Coal Queensland
Clean Technology
Special Agreement Bill 2007
Queensland
Clean Coal Technology Special
Agreement Bill 2007
Contents
Page
Part 1 Preliminary
1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2 Object of Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3 Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Part 2 Clean Coal Council
4 Establishment of council. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Membership of council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Functions of council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
7 Reporting to the Minister about funding requests . . . . . . . . . . . . 6
8 Conduct of council's business . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
9 Administrative support for council. . . . . . . . . . . . . . . . . . . . . . . . . 6
10 Delegation by Minister . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Part 3 Queensland Clean Coal Agreement
11 Premier may make agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Schedule Queensland Clean Coal Agreement . . . . . . . . . . . . . . . . . . . . 8
2007
A Bill
for
An Act to establish the Clean Coal Council and to authorise the
Premier to enter into the Queensland Clean Coal Agreement
s1 4 s4
Clean Coal Technology Special Agreement Bill 2007
The Parliament of Queensland enacts-- 1
Part 1 Preliminary 2
1 Short title 3
This Act may be cited as the Clean Coal Technology Special 4
Agreement Act 2007. 5
2 Object of Act 6
The object of this Act is to accelerate the development, 7
demonstration and widespread implementation and use of 8
clean coal technology by encouraging collaborative 9
investment, by the State and the coal industry, in research, 10
development and demonstration. 11
3 Definitions 12
In this Act-- 13
ACALET means ACA Low Emissions Technologies Limited 14
ACN 123 147 240. 15
agreement means the agreement made under section 11. 16
council means the Clean Coal Council established under 17
section 4. 18
relevant project means a Queensland Clean Coal Technology 19
Project or National Clean Coal Technology Project under the 20
agreement. 21
Part 2 Clean Coal Council 22
4 Establishment of council 23
The Clean Coal Council is established. 24
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Clean Coal Technology Special Agreement Bill 2007
5 Membership of council 1
(1) The council consists of at least 11 members made up of-- 2
(a) 1 person who is to be the chairperson of the council; and 3
(b) 5 representatives of the Government of Queensland; and 4
(c) 5 representatives of the Queensland black coal industry 5
who are nominated by ACALET; and 6
(d) other persons who the Minister is satisfied have relevant 7
experience in, or knowledge of, any aspect of clean coal 8
technology. 9
(2) Members of the council are to be appointed by the Minister by 10
gazette notice. 11
(3) Members of the council hold office on the conditions, 12
including the term of office, decided by the Minister. 13
(4) The Minister may change the conditions on which a member 14
of the council holds office. 15
6 Functions of council 16
The functions of the council are-- 17
(a) advising the Minister about priorities for funding in 18
Queensland for the development, demonstration and 19
widespread implementation and use of clean coal 20
technology, including the sourcing of public and private 21
funding; and 22
(b) assessing, and making recommendations to the Minister 23
about, which relevant projects should be funded under 24
the agreement, and the amount of funding that should be 25
provided; and 26
(c) considering intellectual property issues associated with 27
relevant projects; and 28
(d) reporting to the Minister under section 7 about requests 29
for funding, received by the council, for projects relating 30
to clean coal technology, including relevant projects; 31
and 32
(e) co-ordinating the State's involvement in international 33
research collaborations relating to clean coal 34
s7 6 s 10
Clean Coal Technology Special Agreement Bill 2007
technology, including the project that is, immediately 1
before the commencement of this section, known as 2
FutureGen; and 3
(f) if asked by the Minister in writing, advising the Minister 4
on other matters relevant to the development of clean 5
coal technology. 6
7 Reporting to the Minister about funding requests 7
The council must if asked by the Minister, and may on its own 8
initiative, report to the Minister about a request received by 9
the council for funding for a project relating to clean coal 10
technology, including a relevant project. 11
8 Conduct of council's business 12
(1) The council may conduct its business, including its meetings, 13
in the way it considers appropriate. 14
(2) However, the council must meet at least 3 times in a year. 15
9 Administrative support for council 16
The department may make administrative support services 17
available to the council to enable the council to perform its 18
functions. 19
10 Delegation by Minister 20
(1) The Minister may delegate the Minister's functions under this 21
part to another Minister. 22
(2) In this section-- 23
functions includes powers. 24
s 11 7 s 11
Clean Coal Technology Special Agreement Bill 2007
Part 3 Queensland Clean Coal 1
Agreement 2
11 Premier may make agreement 3
The Premier is authorised to make, for the State, an agreement 4
with ACALET substantially in the form set out in the 5
schedule. 6
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Clean Coal Technology Special Agreement Bill 2007
Schedule Queensland Clean Coal 1
Agreement 2
section 11 3
Details 4
Date 5
Parties 6
Name ACA Low Emissions Technologies Limited ACN 7
123 147 240 8
ABN 90 123 147 240 9
Short form name ACALET 10
Notice details PO Box 9115 11
Deakin ACT 2600 12
13
Facsimile 02 6273 6060 14
Attention: Mark O'Neill, Executive Director 15
16
Name The State of Queensland 17
ABN 18
Short form name State 19
Notice details PO Box 15185 20
City East Qld 4002 21
22
Facsimile 07 3227 7433 23
Attention Director-General, Department of the 24
Premier and Cabinet 25
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Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
Background 1
A The purpose of this Deed is to give effect to the agreement between 2
ACALET and the State to work together on developing and 3
implementing Queensland Clean Coal Technology Projects that 4
have the potential to facilitate substantial reductions in greenhouse 5
gas emissions from the use of coal in Queensland and Australia, 6
and in the overseas markets for Queensland coal. 7
B The black coal mining industry has established a voluntary fund 8
which will be managed by ACALET, and which is commonly 9
known as the COAL21 Fund, to support research, development and 10
demonstration aimed at developing Clean Coal Technologies. 11
C Participating coal producers have agreed to pay a voluntary levy of 12
10 cents per tonne of saleable coal to the COAL21 Fund, 13
commencing with effect from 1 April 2007, increasing to 20 cents 14
per tonne with effect from 1 July 2007. ACALET has applied to the 15
Australian Taxation Office for a Class Ruling. The term of the levy 16
is indefinite, but, subject to clauses 2.5 and 2.6, it will be 17
maintained for a minimum of 10 years. 18
D ACALET will use its best endeavours to ensure that all Queensland 19
Coal Producers commit to paying the levy in respect of their 20
Queensland Production. 21
E ACALET intends to contribute to approved Queensland Clean Coal 22
Technology Projects or National Clean Coal Technology Projects, 23
an amount equivalent to the total amount of the voluntary levy 24
raised in respect of Queensland Production. It is estimated that this 25
will raise approximately $600 million over 10 years based on 26
estimates of future tonnages in Queensland. 27
F Terms used above have the meanings ascribed to them in this Deed. 28
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Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
Agreed terms 1
1. Defined terms & interpretation 2
1.1 Defined terms 3
In this Deed: 4
Business Day means: 5
(a) for receiving a notice under clause 5, a day that is not a 6
Saturday, Sunday, public holiday or bank holiday in the 7
place where the notice is received; and 8
(b) for all other purposes, a day that is not a Saturday, 9
Sunday, public holiday or bank holiday in Queensland, 10
Australia. 11
Business Hours means from 9.00am to 5.00pm on a Business 12
Day. 13
Carbon Tax means: 14
(a) any tax, impost, surcharge, levy or penalty, the 15
imposition of which, or the rate of which, is dependent 16
upon, or calculated by reference to or in relation to the 17
production or emission of Greenhouse Gas; and 18
(b) any emissions trading or other scheme which has the 19
purpose or effect of limiting or reducing by any means 20
whatsoever, including, without limitation, by: 21
(i) issue of capping permits in respect of; 22
(ii) imposing a tax, impost, surcharge, levy or penalty 23
upon; or 24
(iii) requiring payment in any form, whether to the 25
State, or to the Commonwealth of Australia or to 26
another person, for the right to undertake, or to 27
acquire the right to undertake, 28
the production or emission of Greenhouse Gas; and 29
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Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
(c) a levy, tax or other impost mentioned in clause 2.5(c) 1
which has the purpose or effect set out in clause 2.5 is 2
enacted as complementary legislation to any legislation 3
of the Commonwealth of Australia. 4
Class Ruling means the Class Ruling to be obtained from the 5
Australian Taxation Office by ACALET on behalf of 6
Contributors, which confirms that Contributors are entitled to 7
claim income tax deductions for their payments of the Levy to 8
ACALET, and that, to the extent that ACALET's expenditure 9
in any period includes R&D Expenditure, the Contributors 10
will be entitled to claim a deduction for 125% of their 11
payments to ACALET under section 73B(13) of the Income 12
Tax Assessment Act 1936. 13
Clean Coal Council means the council established under the 14
Clean Coal Technology Special Agreement Act 2007 (Qld). 15
Clean Coal Technologies means technologies that have 16
potential to facilitate substantial reduction of emissions of 17
Greenhouse Gas to the atmosphere from the use of coal. 18
Clean Coal Technology Project means a project that has as 19
its purpose either or both of, the conduct of research and 20
development associated with the demonstration of, and the 21
demonstration of, Clean Coal Technologies. 22
Contributors means entities which pay the Levy to 23
ACALET. 24
Corporations Act means the Corporations Act 2001 (Cth). 25
CS Energy Oxy-fuel Project means the project to 26
demonstrate a technology for capturing carbon dioxide to be 27
carried out at Callide A power station. 28
Greenhouse Gas means any or all of carbon dioxide, 29
methane, nitrous oxide, hydroflourocarbons, perflourocarbons 30
and sulphur hexafluoride. 31
Levy means the voluntary levy to be collected by ACALET 32
from coal producers in Australia as described in paragraph C 33
of the Background. 34
National Clean Coal Technology Projects means those 35
Clean Coal Technology Projects that form part of a national 36
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Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
portfolio of such projects which are identified through a 1
nationally agreed action plan endorsed by the State, and in 2
respect of which the State agrees that Queensland 3
Contribution may be used to fund those projects. 4
Premier means the Premier of the State of Queensland or 5
such other Minister of the State of Queensland designated in 6
writing by the Premier from time to time. 7
Project Funding Agreement means an agreement entered 8
into by ACALET, in accordance with clause 3.3, with the 9
parties involved in, or the proponents of, a Clean Coal 10
Technology Project, which sets out the terms on which 11
ACALET will fund the project, whether by direct expenditure 12
on the acquisition of goods or services which are necessary 13
for the project, or by the making of payments to the 14
proponents of the project, or the parties involved with the 15
project or a company or entity established for the purpose of 16
carrying on the project, whether that expenditure or payment 17
occurs with or without consideration on the part of the 18
proponent of the project, or any other person. 19
Queensland Coal Producer means a person who is liable to 20
pay royalty in respect of coal under section 320 of the Mineral 21
Resources Act 1989, Queensland. 22
Queensland Contribution means that part of the Levy 23
(Queensland Levy Proceeds) which is calculated and paid by 24
Contributors to ACALET in relation to Queensland 25
Production, as advised by Contributors in accordance with 26
clause 2.2, net of ACALET reasonable administration costs 27
associated with that part of the Levy, the aggregate of which 28
administration costs over the first ten years of the term of this 29
Deed must not exceed 2% of the aggregate Queensland Levy 30
Proceeds over that period, unless otherwise agreed in writing 31
by the parties. 32
Queensland Clean Coal Technology Projects means Clean 33
Coal Technology Projects that are, or are to be, physically 34
based in Queensland. 35
Queensland Production means the amount of saleable coal 36
that is produced in Queensland in a period. 37
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Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
R&D Expenditure means `research and development 1
expenditure', as that term is defined in section 73B(1) of the 2
Income Tax Assessment Act 1936. 3
Tax Exemption Ruling means the private ruling dated 18 4
May 2007 which was received by ACALET from the 5
Australian Taxation Office which confirmed that ACALET is 6
exempt from income tax for the year of income ended 30 June 7
2007 until the year of income ended 30 June 2010, or any 8
subsequent private ruling which may be issued dealing with 9
the same subject matter for future years. 10
1.2 Interpretation 11
In this Deed, except where the context otherwise requires: 12
(a) the singular includes the plural and vice versa, and a 13
gender includes other genders; 14
(b) another grammatical form of a defined word or 15
expression has a corresponding meaning; 16
(c) a reference to a clause, paragraph, schedule or annexure 17
is to a clause or paragraph of, or schedule or annexure 18
to, this Deed, and a reference to this Deed includes any 19
schedule or annexure; 20
(d) a reference to a document or instrument includes the 21
document or instrument as novated, altered, 22
supplemented or replaced from time to time; 23
(e) a reference to A$, $A, dollar or $ is to Australian 24
currency; 25
(f) a reference to time is to Queensland, Australia time; 26
(g) a reference to a year is to a 12-month period ended 30 27
June; 28
(h) a reference to a party is to a party to this Deed, and a 29
reference to a party to a document includes the party's 30
executors, administrators, successors and permitted 31
assigns and substitutes; 32
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Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
(i) a reference to a person includes a natural person, 1
partnership, body corporate, association, governmental 2
or local authority or agency or other entity; 3
(j) a reference to a statute, ordinance, code or other law 4
includes regulations and other instruments under it and 5
consolidations, amendments, re-enactments or 6
replacements of any of them; 7
(k) the meaning of general words is not limited by specific 8
examples introduced by including, for example or 9
similar expressions; 10
(l) a rule of construction does not apply to the disadvantage 11
of a party because the party was responsible for the 12
preparation of this Deed or any part of it; and 13
(m) if a day on or by which an obligation must be performed 14
or an event must occur is not a Business Day, the 15
obligation must be performed or the event must occur on 16
or by the next Business Day. 17
1.3 Headings 18
Headings are for ease of reference only and do not affect 19
interpretation. 20
2. Queensland Clean Coal Technology Projects 21
2.1 Expenditure in Queensland 22
ACALET agrees that the Queensland Contribution will be 23
spent on Queensland Clean Coal Technology Projects or on 24
National Clean Coal Technology Projects approved or 25
determined by the Premier under clause 3.2, in accordance 26
with the provisions of this Deed, and will not be spent or used 27
for any other purpose. 28
15
Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
2.2 Allocation of Levy 1
ACALET will require Contributors to provide, each time they 2
make a payment of Levy to ACALET, a record showing how 3
much, if any, of the Levy which is paid relates to Queensland 4
Production. 5
2.3 Commitment of funds 6
ACALET will enter into Project Funding Agreements with 7
proponents of Queensland Clean Coal Technology Projects or 8
National Clean Coal Technology Projects, in accordance with 9
clause 3.3. 10
2.4 Rate of expenditure 11
(a) ACALET will endeavour to procure that, to the extent to 12
which it is practical, the amount of Queensland 13
Contribution which is collected by ACALET in each 14
year will be expended on Queensland Clean Coal 15
Technology Projects or National Clean Coal Technology 16
Projects in that year in accordance with Project Funding 17
Agreements relating to those projects. 18
(b) If, in any year, a greater or lesser amount of Queensland 19
Contribution is collected than is expended in that year 20
on Queensland Clean Coal Technology Projects or 21
National Clean Coal Technology Projects, the 22
difference, which will be added to or subtracted from 23
any cumulative difference from the previous years, will 24
be carried over to the following year and added to, or 25
subtracted from, as the case may be, the amount which 26
ACALET will endeavour to expend on Queensland 27
Coal Clean Technology Projects or National Clean Coal 28
Technology Projects in the subsequent year in 29
accordance with clause 2.4(a). 30
2.5 No increase in coal royalty rates 31
Despite any other provision of this Deed, the State agrees that 32
this Deed will be terminated, and ACALET will have no 33
16
Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
further obligations under this Deed, if any of the following 1
occurs: 2
(a) the rate of coal royalties in Queensland is increased 3
above the rate applying at the date of this Deed; 4
(b) the basis of application or method of calculation of coal 5
royalties in Queensland is changed from that applying at 6
the date of this Deed, so as to have the effect of 7
increasing the aggregate amount of coal royalty paid by 8
Queensland Coal Producers in relation to their 9
Queensland Production; or 10
(c) the State introduces or enforces any new levy, tax, or 11
other impost on Queensland Coal Producers, whether 12
payable to the State or otherwise, unless it is enacted as 13
complementary legislation to any legislation of the 14
Commonwealth of Australia; 15
with the purpose, whether directly or indirectly, or effect of 16
funding the development or demonstration of technology 17
which will assist in reducing the production or emission of 18
Greenhouse Gas from the use of coal. The parties 19
acknowledge that the Project Funding Agreements then in 20
existence will continue to operate in accordance with their 21
terms not withstanding termination of this Deed. 22
2.6 Introduction of Carbon Tax 23
The parties agree that if a Carbon Tax is introduced, either by 24
the Commonwealth of Australia or by the State, then: 25
(a) the operation of the Levy will be reviewed by the parties 26
to ensure that the purpose of this Deed set out in 27
paragraph (a) of the Background continues to be met; 28
(b) unless otherwise agreed in writing by the parties, any 29
such review will not affect ACALET's obligations under 30
this Deed, including its obligations under clauses 2.1 31
and 3.5, nor its obligations under the terms of any 32
Project Funding Agreement to which it is a party at that 33
time; and 34
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Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
(c) the parties will use reasonable endeavours to have the 1
Queensland Contribution paid to ACALET by 2
Contributors which is expended by ACALET under 3
those Project Funding Agreements, recognised in 4
relation to, and as an offset against those Contributors' 5
obligations, if any, under, that Carbon Tax, regardless of 6
whether the contributions have been made before or 7
after the introduction of the Carbon Tax. 8
2.7 Commitment to payment of Levy 9
ACALET will use its best endeavours to ensure that all 10
Queensland Coal Producers commit to paying the Levy. 11
3. Selection of Projects 12
3.1 Advice of Clean Coal Council 13
It is acknowledged that the Clean Coal Council will be 14
making recommendations to the Premier on which 15
Queensland Clean Coal Technology Projects or National 16
Clean Coal Technology Projects should be funded and the 17
amount of funding which should be provided by ACALET. 18
3.2 Decisions by Premier 19
(a) The Premier, having received a recommendation from 20
the Clean Coal Council, will advise ACALET if the 21
recommendation is accepted or, if it is not acceptable to 22
the Premier, what further action (if any) is required of 23
either the Clean Coal Council or ACALET. 24
(b) If the Premier wishes to consider another Queensland 25
Clean Coal Technology Project or National Clean Coal 26
Technology Project then the Premier will refer it to the 27
Clean Coal Council for its consideration, and the Clean 28
Coal Council must make a recommendation in relation 29
18
Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
to that project within a timeframe which is nominated by 1
the Premier. 2
(c) If the Clean Coal Council fails to reach agreement or the 3
Premier rejects its recommendation in relation to a 4
particular Queensland Clean Coal Technology Project or 5
National Clean Coal Technology Project, the Premier 6
retains the right to make the final decision in relation to 7
the funding of that project, including the amount of 8
funding to be provided by ACALET to that project. 9
3.3 Negotiation of Project Funding Agreements 10
(a) Subject to clause 4, ACALET agrees to negotiate in 11
good faith with the intention of executing a Project 12
Funding Agreement within 3 months after the relevant 13
decision of the Premier (or such longer period as may be 14
agreed by the State) with the proponents of each project 15
accepted or determined by the Premier under clause 3.2 16
in respect of the contribution to the project of the 17
amount of funding accepted or determined by the 18
Premier under clause 3.2, but only to the extent that 19
ACALET is satisfied, acting reasonably, that there will 20
be a sufficient balance of the Queensland Contribution 21
in the years to which the Project Funding Agreement is 22
proposed to relate, having regard to any commitments 23
arising under other Project Funding Agreements. 24
(b) ACALET will comply with its funding and other 25
obligations under the Project Funding Agreements. 26
(c) ACALET will provide the State with a copy of each 27
Project Funding Agreement and of any amendment to a 28
Project Funding Agreement upon its execution. 29
3.4 Matching of contributions 30
The parties agree that they will seek to ensure that every dollar 31
of Queensland Contribution which is expended on 32
Queensland Clean Coal Technology Projects or National 33
Clean Coal Technology Projects under Project Funding 34
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Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
Agreements is matched by at least two dollars from other 1
project participants including power generators, other private 2
sector partners, the Commonwealth of Australia, the State, 3
and other States and Territories of Australia. 4
3.5 IGCC Plant 5
The parties acknowledge and agree that, notwithstanding 6
anything to the contrary in this Deed (other than clauses 2.5 7
and 4.1): 8
(a) one of the Queensland Clean Coal Technology Projects 9
which the Clean Coal Council will review and 10
recommend to the Premier is an integrated gasification 11
combined cycle (IGCC) plant; 12
(b) the amount of $300 million is to be provided by 13
ACALET as funding for that project; and 14
(c) subject to clause 3.5(b), the Premier will make the final 15
decision in accordance with clause 3.2 on the IGCC 16
project which is to be funded, including the scale and 17
configuration of that project. 18
3.6 CS Energy Oxy-fuel Project 19
The parties acknowledge and agree that the CS Energy 20
Oxy-fuel Project is a Queensland Clean Coal Technology 21
Project which will be funded from the Queensland 22
Contribution. 23
3.7 Collaboration 24
The parties acknowledge that ACALET and proponents of 25
Queensland Clean Coal Technology Projects which are the 26
subject of Project Funding Agreements may, in the pursuance 27
of, and as part of their expenditure on, such Queensland Clean 28
Coal Technology Projects enter into alliances, exchanges of 29
information, research agreements and collaborations with 30
other organisations pursuing projects with similar objectives 31
whether in Queensland or elsewhere, provided they are 32
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Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
entered into on an arms length basis and will materially 1
benefit and support those Queensland Clean Coal Technology 2
Projects. 3
3.8 Reporting by ACALET 4
ACALET shall provide a written report to the State on at least 5
a six-monthly basis in relation to such matters as may 6
reasonably be required by the State including: 7
(a) the unexpended balance of the Queensland 8
Contribution; 9
(b) the forecast amounts of the Queensland Contribution for 10
each of the subsequent ten years; 11
(c) the status of projects the subject of Project Funding 12
Agreements; 13
(d) the status of projects which have been approved or 14
determined by the Premier under clause 3.2 but in 15
respect of which Project Funding Agreements have not 16
yet been executed; 17
(e) the administrative expenses of ACALET; and 18
(f) the expenditure made and forecast to be made by 19
ACALET under Project Funding Agreements on an 20
individual project basis and in aggregate. 21
4. Class Ruling and Tax Exemption Ruling 22
4.1 Consistency with Class Ruling and Tax Exemption 23
Ruling 24
The State agrees that ACALET will only enter into a Project 25
Funding Agreement in relation to any Queensland Clean Coal 26
Technology Project or National Clean Coal Technology 27
Project, where entry into that Project Funding Agreement is 28
consistent with the basis upon which the Australian Taxation 29
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Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
Office prepared the Class Ruling and the Tax Exemption 1
Ruling. The parties acknowledge and agree that this clause 2
does not derogate from the obligation of ACALET under 3
clause 2.1 to ensure that the Queensland Contribution is spent 4
on Queensland Clean Coal Technology Projects or National 5
Clean Coal Technology Projects nor the obligation of 6
ACALET under clause 3.5(b) to spend the amount of $300 7
million of the Queensland Contribution on an IGCC project. 8
4.2 Nature of Project Funding Agreements 9
The parties agree that ACALET will use its best endeavours to 10
negotiate the terms of each Project Funding Agreement to 11
ensure that to the greatest extent possible, the Project Funding 12
Agreement is consistent with the basis upon which the 13
Australian Taxation Office prepared the Class Ruling and the 14
Tax Exemption Ruling. Without limiting the foregoing, 15
ACALET will have discretion in relation to the following, 16
provided such discretion is exercised in good faith and in 17
order to ensure such consistency: 18
(a) whether it funds a particular part of a Queensland Clean 19
Coal Technology Project or National Clean Coal 20
Technology Project, or the entire project; 21
(b) whether or not ACALET is entitled to any consideration 22
for its contribution, and the nature of that consideration; 23
(c) whether ACALET contributes funds directly to the 24
proponents of the Queensland Clean Coal Technology 25
Project or National Clean Coal Technology Project, or 26
whether it pays for the acquisition of goods and services 27
related to, or required by, the project. 28
ACALET will keep the State fully informed regarding the 29
basis upon which the Australian Taxation Office prepared the 30
Class Ruling and the Tax Exemption Ruling and of all 31
negotiations regarding Project Funding Agreements. 32
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Clean Coal Technology Special Agreement Bill 2007
Schedule (continued)
4.3 Further ruling 1
If the State and ACALET are unable to agree as to whether or 2
not entering into a Project Funding Agreement with a 3
Queensland Clean Coal Technology Project or National Clean 4
Coal Technology Project is consistent with the basis upon 5
which the Australian Taxation Office prepared the Class 6
Ruling or the Tax Exemption Ruling, then: 7
(a) ACALET will seek in a timely manner either or both of 8
a further Class Ruling and Tax Exemption Ruling from 9
the Australian Taxation Office, based upon the 10
assumption that ACALET will enter into such a Project 11
Funding Agreement; and 12
(b) ACALET is not required to enter into that Project 13
Funding Agreement unless and until it receives a further 14
Class Ruling or Tax Exemption Ruling in terms which 15
ACALET reasonably believes are favourable. 16
5. Notices and other communications 17
5.1 Service of notices 18
A noti...