Securing a clean energy future: Implementing the Clean Energy Legislation Stakeholder information note
November 2011
1
Contents The way ahead ........................................................................................................................................ 5 Clean Energy Legislation - Who is doing what? ...................................................................................... 8 Clean Energy Legislation ......................................................................................................................... 9 Regulations ........................................................................................................................................... 10 Resources and guidance ....................................................................................................................... 11 Clean Energy Regulator ......................................................................................................................... 12 Climate Change Authority ..................................................................................................................... 13 Appendix 1A The Clean Energy Legislative Package and related legislation ........................................ 15 Appendix 1B Measures being delivered administratively or through other legislation ....................... 18 Appendix 2A Clean Energy Regulations – Proposed consultation process and timeframes ................ 21 Appendix 2B Clean Energy Regulations required after 1 July 2012 ...................................................... 28 Appendix 2C Clean Energy Regulations - Precautionary regulation powers not required at this stage .............................................................................................................................................................. 29
3
The way ahead The Government is implementing the carbon pricing mechanism, providing household assistance and rolling out clean energy and energy efficiency initiatives. This information note explains how this will happen. In the coming months, the Government will implement the carbon pricing mechanism and related reforms, coordinated by the Department of Climate Change and Energy Efficiency. This will provide time to put in place administrative arrangements to implement the mechanism, and ensure that liable businesses and other entities have as much time as possible to prepare for carbon pricing. 10 July 2011 28 July – 22 August 2011 13 September 2011 September – November 2011 8 November 2011 2 April 2012
Before 1 July 2012
1 July 2012
From 1 July 2012 onwards 20 March 2013 1 July 2013
By 31 May 2014
1 January 2014
Securing a clean energy future: The Australian Government’s climate change plan Public engagement on the Package and discussions with key stakeholders and legal experts The Government introduced the Package into the Parliament The Package was considered by the Parliament and drafts of key regulations were published The Package was passed by the Parliament and awaits the Royal Assent The Clean Energy Regulator is established
The Government prepares, seeks views on and finalises regulations to be made under the Package which are needed for it to start on 1 July 2012 The Government sets up the Climate Change Authority and the Land Sector Carbon and Biodiversity Board First household assistance payments made through the Clean Energy Advance in May-June 2012, to help households get ready for the carbon price Start of the carbon pricing mechanism and the start of the first fixed charge year (the charge is set at $23.00) Start of excise and fuel tax credit changes to implement an effective carbon price The Climate Change Authority is established Start of the Jobs and Competitiveness Program and the Energy Security Fund Tax cuts and a range of other household assistance measures take effect Ongoing implementation, awareness raising and education about the carbon price mechanism and its links to the Carbon Farming Initiative Introduction of the Clean Energy Supplement for pensioners, Newstart Allowance and Seniors Supplement recipients Start of the second fixed charge year (the charge is set at $24.15) Start of the Opt-in Scheme for liquid transport fuels Introduction of Clean Energy Supplement for Family Tax Benefit recipients The Government must table in Parliament regulations specifying the pollution cap numbers for the first five flexible charge years of the carbon pricing mechanism (eligible financial years beginning on 1 July 2015, 1 July 2016, 1 July 2017, 1 July 2018 and 1 July 2019) Introduction of the Clean Energy Supplement for Youth Allowance recipients
1 July 2014
Start of the third fixed charge year (the charge is set at $25.40)
1 July 2015
Start of the flexible price period The Government must have tabled regulations specifying the pollution cap numbers for eligible financial years beginning on 1 July 2020; if these do not take effect a default cap applies
5
By 1 July each year thereafter
The Government must table regulations specifying the pollution cap numbers for the eligible financial year beginning five years later; if these do not take effect a default cap will apply
6
Clean Energy Legislation - Who is doing what? The Government is implementing the Clean Energy Legislative Package and a range of related programs, which will be delivered administratively. Further information about those programs will be published shortly. Agency
Primary legislative responsibility
Department of Climate Change and Energy Efficiency
Carbon pricing mechanism Carbon Farming Initiative, Carbon Farming Skills Program, Indigenous Carbon Farming Fund Australian National Registry of Emissions Units Jobs and Competitiveness Program Energy Security measures Clean Energy Regulator Climate Change Authority
The Treasury
Fuel tax system changes Tax treatment of units Income tax reforms, small business instant asset write-off Clean Energy Finance Corporation Energy Security Council
Australian Taxation Office
Administering fuel tax system changes Tax treatment of units Administering income tax reforms, small business instant asset write-off
Australian Competition and Consumer Commission
Investigating and dealing with false and misleading claims about the impacts of the carbon pricing mechanism
Australian Securities and Investments Commission
Financial market regulation and the carbon pricing mechanism
Department of Families, Housing, Community Services and Indigenous Affairs
Household assistance measures
Department of Human Services
Administering the new household assistance measures
Investigating and dealing with false and misleading claims about the impacts of the carbon pricing mechanism in financial services and markets
Centrelink Department of Veterans Affairs Department of Education, Employment and Workplace Relations Department of Sustainability, Environment, Water, Population and Communities
Synthetic greenhouse gases
Department of Resources, Energy and Tourism
Australian Renewable Energy Agency
Department of Innovation, Industry, Science and Research
Steel Transformation Plan
Land Sector Carbon and Biodiversity Board Biodiversity Fund
8
Clean Energy Legislation The Clean Energy Legislative Package was passed on 8 November 2011. It sets out the way that Australia will introduce a carbon price to reduce Australia’s carbon pollution and move to a clean energy future. The legislation: •
implements the carbon pricing mechanism, as outlined in Securing a clean energy future: The Australian Government’s climate change plan, for Australia to reduce carbon pollution and move to a clean energy future;
•
sets out how the carbon pricing mechanism will be run, and what businesses will have to do;
•
links the carbon price to the Carbon Farming Initiative and to credible schemes overseas;
•
provides for assistance to emissions intensive and trade exposed industries through the Jobs and Competitiveness Program and to electricity generators to ensure energy security;
•
excludes emissions from agriculture, the land sector, and the combustion of biomass, biofuels and biogas from the mechanism;
•
sets up a Clean Energy Regulator to administer the carbon pricing mechanism, the National Greenhouse and Energy Reporting Scheme, the Renewable Energy Target and the Carbon Farming Initiative;
•
sets up an independent Climate Change Authority, which will advise the Government on the setting of carbon pollution caps and periodic review of the carbon pricing mechanism and other climate change laws;
•
applies an effective carbon price to transport fuels used in rail, shipping and aviation (fuels used by motorists and in light commercial vehicles are excluded), to off-road use of transport fuels by businesses (other than in the agricultural, forestry and fishery industries), and to synthetic greenhouse gases;
•
provides a refundable tax offset for conservation tillage equipment; and
•
gives assistance to those Australian households that need it most, including pensioners and low and middle income earners.
More information about each Act in the Package and related climate change initiatives is set out in Appendices 1A and 1B.
9
Regulations Practical aspects of the carbon pricing mechanism will be implemented through legislative instruments, including regulations. The regulations needed for the start of the mechanism on 1 July 2012 will be made in the next six months. The Government is developing regulations to set out the detailed design of key elements of the mechanism. It has already released some draft regulations for public comment, and further draft regulations will be released in later in 2011. The Government proposes to make regulations as follows: Issues covered by the regulations
When is consultation proposed to occur?
When are the regulations proposed to be made?
Assistance to coal-fired electricity generators Landfill coverage
September-October 2011
November–December 2011
Jobs and Competitiveness Program
September-October 2011
Before 1 March 2012
Australian National Register of Emissions Units Regulations
November 2011
November-December 2011
Regulations on National Greenhouse and Energy Reporting Scheme, natural gas coverage, obligation transfer numbers, joint ventures, liability transfer certificates, significant holdings of units, record keeping, administrative issues and international unit surrender charge
Late 2011 and early 2012
March-May 2012
Regulations on fuel tax, the Opt-in Scheme and auctions
March-June 2012
June-September 2012
Regulations on eligible international unit surrender
Mid 2012
Late 2012
Appendix 2A describes in more detail the regulations contemplated by the legislation, with details of the process by which they will be made. Some regulations are not needed for the mechanism to start, and are either required later or if they prove necessary at a future time. These regulationmaking powers are set out in Appendices 2B and 2C.
Why are regulations needed? Regulations are made by the Governor-General on the recommendation of the Government, and provide flexibility in applying laws to businesses and individuals. Regulations can be necessary to give effect to a law or allow for future changes in circumstances to be taken into account, without the need to go back to Parliament and amend the law every time a change needs to be made. Does Parliament have a say in making regulations? The Parliament has the power to disallow regulations after they are made. This way, regulations remain subject to Parliamentary scrutiny. 10
Resources and guidance Liable entities have access to information and tools to assist them in understanding the carbon pricing mechanism and the Carbon Farming Initiative. In the coming months, we will provide more resources and activities to assist liable entities. The Government will continue to work closely with businesses, local councils, farmers and others to build awareness of the mechanism, the Carbon Farming Initiative, and clean energy and energy efficiency opportunities. In the coming months, the following activities are planned: Activity Factsheets on key elements of the carbon price mechanism – visit www.cleanenergyfuture.gov.au Information and resources on NGERS – visit www.climatechange.gov.au/reporting Additional resources, including guidance, workshops and other materials – to be developed and published over the coming months, in line with the finalisation of specific design details of the mechanism and the setting up of the Regulator. This information will be made available on www.climatechange.gov.au
The Clean Energy Regulator will start work on 2 April 2012. As well as setting up the regulatory framework, its main priorities will be building awareness and understanding of the carbon pricing mechanism to ensure that liable entities understand their obligations and are able to comply with the legislation. The Treasury, the Australian Taxation Office and the Australian Customs and Border Protection Service will implement changes to the fuel tax system to apply an equivalent carbon price to specific transport fuels.
For more information or assistance, visit www.climatechange.gov.au or call 1800 057 590.
11
Clean Energy Regulator The Clean Energy Regulator will start work on 2 April 2012. It will be a statutory authority that will administer the carbon pricing mechanism, National Greenhouse and Energy Reporting Scheme, the Renewable Energy Target and the Carbon Farming Initiative. The Government is setting up the Clean Energy Regulator and work is on track to ensure that all functions are ready on 1 July 2012. Key responsibilities of the Clean Energy Regulator: Carbon pricing mechanism Carbon Farming Initiative Australian National Registry of Emissions Units National Greenhouse and Energy Reporting Scheme Renewable Energy Target
Between now and 2 April 2012 when the Clean Energy Regulator starts work, the existing regulatory arrangements for the National Greenhouse and Energy Reporting Scheme, the Renewable Energy Target and the Carbon Farming Initiative will continue as they are now. During the setting up of the Clean Energy Regulator, the Department will engage with industry and other entities on compliance issues and resources for the start of the carbon pricing mechanism on 1 July 2012. The process for setting up the Clean Energy Regulator is as follows: Milestone
Timing
Advertisement of positions for the Clean Energy Regulator Chair and members
22 October 2011
Announcement of the inaugural Chair and members of the Clean Energy Regulator
Early 2012
The Clean Energy Regulator is established
2 April 2012
The Regulator will be a statutory agency, based in Canberra. It will be made up of a Chair (who will also be the Chief Executive Officer) and between two and four expert members, who will be supported by staff. It is set up by the Clean Energy Regulator Act 2011.
12
Climate Change Authority The Climate Change Authority will start work on 1 July 2012. The Authority will advise the Government on the setting of carbon pollution caps and conduct periodic reviews of the carbon pricing mechanism and other climate change laws. The Government will be responsible for all policy The Government has started the process of setting up the Climate Change Authority. Responsibilities of the Climate Change Authority: Make recommendations on pollution caps Make recommendations on the indicative national trajectory and carbon budget Advise on progress on the reduction of Australia’s emissions to meet national targets Advise on the role of the price floor and the price ceiling beyond the first three years of the flexible charge period Conduct regular reviews of, and make recommendations about, the mechanism, the National Greenhouse and Energy Reporting Scheme, the Renewable Energy Target and the Carbon Farming Initiative Make recommendations on a robust methodology to recognise voluntary emissions reduction action by households Conduct reviews and made recommendations on other matters as requested by the Minister or the Parliament Conduct or commission independent research and analysis into climate change or other matters relevant to its functions
The process for setting up the Climate Change Authority is as follows: Milestone
Timing
Announcement of the inaugural chair of the Climate Change Authority, Mr Bernie Fraser
July 2011
Appointment of the members of the Climate Change Authority
Early 2012
The Climate Change Authority starts work
1 July 2012
The Authority will be a statutory agency. It will be made up of a Chair, the Chief Scientist for Australia and up to seven expert members, who are supported by staff. It is set up by the Climate Change Authority Act 2011.
Land Sector Carbon and Biodiversity Board The Land Sector Carbon and Biodiversity Board will advise the Government on matters supported by the Biodiversity Fund and the progress on other land sector initiatives. Its members will be appointed in late 2011 to commence work immediately.
13
Appendix 1A The Clean Energy Legislative Package and related legislation Which Act?
What does it cover?
When will it be law?
Clean Energy Act 2011
This is the central Act of the Package. It sets up the carbon pricing mechanism (the mechanism) and deals with assistance for emissionsintensive trade-exposed industries (the Jobs and Competitiveness Program) and the coal-fired electricity generation sector. It contains rules for who is covered, the Opt-in Scheme as well as what sources of carbon pollution are included, the obligation to surrender emissions units, caps on the amount of carbon pollution from 1 July 2015, international linking, monitoring, enforcement, appeal and review provisions.
Passed by Parliament on 8 November 2011 with commencement before 1 July 2012
Clean Energy Regulator Act 2011
This Act sets up the Clean Energy Regulator as a statutory authority that will administer the carbon pricing mechanism, National Greenhouse and Energy Reporting Scheme, the Renewable Energy Target and the Carbon Farming Initiative
Passed by Parliament on 8 November 2011 with commencement before 1 July 2012 The Regulator will start work on 2 April 2012
Climate Change Authority Act 2011
This Act sets up the Climate Change Authority, which will advise the Government on the setting of carbon pollution caps and periodic review of the carbon pricing mechanism and other climate change laws.
Passed by Parliament on 8 November 2011. The Authority will be set up on 1 July 2012
The Act 2011 also sets up the Land Sector Carbon and Biodiversity Board, which will advise on the implementation of land sector measures.
The Board will be set up following passage of the legislation
This Act makes amendments to other laws to ensure that the mechanism is integrated with existing laws, regulatory schemes and processes. It includes changes that ensure:
Passed by Parliament on 8 November 2011
Clean Energy (Consequential Amendments) Act 2011
•
the National Greenhouse and Energy Reporting Scheme (NGERS) supports the mechanism;
•
the Australian National Registry of Emissions Units covers the mechanism, as well as the Carbon Farming Initiative (CFI);
•
the Regulator covers the mechanism, CFI, the Renewable Energy Target and NGERS;
•
the Regulator and Authority are set up as statutory agencies and regulated by public accountability and financial management rules;
15
Different parts of this Act 2011 will start at different times, depending on the element of the mechanism to which they relate
Which Act?
What does it cover?
When will it be law?
•
that carbon units and their trading are covered by laws on financial services and regulated by ASIC;
•
that activities related to emissions trading are covered by laws on money laundering and fraud;
•
synthetic greenhouse gases are covered by an effective carbon price by extending existing regulation of those substances;
•
the taxation treatment of emissions units for the purposes of GST and income tax is clear; and
•
the Regulator can work with other regulatory bodies, including ASIC, the ACCC and Austrac.
Clean Energy (Unit Shortfall Charge—General) Act 2011 Clean Energy (Unit Issue Charge—Auctions) Act 2011 Clean Energy (Unit Issue Charge—Fixed Charge) Act 2011 Clean Energy (Charges—Excise) Act 2011 Clean Energy (Charges—Customs) Act 2011 Clean Energy (International Unit Surrender Charge) Act 2011 Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2011 Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment Act 2011
These are procedural Acts, which deal with the way in which charges are paid under the mechanism. They comply with the requirements of section 55 of the Constitution.
Passed by Parliament on 8 November 2011 with commencement before 1 July 2012
Clean Energy (Fuel Tax Legislation Amendment) Act 2011 Clean Energy (Excise Tariff Legislation Amendment) Act 2011 Clean Energy (Customs Tariff Amendment) Act 2011
These Acts cover:
Passed by Parliament on 8 November 2011 with commencement before 1 July 2012
•
imposing an effective carbon price on aviation and non-transport gaseous fuels through excise and customs tariffs
•
reducing the business fuel tax credit entitlement of non-exempted industries for their use of liquid and gaseous transport fuels, in order to provide an effective carbon price on business through the fuel tax system.
16
Which Act?
What does it cover?
When will it be law?
Clean Energy (Household Assistance Amendments) Act 2011 Clean Energy (Tax Laws Amendments) Act 2011 Clean Energy (Income Tax Rates Amendments) Act 2011
On 10 July 2011 the Government announced household assistance measures to help Australians adjust to a low emissions economy on 10 July 2011. These Acts will make law the household assistance measures, including:
Passed by Parliament on 8 November 2011 with commencement before 1 July 2012 where assistance commences on 1 July 2012. Most of the funding initiatives will be delivered as part of the 2012 Budget process.
•
higher payments to pensioners, veterans, self-funded retirees and families, assistance to aged-care residents and new assistance through the Essential Medical Equipment Payment, the Low Income Supplement and the Single Income Family Supplement;
•
tax cuts to assist low and middle income families, by tripling the tax free threshold from $6,000 to $18,200 in 2012-13 and adjusting the first two marginal tax rates; and
•
a further increase in the tax-free threshold from $18,200 to $19,400 in 2015-16.
17
Appendix 1B Measures being delivered administratively or through other legislation What is the initiative?
What does it cover?
When will it be law?
Support for innovation in renewable energy and clean energy
The Government will introduce legislation to deliver assistance to promote the development and adoption of new low emissions and energy efficient technologies. The Government announced the detail of these changes on 10 July 2011. These bills will make law these measures, including:
The legislation implementing the CEFC and ARENA will be passed before 1 July 2012. The ARENA legislation will be passed in 2011. The CEFC legislation will take into account the report of the Chair on the investment mandate and detailed governance arrangements for the CEFC. Most of the funding initiatives will be delivered as part of the Budget process.
•
the Clean Energy Finance Corporation (CEFC), which will invest in the development of new renewable energy, energy efficiency and low emissions technologies and the transformation of existing manufacturing businesses to help them meet demand for these new activities; and
•
the Australian Renewable Energy Agency (ARENA), which will be a new independent statutory agency responsible for funding new renewable energy projects. It will take over existing national renewable energy initiatives. A number of the industry and business assistance measures are also designed to promote innovation in clean energy (see below).
Industry and business assistance
The Government will deliver assistance to help businesses adjust to a low emissions economy and take advantage of the opportunities that this will create for them. The Government announced the detail of these changes on 10 July 2011. Specific bills will make law: •
the Steel Transformation Plan to assist Australia’s steelmakers adjust to a low emissions economy – legislation was introduced into the Parliament on 13 September 2011;
• an increase the small business instant asset write-off threshold to $6,500 for depreciating assets; The Government will also administratively implement: •
grants to industry associations and non-government organisations to deliver information about energy efficiency to small and medium businesses and community organisations;
•
the Clean Technology Investment Program to deliver grants for manufacturing businesses to investing energy efficiency capital equipment and low emissions technologies, processes and products;
•
the Clean Technology Food and Foundries Investment Program to deliver grants for metal forging, foundry and food businesses to invest in energy efficiency capital equipment and low emissions technologies, processes and products;
18
The Steel Transformation Plan Bill 2011 will be passed in 2011. The legislation implementing these changes will start before 1 July 2012 where the relevant body or program starts on 1 July 2012. Most of the funding initiatives will be delivered as part of the Budget process.
What is the initiative?
Household and community assistance
What does it cover?
When will it be law?
•
the Clean Technology Innovation Program to deliver grants for research into innovation in low emissions technologies, processes and products;
•
the Clean Energy Skills Program to deliver funding to education providers on new workplace skills to deliver low emissions technologies, processes and products; and
•
the Clean Technology Focus for Supply Chains Program to deliver funding to promote and assist businesses to reduce the emissions intensity of supply chain logistics; and
•
the Coal Sector Jobs Package to assist the most emissions-intensive coal mines and Coal Mining Abatement Technology Support Package to assist the coal industry implement abatement technologies
The Government will assist people and communities adjust to a low emissions economy and take advantage of the opportunities that this will create for them through: •
an expansion of the Low Carbon Communities Program) which will assist low-income households increase their energy efficiency and reduce energy costs, and will support local government and community organisations to assist them;
•
improved advice to households on energy efficiency and clearer information on government assistance; and
•
the Remote Indigenous Energy Program to deliver financial support to build renewable energy generation in around 55 remote indigenous communities.
Funding initiatives will be delivered as part of the Budget process.
Transport measures
Mandatory vehicle emissions standards will be introduced to significantly reduce the average CO2 emissions for light vehicles in Australia.
Regulations to introduce the new standard are being developed.
Regional structural adjustment assistance
The Government will set up a Regional Structural Adjustment Assistance program to make funding available to assist regions strongly affected by the introduction of a carbon price.
Funding initiatives will be delivered as part of the Budget process.
19
What is the initiative?
What does it cover?
When will it be law?
Land sector measures
The Government will deliver a wide range of measures to help rural communities benefit from the carbon market and support restoration and protection of biodiverse landscapes. These measures include:
Most of the funding initiatives will be delivered as part of the Budget process.
•
the CFI Non-Kyoto Carbon Fund to purchase non-Kyoto compatible CFI carbon credits, which cannot be used to meet liabilities under the carbon price mechanism;
•
the Carbon Farming Futures Fund to deliver funding, with the advice of the Land Sector Carbon and Biodiversity Board, to help land managers benefit from abatement and sequestration practices by encouraging research, developing better estimation methods, funding on-farm abatement, fostering greater awareness of abatement and sequestration practices and the conservation tillage tax offset;
•
the Biodiversity Fund to deliver funding, with the advice of the Land Sector Carbon and Biodiversity Board, to restore and protect biodiverse carbon stores;
•
the Regional Natural Resources Management Planning for Climate Change Fund to help regional NRM organisations update plans to consider the impacts of climate change and maximise the benefits of biodiverse carbon stores and carbon farming projects;
•
the Indigenous Carbon Farming Fund to support indigenous communities who are interested in implementing carbon farming projects;
•
the Carbon Farming Skills Initiative to ensure that landholders can access credible, high quality advice and carbon services;
•
the removal by regulation of native forest wood waste from eligible renewable energy sources under the Renewable Energy Target with transitional arrangements for existing accredited power stations.
20
Appendix 2A Clean Energy Regulations – Proposed consultation process and timeframes Regulation-making power
Description of regulations
Proposed consultation period (if required before exposure draft)
Proposed publication of exposure draft (if required)
Proposed finalisation of regulations
Jobs and Competitiveness Program
•
Consultation on draft regulations took place between 20 September and 28 October 2011.
Sep-Oct 2011
Feb 2012
•
Further consultations will take place on the new draft regulations, including supplementary allocations for LNG sector.
21 Sep28 Oct 2011 New draft including LNG provisions available in Nov-Dec 2011
•
Consultation on draft regulations took place between 20 September and 13 October 2011.
Sep-Oct 2011
Nov 2011
•
The Regulations are being finalised.
21 Sep 13 Oct 2011
Treatment of landfill
•
Sections 23, 24, 25, 32, 32A, Clean Energy Act 2011
Regulations setting the prescribed distance to 0km will be made and all waste will be allowed to be ‘categories of eligible waste’.
•
The NGER Measurement Determination will be amended to determine the amount of legacy emissions and exempt landfill emissions from a landfill facility.
Not required – decision announced
No release required for regulation NGER Measurement Determination in Oct-Dec 2011
Regulation made in Dec 2011. NGER Measurement Determination made in JanMar 2012
•
The regulations will deal with the prescribed percentage relating to facilities in Joint Petroleum Development Area and/or Greater Sunrise unit area.
Early 2012
Mar-Apr 2012
May 2012
Part 7, Section 116 (buy-back), Clean Energy Act 2011 Coal-fired electricity generators Part 8, Clean Energy Act 2011
JPDA/Greater Sunrise Sections 26, 27, 28, Clean Energy Act 2011
21
Regulation-making power
Description of regulations
Proposed consultation period (if required before exposure draft)
Proposed publication of exposure draft (if required)
Proposed finalisation of regulations
Amendments to NGER regulations
•
The regulations will deal with definitions of fugitive emissions and decommissioned underground mines.
Nov-Dec 2011
Dec 2011-Feb 2012
Apr 2012
Section 10(1)(a) – NGER Regulations 2.23
•
The regulations will deal with the definition of scope 1 emissions.
Not required
Dec 2011-Feb 2012
Apr 2012
Sections 11B, 11C, 15A, 15AA, 18B, 54A, 55A, NGER Act 2007 (NGER Regs 2.082.13, 3.02, Division 3.4, Division 6.2)
•
The regulations will deal with information in National Greenhouse and Energy Reporting Act 2007 (NGER Act) registration application forms, including: o the nominated person when 2 or more persons have operational control of facility, or trust with multiple trustees; o applications by liable entities and prospective liable entities; o applications by non-group entities in relation to declaration of facilities and declarations of operational control; and o application for deregistration.
Not required
Dec 2011-Feb 2012
Apr 2012
Section 16 (Division 3.3), NGER Act 2007
•
The regulations will deal with matters to be included in National Greenhouse and Energy Register
Not required
Not required
May 2012
New sections 22A, 22AA, 22B, 22C, 22E, 22F, 22X, 22XA, NGER Act 2007
•
The regulations will deal with reporting obligations under NGERS, including information to be provided and record-keeping requirements.
Not required
Dec 2011-Feb 2012
Apr 2012
New section 74AA, NGER Act 2007
•
The regulations will deal with audits and audit reports, including: o the emissions number threshold above which audit is required; o matters relating to conduct of audits and reports, and o the manner of submitting reports to Regulator.
Not required
Dec 2011-Feb 2012
Apr 2012
Section 24, NGER Act 2007
•
The regulations will deal with energy consumption publication requirements.
Nov-Dec 2011
Dec 2011-Feb 2012
Apr 2012
Section 5, Clean Energy Act 2011
22
Regulation-making power
Description of regulations
Proposed consultation period (if required before exposure draft)
Proposed publication of exposure draft (if required)
Proposed finalisation of regulations
NGER Reg 5.02
•
The regulations will deal with disclosure of information (for coal-fired electricity generators).
Not required
Not required
Dec 2011
NGER Regs 1.03, 2.02, 2.04, 2.05, 2.07, 4.29; Division 4.3, NGER Act 2007
•
The regulations will deal with other consequential amendments to ensure consistency between Clean Energy Act 2011 and NGER Act definitions.
Not required
Dec 2011
May 2012
Natural gas Sections 5,6, Clean Energy Act 2011
•
The regulations will deal with the definition of what is not a natural gas supply pipeline; the withdrawal of natural gas; and the point at which supply of natural gas occurs.
Nov-Dec 2011
Dec 2011-Feb 2012
Apr 2012
Sections 7B, 13(1A), NGER Act 2007
•
The regulations will deal with default and prescribed alternative methods of determining emissions embodied in natural gas
Nov-Dec 2011
Dec 2011-Feb 2012
Apr 2012
Liability – OTNs
•
The regulations will deal with Obligation Transfer Numbers, including information, documents; application fee; fee for supplying copy; information to be supplied in quotation; information to be specified in acceptance of quotation.
Nov-Dec 2011
Dec 2011-Feb 2012
Apr 2012
•
The regulations will deal with: o application for declaration (voluntarily designated JV; participating percentage determination) – information and documents to be supplied; o additional requirements to be met before Regulator can approve; o other rules to be applied if share of goods, or share of access to services, don’t apply.
Nov-Dec 2011
Dec 2011-Feb 2012
Apr 2012
Sections 38, 46, 48, 59, 60, Clean Energy Act 2011
Liability – Joint Ventures Sections 68, 70, 74, 78, Clean Energy Act 2011
23
Regulation-making power
Description of regulations
Proposed consultation period (if required before exposure draft)
Proposed publication of exposure draft (if required)
Proposed finalisation of regulations
Liability - Liability transfer certificate
•
The regulations will deal with: o information and documents to be supplied (corporate group test, financial control test); o other requirements to be met before Regulator can approve; o alternative grounds for cancellation; and o grounds for deeming second person (not operator) to have financial control
Nov-Dec 2011
Dec 2011-Feb 2012
Apr 2012
•
The regulations will deal with the requirements for notification of significant holding of carbon units—controlling corporations, non-group entities, including information to be included in notification.
Nov-Dec 2011
Dec 2011-Feb 2012
Apr 2012
Sections 227, Clean Energy Act 2011
•
The regulations will deal with record-keeping requirements.
Nov-Dec 2011
Dec 2011-Feb 2012
Apr 2012
Sections 5, Clean Energy Act 2011
•
The regulations will deal with amendments to NGER Regulations and other definitional regulations relating to the applicable identification procedure.
Nov-Dec 2011
Dec 2011-Feb 2012
Apr 2012
Sections 7, Clean Energy Act 2011
•
The regulations will deal with notices transmitted to the Regulator by means of an electronic communication - encryption and authentication of identity.
Not required
Dec 2011-Feb 2012
Apr 2012
Sections 106, Clean Energy Act 2011
•
The regulations will deal with the evidence required for transmission of carbon units by operation of law etc.
Not required
Dec 2011-Feb 2012
Apr 2012
Sections 81, 83, 85, 87, 90, 92, Clean Energy Act 2011
Other administrative regulations Sections 218, 219, Clean Energy Act 2011
24
Regulation-making power
Description of regulations
Proposed consultation period (if required before exposure draft)
Proposed publication of exposure draft (if required)
Proposed finalisation of regulations
International unit surrender charge
•
The charge will apply only in the first three flexible charge years: 2015-2016, 2016-17 and 2017-18.
Nov-Dec 2011
Feb-Mar 2012
May 2012
•
The regulations will deal with the design of the Opt-in Scheme. The Opt-in Scheme commences from 1 July 2013.
Late 2011early 2012
Apr 2012
May-Jun 2012
•
The regulations and a legislative instrument will deal with the detailed design of the auction process.
Early 2012
Mid-2012
Prior to first auction being held (to be announced)
•
The regulations will deal with: o restrictions on the surrender of eligible international emissions units; o actions to be taken by Regulator in case of surrender of eligible international emissions units from recognised under international agreements (as defined in section 5 of the Clean Energy Act 2011)
Not required
Mid 2012
Late 2012
Section 111 Clean Energy Act 2011 and section 8 Clean Energy (International Unit Surrender Charge) Act 2011 Fuel opt-in Sections 92A-92F, , Clean Energy Act 2011 Determination on auction policies, procedures and rules Sections 111, 113, Clean Energy Act 2011 How eligible emissions units are surrendered Sections 122, 123, Clean Energy Act 2011
25
Regulation-making power
Description of regulations
Proposed consultation period (if required before exposure draft)
Proposed publication of exposure draft (if required)
Proposed finalisation of regulations
ANREU Act 2011
•
The ANREU Regulations are currently published in draft and the consultation period will end on 14 November 2011.
Not required
Technical amendments – not required Other amendments – Mar 2012 (will be based on Oct 2011 CFI draft)
Technical amendments – Feb 2012 Other amendments – May-Jun 2012 (will be based on CFI Act provisions as finalised in Dec 2012)
Corporations regulations
•
The regulations relate to the treatment of emissions units as financial products.
Not required
Nov-Dec 2011
Mar 2012 (will be based on CFI provisions of ACCUs as finalised in Dec 2011)
SGG regulations
•
The regulations will relate to the coverage of specific uses of Synthetic Greenhouse Gases by the equivalent carbon price.
Nov 2011 – Feb 2012
Not required
Apr 2012
•
The regulations will deal with technical amendments dealing with gaseous fuels
Not required
Not required
Apr-Jun 2012
Ozone Protection and SGG Management Act 1989 (as amended) Fuel tax – excise regulations
26
Regulation-making power
Description of regulations
Proposed consultation period (if required before exposure draft)
Proposed publication of exposure draft (if required)
Proposed finalisation of regulations
Household assistance
•
EMEP – Nov 2011
Not required
Apr-May 2012 sittings
Social Security Act 1991, Veterans’ Entitlements Act 1986, Military Rehabilitation and Compensation Act 2004, A New Tax System (Family Assistance) Act 1999, A New Tax System (Family Assistance) (Administration) Act 1999
These include instruments which: o deal with payments of the Clean Energy Advance; o determine an administrative scheme for paying Clean Energy Advance to an Approved Care Organisation who receives Family Tax Benefit; o determine a method for working out the order of reduction of the Family Tax Benefit rate components, including Clean Energy Supplement; o relate to qualifying medical equipment, and conditions relating to the Essential Medical Equipment payment (EMEP) for additional heating and/or cooling requirements.
27
Appendix 2B Clean Energy Regulations required after 1 July 2012 Regulation making power
Content
Proposed timing
Section 14, Clean Energy Act 2011
Regulations on pollution caps
The first set of regulations should be made before 31 May 2014
Section 100, Clean Energy Act 2011
Regulations setting fixed charge price for 2015-16
The regulations must be made before 31 May 2014
Sections 108, 109, Clean Energy Act 2011
Regulations on international transfers of carbon units – outgoing and incoming, including the conditions to be met and steps to be taken by Regulator
To be decided
Sections 137, 215, Clean Energy Act 2011
Regulations specifying the conditions to be met for amount to be setoff by the Regulator in relation to surrender and relinquishment of carbon units
To be decided
28
Appendix 2C Clean Energy Regulations - Precautionary regulation powers not required at this stage Regulation making power
Content of regulation
Section 5, Clean Energy Act 2011
New international climate change agreements, description of additional ACCUs
Sections 135 and 213, Clean Energy Act 2011
Late payment penalty (if to be lower than 20%)
Section 171, Clean Energy Act 2011
Power system reliability test - additional criteria relating to replacement capacity
Section 172, Clean Energy Act 2011
Additional requirements for new generation unit projects
Section 206, Clean Energy Act 2011
List of large landfill facilities – not required because prescribed distance will be zero
Section 212, Clean Energy Act 2011
Prescribed penalty for failure to relinquish - if not 200%, needed after fixed charge period
Section 271, Clean Energy Act 2011
Additional provisions in relation to infringement notices
Section 298, Clean Energy Act 2011
Delegation by the Minister
Section 300, Clean Energy Act 2011
Delegation by the Secretary
Section 309, Clean Energy Act 2011
Prescribing matters by reference to other instruments
Section 310, Clean Energy Act 2011
Conferring power to make administrative decisions
Section 312, Clean Energy Act 2011
General regulation power
Items 239 and 241, Clean Energy (Consequential Amendments) Act 2011 (new sections 14A and 16(2A), ANREU Act 2011)
Regulations preventing surrender of Kyoto units including cancellation of units in accounts
Item 323, Clean Energy (Consequential Amendments) Act 2011 (new section 7A, NGER Act)
Additional gases to be prescribed greenhouse gases
Section 4, ANREU Act 2011
Registry in a foreign country; eligible international units
29