Pastoralists air concerns about draft hydrogen, renewable energy regulations

The state government began its consultation of its regulations for the Hydrogen and Renewable Energy Act 2023, to set scene of the regulations, and describe what the Act can and cannot do and what the state government was trying to achieve through its introduction.

The HRE Act passed in November last year and will regulate four main activities, the exploration phase for renewable energies, development of energy sources, hydrogen generation licenses and infrastructure activities.

Department for Mining and Energy's Lachlan Pontifex advised in broad terms, these licensed activities would be authorised by the Act.

"It seeks to provide as close to what was under the Pastoral Act," he said.

"The intention of HRE Act is to provide a licensing regime for the exploration, development, operational and decommissioning activities and consider the impacts from each of those activities."

New safeguards are also in the regulations to ensure project proponents which promise a lot of benefits, actually follow through and develop these renewable energy projects.

Within the Act, rent payables, was also outlined, which advised rent would need to be paid to the government for the renewable energy feasibility license and when it is operating, under the infrastructure license.

"There is a methodology we are currently working through to decide how rent will be calculated and collected by government, there is also a provision in the Act, that a prescribed percentage of that, will be provided to Pastoral Land Management Fund," Mr Pontifex said.

Land value, value of the renewable proposal and market value of the power generated from the project will be part of the process to determine rent amounts.

The Pastoral Land Management and Conservation Act 1989 is proposed to no longer regulate large scale renewable energy development on pastoral land.

And it was evident to Livestock SA chief executive officer Travis Tobin, pastoralists wanted certainty about these processes.

"Some pastoralists feel they might not be able to negotiate the same beneficial outcome for their business, which they previously would have under the system without the Act," he said.

"Most lease holders absolutely believe these renewable energy projects are an opportunity, if they can negotiate and agree on the project."

Mr Tobin believed there was a "strong fear" from pastoralists about the process if they cannot negotiate an acceptable land access agreement with a renewable energy company, within the regulation's six-week timeframe.

"Previously, they could negotiate with other parties, not a government-selected party, so by definition the natural ability to negotiate with multiple parties has been reduced, which is fine, as long as the right party is negotiating," he said.

"How do we make sure an agreement they are comfortable with and supports their business is reached within this timeframe and not go to arbitration in the courts.

"If it goes to the courts, they will enforce what is in the Act which is about generation of hydrogen. We need to ensure pastoralists get a good a agreement from the process."

There is also hope renewable energy projects could help drought- proof pastoral properties but according to Mr Tobin, it was not yet evident in legislation.

"We need to provide pastoralists with the certainty they wont be left behind by renewable projects," he said.

Pandurra Station's via Pt Augusta Bruce Nutt carried the fear of negotiation falling by the wayside and being "told what was going to happen"

"We do have a great concern that if we are told solar panels were being put across an entire area of the property, we might question what the past 130 years of building the property up was for," he said.

The Nutt family have held the lease since 1895 and Mr Nutt saw it as his "own".

"We built it up from a pretty rundown property to a good property and there could be a dangerous side to all of this and we just want a choice in process," Mr Nutt said.

But, Mr Nutt had an existing wind farm project on freehold land and believed it was ideally suited with minimal impact on the operation.

"That was our choice but if we were told we must put 10,000 acres of solar panels on the property, that would be a fair kick in the guts," he said.

Mr Nutt also harboured anxiety about land access agreement processes after a previous compulsory acquisition by the government left a significant toll on his family.

"We are 19 years on since the first approach and 10 years since the acquisition and have not been compensated," he said.

But Mr Nutt agreed the renewable energy market was without a doubt a potential additional revenue stream for pastoralists.

"If we can negotiate as lease holders, I hope the process will benefit us but the timeframe they are talking to get these projects up and running, is naive," he said.

"From the first approach, to receiving the first check for our existing project was almost 20 years."

Department for Energy and Mining project manager - release areas, Cameron May, explained the Minister for the Act, Energy and Mining Minister Tom Koutsantonis and the Pastoral Act Minister, Minister for Climate, Environment and Water Susan Close, must agree on the proposed release areas and consult on any proposed area before it being officially declared.

"A competitive bidding process can only happen on land that the government and landowners identify as suitable and capable to host renewable energy projects," Mr May said.

"A large part of the process with lease holders in proposed identified release areas is to understand how their property works, how they run stock, and how they see it coexisting with existing operations."

The Department for Energy and Mining will contact pastoralists identified in a study area and invite them to early discussions regarding the property and involvement in potential projects.

"We are looking at various areas across the pastoral districts in SA. Study area discussions will be held followed by public consultation on the area," Mr May said.

Draft regulations require the Minister to issue a notice that describes the proposed release area and then invite submissions on that area for six weeks.

The regulations also propose to allow consultation on the first release areas ahead of the Act commencing, to allow areas to be ready for public consultation immediately.

The final steps in the process after considering all feedback, will be determining boundaries of the release area and a selection criteria will be applied to a competitive tender process.

The initial release areas for the HRE Act are expected to be released by the state government mid-year.