Federal Register of Legislation - Australian Government

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A Bill for an Act to amend the Renewable Energy (Electricity) Act 2000, and for related purposes
Administered by: PMC (DCC)
For authoritative information on the progress of bills and on amendments proposed to them, please see the House of Representatives Votes and Proceedings, and the Journals of the Senate as available on the Parliament House website.
Registered 18 Jun 2009
Introduced HR 17 Jun 2009

2008‑2009

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

Renewable Energy (Electricity) Amendment Bill 2009

 

No.      , 2009

 

(Climate Change and Water)

 

 

 

A Bill for an Act to amend the Renewable Energy (Electricity) Act 2000, and for related purposes

  

  


Contents

1............ Short title............................................................................................ 1

2............ Commencement.................................................................................. 1

3............ Schedule(s).......................................................................................... 3

Schedule 1—Amendment of the Renewable Energy (Electricity) Act 2000              4

Schedule 2—Partial exemptions from liability to charge                                  7

Renewable Energy (Electricity) Act 2000                                                              7

Schedule 3—Amendments relating to the transition of State renewable energy target schemes 14

Part 1—Amendments relating to constitutional corporations                         14

Renewable Energy (Electricity) Act 2000                                                            14

Part 2—Transitional provisions                                                                                  15

 


A Bill for an Act to amend the Renewable Energy (Electricity) Act 2000, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Renewable Energy (Electricity) Amendment Act 2009.

2  Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day on which this Act receives the Royal Assent.

 

2.  Schedule 1

The day on which this Act receives the Royal Assent.

 

3.  Schedule 2

At the same time as section 3 of the Carbon Pollution Reduction Scheme Act 2009 commences.

 

4.  Schedule 3, Part 1

A single day to be fixed by Proclamation.

However, if the provision(s) do not commence before 1 July 2011, they commence on that day.

 

5.  Schedule 3, item 3

The day after this Act receives the Royal Assent.

 

6.  Schedule 3, item 4

1 February 2010.

1 February 2010

7.  Schedule 3, item 5

The day after this Act receives the Royal Assent.

 

8.  Schedule 3, items 6 and 7

A single day to be fixed by Proclamation.

However, if any of the provision(s) do not commence within the period of 9 months beginning on the day on which this Act receives the Royal Assent, they commence on the first day after the end of that period.

 

9.  Schedule 3, items 8 and 9

1 February 2010.

1 February 2010

Note:          This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

             (2)  Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3  Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


 

Schedule 1Amendment of the Renewable Energy (Electricity) Act 2000

  

1  Section 3

Omit:

               (b)     to reduce emissions of greenhouse gases; and

Substitute:

               (b)     to reduce emissions of greenhouse gases in the electricity sector; and

2  Section 4

Omit “1 January 2021”, substitute “1 January 2031”.

3  Subsection 5(1)

Insert:

kW means kilowatt.

4  Section 23B

Before “The number”, insert “(1)”.

Note:       The following heading to new subsection 23B(1) is inserted “Number of certificates”.

5  Section 23B

Before “each”, insert “subject to subsection (2),”.

6  At the end of section 23B

Add:

Regulations may multiply number of certificates

             (2)  The regulations may provide that, in the circumstances specified by the regulations, the number of certificates that may be created in relation to a small generation unit that is installed during a period specified in column 1 of an item in the following table is to be multiplied by the number specified in column 2 of the item.

Note:          The regulations may make provision in relation to the time at which a small generation unit is taken to have been installed (see subsection 23A(2)).

 

Multiplier for certificates for small generation units

Item

Column 1
Period

Column 2
Number

1

9 June 2009 to 30 June 2010

5

2

1 July 2010 to 30 June 2011

5

3

1 July 2011 to 30 June 2012

5

4

1 July 2012 to 30 June 2013

4

5

1 July 2013 to 30 June 2014

3

6

1 July 2014 to 30 June 2015

2

             (3)  However, the regulations may provide for a number of certificates to be multiplied only if the certificates relate to the first 1.5kW of the rated power output of the small generation unit.

             (4)  For the purposes of this Act, a certificate created in accordance with the regulations as mentioned in subsection (2) has a value of 1 MWh (even though the certificate does not actually represent 1 MWh).

7  Application of amendments of section 23B

The amendments made by items 4 to 6 apply to small generation units installed on or after 9 June 2009.

8  Section 40 (table item dealing with 2010 and later years)

Repeal the item, substitute:

2010

12500

2011

14400

2012

16300

2013

18200

2014

20100

2015

22000

2016

26600

2017

31200

2018

35800

2019

40400

2020

45000

2021

45000

2022

45000

2023

45000

2024

45000

2025

45000

2026

45000

2027

45000

2028

45000

2029

45000

2030

45000

9  Section 162

Repeal the section, substitute:

162  Review of operation of renewable energy legislation

             (1)  The Minister must cause an independent review of the operation of the following to be undertaken as soon as practicable after 31 December 2013:

                     (a)  this Act;

                     (b)  the regulations;

                     (c)  the Renewable Energy (Electricity) (Charge) Act 2000.

             (2)  The review must be undertaken by a person who, in the Minister’s opinion, possesses appropriate qualifications to undertake the review.

             (3)  The person undertaking the review must give the Minister a written report of the review before 30 June 2014.

             (4)  The Minister must cause a copy of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the day on which the report is given to the Minister.

             (5)  The report is not a legislative instrument.


 

Schedule 2Partial exemptions from liability to charge

  

Renewable Energy (Electricity) Act 2000

1  At the end of section 3

Add:

A partial exemption relating to one or more emissions‑intensive trade‑exposed activities may be taken into account in working out a liable entity’s renewable energy certificate shortfall for a year. If it is, it will reduce the renewable energy shortfall charge otherwise payable.

2  Subsection 5(1)

Insert:

emissions‑intensive trade‑exposed activity means an activity that is taken to be an emissions‑intensive trade‑exposed activity under the emissions‑intensive trade‑exposed assistance program.

3  Subsection 5(1)

Insert:

emissions‑intensive trade‑exposed assistance program has the same meaning as in the Carbon Pollution Reduction Scheme Act 2009.

4  Subsection 5(1)

Insert:

partial exemption, in relation to a liable entity, means a partial exemption for a year, calculated under section 38B, that is used in working out the entity’s renewable energy certificate shortfall for the year under section 38.

5  Subsection 5(1)

Insert:

partial exemption certificate means a certificate issued under section 46B.

6  Section 38 (method statement, after step 1)

Insert:

Step 1A.    Subtract from the total electricity acquired the amount of the liable entity’s partial exemption for the year.

7  Section 38 (method statement, step 2)

Omit “the total electricity acquired”, substitute “the result of step 1A”.

8  After Division 1 of Part 4

Insert:

Division 1APartial exemption from liability to charge

38A  Object

                   The object of this Division is to provide a partial exemption from the renewable energy shortfall charge for liable entities in respect of emissions‑intensive trade‑exposed activities.

38B  Amount of partial exemption

                   The amount of a liable entity’s partial exemption for a year is the total, in MWh, of all amounts stated in partial exemption certificates:

                     (a)  issued in relation to the liable entity for the year; and

                     (b)  included in the liable entity’s energy acquisition statement for the year.

38C  Information about partial exemptions to be published on Authority’s website

             (1)  If a liable entity receives a partial exemption for a year, the Authority must, before 1 October in the following year, publish on its website:

                     (a)  the name of the entity; and

                     (b)  the value in dollars, estimated by the Authority, of the amount of the entity’s partial exemption for the year; and

                     (c)  such other information in relation to the partial exemption as is required by the regulations.

             (2)  The Authority must also publish on its website such other information in relation to partial exemptions as is required by the regulations.

             (3)  If a liable entity’s partial exemption is later reduced or increased, the Authority must correct the information on its website.

9  At the end of subsection 39(3)

Add:

             ; and (d)  all partial exemptions expected to be claimed for the year.

10  Subsection 39(4) (formula)

Repeal the formula, substitute:

11  Part 5 (heading)

Repeal the heading, substitute:

Part 5Statements, certificates and assessments

12  After paragraph 44(2)(b)

Insert:

                    (ba)  whether the liable entity wishes to claim a partial exemption for the year; and

13  After paragraph 44(3)(a)

Insert:

                    (aa)  if the liable entity wishes to claim a partial exemption for the year—include:

                              (i)  a copy of each partial exemption certificate issued to the liable entity for the year in relation to an emissions‑intensive trade‑exposed activity carried on by the liable entity during the year; and

                             (ii)  for each partial exemption certificate issued to another person in relation to the liable entity for the year and given to the liable entity—a copy of each partial exemption certificate; and

14  After Division 1 of Part 5

Insert:

Division 1APartial exemption certificates

46A  Application for partial exemption certificate

             (1)  A prescribed person may apply to the Authority for a certificate (a partial exemption certificate) for a year in relation to:

                     (a)  an emissions‑intensive trade‑exposed activity which is, or is to be, carried on at a site during the year; and

                     (b)  either:

                              (i)  a person who is, or will be, a liable entity from whom electricity is, or will be, acquired for use at the site in the activity; or

                             (ii)  if the prescribed person is, or will be, a liable entity—the prescribed person.

             (2)  The application must:

                     (a)  be in a form approved by the Authority; and

                     (b)  include any information prescribed by the regulations; and

                     (c)  be lodged with the Authority in the time and manner prescribed by the regulations; and

                     (d)  be signed by or on behalf of the applicant.

             (3)  The regulations may provide that information required to be included in an application must be verified by statutory declaration.

46B  Partial exemption certificates

             (1)  If an application is made under section 46A in respect of a year, the Authority must issue the applicant with a partial exemption certificate for the year that sets out, in relation to the liable entity mentioned in the application (as referred to in paragraph 46A(1)(b)):

                     (a)  the amount of the liable entity’s partial exemption for the year in relation to the emissions‑intensive trade‑exposed activity and site mentioned in the application, calculated according to a method prescribed by the regulations; and

                     (b)  any other information prescribed by the regulations.

             (2)  The Authority must issue the certificate within the period prescribed by the regulations.

             (3)  A certificate issued under subsection (1) is not a legislative instrument.

46C  Amending partial exemption certificates

             (1)  The Authority may amend a partial exemption certificate if the person to whom the certificate is issued requests, in writing, an amendment.

             (2)  In deciding whether to amend a partial exemption certificate under subsection (1), the Authority:

                     (a)  must have regard to the matters prescribed by the regulations; and

                     (b)  may have regard to any other matter that it considers relevant.

             (3)  The Authority may also amend a partial exemption certificate on its own initiative in circumstances prescribed by the regulations.

             (4)  If the Authority refuses to amend a partial exemption certificate upon a request by a person, the Authority must notify the person accordingly.

Note:          An amendment of a partial exemption certificate under this section may also result in the Authority issuing an assessment under section 48 or amending an assessment under section 49.

15  Subsection 66(1) (after table item 5E)

Insert:

 

5F

to amend, or to refuse to amend, a partial exemption certificate

section 46C

the person to whom the certificate is issued.

16  Subsection 160(1)

Repeal the subsection, substitute:

             (1)  A person (the record‑keeper) who:

                     (a)  is a registered person; or

                     (b)  is a liable entity; or

                     (c)  has been issued with a partial exemption certificate;

must keep records that record and explain all transactions and other acts engaged in, or required to be engaged in, by the record‑keeper under this Act.

Note:       The heading to section 160 is altered by omitting “and liable entities” and substituting “, liable entities and holders of partial exemption certificates”.

17  After subsection 160(3)

Insert:

          (3A)  The records kept by a person who has been issued with a partial exemption certificate must include any documents relevant to ascertaining:

                     (a)  a matter to which the certificate relates; and

                     (b)  any other prescribed matter.

18  Paragraph 160(4)(b)

Repeal the paragraph, substitute:

                     (b)  in the case of records kept by a liable entity—so that the liable entity’s liability under this Act can be readily ascertained; and

                     (c)  in the case of records kept by a person who has been issued with a partial exemption certificate—so that matters to which the certificate relates can be readily ascertained.

19  Subsection 160(5)

Omit “registered person, or a liable entity,”, substitute “record‑keeper”.

20  Subsection 160(6)

Omit “registered person or liable entity” (wherever occurring), substitute “record‑keeper”.

21  Subsection 160(7)

Repeal the subsection, substitute:

             (7)  A person commits an offence if the person fails to comply with a requirement under this section.

Penalty:  30 penalty units.


 

Schedule 3Amendments relating to the transition of State renewable energy target schemes

Part 1Amendments relating to constitutional corporations

Renewable Energy (Electricity) Act 2000

1  Subsection 5(1)

Insert:

constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies.

2  At the end of Part 1

Add:

7B  Constitutional basis

                   To the extent that this Act applies in relation to a constitutional corporation, the operation of this Act is based on the following legislative powers:

                     (a)  the legislative power that the Commonwealth Parliament has under paragraph 51(xx) of the Constitution;

                     (b)  any other legislative power that the Commonwealth Parliament has under the Constitution.

7C  Immunity from State laws

                   A constitutional corporation need not comply with any law of a State that substantially corresponds to this Act.


 

Part 2Transitional provisions

3  Definitions

In this Part:

accredited power station has the same meaning as in the Commonwealth Act.

Commonwealth Act means the Renewable Energy (Electricity) Act 2000.

Commonwealth regulator:

                     (a)  at any time before section 3 of the Carbon Pollution Reduction Scheme Act 2009 commences—means the Regulator (within the meaning of the Commonwealth Act); and

                     (b)  at any time after the Carbon Pollution Reduction Scheme Act 2009 commences—means the Authority (within the meaning of the Australian Climate Change Regulatory Authority Act 2009).

renewable energy certificate has the same meaning as in the Commonwealth Act.

small generation unit has the same meaning as in the Commonwealth Act.

State Act means a law of a State that substantially corresponds to the Commonwealth Act.

State certificate means a certificate, created under a State Act, that is substantially the same as a renewable energy certificate.

State regulator means a person or body appointed under a State Act that has substantially the same kind of functions under the State Act as the Commonwealth regulator has under the Commonwealth Act.

4  Continuation of existing accreditations

(1)        If a power station was, immediately before the day on which this item commences, accredited under a State Act and not already accredited under the Commonwealth Act:

                     (a)  the power station is taken to be eligible for accreditation under section 15 of the Commonwealth Act; and

                     (b)  the Commonwealth regulator is taken to have made a determination under paragraph 14(1)(a) of the Commonwealth Act that the components of the power station (as accredited under the State Act) are to be taken to be a power station for the purposes of the Commonwealth Act; and

                     (c)  the Commonwealth regulator is taken to have approved an application for accreditation on the day on which this item commences.

(2)        To avoid doubt, subsection 14(3) of the Commonwealth Act applies in relation to an application mentioned in paragraph (1)(b) of this item.

(3)        If a person was, immediately before the day on which this item commences, a nominated person for a power station under a State Act:

                     (a)  the person is taken to be:

                              (i)  a registered person (unless the person is already a registered person under the Commonwealth Act); and

                             (ii)  a nominated person for the power station;

                            under the Commonwealth Act on and after the day on which this item commences; and

                     (b)  the Commonwealth regulator is taken to have approved an application for the person to be registered on the day on which this item commences (unless the person is already a registered person under the Commonwealth Act).

(4)        To avoid doubt, section 12 of the Commonwealth Act applies in relation to an application mentioned in paragraph (3)(b) of this item as if the person were the applicant.

5  Existing accreditations not to continue if notice given

A nominated person for a power station under a State Act may notify the Commonwealth regulator, in writing by 30 November 2009, that subitems 4(1) and (3) of this Schedule do not apply in relation to the power station. A notice has effect accordingly.

6  Conversion of State certificates to renewable energy certificates

(1)        If, before 15 May 2010, a State regulator for a State gives written notice to the Commonwealth regulator that a State certificate has been surrendered:

                     (a)  under a provision of the State Act of the State that substantially corresponds to section 28A of the Commonwealth Act; and

                     (b)  after 1 April 2010; and

                     (c)  for the purposes of this subitem;

then the Commonwealth regulator must, before 15 June 2010:

                     (d)  create a renewable energy certificate in respect of the State certificate; and

                     (e)  register the renewable energy certificate under section 26 of the Commonwealth Act.

(2)        If, on or after 15 May 2010 but before 2 November 2010, a State regulator for a State gives written notice to the Commonwealth regulator that a State certificate has been surrendered:

                     (a)  under a provision of the State Act of the State that substantially corresponds to section 28A of the Commonwealth Act; and

                     (b)  after 1 April 2010; and

                     (c)  for the purposes of this subitem;

then the Commonwealth regulator must, before 1 December 2010:

                     (d)  create a renewable energy certificate in respect of the State certificate; and

                     (e)  register the renewable energy certificate under section 26 of the Commonwealth Act.

(3)        A notice under subitem (1) or (2) must:

                     (a)  be in the prescribed form; and

                     (b)  include any information prescribed by the regulations.

(4)        Despite subitems (1) and (2), a renewable energy certificate may only be created for a State certificate once.

(5)        For the purposes of a renewable energy certificate created in respect of a State certificate under subitem (1) or (2):

                     (a)  the renewable energy certificate is treated as if it had been created under a prescribed provision of the Commonwealth Act; and

                     (b)  the person who created the State certificate is treated as having created the renewable energy certificate; and

                     (c)  subject to paragraph (6)(c), the person who owned the State certificate, immediately before it was surrendered under the State Act, is treated as the owner of the renewable energy certificate.

(6)        Section 26 of the Commonwealth Act applies in relation to a renewable energy certificate created under subitem (1) or (2) as if:

                     (a)  subsections (2), (3), (3A), (5) and (6) were ignored; and

                     (b)  the Commonwealth regulator had determined that the renewable energy certificate is eligible for registration under subsection (4); and

                     (c)  for the purposes of recording the ownership of the renewable energy certificate as mentioned in subsection (4)—the owner of the renewable energy certificate had created the certificate.

(7)        A renewable energy certificate created in respect of a State certificate under subitem (1) or (2) is not a certificate for the purpose of section 23F of the Commonwealth Act.

(8)        If a renewable energy certificate is created in respect of a State certificate under subitem (1) or (2), the register of renewable energy certificates maintained under section 135 of the Commonwealth Act must also contain the year in which the State certificate was created.

Notice of conversion to be given by Commonwealth regulator

(9)        The Commonwealth regulator must notify, in writing, the following persons that a renewable energy certificate has been created in respect of a State certificate and registered under section 26 of the Commonwealth Act:

                     (a)  the creator of the State certificate;

                     (b)  the relevant State regulator;

                     (c)  if the owner of the renewable energy certificate is not the creator of the State certificate—the owner of the renewable energy certificate.

(10)      The Commonwealth regulator must provide the notice as soon as practicable after the renewable energy certificate has been registered under section 26 of the Commonwealth Act.

7  No criminal liability for Commonwealth regulator

Nothing in item 6 makes the Commonwealth regulator liable to be prosecuted for an offence.

8  Renewable energy certificate must not be created if State certificate created

Despite section 18 of the Commonwealth Act, a nominated person (within the meaning of the Commonwealth Act) for an accredited power station must not create a renewable energy certificate for any electricity generated by the power station if a State certificate has been created in relation to that electricity.

9  Transitional regulations

(1)        The Governor‑General may make regulations prescribing matters:

                     (a)  required or permitted by this Part to be prescribed; or

                     (b)  necessary or convenient to be prescribed for carrying out or giving effect to this Part.

(2)        Without limiting subitem (1), regulations of a transitional nature may be made in relation to the following matters:

                     (a)  matters arising from the amendment or repeal of a State Act;

                     (b)  exemptions from fees payable under regulations;

                     (c)  the number of renewable energy certificates that may be created in relation to a small generation unit.