CLEAN ENERGY ACT 2011 (NO. 131, 2011) - SECT 172 Nomination of generation units

CLEAN ENERGY ACT 2011 (NO. 131, 2011) - SECT 172

Scope

             (1)  This section applies to a generation unit if:

                     (a)  a person (the first person ) who owns, controls or operates the generation unit is registered as a generator in respect of the generation unit under a law of the Commonwealth, a State or a Territory relating to the regulation of energy markets; and

                     (b)  the generation unit was first registered under the law on or after 1 July 2011; and

                     (c)  when the generation unit was first registered under the law, the first person was registered in respect of the generation unit under the law; and

                     (d)  if a project to construct and commission the generation unit was in existence as at the start of 1 July 2011--the project was not fully committed by the project proponent as at the start of 1 July 2011, having regard to the following matters:

                              (i)  the project proponent's rights to land for the construction of the project;

                             (ii)  whether contracts for the supply and construction of the project's major plant or equipment (including contract provisions for project cancellations) were executed;

                            (iii)  the status of all planning and construction approvals and licences necessary for the commencement of construction of the project (including completed and approved environmental impact statements);

                            (iv)  the level of commitment to financing arrangements for the project;

                             (v)  whether project construction had commenced before 1 July 2011;

                            (vi)  whether, as at the start of 1 July 2011, a firm date had been set for project construction to commence; and

                     (e)  the generation unit has output that:

                              (i)  is readily predictable; and

                             (ii)  is not significantly dependent on factors beyond the control of the operator; and

                      (f)  the likely emissions intensity of the generation unit during the 2-year period beginning when the generation unit enters service does not exceed 0.80; and

                     (g)  the requirements (if any) set out in the regulations are met.

Nomination of generation unit

             (2)  The first person may, by written notice given to the Regulator, nominate the generation unit for the purposes of the application of section 171 to a specified generation complex.

             (3)  A nomination must be accompanied by a report that complies with subsection (4).

             (4)  A report complies with this subsection if:

                     (a)  the report is by a person who has appropriate engineering qualifications; and

                     (b)  the report sets out the person's estimate of the likely emissions intensity of the generation unit during the 2-year period beginning when the generation unit enters service; and

                     (c)  the person does not have an interest, pecuniary or otherwise, in the outcome of the nomination.

             (5)  A nomination cannot be withdrawn.

             (6)  The first person is not entitled to nominate the generation unit if the generation unit has already been nominated under this section (whether by the first person or by another person).

Emissions intensity

             (7)  For the purposes of subsection (1), the likely emissions intensity of a generation unit during the 2-year period beginning when the generation unit enters service is the number that, in the opinion of the Regulator, should be treated as the likely emissions intensity of the generation unit during that 2-year period, having regard to the following matters:

                     (a)  any documents relating to the design of the generation unit;

                     (b)  if the generation unit has entered service--the number worked out using the formula set out in subsection (8);

                     (c)  the report mentioned in subsection (3);

                     (d)  such other matters (if any) as the Regulator considers relevant.

             (8)  The formula mentioned in paragraph (7)(b) is:

where:

"carbon dioxide equivalence of emissions" means the total number of kilotonnes of the carbon dioxide equivalence of the greenhouse gases emitted from the combustion of fuel in the generation unit for the purposes of the generation of electricity during the period when the generation unit was in service.

"gigawatt hours of electricity generated" means the number of gigawatt hours of electricity generated by the generation unit during the period when the generation complex was in service, as measured at all generator terminals of the generation unit.

When generation unit enters service

             (9)  For the purposes of this section, a generation unit enters service when the unit is first dispatched to deliver electricity by the appropriate energy market operator.