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2004-2005-2006
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
RENEWABLE ENERGY (ELECTRICITY) AMENDMENT BILL 2006
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for the Environment and Heritage,
Senator the Honourable Ian Campbell)
RENEWABLE ENERGY (ELECTRICITY) AMENDMENT BILL 2006
OUTLINE
The purpose of this Bill is to implement the Government's agreed response to a review of
the Renewable Energy (Electricity) Act 2000 (the Act) and improve the administrative
integrity, effectiveness and efficiency of the Act by:
· setting time-limits for the creation of renewable energy certificates and providing the
opportunity to voluntarily surrender certificates;
· providing for provisional accreditation of proposed generation projects, establishing
timeframes for determining the eligibility of proposed projects by the Renewable
Energy Regulator and clarifying the components of a power station;
· allowing for the publication of additional data on baselines and renewable electricity
generation;
· clarifying the provisions and definitions in the Act for Eligible Renewable Energy
Sources and providing increased opportunities for bioenergy;
· clarifying the provisions with respect to the claiming of renewable energy certificates
associated with solar water heaters and small generation units;
· clarifying the provisions in relation to the eligibility of solar water heaters and
expediting the process by which certificates can be claimed for new solar water heater
models as they become commercially available;
· allowing for recent reforms in the National Electricity Market and potential new
market operators;
· clarifying the provisions in relation to a relevant acquisition of electricity to ensure
that only one entity is made liable in relation to the purchase of a particular quantum
of electricity;
· providing the Renewable Energy Regulator with the power to vary a number of
assessments and determinations under the Act, including varying the energy
acquisition statement, renewable energy shortfall statement and the 1997 eligible
renewable energy baselines for accredited power stations;
· providing the Renewable Energy Regulator with information gathering powers to
enable the effective monitoring and compliance with the provisions of the legislation;
and
· allowing for the suspension of an accredited power station under a number of
circumstances including where gaming is suspected; that is, whereby power station
outputs are manipulated to increase the number of renewable energy certificates that
can be created without increasing renewable energy generation.
FINANCIAL IMPACT STATEMENT
This Bill does not change the net financial impact of the Renewable Energy (Electricity)
Act 2000.
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REGULATION IMPACT STATEMENT
Amendments to the Renewable Energy (Electricity) Act 2000 and the Renewable
Energy (Electricity) Regulations 2001
Background
The Mandatory Renewable Energy Target (MRET) was introduced as part of the 1997
Safeguarding the Future: Australia's Response to Climate Change statement. MRET
requires an additional 9500 gigawatt hours (GWh) per annum in renewable electricity
generation in Australia by 2010. The measure will help slow the current growth in
electricity generation emissions, delivering an estimated annual abatement of 6.6
Megatonnes carbon dioxide equivalent (Mt CO2-e) from 2010. This is approximately 10
per cent of total abatement from existing greenhouse measures designed to achieve
Australia's 108 per cent emissions target.
MRET is underpinned by the Renewable Energy (Electricity) Act 2000 (the Act) and the
Renewable Energy (Electricity) Regulations 2001(the Regulations) and commenced on
1 April 2001. The legislation stipulated an independent review of the Act's operation
two years after its commencement to consider whether the measure is likely to
accomplish its stated objectives. The Review Panel's report was tabled on 16 January
2004.
In response to the Review, the Government agreed to implement a number of the
Review's recommendations as they relate to enhancing market transparency, improving
business certainty, encouraging innovation through recognising emerging renewable
electricity generation technologies, and increasing opportunities for bioenergy and solar
technologies. The Government also agreed to implement the Review's recommendation
to adopt, except where necessary to accommodate the agreed recommendations, all other
provisions of the Renewable Energy (Electricity) Amendment Bill 2002 (the 2002
Amendment Bill).
Amendments will be required to both the Act and the Regulations to implement these
improvements. An Amendment Bill will incorporate many of the agreed Review
recommendations and adopt the relevant provisions from the 2002 Amendment Bill.
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Enhancing market transparency and improving business certainty
Establish time limits for the creation of Renewable Energy Certificates
Currently under the MRET measure, Renewable Energy Certificates (RECs) can be
created anytime after eligible generation occurs. Most generators, particularly smaller
generators, create RECs as soon as technically feasible. However, the possibility remains
that some generators may seek to constrain supply in the REC market by creating RECs
on a strategic basis.
During the Review, it was acknowledged that market transparency and efficiency would
be improved by requiring generators to create RECs within a reasonable time of the
generation occurring. Options, including a scheme based on the elapse of a time period
from the date of generation were considered. However, the Government decided to
dismiss these options to avoid administrative complexity. Instead, an option that
establishes common deadlines that must be met by all generators was preferred.
The MRET Review had suggested, with respect of any energy reported in an Electricity
Generation Return (EGR) on or before 14 February in any year, that RECs should be
created no later than 34 weeks subsequently (ie. by 10 October of that year). The Review
considered that the 34 week deadline allowed 30 weeks for possible adjustments of
metering figures by NEMMCO and four weeks for REC creation by the generator.
However, further discussions with the Renewable Energy Regulator (the Regulator)
concluded that possible adjustments to metering figures often occur past the 30 weeks
identified by the Review. The Government has decided to allow REC creation until the
end of the year following the year of generation, an increase by 10 weeks to the Review's
recommendation. This will reduce the administrative and compliance risk of RECs being
incorrectly created.
Generally, submissions to the Review on suggested timeframes for the creation of RECs
varied. Some parties thought six months after the end of the year in which the generation
took place was appropriate, whereas a number of submissions preferred a longer
timeframe, ie within 12 months of the actual generation.
There will be some very minor compliance costs for generators who currently have not
created RECs with respect of past generation. However, these generators would have had
to create RECs for this generation at some later time to achieve benefits under the
measure. To assist in the transition of these requirements, generators will be given at
least 12 months to create RECs for generation that occurred prior to this change taking
effect. Overall, the changes will benefit industry by improving the transparency and
efficiency of the market.
Allow for the voluntary surrender of Renewable Energy Certificates
Under the Act, there is no constraint on the parties who may create RECs. However,
there are restrictions on parties eligible to surrender RECs, with only MRET-registered
liable parties able to surrender RECs against a liability. During the Review, many
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submissions sought to include a provision to allow any party to purchase and surrender
RECs for any purpose, not only against MRET liabilities.
Some submissions noted the potential for double counting of RECs between the Green
Power Scheme and MRET. Currently, Green Power Retailers are required to set aside
RECs equivalent to any new generation from MRET accredited power stations that is
sold through their Green Power product. The Office of the Renewable Regulator
(ORER) has accommodated the wishes of Green Power participants by allowing Green
Power participants to establish a secondary account into which `Green Power' RECs can
be deposited. However, while retailers and others may `set aside' RECs in this way,
these RECs are still not extinguished, thus remaining valid and potentially tradeable, and
able to be on-sold or surrendered against a liability. The current practice also adds
complexity to the administration of the Green Power scheme.
The MRET Review concluded that allowing voluntary surrender of RECs by owners not
registered as liable parties under MRET would be desirable. A number of submissions to
the Review also noted that interested individuals or organisations may wish to purchase
RECs for philanthropic purposes, seeking to remove these RECs from circulation through
voluntary retirement and, therefore, further encourage additional generation of renewable
energy. However, the measure does not compel or pressure businesses to take any action.
The extent to which RECs are likely to be voluntarily surrendered is impossible to predict
accurately at this stage. However, we envisage a very minor increase in REC creation
beyond the level expected without voluntary surrender, having a small positive impact on
renewable energy investment. This will not impact significantly on the cost of the
measure.
Providing for provisional accreditation for proposed generation projects and
assessment of applications within 6 weeks
Currently, the Regulator can only accredit generators following certain eligibility criteria
being met, including that the power station is operated in accordance with any relevant
Australian Government and State, Territory and local government planning and approval
requirements. However, such approvals may not be forthcoming until the plant is
operational.
Several parties noted the paradox in the approvals sequence and sought a `pre-
accreditation' process. At present, the ORER provides, in some cases, `indicative
approval letters'. These letters have provided some comfort, establishing that
applications `could' or, in some cases `would' be eligible for accreditation, subject to
meeting other eligibility requirements.
The MRET Review considered that extending this proposal to provide `provisional
accreditation' would strengthen stakeholder confidence in proposed renewable energy
projects and the Government has agreed to implement this concept. However, any
`provisional accreditation' from the Regulator at this pre-commissioning stage could only
be provided on the basis of what is known at the time of application, and would be
subject to the applicant satisfying all the requirements of the Act. It should be noted that
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a `provisional accreditation' for a project would not replace the required accreditation
process.
To assist business certainty, the Government will establish a six-week timeframe under
which the Regulator would be required to make decisions on applications for
accreditation of generators. This timeframe will also apply to the `provisional
accreditation' process.
The costs of the changes will be minimal to the renewable energy industry. The may be
some minor operational costs associated with the Regulator's administration of the
`provisional accreditation' process. Currently, a fee is applied to applications for
accreditation under the Act. A similar fee will be applied to applications for `provisional
accreditation' to cover the Regulator's administrative costs.
Preparing Returns for solar water heaters and small generation units
Under the MRET measure, householders can participate by installing solar water heaters
or small scale renewable energy generators, called Small Generation Units for the
purposes of the MRET legislation. To simplify the inclusion of solar water heaters and
Small Generation Units under MRET, the ORER has calculated the number of RECs that
can be claimed for eligible systems. RECs for both solar water heaters and Small
Generation Units may either be created and traded by the owner of the system, or
assigned to a Registered Agent.
Currently under the MRET scheme, Registered Agents voluntarily prepare and submit a
yearly Electricity Generation Return to the Regulator outlining the number of RECs
created in respect of solar water heaters or Small Generation Units. To assist with
improving business certainty and enhancing market transparency of the MRET measure,
the Government will formalise the process of Registered Agents preparing an Electricity
Generation Return under the MRET scheme. Using the information provided in the
Returns, the Regulator is able to ensure accountability in the REC creation process,
thereby enhancing business confidence in the MRET scheme.
The compliance cost of this proposal for Registered Agents has been calculated using
information from Electricity Generation Returns previously provided to the Regulator.
Based on 2004 data, 35 Registered Agents provided returns and the average time taken to
complete the returns was nearly two hours per return. This equates to compliance costs
of less than $100 per year per registered Agent. ORER has also implemented a system
that allows internet lodgement of returns. This system provides flexibility and helps
minimise further compliance costs to industry.
As Registered Agents currently voluntarily provide Electricity Generation Returns to the
Regulator, the compliance costs outlined above are business costs already incurred by
Registered Agents under the MRET measure.
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Encourage innovation through recognising emerging renewable electricity generation
technologies
During the MRET Review, a number of submissions sought to broaden the classification
system of existing eligible renewable energy sources within MRET, to include new
technology developments or to incorporate new innovations into the measure. The
MRET Review considered a number of proposals and concluded that some would run
counter to the intent of the MRET legislation and were inconsistent with the policy
objectives of the measure.
The MRET Review also considered broadening MRET eligibility to include other energy
displacement technologies, but concluded that it would serve to achieve some, but not all,
of MRET's policy objectives. The Review recognised that any attempt to anticipate
future innovations and developments in the renewable energy sector were inherently
ambitious.
Other submissions suggested that the Regulator or the Minister be given discretionary
powers under the Act to admit new sources that may emerge over the life of the measure.
It was noted that previously proposed administrative amendments to the Act enable
regulations to be made to restrict the meaning of any eligible renewable energy source
and clarify the meaning of ineligible sources. The Government concluded that these
provisions were appropriate and agreed that the Minister be empowered to make
regulations to clarify the interpretation of eligible renewable energy sources, or to
determine the eligibility of new renewable energy sources.
While this change will provide a mechanism for the MRET measure to respond to the
pace of innovation in the renewable energy industry, the impact of this change is unlikely
to have any impact on cost of the measure. If any change to MRET eligibility is
proposed which will have a significant impact on business, it will be the subject of a
separate Regulation Impact Statement.
Increasing opportunities for bioenergy
This section refers to simplifying bioenergy eligibility requirements through removing
the `primary purpose' test applying to energy crops, redefining plantations as an energy
crop and streamlining eligibility requirements for biomass from registered landfill sites.
The intent is to enable plantations, agricultural crops and biomass that would otherwise
go to landfill to achieve a greater rate of uptake under the measure. These initiatives
could also provide another income stream for regional and rural areas and promote
salinity mitigation and land remediation activities.
Plantations and Energy Crops
The MRET Review reported that contrary to the original policy expectations that energy
crops would make a contribution to the MRET target, no energy crops have yet been
accredited under MRET. During the Review, a number of parties argued that the
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development of the biomass energy sector was being inhibited by certain provisions of
the Regulations. The main concern was with legislative interpretations that exclude
plantations and plantings of woody tree species as eligible under the energy crop
provisions, and the `primary purpose' test for energy crops, which states that an energy
crop must be grown for the primary purpose of energy production.
The Government introduced the `primary purpose' test for energy crops because it
recognised the potential in growing crops for energy, but sought to ensure that the intent
of the crop, prior to its planting, was for energy production. The `primary purpose' test
was also introduced to alleviate any community concerns that other types of biomass,
such as wood from native forests, would be used as energy crops for energy production.
Following the MRET Review, the Government concluded that the current arrangements
for the treatment of native forest wood waste under MRET offer adequate safeguards.
Removing the `primary purpose test' is not expected to impact on the current safeguards.
Currently wood waste from plantations is required to meet certain requirements to be
eligible under the MRET measure, including a `higher value test'. Similar to the
`primary purpose test' for energy crops, the Government introduced the `higher value
test' as a safeguard to ensure that only genuine waste from plantations was used for
energy generation. During the MRET Review, it was argued that excessive regulation of
the plantation sector ran counter to national plantation industry goals. Parties also
suggested that, providing adequate management issues were in place, market forces
would be sufficient to ensure only waste and unusable plantation wood would be used for
energy generation.
The objective of revising the MRET eligibility tests for energy crops is to provide the
bioenergy sector with opportunities to achieve greater participation under the measure.
To achieve this objective in relation to energy crops, the Government agreed to consider
removing the primary purpose test, providing less restrictive access to biomass from
crops grown for multiple purposes and redefining energy crops to include plantations,
without the higher value test.
Another concern raised in the MRET Review was that the ORER interpreted that woody-
stemmed vegetation species are not eligible under the current `energy crops' regulation as
they cannot be classified as an `agricultural or horticultural' crop. Amending `energy
crops' to remove the `primary purpose' test and references to `agricultural or horticultural
crops', along with redefining plantations under energy crops, which will remove the
`higher value test', will provide less restrictive access to biomass from crops grown as
plantations for multiple purposes.
Increasing the range of circumstances in which bioenergy crops are eligible will
encourage the development of the bioenergy sector. Types of bioenergy projects that
may become eligible are short-cycle plantations, such as energy crops, wood waste from
existing plantations and `supplementary fuel' plantations.
There are multiple benefits of growing of deep-rooted trees (such as oil mallees) for
combating dryland salinity in many parts of Australia. The Rural Industries Research
and Development Corporation, Conservation and Land Management of Western
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Australia and the Oil Mallee Company for instance, have been at the forefront of
developing this concept. A demonstration project is underway at Narrogin (WA) to use
coppiced oil mallees to produce energy, eucalyptus oil (as an industrial solvent), and
activated carbon.
Projects of this nature would have other environmental and economic benefits, such as
combating dryland salinity, erosion control, providing animal habitats, increasing
biodiversity, while at the same time providing biomass with economic and social benefit
for local communities.
Although recognising the benefits of such projects, recent internal analysis indicates that
given the marginal economics of short cycle tree plantations and a typical period of two
to three years from initial planting to first harvest, energy crops appear unlikely to
become a major contributor under MRET. However, the changes to plantations, in
particular the removal of the `higher value test', will make it more appealing for potential
suppliers and consumers of wood waste to enter into long term energy supply contracts.
There may be some scope for projects to be initiated as a supplementary fuel source for
existing biomass plants. Again, recent analysis estimates that the capacity factor (amount
of generating capacity that on average the power station utilises) for some wood waste
and bagasse projects could be increased by up to 5 per cent compared to pre-change
levels, through increased eligibility of supplementary feedstocks.
Development of the bioenergy sector could also lead to a range of secondary benefits.
Bioenergy is generally more labour intensive than coal and other fossil fuels. Jobs could
be created in the growing and harvesting of tree crops, the transportation of the biomass,
and in the plants converting that biomass to an energy product. Bioenergy could also
provide another income stream for regional and rural areas and promote salinity
mitigation and land remediation activities.
Redefining Municipal Solid Waste
During the MRET Review, parties raised a number of issues relating to the inclusion of
municipal solid waste (MSW) as an eligible renewable energy source and its treatment
under the measure. Some parties were concerned that the inclusion of MSW within
MRET perpetuated current unsustainable waste production, while others identified a
number of environmental and economic benefits from MSW. In addition, interested
stakeholders expressed a need to harmonise the MRET definition of MSW with other
renewable energy schemes, and address anomalies that have occurred in the treatment of
MSW. An example of such an anomaly is where the `green waste' component of MSW
is eligible, while the green waste from `commercial' sources is not eligible.
The MRET Review supported the continued eligibility of MSW within MRET and
confirmed that only the biomass elements of MSW are eligible for claiming RECs under
the scheme. The Review also concluded that any biomass material that is directly
sourced from a licensed landfill or licensed waste transfer station, which would other
wise be disposed of in a landfill, should be eligible under the MSW provisions of MRET.
The Government recognises, however, that there are existing generators who source their
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MSW directly from suppliers, such as fruit markets, and the changes will need to
recognise these situations.
The objective of redefining MSW to include all biomass material which would otherwise
be landfill, including material that is directly sourced from a licensed landfill or licensed
waste transfer station, is to remove current anomalies and harmonise the treatment of
MSW. Recent internal analysis indicates that implementing this change is likely to result
in a small increase in the level of green waste available as a fuel for MSW generators,
which could increase the capacity factor of the MSW plants by approximately 5 per cent
pre-change levels.
The cost of compliance to industry of this measure is unchanged. Accredited generators
will be required to maintain the current arrangements of maintaining audit trails for
biomass waste from the originating source and self-assessments of the biomass
components.
Increasing opportunities for solar technologies
These proposals relate to broadening the eligibility of solar hot water units and increasing
the threshold capacity for photovoltaic Small Generation Units from 10kW to 100kW and
simplifying deeming arrangements to allow an upfront RECs claim for fifteen years for
photovoltaic small generation units.
Photovoltaic Small Generation Units
The MRET Review also found the contribution of photovoltaic Small Generation Units
to the measure was below the Government's expectations.
In relation to the installation of photovoltaic (PV) units, the Review noted that only a
small proportion of eligible small generation units have created RECs under MRET.
During the Review some parties suggested that the current approach was fraught with
practical difficulties and potentially high transaction costs. Currently the administrative
burden of claiming RECs for photovoltaic systems often outweighs the benefits, with less
than 5 per cent of eligible photovoltaic systems claiming their RECs to date.
It was recognised initiatives were required that would reflect the benefits that flow from
photovoltaic usage and help to grow the PV industry in Australia. This could be
achieved by providing incentives for increased uptake of higher capacity photovoltaic
Small Generation Units, particularly in commercial building settings, which presently lag
behind installation rates in private dwellings.
During the Review several interested parties sought to change the current treatment of
these units under MRET by varying the way RECs can be created. One of the reasons
given by parties was to offset some of the capital costs associated with PV units. The
Review saw the proposed change as a way of growing the PV industry and
complementing the Australian Government's existing Photovoltaic Rebate programme,
which is designed to partially offset the initial capital cost of purchasing and installing a
photovoltaic system.
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The proposed changes increase the threshold capacity for photovoltaic Small Generation
Units from 10kW to 100kW and simplifies arrangements to allow an upfront claim of
RECs for fifteen years, in addition to the current one and five year options, for
photovoltaic small generation units. These changes will increase the assistance offered
under MRET from 1-2 per cent to approximately 10 per cent of the upfront costs of a
photovoltaic system. Allowing a one-off up-front claim for RECs will also reduce the
compliance and administrative costs for business. Although no indication of the actual
transaction costs was provided during the Review, it can be assumed that a one-off
transaction will reduce compliance and administrative costs by at least 50 per cent.
Recent internal analysis indicates that these changes will increase the number of
photovoltaic small generation unit installations in commercial buildings by reducing the
capital costs and installation costs of such systems. It is assumed that 90 per cent of off-
grid and grid-connected distributed PV installations will fall within these changes.
Accordingly, it is predicted that between now and 2010, REC creation from PV
installations will increase by approximately 70,000.
The changes also recognise the currently unvalued benefits to the electricity transmission
system provided by photovoltaic systems connected to the electricity grid. Such benefits
include reduced transmission losses and infrastructure investment.
For systems claiming 15 years of RECs up front, there is a slight risk of these systems
operating for less years due to break-down. However, it was argued by some parties
during the Review that given the costs of photovoltaic units, most users would repair the
unit rather than see it lie inoperative.
Solar Water Heaters
Development of the solar water heater sector has been strong since 2001. This is mainly
due to the implementation of MRET and an increase in state-based solar water heater
rebate schemes and regulatory requirements. Growth rates of between 30 per cent and
40 per cent were observed in the industry from 2001 to 2003. However, recent data
suggests that current growth in sales has slowed to 10 per cent per annum. In 2003, solar
water heaters comprised 26 per cent of the technology mix under MRET1.
Currently under MRET, solar water heater systems are eligible to create RECs, to the
extent that the systems displace non-renewable electricity. This means that installations
of solar water heaters in new homes and buildings, and installations of solar water heaters
that replace electric water heaters, or electric boosted solar water heaters, are eligible.
However, solar water heaters replacing gas water heaters, gas-boosted solar water
heaters, or water heaters using any other fuel are not eligible for RECs.
During the Review, a number of parties drew attention to possible confusion and adverse
consequences for home and building owners, arising from the exclusion of some solar
1
Tambling Report, p.17
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water heater installations or replacement units from the measure. For example, replacing
an electric hot water heater with a solar water heater (gas or electric boosted) was eligible
under the measure, but replacing a gas hot water system with a solar water heater was
not. This situation potentially created disincentives for home owners wanting to install a
solar water heater and restricted the possible abatement that could be achieved as solar
water heaters generally have lower emissions than gas systems.
With the aim of addressing these possible adverse consequences and removing possible
disincentives to the installation of solar water heaters, the Review recommended that all
complete solar water heater systems installed, including replacement systems, to be
eligible to create RECs to the full extent of their energy displacement capacity. This
recommendation has been welcomed by the solar water heater industry.
The Government has agreed that allowing all complete solar water heater systems
installed, including new replacement systems, to be eligible to create RECs to the full
extent of their energy displacement capacity will encourage the development of the
Australian solar water heater industry and contribute to reducing greenhouse gas
emissions in heating water. In addition, allowing these systems is likely to lower the cost
of the measure to the extent that solar water heaters are one of the cheapest eligible
sources under MRET. It will also increase opportunities for households to participate in
the measure.
There is currently limited data from which to draw conclusions regarding future trends in
the installations of solar water heaters due to the infancy of current regulatory schemes in
the states and territories. However, any increase in uptake of solar water heaters under
the MRET as a result of the proposed changes would be at the expense of other sectors of
the renewable energy industry to the extent that it displaces generation from these
sources
under the measure.
Analysis undertaken to model the impacts of the proposed changes suggests that under a
business as usual scenario (no changes to the measure), solar water heaters would
account for around 29 per cent of the measure by 2010 and around 30 per cent by 2020.
This compares to a high growth scenario that estimates solar water heaters to account for
around 31 per cent of the target by 2010 and 2020. A low growth scenario predicts
30 per cent of the measure will be made up of solar water heaters by 2010 and similar
percentage by 2020.
Consultation
Extensive consultation on potential changes to the MRET legislation has been undertaken
through a variety of processes since 2002.
During November 2002, the Environment, Communications, Information Technology
and the Arts (ECITA) Legislation Committee, consulted with a wide range of
stakeholders during their deliberations on the Renewable Energy (Electricity) Amendment
Bill 2002. A total of 44 submissions were made to the Committee from a range of
organisations including renewable energy companies, energy retailers, industry
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1
associations, State Governments and community groups, several of whom appeared as
witnesses to assist the Committee. The ECITA committee presented its report in
December 2002 and recommended that the Bill be passed with consideration of the
recommendations contained in their report.
To ensure that the proposed scope of the independent review of the Renewable Energy
(Electricity) Act 2000 encompassed stakeholders' concerns, the Minister for the
Environment and Heritage invited submissions from interested parties on the terms of
reference. Around 80 submissions were received, leading to a broader investigation than
required under the legislation.
The independent Review also sought submissions from interested parties and received
over 5000 representations. The Review held over 100 consultations in major
metropolitan and regional centres across all States and Territories, and visited seventeen
renewable energy sites. Interested parties that provided submissions to the MRET
Review included renewable energy generators, energy intensive users, the finance sector,
Commonwealth, State and Territory governments, energy retailers and industry
associations, environment and community groups as well as individuals.
Enhancing market transparency and improving business certainty
Submissions to the Review provided a wide range of responses in relation to enhancing
market transparency in the measure. Generally, the submissions were based around
transparency of baselines for pre-existing generators, transparency of cost pass-through
to end users, establishing time frames for the creation of RECs and establishing an
MRET trading floor. Some submissions also suggested that further information be
available from the ORER or the publicly available registers that are required under the
measure. There were no major differing views submitted to the Review in relation to
these issues, although, there were variations in relation to the timeframes for the creation
of RECs as some submissions wanted shorter timeframes and a number of submissions
preferring longer timeframes.
Increasing opportunities for bioenergy and solar technologies
The bioenergy industry argued for changes in the way biomass was treated under MRET.
In regard to the treatment of plantations and energy crops, the industry felt that the high-
value and primary purpose tests provided an unworkable barrier to bioenergy facilities
with multiple product streams. The bioenergy industry has welcomed measures to
redefine the definition of municipal solid waste which will help alleviate any anomalies
within the measure.
The photovoltaic industry argued for a consolidated deeming period, increased deeming
thresholds and multiple REC eligibility for photovoltaic (PV) technology electricity
generation. Other submissions supported elements of this approach. The Victorian
Government, the Australia and New Zealand Solar Energy Society and Greenpeace
supported extending the deeming arrangements for PV. The solar water heater
manufacturing industry has welcomed the changes that provide further opportunities for
the industry.
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During the review there were no dissenting views on these measures.
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Conclusion
Implementing these improvements to the MRET scheme will enhance market
transparency, improve business certainty, encourage innovation through recognising
emerging renewable electricity generation technologies, and increase opportunities for
bioenergy and solar technologies. These measures will also provide employment and
investment opportunities, and reduce the MRET compliance and abatement costs of
MRET. The bioenergy initiatives will also help to promote salinity mitigation and land
remediation activities.
Given the finite nature of the market for additional renewables-based electricity
stimulated by MRET, the improvements aimed at creating opportunities for biomass and
solar energy could result in some minor redistribution of future benefits between
renewable energy investors. However, as this analysis indicates, the overall impact on
energy market participants is expected to be positive, and the option of maintaining the
status quo would mean foregoing the market and operational benefits inherent in these
improvements.
Implementation and Review
The preferred option will be implemented through amendments to the Renewable Energy
(Electricity) Act 2002 and the Renewable Energy (Electricity) Regulations 2001. The
Government will monitor the operation of the amendments on an on-going basis and
through reporting mechanisms within the measure. Annual reporting on the operation of
the MRET scheme will identify the extent to which there is increased participation by
bioenergy and solar technologies within the measure.
Implementing these measures will not incur significant overall net costs for the
renewable energy industry and only minor administrative costs for the Government.
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RENEWABLE ENERGY (ELECTRICITY) AMENDMENT
BILL 2006
NOTES ON CLAUSES
Clause 1 - Short title
1. This clause provides that the short title by which the Act may be cited is the Renewable
Energy (Electricity) Amendment Act 2006.
Clause 2 - Commencement
2. Subclause 2(1) provides a table indicating when each provision of this Bill
commences.
3. Paragraph 1 of the table in subclause 2(1) provides that the commencement date for
sections 1, 2 and 3 and anything in the Bill not elsewhere covered by the table in
subclause 2(1) is the day on which the Bill receives Royal Assent.
4. Paragraph 2 of the table in subclause 2(1) provides that the commencement date for
the provisions contained in Schedule 1 is a single day to be fixed by Proclamation.
However, if Schedule 1 of this Bill does not commence within six months of the Bill
receiving Royal Assent, then it will commence on the first day after the end of this
period. The deferral of commencement date is to allow sufficient time for associated
amendments to the Renewable Energy (Electricity) Regulations 2001 (the
Regulations) to be made.
Clause 3 - Schedule
5. This clause provides that each Act specified in a Schedule is amended or repealed as
set out in that Schedule, and any other item in a Schedule has effect according to its
terms.
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Schedule 1 - Amendments
Part 1 - Amendments
Administrative Decisions (Judicial Review) Act 1977
Item 1 - After paragraph (ga) of Schedule 1
6. This item inserts a new paragraph that clarifies the avenues for appeal in relation to
assessment decisions under the Renewable Energy (Electricity) Act 2000 (the Act).
The item removes an avenue for appeal under the Administrative Decisions (Judicial
Review) Act 1977, given the comprehensive objections procedure included in sections
54 - 65 of the Act in relation to both shortfall and shortfall charge assessments. A
person who is dissatisfied with an assessment may object in the manner set out in
those provisions. In the event that a liable entity is dissatisfied with the Regulator's
decision on an objection, the liable entity may seek review of that decision in the
Administrative Appeals Tribunal, or appeal to the Federal Court against the decision
(section 60).
Renewable Energy (Electricity) Act 2000
Item 2 - Section 3
7. This item amends section 3 of the Act to improve the consistency of terminology
used between different sections of the Act.
Item 3 - Subsection 5(1)
8. This item inserts a definition of the term accredited power station for the purposes of
the Act.
Item 4 - Subsection 5(1)
9. This item inserts a definition of the term electronic signature for the purposes of the
Act.
Item 5 - Subsection 5(1)
10. This item inserts a definition of the term eligible renewable energy source for the
purposes of the Act.
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Item 6 - Subsection 5(1) (definition of identification code)
11. This item repeals the definition of identification code as it is considered to be no
longer necessary.
Item 7 - Subsection 5(1)
12. This item inserts a definition of the term interest charge for the purposes of the Act.
This definition assists in giving effect to the new section 70, revised by Item 135
below.
Item 8 - Subsection 5(1) (definition of monitoring warrant)
13. This item substitutes the definition of monitoring warrant with a new definition.
The purpose of this item is to clarify the meaning of monitoring warrant for the
purposes of the Act.
Item 9 - Subsection 5(1) (definition of National Electricity Code)
14. This item repeals the definition of National Electricity Code.
Item 10 - Subsection 5(1)
15. This item inserts a definition of National Electricity Rules for the purposes of the
Act.
Item 11 - Subsection 5(1) (definition of NEMMCO)
16. This item substitutes the definition of NEMMCO with a revised definition. This
amendment is required as a consequence of Item 10 above.
Item 12 - Subsection 5(1)
17. This item inserts a definition of the term nominated person for the purposes of the
Act. This definition assists in giving effect to new sections 15B and 30B inserted by
Items 42 and 77 respectively below.
Item 13 - Subsection 5(1)
18. This item inserts a definition of the term occupier for the purposes of the Act.
Item 14 - Subsection 5(1)
19. This item inserts a definition of the term offence against this Act for the purposes of
the Act. This item clarifies that an offence against this Act includes an offence
against section 137.1 or 137.2 of the Criminal Code that relates to this Act.
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Item 15 - Subsection 5(1)
20. This item inserts a definition of the term penalty charge for the purposes of the Act.
This definition assists in giving effect to the new section 70 inserted by Item 135
below.
Item 16 - Subsection 5(1)
21. This item inserts a definition of the term premises for the purposes of the Act.
Item 17 - Subsection 5(1)
22. This item inserts a definition of the term registered person for the purposes of the
Act.
Item 18 - Subsection 5(1)
23. This item inserts a definition of the term register of applications for accredited
power stations for the purposes of the Act.
Item 19 - Subsection 5(1) (paragraph (b) of the definition of renewable energy
shortfall charge related liability)
24. This item amends the definition of renewable energy shortfall charge related
liability to assist in giving effect to the new section 70 revised by Item 135 below.
Item 20 - Subsection 5(1)
25. This item inserts a definition of the term required renewable energy for the purposes
of the Act.
Item 21 - Subsection 5(1) (definition of senior employee)
26. This item clarifies the meaning of senior employee for the purposes of the Act.
Item 22 - Subsection 5(1)
27. This item inserts a definition of the term stakeholder to assist in giving effect to the
new sections 30B and 30C inserted by Item 77 below.
Item 23 - At the end of section 5
28. This item inserts a new subsection 5(3) into the Act. The purpose of this item is to
clarify that the Regulator may approve an electronic form for definition of electronic
signature inserted by Item 4 above.
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Item 24 - Section 8
29. This item amends section 8 of the Act to improve the consistency of terminology
used between different sections of the Act.
Item 25 - Section 8
30. The purpose of this item is to clarify that renewable energy certificates may be
created for small generation units as well as solar water heaters.
Item 26 - Section 8
31. This item amends section 8 of the Act by specifying in the overview for Part 2 that
Division 2A (inserted by Item 29 below) provides for the provisional accreditation of
power stations.
Item 27 - Division 2 of Part 2 (Heading)
32. This item amends the heading to Division 2 of Part 2 to clarify that the provisions of
Division 2 of Part 2 of the Act apply to all persons registering under the Act.
Item 28 - Subsection 9(2)
33. This item amends subsection 9(2) to clarify that during suspension of a person's
registration under the additional grounds contained in the new section 30A (inserted
by Item 76 below), the person cannot be registered.
Item 29 - Division 2A - Provisional accreditation of power stations
34. This item inserts a new Division 2A (Provisional accreditation of power stations)
into the Act, and inserts new sections 12A, 12B and 12C into the Act as follows:
New section 12A - Application for provisional accreditation of a power station
The purpose of this new section is to provide that a registered person may apply to
the Regulator for provisional accreditation of a proposed electricity generation system
that the person believes would, if built, be a single power station. This new section
also specifies the information that must be provided to enable the Regulator to grant,
or refuse to grant, an application for provisional accreditation.
New section 12B - Regulator may give provisional accreditation
The purpose of this new section is to provide that if an application for provisional
accreditation is made under new section 12A, then the Regulator must grant, or refuse
to grant, the application for provisional accreditation. If the Regulator is satisfied that
the proposed components of the power station would, if built, be a power station for
the purposes of the Act, the Regulator must advise the applicant by written notice. If
the Regulator is satisfied that the proposed components of the power station would
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not, if built, be a power station for the purposes of the Act, the Regulator must, by
written notice given to the applicant, refuse the application.
New section 12C - Time limit for deciding applications
The purpose of this new section is to specify that the Regulator must make a decision
on provisional accreditation applications within six weeks or a longer period if agreed
between the Regulator and the applicant. If the Regulator has not made a decision
within the six weeks or within the agreed time period, the Regulator will be taken to
have refused the application.
Item 30 - Subsection 13(1)
35. This item repeals subsection 13(1) of the Act and replaces it with a new subsection
13(1). The purpose of this item is to clarify the relationship between a power station
and the components of an electricity generation system, and also clarifies the
circumstances under which a registered person can apply for accreditation of the
components of an electricity generation system as an accredited power station under
the Act.
36. This item, together with items 34, 44, and 77 below improves clarity and ease of
application and enforcement of provisions of the Act concerning accreditation of
power stations, creation of renewable energy certificates (RECs), and submission of
electricity generation returns. This set of items improves the consistency of
terminology used between different sections of the Act, and clarifies that a power
station is a subset of an electricity generation system. The items also concentrates
responsibility and authority for accreditation, REC creation, and reporting in a single
person, the registered person, and provides that all other co-owners and co-operators
must unanimously agree to this person assuming these powers and responsibilities.
Item 31 - Paragraph 13(2)(b)
37. This item amends paragraph 13(2)(b) of the Act to improve the consistency of
terminology used between different sections of the Act.
Item 32 - After paragraph 13(2)(b)
38. This item inserts a new paragraph 13(2)(baa) into the Act. The purpose of this item
is to add a requirement that an application for accreditation must specify all other co-
owners and co-operators of the electricity generation system components for which
accreditation is being sought.
Item 33 - Subparagraph 13(2)(ba)(i)
39. This item amends subparagraph 13(2)(ba)(i) of the Act to improve the consistency of
terminology used between different sections of the Act.
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Item 34 - At the end of subsection 13(2)
40. This item inserts a new paragraph 13(2)(f) into the Act. The purpose of this item is to
require that all other co-owners and co-operators of a particular electricity generation
system consent in writing to the making of the application for accreditation as an
accredited power station.
Item 35 - At the end of subsection 14(1)
41. This item inserts a note at the end of subsection 14(1) of the Act which references a
new Division 10 to Part 2 (see section 30C inserted by Item 77 below) that provides
the Regulator with an express power to later vary a determination of what
components are taken to comprise a particular accredited power station.
Item 36 - After subsection 14(1)
42. This item inserts a new subsection 14(1A) into the Act. The purpose of this item is
to provide that if the Regulator has provided a written notice under subsection 12B(1)
of the Act, and if the Regulator is satisfied that the components of the power station
specified in an application under section 13 of the Act are not materially different
from the components specified in the provisional accreditation application, then the
Regulator must determine that the components of the power station are taken to be a
power station for the purposes of the Act.
Item 37 - Paragraph 14(2)(a)
43. This item amends paragraph 14(2)(a) of the Act to improve the consistency of
terminology used between different sections of the Act.
Item 38 - After subsection 14(2)
44. This item inserts a new subsection 14(2A) into the Act. The purpose of this item is
to provide the Regulator with the flexibility to determine that components of an
electricity generation system, for which accreditation is sought as a new power
station, should be considered alternatively as an expansion or modification to an
already-accredited power station. This item prevents a person from being able to gain
accreditation for a separate power station, of components that would more
appropriately be considered under the Act to be part of another power station. This
item relies on the new section 30C (inserted by item 77 below), which empowers the
Regulator to vary a decision establishing the boundaries of what constitutes a
particular accredited power station, for effective operation.
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Item 39 - At the end of subsection 14(3)
45. This item inserts a note at the end of subsection 14(3) of the Act. The purpose of this
item is to bring the attention of readers of the Act to a new Division 12 to Part 2 (see
new section 30F inserted by item 77 below).
Item 40 - Subsection 14(4)
46. This item removes redundant references in subsection 14(4) to guidelines prescribed
in the Regulations.
Item 41 - At the end of section 15
47. This item inserts a note at the end of section 15 of the Act. The purpose of this item
is to bring the attention of readers of the Act to a new Division 11 to Part 2 (see new
sections 30D and 30E inserted by item 77 below) that provides grounds for
suspending the accreditation of a power station.
Item 42 - After section 15
48. This item inserts a new section 15A into the Act. The purpose of this item is to
specify the time within which the Regulator must determine accreditation
applications. If the Regulator has not made a decision within six weeks, or within
such further period as agreed between the Regulator and the applicant, the Regulator
is taken to have refused the application.
49. This item also inserts a new section 15B into the Act which provides that the
registered person who has applied successfully for accreditation of the components of
an electricity generation system as an accredited power station becomes the
nominated person for that accredited power station.
Item 43 - Section 17
50. This item repeals section 17 in the Act and replaces it with a new section which
clarifies what energy sources are eligible renewable energy sources and what are
ineligible energy sources for the purposes of the Act by:
· removing terms that are redundant and/or not sources, but rather processes or
technologies for transforming energy sources into electricity;
· reordering the list of eligible renewable energy sources so that similar types of
sources are grouped together. Examples include geothermal (aquifer and hot dry
rocks), biomass (solid and wet wastes and gases sourced from various types of
activity);
· regrouping some of the various types of waste in a clearer manner; and
· ensuring that materials or waste products that are made from fossil fuels or made
from products, by-products or wastes from processing of fossil fuels, including
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where mixed in with any of the eligible renewable energy sources, are classified
as ineligible renewable energy sources.
51. This item also specifies that the regulations may prescribe any other eligible
renewable energy source, allowing the Minister to recognise new and emerging
eligible renewable energy sources. In making regulations that determine the
eligibility of new renewable energy sources, the Minister must be confident that the
source is consistent with the objectives of the Act and the source does not contravene
what is not an eligible renewable energy source as specified in the Act and
Regulations.
52. This item also specifies those matters that may be prescribed in the Regulations
made for the purposes of this Act, including:
· defining the meaning of eligible renewable energy sources, and ineligible energy
sources listed in the Act;
· making provision for limiting the meaning of an eligible renewable energy
source; and
· extending the meaning of an ineligible energy source.
These provisions enable regulations to be made for the purposes of the Act to include
requirements and conditions in defining the meanings of eligible renewable energy
sources, and to prescribe the circumstances in which these conditions can be met in
order for these renewable energy sources to be eligible under the Act.
Item 44 - Subsection 18(1)
53. This item repeals subsection 18(1) of the Act and replaces it with a new subsection
which clarifies that only the nominated person for an accredited power station may
create renewable energy certificates for eligible electricity generation in respect of
that accredited power station.
Item 45 - After subsection 18(1)
54. This item inserts a new subsection 18(1A) into the Act. The purpose of this item is
to clarify the circumstances in which a renewable energy certificate should not be
created.
Item 46 - Subsection 18(2)
55. This item repeals subsection 18(2) of the Act and replaces it with a new subsection.
The purpose of this item is to ensure that the terminology in subsection 18(2) is
consistent with the new subsection 18(1) (see item 44 above), by clarifying that it is
the nominated person for that accredited power station who may create the renewable
energy certificate referred to in subsection 18(1).
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Item 47 - Subsection 18(4)
56. This item repeals subsection 18(4) of the Act and replaces it with a new subsection.
The purpose of this item is to clarify that electricity generated by a power station
while its accreditation is suspended, or electricity that was generated using energy
sources that are not eligible renewable energy sources, is not eligible to earn
renewable energy certificates or to contribute towards meeting that power station's
1997 eligible renewable power baseline.
Item 48 - At the end of section 18
57. This item inserts a new subsection 18(5) at the end of section 18. The purpose of this
item is to clarify that while the registration the nominated person for an accredited
power station is suspended, that nominated person may not create any renewable
energy certificates during that period of suspension.
Item 49 - Section 19
58. This item repeals section 19 of the Act and replaces it with a new section 19. The
purpose of this item is to specify the time frame during which certificates may be
created for the generation of electricity by specifying that a certificate may be created
after generation of the electricity in relation to which the certificate is created and
before the end of the year after the year of generation. For example, if electricity was
generated in July 2005, the certificate relating to that generation would need to be
created by the end of 2006.
Item 50 - Subsection 20(1)
59. This item repeals subsection 20(1) of the Act and replaces it with a new subsection.
The effect of this item is to primarily make the timing requirements for submission of
an electricity generation return (EGR) in relation to an accredited power station
consistent with those for submission of liability and compliance related statements by
liable entities under the Act.
60. The new subsection 20(1) also clarifies who is responsible for submission of the
EGR. This item, together with item 44, ensures that both the authority to create
renewable energy certificates and the responsibility to submit the EGR are vested in
the same person, that is, the nominated person for the particular accredited power
station.
Item 51 - Paragraph 20(2)(a)
61. This item amends paragraph 20(2)(a) of the Act to clarify that electricity is generated
by a power station, not a person, to ensure consistency with other provisions of the
Act.
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Item 52 - Paragraph 20(2)(c)
62. This item inserts additional requirements that must be included in an electricity
generation return to clearly distinguish, for tracking and checking purposes, the
number of renewable energy certificates created in the reporting year from electricity
generated in that year, and the number of renewable energy certificates created in that
year from electricity generated in all preceding years.
Item 53 - After section 20
63. This item inserts a new section 20A into the Act which enables electricity generation
returns submitted in relation to an accredited power station to be amended either by
the Regulator upon their own initiative or upon the written request of the nominated
person for that accredited power station. If the Regulator refuses a request by the
nominated person to amend an electricity generation return, the Regulator must notify
that nominated person accordingly.
Item 54 - Subsection 21(1)
64. This item amends subsection 21(1) of the Act by removing the requirement that a
solar water heater must displace non-renewable electricity to be eligible.
Item 55 - Subsection 21(2)
65. This item repeals subsection 21(2) of the Act and replaces it with new subsections
21(2) and 21(3). The purpose of new subsection 21(2) is to specify that certificates
for a solar water heater may only be created within 12 months after the unit has been
installed.
66. New subsection 21(3) provides that regulations may be made in relation to the time
at which a solar water heater is taken to have been installed.
Item 56 - Subsection 22
67. This item is of a technical nature only, and is required as a consequence of item 57
below.
Item 57 - At the end of section 22
68. Currently, before a new solar water heater model is able to earn renewable energy
certificates for eligible installations, details of the new solar water heater, including
the number of renewable energy certificates that may be created for eligible
installations, must first appear in Schedule 7 of the Regulations.
69. This item, together with new section 23AA (inserted by item 58 below), streamlines
administration and shortens the time taken to enable new solar water heater models to
be eligible to earn certificates under the Act by removing the need to amend the
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Regulations to include these new models. Instead, the Regulator will be able to
establish and maintain a register of eligible solar water heaters on the internet or
elsewhere.
70. The item also enables regulations to be made:
· empowering the Regulator to make written determinations in relation to the
number of renewable energy certificates able to be created for a particular solar
water heater installation; and
· requiring the Regulator to have regard to prescribed guidelines in making these
determinations.
Item 58 - At the end of Subdivision B of Division 4 of Part 2
71. This item inserts new section 23AA into the Act which enables the Regulations to
make provision for the Regulator keeping a register of solar water heaters to
effectively replace Schedule 7 of the Regulations, which would then become
redundant.
Item 59 - Subsection 23A(1)
72. This item removes an unintended restriction on the eligibility of installations of
small-scale solar photovoltaic, wind or hydro electricity generation units that are not
large enough to be classified under the Act as accredited power stations. Accredited
power stations using eligible renewable energy sources are not required to displace
non-renewable electricity, thus the requirement that these so-called small generation
units (SGUs) must do so is inconsistent with the intent of the Act, and is removed.
Item 60 - Subsection 23A(2)
73. This item repeals subsection 23A(2) of the Act and replaces it with new subsections
23A(2) and 23A(3). New subsection 23A(2) provides that regulations may be made
in relation to the time at which a small generation unit is taken to have been installed.
74. New subsection 23A(3) provides that regulations may be made in relation to the time
when a `right' to create certificates for small generation units arises and the period
within which such certificates may be created in relation to a small generation unit.
Item 61 - Section 23B
75. This item clarifies that certificates may be created in relation to a small generation
unit rather than certificates being created for the installation of the unit. This means
that certificates may be created at different times during the life of the unit.
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Item 62 - Subsection 23C(1)
76. This item repeals subsection 23C(1) of the Act and replaces it with a new subsection
to clarify that the owner of a small generation unit at the time that a right to create
certificates arises in relation to the unit is entitled to create the certificates.
Item 63 - Subsection 23C(2)
77. This item provides that the regulations may specify how the owner of a small
generation unit may assign the right to create certificates to another person.
Item 64 - At the end of section 23C (2)
78. This item inserts new subsections 23C(4) and 23C(5) into the Act. The purpose of
new subsection 23C(4) is to provide that the regulations may make provision in
relation to when a right to create certificates in relation to a small generation unit may
be assigned and to the kind of persons to whom the right may be assigned.
79. New subsection 23C(5) clarifies that new subsection 23C(4) does not limit the
regulations that may be made for the purposes of subsection 23C(2) of the Act.
Item 65 - At the end of section 23D
80. This item clarifies that a person may create certificates for a small generation unit
under Subdivision A (as a power station) if they elect not to create certificates under
Subdivision BA (as a `deemed' unit).
Item 66 - At the end of Subdivision BA of Division 4 of Part 2
81. This item inserts a new section 23E into the Act. The purpose of this new section is
to provide that the owner of a small generation unit may elect, at the time it is
installed, to create certificates for a small generation unit under Subdivision A (as a
power station) or they may decide to create certificates under Subdivision BA (as a
`deemed' unit).
82. If the owner wishes to create certificates under Subdivision A (as a power station),
the owner must advise the Regulator in writing within 28 days from the date of
installation and before any certificates have been created.
83. If the owner makes an election to create certificates for the unit under Subdivision A
(as a power station), then the person must not create certificates under Subdivision
BA (as a `deemed' unit) and the decision can not be varied or revoked.
84. This item also provides that the regulations will prescribe the small generation units
that qualify for this election process.
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Item 67 - After Subdivision BA of Division 4 of Part 2
85. This item inserts a new Subdivision BB (Solar water heater and small generation unit
return), and inserts a new section 23F into the Act. The purpose of this item is to
provide that a person who creates more than 250 certificates in total under
Subdivisions B (solar water heaters) and Subdivisions BA (small generation units)
during a year, must give a return for the year to the Regulator before 14 February of
the following year, or any later day allowed by the Regulator.
86. The item also specifies the details that must be included in the return.
Item 68 - Subsections 24 (1) and (3)
87. This item is of a technical nature only and reflects current drafting practices of not
referring to `maximum penalty' but instead referring to `penalty' and relying on the
Crimes Act 1914 to convert this to a maximum penalty.
Item 69 - Subsection 25 (1)
88. This item clarifies that the certificates mentioned in this section relate to certificates
created under Subdivision A of Division 4 (power stations) and amends the heading
of section 25 to include `power stations'.
Item 70 - Paragraph 25(2)(b)
89. This item clarifies that a renewable energy certificate must contain the electronic
signature of the person who is registered under the Act to create the certificate, rather
than the signature of an individual who physically enters the required data onto the
Registry on behalf of the registered person.
Item 71 - Paragraph 25(2)(c)
90. This item provides that, for administrative clarity, a renewable energy certificate is to
contain the date on which the final part of the electricity in relation to that certificate
was generated.
Item 72 - After Paragraph 25(2)(c)
91. This item inserts a new paragraph 25(2)(ca) to improve consistency between
information required to be included as part of a renewable energy certificate, and
information required to be included in the Register of Renewable Energy Certificates.
Item 73 - After section 25
92. This item inserts a new subsection 25A into the Act that specifies the form and
content of certificates created under Subdivision B (for solar water heaters) or
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Subdivision BA (for small generation units) of Division 4. The item also specifies
the information that each certificate is to contain.
Item 74 - Before section 29
93. This item inserts a new subsection 28A into the Act that specifies that a registered
owner of a certificate may surrender the certificate to the Regulator. This means that
the owner of the certificate may surrender the certificate even if the owner does not
have a liability under other sections of the Act.
Item 75 - Subsection 29(1)
94. This item clarifies that certificates surrendered under sections 28A, 44 or 95 of the
Act are no longer valid.
Item 76 - After section 30
95. This item inserts a new section 30A into the Act which specifies further grounds
(additional to those specified in section 30 of the Act) enabling the Regulator to
suspend the registration of a registered person.
96. Once created and registered, certificates cannot be revoked. This new section
enables the Regulator to act to more proactively manage the risk of renewable energy
certificates being created contrary to the intent of the Act.
97. New section 30A extends the grounds for suspending a person's registration by
allowing the Regulator to suspend the registration of a person in circumstances where
the Regulator believes, on reasonable grounds, that:
· the person has committed an offence against the Act or the Regulations; or
· registration was obtained improperly. An example of this is by supplying
incorrect information as part of the application for registration.
97. This item also amends the heading to section 30 of the Act to clarify that the grounds
for suspension outlined in that section relate to circumstances associated with the
conviction of an offence.
Item 77 - At the end of Part 2
98. This item inserts four new Divisions into the Act after Division 8 of Part 2. These
Divisions outline the processes relating to accredited power stations under the Act.
New Division 9-Changing the nominated person for an accredited power station.
99. New section 30B, which is linked in its effect to new subsection 18(1) (inserted by
item 44 above), establishes the process for changing the nominated person (defined in
subsection 5(1) (see item 12 above)) for an accredited power station. This provides
flexibility for stakeholders (defined under subsection 5(1) (see item 22 above)) to be
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able to replace an existing nominated person to reflect changes in circumstances
relating to the accredited power station, such as changes in ownership or operational
control.
New Division 10-Varying what constitutes a power station
100. Section 30C is linked to a new note in subsection 14(1) inserted by item 35, and
addresses a current limitation in the legislation that there is no express power for the
Regulator to vary what constitutes an accredited power station for the purposes of the
Act to reflect changed circumstances or to correct an error. Currently, it is possible to
interpret the Act such that any equipment such as wind turbines that may be added to
an existing wind farm, would require separate accreditation as a new power station.
101. The new section 30C establishes a process allowing the Regulator to vary a
determination for an accredited power station made pursuant to paragraph 14(1)(a) of
the Act. The new section also sets out the information that is to be included in an
application to vary the components of an accredited power station, which includes a
requirement for all stakeholders to agree in writing to the changes proposed by the
applicant.
New Division 11-Suspending the accreditation of a power station
102. Two new sections have been included in this new Division to allow for the
suspension of the accreditation of a power station in a number of circumstances. The
sections include references to new subsection 18(4) (inserted by item 47 above).
103. New section 30D provides the Regulator with a power to suspend the accreditation
of a power station if satisfied that a gaming arrangement has occurred. The concept
of a gaming arrangement involves the co-ordination of power station electricity
outputs to deliberately, without consideration of operational or restructural
requirements, increase the number of renewable energy certificates that can be
created in a year without equivalent increase in renewable energy generation.
Gaming has the potential to significantly dilute the effectiveness of the measure to
stimulate the growth of the renewable energy industry and abate greenhouse gas
emissions.
104. New section 30D defines the meaning of a `gaming arrangement' and specifies the
conditions that must be present before the Regulator may consider suspending the
accreditation of a power station.
105. New section 30D also requires the Regulator to take into account information that
demonstrates that specified indicators of gaming were not the result of a gaming
arrangement, in deciding on whether to suspend the accreditation of a power station.
This means that the Regulator must have regard to any operational or industry
restructuring factors when considering suspending the accreditation of a power
station.
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106. New section 30E sets out two other circumstances where the Regulator may
suspend the accreditation of a power station. These are:
· failure to provide an electricity generation return in accordance with
section 20 of the Act; or
· belief on reasonable grounds that the power station is being operated in
contravention of a Commonwealth, State or Territory law.
107. New section 30E also enables the Regulator to suspend accreditation in any other
circumstances prescribed by the Regulations. A note is included to clarify that
renewable energy certificates may not be created from electricity generated by a
power station while its accreditation is suspended, nor can this generation be
counted as contributing towards meeting the 1997 eligible renewable power
baseline for that power station.
New Division 12-Varying 1997 eligible renewable power baselines
108. New section 30F addresses an inflexibility in the Act that prevents a 1997
baseline which has been set for an accredited power station from being
subsequently amended. This new section allows the Regulator to vary the 1997
baseline in the circumstances prescribed in the Regulations. Decisions to vary
1997 eligible renewable power baselines are reviewable.
109. New section 30F provides that if the Regulator increases the 1997 baseline for an
accredited power station, it will only apply to years following the year in which
the determination to increase the baseline was made. If the Regulator reduces the
1997 baseline for an accredited power station it will apply to the year(s) specified
in the determination.
Item 78 - At the end of paragraph 31(2)(c)
110. This item provides that an acquisition of electricity by a person or body
prescribed by regulations is not a relevant acquisition of electricity under the Act.
The prescribed person or body is to undertake an independent market operator
role similar to NEMMCO.
Item 79 - Paragraph 32(1)(a)
111. This item provides that a wholesale acquisition of electricity under the Act
includes an acquisition of electricity from a person or body prescribed by
regulations. The prescribed person or body is to undertake an independent market
operator role similar to NEMMCO.
Item 80 - Subsection 32(2)
112. This item amends subsection 32(2) of the Act to improve the consistency of
terminology used between different sections of the Act.
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Item 81 - At the end of section 32
113. Currently it is possible for more than one transaction in a set of transactions
occurring in relation to supply of a particular quantum of electricity to be relevant
acquisitions under sections 31 to 34 of Part 3 of the Act, and for a liability to arise
under the Act in relation to each of those transactions.
114. This item inserts a new subsection 32(3) into the Act which clarifies that if a set
of transactions includes a transaction which is an acquisition from the National
Electricity Market (NEM), then that acquisition will be the only acquisition that
gives rise to a liability under the Act. Any other acquisition in relation to that
quantum of electricity will not be a relevant acquisition of electricity for the
purposes of the Act, despite the operation of any of the other provisions of Part 3.
Item 82 - Subsection 33(2)
115. This item is a consequential amendment required to reflect the fact that the recent
National Electricity Reforms now refer to the `National Electricity Rules', not the
`National Electricity Code'.
Item 83 - Subsection 33(2)
116. This item amends subsection 33(2) of the Act to improve the consistency of
terminology used between different sections of the Act.
Item 84 - Subsection 33(2A)
117. This item repeals subsection 33(2A) which is rendered redundant by the new
subsection inserted under item 81.
Item 85 - Subsection 33(3)
118. This item amends subsection 33(3) of the Act to improve the consistency of
terminology used between different sections of the Act.
Items 86 - Section 34
119. This item clarifies that no acquisition of electricity by NEMMCO or a person or
body prescribed in the regulations is a relevant acquisition of electricity under the
Act. The prescribed person or body is to undertake an independent market
operator role similar to NEMMCO. This item also consequentially amends the
heading to section 34.
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Item 87 - Section 38
120. This item amends section 38 of the Act to improve the consistency of terminology
used between different sections of the Act.
Item 88 - Paragraph 39(2)(b)
121. This item repeals paragraph 39(2)(b) of the Act and replaces it with a new
paragraph to clarify the meaning of terms used in a formula for calculating the
default renewable power percentage for a year.
Item: 89 - After subsection 39(3)
122. This item inserts a new subsection 39(3A) into the Act which provides the
Minister with the flexibility, in determining the renewable power percentage
(RPP) for a year, to consider an estimate of certain information in relation to
eligible renewable electricity generated during previous years if the actual
information is not available at the time of consideration by the Minister.
Item 90 - Section 40 (table, heading to column 2)
123. This item clarifies that the gigawatt-hour column represents the total interim
target for each year and not the additional generation that must be added to the
previous year's target.
Item 91 - At the end of section 41
124. This item inserts a note at the end of section 41 of the Act making a reference to
section 101 of the Act, which provides further details concerning a penalty charge
to be paid in addition to a charge applicable under section 41.
Items 92 and 93 - Subsection 42(1) and Subsection 42(1)
125. Currently, two different types of charge are covered by the term `additional
renewable energy shortfall charge.' To avoid confusion between these two
distinct kinds of additional charge, and to prevent confusion with the renewable
energy shortfall charge, this item separately identifies these two types of charge as
`penalty charge' applicable under Part 9, and `interest charge' applicable under
section 70 (see also items 15 and 7, respectively, for definitions of these terms).
Consequential amendments to other sections of the Act have also been made to
reflect this change in terminology.
Item 94 - At the end of subsection 44(1)
126. This item inserts a note at the end of subsection 44(1) of the Act which refers to
new section 45A (inserted by item 102 below).
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Item 95 - Paragraph 44(2)(c)
127. This item clarifies that a annual energy acquisition statement must include the
megawatt hour value of certificates being surrendered under section 44.
Item 96 - Subsection 44(4)
128. This item amends subsection 44(4) of the Act to improve the consistency of
terminology used within section 44.
Item 97 - Subsection 44(4)
129. This item clarifies that the surrender of certificates referred to in subsection 44(4)
relates to the surrender of certificates under section 44.
Item 98 - Subsection 44(4)
130. This item amends subsection 44(4) of the Act to improve the consistency of
terminology between different sections of the Act.
Item 99 - Subsection 44(4)
131. This item amends subsection 44(4) of the Act to improve the consistency of
terminology used within the subsection.
Item 100 - Subsection 44(5)
132. This item repeals subsection 44(5) of the Act and substitutes it with new
subsections 44(5), 44(6), 44(7), 44(8) and 44(9). The purpose of this item is to
allow liable entities to pay a fee for the surrender of renewable energy certificates
within a period of 28 days from the entity receiving a notice from the Regulator
following lodgment of an energy acquisition statement. The purpose of the
Regulator's notice is to advise the number of certificates that are able to be
surrendered for that year and the fee payable in respect of the surrender of those
certificates. Where the fee is not paid within 28 days of receipt of the Regulator's
notice, this becomes a debt payable to the Commonwealth and is recoverable by
the Regulator in a court of competent jurisdiction.
Item 101 - Section 45
133. This item clarifies that the restrictions on certificates that can be surrendered as
outlined in section 45 relates to the surrender of certificates under section 44.
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Item 102 - After section 45
134. This item inserts a new section 45A into the Act. New section 45A enables the
Regulator to amend an energy acquisition statement (EAS) on their own initiative
or on the application of the liable entity. The Regulator is to notify the liable
entity of a decision to amend an EAS and a decision to amend or to refuse to
amend an EAS will be reviewable. Amending an EAS may also require the
Regulator to issue a default assessment under section 48 or amend an assessment
under section 49.
Item 103 - Paragraphs 46(2)(d) and (e)
135. This item repeals paragraphs 46(2)(d) and (e) of the Act and replaces those
paragraphs with a new paragraph 46(2)(d) which clarifies that a liable entity may
have a carried forward shortfall for a year or a renewable energy shortfall charge
for the year, but not both.
Item 104 - Paragraph 47(c)
136. This item reflects the fact that in some circumstances, when lodging a renewable
energy shortfall statement, no charge may be payable.
Item 105 - Paragraph 47(e)
137. This item repeals paragraph 47(e) of the Act and replaces it with new paragraphs
47(e) and (ea) which improve on current reporting arrangements by ensuring that
all renewable energy certificate shortfalls for a year are identified in a liable
entity's first renewable energy shortfall statement for that year, even if the
shortfall is less than ten percent (10%) and a renewable energy shortfall charge is
not payable.
Item 106 - Paragraph 48(1)(b)
138. This item strengthens reporting arrangements relating to total liabilities by
allowing the Regulator to make a default assessment for any liable entity that the
Regulator believes has a renewable energy certificate shortfall for the year, and it
has not lodged a renewable energy shortfall statement.
Item 107 - Subsection 48(1)
139. This item reflects the fact that in some circumstances no charge may be payable in
relation to a liable entity's renewable energy certificate shortfall for the year.
Item 108 - Paragraph 48(2)(c)
140. Similar to item 106 above, this item strengthens reporting arrangements relating to
total liabilities by allowing the Regulator to make a default assessment for any
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liable entity in circumstances where the Regulator believes that the liable entity has
a renewable energy certificate shortfall for the year, and it has not lodged a
renewable energy shortfall statement or an energy acquisition statement.
Item 109 - Subsection 48(2)
141. This item reflects the fact that in some circumstances no charge may be payable in
relation to a liable entity's renewable energy certificate shortfall for the year.
Item 110 - At the end of subsection 49(1)
142. To avoid confusion, this item inserts a note to clarify that where the Regulator has
made an assessment of the penalty charge owed by a liable entity (see Part 9 of the
Act), then the liable entity may not apply to the Regulator to amend an assessment
conducted by the Regulator under this Division (Division 2 of Part 5 of the Act). If
the liable entity wishes to dispute the penalty charge imposed, then it can apply for
a review of that decision under subsection 66(l) of the Act.
Item 111 - Subsection 49(3)
143. This item clarifies that it is possible for the Regulator to amend an assessment with
a view to reducing a liable entity's liability beyond the four year time period
allowed where:
· the liable entity has applied for the assessment to be amended within 4 years
from the day that the renewable energy shortfall charge became payable; and
· within that four year period the liable entity lodges all information the
Regulator needs to decide the application.
Item 112 - Paragraph 49(6)(a)
106. This item is of a technical nature only to rectify a grammatical error.
Item 113 - Paragraph 49(6)(b)
107. This item is of a technical nature only to rectify a grammatical error.
Item 114 - Subsection 50(2) (definition of overpaid amount)
108. Currently two different types of charge are covered by the term `additional
renewable energy shortfall charge.' To avoid confusion between these two
distinct kinds of additional charge, and to prevent confusion with the renewable
energy shortfall charge, this item separately identifies these two types of charge as
`penalty charge' applicable under Part 9, and `interest charge' applicable under
section 70 (see also items 15 and 7, respectively, for definitions of these terms).
Consequential amendments to other sections of the Act have also been made to
reflect this change in terminology.
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Item 115 - Section 52
109. This item amends section 52 of the Act to improve the consistency of terminology
used between different sections of the Act.
Item 116 - At the end of Part 5
110. This item inserts a new section 53A into the Act which clarifies that a liable party
that has received an assessment of a penalty charge cannot apply to have that
assessment amended under Division 2 of Part 5 of the Act.
Item 117 - Section 54
111. This item is of a technical nature only and amends section 54 of the Act as a
consequence of item 118 below.
Item 118 - At the end of section 54
112. This item inserts a new subsection 54(2) into the Act which clarifies that if a
liable party has received an assessment of a penalty charge under section 102 of
the Act, the liable party cannot object to that assessment under the provisions of
this Division. If the liable entity wishes to dispute the penalty charge, then it can
apply for a review of that decision under subsection 66(l).
Item 119 - Section 55
113. This item amends section 55 of the Act to improve the consistency of terminology
used in Part 6 of the Act.
Item 120 - Subsection 57(2)
114. This item amends subsection 57(2) of the Act to improve the consistency of
terminology used in Part 6 of the Act. This item also amends the heading to
section 57 to clarify the requirement in this section that the liable entity must
make a written request to the Regulator to deal with an objection.
Item 121 - Subsection 57(4)
115. This item amends subsection 57(4) of the Act to improve the consistency of
terminology used in Part 6 of the Act.
Item 122 - Subsection 57(6)
116. This item amends subsection 57(6) of the Act to improve the consistency of
terminology used in Part 6 of the Act.
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Item 123 - Subsection 58(3)
117. This item amends subsection 58(3) of the Act to improve the consistency of
terminology used in Part 6 of the Act.
Item 124 - Section 62
118. This item amends section 62 of the Act to improve the consistency of terminology
used in Part 6 of the Act.
Item 125 - Section 65
119. This item amends section 65 to clarify that the additional renewable shortfall
charge is now termed as either a penalty charge or an interest charge.
Item 126 - Subsection 66(1) (after table item 1)
120. This item inserts a new item 1A in the Table in subsection 66(1) of the Act to
clarify that a decision of the Regulator in relation to an application for the
provisional accreditation of a power station is a reviewable decision.
Item 127 - Subsection 66(1) (after table item 3)
121. This item inserts a new item 3A in the Table in subsection 66(1) of the Act to
clarify that a decision of the Regulator to amend or to refuse to amend an
electricity generation return is a reviewable decision.
Item 128 - Subsection 66(1) (table item 5)
122. This item includes a reference to section 30A in item 5 of the table to subsection
66(1) to clarify that a decision of the Regulator made under that section is a
reviewable decision.
Item 129 - Subsection 66(1) (after table item 5)
123. This item inserts new items 5A to 5E in the table to subsection 66(1) of the Act to
clarify that decisions of the Regulator under new sections 30B, 30C, 30D, 30E
and section 30F (see item 77 above), and a decision of the Regulator under new
section 45A (see item 102 above) are reviewable decisions.
Items 130 and 131 - Subsection 66(1) (table item 6), and Subsection 66(1) (table
item 7)
124. Currently two different types of charge are covered by the term `additional
renewable energy shortfall charge.' To avoid confusion between these two
distinct kinds of additional charge, and to prevent confusion with the renewable
energy shortfall charge, these items separately identify these two types of charge
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as `penalty charge' applicable under Part 9, and `interest charge' applicable under
section 70 (see also items 15 and 7, respectively, for definitions of these terms).
Consequential amendments to other sections of the Act have also been made to
reflect this change in terminology.
Item 132 - Part 7 (heading)
125. This item is of a technical nature only and deletes the term `refunding' from the
heading to this Part because the provisions of this Part only deal with collection
and recovery of charges.
Item 133 - Section 68
126. This item amends section 68 of the Act to improve the consistency of terminology
used in Part 7 of the Act.
Item 134 - Section 68
127. This item replaces the reference to `the additional charge' with a reference to `that
charge' in section 68 to clarify that this term refers to the penalty charge.
Item 135 - Section 70
128. This item repeals section 70 and replaces it with a new section to clarify that an
interest charge, by way of penalty, is payable in relation to the whole of the
unpaid renewable energy shortfall charge and the whole of the unpaid penalty
charge. The interest charge for a day becomes due and payable at the end of the
day.
Item 136 - Subsection 81(1)
129. This item repeals subsection 81(1) and replaces it with a new subsection. The
current subsection 81(1) is too broad and could apply to any receivers and
principals. The new subsection narrows the application to only those receivers, or
receivers and managers, that take possession of a company's assets for the
company's debenture holders, and the company is, or has been, a liable entity
under the Act.
Item 137 - Section 82
130. This item is of a technical nature only and reflects current drafting practices of not
referring to `maximum penalty' but instead referring to `penalty' and relying on
the Crimes Act 1914 to convert this to a maximum penalty.
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Item 138 - At the end of subsection 85(1)
131. This item inserts a new paragraph 85(1)(c) into the Act which limits the
application of Subdivision D of Division 2 of Part 7 so it only applies to agents
whose principal is, or has been, a liable entity under the Act.
Item 139 - Section 86
132. This item is of a technical nature only and reflects current drafting practices of not
referring to `maximum penalty' but instead referring to `penalty' and relying on
the Crimes Act 1914 to convert this to a maximum penalty.
Item 140 - Paragraph 89(3)(a)
133. This item omits the word `return' and substitutes it with the word `statement' to
clarify the type of information that a trustee has to provide in circumstances
where the Regulator is recovering a charge from a deceased person's estate.
Item 141 - Paragraph 89(3)(b)
134. This item omits the redundant term `additional returns' from paragraph 89(3)(b).
Item 142 - Paragraph 89(4)(b)
135. This item omits the word `return' and substitutes it with the word `statement' to
clarify that if the trustee fails to provide a statement, the Regulator may proceed
with assessing the liability.
Item 143 - Subsection 95(2)
136. This item amends subsection 95(2) of the Act to improve the consistency of
terminology used between different sections of the Act.
Item 144 - Subsection 96(2)
137. This item clarifies that the amount of renewable energy shortfall charge referred
to in subsection 96(2) is the amount which was paid by the liable entity.
Items 145, 146, 147, 148, 149, 150, 151 and 152 - Subsection 99(1), Subsection 99(2),
Subsection 99(3), Subsection 99(4), Subsection 100(1), Section 101, Subsection 102(1)
and Section 103
138. Currently two different types of charge are covered by the term `additional
renewable energy shortfall charge.' To avoid confusion between these two
distinct kinds of additional charge, and to prevent confusion with the renewable
energy shortfall charge, these items separately identify these two types of charge
as `penalty charge' applicable under Part 9, and `interest charge' applicable under
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section 70 (see also items 15 and 7, respectively, for definitions of these terms).
Consequential amendments to other sections of the Act have also been made to
reflect this change in terminology.
Item 153 - After subsection 107(1)
139. This item inserts a new subsection 107(1A) into the Act which allows the
Regulator to appoint, as authorised officers, other persons appointed or employed
by the Commonwealth, State or Territory so that there is a larger pool of people
the Regulator may draw on to assist with auditing tasks.
Item 154 - Section 109
140. This item is of a technical nature only and reflects current drafting practices of not
referring to `maximum penalty' but instead referring to `penalty' and relying on
the Crimes Act 1914 to convert this to a maximum penalty.
Item 155 - Subsection 110(1)
141. This item amends subsection 110(1) of the Act to extend the monitoring powers
of an authorised officer to enable the officer to enter premises to determine
whether the Act or the Regulations have been complied with. As information is
also provided by liable entities in accordance with the Regulations, it is necessary
that the monitoring provisions be extended so that authorised officers can
substantiate such information.
Item 156 - Paragraph 111(1)(b)
142. This item amends paragraph 111(1)(b) of the Act to insert the words ` or the
regulations' to ensure that an authorised officer has the power to examine any
activity conducted on the premises that may relate to information provided for the
purposes of complying with the Act or the Regulations.
Item 157 - Paragraph 111(1)(c)
143. This item amends paragraph 111(1)(c) of the Act to insert the words ` or the
regulations' to ensure that an authorised officer has the power to examine any
thing on the premises that may relate to information provided for the purposes of
complying with the Act or the Regulations.
Item 158 - Paragraph 111(1)(e)
144. This item amends paragraph 111(1)(e) of the Act to insert the words ` or the
regulations' to ensure that an authorised officer has the power to inspect any
document on the premises that may relate to information provided for the
purposes of complying with the Act or the Regulations.
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Item 159 - Subparagraph 111(1)(h)(iii)
145. This item is of a technical nature only to correct a grammatical error.
Item 160 - Subsection 111(2)
146. This item amends subsection 111(2) to clarify that the use of the term `monitoring
powers' in Part 11 of the Act includes using those powers for the purposes of
substantiating information provided under the Regulations as well as information
provided under the Act.
Item 161 - Paragraph 112(1)(a)
147. This item amends paragraph 112(1)(a) to insert the words ` or the regulations' to
ensure that when an authorised officer has entered premises with the consent of
the occupier, the authorised officer may request the occupier to answer any
questions related to the provision of information under the Act or the Regulations.
Item 162 - Paragraph 112(2)(a)
148. This item amends paragraph 112(2)(a) to insert the words ` or the regulations' to
ensure that where an authorised officer has entered premises by authority of a
monitoring warrant, the authorised officer may require the occupier to answer any
questions related to the provision of information under the Act or the Regulations.
Item 163 - Subsection 113(1)
149. This item is of a technical nature only and reflects current drafting practices of not
referring to `maximum penalty' but instead referring to `penalty' and relying on
the Crimes Act 1914 to convert this to a maximum penalty.
Item 164 - Sections 114 and 115
150. Section 114 makes it an offence for a person to provide false or misleading
evidence, and section 115 makes it an offence for a person to provide false or
misleading documents. This item repeals sections 114 and 115 as they are no
longer necessary having regard to section 137.1 of the Criminal Code which
applies to false or misleading information and section 137.2 of the Criminal Code
which applies to false or misleading documents.
Item 165 - Subsection 119(1)
151. This item replaces `premises in respect of which it is being executed' with
`warrant premises' to simplify the language used subsection 119(1) and to ensure
consistency with the definition of warrant premises as defined in subsection 5(1)
of the Act.
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Item 166 - Paragraph 120(2)(a)
152. This item amends paragraph 120(2)(a) of the Act to extend the monitoring
provisions so that authorised officers can operate electronic equipment already at
premises to substantiate information provided under the Act or the Regulations.
Item 167 - Section 124
153. This item is of a technical nature only and reflects current drafting practices of not
referring to `maximum penalty' but instead referring to `penalty' and relying on
the Crimes Act 1914 to convert this to a maximum penalty.
Item 168 - Subsection 125(2)
154. This item amends subsection 125(2) of the Act to enable a magistrate to issue a
monitoring warrant to allow authorised officers access to premises to substantiate
information provided under the Act or Regulations to determine whether the Act
or Regulations have been complied with.
Item 169 - After Part 11
155. Currently, information-gathering powers under the Act are restricted to authorised
officers, and may only be exercised when premises have been entered. This item
adds a new Part 11A (Information-gathering powers) and comprises sections
125A to 125F which provide the Regulator with new information-gathering
powers consistent with those contained in other Commonwealth legislation such
as the Textile, Clothing and Footwear Strategic Program Act 1999 and the Diesel
and Alternative Fuel Grants Scheme Act 1999.
156. New section 125A provides that under certain circumstances, the Regulator is
empowered to require a person to give information and evidence and produce
documents relevant to the operation of the Act. This section also requires that the
Regulator give written notice to the person when exercising its powers under this
section, and sets out the information that this notice must contain. This section
also creates an offence for failure by the person to comply with a notice provided
by the Regulator under new subsection 125A(2). The maximum penalty for a
contravention of this provision is 20 penalty units (one penalty unit is equivalent
to $110 (see section 4AA of the Crimes Act 1914)).
157. New section 125B provides that an individual is not excused from providing
information, evidence or documentation under new Part11A on the grounds of
self-incrimination, or of exposure of the individual to a penalty. However, the
section also sets limits on the circumstances under which this information,
evidence or documentation, or anything deriving from it can be used in evidence
against the individual in criminal proceedings.
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158. New section 125C provides the Regulator with powers in relation to inspecting,
copying and taking extracts of documents produced under new Part 11A.
159. New section 125D sets out powers and responsibilities of the Regulator in relation
to possession of a document produced under new Part 11A, and the entitlements
of a person otherwise entitled to possession of the document.
160. New section 125E sets out the grounds on which a person is guilty of an offence
of providing false and misleading evidence in relation to new section 125A, and
sets a maximum penalty of 12 months imprisonment for this offence.
Item 170 - Paragraph 126(1)(b)
161. The Regulator is head of a statutory agency called the Office of the Renewable
Energy Regulator (see section 151 of the Act). This item substitutes paragraph
126(1)(b) of the Act with a new paragraph to clarify that the secrecy provisions of
Part 12 of the Act apply to the staff of the Office of the Renewable Energy
Regulator.
Item 171 - Subsection 127(1)
162. This item is of a technical nature only and reflects current drafting practices of not
referring to `maximum penalty' but instead referring to `penalty' and relying on
the Crimes Act 1914 to convert this to a maximum penalty.
Item 172 - Section 128
163. This item amends section 128 of the Act to clarify the meaning of this section and
enable disclosure of protected information or production of protected documents
to a court in the course of a criminal investigation under the Act.
Item 173 - Subsection 130(1)
164. This item amends subsection 130(1) of the Act to clarify the meaning of this
subsection and to allow the Regulator, or a person authorised by the Regulator, to
divulge information obtained, or produce in court a document obtained under or
for the purposes of the Act, where necessary to do so for the purpose of the Act.
Item 174 - Paragraph 132(1)(b)
165. This item clarifies that protected information can be divulged by the Regulator, or
a person authorised by the Regulator, to the Administrative Appeals Tribunal with
respect to proceedings under the Act only.
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Item 175 - After paragraph 134(a)
166. This item inserts a new paragraph (aa) into section 134 of the Act which clarifies
the type of information that the Regulator may publish relating to a liable entity's
renewable energy certificate.
Item 176 - Paragraph 134(b)
167. This item is of a minor technical nature required to specify that the Regulator may
publish total renewable energy certificate shortfalls in relation to a particular year.
Item 177 - Paragraph 138(b)
168. This item amends paragraph 138(b) to clarify that the name of the `nominated
person' for the accredited power station is to be included in the register of
accredited power stations.
Item 178 - After paragraph 138(c)
169. This item inserts a new paragraph 138(ca) into the Act specifying additional
information relating to the 1997 eligible renewable power baseline for each power
station (including any variations that may be made to the baselines under section
30F (inserted by item 77 above)) must also be included on the register of
accredited power stations.
Item 179 - Paragraph 140(a)
170. This item clarifies that the number that appears on renewable energy certificates is
a unique identification code (see section 25 of the Act).
Item 180 - Paragraph 140(da)
171. This item clarifies that the `register of renewable energy certificates' should
include the eligible renewable energy source(s) in respect of which the certificate
was created.
Item 181 - Paragraph 141A(b)
172. This item clarifies that the contents of the register of applications for accredited
power stations is to include the location of the power station
Item 182 - Paragraph 141A(d)
173. This item is of a technical nature only to correct a typographical error in the Act.
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Item 183 - At the end of subsection 147(3)
174. This item inserts a new paragraph 147(3)(e) into the Act which allows the
Minister to terminate the appointment of the Regulator if the Regulator, without
reasonable excuse, fails to notify the Minister of any conflicts of interest.
Item 184 - After section 147
175. This item inserts a new section 147A into the Act which provides that the
Regulator must give the Minister written notice of all interests, pecuniary or
otherwise, that could conflict with the proper performance of the Regulator's
functions.
Item 185 - Subsection 148(3)
176. This item amends subsection 148(3) of the Act to remove a redundant reference to
the Consolidated Revenue Fund. Section 157 of the Act clarifies that all
payments under this Act are to be made out of the Consolidated Revenue Fund.
Item 186 - Part 15 (heading)
177. This item substitutes the heading to Part 15 and replaces it with a new heading to
clarify that the offences under Part 15 relate to the failure to provide documents.
Item 187 - Sections 152 and 153
178. This item repeals sections 152 and 153 because there is no longer a need for the
Act to specify the application of the Criminal Code and the relevant sections of
the Criminal Code relating to the giving of false or misleading evidence or
documents.
Item 188 - Subsections 154(1) and (3)
179. This item is of a technical nature only and reflects current drafting practices of not
referring to `maximum penalty' but instead referring to `penalty' and relying on
the Crimes Act 1914 to convert this to a maximum penalty.
Item 189 - Subsection 160(1)
180. This item is of a technical nature only and corrects a typographical error in the
Act.
Item 190 - Subsection 161(1)
181. This item is of a technical nature only and is required as a consequence of item
191 below.
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Item 191 - Subsection 161(2)
182. This item repeals subsection 161(2) of the Act which will expedite the regulation
making process by removing the requirement for draft new or amended
regulations to be made available for public comment for 30 days before they are
made.
Part 2 - Application, saving and transitional provisions
Item 192 - Application - assessments
183. This item provides that a review under the Administrative Decisions (Judicial
Review) Act 1977 of the assessment-related decisions under the Act that are
detailed in item 1, only applies in relation to decisions made after the
commencement of item 1.
Item 193 - Application - creation of renewable energy certificates
184. This item clarifies that the amendments made by items 4, 44, 45, 46, 69, 70, 71,
72, 73, 179 and 180 relating to the creation of renewable energy certificates only
apply to renewable energy certificates created after the commencement of those
items.
Item 194 - Application - charges
185. This item clarifies that the amendments made by items 7, 15, 19, 114, 125, 130,
131, 133, 134, 135 and 145 to 152 relating to the amounts that a liable entity
becomes liable to pay only apply to amounts that become liable for payment after
the commencement of those items.
Item 195 - Application - applications for accreditation of a power station
186. This item clarifies that the amendments made by the items 30, 31, 32, 34, 38 and
181 relating to applications for accreditation of a power station only apply for
applications made after the commencement of those items.
Item 196 - Application - time limit for deciding applications
187. This item clarifies that the amendment made by item 42 relating to time limits for
deciding applications for accreditation of power stations applies to applications
made after the commencement of that item.
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Item 197 - Application - electricity generation
188. This item clarifies that the amendments made by items 43 and 49 relating to
electricity generated only apply in relation to electricity generated after the
commencement of those items.
Item 198 - Transitional - electricity generated before commencement
189. This item provides a transitional arrangement in relation to when certificates for
electricity generated before this item commences must be created. For electricity
generated before this item commences, certificates can not be created after the
year following the year this item commences. For example, if this item
commences on 1 July 2006, and electricity has been generated prior to that date,
then the certificates for that electricity generation must be created before 31
December 2007.
Item 199 - Application - solar water heaters and small generation units
190. This item sets out the applications arrangements that will apply with respect to
solar water heaters and small generation units by clarifying that:
· the amendments made by items 54, 55, 57 and 58 apply in relation to solar
water heaters installed after the commencement of those items;
· the amendments made by items 59, 60 (in so far as it inserts subsection
23A(2) of the Act), 65 and 66 apply in relation to small generation units
installed after the commencement of those items;
· the amendments made by items 60 (in so far as it inserts subsection 23A(3) of
the Act), 61 and 62 apply in relation to small generation units installed before
or after the commencement of those items;
· the amendments made by items 63 and 64 apply in relation to assignments
made after the commencement of those items in relation to small generation
units installed before or after that commencement; and
· the amendment made by item 67 applies in relation to years ending after the
commencement of that item.
Item 200 - Application - surrender of certificates
191. This item provides that the amendments made by item 74 relating to the surrender
of certificates applies to certificates created before or after commencement of that
item.
Item 201 - Application - relevant acquisitions of electricity
192. This item provides that the amendments made by items 81 and 84 apply to
remove a potential double liability in relation to acquisitions of electricity
occurring from the year commencing 1 January 2006 onwards.
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Item 202 - Saving - fees for surrender of certificates
193. This item clarifies that regulations in force for the purposes of subsection 44(5) of
the Act immediately before the commencement of this item have effect after the
commencement of this item as if they were regulations made for the purposes of
that subsection after that commencement.
Item 203 - Application - secrecy
194. This item provides that the amendments made by items 172, 173 and 174 apply in
relation to proceedings instituted after the commencement of these items.
Item 204 - Application - publication
195. This item provides that the amendment made by item 175 in relation to publishing
certain matters apply in relation to years ending after the commencement of that
item.
Item 205 - Application - register of accredited power stations
196. This item provides that the amendment made by item 178 applies in relation to
power stations accredited before or after the commencement of that item.
Item 206 - Transitional - accredited power stations
197. Because there are already a number of existing accredited power stations, it is
necessary to introduce some transitional arrangements which are inserted by this
item. The transitional arrangements that will apply in relation to an accredited
power station that was accredited under Division 3 of Part 2 of the Act before the
commencement of this item include:
· giving the Regulator a period of 28 days to approve, in writing, a nominated
person for each existing accredited power station. In this regard it should be
noted that the approved person must be a stakeholder in the accredited power
station;
· providing a definition of stakeholder for the purposes of this item; and
· clarifying that the Regulator's decision on this matter is reviewable. This
means that any other stakeholder in relation to that accredited power station
who has not been approved as the `nominated person' may request the
Regulator to review this decision.
Item 207 - Transitional - relevant acquisitions of electricity
198. This transitional provision and the application provision under item 201 do not
change the liability of an entity that has made a wholesale or notional wholesale
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acquisition of electricity in the years 2001 to 2005 (the applicable year).
199. However, if, after the application of this item, an entity which would not have
incurred a liability if the amendments under items 81 and 84 had applied to
acquisitions for the applicable year, and now have a carried forward surplus at the
end of the applicable year, the entity, or person, may write to the Regulator
requesting a reduction in the carried forward surplus and a reduction to the
renewable energy certificate shortfall of another person for the applicable year by
the corresponding amount.
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