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2013-2014-2015
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
RENEWABLE ENERGY (ELECTRICITY) AMENDMENT BILL 2015
EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Minister for the Environment, the Hon Greg Hunt MP)
Table of contents
Glossary .................................................................................................. 3
General outline and financial impact ....................................................... 4
Chapter 1 Annual legislated targets under the large-scale
component of the RET scheme .................................... 9
Chapter 2 Exemption certificates ................................................. 11
Chapter 3 Removal of requirement for periodic reviews of
renewable energy legislation ...................................... 16
Chapter 4 Wood waste ................................................................ 18
Chapter 5 Statement of compatibility with human rights.............. 21
Index ..................................................................................................... 22
Glossary
The following abbreviations and acronyms are used throughout this
explanatory memorandum.
Abbreviation Definition
The Authority The Climate Change Authority
The Bill Renewable Energy (Electricity) Amendment
Bill 2015
CCA Act The Climate Change Authority Act 2011
EITE Emissions-Intensive Trade-Exposed
GWh Gigawatt-hours
LRET Large-scale Renewable Energy Target
MWh Megawatt-hours
PEC Partial Exemption Certificate
REE Act The Renewable Energy (Electricity) Act 2000
REE Regulations The Renewable Energy (Electricity)
Regulations 2001
The Regulator The Clean Energy Regulator
RET Renewable Energy Target scheme
SRES Small-scale Renewable Energy Scheme
3
General outline and financial impact
Purpose and objective
The Renewable Energy (Electricity) Amendment Bill 2015 (the Bill)
amends the Renewable Energy (Electricity) Act 2000 (the REE Act) and
the Renewable Energy (Electricity) Regulations 2001 (the REE
Regulations) and makes consequential amendments to the Climate
Change Authority Act 2011 (the CCA Act). These amendments make
changes to the Renewable Energy Target (RET) scheme to better reflect
electricity market conditions, provide much-needed certainty to the
renewable energy industry and enable sustainable growth in renewable
electricity generation.
Background
The RET scheme
The RET allows renewable energy power stations and owners of small-
scale renewable energy systems to create certificates for each megawatt-
hour (MWh) of eligible renewable electricity they produce. Liable
entities (mainly electricity retailers) are obligated to purchase certificates
created by renewable electricity generators such as wind farms, solar
farms, hydroelectric power stations, rooftop solar panels and solar water
heaters. Certificates are surrendered annually to the Regulator to
demonstrate compliance with the RET and avoid payment of a shortfall
charge. This creates a market which provides financial incentives to
increase the generation of renewable electricity.
As stated in the REE Act, the objectives of the RET are to:
• encourage the additional generation of electricity from
renewable sources;
• reduce greenhouse gas emissions in the electricity sector; and
• ensure that renewable energy sources are ecologically
sustainable.
4
General outline and financial impact
History of the RET
The RET has been operating in various forms since it commenced in
2001. It was originally intended to achieve an additional two per cent of
renewable energy in the electricity generation mix by 2010.This was
expressed in the REE Act as a target of 9,500 gigawatt-hours (GWh) in
2010.
Commencing in 2010, the RET was expanded to ensure at least 20 per
cent of Australia‟s electricity comes from renewable sources by 2020. To
achieve this, annual targets were increased to peak at 45,000 GWh in
2020. The Solar Credits multiplier was introduced to boost support for
small-scale solar photovoltaic systems; and Partial Exemption Certificates
were introduced to provide assistance to Emissions Intensive Trade
Exposed (EITE) industries for the cost impact of the RET.
Since the beginning of 2011, the RET has separately supported large scale
renewable electricity projects such as wind and solar farms (the Large-
scale Renewable Energy Target (LRET)) and installations of small-scale
renewable energy systems such as rooftop solar (the Small-scale
Renewable Energy Scheme (SRES)). The annual targets under the LRET
were amended to rise to 41,000 GWh in 2020 and the uncapped SRES
was forecast to deliver at least 4,000 GWh by 2020.
2014 Expert Panel Review of the RET
In 2014, an independent expert panel chaired by Mr Dick Warburton AO
LVO, undertook a review of the operation, costs and benefits of the RET.
The panel‟s report reached several key conclusions:
• The RET had encouraged significant new renewable
electricity generation, which had almost doubled as a result
of the scheme;
• The economic landscape had changed significantly since the
expanded RET commenced in 2010. In particular, electricity
demand had been declining and forecasts for electricity
demand in 2020 were much lower. As a result, the RET was
contributing to a large surplus of electricity generation
capacity;
• The main rationale for the RET is to contribute to the
Government‟s emissions reductions targets in a cost-effective
manner, however the RET provides relatively high cost
emissions reductions; and
5
General outline and financial impact
• The renewable energy sector would benefit from a $22
billion cross-subsidy from 2014 until the end of the scheme,
on top of the $9.4 billion cross-subsidy received from 2001
to 2013.
The expert panel recommended that the RET should be scaled back and
provided the Government with options to amend the LRET and the SRES.
Following its consideration of the expert panel‟s report and subsequent
negotiations with the Opposition and cross bench senators, the
Government has decided to make changes to the RET scheme to better
reflect market conditions and to ensure renewable energy continues to
play a significant role in Australia‟s energy mix and in achieving
Australia‟s 2020 emissions target.
The changes include:
• Reducing the profile of annual targets under the Large scale
Renewable Energy Target (LRET) so that the 2020 target
becomes 33,000 GWh of renewable electricity.
• Introducing a full exemption for the electricity used in
emissions-intensive trade-exposed (EITE) activities to
replace the current partial exemption;
• Removing the requirement for legislated biennial reviews of
the RET; and
• Reinstating biomass from native forest wood waste as an
eligible source of renewable energy.
Outline of the Bill
This Bill amends the REE Act and REE Regulations and makes
consequential amendments to the CCA Act to implement the
Government‟s proposed changes to the RET. The Bill is set out in four
parts.
• Part 1 amends the required amount of renewable source
electricity (the annual legislated targets under the large-scale
component of the RET scheme) for each year until 2030.
• Part 2 amends the framework of partial exemptions (from
RET liability) for electricity used in undertaking EITE
activities to provide a clear power for the REE Regulations to
provide full exemptions for this electricity.
6
General outline and financial impact
• Part 3 repeals the requirement for periodic reviews of the
operation of the Act. It includes a consequential amendment
to the CCA Act.
• Part 4 amends the REE Regulations to reinstate native forest
wood waste as an eligible renewable source, under the same
conditions that existed prior to its removal from eligibility in
2011.
Date of effect
The Bill will commence on the day after the Bill receives the Royal
Assent.
Proposal announced
On 22 October 2014, following Government consideration of the findings
of the 2014 Expert Panel Review, the Minister for the Environment, the
Hon Greg Hunt MP and the Minister for Industry and Science, the Hon
Ian Macfarlane MP jointly announced the Government‟s proposal to
reform the RET scheme. Negotiations with the Opposition commenced at
this point and an agreed position was jointly announced on 18 May 2015.
Financial impact
The financial impacts of the reforms to the RET scheme have not yet been
finalised, but are expected to be minor.
Human rights implications
The Bill does not raise any human rights issue. See Statement of
Compatibility with Human Rights (see Chapter 5).
Summary of regulation impact statement
The report of the 2014 Expert Panel Review of the RET scheme, entitled
Renewable Energy Target Scheme - Report of the Expert Panel, has been
certified as meeting the requirements of a Regulation Impact Statement
for the purposes of the Bill. The Office of Best Practice Regulation
reference is 16961.
7
General outline and financial impact
Compliance cost impact
The Department of the Environment has assessed that the amendments in
the Bill will result in an average of $519.6 million per annum in
regulatory cost savings as indicated in the table below.
Change in average annual regulatory costs (from business as
usual)
Change in Business Individuals Community Total
costs Organisations change
($million) ($million)
Total, by ($519.6) $0 $0 ($519.6)
sector
8
Chapter 1
Annual legislated targets under the large-
scale component of the RET scheme
Summary of new law
1.1 Part 1 of Schedule 1 of the Bill amends the profile of annual
targets under the large-scale component of the RET scheme to include a
33,000 GWh target for 2020, and to remove now redundant provisions
relating to target allocations for electricity generation using waste coal
mine gas.
Context of amendments
1.2 The large-scale component of the RET scheme features a profile
of legislated annual targets out to 2030 for additional renewables-based
electricity (section 40 of the REE Act). These targets increase to 41,000
GWh in 2020 and are maintained at this level until the scheme ends in
2030.
1.3 The REE Act places a legal obligation on liable entities to
collectively purchase and surrender sufficient large-scale generation
certificates (each worth one MWh) to meet these annual targets. The task
of meeting the targets is shared across all liable entities in proportion to
their purchases of RET-liable wholesale electricity.
1.4 The revenue from the sale of these certificates to liable entities
helps make new renewable energy projects viable. Liable entities pass on
the costs of purchasing these certificates to households and businesses
through higher electricity bills.
1.5 The Government has decided to amend the target profile to be
based on a 2020 target of 33,000 GWh rather than 41,000 GWh to better
reflect electricity market conditions, while continuing to support the
uptake of large-scale renewable electricity.
1.6 Since 2012, the annual legislated targets have also included a
small allocation of non-renewable generation using waste coal mine gas.
The total allocation is capped at 850 GWh per year and only applies until
2020. The annual targets are effectively increased by 850 GWh to
9
Annual legislated targets
accommodate waste coal mine gas fired generation without displacing
renewable energy under the RET.
1.7 Prior to commencement of this Bill, the table in subsection 40(1)
has included the annual renewable energy target profile, while subsections
40(2) to 40(5) have established the additional target allocation able to be
met by generation using waste coal mine gas.
Detailed explanation of new law
1.8 The Bill adjust the required GWh of renewable source electricity
in each year from 2016 to 2030, providing a new set of annual targets
which provide a smooth transition to 33,000 GWh of renewable source
electricity in 2020. This level is maintained until 2030. [Schedule 1, items 1
and 2]
1.9 The Bill repeals subsections 40(2) to 40(5) which are redundant
as the adjustments they make to the legislated targets from 2012 to 2020
to include the waste coal mine gas allocation have now been incorporated
into the table in subsection 40(1). For example, the amended target for
2020 in the table is 33,850 GWh, including 850 GWh for generation using
waste coal mine gas. [Schedule 1, item 3]
1.10 The Bill also repeals subsections 40(1A) and (1B), which
redistributed pre-2020 targets to reduce surplus certificates, as they are
now redundant. The targets for 2012 and 2013 were amended as required
and the Government‟s decision to amend the targets has rendered the
previous requirement to adjust the future targets for 2016 to 2019
redundant. [Schedule 1, item 3]
1.11 A note in the Bill indicates that in the interests of completeness,
the required GWh amounts for 2012 to 2015 in the table in subsection
40(1) reflect the adjusting effects of the waste coal mine gas allocation
and redistribution of pre-2020 targets to reduce the certificate surplus.
[Schedule 1, item 3]
10
Chapter 2
Exemption certificates
Outline of chapter
2.1 Part 2 of Schedule 1 to the Bill would amend the REE Act to
provide for full exemptions from RET liability in respect of electricity
used in carrying out the activities prescribed as EITE in the REE
Regulations.
Context of amendments
2.2 The REE Act provides the legislative framework for the
provision of partial exemptions from RET liability, while the REE
Regulations prescribe the eligible activities and processes for applying for,
issuing and amending partial exemptions, including the methodology for
calculating the amounts of these partial exemptions.
2.3 Under the REE Act, partial exemption is provided in the form of
a PEC issued by the CER to a business conducting a prescribed EITE
activity. Each PEC represents an amount of electricity, in MWh, to which
RET liability will not apply in a given year. An EITE business can
exchange this PEC with its RET-liable electricity retailer in return for
partial relief from the pass-through of RET costs.
2.4 Each February, as part of the annual reporting and surrender
process, the RET-liable retailer reduces its liability by surrendering (to the
Regulator) the PECs it received from its EITE electricity customers for
the prior year‟s electricity supply.
2.5 The REE Regulations currently stipulate that electricity used in
activities defined as „highly emission-intensive‟ is exempted at a 90 per
cent rate whereas electricity used in activities defined as „moderately
emissions-intensive‟ is exempted at a 60 per cent rate.
2.6 These rates of partial exemption only apply to the additional
RET liability flowing from the expansion of the scheme in 2009,
effectively reducing the actual level of partial exemption below the 60 per
cent or 90 per cent levels. For example, in 2013 the actual exemption
level was around 75 per cent for a highly emissions-intensive activity and
around 50 per cent for a moderately emissions-intensive activity.
11
Exemption certificates
2.7 For administrative simplicity - in particular, to streamline
reporting requirements across climate policy measures - the REE
Regulations base the amount of exemption on a business‟s reported annual
production of the activity output (for example tonnes of aluminium) and
the electricity intensity baseline (in megawatt-hours of electricity
consumed per unit of activity output). A single electricity intensity
baseline is set for each activity which represents the average across all of
the individual instances of that activity. This means that in reality most
businesses will receive either more or less than the calculated (theoretical)
percentage level of partial exemption.
2.8 To ease pressure on businesses undertaking EITE activities and
improve the competitiveness of Australian industry, the Government has
decided to increase the rate of exemption for all EITE activities, whether
highly or moderately emissions-intensive, to 100 per cent as applied to the
total RET liability.
Summary of new law
2.9 The new law will empower the REE Regulations to prescribe
full exemptions by removing the word „partial‟ wherever it appears in the
REE Act.
2.10 It is intended that as soon as practicable following passage of the
Bill the REE Regulations will be amended to complete implementation of
100 per cent exemptions for all EITE activities.
2.11 The Bill provides for full exemptions to apply in respect of the
whole of the current compliance year (2015) as well as for all subsequent
years.
2.12 The averaging process described above for establishing the
electricity intensity baseline for an EITE activity was based on data from
July 2006 to June 2008 and there have been changes in industry structure
and operation since that time. While not a significant issue in the current
context of partial exemptions, these factors mean that with full
exemptions there is a risk of some EITE firms receiving assistance that
exceeds the cost impact of the RET on these EITE activities. The
Government will consult on the detail of regulations to address this risk.
2.13 Consequently, the Bill provides for the REE Regulations to be
more flexible than is currently the case in terms of how they may
characterise or describe the amount of an exemption certificate.
12
Exemption certificates
2.14 As the Regulator is expected to have issued many, if not all, of
the PECs for the 2015 compliance year by the time passage of the Bill is
complete, the Bill includes transitional provisions to require the CER to
revoke and reissue the 2015 PECs (which become exemption certificates)
in accordance with the amended REE Regulations.
2.15 As a result of increasing exemptions for EITE activities, there
will be fewer LGCs surrendered to meet the 2015 target than would
otherwise have been required, putting upward pressure on the surplus of
LGCs in the market. However, this difference will be taken into account
under paragraph 39(3)(c) and subparagraph 40A(3)(d)(iii) in setting the
2016 obligations.
Detailed explanation of new law
2.16 The Bill makes amendments to omit the word „partial‟, thereby
providing a clear power for the REE Regulations to provide full
exemptions from RET liability for the electricity used in undertaking the
prescribed EITE activities. [Schedule 1, items 4, 9 to 12, 14 to 26, and 29 to 36]
2.17 The Bill amends subsection 5(1) of the REE Act to remove
redundant references to the Carbon Pollution Reduction Scheme and the
associated EITE assistance program, and to clarify that an emissions-
intensive trade-exposed activity is an activity prescribed by regulations
made for the purposes of this definition. [Schedule 1, items 5 to 6]
2.18 The Bill amends subsection 5(1) of the REE Act to remove
„partial exemption‟ and „partial exemption certificate‟ as definitions under
the REE Act and instead define „exemption‟ and „exemption certificate‟ in
the same terms as formerly used for „partial exemption‟ and „partial
exemption certificate‟, to clarify that a full exemption can be provided.
[Schedule 1, items 7 to 8]
2.19 The Bill amends sections 38A and 38B of the Act to omit the
word „partial‟, enabling full exemptions to be provided. This item also
defines an exemption amount in an exemption certificate as the amount
specified or described in the certificate as being the amount of the liable
entity‟s exemption. This definition works with items 27 and 28 to provide
the flexibility for an exemption certificate to specify either a quantitative
amount of exemption in MWh or to describe a method for quantifying the
exemption. [Schedule 1, item 13]
2.20 The Bill amends the effect of section 46B (which deals with the
supply of exemption certificates) by removing the word „partial‟ wherever
it occurs. These items also extend the way in which the amount of an
13
Exemption certificates
exemption can be represented on an exemption certificate. In particular,
paragraph (b) of new subsection 46B(4) prescribes that an exemption
certificate may either directly quantify the amount of an exemption or
alternatively describe the amount in some other manner, for example by
setting out a method for quantifying the amount. [Schedule 1, items 27 to 28]
2.21 It is intended that this additional flexibility would empower
regulations to effectively limit the potential for an exemption to be
provided in respect of a particular EITE activity (at a particular site) that
exceeds the amount of electricity consumed in undertaking that activity.
2.22 Item 18 removes the references to „partial‟ in the provisions
which relate to the calculation of the renewable power percentage and
small-scale technology percentage. These changes allow the additional
total amount of exemptions provided in 2015 to be taken into account in
determining the 2016 renewable power percentage and small-scale
technology percentage. [Schedule 1, item 18]
Application and transitional provisions
2.23 The Bill includes transitional provisions to ensure that full
exemptions from RET liability can be provided for all electricity
consumed in undertaking EITE activities in 2015. The Bill requires that
the Regulator must amend all PECs already issued for the current (2015)
compliance year in accordance with the REE Regulations as amended to
complete the implementation of full exemptions for EITE activities. To
make this amendment, the Regulator will revoke the PECs and reissue
exemption certificates providing full exemptions as soon as practicable
after the necessary regulatory amendments are put in place to the
prescribed person to whom the original partial exemption certificate was
issued. If the prescribed person is not the liable entity, they will need to
provide the reissued exemption certificate to the relevant liable entity for
that entity to include a copy in its annual energy acquisition statement.
[Schedule 1, item 37]
2.24 The Bill also ensures that neither the provisions of the Bill, nor
the follow-on regulations to complete the implementation of full
exemptions, can affect the validity nor effectiveness of the PECs issued
before the commencement of the follow-on regulations. However, this
provision is subject to the revocation and reissue of the exemption
certificates in item 37(2) described above. [Schedule 1, item 37]
2.25 The Bill includes saving provisions to ensure that regulations in
force immediately before the commencement of particular amendments
made by the Bill operate after that commencement as if they had been
14
Exemption certificates
made for the purpose of the respective provision as amended. These
particular amendments relate to: the definition of the meaning of an EITE
activity (subsection 5(1)); the specification of the amount of a liable
entity‟s exemption (paragraph 46B(1)(a)); and the prescription of other
information that must be on an exemption certificate (paragraph
46B(1)(b)). [Schedule 1, item 38]
15
Chapter 3
Removal of requirement for periodic
reviews of renewable energy legislation
Outline of chapter
3.1 Part 3 of Schedule 1 to the Bill removes the requirement for
periodic reviews of the operation of the REE Act and subordinate
legislation that establish the RET scheme.
Context of amendments
3.2 A legislative requirement has existed for the Climate Change
Authority (the Authority) to conduct a review of the operation of the
REE Act and subordinate legislation every two years.
3.3 The Authority has complied with this requirement by
undertaking reviews in 2012 and 2014.
3.4 To provide greater certainty for project developers, investors and
energy users, regular reviews of the operation of the REE Act are being
abolished.
3.5 A lack of timely investment in renewable energy capacity to
meet the new targets could impose additional costs on electricity users.
To help to manage this risk, the Regulator will prepare an annual
statement on the progress of the RET scheme towards meeting the new
targets and the impact it is having on household electricity bills.
Detailed explanation of new law
3.6 The Bill repeals section 162 of the REE Act, removing the
obligation for the Authority to conduct periodic reviews of the REE Act
and subordinate legislation. [Schedule 1, item 39]
16
Removal of periodic reviews
Consequential amendments
3.7 The Bill removes references to the REE Act from the CCA Act,
rescinding the Authority‟s obligation to perform a periodic review of the
operation of the REE Act and subordinate legislation. [Schedule 1,
items 40 to 41]
Application and transitional provisions
3.8 The Bill rescinds the obligation for the Climate Change Minister
to ensure directions given to the Authority have regard to the objects of
the REE Act. [Schedule 1, items 42 to 43]
3.9 The Bill removes the limited exemption from liability for
damages for the Authority and related persons in regard to damages
occurring, or purported to occur, as a result of a RET review or related
matter done, or omitted to be done, in good faith and consistent with the
requirement to conduct periodic reviews of the operation of renewable
energy legislation. [Schedule 1, items 44 to 45]
3.10 The Bill allows any review or related matter done, or omitted to
be done, by the Authority before the enactment of the Bill, in good faith
and consistent with the previous requirement to conduct reviews of the
operation of the RET legislation, to continue to be exempt from liability
for damages. [Schedule 1, item 46]
17
Chapter 4
Wood waste
Outline of chapter
4.1 Part 4 of Schedule 1 to the Bill amends the REE Regulations to
allow certain native forest wood waste to be an eligible renewable energy
source, consistent with requirements in place before November 2011.
Context of amendments
4.2 Wood waste has been an eligible renewable energy source under
the REE Act since it was first passed by Parliament. The first regulations
under the REE Act set out a number of tests relating to native forest wood
waste to limit the risk of the REE Act having adverse impacts on our
native forests. These tests were refined in 2007, but retained their original
focus to ensure that eligibility under the RET did not lead to additional
logging of native forests.
4.3 In 2011, the REE Regulations were amended to remove the
eligibility of native forest wood waste, with some transitional
arrangements put in place for existing power stations using native forest
wood waste.
4.4 The amendments in Part 4 of Schedule 1 of the Bill reinstate
native forest wood waste as an eligible renewable energy source with the
constraints that operated under the scheme up until November 2011.
Summary of new law
4.5 The REE Regulations will no longer exclude native forest
biomass from sawmill residue, manufacturing operations or harvesting
which meets a number of integrity requirements. In particular, the
harvesting must not be primarily for electricity generation; the biomass
must be a genuine by-product or waste product of a legal operation; and
relevant regional forest agreement requirements must be met.
18
Wood waste
4.6 Wood waste meeting these requirements will be an eligible
energy source, enabling large-scale generation certificates to be created
under the Act for electricity generated using this source.
Detailed explanation of new law
4.7 The Bill amends paragraph 8(b) of the REE Regulations so that
it no longer excludes native forest wood waste, consistent with the
operation of this paragraph before November 2011. Accordingly, a
manufactured wood product or by-product of a manufacturing process
which originally came from a native forest is an eligible renewable energy
source. [Schedule 1, item 48]
4.8 The Bill amends paragraph 8(d) of the REE Regulations so that
it no longer excludes native forest wood waste, consistent with the
operation of this paragraph before November 2011. Accordingly, sawmill
residue which originally came from a native forest is an eligible
renewable energy source. [Schedule 1, item 49]
4.9 The Bill reintroduces a general provision to include as an
eligible energy source wood waste biomass from native forests consistent
with the protections previously provided in the REE Regulations as they
existed before November 2011 [Schedule 1, items 50 to 51]. Importantly:
• the biomass must have been harvested primarily for a
purpose other than biomass for energy production;
• the biomass must either be a by-product or waste product of
the harvesting operation approved under relevant
Commonwealth, State or Territory planning and approval
processes that meets the high-value test or a by-product
(including thinnings and coppicing) of a harvesting operation
that is carried out in accordance with ecologically sustainable
forest management principles; and
• the biomass must meet ecologically sustainable forest
management principles in a regional forest agreement, or if
no regional forest agreement is in place, meet equivalent
principles to the satisfaction of the Minister.
4.10 The high-value test ensures that the primary purpose of the
operation is production of sawlogs, veneer, poles, piles, girders, wood for
carpentry or craft uses, or oil products such that the financial value of
these products is higher than the total financial value of other products of
the harvesting operation.
19
Wood waste
4.11 As a result of these amendments, the text of REE Regulation 8
will be exactly the same as the text that was in force before November
2011 and is intended to be interpreted consistently with its previous
operation.
4.12 The Bill inserts a "(1)" in front of regulation 8 so that it becomes
subsection (1) of the amended regulation 8. [Schedule 1, item 47]
Application and transitional provisions
4.13 This revised definition will apply to all electricity generation
which occurs after the commencement of the Bill. This includes
electricity generators subject to the transitional provisions of the
regulations made in November 2011. [Schedule 1, item 52]
20
Chapter 5
Statement of compatibility with human
rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011
Renewable Energy (Electricity) Amendment Bill 2015
The Bill is compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the Human
Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
The Bill amends the REE Act and makes consequential amendments to
the CCA Act to recalibrate and reform the RET to better reflect electricity
market conditions, provide certainty to industry and enable sustainable
growth in renewable electricity generation.
In particular, the Bill will adjust the profile of annual renewable
generation targets so that the target reaches 33,000 GWh in 2020 and is
maintained at 33,000 GWh from 2021 to 2030. It will also: increase
assistance for emissions-intensive trade-exposed activities to a full
exemption for the electricity used in these activities; reinstate native forest
wood waste as an eligible source of renewable energy, subject to
conditions; and, remove the statutory requirement for biennial reviews of
the RET by the Climate Change Authority.
Human rights implications
The Bill does not engage any of the applicable rights or freedoms.
Conclusion
The Bill is compatible with human rights as it does not raise any human
rights issues.
Minister for the Environment, the Hon Greg Hunt MP
21
Index
Schedule 1: Renewable Energy (Electricity) Amendment Bill
2015 items
Bill reference Paragraph number
Items 1 and 2 1.8
Item 3 1.9, 1.10, 1.11
Items 4, 9 to 12, 14 to 26, and 29 to 36 2.16
Items 5 to 6 2.17
Items 7 to 8 2.18
Item 13 2.19
Item 18 2.22
Items 27 to 28 2.20
Item 37 2.23, 2.24
Item 38 2.25
Item 39 3.6
Items 40 to 41 3.7
Items 42 to 43 3.8
Items 44 to 45 3.9
Item 46 3.10
Item 47 4.12
Item 48 4.7
Item 49 4.8
Items 50 to 51 4.9
Item 52 4.13
22