RENEWABLE ENERGY (ELECTRICITY) AMENDMENT BILL 2009

i Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009

Contents

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

Commencement .................................................................................. 1

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

Schedule 1--Amendme nt of the Renewable Energy (Electricity)

Act 2000

Schedule 2--Partial exemptions from liability to charge

Renewable Energy (Electricity) Act 2000

Schedule 3--Amendme nts relating to the transition of State

rene wable energy target schemes

Part 1--Amendments relating to constitutional corporations

Renewable Energy (Electricity) Act 2000

Part 2--Transitional provisions

Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009 1

A Bill for an Act to amend the Renewable Energy

(Electricity) Act 2000, and for related purposes

The Parliament of Australia enacts:

1 Short title

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

Amendment Act 2009.

2 Commence ment

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day on which this Act receives the

Royal Assent.

2. Schedule 1

The day on which this Act receives the

Royal Assent.

3. Schedule 2

At the same time as section 3 of the Carbon

Pollution Reduction Scheme Act 2009

commences.

4. Schedule 3,

Part 1

A single day to be fixed by Proclamation.

However, if the provision(s) do not

commence before 1 July 2011, they

commence on that day.

5. Schedule 3,

item 3

The day after this Act receives the Royal

Assent.

6. Schedule 3,

item 4

1 February 2010.

1 February 2010

7. Schedule 3,

item 5

The day after this Act receives the Royal

Assent.

8. Schedule 3,

items 6 and 7

A single day to be fixed by Proclamation.

However, if any of the provision(s) do not

commence with in the period of 9 months

beginning on the day on which this Act

receives the Royal Assent, they commence

on the first day after the end of that period.

9. Schedule 3,

items 8 and 9

1 February 2010.

1 February 2010

Note:

This table relates only to the provisions of this Act as originally

passed by both Houses of the Parliament and assented to. It will not be

expanded to deal with provisions inserted in this Act after assent.

(2) Column 3 of the table contains additional information that is not

part of this Act. Information in this column may be added to or

edited in any published version of this Act.

Schedule 1 A mendment of the Renewab le Energy (Electricity) Act 2000

4 Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009

Schedule 1

Amendment of the Renewable

Energy (Electricity) Act 2000

1 Section 3

Omit:

(b) to reduce emissions of greenhouse gases; and

Substitute:

(b) to reduce emissions of greenhouse gases in the

electricity sector; and

2 Section 4

Omit "1 January 2021", substitute "1 January 2031".

3 Subsection 5(1)

Insert:

kW means kilowatt.

4 Section 23B

Before "The number", insert "(1)".

Note:

The following heading to new subsection 23B(1) is inserted "Number of certificates".

5 Section 23B

Before "each", insert "subject to subsection (2),".

6 At the end of section 23B

Add:

Regulations may multiply number of certificates

(2) The regulations may provide that, in the circumstances specified by

the regulations, the number of certificates that may be created in

relation to a small generation unit that is installed during a period

specified in column 1 of an item in the following table is to be

multiplied by the number specified in column 2 of the item.

Amend ment of the Renewab le Energy (Electricity) Act 2000 Schedule 1

Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009 5

Note:

The regulations may make provision in relation to the time at which a

small generation unit is taken to have been installed (see subsection

23A(2)).

Multiplier for certificates for small generation units

Item

Column 1

Period

Column 2

Number

9 June 2009 to 30 June 2010

1 Ju ly 2010 to 30 June 2011

1 Ju ly 2011 to 30 June 2012

1 Ju ly 2012 to 30 June 2013

1 Ju ly 2013 to 30 June 2014

1 Ju ly 2014 to 30 June 2015

(3) However, the regulations may provide for a number of certificates

to be multiplied only if the certificates relate to the first 1.5kW of

the rated power output of the small generation unit.

(4) For the purposes of this Act, a certificate created in accordance

with the regulations as mentioned in subsection (2) has a value of 1

MWh (even though the certificate does not actually represent 1

MWh).

7 Application of amendments of section 23B

The amendments made by items 4 to 6 apply to small generation units

installed on or after 9 June 2009.

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

Repeal the item, substitute:

2010

12500

2011

14400

2012

16300

2013

18200

2014

20100

2015

22000

2016

26600

2017

31200

2018

35800

Schedule 1 A mendment of the Renewab le Energy (Electricity) Act 2000

6 Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009

2019

40400

2020

45000

2021

45000

2022

45000

2023

45000

2024

45000

2025

45000

2026

45000

2027

45000

2028

45000

2029

45000

2030

45000

9 Section 162

Repeal the section, substitute:

162 Review of operation of rene wable energy legislation

(1) The Minister must cause an independent review of the operation of

the following to be undertaken as soon as practicable after

31 December 2013:

(a) this Act;

(b) the regulations;

(2) The review must be undertaken by a person who, in the Minister's

opinion, possesses appropriate qualifications to undertake the

review.

(3) The person undertaking the review must give the Minister a written

report of the review before 30 June 2014.

(4) The Minister must cause a copy of the report to be tabled in each

House of the Parliament within 15 sitting days of that House after

the day on which the report is given to the Minister.

(5) The report is not a legislative instrument.

Partial exemptions fro m liability to charge Schedule 2

Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009 7

Schedule 2

Partial exemptions from liability

to charge

Renewable Energy (Electricity) Act 2000

1 At the end of section 3

Add:

A partial exemption relating to one or more emissions-intensive

trade-exposed activities may be taken into account in working out a

liable entity's renewable energy certificate shortfall for a year. If it

is, it will reduce the renewable energy shortfall charge otherwise

payable.

2 Subsection 5(1)

Insert:

emissions-intensive trade-exposed activity means an activity that

is taken to be an emissions-intensive trade-exposed activity under

the emissions-intensive trade-exposed assistance program.

3 Subsection 5(1)

Insert:

emissions-intensive trade-exposed assistance program has the

same meaning as in the Carbon Pollution Reduction Scheme Act

2009.

4 Subsection 5(1)

Insert:

partial exemption, in relation to a liable entity, means a partial

exemption for a year, calculated under section 38B, that is used in

working out the entity's renewable energy certificate shortfall for

the year under section 38.

5 Subsection 5(1)

Insert:

Schedule 2 Partial exemptions fro m liab ility to charge

8 Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009

partial exemption certificate means a certificate issued under

section 46B.

6 Section 38 (method statement, after step 1)

Insert:

Step 1A. Subtract from the total electricity acquired the amount

of the liable entity's partial exemption for the year.

7 Section 38 (method statement, step 2)

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

8 After Division 1 of Part 4

Insert:

Division 1A--Partial exemption from liability to charge

38A Object

The object of this Division is to provide a partial exemption from

the renewable energy shortfall charge for liable entities in respect

of emissions-intensive trade-exposed activities.

38B Amount of partial exemption

The amount of a liable entity's partial exemption for a year is the

total, in MWh, of all amounts stated in partial exemption

certificates:

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

(b) included in the liable entity's energy acquisition statement

for the year.

38C Information about partial exemptions to be published on

Authority's website

(1) If a liable entity receives a partial exemption for a year, the

Authority must, before 1 October in the following year, publish on

its website:

(a) the name of the entity; and

Partial exemptions fro m liability to charge Schedule 2

Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009 9

(b) the value in dollars, estimated by the Authority, of the

amount of the entity's partial exemption for the year; and

is required by the regulations.

(2) The Authority must also publish on its website such other

information in relation to partial exemptions as is required by the

regulations.

(3) If a liable entity's partial exemption is later reduced or increased,

the Authority must correct the information on its website.

9 At the end of subsection 39(3)

Add:

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

10 Subsection 39(4) (formula)

Repeal the formula, substitute:

Total electricity

Total of all

Renewable

acquired under

partial exemptions

power percentage

relevant acquisitions

for the year,

for the year

during the year, in MWh

in MWh

11 Part 5 (heading)

Repeal the heading, substitute:

Part 5--Statements, certificates and assessments

12 After paragraph 44(2)(b)

Insert:

(ba) whether the liable entity wishes to claim a partial exemption

for the year; and

13 After paragraph 44(3)(a)

Insert:

(aa) if the liable entity wishes to claim a partial exemption for the

year--include:

(i) a copy of each partial exemption certificate issued to the

liable entity for the year in relation to an

Schedule 2 Partial exemptions fro m liab ility to charge

10 Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009

emissions-intensive trade-exposed activity carried on by

the liable entity during the year; and

(ii) for each partial exemption certificate issued to another

person in relation to the liable entity for the year and

given to the liable entity--a copy of each partial

exemption certificate; and

14 After Division 1 of Part 5

Insert:

Division 1A--Partial exemption certificates

46A Application for partial exemption certificate

(1) A prescribed person may apply to the Authority for a certificate (a

partial exemption certificate) for a year in relation to:

(a) an emissions-intensive trade-exposed activity which is, or is

to be, carried on at a site during the year; and

(b) either:

(i) a person who is, or will be, a liable entity from whom

electricity is, or will be, acquired for use at the site in

the activity; or

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

the prescribed person.

(2) The application must:

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

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

prescribed by the regulations; and

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

(3) The regulations may provide that information required to be

included in an application must be verified by statutory declaration.

46B Partial exemption certificates

(1) If an application is made under section 46A in respect of a year, the

Authority must issue the applicant with a partial exemption

certificate for the year that sets out, in relation to the liable entity

Partial exemptions fro m liability to charge Schedule 2

Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009 11

mentioned in the application (as referred to in paragraph

46A(1)(b)):

(a) the amount of the liable entity's partial exemption for the

year in relation to the emissions-intensive trade-exposed

activity and site mentioned in the application, calculated

according to a method prescribed by the regulations; and

(b) any other information prescribed by the regulations.

(2) The Authority must issue the certificate within the period

prescribed by the regulations.

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

instrument.

46C Amending partial exemption certificates

(1) The Authority may amend a partial exemption certificate if the

person to whom the certificate is issued requests, in writing, an

amendment.

(2) In deciding whether to amend a partial exemption certificate under

subsection (1), the Authority:

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

and

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

relevant.

(3) The Authority may also amend a partial exemption certificate on

its own initiative in circumstances prescribed by the regulations.

(4) If the Authority refuses to amend a partial exemption certificate

upon a request by a person, the Authority must notify the person

accordingly.

Note:

An amendment of a partial exemption certificate under this section

may also result in the Authority issuing an assessment under

section 48 or amending an assessment under section 49.

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

Insert:

to amend, or to refuse to

amend, a partial exemption

section 46C

the person to whom the

certificate is issued.

Schedule 2 Partial exemptions fro m liab ility to charge

12 Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009

certificate

16 Subsection 160(1)

Repeal the subsection, substitute:

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

(a) is a registered person; or

(b) is a liable entity; or

must keep records that record and explain all transactions and other

acts engaged in, or required to be engaged in, by the record-keeper

under this Act.

Note:

The heading to section 160 is altered by omitting "and liable entities" and substituting

", liable entities and holders of partial exemption certificates".

17 After subsection 160(3)

Insert:

(3A) The records kept by a person who has been issued with a partial

exemption certificate must include any documents relevant to

ascertaining:

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

(b) any other prescribed matter.

18 Paragraph 160(4)(b)

Repeal the paragraph, substitute:

(b) in the case of records kept by a liable entity--so that the

liable entity's liability under this Act can be readily

ascertained; and

with a partial exemption certificate--so that matters to which

the certificate relates can be readily ascertained.

19 Subsection 160(5)

Omit "registered person, or a liable entity,", substitute "record-keeper".

20 Subsection 160(6)

Omit "registered person or liable entity" (wherever occurring),

substitute "record-keeper".

Schedule 3 A mendments relating to the transition of State renewable energy target

schemes

Part 1 A mend ments relating to constitutional corporations

14 Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009

Schedule 3

Amendments relating to the

transition of State renewable energy

target schemes

Part 1

Amendments relating to constitutional

corporations

Renewable Energy (Electricity) Act 2000

1 Subsection 5(1)

Insert:

constitutional corporation means a corporation to which

paragraph 51(xx) of the Constitution applies.

2 At the end of Part 1

Add:

7B Constitutional basis

To the extent that this Act applies in relation to a constitutional

corporation, the operation of this Act is based on the following

legislative powers:

(a) the legislative power that the Commonwealth Parliament has

under paragraph 51(xx) of the Constitution;

(b) any other legislative power that the Commonwealth

Parliament has under the Constitution.

7C Immunity from State laws

A constitutional corporation need not comply with any law of a

State that substantially corresponds to this Act.

Amend ments relating to the transition of State renewable energy target schemes

Schedule 3

Transitional provisions Part 2

Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009 15

Part 2

Transitional provisions

3 Definitions

In this Part:

accredited power station has the same meaning as in the

Commonwealth Act.

Commonwealth Act means the Renewable Energy (Electricity) Act

2000.

Commonwealth regulator:

(a) at any time before section 3 of the Carbon Pollution

Reduction Scheme Act 2009 commences--means the

Regulator (within the meaning of the Commonwealth Act);

and

(b) at any time after the Carbon Pollution Reduction Scheme Act

2009 commences--means the Authority (within the meaning

of the Australian Climate Change Regulatory Authority Act

2009).

renewable energy certificate has the same meaning as in the

Commonwealth Act.

small generation unit has the same meaning as in the Commonwealth

Act.

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

Commonwealth Act.

State certificate means a certificate, created under a State Act, that is

substantially the same as a renewable energy certificate.

State regulator means a person or body appointed under a State Act that

has substantially the same kind of functions under the State Act as the

Commonwealth regulator has under the Commonwealth Act.

4 Continuation of existing accreditations

(1)

If a power station was, immediately before the day on which this item

commences, accredited under a State Act and not already accredited

under the Commonwealth Act:

(a) the power station is taken to be eligible for accreditation

under section 15 of the Commonwealth Act; and

(b) the Commonwealth regulator is taken to have made a

determination under paragraph 14(1)(a) of the

Schedule 3 A mendments relating to the transition of State renewable energy target

schemes

Part 2 Transitional provisions

16 Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009

Commonwealth Act that the components of the power station

(as accredited under the State Act) are to be taken to be a

power station for the purposes of the Commonwealth Act;

and

application for accreditation on the day on which this item

commences.

(2)

To avoid doubt, subsection 14(3) of the Commonwealth Act applies in

relation to an application mentioned in paragraph (1)(b) of this item.

(3)

If a person was, immediately before the day on which this item

commences, a nominated person for a power station under a State Act:

(a) the person is taken to be:

(i) a registered person (unless the person is already a

registered person under the Commonwealth Act); and

(ii) a nominated person for the power station;

under the Commonwealth Act on and after the day on which

this item commences; and

(b) the Commonwealth regulator is taken to have approved an

application for the person to be registered on the day on

which this item commences (unless the person is already a

registered person under the Commonwealth Act).

(4)

To avoid doubt, section 12 of the Commonwealth Act applies in relation

to an application mentioned in paragraph (3)(b) of this item as if the

person were the applicant.

5 Existing accreditations not to continue if notice given

A nominated person for a power station under a State Act may notify

the Commonwealth regulator, in writing by 30 November 2009, that

subitems 4(1) and (3) of this Schedule do not apply in relation to the

power station. A notice has effect accordingly.

6 Conversion of State certificates to renewable energy

certificates

(1)

If, before 15 May 2010, a State regulator for a State gives written notice

to the Commonwealth regulator that a State certificate has been

surrendered:

Amend ments relating to the transition of State renewable energy target schemes

Schedule 3

Transitional provisions Part 2

Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009 17

(a) under a provision of the State Act of the State that

substantially corresponds to section 28A of the

Commonwealth Act; and

(b) after 1 April 2010; and

then the Commonwealth regulator must, before 15 June 2010:

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

certificate; and

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

the Commonwealth Act.

(2)

If, on or after 15 May 2010 but before 2 November 2010, a State

regulator for a State gives written notice to the Commonwealth

regulator that a State certificate has been surrendered:

(a) under a provision of the State Act of the State that

substantially corresponds to section 28A of the

Commonwealth Act; and

(b) after 1 April 2010; and

then the Commonwealth regulator must, before 1 December 2010:

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

certificate; and

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

the Commonwealth Act.

(3)

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

(a) be in the prescribed form; and

(b) include any information prescribed by the regulations.

(4)

Despite subitems (1) and (2), a renewable energy certificate may only

be created for a State certificate once.

(5)

For the purposes of a renewable energy certificate created in respect of

a State certificate under subitem (1) or (2):

(a) the renewable energy certificate is treated as if it had been

created under a prescribed provision of the Commonwealth

Act; and

(b) the person who created the State certificate is treated as

having created the renewable energy certificate; and

Schedule 3 A mendments relating to the transition of State renewable energy target

schemes

Part 2 Transitional provisions

18 Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009

certificate, immediately before it was surrendered under the

State Act, is treated as the owner of the renewable energy

certificate.

(6)

Section 26 of the Commonwealth Act applies in relation to a renewable

energy certificate created under subitem (1) or (2) as if:

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

(b) the Commonwealth regulator had determined that the

renewable energy certificate is eligible for registration under

subsection (4); and

energy certificate as mentioned in subsection (4)--the owner

of the renewable energy certificate had created the certificate.

(7)

A renewable energy certificate created in respect of a State certificate

under subitem (1) or (2) is not a certificate for the purpose of

section 23F of the Commonwealth Act.

(8)

If a renewable energy certificate is created in respect of a State

certificate under subitem (1) or (2), the register of renewable energy

certificates maintained under section 135 of the Commonwealth Act

must also contain the year in which the State certificate was created.

Notice of conversion to be given by Commonwealth regulator

(9)

The Commonwealth regulator must notify, in writing, the following

persons that a renewable energy certificate has been created in respect

of a State certificate and registered under section 26 of the

Commonwealth Act:

(a) the creator of the State certificate;

(b) the relevant State regulator;

creator of the State certificate--the owner of the renewable

energy certificate.

(10)

The Commonwealth regulator must provide the notice as soon as

practicable after the renewable energy certificate has been registered

under section 26 of the Commonwealth Act.

7 No criminal liability for Commonwealth regulator

Amend ments relating to the transition of State renewable energy target schemes

Schedule 3

Transitional provisions Part 2

Renewable Energy (Electricity) Amendment Bill 2009 No. , 2009 19

Nothing in item 6 makes the Commonwealth regulator liable to be

prosecuted for an offence.

8 Renewable energy certificate must not be created if State

certificate created

Despite section 18 of the Commonwealth Act, a nominated person

(within the meaning of the Commonwealth Act) for an accredited power

station must not create a renewable energy certificate for any electricity

generated by the power station if a State certificate has been created in

relation to that electricity.

9 Transitional regulations

(1)

The Governor-General may make regulations prescribing matters:

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

(b) necessary or convenient to be prescribed for carrying out or

giving effect to this Part.

(2)

Without limiting subitem (1), regulations of a transitional nature may be

made in relation to the following matters:

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

(b) exemptions from fees payable under regulations;

created in relation to a small generation unit.

Commonwealth of Australia Bills

RENEWABLE ENERGY (ELECTRICITY) AMENDMENT BILL 2009