Portfolio Additional Estimates Statements 2016-17

Part C: Agency Additional Estimates Statements — Agency name

PortfolioAdditional

Estimates Statements 2016-17

Environment and EnergyPortfolio

Explanations of Additional Estimates 2016-17

ISBN 978-1-921069-04-8

This publication is available for your use under aCreative Commons BY Attribution 3.0 Australialicence, with the exception of the Commonwealth Coat of Arms, the Department of the Environment and Energy logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from

Use of Department of the Environment and Energy material under aCreative Commons BY Attribution 3.0 Australialicence requires you to attribute the work (but not in any way that suggests that the Department of the Environment and Energy endorses you or your use of the work).

Department of the Environment and Energy material used 'as supplied'

Provided you have not modified or transformed Department of the Environment and Energy material in any way including, for example, by changing the Department of the Environment and Energy text; calculating percentage changes; graphing or charting data; or deriving new statistics from published Department of the Environment and Energy statistics – then the Department of the Environment and Energy prefers the following attribution:

Source: The Australian GovernmentDepartment of the Environment and Energy

Derivative material

If you have modified or transformed Department of the Environment and Energy material, or derived new material from those of the Department of the Environment and Energy in any way, then the Department of the Environment and Energy prefers the following attribution:

Based on the Australian Government Department of the Environment and Energy data

Use of the Coat of Arms

The terms under which the Coat of Arms can be used are set out on the It’s an Honour website (see

Other Uses

Inquiries regarding this licence and any other use of this document are welcome at: First Assistant Secretary, Policy Analysis and Implementation Division in the Department of the Environment and Energy on (02) 6274 1590.

The Hon Josh Frydenberg MP

Minister for the Environment and Energy

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
2016-17Additional Estimates for the Environment and Energy 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

Josh Frydenberg

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
the Chief Finance Officer in the Department of the Environment and Energy on
(02)6274 2203.

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 2016-17Portfolio 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 outcomes since the Budget. As such, the PAES provides information on new measures and their impact on the financial and/or nonfinancial planned performance of programs supporting those outcomes.

The PAES facilitate understanding of the proposed appropriations in Appropriation Bills No. 3 andNo. 4and Appropriation (Parliamentary Departments) BillNo. 2
2016-17. 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) 2016-17 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 Bills No. 3 and 4.
Section 2: Revisions to outcomes and planned performance / This section details changes to Government outcomes and/or changes to the planned performance of entityprograms.
Section 3: Special account flows and budgeted financial statements / This section contains updated explanatory tables on special account flows and staffing levels and revisions to the budgeted financial statements.

Contents

Portfolio overview

Department of the Environment and Energy

Bureau of Meteorology

Great Barrier Reef Marine Park Authority

Portfolio overview

Portfolio Overview

Portfoliooverview

Since the 2016-17 Budget, the structure of the Portfolio has changed through the Administrative Arrangements Orders which took effect on 19 July 2016 and
1 September 2016. These changes include the transfer of responsibility forenergy policy from the Industry, Innovation and Science Portfolio to the Environment and Energy Portfolio.

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

The Portfolio is led by the Minister for the Environment and Energy.

Figure 1: Environment and Energy portfolio structure and outcomes

Portfolio Overview

Entityadditional estimates statements

Department of the Environment and Energy

Bureau of Meteorology

Great Barrier Reef Marine Park Authority

Department of the Environment and Energy Additional Estimates Statements

Department of the Environment and Energy

Section 1: Entity overview and resources

1.1 Strategic direction statement

1.2 Entity resource statement......

1.3 Entity measures

1.4 Additional Estimatesand variations

1.5 Breakdown of Additional Estimates by Appropriation Bill...... 23

Section 2: Revisions to outcomes and planned performance

2. Changes to outcome and program structures

2.1 Budgeted expenses and performance for Outcome 1

2.2 Budgeted expenses and performance for Outcome 2

2.3 Budgeted expenses and performance for Outcome 3

2.4 Budgeted expenses and performance for Outcome 4

2.5 Budgeted expenses and performance for Outcome 5

Section 3: Special account flows and budgeted financial Statements

3.1 Estimates of special account flows and balances

3.2 Budgeted financial statements

Department of the Environment and Energy Additional Estimates Statements

Department of the Environment and Energy

Section 1: Entityoverview and resources

1.1Strategic direction statement

The Department of the Environment and Energy advises on, and implements, environment and energy policy to support the Government in achieving a healthy environment, strong economy and thriving community now and into the future.

The Department’s responsibilities have expanded since the 2016-17 Budget.As a result of the Administrative Arrangement Orders that took effect on 19 July 2016 and
1 September 2016,the Department is now responsible for energy policy and a new Outcome has been included in the Department’s outcome and program structure. In addition, the Department is responsible for delivering new measures announced in the 2016-17 Mid-Year Economic and Fiscal Outlook.

The followingtext outlines updates to theStrategic Direction Statement in the 2016-17 Environment Portfolio Budget Statements to reflect decisions of Government since the Budget.

Outcome 1: Conserve, protect and sustainably manage Australia’s biodiversity, ecosystems, environment and heritage through research, information management, supporting natural resource management, establishing and managing Commonwealth protected areas, and reducing and regulating the use of pollutants and hazardous substances.

The Department is implementing the Reef 2050 Long-Term Sustainability Plan and progressing actions to protect and manage the Great Barrier Reef while allowing ecologically sustainable development. From 2016-17 to 2021-22, the Australian Government has allocated funding of $101million through the National Landcare Program and is continuing to deliver the $210 million Reef Trust. The Department is delivering $0.4 million over four years from 2016-17 under the Reef 2050 Plan for emerging science and partnership priorities in consultation with the Reef 2050 Advisory Committee and Independent Expert Panel. Investment in the Reef will contribute to priority actions under the Reef 2050 Plan, including supporting ecosystem health, biodiversity, water quality, community benefits, economic benefits and governance.

The Department is administering the National Landcare Program which supports a long term approach to land management, enabling communities across Australia to take practical action to improve their local environment and productive landscapes.In the 2016-17 Budget, an additional $22.6 million was committed to the National Landcare Program from 2016-17 to 2018-19 to support environment protection and natural resource management and the recovery of Australia’s precious wildlife, including commitments to support eradication of Yellow Crazy Ants in and adjacent to the Wet Tropics World Heritage Area and for Tamar River Recovery – Stage 2. A further$100 million will be directed to the National Landcare Program from 2016-17 to support the protection of Australia’s unique plants, animals, ecosystems and waterways.

The Department is working with other government agencies to deliver the Improving Your Local Parks and Environment Program, which supports communities to revitalise, maintain and improve local parks, nature reserves, rivers, coastal areas and community facilities, ensuring better and more accessible green spaces. The program will provide $22.8 million over four years from 2016-17 to 2019-20 (including existing funding of $6.5 million).

The Department is leading the implementation of the Government’s Threatened Species Strategy, through pursuing science-based approaches, shaping policy and programs and building partnerships to ensure threatened species are protected. The Threatened Species Strategy sets out a road map to achieve the long-term goal of reversing species decline and supporting species recovery, including through the activities of the Threatened Species Commissioner. Australian Government investment through the National Landcare Program, 20Million Trees program and the National Environmental Science Program is assisting to deliver the ambitious one, three and five year targets in the strategy.The Government is investing an additional $5million under the National Landcare Program from 2016-17 to 2018-19 in the Threatened Species Recovery Fund to support community-led threatened species projects aligned with the targets of Australia’s Threatened Species Strategy.

The Department is delivering the $1 million Surf Life Saving Cleaner Outboard Engines Scheme that provides grants to surf lifesaving clubs to upgrade outboard engines.

Outcome 2: Reduce Australia’s greenhouse gas emissions, adapt to the impacts of climate change, contribute to effective global action on climate change, and support technological innovation in clean and renewable energy, through developing and implementing a national response to climate change.

Internationally, the Department contributes to an effective global response to climate change through the negotiation and implementation of obligations under the Kyoto Protocol and Paris Agreement, including estimating and reporting Australia’s emissions and progress towards targets. Following ratification of the Paris Agreement on 4 November 2016, the Department, together with the Department of Foreign Affairs and Trade, will work with other countries to establish the Paris Agreement ‘rulebook’ ahead of 2018. The Portfolio, through the Department and the Clean Energy Regulator, is supporting Australia’s contribution to developing the rules for the International Civil Aviation Organisation’s carbon offsetting scheme. The Department also provides supportto other countries for emission measurement and reporting, and support for international partnerships that promote climate change action through protection of rainforests and ‘blue carbon’ (mangroves, tidal marshes and seagrasses).

The Department is delivering the $6.2 million Solar Programs thatwill support community groups and food rescue charities to install rooftop solar photovoltaic, solar hot water and battery systems to reduce their electricity costs and reduce emissions.

The 2016-17 Mid-Year Economic and Fiscal Outlook reflected the restoration of
$800 million to the Australian Renewable Energy Agency over the next five years, which, in addition to the Agency’s 252 existing projects, will give the Agency greater capacity to support research and development.

Outcome 3: Advance Australia’s strategic, scientific, environmental and economic interests in the Antarctic region by protecting, administering and researching the region.

Australia’s science and research capacity has been boosted with the Government’s commitment to build a new state of the art research station on Macquarie Island, replacing the existing station.

Outcome 4: Improve the health of freshwater ecosystems (rivers, wetlands, flood plains) through research, education and environmental watering and strengthen the water resources knowledge base.

There have been no changes to the Strategic Direction Statement text for Outcome 4 since the 2016-17 Environment Portfolio Budget Statements.

Outcome 5: Support the reliable, sustainable and secure operations of energy markets through improving Australia's energy efficiency, performance and productivity for the community.

The Australian Government is committed to the provision ofreliable, sustainable and secureenergy to meet future energy needs and underpin strong economic growth. Our energy priorities are to enable well functioning energy markets for households and businesses while reducing emissions in line with the Paris Agreement targets. To support this, the Department is working with states and territories to implement initiatives that will support the efficient operation of Australia’s energy markets to support investment and market outcomes in the long-term interests of consumers.

Through the Council of Australian Governments Energy Council the Department is developing a national approach to the integration of renewable energy and technology into the National Electricity Market, improving energy market governance, increasing gas market transparency and ensuring better regulation for competitive gas transport prices.

Working with states and territories and industry the Department is reviewing the security and stability of the supply chains which deliver liquid fuels to Australia’s households, businesses, airports and ports and is implementing Australia’s plan to return to compliance with the International Energy Agency’s oil stockholding obligations.

The Department will continue to implement the National Energy Productivity Plan to deliver a 40 per cent improvement in Australia’s energy productivity by 2030. The economy-wide work plan aims to improve energy productivity by driving more productive consumer and business choices, and more productive energy services.

1.2Entityresource statement

The Entity Resource Statement details the resourcing for the Department of the Environment and Energy at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2016-17 Budget year, including variations through Appropriation Bill No.3 andNo.4,Special Appropriations and Special Accounts.

Table 1.1: Department of the Environment and Energyresource statement — Additional Estimates for 2016-17 as at Additional Estimates February2017

Actual
Available
Appropriation
2015-16
$'000 / Estimate
as at Budget
2016-17
$'000 / Proposed
Additional
Estimates
2016-17
$'000 / Total estimate at Additional Estimates
2016-17
$'000
Departmental
Annual appropriations - ordinary
annual services (a)
Prior year appropriations available / 79,629 / 67,286 / - / 67,286
Departmental appropriation / 358,432 / 338,011 / 1,637 / 339,648
s75 transfer from Industry (b) / - / 26,349 / - / 26,349
Payments to corporate entities (c, d) / 40,470 / 42,829 / - / 42,829
s74 retained revenue receipts (e) / 53,541 / 31,204 / 7,120 / 38,324
Departmental capital budget (f) / 25,112 / 24,887 / - / 24,887
s75 transfer from Industry (b) / - / 50 / - / 50
Annual appropriations - other services -
non-operating (g)
Prior year appropriations available / 4,459 / 1,342 / - / 1,342
Equity injection / 91,891 / 139,498 / 5,284 / 144,782
s75 transfer from Industry (b) / 8,150 / - / - / -
Total departmental annual appropriations / 661,684 / 671,456 / 14,041 / 685,497
Special accounts (h)
Opening balance
MoG transfer from Industry (b) / - / 14,663 / - / 14,663
Non-appropriation receipts
MoG transfer from Industry (b) / - / 3,986 / - / 3,986
Total special accounts / - / 18,649 / - / 18,649
Total departmental resourcing / 661,684 / 690,105 / 14,041 / 704,146
Administered
Annual appropriations - ordinary
annual services (a)
Prior year appropriations available / 14,667 / 11,789 / - / 11,789
Outcome 1 - Clean Land / 435,245 / 438,645 / (15,301) / 423,344
Outcome 2 - Clean Air / 6,268 / 3,187 / 2,421 / 5,608
Outcome 4 - Clean Water / 45,728 / 3,251 / - / 3,251
Outcome 5 - Energy
s75 transfer from Industry (b) / - / 2,548 / - / 2,548
MoG transfer from Industry (b) / - / 3,764 / - / 3,764
Payments to corporate entities (d) / - / 1,221 / - / 1,221

Table 1.1: Department of the Environment and EnergyResource Statement — Additional Estimates for 2016-17 as at Additional Estimates February2017(continued)

Actual
Available
Appropriation
2015-16
$'000 / Estimate
as at Budget
2016-17
$'000 / Proposed
Additional
Estimates
2016-17
$'000 / Total estimate at Additional Estimates
2016-17
$'000
Annual appropriations - other services -
non-operating (g)
Prior year appropriations available / 23,622 / - / - / -
Administered assets and liabilities / 3,860 / - / - / -
Payments to corporate entities (d) / 20,000 / 619 / - / 619
Total administered annual appropriations / 549,390 / 465,024 / (12,880) / 452,144
Administered special appropriations / 143,600 / 2,189,037 / 120 / 2,189,157
Special accounts (h)
Opening balance / 496,454 / 5,471,743 / - / 5,471,743
MoG transfer from Treasury (i) / 4,919,000 / - / - / -
MoG transfer to Agriculture and Water
Resources (j) / (55,304) / - / - / -
Appropriation receipts (k) / 310,028 / 2,265,669 / (1,259) / 2,264,410
Non-appropriation receipts / 83,250 / 54,203 / 63,465 / 117,668
Total special account receipts / 5,753,428 / 7,791,615 / 62,206 / 7,853,821
less administered appropriations drawn from
annual/special appropriations and
credited to special accounts / (310,028) / (2,265,669) / 1,259 / (2,264,410)
less payments to corporate entities from
annual/special appropriations / (120,049) / (300,033) / - / (300,033)
less special account balances for corporate
entities / (4,979,000) / (6,979,000) / - / (6,979,000)
Total administered resourcing / 1,037,341 / 900,974 / 50,705 / 951,679
Total resourcing for the Department of
the Environment and Energy / 1,699,025 / 1,591,079 / 64,746 / 1,655,825
Actual 2015-16 / 2016-17
Average staffing level (number) / 1,818 / 1,929

Third party paymentsfrom and on behalf of other entities