HOST councils, including Snowy Valleys and Cootamundra-Gundagai, have presented a strong advocacy proposal calling for community benefit-sharing payments linked to Transgrid’s HumeLink project and future energy developments.
The proposal seeks to guarantee that communities hosting the transmission lines receive substantial and ongoing benefits.
Mayors of the host councils – Snowy Valleys, Upper Lachlan Shire, Yass Valley, Wagga Wagga City and Cootamundra-Gundagai Regional – along with Canberra Region Joint Organisation and Regional Development Australia representatives met with NSW Minister for Energy Penny Sharpe to discuss the advocacy proposal in Yass last Friday.
The five councils propose to seek agreements with Transgrid to provide community benefit-sharing payments to councils, similar to payments made to landowners under the NSW Government’s strategic benefit payments scheme.
Landowners will receive $10,000 per year (in 2022 dollars) for each kilometre of transmission lines that pass through their properties, for 20 years.
The councils are proposing that a similar amount be allocated to them to support council-delivered infrastructure and services, create intergenerational benefits, and leave a lasting legacy for local host communities well beyond the departure of construction crews.
They are also urging the NSW Government to create a community benefit-sharing payments scheme for developers of future transmission lines and energy projects across all regions of the state, building on existing government efforts to deliver local benefits within renewable energy zones.
Transgrid has now secured both federal and state approvals for its HumeLink project, which will see the construction of approximately 365 kilometres of transmission lines spanning across the five local government areas.
Although Transgrid offers a community partnerships program with small grants, and the HumeLink project includes a community benefits and investment plan, these initiatives are primarily aimed at offsetting construction impacts rather than delivering broad, long-term benefits to the community.
Unlike other developers and landholders who are required to pay council rates, Transgrid is not obligated to make payments to councils to contribute to broader, long-term community benefits.
Cr Russell Fitzpatrick, Chair of the Canberra Region Joint Organisation, said the group was grateful to Minister Sharpe for her willingness to come to the region and listen to the proposal for community benefit-sharing.
“Minister Sharpe acknowledged the need for broad benefits to host communities. She encouraged the councils to continue working together to advocate to Transgrid for their communities and said she will do what she can to support that,” Cr Fitzpatrick said.
“Minister Sharpe also committed to including the concept in the government’s considerations for how to ensure local benefits for host communities in areas outside of renewable energy zones.
“She graciously thanked the five councils for their positive approach to the meeting and the advocacy proposal and expressed her willingness to continue discussions.
“What we want is for local host communities to directly share in the benefits from energy projects which deliver for national and statewide electricity consumers, and we think that Transgrid and all operators of energy infrastructure should contribute to councils over the long-term to help achieve those local benefits.”
The group of councils say they are determined in their advocacy for meaningful local community benefit-sharing agreements and schemes.
“We are very appreciative to Minister Sharpe for taking the time to meet with us and discuss our concerns with the ‘boom and bust’ situation of major energy projects leaving a social and economic hole in our communities when the constructions ends,” Snowy Valleys mayor Julia Ham said.
“A community benefit sharing payment scheme would help smooth the transition, providing local benefits for our communities over the long-term, not just visual and amenity impacts.”
Cootamundra-Gundagai mayor Abb McAlister said significant investment in local communities is needed from Transgrid via contribution towards council-provided infrastructure and services, in addition to minor grants and sponsorships.
“Community benefit-sharing would help to shift the narrative from energy developments as an imposed burden on locals to a negotiated opportunity for locals to share in the benefits,” Cr McAlister said.
Wagga Wagga City Council mayor Dallas Tout said rural amenity is a major reason why people settle in regional areas.
“And local communities need to be able to balance negative amenity impacts with benefits achieved through financial contribution of the developers,” he said.
“We are very keen to work with Minister Sharpe and our local member Dr Joe McGirr to establish a community benefit-sharing scheme.”
Upper Lachlan Shire Council mayor Paul Culhane said while local communities recognise the need for use of local land and wind resources for the transition to renewable energy, it would be easier to accept the permanent change to local landscapes if there were broader community benefits by way of financial contributions towards infrastructure and services that communities use every day, such as roads, drainage, water and sewerage systems.
