Increased community engagement brings longer timeframes and increased costs 7 min read
The Queensland Government recently released a package of materials to support its new community benefit system. The system will apply to wind farms and large-scale solar farms, with the aim of ensuring that local communities share in the economic and social benefits of renewable energy developments in their area. The changes have significant implications for proponents, including longer approval timeframes and increased costs.
The draft legislation, released on 1 May, is open for public comment until midday on 20 May 2025, with feedback on the remaining materials due by 3 June 2025.
In this Insight, we discuss the key proposed changes and their potential impacts on current and future projects.
Key takeaways
- All solar farm applications will be impact assessable.
- All wind farm applications and large-scale solar farm applications will be subject to the community benefit system.
- Both wind farm applications and large-scale solar farm applications must include a social impact assessment report and a community benefit agreement, unless exempted.
- Applications for large-scale solar farms made, but not decided, before the changes take effect, will be considered not properly made unless called in by the Minister or subject to Ministerial direction.
- Wind farm applications made, but not decided, before the changes take effect will restart from the beginning of the confirmation period unless called in by the Minister or subject to Ministerial direction.
- The chief executive will be the assessment manager for large-scale solar farm applications and wind or solar farm applications in priority development areas, and will assess solar farm applications against the new State code 26: Solar farm development.
Changes to the planning framework
The proposed changes to the planning framework will require applicants to build social licence with communities by assessing the social impacts of wind farms and large-scale solar farms.
Applicants will need to undertake a social impact assessment (SIA), prepare an SIA report and enter into a community benefit agreement (CBA) with relevant local governments before lodging an application.
Where an application has already been made but not decided when the changes take effect, the applicant may be required to restart the process.
Changes are proposed across all aspects of the planning framework. Amendments will be made to the Planning Act 2016 (the Planning Act), the Planning Regulation 2017 (the Planning Regulation) and the Development Assessment Rules (the DA rules). It is also proposed that a new State code 26: Solar farm development and a new SIA guideline be introduced.
Changes to the Planning Act will apply to development applications and change applications (other than for minor changes) for wind farms and large-scale solar farms.
A large-scale solar farm is a facility that either generates 1MW or more of electricity from solar energy, or where the solar panels and their mounting structures occupy an area of 2 hectares or more.
The proposed changes specify that both development applications and change applications must be accompanied by an SIA report and a CBA, unless the chief executive of the Department of State Development, Infrastructure and Planning (the Department) has issued a notice waiving this requirement.
An SIA report identifies, analyses and assesses the social impacts of a development, and must comply with the new draft SIA guideline.
A CBA is an agreement that must be entered into with the local government for the area in which the facilities are located, and any other local government for an area in which social impacts are identified. A CBA may also be entered into with a prescribed public sector entity. The Department is prescribed for this purpose.
If the applicant and local government cannot reach an agreement on a CBA, voluntary mediation is available through the chief executive.
The proposed changes to the Planning Act will allow for the imposition of conditions on developments that require compliance with a CBA, or relate to the management, mitigation, counterbalancing or monitoring of social impacts arising from the development. Additionally, if the chief executive notifies an applicant that an SIA report or CBA is not required, and the chief executive is not the assessing authority for the application, the chief executive may direct the assessing authority to impose a community benefit condition on any development approval granted for the application.
The proposed changes to the Planning Regulation will make a solar farm application impact assessable, which is the same level of assessment that currently applies to wind farm applications. Public notification will be required, and third parties may make submissions on the application and appeal the outcome.
The chief executive of the Department will be the assessment manager for large-scale solar farm applications and solar farm applications within a priority development area. The new State code 26: Solar farm development will set out the assessment criteria.
The Planning Regulation will also address pre-existing development applications and change applications for wind farms and large-scale solar farms that have been properly made or accepted but not decided before the changes commence.
For solar farm applications, once the changes to the Planning Regulation take effect, any such application will be considered not properly made or not accepted. If the applicant wishes to proceed, they will need to submit a new application. Pre-existing wind farm applications will be treated slightly differently and will need to restart at the confirmation period.
Different rules will apply to pre-existing applications that are subject to a call-in or direction by the Minister. These applications may either need to stop and restart once an SIA report and CBA are provided (or a notice is given by the chief executive that they are not required), or continue as if the changes had not commenced.
The new draft State code 26: Solar farm development comprises a purpose statement and performance outcomes. The code will only be satisfied if both the purpose statement and all performance outcomes are fully met, setting the bar high.
The purpose statement, which is reflected in the performance outcomes, aims to ensure that solar farm development:
- is located, sited, designed, constructed, managed, operated and maintained to mitigate adverse impacts;
- does not result in unacceptable adverse impacts during construction, operation or decommissioning; and
- is decommissioned in a timely and efficient manner that reuses, recycles and/or repurposes materials as much as possible, and rehabilitates the environment.
The changes to the DA rules will require more effective public notification, with information shared more broadly via community notice boards, local radio and the assessment manager's website.
The guideline in the DA rules for determining whether a change results in a substantially different development will be changed by requiring consideration of social impacts.
An SIA report for a development application or change application must identify, analyse and assess the social impacts of the development. It must be prepared in accordance with the process set out, and include the matters specified, in the draft SIA guideline.
The draft SIA guideline identifies various points at which consultation should occur. During the scoping stage, discussions should be held with relevant local governments and regulatory authorities to help define the SIA study area. Community and stakeholder engagement should also occur to inform the development of the SIA report, including the baseline analysis, impact assessment and management measures.
The SIA report will inform the CBA, and both the SIA report and CBA will inform the development application or change application.
Implications of the changes
The proposed changes will have time and cost implications for proponents of wind farm and large-scale solar farm developments.
New applications
Initially, the pre-application process will be extended, as the proponent undertakes the SIA, prepares the SIA report and enters into negotiations for a CBA. While CBA negotiations can occur in parallel with the SIA process, the SIA report will necessarily inform the terms of the CBA.
If a CBA cannot be agreed and voluntary mediation is unsuccessful, the only remaining option will be to seek a waiver from the chief executive. Without a waiver, the applicant cannot lodge a development application or submit a change application.
Proponents should be prepared for greater public scrutiny of their development, both during stakeholder engagement for the SIA and through the public notification stage of the application. With all applications being impact assessable, third party submissions and appeals are also possible.
From an early stage, proponents will need to consider how they will deliver a benefit to the local community and to any other communities affected by the development. This benefit might take the form of infrastructure, community facilities or services, or a financial contribution. This requirement will have cost implications.
Similar cost implications may arise from the expanded conditioning powers. Proponents should be prepared for conditions that go beyond the usual 'reasonable and relevant' standard and include requirements to address social impacts, such as delivering or contributing to infrastructure or other community benefits.
Existing applications
Without Ministerial intervention, the outcome for a pre-existing application that is not decided is that it will either be considered not properly made or accepted, or must restart at the beginning of the confirmation period.
Proponents should consider whether a decision on a pre-existing development application can be expedited before the changes commence. If not, they should consider making inquiries with the state to determine whether the application may qualify for Ministerial call-in or whether a direction could be issued by the Minister.
As this Insight has explained, there are significant consequences from the proposed changes. We are available to assist if you have any questions, need help preparing a submission or require support navigating the new regime once implemented.