On behalf of Mr Jihad Dib: I move:

That this bill be now read a second time.

The Energy Amendment (Pipelines and Gas Safety) Bill 2024 is about ensuring public safety when it comes to New South Wales gas infrastructure. The New South Wales energy system and the role of gas within that system are undergoing rapid change. As this change occurs, public safety remains at the forefront of our minds. For this reason, it is critical that our regulatory framework for gas infrastructure keeps pace. The amendments in the bill strengthen and harmonise the safety and technical regulation for pipelines and other gas network infrastructure in New South Wales.

The bill amends three pieces of legislation: the Gas Supply Act 1996, the Pipelines Act 1967 and the Criminal Procedure Act 1986. Schedule 1 to the bill amends the Gas Supply Act. The amendments in the bill are intended to modernise the Gas Supply Act and better harmonise it with the Pipelines Act as well as other similar energy legislation in New South Wales and other jurisdictions. The changes will enhance the governance, safety and operational efficiency of gas networks in New South Wales. Many of the changes are in response to issues raised with the Department of Climate Change, Energy, the Environment and Water over the last few years by a wide range of stakeholders, including gas network operators, industry representatives and community members. The Department of Climate Change, Energy, the Environment and Water publicly consulted on the proposed changes to the Gas Supply Act and the Pipelines Act in August and September last year. The feedback from the consultation was broadly supportive of the proposed amendments and the case for change.

The amendments include expanding government inspection powers to better investigate incidents, enable seizure of materials for comprehensive testing to determine failure causes, and direct actions to ensure network safety and reduce the chance of hazardous incidents happening. This is consistent with powers in other legislation from New South Wales and other jurisdictions. The enhanced investigation powers aim to allow effective and timely investigations to take place in response to gas leak and rupture incidents, such as the devastating explosion in Whalan last year, thereby reducing public safety risks.

The changes will also align offences and penalties in the Gas Supply Act and the Pipelines Act. Some of the current penalties are outdated. This bill increases penalties to ensure they are high enough to deter breaches of the regulatory framework. Correspondingly, Local Court penalty limits are also increased, and continuing offences introduced. The proposed introduction of penalty infringement and show cause notices would provide a structured and timely response to violations and ease reliance on court processes for the award of offences. Further amendments include general refinements to administrative processes, including the ability to delegate the Minister's and secretary's functions, and clarification to the regulation-making power for data collection. All amendments to the Gas Supply Act are intended to commence on the bill's assent. These changes will ensure that the regulation of the New South Wales gas network is consistent with other energy legislation and maintains public safety and operational integrity.

I now turn to schedule 2 to the bill, which amends the Pipelines Act 1967 No 90. The intention of the proposed amendments to the Pipelines Act are similar to the proposed amendments for the Gas Supply Act, bringing both Acts into alignment in terms of obligations, offences and investigator powers. The proposed amendments include introducing certain requirements such as compliance with Before You Dig Australia protocols and notification for damage to pipelines. An additional proposed amendment to the Pipelines Act is a new regulation‑making power to prescribe minimum requirements for compulsory acquisition processes by licensees for pipeline land and easements. The regulation‑making power will enable requirements, such as those modelled on the New South Wales Land Acquisition (Just Terms Compensation) Act 1991, to be indicated for the establishment of a land acquisition process that meets contemporary community expectations and that are consistent with other energy infrastructure.

I echo the clarification given by the Minister in the other place in relation to the amendment regarding compulsory acquisitions. In New South Wales gas pipelines are owned and operated by private companies. Unlike other forms of infrastructure such as roads or transmission lines, the Government does not acquire the land or easement required for a gas pipeline. What we are trying to do with the amendment in the bill is to ensure that the community and pipeline companies have clarity about the process that must be followed to negotiate land acquisition before resorting to compulsory acquisition. We intend to align those requirements as much as possible with those set out in the just terms Act. That will provide certainty to both communities and industry. Landowners who are affected by new pipelines have the right to know what they can expect in those circumstances in terms of due process. We want to provide them with that certainty.

The bill also includes refinements to administrative processes and delegations. The amendments to the Pipelines Act will occur in two stages. The amendments relating to fees and penalties being debts due to the Crown are proposed to commence by proclamation due to the need to make corresponding amendments to the Pipelines Regulation 2023. Those are expected to occur in the first half of this year. All other proposed changes are intended to commence on the bill's assent. Ultimately, the proposed changes aim to modernise and harmonise the Pipelines Act to be consistent with other New South Wales legislation and jurisdictions and to enhance the safety and operational efficiency of pipelines infrastructure in New South Wales.

I now turn to schedule 3, which amends the Criminal Procedure Act 1986. The changes are consequential to the penalty amendments in the Gas Supply Act and Pipelines Act. The proposed changes to the Criminal Procedure Act are required to enable indictable offences in those Acts to also be able to be tried summarily. Effectively, the change will improve efficiency by utilising alternative court levels, thereby alleviating burden on court processes for indictable offences. The bill is about modernising outdated legislation to promote public safety and meet community expectations. It is further evidence of the Government's commitment to sensible regulatory reform to support the transformation of New South Wales' energy system. I commend the bill to the House.