Senate Environment and Communications Legislation Committee

Senate Estimates hearing, 26 Oct 2026

Searchable transcript of the Senate Environment and Communications Legislation Committee, 26 Oct 2026 Senate Estimates hearing, with chapters: Opening Remarks and Condolences for Dr. Helen Haines, Secretary Statement on Fiji Pre-COP Logistics, Total Estimated Costs for Pre-COP 31, Broadcasting and…

Chapters

Opening Remarks and Condolences for Dr. Helen Haines (0:03)
The committee opens with an acknowledgement of country and expresses condolences for Dr. Helen Haines following a recent attack, while also addressing administrative hearing matters.
Secretary Statement on Fiji Pre-COP Logistics (5:43)
Secretary Mike Kaiser delivers an opening statement justifying the logistics, staffing levels, and diplomatic objectives for the Fiji pre-COP event.
Total Estimated Costs for Pre-COP 31 (9:25)
Senator Henderson questions the department on the total $34.6 million expenditure for the pre-COP 31 event held in Fiji and Tuvalu.
Broadcasting and Media Center Infrastructure Costs (12:51)
Officials provide a breakdown of the $20 million event management contract and the $2 million spent on broadcasting and media center infrastructure.
Historical Cost Comparisons for International Summits (17:18)
Minister Watt provides context for the current spending by comparing pre-COP costs to historical expenditures for APEC and G20 summits under previous governments.
Itemized Hotel and Accommodation Expenses in Fiji (21:08)
The department provides an itemized list of contracted amounts for various hotels in the Nadi area used for delegates and workforce accommodation.
Catering Costs and Regional Strategic Importance (26:51)
Discussion covers catering and reception costs while debating the strategic importance of Pacific regional engagement and climate diplomacy.
Attendance of World Leaders and Delegation Travel (33:54)
Officials list the Pacific world leaders who attended the event and discuss delegation travel arrangements, including economy class travel for staff.
Funding and Reprioritisation of COP Events (45:04)
Minister McAllister explains the $147.8 million funding allocation for COP-related events and the process of reprioritizing existing funds.
Strategic International Partnership Investment Stream (46:42)
Debate over the use of savings from a coalition-era international partnership program to fund current climate diplomacy initiatives.
Invitations to World Leaders for Pre-COP (1:24:32)
Senator Henderson questions the department on which world leaders were invited to the pre-COP conference, while the Secretary explains the role of PM&C in issuing invitations.
Departmental Awareness of Invitation Lists (1:31:47)
Officials from DCCEEW discuss their level of awareness regarding the invitation list for world leaders and the logistical implications of potential high-level attendance.
Minister Bowen's Engagement with Counterparts (1:39:42)
The committee examines whether Minister Chris Bowen personally lobbied international counterparts to attend the pre-COP meeting in the Pacific region.
Event Planning and Contingency Arrangements (1:42:03)
Discussion focuses on the department's planning for the event, including venue bookings and contingencies for world leaders versus ministerial-level delegates.
Breakdown of Conference Participant List (1:48:10)
Ms. Munro provides a detailed list of the 53 leaders and ministers, along with hundreds of delegates, who attended the conference and stakeholder programs.
Travel Costs for Former Prime Ministers (1:54:10)
Senator Henderson inquires about the funding for travel and accommodation for former Prime Ministers Julia Gillard and Jacinda Ardern.
Youth Climate Champion Travel Expenses (1:55:15)
The department provides a breakdown of travel and business-class flight costs for the Youth Climate Champion, Sally Higgins, across multiple international trips.
Inquiry into COP31 Sydney Hotel Contract (1:59:59)
Senators question a $682,000 limited tender contract for accommodation and meeting rooms at a Sydney hotel for COP31 preparatory events.
Debate on International Event Hosting Costs (2:03:32)
A heated exchange occurs regarding the scale of spending on international meetings compared to the costs of the 2014 G20 summit in Brisbane.
Breakdown of Sofitel Sydney Venue Hire (2:10:57)
Officials provide details on the specific events and international delegate numbers associated with the Sofitel Darling Harbour contract.
Tomago Smelter and Snowy Hydro 2.0 (2:13:56)
Senator Roberts questions the viability of the Tomago smelter's power purchase agreement and its reliance on Snowy Hydro 2.0.
Firming Renewables for Heavy Industry (2:21:44)
Technical discussion on how solar and wind power will be firmed using batteries, gas, and pumped hydro to support heavy industrial operations.
Energy Security and Hunter Region Jobs (2:27:41)
The committee debates the impact of the energy transition on 6,000 jobs in the Hunter Valley and the reliability of coal versus renewables.
Regulation of Plug-in Solar Technology (2:34:28)
Officials discuss the current legal status of plug-in solar resources in Australia and the development of necessary safety standards.
Home Battery Scheme Subsidy Review (2:39:03)
Senators review the Home Battery Scheme's $8.1 billion appropriation and recent adjustments to subsidy levels due to falling technology costs.
Regulatory Framework for Data Center Energy (2:54:00)
The committee examines proposed legislation for data centers, focusing on requirements for new renewable generation and ensuring these facilities do not increase electricity prices for consumers.
Conflicting Forecasts on National Diesel Consumption (3:03:26)
Senators question a discrepancy between Treasury and Department forecasts regarding future diesel consumption, with one projecting an increase and the other a decline by 2030.
Impact of Coal Extensions on Renewables (3:05:57)
Discussion on how extensions of coal-fired power stations by state governments and private operators impact investment certainty for new renewable energy projects.
Progress Toward 82 Percent Renewable Target (3:10:18)
Minister Ayres provides an update on the buildout of the national electricity grid, highlighting the volume of projects in progress to meet the 82% renewable energy target.
Debate on Fossil Fuel Industry Education (3:12:15)
A debate occurs regarding reports of fossil fuel companies influencing school curricula and extracurricular activities in industrial regions like the Hunter Valley.
Impact of Batteries on Wholesale Prices (3:16:12)
Officials report a 27% year-on-year decline in wholesale electricity prices, attributing the drop to increased battery storage and renewable energy penetration.
Electric Vehicle Uptake and Policy Incentives (3:23:47)
Officials provide statistics on the rapid acceleration of electric vehicle sales in Australia and the impact of government incentives and efficiency standards.
Capacity Investment Scheme Project Status and Withdrawals (3:27:11)
Examination of the number of projects announced, contracted, and withdrawn under the Capacity Investment Scheme (CIS), including reasons for project withdrawals.
Challenges in Reaching CIS Financial Close (3:30:53)
Discussion on the timelines for projects reaching financial close and the market challenges, such as capital costs and network access, causing delays in the CIS.
Renewable Generation Capacity Under CIS Contracts (3:33:26)
A review of the total renewable generation capacity under contract versus what has been delivered to the grid, alongside a debate on historical energy policy.
Operational Projects and Withdrawn Generation Capacity (3:36:12)
Details on specific operational projects like the Makoen Solar Farm and the total gigawatts of renewable and dispatchable capacity lost through withdrawn CIS bids.
CIS Contract Costs and Negotiation Status (3:39:05)
Discussion on the net present value of CIS contracts and the status of ongoing negotiations for projects before the committee adjourns for lunch.
Examination of National Security and AFP (4:01:56)
Discussion regarding the strategic priorities of the Australian Federal Police and national security frameworks.
Online Safety and Privacy Law Implementation (4:20:58)
Examination of the implementation of online safety standards and updates to the Privacy Act.
ANAO Audits of Climate and Energy Programs (4:46:00)
Senator McDonald questions the department on its response to Auditor-General findings regarding vague definitions in climate and green economy programs.
Oversight of Snowy 2.0 Project Management (4:49:28)
Discussion regarding the department's oversight role in Snowy 2.0 following a critical ANAO audit highlighting project management deficiencies and cost blowouts.
Employment Data for the Green Economy (4:53:08)
Senator McDonald inquires about which agency is responsible for tracking jobs, salaries, and economic value within the emerging green economy.
Measuring the Net Zero Transition (4:57:18)
A debate occurs regarding the difficulty of categorizing 'green jobs' and the use of ABS and Treasury data to measure the structural shift to net zero.
Departmental Structure for Economic Modeling (5:03:01)
Senator McDonald asks for details on the specific policy sections within the department dedicated to modeling the economic impacts of the climate transition.
New England Renewable Energy Zone (5:05:29)
Senator Roberts questions the planning and inclusion of the New England Renewable Energy Zone in the AEMO Integrated System Plan (ISP).
AEMO Integrated System Plan Methodology (5:11:48)
Officials explain the criteria for 'anticipated projects' in the ISP and the consultation process between draft and final plan releases.
Methane Leak Reporting and Monitoring (5:16:57)
Senator Pocock raises concerns about reported methane leaks at Chevron's Gorgon facility and the regulatory framework for monitoring such events.
Regulatory Framework for Industrial Emission Compliance (5:26:01)
The Minister defends the regulatory separation between policy development and compliance enforcement regarding industrial emissions and the role of the Clean Energy Regulator.
COP31 Preparations and Fossil Fuel Projects (5:30:52)
Examination of Australia's climate policy ambition ahead of COP31, the approval process for new fossil fuel projects, and concerns raised by Pacific Island nations.
Diesel Use Reduction and Safeguard Facilities (5:40:03)
Discussion on incentives for reducing diesel consumption at facilities regulated under the Safeguard Mechanism, featuring a case study on mining electrification in the Pilbara.
Capacity Investment Scheme Project Status Update (5:45:12)
A breakdown of the 27 wind, solar, and battery projects withdrawn from the Capacity Investment Scheme and the various reasons for their withdrawal from the tender process.
Expenditure and Design of Home Battery Program (5:50:34)
Debate over the budget expenditure and design changes of the Cheaper Home Batteries program, focusing on household take-up and impacts on electricity bills.
Korea Green Trade and CCS Grant Assessment (5:58:18)
Updates on negotiations for the Korea Green Trade deal and the departmental assessment process for Carbon Capture and Storage grants awarded to Pilot Energy.
Pilot Energy Grant Assessment and FOI (6:03:10)
The committee examines the assessment process for a grant awarded to Pilot Energy's Midwest Clean Energy Project, following FOI disclosures regarding its technical rating.
Modeling for Cheaper Home Batteries Program (6:09:04)
Discussion regarding the financial modeling and installation data underpinning the government's home battery program and its total expenditure over time.
Pilot Energy Administration and Fund Recovery (6:12:26)
Senators question the department on the recovery of public funds following Pilot Energy entering administration and the role of the Business Grants Hub.
CCS Market Distress and Gorgon Liability (6:15:46)
The committee discusses potential market distress in the Carbon Capture and Storage sector and unquantifiable liabilities related to the Gorgon CCS project.
CEFC CEO Opening Statement and Overview (6:29:29)
New CEFC CEO Paul McCartney provides an opening statement highlighting record investment commitments and the progress of the Rewiring the Nation program.
Impact of Hyperinflation on Wind Projects (6:31:53)
The CEFC CEO explains how global inflation has increased wind farm project costs by 20-30%, leading to a need for concessional finance to bridge liquidity gaps.
Rewiring the Nation Fund Performance (6:41:51)
An examination of the Rewiring the Nation fund's contractual commitments, deployment rates, and current rate of return relative to its investment mandate.
RTN Rate of Return and Performance (6:44:02)
Inquiry into the Rewiring the Nation fund's rate of return, which currently sits below the benchmark target due to the early stage of fund deployment.
RTN Funding for Western Australia (6:47:32)
Discussion regarding the $3 billion set aside for Western Australia under the Rewiring the Nation fund and the status of active negotiations with the WA government.
Data Center Investments and Green Energy (6:51:53)
Review of CEFC negotiations involving data centers, focusing on driving the use of renewable energy and the role of global investors in the sector.
Rushy Lagoon and Agricultural Land Conversion (7:00:16)
Debate over the CEFC's investment in the Tasmanian Natural Asset Trust for the acquisition of Rushy Lagoon and the conversion of agricultural land to forestry.
Integrity and Conflict of Interest Management (7:06:30)
Examination of conflict of interest management procedures within the CEFC, specifically regarding the chair's role on the Foreign Investment Review Board (FIRB).
Snowy 2.0 Cost Reassessment (7:25:16)
Snowy Hydro Limited provides an opening statement regarding the cost reassessment for the Snowy 2.0 project, detailing updated target costs and project complexity.
Snowy Hydro 2.0 Opening Statement and Costs (7:25:16)
Snowy Hydro CEO Dennis Barnes provides an opening statement detailing the cost reassessment of Snowy 2.0 to $22.2 billion and the transition from a fixed-price contract to an incentivized target cost model.
Feasibility of Initial Two Billion Dollar Estimate (7:29:54)
The CEO admits the initial $2 billion headline figure for the project was infeasible and explains how design immaturity at the final investment decision led to significant cost blowouts.
Debt Financing and Interest Cost Projections (7:31:45)
Senator Roberts questions the timeline for debt repayment and the total interest costs associated with the project, while the CEO discusses shareholder loans and capitalized interest.
Project Viability and Potential Termination Costs (7:34:48)
Discussion turns to the costs of terminating the project versus completion, the project's role as a storage facility rather than a generator, and the impact on the construction workforce.
Political Accountability for Snowy 2.0 Design (7:38:17)
A heated exchange occurs regarding which government is responsible for the project's failures, with the Minister blaming the previous administration's poor engineering design and lack of due diligence.
Contract Reset and National Grid Benefits (7:44:35)
The CEO explains the chronology of the contract reset to an ITC model to improve productivity and outlines the project's value in ensuring grid reliability and lowering wholesale prices.
Geological Risk Management and Tunneling Progress (7:53:59)
The CEO details efforts to manage geological risks, including advanced probing and dewatering technology for tunnel boring machines Monica and Florence in difficult zones.
Energy Transition and Document Production Orders (7:59:16)
The hearing concludes with a debate on the transition to renewables versus coal-fired power, followed by questions regarding the department's failure to comply with a Senate order for document production.
Compliance with Senate Document Orders (8:03:57)
Officials are questioned regarding the department's failure to comply with a Senate order for the production of Snowy Hydro cost documents.
Impact of Increased Document Orders (8:07:44)
Minister Watt discusses the significant increase in Senate orders for documents and the resulting workload pressures on the department.
Snowy Hydro Cost Reassessment Components (8:13:45)
Snowy Hydro CEO Dennis Barnes explains the three main elements of the project's cost reassessment, including contractor and shadow forecasts.
Timeline of Cost Report Correspondence (8:21:15)
Senators probe the timeline of when the cost reassessment letter and supporting documents were provided to the Minister and the department.
Upper Murrumbidgee Environmental Water Review (8:27:03)
Senator Pocock asks about the independent review of the Upper Murrumbidgee River and the implementation of environmental water release recommendations.
Tantangra Fish Screens and Biodiversity (8:32:54)
Discussion regarding the cost and effectiveness of fish screens at Tantangra Dam to prevent the spread of invasive redfin perch.
Project Cost Blowouts and Progress (8:39:27)
Senator Henderson questions the $25 billion total project cost and the "earned value" progress of Snowy 2.0 construction.
Addressing Geological and Technical Risks (8:45:20)
A detailed examination of the geological risks involved in the project, including tunneling through fault zones and the excavation of massive underground caverns.
Inflationary Pressures on Construction Costs (8:46:29)
Analysis of how global inflation, labor costs, and supply chain pressures contributed approximately $2.5 billion to the project's cost escalation.
Requirement for Additional Government Support (8:49:41)
Discussion regarding the breakdown of Commonwealth investment and the anticipated need for further government support to maintain Snowy Hydro's credit rating.
Political Accountability for Cost Blowouts (8:56:37)
A debate between committee members and the Minister regarding political responsibility for the project's mismanagement and the findings of ANAO reports.
Impact of Labor Costs and EBA (9:03:30)
Examination of labor costs and the impact of the renegotiated Enterprise Bargaining Agreement (EBA), which added nearly $1 billion to the project budget.
Economic Modeling and Asset Valuation (9:16:04)
Technical discussion on the project's economic modeling, including Net Present Value (NPV) and the Weighted Average Cost of Capital (WACC) used for valuation.
Transparency on Project Economic Benefits (9:27:29)
Discussion centers on the absence of a revised Net Present Value (NPV) for Snowy 2.0 and the potential requirement for a multi-billion dollar government support package to maintain the project's viability.
Political Debate on Project Management (9:31:58)
A heated exchange occurs between the Minister and Senators regarding the historical design and management of Snowy 2.0, leading to the conclusion of the agency's testimony.