Commonwealth Coat of Arms

Renewable Energy (Electricity) Amendment Regulation 2012 (No. 8)1

Select Legislative Instrument 2012 No. 290

I, QUENTIN BRYCE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulation under the Renewable Energy (Electricity) Act 2000.

Dated 6 December 2012

QUENTIN BRYCE

Governor-General

By Her Excellency’s Command

GREG COMBET

Minister for Climate Change and Energy Efficiency

Contents

 1 Name of regulation

 2 Commencement

 3 Amendment of Renewable Energy (Electricity) Regulations 2001

Schedule 1 Amendments commencing on day after registration

Schedule 2 Amendments commencing on 1 January 2013

 

1 Name of regulation

  This regulation is the Renewable Energy (Electricity) Amendment Regulation 2012 (No. 8).

2 Commencement

  This regulation commences as follows:

 (a) on the day after registration—sections 1 to 3 and Schedule 1; and

 (b) on 1 January 2013—Schedule 2.

3 Amendment of Renewable Energy (Electricity) Regulations 2001

  Schedules 1 and 2 amend the Renewable Energy (Electricity) Regulations 2001.

Schedule 1 Amendments commencing on day after registration

(section 3)

 

[1] Before Division 2.1

insert

Division 2.1A Registration

3L Determining fit and proper person

 (1) For subsection 11 (2A) of the Act, in determining whether the applicant is a fit and proper person, the Regulator must have regard to the following matters:

 (a) whether the applicant has been convicted of an offence against any of the following:

 (i) a law of the Commonwealth, a State or a Territory, that relates to dishonest conduct;

 (ii) a law of the Commonwealth, a State or a Territory, that relates to the conduct of a business;

 (iii) section 136.1, 137.1 or 137.2 of the Criminal Code;

 (iv) a foreign law that corresponds to a law mentioned in subparagraphs (i) to (iii) or subparagraphs (b) (i) to (iv);

 (b) whether the applicant has breached any of the following:

 (i) this Act or these Regulations;

 (ii) the Australian National Registry of Emissions Units Act 2011 or regulations under that Act;

 (iii) the Carbon Credits (Carbon Farming Initiative) Act 2011 or regulations under that Act;

 (iv) the National Greenhouse and Energy Reporting Act 2007 or regulations under that Act;

 (c) whether an order has been made against the applicant under:

 (i) section 76 of the Competition and Consumer Act 2010; or

 (ii) section 224 of Schedule 2 to the Competition and Consumer Act 2010, as that section applies as a law of the Commonwealth, a State or a Territory; or

 (iii) a foreign law that corresponds to a law mentioned in subparagraphs (i) or (ii);

 (d) whether the applicant has been refused registration by, deregistered by, or suspended from participating in, a State or Territory energy efficiency scheme, such as the following:

 (i) the Energy Savings Scheme in New South Wales;

 (ii) the Victorian Energy Efficiency Target scheme;

 (e) whether the applicant has:

 (i) sought or been granted accreditation by, or membership of, a clean energy organisation; or

 (ii) been refused accreditation by, or membership of, a clean energy organisation; or

 (iii) had the applicant’s accreditation by, or membership of, a clean energy organisation suspended or revoked;

 (f) whether the applicant is:

 (i) for an applicant that is an individual—an insolvent under administration within the meaning of the Corporations Act 2001; and

 (ii) for an applicant that is a body corporate—an externallyadministered body corporate within the meaning of the Corporations Act 2001; and

 (iii) for an applicant that is a body corporate—a body corporate that overseas or under a foreign law:

 (A) is being wound up; or

 (B) in respect of property of which, a receiver, or a receiver and manager, has been appointed (whether or not by a court) and is acting; or

 (C) is under administration; or

 (D) has executed a deed of company arrangement that has not yet terminated; or

 (E) has entered into a compromise or arrangement with another person, the administration of which has not been concluded.

 (2) If the applicant is a body corporate, the Regulator must also have regard to the following matters:

 (a) whether an executive officer of the body corporate has been convicted of an offence against any of the following:

 (i) a law of the Commonwealth, a State or a Territory, that relates to dishonest conduct;

 (ii) a law of the Commonwealth, a State or a Territory, that relates to the conduct of a business;

 (iii) section 136.1, 137.1 or 137.2 of the Criminal Code;

 (iv) a foreign law that corresponds to a law mentioned in subparagraphs (i) to (iii) or subparagraphs (b) (i) to (iv);

 (b) whether an executive officer of the body corporate has breached any of the following:

 (i) this Act or these Regulations;

 (ii) the Australian National Registry of Emissions Units Act 2011 or regulations under that Act;

 (iii) the Carbon Credits (Carbon Farming Initiative) Act 2011 or regulations under that Act;

 (iv) the National Greenhouse and Energy Reporting Act 2007 or regulations under that Act;

 (c) whether an order has been made against an executive officer of the body corporate:

 (i) under section 76 of the Competition and Consumer Act 2010; or

 (ii) under section 224 of Schedule 2 to the Competition and Consumer Act 2010, as that section applies as a law of the Commonwealth, a State or a Territory; or

 (iii) under a foreign law that corresponds to a law mentioned in subparagraph (i) or (ii); or

 (iv) by a foreign court, disqualifying the executive officer from:

 (A) being a director of a body corporate; or

 (B) being concerned in the management of a body corporate;

 (d) whether an executive officer of the body corporate has been refused registration, de-registered or suspended from participating in a State or Territory energy efficiency scheme, such as the following:

 (i) the Energy Savings Scheme in New South Wales;

 (ii) the Victorian Energy Efficiency Target scheme;

 (e) whether an executive officer of the body corporate has:

 (i) sought or been granted accreditation by, or membership of, a clean energy organisation; or

 (ii) been refused accreditation by, or membership of, a clean energy organisation; or

 (iii) had the executive officer’s accreditation by, or membership of, a clean energy organisation suspended or revoked.

 (3) For paragraphs (1) (e)  and (2) (e), a clean energy organisation means an organisation that has a constitution and operates a scheme that:

 (a) accredits, or provides membership to, persons who do one or more of the following:

 (i) install small generation units or solar water heaters;

 (ii) supply small generation units or solar water heaters;

 (iii) create or trade in small-scale technology certificates; and

 (b) has a code of conduct that is binding on persons who are accredited by, or members of, the organisation; and

 (c) monitors compliance with the code of conduct and is able to take action against a person who is accredited by, or a member of, the organisation for a breach of the code (such as by suspending the person’s accreditation or membership).

Examples   

1   Clean Energy Council

2   REC Agents Association Incorporated (ABN 950 64 032 965).

[2] After Division 2.4

insert

Division 2.5A Suspension of registration

20CL Determining fit and proper person

  For subsection 30A (5A) of the Act, in determining whether a registered person is a fit and proper person, the Regulator must have regard to the matters set out in regulation 3L, as if the reference to the applicant in that regulation were a reference to the registered person.

[3] After subregulation 22UA (2)

insert

 (3) However, this subdivision does not apply to an application for 2013 if:

 (a) the Regulator has already been given an audit report (the first report) under paragraph 603 (1) (b) of the Clean Energy Regulations 2011; and

 (b) the first report, in all material respects, satisfies the requirements of this subdivision; and

 (c) the prescribed person gives the Regulator written notice that the person intends the first report to be used for the purpose of meeting the person’s obligation under this subdivision; and

 (d) the written notice is given to the Regulator before 28 February 2013.

[4] Subregulation 24 (2)

substitute

 (2) For paragraph 44 (6) (b) of the Act, an energy acquisition statement must be lodged with the Regulator:

 (a) electronically; or

 (b) in exceptional circumstances—by post.

 (3) For paragraph (2) (b), exceptional circumstances means a circumstance that makes electronic lodgement not reasonably possible.

Examples   Major natural disaster or other large-scale emergency.

[5] Subregulations 25 (2) and (3)

substitute

 (2) For paragraph 46 (6) (b) of the Act, a large-scale generation shortfall statement must be lodged with the Regulator:

 (a) electronically; or

 (b) in exceptional circumstances—by post.

 (3) For paragraph (2) (b), exceptional circumstances means a circumstance that makes electronic lodgement not reasonably possible.

Examples   Major natural disaster or other large-scale emergency.

[6] Subregulations 25A (2) and (3)

substitute

 (2) For paragraph 46 (6) (b) of the Act, a small-scale technology shortfall statement must be lodged with the Regulator:

 (a) electronically; or

 (b) in exceptional circumstances—by post.

 (3) For paragraph (2) (b), exceptional circumstances means a circumstance that makes electronic lodgement not reasonably possible.

Examples   Major natural disaster or other large-scale emergency.

[7] Schedule 6, after Part 47

insert

Part 48 Production of nickel

Division 1 Production of nickel

740 Production of nickel

 (1) The production of nickel is the chemical and physical transformation of either or both of:

 (a) nickel bearing inputs into intermediate nickel products, primary nickel products or cobalt products;

 (b) intermediate nickel products into primary nickel products or cobalt products.

 (2) In this Part:

cobalt products means:

 (a) cobalt hydroxide (Co(OH)2) where the concentration of cobalt is at least 65% with respect to mass, measured on a dry weight basis; and

 (b) cobalt (Co) where the concentration of cobalt is at least 99% cobalt with respect to mass, measured on a dry weight basis.

intermediate nickel products means the following outputs of saleable quality from a nickel production process that are suitable for further refining:

 (a) nickel matte where the concentration of nickel is at least 64% nickel with respect to mass, measured on a dry weight basis;

 (b) mixed nickel-cobalt hydroxide precipitate where the concentration of nickel is between 42% and 47% with respect to mass, measured on a dry weight basis;

 (c) basic nickel carbonate (Ni3(CO3)(OH)4) where the concentration of nickel is between 40% and 45% with respect to mass, measured on a dry weight basis;

 (d) nickel sulphide concentrate (NiS) where the concentration of nickel is between 11% and 29% with respect to mass, measured on a dry weight basis.

nickel bearing inputs means mineralised nickel ores and low grade nickel waste products that require equivalent processing to mineralised nickel ores to produce intermediate or primary nickel products.

primary nickel products means:

 (a) basic nickel carbonate (Ni3(CO3)(OH)4) where the concentration of nickel is at least 50% nickel with respect to mass, measured on a dry weight basis; and

 (b) nickel oxide (NiO) where the concentration of nickel is at least 78% nickel with respect to mass, measured on a dry weight basis; and

 (c) nickel (Ni) where the concentration of nickel is at least 98% nickel with respect to mass, measured on a dry weight basis.

Division 2 Classification of activity

741 Classification of activity

  The production of nickel is a moderately emissionsintensive activity.

Division 3 Electricity baseline for calculating partial exemption

742 Electricity baseline for product

 (1) The electricity baseline for calculating the amount of a liable entity’s partial exemption in respect of the production of nickel is the following:

 (a) 9.29 MWh per tonne of 100% equivalent nickel, measured on a dry weight basis, contained in primary nickel products produced from nickel bearing inputs;

 (b) 6.45 MWh per tonne of 100% equivalent nickel, measured on a dry weight basis, contained in              intermediate nickel products produced from nickel bearing inputs that are not subsequently transformed into primary nickel products at the same facility;

 (c) 2.84 MWh per tonne of 100% equivalent nickel, measured on a dry weight basis, contained in primary nickel products produced from intermediate nickel products that have not been produced at the same facility;

 (d) 8.89 MWh per tonne of 100% equivalent cobalt, measured on a dry weight basis, contained in cobalt products.

 (2) The production of nickel mentioned in subclause (1) is nickel that:

 (a) is produced by carrying on the emissions-intensive tradeexposed activity; and

 (b) is of saleable quality.

Note   Saleable quality is defined in regulation 22C.

Schedule 2 Amendments commencing on 1 January 2013

 

[1] Subregulation 20AA (1)

substitute

 (1) For subsections 23B (2) and (3) of the Act, subregulation (2) sets out the multiplier for certificates that may be created for a small generation unit in the circumstances set out in subregulation (3).

[2] Subparagraph 20AA (3) (a) (i)

substitute

 (i) the small generation unit in respect of which the certificates are created is installed at eligible premises:

 (A) during a period mentioned in the table in subregulation (2); and

 (B) in the circumstances mentioned in regulation 20AAA; and

[3] After regulation 20AA

insert

20AAA Further circumstances for multiplying number of certificates

 (1) For subparagraph 20AA (3) (a) (i), the small generation unit must be installed:

 (a) before 1 January 2013; or

 (b) on or after 1 January 2013 but before 1 July 2013 and in the circumstances mentioned in subregulation (2).

 (2) For paragraph (1) (b), the circumstances are:

 (a) the unit is installed under a contract entered into before 16 November 2012; and

 (b) the parties to the contract are legally bound to proceed with the contract on and after 16 November 2012; and

 (c) if the contract is conditional on any event happening, the event happened before 16 November 2012; and

 (d) the person who becomes the owner of the unit following its installation is a party to the contract; and

 (e) the contract documentation identifies:

 (i) the date the contract was entered into; and

 (ii) the identity of each party to the contract; and

 (iii) the address at which the unit is to be installed; and

 (iv) the size, make and model of the unit; and

 (f) the person entitled to create certificates for the unit (the entitled person) meets the requirements of subregulation (3) before creating certificates for the unit.

 (3) For paragraph (2) (f), the entitled person must:

 (a) possess contract documentation identifying the matters mentioned in paragraph (2) (e); and

 (b) provide to the Regulator a statutory declaration made by the entitled person:

 (i) describing the contract documentation; and

 (ii) stating that the entitled person can provide the contract documentation to the Regulator if requested by the Regulator; and

 (iii) stating that the contract meets the requirements of paragraphs (2) (a) to (d); and             

 (iv) stating:

 (A) the date on which the contract was entered into; and

 (B) the identity of each party to the contract; and

 (C) the address at which the unit was installed; and

 (D) the size, make and model of the unit; and

 (v) stating that the contract documentation in the entitled person’s possession identifies the matters mentioned in subparagraph (iv); and

 (c) if the contract is an oral contract—provide to the Regulator a statutory declaration made by each party to the contract stating:             

 (i) the date on which the contract was entered into; and

 (ii) the identity of each party to the contract; and

 (iii) the address at which the unit was installed; and

 (iv) the size, make and model of the unit; and

 (d) provide to the Regulator any other information or documents requested by the Regulator.

 (4) An entitled person may provide one statutory declaration under paragraph (3) (b) setting out the information required by that paragraph for more than one unit, including where:

 (a) the units were installed under different contracts; or

 (b) the contracts for the installations of the units involve different parties; or

 (c) the units were installed at different addresses.

 (5) However a statutory declaration provided under paragraph (3) (c) must relate to one unit only.

 (6) For paragraph (3) (c), if the entitled person is a party to the contract, he or she only needs to provide statutory declarations from the other parties to the contract.

 (7) In this regulation:

contract documentation means:

 (a) for a written contract—the written documents setting out the terms and conditions of the contract and evidencing the offer and acceptance of those terms and conditions; and

 (b) for an oral contract—means written documentation that was created and dated before 22 December 2012, evidencing the existence of the contract.

[4] Schedule 6, Part 17, after subclause 649 (2)

insert

 (2A) For the production of pulp from recovered paper as part of printing and writing paper manufacturing, the basis for calculating the amount of a liable entity’s partial exemption is 0.824 MWh per total air dried tonne (assuming a 10% moisture content) of equivalent pulp that is:

 (a) produced from recovered paper; and

 (b) used in the process of manufacturing printing and writing paper; and

 (c) produced as part of carrying on the emissions-intensive trade-exposed activity.

Note

1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See www.comlaw.gov.au.