CLEAN ENERGY ACT 2011 (NO. 131, 2011) - SECT 116 Buy-back of certain free carbon units

CLEAN ENERGY ACT 2011 (NO. 131, 2011) - SECT 116

Scope

             (1)  This section applies if a person is the registered holder of one or more carbon units that:

                     (a)  were issued:

                              (i)  in accordance with the Jobs and Competitiveness Program; or

                             (ii)  in accordance with Part 8 (coal-fired electricity generation); and

                     (b)  have a vintage year that is a fixed charge year.

Buy-back

             (2)  During the period:

                     (a)  beginning at the start of 1 September in that fixed charge year; and

                     (b)  ending at the end of 1 February next following that fixed charge year;

the person may, by electronic notice transmitted to the Regulator, request the Regulator to cancel the unit or units in exchange for the payment to the person of the amount (the buy-back amount ) worked out using the formula:

where:

"fixed charge" means the per unit charge applicable under subsection 100(1) for the issue of a carbon unit with a vintage year of that fixed charge year.

             (3)  If the Regulator receives a request under subsection (2) from a person in relation to one or more carbon units, the Regulator must:

                     (a)  on a day ascertained in accordance with the regulations:

                              (i)  cancel the unit or units; and

                             (ii)  remove the entries for the unit or units from the person's Registry account in which there is an entry for the unit or units; and

                     (b)  on or as soon as practicable after that day, on behalf of the Commonwealth, pay the buy-back amount to the person.

             (4)  The Registry must set out a record of each cancellation under subsection (3).

             (5)  The Consolidated Revenue Fund is appropriated for the purposes of making payments under this section.