy Upgrades Target Act. The Act’s purpose and objects will be updated to establish and reflect VEU program’s broader role in Victoria’s energy transition: not just energy efficiency, but the efficient and effective use of energy.

Reforms enhancing the VEU program’s flexibility and responsiveness

The Bill will strengthen flexibility and responsiveness in the legal framework to ensure that the VEU program can adapt as energy systems and market conditions change, delivering energy bill savings for all Victorians.

The Bill will simplify this process for the bringing in of new activities by enabling activities to be declared through Activities Orders, instead of the Act’s Regulations, which is an overly burdensome and time heavy process.

VEU targets are based on modelling and assumptions about anticipated activity uptake, typically in 5 yearly cycles. When actual activity diverges from assumptions made in VEU target-setting, this significantly increases the risk of volatile certificate prices affecting compliance costs for obligated parties, installation costs for industry and ultimately the discounts available to customers.

The Bill addresses the risks associated with an exceptional divergence from the set targets by enabling the Government to adjust the VEU program targets by Order when needed, under certain circumstances, to safeguard the integrity and stability of the market.

Further, the Bill will allow relevant entities to carry forward 10% of their certificate liability into the next year. Requiring payment the following year preserves the integrity of the annual target by ensuring that liabilities will still be met. This practical flexibility in supporting obligated parties to achieve compliance, helps ensure on-the-ground delivery of activities and certificates, contributing to the scheme’s intended outcomes.

Reforms enhancing the VEU program’s integrity

Customers are at the heart of the VEU program. It is a key priority to enhance program integrity and reduce the risk of consumer harm.

The Bill enhances the regulator’s monitoring and enforcement capability, clarifies responsibilities, improves transparency around rebates and certificate transfer prices, and supports stronger complaints and dispute resolution pathways to safeguard VEU customers.

The Bill also creates the ability to set training and competency requirements for highly complex, specialised or sensitive upgrades or services. This gives assurance that only suitably qualified persons undertake activities.

The regulator will be empowered to reduce red tape for industry by granting accreditation for longer periods, shifting focus to ongoing compliance after accreditation, and providing guidelines to give clarity to program participants and ensure consistent administration.

The Bill also clarifies responsibilities of Accredited Providers, by requiring details of discounts provided to customers.

The Bill also strengthens complaint and dispute pathways by setting requirements for participants in specified activities to be members of an independent complaints and dispute resolution body. Training and competency requirements for program participants who undertake highly specialised or sensitive activities will be put in place to ensure safe and compliant delivery.

Finally, the VEU program will be reviewed by 1 October 2032 and every 5 years thereafter, to ensure that the program continues to meet its objectives until its conclusion in 2045.

The Bill’s suite of reforms will modernise the VEU program, ensuring it remains effective in Victoria’s energy transition while continuing to deliver lower bills and energy savings for all Victorians.

In addition, the Bill contains the following additional amendments:

Amendments to the Electricity Industry Act 2000 (EIA) and the Gas Industry Act 2001 (GIA)

The Bill will include amendments to strengthen energy consumer protections in the EIA and GIA to give effect to critical energy consumer protection reforms agreed at the Energy and Climate Ministerial Council (ECMC) on 19 July 2024. The Bill will include a clarification that Orders made under section 13 of the EIA and section 21 of the GIA are not limited to the standing offers and can include regulating any tariff for the sale of electricity and gas to prescribed customers or a prescribed class of customers. This allows additional pricing Orders to be made to regulate prices without any unintended consequences for the Victorian Default Offer (VDO).

The Bill will also introduce a new head of power to enable the Governor in Council on the recommendation of the Minister to regulate or prohibit licensees from imposing specified fees or charges on a customer or class of customers.

Finally, the Bill will align the GIA with the EIA process, requiring persons who are exempt under an Order, to be listed on the Essential Services Commission’s register of exempt persons. This will ensure consistency across both frameworks and provide the ESC and the public with visibility of gas exempt persons. The Victorian Government is committed to maintaining Victoria’s strong energy consumer protections and these reforms will ensure that the energy law operates as intended.

Amendments to the Mineral Resources (Sustainable Development) Act 1990 (MRSD Act)

The Bill includes amendments to maintain effective regulation of rehabilitation at Hazelwood mine until the Hazelwood Declared Mine Rehabilitation Plan is approved and becomes the main regulatory instrument governing rehabilitation at the site. The Bill will ensure Hazelwood’s mining licence continues to apply until this occurs. Doing so does not authorise mining at Hazelwood mine and the licence will only regulate rehabilitation activities at the site.

The amendments also preserve the ability to increase rehabilitation bonds where rehabilitation is not complete after licence expiry.

This will ensure that site-specific requirements for managing risks and the associated statutory enforcement framework will continue to apply. Regulatory continuity supports the effective management of public safety, environmental and financial risks.

I commend the Bill to the house.

 James NEWBURY (Brighton) (15:09): I move:

That the debate be adjourned.

Motion agreed to and debate adjourned.

Ordered that debate be adjourned for two weeks. Debate adjourned until Thursday 2 July.