Renewable energy projects should proceed only with the Free Prior and Informed Consent (FPIC) of relevant Traditional Owners. Where native title is relevant FPIC requires an Indigenous Land Use Agreement (ILUA).
An ILUA is a voluntary agreement about the use and management of an area of land or water made between native title parties and proponents under the Native Title Act 1992 (Cth).
An ILUA can be negotiated over areas where native title has been determined to exist, or has yet to be determined. They can be part of a native title determination, or settled separately from a native title claim.
An ILUA can be effective for ensuring First Nations rights and interests have been recognised, and consent enabled, even in areas where no native title claim or determination has been made.
ILUAs are also the only mechanism under the Native Title Act that come close to enabling FPIC.
Native title parties may want equity provisions and certain benefits in exchange for entering into an ILUA. They may include agreement on benefit-sharing arrangements, compensation for the loss or impairment of native title rights and interests, creating a protocol for dealing with First Nations cultural heritage matters, access to land and water, employment and training opportunities, and future activities on land or water, among other things.
ILUAs will likely be different each time they’re negotiated. It depends upon who's negotiating, the activities being considered, and the unique land/water areas being considered.
When registered, ILUAs operate as a contract and bind all parties to the terms of the agreement.
The particular benefit of an ILUA is the ability to authorise a range of separate future acts combined in a single project in a single authorisation process.