RENEWABLE ENERGY AMENDMENT (FEED-IN-TARIFF FOR ELECTRICITY) BILL 2010

i Renewable Energy Amendment (Feed-in-Tariff for Electricity) Bill 2010 No. , 2010

Contents

1 Short

title

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2 Commencement

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3 Schedule(s)

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4 Object

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Review of operation of Act ................................................................ 2

Schedule 1--Amendment of the Renewable Energy (Electricity)

Act 2000

Renewable Energy Amendment (Feed-in-Tariff for Electricity) Bill 2010 No. , 2010 1

A Bill for an Act to amend the Renewable Energy

(Electricity) Act 2000 to support the greater

commercialisation of renewable energy

technologies, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Renewable Energy Amendment

(Feed-in-Tariff for Electricity) Act 2010.

2 Commencement

This Act commences 28 days after the day on which it receives the

Royal Assent.

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3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

4 Object

The object of this Act is to support the commercialisation of a

broad range of prospective renewable energy technologies by:

(a) providing specifically tailored support for a range of

renewable energy technologies that are currently not

adequately assisted by the mandatory renewable energy

target;

(b) requiring electricity distributors to permit owners of both

small and large scale qualifying generators to supply the

electricity grid with electricity generated from selected

renewable energy sources;

generators after the commencement of this Act for the

renewable electricity which they produce after the

commencement of this Act from renewable energy sources;

(d) establishing an effective regime to monitor the extent of

production of renewable electricity by owners of qualifying

generators.

5 Review of operation of Act

(1) The Minister must cause to be prepared an independent report on

the operation of the amendments made by this Act for the period

beginning on the date of its commencement and ending on the next

30 June after that date, and for each subsequent 12 month period

ending on 30 June in a later year.

(2) If the day on which this Act commences is on or after 1 January in

a year, the report prepared under subsection (1) in relation to the

period from that day to 30 June in that year must be included in

and presented with the report prepared under subsection (1) for the

year beginning on 1 July next following the commencement of this

Act.

Renewable Energy Amendment (Feed-in-Tariff for Electricity) Bill 2010 No. , 2010

(3) The Minister must cause a copy of a report prepared under

subsection (1) to be laid before each House of the Parliament

within 5 sitting days of that House after the day on which he or she

receives the report.

(4) A report prepared under subsection (1) must include:

(a) details of total renewable energy produced from each source

listed in section 17 of the Renewable Energy (Electricity) Act

2000; and

(b) total payments made under the feed-in-tariff rate scheme in

accordance with section 34J of the Renewable Energy

(Electricity) Act 2000; and

Renewable Energy (Electricity) Feed-in-Tariff Levy Act

2008.

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Schedule 1--Amendment of the Renewable

Energy (Electricity) Act 2000

1 Paragraph 17(1)(j)

Repeal the paragraph.

2 After Part 3

Insert:

Part 3A--Acquisition of electricity from owners of

qualifying generators

34A Object of Part

The object of this Part is to support the commercialisation of a

broad range of prospective renewable energy technologies by:

(a) providing specifically tailored support for a range of

renewable energy technologies that are currently not

adequately assisted by the mandatory renewable energy

target;

(b) requiring electricity distributors to permit owners of both

small and large scale qualifying generators to supply the

electricity grid with electricity generated from selected

renewable energy sources;

generators after the commencement of this Part for the

renewable electricity which they produce after the

commencement of this Part from renewable energy sources;

(d) establishing an effective regime to monitor the extent of

production of renewable electricity by owners of qualifying

generators.

34B Definitions

In this Part:

direct customer means a person or company who:

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(a) is directly connected to an electricity distribution network

other than by means of the distribution system of the

electricity retailer; and

(b) satisfies other criteria (if any) prescribed by the regulations

for the purposes of this definition.

electricity distributor means:

(a) a company or other entity licensed for the distribution of

electricity through an electricity network; and

(b) in relation to an electricity connection service for premises--

a company or other entity licensed to provide the service for

the premises.

electricity retailer means a company or other entity that supplies

electricity to customers.

excluded network means an electricity distribution network that

supplies electricity to less than 10,000 retail customers.

feed-in-tariff rate scheme means the scheme established by

section 34F.

kWh means kilowatt hour.

qualifying generator means a renewable energy electricity

generator:

(a) that complies with the relevant Australian Standard; and

(b) that is connected to an electricity distribution network in a

manner that allows electricity generated by the renewable

energy electricity generator to be fed into the electricity

distribution network, other than where the electricity

distribution network is an excluded network; and

an eligible renewable energy source; and

(d) that forgoes participation in the mandatory renewable energy

target scheme; and

(e) for which an application for registration has been made in

accordance with section 34D after the commencement of the

Renewable Energy Amendment (Feed-in-Tariff for

Electricity) Act 2008.

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quarter means a period of 3 months commencing on 1 January,

1 April, 1 July or 1 October of a year.

quarterly return means a return for a period of 3 months

commencing on 1 January, 1 April, 1 July or 1 October of a year.

retail customer means a customer who:

(a) ordinarily acquires electricity primarily for domestic or

business use; and

(b) is not a direct customer; and

for the purposes of this definition.

34C Feeding-in of electricity to grid by owners of qualifying

generators

(1) Electricity distributors must, subject to compliance by the owner of

a qualifying generator with any relevant technical, safety or other

requirements imposed by or under this or any other Act or relevant

instrument, connect the qualifying generator to the grid and permit

the owner to feed into the grid electricity generated by the

qualifying generator.

(2) Electricity retailers must:

(a) purchase, on application in the prescribed form by an owner

of a qualifying generator connected to the grid in accordance

with subsection (1), any electricity fed into the grid by that

qualifying generator; and

(b) comply with any reporting requirements in this Act or that

are prescribed in the regulations.

(3) Payment for electricity purchased by an electricity retailer under

paragraph (2)(a) is to be made in accordance with section 34J or

34K, as the case may be.

(4) An owner of a qualifying generator who feeds into the grid in

accordance with subsection (1) must install a meter, of a type

prescribed by the regulations for the purposes of this subsection, to

measure the total amount of renewable electricity energy generated

by the qualifying generator.

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34D Registration of qualifying generators

The owner of a qualifying generator must apply in the prescribed

form for registration of the qualifying generator in the

Feed-in-Tariff Register established under section 34I.

34E Eligibility for payment or rebate of feed-in-tariff rate

(1) The owner of a qualifying generator who feeds into the grid

electricity generated by the qualifying generator is eligible to

receive payments or rebates of the feed-in-tariff rate in accordance

with section 34J or 34K, as the case may be, subject to:

(a) registration of the qualifying register under section 34D; and

(b) compliance with any relevant technical, safety or other

requirements imposed by or under this or any other Act or

relevant instrument.

(2) If a qualifying generator has been registered under section 34D and

included in the Feed-in-Tariff Register established under

section 34I and there is a change to the installed capacity of that

qualifying generator, the owner of the qualifying generator must

advise the Regulator, in the prescribed form, of the new installed

capacity of the qualifying generator.

34F Feed-in-tariff rate scheme

(1) The feed-in-tariff rate scheme is established by this section.

(2) The feed-in-tariff rate scheme is the payment under section 34J or

the rebate under section 34K of an amount to the owner of a

qualifying generator that is registered with the Regulator,

calculated by reference to:

(a) the relevant feed-in-tariff rate set by the Minister under

section 34G; and

(b) all the electricity produced by that qualifying generator, not

just the electricity which is fed into the electricity grid.

34G Feed-in-tariff rates

(1) The Minister must, within 28 days of the commencement of the

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2008, set the feed-in-tariff rates for qualifying generators that are

to be paid or rebated under the feed-in-tariff rate scheme in respect

of a qualifying generator that is registered for the first time during

the financial year in which that Act commences.

(2) The Minister must, by the end of each financial year:

(a) review the current feed-in-tariff rates for qualifying

generators, taking into account the following factors:

(i) the prospect of the technology reliably producing

competitively priced electricity by the end of the

calendar year 2020; and

(ii) the environmental cost or impact of the technology; and

(b) set the feed-in-tariff rates for qualifying generators that are to

be paid or rebated under the feed-in-tariff rate scheme in

respect of a qualifying generator that is registered for the first

time during the following financial year.

(3) In setting the feed-in-tariff rates in accordance with subsection (1)

or (2), the Minister may take into account:

(a) any Commonwealth, State or Territory government payments

or rebates already made or received in respect of a qualifying

generator; and

(b) the type of renewable energy technology used by the

qualifying generator; and

(d) the installed capacity of a qualifying generator.

(4) If the Minister has set the feed-in-tariff rates that are to apply for a

financial year, the Minister must not vary those rates during that

financial year.

(5) In setting the feed-in-tariff rates in accordance with subsection (2)

that are to apply for the following financial year, the Minister may

increase, vis-�-vis the current financial year feed-in-tariff rates, a

feed-in-tariff rate that is to apply during that following financial

year.

(6) Subject to section 34E, the relevant feed-in-tariff rate is payable or

rebateable to an owner of a qualifying generator for each kWh of

electricity generated by the qualifying generator during a billing

period.

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(7) In setting the feed-in-tariff rates in accordance with subsection (1)

or (2), the primary objective of the Minister is to support the

economic viability of a range of prospective renewable energy

technologies.

(8) If the Minister reduces a feed-in-tariff rate, the reduction must not

be more than 5 per cent of the rate that applied before the

reduction.

(9) A feed-in-tariff rate set under subsection (1) or (2) and payable or

rebateable to the owner of a qualifying generator at the date of the

registration of the qualifying generator is fixed and guaranteed for

a period of 20 years from the date of that registration. That period

of 20 years does not restart if the installed capacity of that

qualifying generator is increased at any time.

(10) The Minister must provide a statement explaining how the

feed-in-tariff rates are calculated and must table that statement in

both Houses of Parliament within 15 sitting days after the end of

each financial year.

(11) The feed-in-tariff rates set under subsections (1) and (2) are

legislative instruments for the purposes of the Legislative

Instruments Act 2003.

34H Feed-in-tariff levy rate

(1) The Minister must, within 28 days of the commencement of the

Renewable Energy Amendment (Feed-in-Tariff for Electricity) Act

2008, set the feed-in-tariff levy rate per MWh of electricity

acquired from the electricity grid, to fund payments under the

feed-in-tariff rate scheme in section 34F for that financial year. The

feed-in-tariff levy is imposed by the Renewable Energy

(Electricity) Feed-in-Tariff Levy Act 2008.

(2) The Minister must, by the end of each financial year, set a

feed-in-tariff levy rate per MWh of electricity acquired from the

electricity grid, to fund payments under the feed-in-tariff rate

scheme in section 34F for the following financial year. The

feed-in-tariff levy is imposed by the Renewable Energy

(Electricity) Feed-in-Tariff Levy Act 2008.

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(3) The Minister must ensure that the feed-in-tariff levy rate set in

accordance with subsection (1) or (2) is sufficient to cover the

estimated cost of payments under the feed-in-tariff rate scheme in

accordance with section 34J.

(4) The feed-in-tariff levy is payable by all electricity retailers and

direct customers, calculated by reference to the amount of

electricity acquired by an electricity retailer or a direct customer, as

the case may be, as set out in its annual energy acquisition

statement lodged under section 44.

Note:

The annual energy acquisition statement is used to calculate the

renewable energy shortfall charge of an electricity retailer or a direct

customer (a liable entity). The same statement is to be used to

calculate the amount of the feed-in-tariff levy.

(5) The Minister must provide a statement explaining how the

feed-in-tariff levy rate is calculated and must table that statement in

both Houses of Parliament within 5 sitting days after:

(a) in the case of the levy rate set under subsection (1)--setting

the rate; or

(b) in the case of a levy rate set under subsection (2)--the end of

each preceding financial year.

(6) The feed-in-tariff levy rates set under subsections (1) and (2) are

legislative instruments for the purposes of the Legislative

Instruments Act 2003.

34I Establishment of a Feed-in-Tariff Register

(1) The Regulator must establish a register to be known as the

Feed-in-Tariff Register (the Register).

(2) The Regulator must record in the Register:

(a) details of all qualifying generators for which an application

for registration has been made in accordance with

section 34D, including the name and address of the owner of

the qualifying generator, the date of registration of the

qualifying generator, the type of renewable energy

technology used by the qualifying generator and the installed

capacity of the qualifying generator; and

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(b) in the case of a qualifying generator with an installed

capacity equal to or greater than 1MW, the total amount of

electricity produced each quarter by that qualifying

generator, as notified in the quarterly return lodged under

subsection 34J(1); and

generator and the period for which the feed-in-tariff rate will

be paid; and

(d) if there is any change to the installed capacity of a qualifying

generator, the new installed capacity of the qualifying

generator.

(3) The Regulator must provide details of the amount of total

payments made under the feed-in-tariff scheme under

subsection 34J(2) for inclusion in the report prepared in accordance

with subsection 5(1) of the Renewable Energy Amendment

(Feed-in-Tariff for Electricity) Act 2008.

34J Feed-in-tariff rate payments--installed capacity equal to or

greater than 1MW

(1) The owner of a qualifying generator with an installed capacity

equal to or greater than 1MW must lodge with the Regulator within

15 days after the end of each quarter that ends after the date of

registration of the qualifying generator a quarterly return in the

prescribed form indicating the metered electricity produced by the

qualifying generator in respect of that quarter.

(2) The Regulator must make a payment, calculated in accordance

with the feed-in-tariff rate, to the owner of a qualifying generator

within 30 days of receiving from the owner a quarterly return

under subsection (1).

(3) Payments in accordance with subsection (2) are to be made from

money appropriated by the Parliament for that purpose.

34K Feed-in-tariff rate rebates--installed capacity less than 1MW

(1) The owner of a qualifying generator with an installed capacity less

than 1MW is entitled to payment for electricity purchased by an

electricity retailer under paragraph 34C(2)(a), in the form of a

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rebate against charges payable by the owner for the supply of

electricity by the electricity retailer to the owner.

(2) An electricity retailer must read a meter installed under

subsection 34C(4) by the owner of a qualifying generator at the

same time as the electricity retailer reads the meter for the supply

of electricity to the owner.

(3) The rebate under subsection (1) must be calculated in accordance

with the feed-in-tariff rate, and credited to the account of the owner

of the qualifying generator for a billing period on the same day as

any charge for the supply of electricity is debited against the

account for the billing period and before the account for the billing

period is sent to the owner of the qualifying generator.

(4) If the whole of an amount to be credited to the owner of a

qualifying generator under subsection (3) in a particular billing

period has not been set-off against the charges payable by the

owner for the supply of electricity by the expiration of 12 months

after the end of that billing period, the owner is entitled to the

payment of the outstanding balance.

Commonwealth of Australia Bills

RENEWABLE ENERGY AMENDMENT (FEED-IN-TARIFF FOR ELECTRICITY) BILL 2010