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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Electricity Industry (Western Australian
Renewable Energy Targets) Amendment Bill
2005
CONTENTS
Part 1 Preliminary
1. Short title 2
2. Commencement 2
3. The Act amended 2
Part 2 Amendment of Electricity
Industry Act 2004
4. Section 3 amended 3
5. Sections 14A to 14D inserted 3
14A. Licence condition: Western Australian
renewable energy target 3
14B. Licence condition: Renewable energy
statement 4
14C. Reduction of renewable energy target by
Authority 5
14D. Meaning of "renewable energy" 6
6. Section 32 amended 11
7. Section 33 amended 13
8. Section 134 added 13
134. Review of sections 13
97--1 page i
Western Australia
LEGISLATIVE COUNCIL
(Introduced by Paul Llewellyn)
Electricity Industry (Western Australian
Renewable Energy Targets) Amendment Bill
2005
A Bill for
An Act to amend the Electricity Industry Act 2004 to impose as a
condition of holding a retail licence to sell electricity in the South
West interconnected system an obligation to acquire target levels of
electricity generated from renewable energy sources.
The Parliament of Western Australia enacts as follows:
page 1
Electricity Industry (Western Australian Renewable Energy Targets)
Amendment Bill 2005
Part 1 Preliminary
s. 1
Part 1 Preliminary
1. Short title
This is the Electricity Industry (Western Australian Renewable
Energy Targets) Amendment Act 2005.
5 2. Commencement
This Act comes into operation on a day fixed by proclamation.
3. The Act amended
The amendments in this Part are to the Electricity Industry
Act 2004.
page 2
Electricity Industry (Western Australian Renewable Energy Targets)
Amendment Bill 2005
Amendment of Electricity Industry Act 2004 Part 2
s. 4
Part 2 Amendment of Electricity Industry Act 2004
4. Section 3 amended
Section 3 is amended by inserting after the definition of
"relevant corporation" --
5 "
"renewable electricity percentage" means the percentage
applicable in any year referred to in section 14A(3);
"renewable energy target" means a target referred to in
section 14A(2);
10 ".
5. Sections 14A to 14D inserted
After section 14 the following sections are inserted
"
14A. Licence condition: Western Australian renewable
15 energy target
(1) It is a condition of every retail licence to sell electricity
in the South West interconnected system that the
licensee must, in each year in which the licensee holds
a licence, acquire an amount of electricity from
20 renewable energy sources that equals or exceeds the
licensee's renewable energy target for that year.
(2) The renewable energy target for each holder of a retail
licence is an amount of electricity, in megawatt hours,
calculated by multiplying the electricity acquired in the
25 year by the licensee within the South West
interconnected system by the renewable electricity
percentage for that year and rounding to the nearest
megawatt hour (rounding 0.5 up) unless adjusted in
respect of a relevant corporation by the Authority
30 under section 14C.
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Electricity Industry (Western Australian Renewable Energy Targets)
Amendment Bill 2005
Part 2 Amendment of Electricity Industry Act 2004
s. 5
(3) The renewable electricity percentage for a year is the
percentage adjacent to that year in the following table:
Year Percentage (%)
2008 6.0
2009 7.2
2010 8.3
2011 9.5
2012 10.7
2013 11.8
2014 13.0
2015 14.2
2016 15.3
2017 16.5
2018 17.7
2019 18.8
2020 and 20.0
subsequent years
(4) This section applies to the year commencing on
1 January 2008 and to all subsequent years.
5 14B. Licence condition: Renewable energy statement
It is a condition of every retail licence to which
section 14A applies that the licensee must, as soon as is
practicable after December 31 of each year, submit to
the Authority a renewable energy statement for the
10 year containing the following information:
(a) the amount, in megawatt hours, of electricity
acquired by the licensee;
page 4
Electricity Industry (Western Australian Renewable Energy Targets)
Amendment Bill 2005
Amendment of Electricity Industry Act 2004 Part 2
s. 5
(b) the amount, in megawatt hours, of electricity
from renewable energy sources acquired by the
licensee; and
(c) the following details of the entities from whom
5 electricity from renewable energy sources was
acquired by the licensee:
(i) the name and postal address of the
entity;
(ii) the telephone number, facsimile number
10 and email address (if any) of the entity;
and
(iii) the amount, in megawatt hours, of
electricity from renewable energy
sources acquired from the entity for the
15 year.
14C. Reduction of renewable energy target by Authority
(1) If the Authority is satisfied that an amount of electricity
acquired by the holder of a retail licence in a year was
used for the purpose of constructing or operating one or
20 more generating works, or producing any product
which is a source of renewable electricity under
section 14D to be used for or in connection with the
generation of renewable electricity then the Authority
may:
25 (a) reduce the renewable energy target for the
licensee for the year;
(b) reduce the renewable energy target for the
licensee for a subsequent year or subsequent
years; or
30 (c) a combination of (a) and (b).
page 5
Electricity Industry (Western Australian Renewable Energy Targets)
Amendment Bill 2005
Part 2 Amendment of Electricity Industry Act 2004
s. 5
(2) In exercising the discretion conferred by subsection (1)
the Authority must have regard to the following:
(a) the total amount of electricity acquired by the
licensee in the year;
5 (b) the amount of electricity used by the licensee in
the manner referred to in subsection (1) in the
year;
(c) the amount of renewable energy acquired by
the licensee in the year;
10 (d) the nature of the licensee's operations; and
(e) any other factor which the Authority considers
relevant.
14D. Meaning of "renewable energy"
(1) In sections 14A to 14C "electricity from renewable
15 energy sources" means, subject to subsections (2) to
(6), electricity generated from the following sources:
(a) hydro;
(b) wind;
(c) solar;
20 (d) bagasse co-generation;
(e) black liquor;
(f) wood waste;
(g) energy crops;
(h) crop waste;
25 (i) food and agricultural waste;
(j) landfill gas;
(k) municipal solid waste combustion;
(l) sewage gas;
(m) geothermal-aquifer;
30 (n) tidal;
page 6
Electricity Industry (Western Australian Renewable Energy Targets)
Amendment Bill 2005
Amendment of Electricity Industry Act 2004 Part 2
s. 5
(o) wave;
(p) ocean;
(q) photovoltaic and photovoltaic Renewable Stand
Alone Power Supply systems;
5 (r) wind and wind hybrid Renewable Stand Alone
Power Supply systems;
(s) micro hydro Renewable Stand Alone Power
Supply systems;
(t) solar hot water;
10 (u) co-firing;
(v) fuel cells;
(w) hot dry rocks; and
(x) such other sources as may be prescribed.
(2) For the purposes of paragraph (1)(f):
15 (a) if the wood waste is from a native forest,
biomass for energy production must not be the
primary purpose of a harvesting operation;
(b) the wood waste must be:
(i) biomass produced from non-native
20 environmental weed species and
harvested for the control or eradication
of the species from a harvesting
operation that is approved under
relevant Commonwealth, State or
25 Territory planning and approval
processes; or
(ii) a manufactured wood product or a
by-product from a manufacturing
process; or
30 (iii) waste products from the construction of
buildings or furniture, including timber
off-cuts and timber from demolished
buildings; or
page 7
Electricity Industry (Western Australian Renewable Energy Targets)
Amendment Bill 2005
Part 2 Amendment of Electricity Industry Act 2004
s. 5
(iv) sawmill residue; or
(v) subject to paragraph (c), if wood waste
is from a native forest:
(A) a by-product or waste product
5 of a harvesting operation,
approved under relevant
Commonwealth, State or
Territory planning and
approval processes, for which a
10 high-value process is the
primary purpose of the
harvesting; or
(B) a by-product (including
thinnings and coppicing) of a
15 harvesting operation that is
undertaken in accordance with
ecologically sustainable forest
management principles;
(c) wood waste to which paragraph (b)(v) applies
20 must be:
(i) from an area where a regional forest
agreement is in force and produced in
accordance with ecologically
sustainable forest management
25 principles required by the agreement; or
(ii) if it is from an area where no regional
forest agreement is in force, produced
from harvesting that is undertaken in
accordance with ecologically
30 sustainable forest management
principles that are consistent with those
required by a regional forest agreement.
(d) for the purpose of paragraph (b)(v)(A), the
primary purpose of a harvesting operation is
35 taken to be a high-value process only if the total
page 8
Electricity Industry (Western Australian Renewable Energy Targets)
Amendment Bill 2005
Amendment of Electricity Industry Act 2004 Part 2
s. 5
financial value of the products of the high value
process is higher than the financial value of
other products of the harvesting operation; and
(e) wood waste from a plantation must be:
5 (i) a product of a harvesting operation
(including thinnings and coppicing)
approved under relevant
Commonwealth, State or Territory
planning and approval processes and for
10 which no product of a higher financial
value than biomass for energy
production could be produced at the
time of harvesting; and
(ii) biomass managed in accordance with a
15 code of practice approved under
regulation 4B of the Export Control
(Unprocessed Wood) Regulations (Cth)
and taken from land that was not cleared
of native vegetation after
20 31 December 1989 for the purpose of
establishing the plantation;
(3) For the purposes of paragraph (g) an energy crop,
including an agricultural or horticultural crop and its
biomass by-products, must be grown as an energy
25 source for the primary purpose of energy production.
(4) For the purposes of paragraphs (n) to (p), electricity
generated from an ocean, wave or tide energy source
must be generated within the coastal waters of Western
Australia,
30 (5) The following energy sources are not eligible
renewable energy sources:
(a) coal seam methane, waste coal mine gas and
other products derived from coal or natural gas;
page 9
Electricity Industry (Western Australian Renewable Energy Targets)
Amendment Bill 2005
Part 2 Amendment of Electricity Industry Act 2004
s. 5
(b) waste heat from cogeneration if:
(i) the waste heat is not used for electricity
generation; and
(ii) the primary fuel source is not a source
5 listed in subsection (1).
(c) electricity generation from cogeneration using
fossil fuels;
(d) radioactive material;
(e) any component of co-firing or wastes that is not
10 bioenergy; and
(f) any other fossil fuels or waste products derived
from fossil fuels.
(6) In this section:
"bioenergy" means the energy derived from an energy
15 source mentioned in paragraphs (1)(d) to (1)(l).
"biomass" means solid organic matter other than
fossilised biomass.
"coastal waters of Western Australia" has the
meaning given by section 3(1) of the Coastal
20 Waters (State Powers) Act 1980 of the
Commonwealth.
"cogeneration" means a power generation process that
provides electricity and process heat as outputs.
"ecologically sustainable forest management
25 principles" includes maintenance of water and
soil quality, conservation of biodiversity and
nutrient recycling.
"high-value process" means the production of
sawlogs, veneer, poles, piles, girders, wood for
30 carpentry or craft uses or oil products.
page 10
Electricity Industry (Western Australian Renewable Energy Targets)
Amendment Bill 2005
Amendment of Electricity Industry Act 2004 Part 2
s. 6
"native forest" means a local indigenous plant
community:
(a) the dominant species of which are trees;
and
5 (b) containing throughout its growth the
complement of native species and
habitats normally associated with that
forest type or having the potential to
develop those characteristics; and
10 (c) including a forest with those
characteristics that has been regenerated
with human assistance following
disturbance; and
(d) excluding a plantation of native species
15 or previously logged native forest that
has been regenerated with non-endemic
native species.
"plantation" means an intensively managed stand of
native or exotic species, created by the regular
20 placement of seedlings or seed.
"regional forest agreement" has the meaning given
by the Export Control (Hardwood Wood Chips)
Regulations 1996 (Cth).
".
25 6. Section 32 amended
(1) Section 32(1) is amended by inserting after "licence," --
" except in the case of a contravention of the licence condition
in section 14A, ".
(2) After section 32(2) the following subsections are inserted
30 "
(2a) If, in the opinion of the Authority, a licensee is in
contravention of section 14A, the Authority may,
page 11
Electricity Industry (Western Australian Renewable Energy Targets)
Amendment Bill 2005
Part 2 Amendment of Electricity Industry Act 2004
s. 6
subject to section 33, order the licensee to pay a
monetary penalty fixed by the Authority but not
exceeding a penalty calculated using the formula:
$40 x (licensee's renewable energy target for the year
5 in megawatt hours amount of electricity acquired by
the entity from renewable energy sources for the year
in megawatt hours)
(2b) In considering the exercise of its discretion under
subsection (2a) to order a licensee to pay a monetary
10 penalty the Authority must have regard to:
(a) the market for bilateral contracts to be entered
into by the licensee through which the licensee
would acquire electricity from renewable
energy sources within the South West
15 interconnected system;
(b) the availability of electricity from renewable
energy sources for acquisition by the licensee,
other than through a bilateral contract, within
the South West interconnected system;
20 (c) any previous contraventions of section 14A by
the licensee;
(d) any amount by which the licensee has exceeded
its obligations under section 14A in any
previous year; and
25 (e) any other factor which the Authority considers
relevant.
".
(3) Subsection 32(4)(b) is amended by inserting after
"subsection (2)(b)" --
30 " or subsection (2a) ".
page 12
Electricity Industry (Western Australian Renewable Energy Targets)
Amendment Bill 2005
Amendment of Electricity Industry Act 2004 Part 2
s. 7
7. Section 33 amended
Section 33 is amended by inserting after "or (c)"
" or section 32(2a) ".
8. Section 134 added
5 After section 133 the following section is inserted
"
134. Review of sections
(1) The Minister is to carry out a review of the operation
and effectiveness of sections 14A to 14D of this Act as
10 soon as is practicable after 31 December 2010.
(2) The Minister is to prepare a report based on the review
and, as soon as is practicable, is to cause it to be laid
before each House of Parliament.
".
15
page 13
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