CLEAN ENERGY ACT 2011 (NO. 131, 2011) - SECT 161 Issue of free carbon units in respect of generation complexes
CLEAN ENERGY ACT 2011 (NO. 131, 2011) - SECT 161
Issue of free carbon units in respect of generation complexesScope
(1) This section applies to a generation complex if a certificate of eligibility for coal-fired generation assistance is in force in respect of the generation complex.
Issue of free units
(2) On each of the following days:
(a) 1 September in the eligible financial year beginning on 1 July 2013;
(b) 1 September in the eligible financial year beginning on 1 July 2015;
(c) 1 September in the eligible financial year beginning on 1 July 2016;
the Regulator must issue a number of free carbon units equal to the number worked out using the following formula:
where:
"annual assistance factor specified in the certificate" means the number specified in the certificate as the annual assistance factor in respect of the generation complex.
Note: The annual assistance factor is worked out under section 167.
"total annual assistance factors for that eligible financial year" means the total of the numbers specified as annual assistance factors in certificates of eligibility for coal-fired generation assistance issued, or purportedly issued, by the Regulator before 1 September in that eligible financial year. For this purpose, disregard a certificate if a decision to issue the certificate was set aside by a court or tribunal before 1 September in that eligible financial year.
(3) On 1 September in the eligible financial year beginning on 1 July 2014, the Regulator must issue a number of free carbon units equal to the number worked out using the following formula:
where:
"annual assistance factor specified in the certificate" means the number specified in the certificate as the annual assistance factor in respect of the generation complex.
Note: The annual assistance factor is worked out under section 167.
"total annual assistance factors for that eligible financial year" means the total of the numbers specified as annual assistance factors in certificates of eligibility for coal-fired generation assistance issued, or purportedly issued, by the Regulator before 1 September in that eligible financial year. For this purpose, disregard a certificate if a decision to issue the certificate was set aside by a court or tribunal before 1 September in that eligible financial year.
"A" means the total number of free carbon units issued in accordance with this Part before 1 September 2014 in respect of the generation complex.
"B" means the Regulator's reasonable estimate of the number of free carbon units with a vintage year beginning on 1 July 2013 that were not issued in accordance with this Part in respect of the generation complex because of:
(a) section 169 (power system reliability); or
(b) section 177 (Clean Energy Investment Plan); or
(c) section 181 (closure contracts).
(4) If the number worked out using the formula in subsection (2) or (3) is not a multiple of 100:
(a) the number is to be rounded to the nearest multiple of 100; and
(b) if the number is a multiple of 50--the number is to be rounded up to the nearest multiple of 100.
When units are to be issued
(5) If 1 September in a later eligible financial year is not a business day, the units are to be issued on the next business day after that 1 September.
Recipient of units
(6) Free carbon units issued in accordance with subsection (2) or (3) during an eligible financial year (the relevant eligible financial year ) are to be issued to whichever one of the following persons is applicable:
(a) if, assuming that:
(i) immediately before the end of the previous eligible financial year, the generation complex had been a facility; and
(ii) immediately before the end of the previous eligible financial year, the generation complex had been in operation; and
(iii) immediately before the end of the previous eligible financial year, greenhouse gases with a carbon dioxide equivalence of 25,000 tonnes had been emitted from the operation of the generation complex;
a person would, under section 20, be a liable entity for the previous eligible financial year wholly or partly as a result of those emissions of greenhouse gases--the person;
(b) if, assuming that:
(i) immediately before the end of the previous eligible financial year, the generation complex had been a facility; and
(ii) immediately before the end of the previous eligible financial year, the generation complex had been in operation; and
(iii) immediately before the end of the previous eligible financial year, greenhouse gases with a carbon dioxide equivalence of 25,000 tonnes had been emitted from the operation of the generation complex;
a person would, under section 22, be a liable entity for the previous eligible financial year wholly or partly as a result of those emissions of greenhouse gases--the person.
(7) However, if, assuming that:
(a) immediately before the end of the previous eligible financial year, the generation complex had been a facility; and
(b) immediately before the end of the previous eligible financial year, the generation complex had been in operation; and
(c) immediately before the end of the previous eligible financial year, greenhouse gases with a carbon dioxide equivalence of 25,000 tonnes had been emitted from the operation of the generation complex;
2 or more participants in a designated joint venture would, under section 21, be liable entities for the previous eligible financial year wholly or partly as a result of those emissions of greenhouse gases:
(d) subsection (6) does not apply to the free carbon units issued in accordance with subsection (2) or (3); and
(e) those units are to be divided among, and issued to, those participants in shares that represent their respective participating percentages.
Note: For participating percentage , see section 76 or 77.
(8) Free carbon units issued in accordance with subsection (2) or (3) during an eligible financial year are to have a vintage year of the eligible financial year.
(9) The Regulator must not issue a free carbon unit to a person in accordance with subsection (2) or (3) unless the person has a Registry account.
Power system reliability
(10) This section has effect subject to section 169.
Note: Section 169 deals with power system reliability.
Clean Energy Investment Plan
(11) This section has effect subject to section 177.
Note: Section 177 deals with Clean Energy Investment Plans.
Closure contract
(12) This section has effect subject to section 181.
Note: Section 181 deals with closure contracts.