Portfolio Additional Estimates Statements 2015-16

Part C: Agency Additional Estimates Statements — Agency name

PortfolioAdditional

Estimates Statements 2015-16

EnvironmentPortfolio

Explanations of Additional Estimates 2015-16

ISBN 978-1-921069-00-0

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Greg Hunt

PARLIAMENT HOUSE
CANBERRA 2600

President of the Senate

Australian Senate

Parliament House

CANBERRA ACT 2600

Speaker

House of Representatives

Parliament House

CANBERRA ACT 2600

Dear Mr President

Dear Mr Speaker

I hereby submit Portfolio Additional Estimates Statements in support of the
2015-16Additional Estimates for the Environment Portfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the funding requirements being sought for the Portfolio.

I present these statements by virtue of my ministerial responsibility for accountability to the Parliament and, through it, the public.

Yours sincerely

Greg Hunt

Abbreviations and conventions

The following notations may be used:

NEC/necnot elsewhere classified

nil

..not zero, but rounded to zero

nanot applicable (unless otherwise specified)

nfpnot for publication

$m$ million

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

Enquiries

Should you have any enquiries regarding this publication please contact Chief Finance Officer in the Department of the Environment on (02)6274 1812.

Links to Portfolio Budget Statements (including Portfolio Additional Estimates Statements and Portfolio Supplementary Additional Estimates Statements) can be located on the Australian Government Budget website at

User guide
to the
Portfolio Additional
Estimate Statements

User Guide

The purpose of the 2015-16 Portfolio Additional Estimates Statements (PAES), like that of the Portfolio Budget Statements, is to inform Senators and Members of Parliament of the proposed allocation of resources to Government outcomes by entities within the portfolio. The focus of the PAES differs from the Portfolio Budget Statements in one important aspect. While the PAES include an Entity Resource Statement to inform Parliament of the revised estimate of the total resources available to an entity, the focus of the PAES is on explaining the changes in resourcing by outcome since the Budget. As such, the PAES provides information on new measures and their impact on the financial and/or nonfinancial planned performance of programmes supporting those outcomes.

The PAES facilitate understanding of the proposed appropriations in Appropriation Bills (No. 3andNo. 4)2015-16. In this sense the PAES is declared by the Additional Estimates Appropriation Bills to be a ‘relevant document’ to the interpretation of the Bills according to section 15AB of the Acts Interpretation Act 1901.

Whereas the MidYear Economic and Fiscal Outlook(MYEFO) 2015-16 is a midyear budget report which provides updated information to allow the assessment of the Government’s fiscal performance against its fiscal strategy, the PAES update the most recent budget appropriations for entities within the portfolio.

Structure of the Portfolio Additional Estimates Statements

The PAES are presented in three parts with subsections.

User guide
Provides a brief introduction explaining the purpose of the PAES.
Portfolio overview
Provides an overview of the portfolio, including a chart that outlines the outcomes for entities in the portfolio.
EntityAdditional Estimates Statements
A statement (under the name of the entity) for each entity affected by Additional Estimates.
Section 1: Entityoverview and resources / This section details the changes in total resources available to an entity, the impact of any measures since Budget, and impact ofAppropriation Bill No. 3 and No. 4.
Section 2: Revisions to outcomes and planned performance / This section details changes to Government outcomes and/or changes to the planned performance of entityprogrammes.
Section 3: Explanatory tables and budgeted financial statements / This section contains updated explanatory tables on special account flows and staffing levels and revisions to the budgeted financial statements.
Portfolio glossary / Explains key terms relevant to the Portfolio.
Index (Optional) / Alphabetical guide to the Statements

Contents

Portfolio overview...... 3

Department of the Environment...... 10

Bureau of Meteorology...... 66

Clean Energy Regulator...... 88

Sydney Harbour Federation Trust...... 110

Portfolio overview

Portfolio Overview

Portfoliooverview

Since the 2015-16 Budget, the structure of the Portfolio has changed through the Administrative Arrangements Order which took effect on 21 September 2015 and 30 September 2015. These changes include:

Responsibility for the new Cities and the Built Environment agenda.
The transfer of the Clean Energy Finance Corporation to the Portfolio from the Treasury Portfolio.
The transfer of the Australian Renewable Energy Agency to the Portfolio from the Industry, Innovation and Science Portfolio.
The transfer of responsibility for water resources programmes and policy and the Water Efficiency Labelling and Standards scheme from the Portfolio to the Agriculture and Water Resources Portfolio.The Department will continue to develop and implement policy and programmes related to environmental water use and the functions of the Commonwealth Environmental Water Holder, including the protection and conservation of wetlands and freshwater ecosystems consistent with international obligations.
The transfer of the Murray-Darling Basin Authority from the Portfolio to the Agriculture and Water Resources Portfolio.

On 16 June 2015 the National Water Commission ceased operations.

A revised Portfolio structure reflecting these changes is presented at Figure 1.

The Portfolio is led by the Minister for the Environment and the Minister for Cities and the Built Environment.

Figure 1: EnvironmentPortfolio Structure and Outcomes

Portfolio resources

Table 1 shows those entities reporting in the PAESand the additional resourcesprovided to the Portfolio in the 2015-16 budget year, by entity.

Table 1: Portfolio Resources (2015-16 Additional Estimates)

Appropriation / Appropriation / Special / Receipts / Total
Bill No. 3 / Bill No. 4 / appropriation
($m) / ($m) / ($m) / ($m) / ($m)
Department of the
Environment
Administered appropriations / 0.3 / - / - / - / 0.3
Departmental appropriations / 9.0 / - / - / - / 9.0
Total: / 9.3
Bureau of Meteorology
Departmental appropriations / 1.0 / - / - / - / 1.0
Total: / 1.0
Clean Energy Regulator
Administered appropriations / 1.1 / - / - / - / 1.1
Total: / 1.1
Sydney Harbour Federation Trust
Departmental appropriations / - / 20.0 / - / - / 20.0
Total: / 20.0
Portfolio total / 31.4
Resources available within portfolio: / 31.4

Note: this table excludes the impact of measures that are not for publication (nfp).

Portfolio Overview

Entityadditional estimates statements

Department of the Environment...... 10

Bureau of Meteorology...... 66

Clean Energy Regulator...... 88

Sydney Harbour Federation Trust...... 110

Department of the Environment Additional Estimates Statements

Department of the Environment

Section 1: Entityoverview and resources...... 12

1.1 Strategicdirection statement...... 12

1.2 Entityresource statement...... 13

1.3 Entity Measures...... 16

1.4 Additional estimates and variations...... 18

1.5 Breakdown of additional estimates by appropriation bill...... 23

Section 2: Revisions to outcomes and planned performance...... 25

2.1 Outcomes and performance information...... 25

Section 3: Explanatory tables and budgeted financial statements...... 51

3.1 Explanatory tables...... 51

3.2 Budgeted financial statements...... 53

Department of the Environment Additional Estimates Statements

Department of the Environment

Section 1: Entityoverview and resources

1.1Strategic direction statement

The Department of the Environment advises on, and implements, environment policy to support the Government in achieving a healthy environment, strong economy and thriving community now and into the future. The programmes and initiatives of the Government work to protect and improve the environment through the four pillars of the Government’s Plan for a Cleaner Environment - Clean Air, Clean Land, Clean Water and Heritage Protection.

The Department’s responsibilities have changed since the 2015-16 Budget as a result of the Administrative Arrangements Order that took effect on 21 September 2015 and 30 September 2015. This is outlined further below.

The Department has established a Cities Taskforce to develop and implement the Government’s new Cities Agenda. The Cities Agenda aims to improve the productivity, liveability and accessibility of cities through reforms that stimulate economic growth and ensure the wellbeing of current and future generations of Australians.
The responsibility for water resources policy and programmes transferred to the Agriculture and Water Resources Portfolio. The Department will continue to develop and implement policy and programmes related to environmental water use and the functions of the Commonwealth Environmental Water Holder, including the protection and conservation of wetlands and freshwater ecosystems consistent with international obligations.
The Clean Energy Finance Corporation and the Australian Renewable Energy Agency were transferred to the Portfolio. On 28 October 2015 the Minister for the Environment announced the creation of the Office of Climate Change and Renewables Innovation. This Office brings together the Clean Energy Regulator, the Clean Energy Finance Corporation, the Australian Renewable Energy Agency, the Climate Change Authority and the climate change and renewable energy functions in the Department.

A full outline of the Department’s Strategic Direction can be found in the 2015-16 Portfolio Budget Statements.

1.2Entityresource statement

The Entity Resource Statement details the resourcing for the Department of the Environment at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2015-16 Budget year, including variations through Appropriation Bill No.3andNo.4,Special Appropriations and Special Accounts.

Table 1.1: Department of the Environmentresource statement — Additional Estimates for 2015-16 as at Additional Estimates February2016

Actual
Available
Appropriation
2014-15
$'000 / Estimate as
at Budget
2015-16
$'000 / Proposed
Additional
Estimates
2015-16
$'000 / Total estimate
at Additional
Estimates
2015-16
$'000
Ordinary annual services (a)
Departmental appropriation
Prior year appropriations (b) / 83,648 / 79,629 / - / 79,629
Departmental appropriation (c) / 403,902 / 388,000 / 8,974 / 396,974
s75 transfer from Industry (d) / - / 4,688 / - / 4,688
s75 transfer to Agriculture (e) / (4,614) / (16,620) / - / (16,620)
Payments to corporate entities (f, g) / 41,045 / 40,470 / - / 40,470
s74 Retained revenue receipts (h) / 65,111 / 57,078 / (16,295) / 40,783
Total / 589,092 / 553,245 / (7,321) / 545,924
Administered expenses
Outcome 1 - Clean Land / 427,218 / 443,070 / - / 443,070
Outcome 2 - Clean Air / 5,464 / 6,317 / 272 / 6,589
s75 transfer from Industry (d) / - / 182,180 / - / 182,180
Outcome 4 - Clean Water (e) / 258,674 / 361,613 / - / 361,613
s75 transfer to Agriculture (e) / (25,852) / (315,885) / - / (315,885)
Total / 665,504 / 677,295 / 272 / 677,567
Total ordinary annual services
including Special Accounts / 1,254,596 / 1,230,540 / (7,049) / 1,223,491
Total ordinary annual services
excluding Special Accounts / A / 970,645 / 920,883 / (7,049) / 913,834
Other services (i)
Administered expenses
Specific payments to States,
ACT, NT and local government
Outcome 1 - Clean Land / 120 / - / - / -
Outcome 4 - Clean Water / 5,500 / 2,100 / - / 2,100
s75 transfer to Agriculture (e) / (5,500) / (2,100) / - / (2,100)
Total / 120 / - / - / -
Departmental non-operating
Prior year appropriations (b) / 16,065 / 5,912 / - / 5,912
Equity injections (j) / 2,745 / 645 / - / 645
Total / 18,810 / 6,557 / - / 6,557
Administered non-operating
Prior year appropriations (b) / 131,368 / 61,402 / - / 61,402
s75 transfer to Agriculture (e) / - / (37,780) / - / (37,780)
Administered assets and liabilities / 62,204 / 65,606 / - / 65,606
s75 transfer to Agriculture (e) / (37,780) / (61,746) / - / (61,746)
Total / 155,792 / 27,482 / - / 27,482
Total other services / B / 174,722 / 34,039 / - / 34,039
Total available annual
appropriations / 1,429,318 / 1,264,579 / (7,049) / 1,257,530

Table 1.1: Department of the Environment Resource Statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 (continued)

Actual
Available
Appropriation 2014-15
$'000 / Estimate as
at Budget
2015-16
$'000 / Proposed
Additional
Estimates
2015-16
$'000 / Total estimate
at Additional
Estimates
2015-16
$'000
Special appropriations
Special appropriations limited by
criteria/entitlement
Ozone Protection and Synthetic Greenhouse
Gas Management Act 1989 / 948 / 1,000 / 1,000 / 2,000
Public Governance, Performance and
Accountability (Consequential and
Transitional Provisions) Act 2014 / 4,305 / - / - / -
Public Governance, Performance and
Accountability Act 2013 - s77 (k) / 239 / - / 180 / 180
Special appropriations limited by
amount
Water Act 2007 / 15,000 / 40,000 / - / 40,000
s75 transfer to Agriculture (e) / - / (38,175) / - / (38,175)
Australian Renewable Energy Agency
Act 2011 / - / - / - / -
s75 transfer from Industry (d) / - / 341,293 / - / 341,293
Total special appropriations / C / 20,492 / 344,118 / 1,180 / 345,298
Total appropriations excluding
Special Accounts / 1,165,859 / 1,299,040 / (5,869) / 1,293,171
Special Accounts
Opening balance (l) / 488,788 / 496,454 / - / 496,454
s75 transfer from Industry (d) / - / 4,919,000 / - / 4,919,000
s75 transfer to Agriculture (e) / - / (55,304) / - / (55,304)
Appropriation receipts (m) / 283,951 / 309,657 / - / 309,657
s75 transfer to Agriculture (e) / - / (215) / - / (215)
Non-appropriation receipts to
Special Accounts (n) / 21,274 / 14,093 / 11,153 / 25,246
s75 transfer from Industry (d) / - / 388,873 / - / 388,873
s75 transfer to Agriculture (e) / - / (1,594) / - / (1,594)
Total special accounts / D / 794,013 / 6,070,964 / 11,153 / 6,082,117
Total resourcing A+B+C+D / 1,959,872 / 7,370,004 / 5,284 / 7,375,288
Less appropriations drawn from
annual or special appropriations above
and credited to special
accounts / (283,951) / (309,442) / - / (309,442)
and payments to corporate entities
through annual appropriations / (41,045) / (40,470) / - / (40,470)
Total net resourcing for the
Department of the Environment / 1,634,876 / 7,020,092 / 5,284 / 7,025,376

(a)Appropriation Act (No. 1)2015-16andAppropriation Bill (No. 3)2015-16.

(b)Estimated adjusted balance carried from previous year for annual appropriations.

(c)Includes an amount of $25.112 million in 2015-2016 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.

(d)The responsibility for renewable energy technology development and the Australian Renewable Energy Agency transferred from the Department of Industry, Innovation and Science as a result of the amended Administrative Arrangements Order dated 21 September 2015.

Table 1.1: Department of the Environment Resource Statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 (continued)

(e)The responsibility for water policy and resources transferred to the Department of Agriculture and Water Resources as a result of the amended Administrative Arrangements Order dated 21 September 2015 and 30 September 2015.

(f)'Corporate entities' are corporate Commonwealth entities and Commonwealth companies as defined under the Public Governance, Performance and Accountability (PGPA) Act 2013.

(g)As per the Environment Protection and Biodiversity Conservation Act 1999 section 514S, the Department of the Environment is directly appropriated the Director of National Parks' appropriations, which is then allocated to the Director of National Parks by the Secretary.

(h)Estimated retained revenue receipts under section 74 of the PGPA Act 2013.

(i)Appropriation Act (No.2) 2015-2016 and Appropriation Bill (No. 4) 2015-2016.

(j)This excludes the impact of the measures Antarctica— acquisition of new icebreaker and Antarctica Aurora Australis — Life Extension. These measures are not for publication due to commercial-in-confidence considerations.

(k)Repayments not provided for under other appropriations.

(l)Opening balance for special accounts (less 'special public money' held in accounts such as Services for Other Entities and Trust Moneys account as they do not constitute funds available to the Department for operations) adjusted to align with 2014-15 Annual Report. For further information on special accounts see table 3.1.1.

(m)Appropriation receipts from the Department of the Environment annual and special appropriations included above.

(n)Excludes the statutory credits to the Water for the Environment Special Account.

Reader note: All figures are GST exclusive. These figures may not match figures in the cash flow statement.

Third party paymentsfrom and on behalf of other entities

Estimate at / Estimate at
Budget / Additional
Estimates
2015-16 / 2015-16
$'000 / $'000
Payments made to other entities for the provision of services
(disclosed above) / 29,340 / 25,958
Payments made to corporate entities within the portfolio
Director of National Parks / Appropriation Act (No.1) 2015-2016 / 40,470 / 40,470
Sydney Harbour Federation Trust / Appropriation Bill (No.4)2015-2016 / - / 20,000

1.3Entity Measures

Table 1.2 summarises new Government measures taken since the 2015-16 Budget. The table is split into revenue, expense and capital measures, with the affected programme identified.

Table 1.2: Department of the Environment2015-16measures since Budget

Programme / 2015-16
$'000 / 2016-17
$'000 / 2017-18
$'000 / 2018-19
$'000
Revenue measures
Revised charging arrangements (a) / 1.6
Administered revenues / - / 340 / 1,015 / 1,041
Total / - / 340 / 1,015 / 1,041
Total revenue measures
Administered / - / 340 / 1,015 / 1,041
Total / - / 340 / 1,015 / 1,041
Expense measures
National Landcare Programme — efficiencies (b) / 1.1
Administered expenses / - / - / - / (2,750)
Total / - / - / - / (2,750)
Green Army — project cap (b) / 1.1
Administered expenses / - / (44,679) / (90,300) / (182,516)
Total / - / (44,679) / (90,300) / (182,516)
International Whale and Marine Mammal Conservation Initiative — additional funding (b) / 1.2
Departmental expenses / 1,691 / - / - / -
Total / 1,691 / - / - / -
Revised charging arrangements (a) / 1.6
Departmental expenses / - / 49 / 49 / 49
Total / - / 49 / 49 / 49
Cities and the Built Environment Taskforce — establishment (b) / 1.7
Departmental expenses / 4,109 / - / - / -
Total / 4,109 / - / - / -

Table 1.2: Department of the Environment2015-16 measures since Budget (continued)

Programme / 2015-16
$'000 / 2016-17
$'000 / 2017-18
$'000 / 2018-19
$'000
National Wind Farm Commissioner and Independent Scientific Committee on Wind Turbines — establishment (b) / 2.1
Administered expenses / 22 / 29 / 29 / 15
Departmental expenses / 519 / 818 / 825 / 279
Total / 541 / 847 / 854 / 294
Resolution of Legal Matter (c)
Departmental expenses / nfp / - / - / -
Total / nfp / - / - / -
Administered / 22 / (44,650) / (90,271) / (185,251)
Departmental / 6,319 / 867 / 874 / 328
Total expense measures / 6,341 / (43,783) / (89,397) / (184,923)
Capital measures
Antarctica — acquisition of new icebreaker (d) / 3.1
Departmental capital / nfp / nfp / nfp / nfp
Total / nfp / nfp / nfp / nfp
Antarctica — Aurora Australis life extension works (e) / 3.1
Departmental capital / - / - / nfp / -
Total / - / - / nfp / -
Total capital measures
Departmental / nfp / nfp / nfp / nfp
Total / nfp / nfp / nfp / nfp

Prepared on a Government Financial Statistics (fiscal) basis.

(a)This measure was announced in the 2015-16 Mid-Year Economic and Fiscal Outlook. Revenue is expected to increase as a result moving from partial to full cost recovery of services provided in administering the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and associated Regulations. Cost recovery arrangements for the Australian Bird and Bat Banding Scheme will cease.

(b)This measure was announced in the 2015-16 Mid-Year Economic and Fiscal Outlook.

(c)This measure was announced in the 2015-16 Mid-Year Economic and Fiscal Outlook. The expenditure for this measure is not for publication (nfp) in accordance with the terms of the legal agreement.

(d)This measure was announced in a joint press release of 29 October 2015 issued by the Prime Minister and the Minister for the Environment. The expenditure for this measure is not for publication (nfp) due to commercial-in-confidence considerations.