Department of the Environment and Energy s2

Department of the Environment and Energy Annual Report 2016–17

Energy

www.environment.gov.au/annual-report-2016-17

© Commonwealth of Australia, 2017. Energy Purpose: Support the reliable, sustainable and secure operations of energy markets through improving Australia’s energy efficiency, performance and productivity for the community.

Activity: Energy security The Department works with its domestic and international partners across industry and government to support the security of Australia’s electricity, gas and liquid fuel supply chains. Focus areas include: analysing Australia’s electricity, gas and liquid fuels systems and critical infrastructure to identify, monitor and inform responses to domestic energy security challenges supporting bilateral and multilateral arrangements that deliver collaboration to address shared energy interests developing a robust mandatory reporting regime for petroleum statistics that minimises the regulatory burden on industry implementing Australia’s plan to return to compliance with our International Energy Agency oil stockholding obligations.

Results against performance criteria and targets Intended result: Support the security of domestic and international electricity, gas and liquid fuel supply chains.

Performance Timely and accurate analysis is provided that informs government decisions in criterion relation to energy security. Source Corporate Plan 2016–17 p. 38, PAES 2016–17 p. 47 Result Achieved In 2016–17, the Department provided timely and accurate information and advice to the Government in relation to energy security through its participation in Australian energy supply emergency advisory committees, including: the National Electricity Market Emergency Management Forum the National Gas Emergency Response Advisory Committee the National Oil Supplies Emergency Committee the National Operating Committee for Jet Fuel Assurance. The membership of these committees and forums includes representatives from energy sector organisations relevant to each committee; the Australian Government, through the Department, the Australian Energy Market Operator (for the National Gas Emergency Response Advisory Committee and the National Electricity Market Emergency Management Forum); and state and territory government agency representatives. These committees are advisory bodies responsible for providing consistent and coordinated advice to governments during energy supply interruptions, and ensuring response arrangements function effectively. The National Gas Emergency Response Advisory Committee and the National Oil Supplies Emergency Committee are working groups of the Council of Australian Governments Energy Council and are chaired by the Department. The National Operating Committee for Jet Fuel Assurance was established by the Australian Government to minimise the risks around jet fuel supply disruption at eight major Australian airports: Sydney, Melbourne, Brisbane, Perth, Adelaide, Darwin, Hobart and Cairns. During 2016–17: 2 Performance Timely and accurate analysis is provided that informs government decisions in criterion relation to energy security. The National Electricity Market Emergency Management Forum was convened in response to the 28 September 2016 South Australian black system event that resulted in loss of electricity to much of the state; the heatwave conditions in south-eastern Australia in February 2017 that was at risk of causing widespread load shedding (rolling blackouts) across the Australian Capital Territory, Victoria, New South Wales and South Australia; and protected industrial action at the Loy Yang brown coal mine that may have caused a supply disruption to the electricity generation. The National Oil Supplies Emergency Committee conducted Exercise Catalyst, a capacity building exercise designed to build stakeholder relationships and test that the National Liquid Fuel Emergency Response Plan remains fit for purpose. The National Gas Emergency Response Advisory Committee convened in response to the protected industrial action events at the Loy Yang brown coal mine and at the Esso Longford gas plant in Victoria to provide information to governments. The National Operating Committee for Jet Fuel Assurance was convened in response to a fuel supply disruption at Melbourne Airport in November 2016. Fuel supplier members of the committee developed a strategy to effectively manage the supply disruption and return to business-as-usual fuel management at Melbourne airport within three days. The Department managed the flow of information to other Commonwealth agencies and the Victorian Government. The Department participated in the Trusted Information Sharing Network, a program established and led by the Attorney-General’s Department that involves seven industry sector groups, including an Energy Sector Group. The membership of the group includes representatives from companies who own and operate critical energy infrastructure assets across liquid fuels, gas and electricity, Australian and state and territory government agencies, federal, state and territory police, energy regulatory agencies, and the Computer Emergency Response Team. The Department provided secretariat support for the Energy Sector Group and coordinated two meetings in 2016–17. These meetings facilitated the sharing of information, including across interdependent sectors, on critical infrastructure resilience to all hazards. For example, the 20th meeting of the group included discussions on cross-sector dependencies with the banking and finance sector, security accountabilities and the identification of critical infrastructure assets. We coordinated internal and interdepartmental policy advice and briefings to inform and support the Minister’s and senior officials’ participation in government- to-government energy dialogues and multilateral energy forums, such as the Asia- Pacific Economic Cooperation and G20 forums, to further Australia’s interests in international energy markets.

Case Study – Exercising electricity, gas and liquid fuel emergency communications processes to provide high-quality advice to decision makers Exercises present the opportunity to test aspects of emergency communications in a safe and controlled environment. They allow for the identification of aspects of emergency response plans which are no longer fit for purpose due, for example, to changes in the market, new and emerging technologies or changes to supporting legislation. Each exercise serves to improve Australia’s energy emergency preparedness, by ensuring that information sharing protocols remain robust, relevant and reliable.

3 The Department’s Energy Security Office is working to strengthen electricity, gas and liquid fuel communication processes during emergencies through regular domestic and international exercises that address critical threats and vulnerabilities. These exercises bring together government and private sector participants with emergency management responsibilities to test response and recovery and communication plans during an exercise scenario. The results of these exercises are used to identify gaps in emergency plans, train officers in the operation of their planning procedures and bring organisations together to test the interoperability of their communication and operational plans. In 2016–17, we participated in a National Electricity Market Emergency Management Forum activation exercise led by the Australian Energy Market Operator, the NOSEC Exercise Catalyst 2017, and observed at the Victorian Government’s Liquid Fuel Working Group exercise. We participated in international exercises to test Australia’s ability to respond to supply shortages in the global oil and gas markets. In March 2017, Australia held the Asia-Pacific Economic Cooperation Oil and Gas Security Exercise, co-hosted with the Asia Pacific Energy Research Centre. Participating economies included Thailand, Republic of the Philippines and Indonesia, with expert reviewers from the International Energy Agency, the US Department of Energy, Japan’s Institute for Energy Economics and Ministry of Economy, Trade and Industry, the Association of Southeast Asian Nations Centre for Energy, and the Economic Research Institute for Association of Southeast Asian Nations and East Asia. These exercises build capability and cooperation between industry and officials across jurisdictions to ensure high-quality advice is provided to decision makers during energy emergencies.

Performance Australia progresses towards compliance with its International Energy Agency criterion stockholding obligation. Source Corporate Plan 2016–17 p. 38, PAES 2016–17 p. 48 Result Achieved A core requirement under the International Energy Agency’s Agreement on an International Energy Program, of which Australia is a signatory, is that member countries hold oil stocks equivalent to at least 90 days of their previous year’s average daily net oil imports. In the event of a major oil disruption, member countries must also contribute to International Energy Agency collective actions by way of a stock release, demand restraint, fuel switching, increased production or fuel sharing. Australia has historically relied on commercial stock levels to meet the 90-day requirement. Due to declining domestic production and increased demand for liquid fuels, these stocks are no longer sufficient to meet the 90-day requirement. Australia has been structurally non-compliant with the 90-day stockholding obligation since March 2012. In April 2016, the Government agreed to a compliance plan to return Australia to full compliance with the stockholding obligation by 2026. The International Energy Agency Governing Board noted the plan in June 2016. In 2016–17, we began to implement the Government’s compliance plan. The compliance plan includes the following elements: introduction of mandatory reporting of Australian petroleum statistics from January 2018 purchase of 400,000 tonnes of oil tickets in 2018–19 and 2019–20 to enable Australia to contribute to an International Energy Agency collective action if needed (see target on page 122) return to full compliance with the stockholding obligation by 2026, which will

4 Performance Australia progresses towards compliance with its International Energy Agency criterion stockholding obligation. include diplomatic engagement to expand the international ticket market in the Asia-Pacific region establishment of an Energy Security Office within the Department. The Energy Security Office was established on 1 July 2016 and has progressed implementation of a mandatory reporting framework for Australian petroleum statistics. For information on mandatory reporting of petroleum statistics see the next target. During 2016–17, we began negotiations on bilateral arrangements with 11 countries to purchase oil stock tickets. This process included work to expand the currently limited ticket market to new ticket sellers to test the market for future volumes as one of the potential options for sustainable long-term compliance.

Target Stand-alone legislation to deliver mandatory reporting of petroleum statistics introduced March 2017. Source Corporate Plan 2016–17 p. 38, PAES 2016–17 p. 47 Result Achieved The Minister for the Environment and Energy tabled the Petroleum and Other Fuels Reporting Bill 2017 in the House of Representatives on 30 March 2017. Subject to passage of the Bill by the Parliament, the reporting requirements for business on petroleum and related fuels will begin on 1 January 2018. The mandatory reporting framework captures all relevant oil stock at a minimum impost on business. An exposure draft of the Petroleum and Other Fuels Reporting Rules 2017, the subordinate legislation containing the detailed reporting requirements for business, was released for consultation on 7 June 2017.

Target Amendments to the Liquid Fuel Emergency Act 1984 introduced to Parliament by February 2017. Source Corporate Plan 2016–17 p. 38, PAES 2016–17 p. 47 Result Partially achieved In 2016–17, the Department worked with the Office of Parliamentary Counsel to draft legislative amendments to the Liquid Fuel Emergency Act 1984 that will enable the Government to purchase oil stockholding contracts, also known as ‘tickets’. Tickets are a contractual right to purchase oil that has been reserved for the ticket holder during a specified period. As part of Australia’s plan to return to compliance with our International Energy Agency oil stockholding obligations, the Government aims to purchase 400,000 tonnes of offshore tickets in the 2018–19 and 2019–20 financial years. The Liquid Fuel Emergency Amendment Bill 2017 was introduced into the Parliament on 15 June 2017. Delays due to parliamentary scheduling of legislation resulted in the Bill not being introduced by February 2017 as initially planned. We are still on track to meet the critical deadline for the passage of the amendments, which is the end of 2017. These amendments will allow for the procurement process for tickets to be implemented in early 2018.

5 Case Study – Driving international collaboration to accelerate emerging technology Australia’s domestic energy policy landscape is undergoing significant transformation. During this time, it is vital that Australia takes opportunities to engage with international governments, industry and academia so that it can pursue and promote its energy interests and expertise globally. Through international engagement activities, we are able to gain insights, share knowledge and experience of new policy approaches and energy technologies, and apply lessons learnt from the international context to inform our domestic energy policy debate. There are also significant two-way investment, business and research opportunities that can flow from international engagement. We are proactive in deepening our long-established relationships and forging new ones. Over the past year, we have taken part in high-level bilateral energy dialogues with major trading partners, including China, the Republic of Korea and Germany, to improve collaboration on energy and clean energy technology. One of our newest international partnerships, the Australia–Germany Energy and Resources Working Group, will be the principal forum for energy and resources cooperation between Australia and Germany. The working group aims to advance the transition to sustainable, secure and affordable energy systems by improving energy efficiency, increasing the deployment of renewable and clean energy technologies and encouraging innovation. A working group planning meeting was held on 5 May 2017. The meeting discussed ways to facilitate open and constructive dialogue between governments, industry and academia on opportunities for collaboration. These discussions led to an agreed roadmap of cooperation in the fields of energy market design, cost-efficient integration of renewables in the power sector, long-term energy policy planning, energy efficiency in the industrial sector, and the development of long-term low-emissions strategies. Both countries deemed the meeting highly successful in strengthening government, business and research relationships to drive energy improvements in our respective energy sectors. During 2016–17, we were actively involved in multilateral energy forums, such as the Asia- Pacific Economic Cooperation Energy Working Group, the East Asia Summit Energy Cooperation Task Force, the Group of 20 Energy Sustainability Working Group and the Clean Energy Ministerial, to examine energy issues including energy security, clean technologies and energy efficiency.

Target Energy Counsellor to progress Australia’s interests in the International Energy Agency in place in early 2017. Source Corporate Plan 2016–17 p. 38, PAES 2016–17 p. 48 Result Achieved The Energy Counsellor was engaged in late 2016 and began work at the Australian Embassy in Paris in January 2017. The Energy Counsellor is progressing Australia’s broad interests in the International Energy Agency across issues such as energy security, energy efficiency and clean energy technologies. Both the Energy Counsellor and the Department engage closely with the International Energy Agency on its modernisation and reform agenda. This agenda was endorsed by International Energy Agency Ministers in November 2015, and includes three key objectives: opening the doors of the International Energy Agency to emerging economies, broadening the International Energy Agency’s core mandate of energy security to take into account the evolution of global oil markets and the increasing role of liquefied natural gas, and transforming the agency to become a global hub for clean energy technologies and energy

6 Target Energy Counsellor to progress Australia’s interests in the International Energy Agency in place in early 2017. efficiency. Australia attended the regular International Energy Agency meetings in Paris, including Governing Board and Standing Group on Emergency Questions committee meetings.

Target The third National Energy Security Assessment used by stakeholders and/or supports evidence-based decision-making. Source Corporate Plan 2016–17 p. 38, PAES 2016–17 p. 47 Result Not achieved National Energy Security Assessments provide a comprehensive energy security assessment for Australia. They are prepared by the Energy Security Office within the Department to support government decision-making. Two energy security assessments were publicly released in 2009 and 2011. Assessments consider Australia’s ability to meet current and future domestic energy needs by evaluating the effectiveness and reliability of Australia’s electricity, natural gas and liquid fuels markets. Commencement of the third energy security assessment was delayed during 2016–17 while the Government awaited recommendations of the final report of the Independent Review into the Future Security of the National Electricity Market (Finkel review), released on 9 June 2017. This review was initiated to consider current issues affecting the reliability and security of the National Electricity Market. The findings will have a fundamental impact on an assessment of energy security in the electricity sector, including a specific recommendation that the Australian Government lead a process to regularly assess the National Electricity Market’s resilience to human and other environmental threats by mid-2019 and every three years thereafter. This recommendation will be considered in the context of future National Energy Security Assessments. In 2016–17, in the absence of the energy security assessment, we have continued to monitor and brief the Government on energy security matters through our engagement in national energy emergency and critical energy infrastructure resilience forums (see the first ‘Energy security’ activity performance criterion, page 118) and analysis of publications and reports.

Analysis against the activity’s intended result The 2016–17 Budget provided $23.8 million over four years to establish the Energy Security Office within the Department and support its activities in meeting the International Energy Agency’s stockholding requirements. The office started on 1 July 2016 and quickly established and progressed its work program. Our main responsibilities are to provide advice on Australia’s energy security matters, represent the Australian Government in national energy emergency and critical energy infrastructure resilience forums, and monitor important developments in energy markets which may impact Australia’s energy security. We support Australia’s consideration of global energy security issues, particularly through engagement with the International Energy Agency. Over 2016–17, a major focus was the development and implementation of Australia’s International Energy Agency oil stockholding compliance plan and Australia’s contribution to a strong International Energy Agency reform and modernisation agenda.

7 The undertaking of the third National Energy Security Assessment was delayed while the Government considers the recommendations of the Finkel review. The review’s recommendations have implications for the Department’s work on energy security going forward. The Finkel review is discussed further under the ‘Energy market reform and energy efficiency programs' activity, page 125.

Activity: Energy market reform and energy efficiency programs The Department delivers national energy market reforms by working with the Council of Australian Governments (COAG) Energy Council to achieve a secure and reliable, affordable and sustainable energy supply to support our economy and serve the Australian community, as the energy market transitions to a low-emissions future. A focus of COAG’s national reform agenda is accelerating development of a wholesale gas market that provides improved signals for investment and supply while ensuring efficient transportation of gas. We implement the National Energy Productivity Plan 2015–2030 and administer regulatory responsibilities under the Greenhouse and Energy Minimum Standards Act 2012, the Building Energy Efficiency Disclosure Act 2010 and the Nationwide House Energy Rating Scheme.

Results against performance criteria and targets Intended results: Lead energy market reform to support investment and market outcomes in the long-term interests of consumers through: a national approach to the integration of renewable energy and technology into the National Electricity Market improving the governance of energy markets implementation of the Gas Market Energy Reform Package. Increase national energy productivity and energy efficiency performance.

Performance Well-functioning energy markets and a robust governance structure that provides criterion efficient price and investment signals and reliable and secure supply to consumers. Source Corporate Plan 2016–17 p. 39, PAES 2016–17 p. 48 Result Not achieved In 2016–17, the Department undertook initiatives to improve the operation of energy markets and the incentives for efficient investment by regulated energy network businesses. These initiatives were progressed in the context of challenging market conditions such as periods of extreme price volatility, increasingly tight supply of gas for the domestic market, rapidly changing technology and consumer preferences, and the black system event in South Australia. We provided high-level support for the Finkel review which recommended reforms to improve the operation of electricity and gas markets, and incentives to increase security and ensure future reliability. Consistent with the Finkel review’s timetable, recommendations will be implemented over 2017–18. The Department led two COAG Energy Council reviews of investment and accountability mechanisms for electricity and gas network service providers, which will improve the incentives for efficient investment in energy network infrastructure: the Regulatory Investment Test for Transmission (RIT-T) the Limited Merits Review (LMR) regime. The COAG Energy Council agreed to the recommendations of the RIT-T review, and the recommendations are being implemented. They are expected to improve the efficiency and effectiveness of the RIT-T process and deliver a more level

8 Performance Well-functioning energy markets and a robust governance structure that provides criterion efficient price and investment signals and reliable and secure supply to consumers. playing field for network and non-network projects. The LMR regime review concluded that the LMR regime is not meeting its policy intent and is creating significant regulatory and price uncertainty. For further information on the LMR regime review see the relevant target on page 128. In 2016–17, following Department-led stakeholder consultation in February and March 2016, the Energy Council agreed to the National Electricity Law and National Gas Law Amendment Package. The legislative amendments contained in this package came into effect on 15 December 2016. The amendments clarify the Australian Energy Regulator’s information collection and publication powers and provide it with new responsibilities and powers to monitor and report on issues affecting competition in the wholesale electricity market. This will improve the Australian Energy Regulator’s ability to ensure the wholesale electricity market is functioning effectively.

Target Decisions on future governance and funding arrangements of the Australian Energy Regulator. Source Corporate Plan 2016–17 p. 40 Result In progress Following an independent review on resourcing of the Australian Energy Regulator, conducted for the Treasury in 2017, the Australian Government agreed to further resource the Australian Energy Regulator by $64 million over the next four years to ensure the regulator can operate effectively. Australian Government agencies will continue to work on options for possible separation and cost recovery for operations into 2018.

Target Obtain COAG Energy Council’s agreement to the Gas Market Reform Package. Source Corporate Plan 2016–17 p. 40, PAES 2016–17 p. 48 Result Achieved The Gas Market Reform Package aims to improve competition in the gas market. The package comprises 15 reform measures in four priority areas: gas supply, market operation, gas transportation and market transparency. The reforms aim to provide better information to those trading in the market, create trading hubs in the northern and southern regions, allow easier access to transport infrastructure, provide better pricing information, and encourage increased gas supply and more gas suppliers, while taking account of each jurisdiction’s circumstances. The COAG Energy Council agreed to the reforms in August 2016. The Department is implementing the reforms. Further information is available on the council’s website: www.coagenergycouncil.gov.au/publications/coag-energy-council-gas-market- reform-package

9 Target Implementation of the 2016–17 COAG Energy Council energy market reforms as a matter of priority. Source Corporate Plan 2016–17 p. 40, PAES 2016–17 p. 48 Result Partially achieved On 28 September 2016, South Australia experienced a black system event that resulted in loss of electricity to much of the state. On 7 October 2016, the COAG Energy Council held an extraordinary meeting to discuss the event. The council then announced the Independent Review into the Future Security of the National Electricity Market and released terms of reference, which stated that the purpose of the review was to develop a national reform blueprint to maintain energy security in the National Electricity Market. A secretariat was established in the Department to support the review through to its conclusion in June 2017. Australia’s Chief Scientist, Dr Alan Finkel AO, led the review and delivered the final report to COAG on 9 June 2017. Gas markets have fundamentally changed since the Liquid Natural Gas industry started exporting in 2015. Coupled with the reduction in global oil prices from late 2014, Australian gas exploration and development has curtailed, resulting in less gas supply for the domestic market and an increase in price. In response, gas market reforms are being expedited by the Department, reflecting the need to alleviate supply and price pressures on gas customers. In December 2016, ministers asked Dr Michael Vertigan AC, Chair of the Examination of the Current Test for the Regulation of Gas Pipelines, to bring forward his recommendations so that implementation could commence. The Gas Pipeline Information Disclosure and Arbitration Framework commenced under the National Gas Rules, on 1 August 2017 following receipt of stakeholder feedback. Both the Regulatory Investment Test for Transmission (RIT-T) and the Limited Merits Review regime reviews were conducted within expedited time frames. Reforms to the RIT-T are being progressed by the Australian Energy Regulator and the Australian Energy Market Commission. On 20 June 2017, the Government announced its intention to abolish the Limited Merits Review regime. The Department is developing legislation to give effect to this decision. In response to the review’s findings, reforms are being progressed. They are expected to improve regulatory certainty and price outcomes for consumers. In 2016–17, we worked with officials from state and territory jurisdictions to progress the Energy Council’s Energy Market Transformation work program, which is reviewing existing regulatory frameworks in light of ongoing changes driven by new technologies such as distributed generation, electric vehicles, storage, and energy management systems. Notable outcomes included development of a Battery Storage Standards Roadmap in conjunction with Standards Australia, submission of a rule change to the Australian Energy Market Commission to support greater contestability in network services, and a cost–benefit analysis to establish a register to collect data on residential battery systems.

Performance Sound policy advice to support the safe and sustainable operations of energy criterion markets to provide reliable and competitive outcomes for consumers. Source Corporate Plan 2016–17 p. 39, PAES 2016–17 p. 48 Result Achieved Policy advice informs and supports decisions taken by the Minister and the COAG Energy Council. These decisions, implemented through amendments to the various Acts, Regulations and rules that govern Australia’s energy markets, support the safe and sustainable operations of energy markets and provide

10 Performance Sound policy advice to support the safe and sustainable operations of energy criterion markets to provide reliable and competitive outcomes for consumers. reliable and competitive outcomes for consumers. During 2016–17, the Department provided the Minister with high-quality, evidence-based advice on matters of national energy policy. We supported the Minister in his role as Chair of the COAG Energy Council by preparing: 117 agenda papers and 89 briefs for the Senior Committee of Officials 76 agenda papers and 60 briefs for the COAG Energy Council. We circulated 82 out-of-session packages to the Senior Committee of Officials and 13 packages to the COAG Energy Council. We managed the following nine public consultation processes: Energy Market Transformation Stand-alone Power Systems Energy Market Transformation Consumer Protections Energy Market Transformation Battery Storage Limited Merits Review Regime Review Regulatory Investment Test for Transmission (RIT-T) Review Examination of the Gas Pipeline Coverage Test National Gas Law Amendment Cost–Benefit Analysis on Battery Storage Australian Energy Market Commission Establishment Governance Amendment.

Target Review the Limited Merits Review Regime. Source Corporate Plan 2016–17 p. 40, PAES 2016–17 p. 48 Result Achieved In August 2016, the COAG Energy Council asked the Senior Committee of Officials to conduct a review of the Limited Merits Review regime. The regime allows the Australian Competition Tribunal to review certain Australian Energy Regulator determinations for regulated network businesses. Officials were required to deliver findings on whether the regime is meeting its policy intent and identify possible reform recommendations by December 2016. The Department led the review. At its December 2016 meeting, the Energy Council found that the LMR regime is failing to meet its policy intent and creating significant regulatory and price uncertainty. The council considered but did not reach agreement on reforms to address identified concerns. On 20 June 2017, the Prime Minister announced that the regime will be abolished.

Target Support the independent feasibility study of a second Tasmanian interconnector. Source Corporate Plan 2016–17 p. 40, PAES 2016–17 p. 48 Result Achieved In April 2016, the Australian and Tasmanian governments established a joint feasibility study on whether a second Bass Strait interconnector could improve Tasmania’s energy security and facilitate renewable energy investment. The study was initially led by the Hon Warwick Smith AM LLB. Mr Smith completed 11 Target Support the independent feasibility study of a second Tasmanian interconnector. a preliminary report about the feasibility of a second interconnector in June 2016, in line with terms of reference requirements. In September 2016, Dr John Tamblyn replaced Mr Smith as the lead of the study. Following Dr Tamblyn’s appointment, the timeline for completion of the study was extended to early 2017. A departmental task force supported the study by completing stakeholder consultations, expert modelling and financial analysis. Dr Tamblyn’s final report was publicly released in April 2017. The report found that, while a second interconnector could deliver significant benefits to the national electricity market, those benefits would only outweigh the capital and operating costs if a specific set of preconditions were met. It recommended ongoing monitoring of market developments to allow early identification of changes that would support the development of a detailed business case in the future.

Target Implementation of key elements of the National Energy Productivity Plan 2015– 2030 including development of a government energy productivity plan to improve government building operations. Source Corporate Plan 2016–17 p. 40, PAES 2016–17 p. 48 Result In progress Governments have recognised that businesses and households could be getting better value from the money they spend on energy. In response, the Australian, state and territory governments agreed to a National Energy Productivity Plan (NEPP). The NEPP provides a framework and an initial economy-wide work plan to accelerate the delivery of a 40 per cent improvement in Australia’s energy productivity by 2030. The NEPP brings together new and existing measures from across the COAG Energy Council’s work program, from the Australian Government and industry. The 2016 NEPP Annual Report, released by the Energy Council in December 2016, shows that, in the first year of implementation, there was rapid progress towards meeting Australia’s energy productivity target. The Department’s activities to implement the NEPP included: In collaboration with industry, we developed five roadmaps for doubling energy productivity in the manufacturing, agriculture, mining, built environment and passenger transport sectors. City Deals—part of the Smart Cities Plan—are providing opportunities to accelerate the deployment of clean, renewable and efficient energy technologies in our cities. They are financed through the $100 million Sustainable Cities Investment Fund. City Deals were signed with Townsville and Launceston and work is in progress for a City Deal in Western Sydney later in 2017. We developed information to empower Australia’s household and business energy consumers to improve their energy productivity. Further information is available on the following websites: Your Energy Savings: www.YourEnergySavings.gov.au YourHome: www.YourHome.gov.au Energy Exchange: www.eex.gov.au We began reviewing and revising the existing energy efficiency in government operations policy. More information on the NEPP can be found on our website:

12 Target Implementation of key elements of the National Energy Productivity Plan 2015– 2030 including development of a government energy productivity plan to improve government building operations. www.environment.gov.au/energy/national-energy-productivity-plan

Performance Energy cost and use data used by stakeholders and/or supports evidence-based criterion decision-making. Source Corporate Plan 2016–17 p. 39, PAES 2016–17 p. 48 Result In progress In 2016–17, the Department undertook two projects that aimed to increase the supply of meaningful energy cost and use data to stakeholders and support evidence-based decision-making.

Energy use data model project In order to improve energy market management and infrastructure planning and support more effective policy reforms and research, it is important to understand how Australians use energy. For this reason, the Government is supporting the Commonwealth Scientific and Industrial Research Organisation (CSIRO) to develop the energy use data model. The model is a repository for data on the way people and businesses use energy. It will help entities, such as the Australian Energy Market Operator, to more accurately forecast electricity demand, reducing the costs of maintaining a secure energy market. In 2015, the Government committed $6 million to CSIRO to develop a pilot model, which is currently under development. A further $13.4 million was announced in the 2017–18 Budget to develop the pilot model into a full scale system and to ensure the model is made available for long-term use by regulators and industry. The pilot model is already demonstrating substantial energy market security and cost benefits. The model incorporates new tools to better predict the effects of air conditioners on summer peak electricity demands and the effects of energy efficiency standards in building codes, allowing for better understanding of the effectiveness of various policies.

Behavioural research projects The Department worked with Energy Consumers Australia on behavioural research projects relating to the NEPP. These projects, mostly based on learnings from the former Low Income Energy Efficiency Program, are identifying the most effective measures to drive behavioural change, complete consumer segmentation modelling, produce voluntary guidelines and identify regulatory and policy frameworks to address barriers to uptake of interventions. The projects are being used to inform government, industry and providers of services to different vulnerable consumer groups about the needs of different consumer segments. We expect the projects to lead to the development of market- 13 Performance Energy cost and use data used by stakeholders and/or supports evidence-based criterion decision-making. led solutions and information campaigns to encourage consumers to shop around, change their energy use habits to minimise their bills and respond to new tariff designs.

Target Energy Efficiency Programs: Effective delivery of activities to support improved energy productivity of Australia’s residential and commercial building stock. Maintaining Commonwealth contribution to the ongoing development and improvement of the National Australian Built Environment Rating System which underpins the Commercial Building Disclosure Program. Source Corporate Plan 2016–17 p. 40, PAES 2016–17 p. 48 Result Achieved In 2016–17, the Department contributed to energy productivity improvements in Australia’s commercial and residential building stock. These improvements included: lowering the mandatory disclosure threshold for commercial office buildings under the Commercial Building Disclosure Program. On 1 July 2017, the threshold for the size of buildings covered by the program was lowered from 2000 m2 to 1000 m2. The program allows buyers and tenants of commercial office buildings to compare a building’s energy running costs based on the energy rating of the building and its lighting system. Disclosing energy efficiency provides everyone with access to consistent and meaningful information about the building’s performance. This makes it easier for companies to buy or rent more energy efficient office space. An additional 1000 commercial buildings will now disclose energy-efficiency information when the building is listed for sale or lease. This change is expected to lead to an estimated $50 million in energy savings and about 3.5 million tCO2-e of emissions reductions over five years. www.cbd.gov.au funding the development of National Australian Built Environment Rating System tools for apartments, public hospitals and office tenancies www.nabers.gov.au strengthening processes and procedures for the Nationwide House Energy Rating Scheme to prepare the scheme for a proposed major update to energy rating software to improve the accuracy of energy efficiency assessments and support compliance with energy efficiency regulations for new homes. www.nathers.gov.au The Department undertook work to implement measures in the NEPP that aim to improve energy productivity in the built environment. As part of NEPP measure 5, we contributed to the establishment of a national collaborative approach to residential building ratings and disclosure. As part of NEPP measure 31, we made progress on strengthening minimum building standards. Under NEPP measure 32, we made progress on improving compliance with minimum building standards. The Government maintained its financial contribution to the National Australian Built Environment Rating System.

14 Target Greenhouse and Energy Minimum Standards National Legislative Framework:

2016–17 New consultation Regulatory Impact Statements published 5 Number of new products registered under the Greenhouse and Energy Minimum Standards (GEMS) Act 2012 4500

Effective implementation of the Equipment Energy Efficiency Program under the GEMS Act 2012 Source Corporate Plan 2016–17 p. 40, PAES 2016–17 p. 49 Result Achieved In 2016–17, the Department delivered five consultation regulation impact statements that proposed introducing or changing minimum energy performance standards on lighting products, swimming pool pumps, commercial refrigeration, domestic fridges, and non-domestic fans. Over 5600 new products were registered under the Greenhouse and Energy Minimum Standards Act 2012. This exceeded the target of 4500 new product registrations for 2016–17. The Energy Council’s Equipment Energy Efficiency (E3) Program sets minimum performance standards for equipment and appliances and provides better information to consumers. It aims to increase the energy efficiency of new appliances and equipment sold and therefore reduce energy consumption. It is underpinned by the GEMS Act. The program is being delivered in accordance with the 2016 E3 prioritisation plan and is well received by stakeholders. Evidence of this is the recent delivery of several consultation regulation impact statements, the feedback received at meetings and forums, and responses to the relevant section of the Department’s regulator performance framework self-assessment for 2015–16. The 2016–17 GEMS stakeholder satisfaction survey found that 84 per cent of respondents reported they were satisfied or very satisfied with the level of service they received. More than 150 responses were received, with an overall response rate of 20 per cent. To increase stakeholder satisfaction, improvements are constantly being made to the GEMS registration system. During 2016–17, the GEMS Regulator completed check tests of 86 models of 12 GEMS products. The tests found that 79 met GEMS requirements and seven did not. Of those that did not meet GEMS requirements, the GEMS Regulator cancelled the registration of four models and took alternative enforcement actions against three models.

Target Australia meets its emissions reduction targets. Source Corporate Plan 2016–17 p. 40, PAES 2016–17 p. 49 Result In progress Australia’s performance in meeting its emissions reduction targets is addressed in more detail under the ‘Reducing Australia’s greenhouse gas emissions’ activity (see page 90). In 2016–17, the Department worked with CSIRO to develop the Low Emissions

15 Target Australia meets its emissions reduction targets. Technology Roadmap as an input into the broader review of Australian climate policies. The roadmap was released in June 2017. In developing the roadmap, CSIRO undertook an independent assessment, based on extensive stakeholder consultation, modelling and analysis, which aimed to identify: low-emissions technologies in the electricity, industrial and transport sectors that would assist Australia to meet or exceed its emissions reduction targets opportunities that exist for Australian industry to take advantage of supply chains for the identified technologies. The roadmap provides important insights into the emissions potential of various technologies in the energy sector, economic opportunities that Australia could exploit in clean energy technologies, and enabling actions which could be considered to capture that potential. As described under the previous targets, the NEPP and Equipment Energy Efficiency Program (E3) are contributing to meeting Australia’s 2030 emissions reduction goals and helping consumers to better manage their energy costs. The Department continues to manage the E3 program, which is a cross- jurisdictional approach to energy efficiency standards and energy labelling for household and business equipment and appliances sold in Australia and New Zealand. Activities to improve the energy efficiency of appliances and equipment include energy rating labelling, setting minimum energy performance standards, education and training. The E3 program is consulting on new regulations under the Greenhouse and Energy Minimum Standards Act 2012. The new regulations cover lighting, swimming pool pumps, non-domestic fans, refrigerators and freezers, air conditioners, and refrigerator display cabinets. Equipment and appliance regulations reduced Australia’s emissions by 23–35 million tCO2-e between 2000 and 2014. From 2015 to 2020 (based on current regulation developments) it is projected that emissions will be reduced by a further 27–44 million tCO2-e.

Analysis against the activity’s intended result Challenging market conditions were evident in 2016–17. Periods of extreme price volatility, increasingly tight supply of gas for the domestic market, rapidly changing technology and consumer preferences, and the black system event in South Australia highlighted the need for greater efforts to ensure energy markets are able to manage Australia’s transition to a low- emissions economy. These issues particularly affected the first performance criterion, which was not achieved. However, the response by governments, the COAG Energy Council and the Department in expediting reforms has greatly ameliorated the potential negatives of the market conditions. Through the ongoing work, and rapid response to these challenges, by the Energy Council, Australian energy markets are increasingly able to support investment and market outcomes in the long-term interests of consumers. For example, in August 2016, the Energy Council agreed to gas market reforms that will allow more gas to be supplied at lower prices through better information and price discovery, additional trading hubs and better transport infrastructure access. Further, in October 2016, following the South Australia black system event an extraordinary meeting of the Energy Council reconfirmed that energy security remains the top priority for Australia’s energy markets. Following the extraordinary meeting, the council announced the Finkel review, which was tasked with creating a blueprint for reform in the national electricity market. The review considered the outputs of some of our ongoing work streams across energy and climate policy and was delivered on 9 June 2017. We provided administrative support for the independent review. The outcomes of the review will impact on the Department’s work going forward.

16 The factors that led to the success of achieving our other targets and performance criteria include the continued improvements and advancements in the programs and policies the Department manages. This is achieved through a national approach to the integration of renewable energy and technology into the national electricity market, improved governance of energy markets, increased gas market transparency and regulations for competitive gas transport prices.

17 Science, information and research Purpose: The Department’s science, information and research contributes to the delivery of all four of the Department’s purposes in the priority areas of environment and heritage, climate change, Antarctica and energy and ensures that decisions concerning Australia’s environment are based on the best available information. We use this information to provide environmental and spatial information products, advice, analysis and tools.

Cross-cutting activity: Science, information and research The environmental and spatial information products, advice, analysis and tools delivered under this activity ensure that decisions concerning Australia’s environment are based on the best available information. Specific examples are: making fundamental biodiversity information openly accessible to the public, science, business and government, to help decision makers understand and manage Australia’s environment, including providing information to assist decision makers in relation to the EPBC Act supporting the discovery and classification of Australia’s plants, animals and other organisms through the provision of taxonomic advice providing data and information to decision makers and the community that addresses critical gaps in scientific understanding of the water-related impacts of coal seam gas and large coal mining development.

Results against performance criteria and targets Intended results: Improve understanding of Australia’s environment and inform environmental decision-making through collaborative research and enhanced discovery, access and use of environmental information. Improve the knowledge of, and inform decision-making on, water-related impacts of coal-seam gas and coal mining development.

Performance Data and information generated by the Department are used by stakeholders criterion and/or support evidence-based decision-making. Source PBS 2016–17 p. 67, Corporate Plan 2016–17 p. 42 Result Achieved

National Environmental Science Program The National Environmental Science Program (NESP) is delivering world-class environmental and climate science to assist decision makers at all levels of government, business and communities, including Indigenous organisations. Research under the six NESP hubs began in June 2015, with 152 projects approved under annual research plans. Of the 39 complete projects, six were completed in 2016–17. NESP data and information provided to the Department and other users has already helped in: implementing the Reef 2050 plan developing Australia State of the Environment 2016 planning and managing Indigenous Protected Areas and threatened species and communities throughout Northern Australia developing a service to aggregate and link collections of open marine data improving access to marine data through the Australian Geoscience Data Cube. To support uptake of research, the NESP requires specified positions and funding to be allocated by hubs to knowledge brokering and communications activities for

18 Performance Data and information generated by the Department are used by stakeholders criterion and/or support evidence-based decision-making. the life of the program. For example, hub knowledge brokers enable engagement between researchers and end users, and increase the relevance of the research outputs. The NESP hubs communicate research activities through their websites and publications such as the Science for saving species magazine, the newsletters View on TWQ, ESCCapades and Urban Beat, social media, and presentations to research users. The impact of knowledge-brokering activities and broader program outcomes will be assessed in evaluations of the program. The first evaluation is scheduled for completion in August 2017. The second will take place at the end of the program in 2019–20. Further information on NESP is available on the Department’s website: www.environment.gov.au/science/nesp

Native flora, fauna and marine measures As part of its core business the Australian Biological Resources Study (ABRS) provides leadership and support for the discovery, naming and classification of Australia’s living organisms. The ABRS compiles, edits and publishes national biodiversity information that is used by government, business, research, education and community sectors, to improve knowledge and decision-making. In 2016–17, the ABRS continued to make data and information available through the Atlas of Living Australia website. www.ala.org.au This data is drawn from established ABRS databases such as the Australian Faunal Directory and from platforms such as the National Species List and Flora of Australia Online. Ongoing investment in the Atlas of Living Australia through the National Collaborative Research Infrastructure Strategy has allowed the ABRS to establish important working partnerships to help develop and make available more accurate, consistent and timely data on Australian species, including species that are threatened or may present a biosecurity threat. We support evidence-based decision-making through: the biodiversity data, information and resources curated and maintained online for departmental and public use www.environment.gov.au/science/abrs authenticating and entering new taxon records and updating existing ones in the Species Profile and Threats Database www.environment.gov.au/cgi-bin/sprat/public/sprat.pl ensuring the accuracy and currency of scientific and common names used in documents such as recovery plans, conservation advices for threatened species and ecological communities, and EPBC Act gazettal notices advising on conservation concerns for species proposed for wild harvest as part of wildlife trade operations guiding the selection of species for consideration under the common assessment method project to align threatened species listings under the EPBC Act with those under state and territory legislation (see ‘Regulating to protect our environment and heritage’ activity page 55). The Essential Environmental Measures for Australia Program seeks to improve our ability to scientifically describe the environment and improve our capacity to track its change, bringing together experts to identify measures which are essential

19 Performance Data and information generated by the Department are used by stakeholders criterion and/or support evidence-based decision-making. for tracking change in the state of our environment; and improve the discovery, access and reuse of data and information under those measures. In the long term the program will deliver: quantifiable observations of aspects of the environment (e.g. vegetation cover) that are key to tracking change in the state of the environment open access data streams—standardised in-situ and remotely sensed time-series data, which can be consumed for a wide range of analysis and reuse methods, models and vocabularies to be used by data custodians as resources to improve the collection, management and reuse of measures data. In 2016–17, two measures pilots, native vegetation and marine, were selected. A set of native vegetation measures were drafted for consideration by an expert panel and a working group was formed to identify marine measures. These pilots will inform the methodology for all future measures. Links were established with the state of the environment reporting cycle and environmental-economic accounting cross-jurisdictional work commissioned by Australia’s environment ministers in December 2016. This cross jurisdictional work has the aim of developing a national strategy for environmental-economic accounting by December 2017.

State of the environment report On 7 March 2017, the Australia State of the Environment 2016: Overview was tabled in the Parliament and we launched the report’s online platform, SoE Digital. www.soe.environment.gov.au For the first time the report was published on an interactive, digital platform. This allows audiences to explore and discover information in many ways, including: comparing main findings across themes and years and searching for trends in assessments filtering content by theme, trend, grade or reporting framework interrogating data visualisations graphically and spatially downloading data and information for re-use, in most cases under a Creative Commons licence. Providing open access to more than 300 underlying datasets, the report is more transparent than ever before. It gives users free access to a substantial national information base that enables them to improve their understanding of environmental issues and actions. In the four months to the end of June 2017, the site had attracted around 25,000 unique visitors, with an average session time of four minutes for each visit. We promoted the findings of the report and will continue to do so through strengthening industry partnerships, conducting roadshows and leveraging the 2017 environment conference schedule to increase its reach.

Office of Water Science In 2016–17, the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development, supported by the Office of Water Science, provided eight pieces of advice to regulators. Further details are available in the target below, page 140. Other data and information generated by the committee was provided to and used

20 Performance Data and information generated by the Department are used by stakeholders criterion and/or support evidence-based decision-making. by stakeholders to support evidence-based decision-making. Commissioned research will inform regulators and the wider community on the hydrology, ecology and chemicals associated with coal seam gas extraction. The research commissioned, in line with research priorities identified by the committee, was finalised in late 2016 and will be published throughout the course of 2017. An important milestone for this research program was the publication of a report that improves the understanding of ecological responses to groundwater drawdown associated with coal seam gas extraction and coal mining. The publication of the report was supported by three workshops in New South Wales, Queensland and Canberra in June 2017 to inform environmental impact assessment and monitoring of how ecosystems respond to groundwater drawdown. We continued to administer the Australian Government’s Bioregional Assessments Program designed to support evidence-based decision-making by better understanding the potential impacts of coal seam gas and large coal mining developments on water resources and water-dependent assets. The program’s online information portal, launched in April 2016, provides open access to reports, background information, and data and metadata housed on data.gov.au. In 2016– 17, we worked on developing an interactive tool, BA Explorer, to enable spatial exploration of the results of assessments. BA Explorer will be available on the portal. The Bioregional Assessments Program will release analytical reports for the Clarence–Moreton, Maranoa–Balonne–Condamine, Galilee and Namoi regions in the second half of 2017. The adoption and use of these products to inform decision-making and community understanding is expected to increase as the reports are published for each region. www.bioregionalassessments.gov.au

Case Study – National Environmental Science Program—informing on-ground approaches to tackling gully erosion in Great Barrier Reef catchments The NESP is a $145 million program funding six research hubs and emerging priority projects from 2015 to 2021. Research from the program’s Tropical Water Quality Hub is providing evidence for management decisions about the Great Barrier Reef. Gully erosion is one of the major sources of sediment delivery to the Reef and must be addressed to help meet Reef water quality targets. The hub project ‘Demonstration and evaluation of gully remediation on downstream water quality and agricultural production in Great Barrier Reef rangelands’ is providing a cost–benefit analysis of erosion remediation strategies and demonstrating the benefits of best-practice erosion control to graziers, with a focus on Queensland’s Burdekin region. Anticipated project impacts include building support for remediation options and demonstrating progress in sediment management to stakeholders and the public. New knowledge about the links between gully remediation, erosion rates and water quality will help inform the design of future on-ground remediation activities. The research is already directly supporting on-ground works being funded under the Australian Government’s Reef Trust Gully Erosion Control Program, which aims to reduce fine sediment erosion from gullies in Reef catchments. This hub project is filling a critical knowledge gap by testing the effectiveness of the gully erosion remediation approaches being trialled and advising on how well they control sediment that affects the seagrasses and corals of the Reef. 21 Strong partnerships between researchers, Australian and Queensland government agencies, natural resource management bodies, non-government organisations and graziers are crucial to the project’s success. The contribution and participation of these organisations not only improves research adoption prospects, but also successfully leverages additional funding from Australian Government investment, increasing the project’s resources and delivering outcomes that benefit all stakeholders. Further information about the project is available online. www.nesptropical.edu.au/index.php/round-2-projects

Target Completion and release of the Australia State of the Environment 2016 report and its digital platform. Source PBS 2016–17 p. 42, Corporate Plan 2016–17 p. 43 Result Achieved In March 2017, we released the Australia State of the Environment 2016 and SoE Digital. The 2016 report presents an independent, peer-reviewed assessment of the current state of the Australian environment, how it is managed, recent trends, and the future outlook. It was prepared by 18 lead authors, drawing on material from over 500 contributors, 343 accessible datasets, 72 graded report cards and nearly 1200 graded assessments. It carries through the same reporting structure as the Australia State of the Environment 2011 report, enabling the tracking of change over time. www.environment.gov.au/science/soe

Target All environmental datasets owned by the Department are published under Creative Commons. Source PBS 2016–17 p. 42, Corporate Plan 2016–17 p. 43 Result Partially achieved As of 30 June 2017, over 146 spatial datasets owned by the Department were published under a Creative Commons licence. Some datasets remain restricted for reasons of sensitivity or confidentiality. Datasets are available from the following sites. www.environment.gov.au/about-us/environmental-information-data/open-data www.environment.gov.au/fed/catalog/main/home.page

Target All advice provided to regulators by the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development is delivered within statutory time frames and made publicly available. Source PBS 2016–17 p. 67, Corporate Plan 2016–17 p. 43 Result Achieved Our Office of Water Science continued to support the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development (IESC), a statutory committee under the EPBC Act. The IESC provides advice that ensures regulatory decisions about coal seam gas and large coal mining developments are informed by the best available science about the potential water-related impacts of those developments. Publication of its advice ensures that the community can have confidence that regulators have access to the latest scientific information when making decisions

22 Target All advice provided to regulators by the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development is delivered within statutory time frames and made publicly available. on development proposals. In 2016–17, the IESC provided eight pieces of advice on development proposals to regulators and published them on its website within the statutory time frames. Advice was requested by the Department and the New South Wales Department of Planning and Environment. www.iesc.environment.gov.au/committee-advice/proposals

Target Completion and release of bioregional assessments for all 13 bioregions by 30 June 2017 to assess the potential water-related impacts of coal and coal seam gas. Source PBS 2016–17 p. 67, Corporate Plan 2016–17 p. 43 Result Partially achieved In 2016–17, bioregional assessments progressed in all 13 regions. The Bioregional Assessments Program focused on analysing impacts on and risks to the landscape and water-dependent assets in five regions with high coal resource development activity. During the reporting period, 22 technical products, including two supporting sub-methodologies, were published on the information portal (making a total of 59). Over 900 datasets related to the program are now available at data.gov.au. Datasets published by the program were downloaded 3392 times in 2016–17. The program finalised 93 out of 105 technical reports and eight out of 10 supporting sub-methodologies by 30 June 2017. Many of these finalised technical reports are components of larger assessments that will be released when the whole assessment is complete. The remaining reports will be delivered by December 2017.

Target 200 taxa revised or newly described under the Australian Biological Resources Study. Source PBS 2016–17 p. 42, Corporate Plan 2016–17 p. 43 Result Achieved Our result against this target reflects the commitment and expertise of the researchers funded under the Australian Biological Resources Study and represents the impact the program has on the discovery and description of Australian flora and fauna. In 2016–17, 409 taxa were either reported as revised or newly described as outputs of projects funded by the ABRS National Taxonomy Research Grant Program and the Bush Blitz program (administered through the ABRS) (Table 2.7). Factors that led to exceeding the target were additional co-investment by researchers, research effort over time culminating in outputs in recent years, improved efficiencies, Bush Blitz expeditions, and improvements in taxonomic research methods. Taxonomic research is becoming more efficient and effective as new digital and genetic technologies aid researchers in analysis, synthesis and faster publication.

Table 2.7: Number of taxa revised or described

23 Target 2013–14 2014–15 2015–16 2016–17 Taxa revised or described 200 630 2461 660 409

Target At least 64 researchers, including early career researchers, supported under the Australian Biological Resources Study. Source PBS 2016–17 p. 42, Corporate Plan 2016–17 p. 43 Result Achieved The ABRS National Taxonomy Research Grant Program supports taxonomy and systematics researchers, including early-career researchers. These grants help to address the decline in numbers of Australian scientists who work in these fields of research. As at 30 June 2017, 136 researchers, including 66 early-career researchers, are being trained in taxonomy and species discovery through projects funded by the ABRS (under the National Taxonomy Research Grant Program and Bush Blitz). We well exceeded the 2016–17 target (Table 2.8). Bush Blitz’s investment in species discovery expeditions and follow-up taxonomic work has provided significant additional support for the employment or training of early career researchers engaged to revise and describe specimens collected on expeditions. Factors contributing to an increase in numbers of researchers over recent years include the opportunity for successful grant applicants, most of whom are from the university sector, to take advantage of the grant program’s accreditation under the Australian Competitive Grants Register. The register allows successful grant applicants to secure matched funding from other sources. Co-investment from researchers and support from the Government ($1 million) and the industry funded ($10 million) Bush Blitz program also support the work of taxonomic research. These factors combine to add value by increasing the grantee’s capacity to engage additional researchers, including postgraduate students and postdoctoral researchers.

Table 2.8: Number of researchers, including early career researchers, supported

Target 2013–14 2014–15 2015–16 2016–17 Researchers supported 64 135 106 81 136

Analysis against the activity’s intended result The Department depends on the information and knowledge gained from environmental science and research to develop effective evidence-based policy and to make well-informed regulatory decisions. In 2016–17, we made environmental information publicly accessible to help government agencies, other regulators and the community better understand Australia’s biodiversity and give confidence in the science behind environmental regulation. State of the environment, the ABRS and the Bioregional Assessment Program are examples of our successes in 2016–17. The complexity of the research that underpins the Bioregional Assessment Program meant we were unable to complete all assessments during 2016–17. We continue to explore opportunities to better utilise the data and information we generate, commission, and hold.

State of the environment 2016 Our publication of the Australia state of the environment 2016 report in March 2017 was an important achievement. The report provides Australians with authoritative information on the state of the environment. The 2016 report kept the same framework, thematic structure and ‘report card’ summaries as the 2011 report, enabling comparison of findings over time. For the first time we presented this information in an interactive digital format with many pathways to information. This

24 will allow readers to explore in ways that suit them, thereby enhancing accessibility. While initial feedback on the digital format of this report is good, evaluation will assist in achieving its continued success and further increase the reach and impact of the report.

Australian Biological Resources Study In 2016–17, the ABRS performed strongly with regard to improving understanding of the Australian environment, as evidenced by our contribution to the financial support of 136 researchers (including 66 early career researchers) and by the discovery, description and publication of 409 species and other taxa. Both results well exceed the targets. The results reported for the ABRS are largely the result of synergies created by the ABRS’s role in coordinating, collating and publishing taxonomic data and information, funding targeted research and surveys through the National Taxonomy Research Grant Program and Bush Blitz, and working in partnership with the Australian taxonomic science and collections’ communities. In 2016–17, the ABRS contributed to environmental decision-making through collaborative research and enhanced discovery of, access to and use of environmental information. We play an important role in ensuring authoritative base-level scientific data is collated from scientific research and made available for robust, evidence-based decisions relating to our policies and programs such as the Threatened Species Strategy, the National Landcare Program, and for assessment and referral decisions under the EPBC Act.

Raising understanding of water-related impacts of coal seam gas and large coal mines Through our support for the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development, we continued to improve the knowledge of water-related impacts of coal seam gas and large coal mining developments. Well-developed procedures and the expert technical assistance of the Office of Water Science enabled us to provide and publish all advice to regulators on the impacts of coal seam gas and large coal mines within statutory time frames. Delays in the completion and release of bioregional assessments for all 13 bioregions led to a partially achieved result for this target. The delays arose from the complexity of the research (because of its regional scale and the computationally and resource intensive analysis it required) and the need to focus on ensuring the quality and clear communication of the science outputs. The Bioregional Assessment Program Implementation Board is overseeing management of time frames and risks, including through regular status reporting and adapting the product development cycle with our technical partners.

Improving the use of environmental data and information In 2016–17, we developed a change management plan, engagement plan and action plan to support our internal Environmental and Energy Information Strategy, which is due to be finalised in December 2017. The strategy’s vision is for environmental information to be valued as an asset that is available to those who need it, when they need it, and to enable delivery against the Department’s purposes. The strategy seeks to improve our management and governance of environmental information and data while ensuring we meet whole-of-government requirements. We appointed the Environmental Research Information Network Assistant Secretary as our Chief Data Officer and created a section to support a new data and information management maturity program. An aim of the program is to increase the usability of data and information by simplifying business processes. In conjunction with our program partners, we continually review and improve our approach to the dissemination of data and information products in response to the needs of environmental decision makers. For example, the use and uptake of information products from NESP hubs will be informed by the mid-term evaluation being undertaken in 2017.