Bundaberg Regional Council has developed a policy to ensure the community gains significant benefits from renewable energy projects in the Bundaberg Region, as required by State Government.
Recent changes to state legislation for large-scale renewable energy and battery storage developments require developers to complete a Social Impact Assessment (SIA) and establish a Community Benefit Agreement (CBA) with the relevant Local Government before lodging a development application with the State Government.
Under the legislative changes, the State Assessment and Referral Agency (SARA) replaced Council as assessment manager for such development applications.
At its Ordinary Meeting on Tuesday 28 April, Council adopted the Renewable Energy Community Benefit Agreement Policy to provide a framework for the consistent negotiation and execution of CBAs.
Mayor Helen Blackburn said the policy would ensure that CBAs proposed by the developers of renewable energy projects would meet the needs and priorities of the local community.
“If we are to have renewable energy and battery storage developments in our region, it is essential that they contribute directly to the region’s long-term social, economic and environmental wellbeing,” Mayor Blackburn said.
“Each proposed development will have a CBA that reflects the community needs, expectations and aspirations.
“Through this framework, Council will secure a measurable and enduring legacy for the community.”
The policy sets out minimum rates to calculate the annual value of the Community Benefit Contributions for a project and the preferred form of the contribution.
“Community Benefit Contributions commence at construction and continue until the facility is decommissioned, ensuring benefits for the lifetime of the facility,” Mayor Blackburn said.
“Under the formulation, there is the potential for the agreements to generate significant long-term benefit for the community, based on the size of the energy production.
“The contributions generated will support local neighbourhoods immediately in the vicinity of the project and the wider community informed by a Social Impact Assessment completed for the project.
“This injection of funding would support groups, clubs, schools and not-for-profit organisations.
“The contributions could also be used to address the broader impacts of developments by funding region-wide infrastructure projects and capital works program, such as road upgrades, water supply and sewer services, environmental protections and community facilities.”
While Council would review, negotiate and execute CBAs for a proposed renewable energy project in accordance with the adopted policy, the project itself would be submitted to the State Government for development assessment as required by legislation.
Administration fees to be offset
To offset costs to Council in managing the Renewable Energy Community Benefit Scheme, the policy establishes a new cost recovery fee of $40,000 for developers lodging an application for a CBA negotiation.
The policy also imposes an annual administration fee of up to 5% of the value of the annual Community Benefit Contribution, which is payable in addition to the contribution.
“By implementing the additional administrative charge, Council is seeking to reduce the burden on ratepayers and ensure the full benefit from these developments flow to the community,” Mayor Blackburn said.
Per the State Government’s legislative changes, the policy applies to all wind farm developments, large-scale solar farms producing 1MW or more, and battery storage facilities producing 50MW or more proposed for the Bundaberg Region.
It also applies to developments in a neighbouring Local Government Area where the development has been determined to have a social impact in the Bundaberg Region.
