CLEAN ENERGY AMENDMENT (INTERNATIONAL EMISSIONS TRADING AND OTHER MEASURES) BILL 2012

i Clean Energy Amendment (International Emissions Trading and Other Measures) Bill 2012

No. , 2012

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

........................................................................................

Schedule 1--Amendments

Part 1--General amendments

Australian National Registry of Emissions Units Act 2011

Clean Energy Act 2011

Fuel Tax Act 2006

National Greenhouse and Energy Reporting Act 2007

Part 2--Amendments relating to fuel

Clean Energy Act 2011

National Greenhouse and Energy Reporting Act 2007

Part 3--Repeal of Act

Clean Energy (International Unit Surrender Charge) Act 2011

Clean Energy Amendment (International Emissions Trading and Other Measures) Bill 2012

No. , 2012 1

A Bill for an Act to amend legislation relating to

clean energy, and for other purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Clean Energy Amendment

(International Emissions Trading and Other Measures) Act 2012.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

Commencement information

Column 1

Column 2

Column 3

Provision(s) Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Schedule 1,

Part 1

The day after this Act receives the Royal

Assent.

3. Schedule 1,

Part 2

1 July 2013.

1 July 2013

4. Schedule 1,

Part 3

The day after this Act receives the Royal

Assent.

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

Amendments Schedule 1

General amendments Part 1

Clean Energy Amendment (International Emissions Trading and Other Measures) Bill 2012

No. , 2012 3

Schedule 1--Amendments

Part 1--General amendments

Australian National Registry of Emissions Units Act 2011

1 Section 4

Insert:

Australian-issued international unit means a unit issued under

section 48A.

2 Section 4

Insert:

benchmark average auction charge has the same meaning as in

the Clean Energy Act 2011.

3 Section 4

Insert:

Commonwealth foreign registry account has the meaning given

by section 86A.

4 Section 4

Insert:

European allowance unit means an allowance (within the meaning

of the European Union Greenhouse Gas Emission Allowance

Trading Directive) issued by, or under the authority of:

(a) a foreign country that is a Member State of the European

Union; or

(b) a foreign country that:

(i) is not a Member State of the European Union; and

(ii) participates in the scheme for greenhouse gas emission

allowance trading established by the Directive;

but does not include an allowance issued in respect of aviation

activities listed in Annex 1 of the Directive.

5 Section 4

Schedule 1 Amendments

Part 1 General amendments

4 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

Insert:

European Union Greenhouse Gas Emission Allowance Trading

Directive means Directive 2003/87/EC of the European Parliament

and of the Council, as amended.

6 Section 4

Insert:

foreign government body means:

(a) the government of a foreign country or of part of a foreign

country; or

(b) an authority of the government of a foreign country; or

(d) a foreign local government body or foreign regional

government body.

7 Section 4

Insert:

international arrangement means an arrangement between

Australia and:

(a) a foreign government body; or

(b) an international organisation.

8 Section 4

Insert:

international organisation means:

(a)

organisation:

(i) of which 2 or more countries, or the governments of 2

or more countries, are members; or

(ii) that is constituted by persons representing 2 or more

countries, or representing the governments of 2 or more

countries; or

(b) an organisation established by, or a group of organisations

constituted by:

(i) organisations of which 2 or more countries, or the

governments of 2 or more countries, are members; or

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(ii) organisations that are constituted by the representatives

of 2 or more countries, or the governments of 2 or more

countries; or

(i) an organ of, or office within, an organisation described

in paragraph (a) or (b); or

(ii) a commission, council or other body established by an

organisation so described or by such an organ; or

(iii) a committee, or subcommittee of a committee, of an

organisation described in paragraph (a) or (b), or of such

an organ, council or body.

9 Section 4 (at the end of the definition of issue)

Add:

; or (c) in relation to an Australian-issued international unit--means

issue under section 48A.

10 Section 4 (paragraph (b) of the definition of prescribed

international unit)

Omit "country.", substitute "country; or".

11 Section 4 (after paragraph (b) of the definition of

prescribed international unit)

Insert:

(d) an Australian-issued international unit.

12 Section 4

Insert:

quarter means a period of 3 months beginning on 1 July,

1 October, 1 January or 1 April.

13 Section 4

Insert:

relinquish, in relation to an Australian-issued international unit,

means relinquish under section 66D.

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14 Subsection 21(1)

Omit "international agreement, to the extent to which it", substitute

"international agreement or international arrangement, to the extent to

which the agreement or arrangement".

15 Before section 48

Insert:

Division 1--Introduction

16 Section 48

Before:

�

This Part sets out rules about dealings with prescribed

international units.

Insert:

�

The Regulator may issue Australian-issued international units.

17 Before section 49

Insert:

Division 2--Australian-issued international units

48A Issue of Australian-issued international units

The Regulator may, on behalf of the Commonwealth, issue units,

to be known as Australian-issued international units.

Note:

See also section 48D.

48B Serial number

(1) An Australian-issued international unit is to be identified by a

unique number, to be known as the serial number of the unit.

(2) For the purposes of this section, number includes a combination

of:

(a) one or more digits; and

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No. , 2012 7

(b) one or more letters.

48C How Australian-issued international units are to be issued

(1) The Regulator is to issue an Australian-issued international unit to

a person by making an entry for the unit in a Registry account kept

by the person.

(2) An entry for an Australian-issued international unit in a Registry

account is to consist of the serial number of the unit.

(3) The Regulator must not issue an Australian-issued international

unit to a person unless the person has a Registry account.

48D When Australian-issued international units may be issued

(1) The Regulator must not issue an Australian-issued international

unit unless the conditions set out in the regulations are satisfied.

(2) Regulations made for the purpose of subsection (1) must give

effect to the principle that an Australian-issued international unit

must not be issued unless a corresponding foreign emissions unit

has been withdrawn from circulation within a foreign registry.

(3) For the purposes of this section, a corresponding foreign

emissions unit means a unit (however described) that is issued

outside Australia.

48E Regulations about Australian-issued international units

(1) The regulations may make further provision in relation to

Australian-issued international units.

(2) Regulations made for the purposes of subsection (1) may make

provision requiring a person to notify a matter to the Regulator.

(3) Subsection (2) does not limit subsection (1).

Requirement

(4) If a person is subject to a requirement under regulations made for

the purposes of subsection (1) or (2), the person must comply with

that requirement.

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8 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

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Ancillary contraventions

(5) A person must not:

(a) aid, abet, counsel or procure a contravention of

subsection (4); or

(b) induce, whether by threats or promises or otherwise, a

contravention of subsection (4); or

or party to, a contravention of subsection (4); or

(d) conspire with others to effect a contravention of

subsection (4).

Civil penalty provisions

(6) Subsections (4) and (5) are civil penalty provisions.

Note:

Part 7 provides for pecuniary penalties for breaches of civil penalty

provisions.

Division 3--General provisions

18 Section 57

Before "The regulations", insert "(1)".

19 At the end of section 57

Add:

(2) The regulations may modify this Division so far as this Division

applies to a specified class of Australian-issued international units.

20 After section 59

Insert:

59A Information about prescribed international units

As soon as practicable after the end of each quarter, the Regulator

must, for each class of prescribed international units specified in

the regulations, publish on the Regulator's website:

(a) the total number of prescribed international units of that class

for which there are entries in Registry accounts as at the end

of a quarter; and

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(b) such other information (if any) relating to the units, or to the

registered holders of the units, as is specified in the

regulations.

21 At the end of section 61

Add:

European allowance units

(5) Within 30 days after the commencement of regulations that:

(a) are made for the purposes of the definition of foreign registry

in section 4; and

(b) specify the European Union registry that is operated for the

purposes of the European Union Greenhouse Gas Emission

Allowance Trading Directive;

the Regulator must:

concise description of the characteristics of European

allowance units; and

(d) keep that statement up-to-date.

Australian-issued international units

(6) Within 30 days after the commencement of regulations made for

the purposes of section 48D, the Regulator must:

(a) publish on the Regulator's website a statement setting out a

concise description of the characteristics of Australian-issued

international units; and

(b) keep that statement up-to-date.

22 At the end of Part 5

Add:

63B Relinquishment requirement to be entered in the Information

Database

Scope

(1) This section applies if there is an entry for a person in the

Information Database in relation to a financial year.

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10 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

Relinquishment requirement

(2) If, under this Act, the person is required, during the financial year,

to relinquish a particular number of Australian-issued international

units, the Regulator must enter in the Information Database details

of the relinquishment requirement.

63C Unpaid administrative penalty to be entered in the Information

Database

Scope

(1) This section applies if:

(a) there is an entry for a person in the Information Database in

relation to a financial year; and

(b) under this Act, the person is required to relinquish a

particular number of Australian-issued international units;

and

payable by the person under section 66F in relation to

non-compliance with the relinquishment requirement remains

unpaid after the time when the penalty amount became due

for payment.

Penalty amount

(2) The Regulator must enter in the Information Database details of the

unpaid penalty amount.

63D Number of relinquished units to be entered in the Information

Database

Scope

(1) This section applies if:

(a) there is an entry for a person in the Information Database in

relation to a financial year; and

(b) under this Act, the person is required to relinquish a

particular number of Australian-issued international units;

and

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No. , 2012 11

(i) relinquishes one or more Australian-issued international

units in order to comply with the requirement; or

(ii) transfers one or more substitute units under section 66E

instead of relinquishing the Australian-issued

international units.

Units relinquished etc.

(2) As soon as practicable after receiving the notice of relinquishment

or the section 66E notice, as the case may be, the Regulator must

enter in the Information Database whichever of the following is

applicable:

(a) the total number of Australian-issued international units

relinquished;

(b) the total number of substitute units transferred under

section 66E.

Substitute unit

(3) In this section:

substitute unit has the same meaning as in section 66E.

63E Information about relinquishment requirement applicable to a

person who is not in the Information Database

Scope

(1) This section applies if:

(a) under this Act, a person is required, during a financial year,

to relinquish a particular number of Australian-issued

international units; and

(b) there is no entry for the person in the Information Database in

relation to the financial year.

Relinquishment requirement

(2) The Regulator must publish on its website:

(a) the name of the person; and

(b) details of the relinquishment requirement.

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63F Information about unpaid administrative penalties applicable to

a person who is not in the Information Database

Scope

(1) This section applies if:

(a) under this Act, a person is required to relinquish a particular

number of Australian-issued international units; and

(b) during an eligible financial year, an amount (the penalty

amount) payable by the person under section 66F in relation

to non-compliance with the relinquishment requirement

remains unpaid after the time when the penalty amount

became due for payment; and

relation to the financial year.

Penalty amount

(2) The Regulator must publish on its website:

(a) the name of the person; and

(b) details of the unpaid penalty amount.

63G Information about number of units relinquished by a person

who is not in the Information Database

Scope

(1) This section applies if:

(a) under this Act, a person is required to relinquish a particular

number of Australian-issued international units; and

(b) during a financial year, the person:

(i) relinquishes one or more Australian-issued international

units in order to comply with the requirement; or

(ii) transfers one or more substitute units under section 66E

instead of relinquishing the Australian-issued

international units; and

relation to the financial year.

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Units relinquished etc.

(2) As soon as practicable after receiving the relinquishment notice or

the section 66E notice, as the case may be, the Regulator must

publish on its website:

(a) the name of the person; and

(b) whichever of the following is applicable:

(i) the total number of Australian-issued international units

relinquished;

(ii) the total number of substitute units transferred under

section 66E.

Substitute unit

(3) In this section:

substitute unit has the same meaning as in section 66E.

23 After Part 6

Insert:

Part 6A--Cancellation of Australian-issued

international units

66A Cancellation of Australian-issued international units

Scope

(1) This section applies to an Australian-issued international unit if:

(a) there is an entry for the unit in a person's Registry account;

and

(b) the conditions set out in the regulations are satisfied.

Cancellation of unit

(2) The Regulator must cancel the unit.

(3) The Regulator must remove the entry for the unit from the person's

Registry account.

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14 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

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

subsection (2).

Part 6B--Relinquishment of Australian-issued

international units

Division 1--Introduction

66B Simplified outline

The following is a simplified outline of this Part:

�

If a person is convicted of an offence relating to fraudulent

conduct, and the issue of Australian-issued international units

is attributable to the commission of the offence, a court may

order the person to relinquish a specified number of

Australian-issued international units.

�

If a person is the registered holder of one or more

Australian-issued international units, the person may, by

electronic notice transmitted to the Regulator, relinquish any

or all of those units.

�

An administrative penalty is payable for non-compliance with

a relinquishment requirement under this Act.

Division 2--Court-ordered relinquishment

66C Units issued as a result of fraudulent conduct--court may order

relinquishment

Scope

(1) This section applies if:

(a) one or more Australian-issued international units were

issued:

(i) to a person; or

(ii) at the direction or request of a person;

on a particular occasion; and

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(b) the person has been convicted of:

(i) an offence against section 134.1, 134.2, 135.1, 135.2,

135.4, 136.1, 137.1 or 137.2 of the Criminal Code; or

(ii) an offence against a law of, or of a part of, a foreign

country that corresponds to an offence covered by

subparagraph (i); and

the units was directly or indirectly attributable to the

commission of the offence.

Note: For

appropriate court, see subsection (8).

Relinquishment

(2) The court may, on application made by the Director of Public

Prosecutions or the Regulator, order the person:

(a) to relinquish a specified number of Australian-issued

international units not exceeding the number of

Australian-issued international units issued as mentioned in

paragraph (1)(a); and

(b) to do so by a specified time.

Compliance

(3) The person must comply with an order under subsection (2).

Note:

An administrative penalty is payable under section 66F for

non-compliance with a relinquishment requirement.

(4) The person does not comply with an order under subsection (2)

unless the notice of relinquishment specifies the order.

(5) To avoid doubt, the person is required to comply with an order

under subsection (2) even if:

(a) the person is not the registered holder of any

Australian-issued international units; or

(b) the person is not the registered holder of the number of

Australian-issued international units required to be

relinquished.

Conviction

(6) It is immaterial whether the conviction occurred before, at or after

the commencement of this section.

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Copy of order

(7) A copy of an order under subsection (2) is to be given to the

Regulator.

Appropriate court

(8) For the purposes of this section, each of the following courts is an

appropriate court:

(a) if the offence is covered by subparagraph (1)(b)(i)--the court

that convicted the person of the offence;

(b) in any case--the Federal Court;

Spent convictions

(9) Nothing in this section affects the operation of Part VIIC of the

Crimes Act 1914 (which includes provisions that, in certain

circumstances, relieve persons from the requirement to disclose

spent convictions and require persons aware of such convictions to

disregard them).

Division 3--How Australian-issued international units are

relinquished

66D How Australian-issued international units are relinquished

(1) If a person is the registered holder of one or more

Australian-issued international units, the person may, by electronic

notice transmitted to the Regulator, relinquish any or all of those

units.

(2) A notice under subsection (1) must:

(a) specify the Australian-issued international unit or units that

are being relinquished; and

(b) if the Australian-issued international unit or units are being

relinquished in order to comply with a particular order under

subsection 66C(2)--specify the order; and

regulations.

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(3) If an Australian-issued international unit is relinquished by a

person:

(a) the unit is cancelled; and

(b) the Regulator must remove the entry for the unit from the

person's Registry account in which there is an entry for the

unit; and

required by the regulations.

(4) The Registry must set out a record of each notice under

subsection (1).

66E Transfer of certain units instead of relinquishment of

Australian-issued international units

Scope

(1) This section applies if, under this Act, a person is required to

relinquish a particular number of Australian-issued international

units.

Transfer of certain units instead of relinquishment

(2)

The

person

may:

(a) transfer to the Commonwealth an equal number of substitute

units; and

(b) by electronic notice transmitted to the Regulator, inform the

Regulator that the transfer is instead of the relinquishment of

the Australian-issued international units.

Note: For

substitute unit, see subsection (6).

(3) A notice under subsection (2) must:

(a) specify the substitute units that are being transferred; and

(b) specify the requirement concerned.

(4) A transfer under subsection (2) must be in accordance with the

regulations.

Consequences of transfer

(5) If the person transfers the substitute units specified in the notice

under subsection (2), this Act (other than sections 63D and 63G

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and subsection 66D(3)) has effect as if the person had relinquished

the Australian-issued international units in order to comply with

the requirement concerned.

(6) If the person transfers the substitute units specified in the notice

under subsection (2):

(a) the units are cancelled; and

(b) the Regulator must remove the entries for the units from the

person's Registry account or accounts in which there are

entries for the units; and

required by the regulations.

Substitute unit

(7) For the purposes of this section, each of the following is a

substitute unit:

(a) a carbon unit;

(b) an eligible Australian carbon credit unit (within the meaning

of the Clean Energy Act 2011).

Division 4--Compliance with relinquishment requirements

66F Compliance with relinquishment requirements

Scope

(1) This section applies if, under this Act:

(a) a person is required to relinquish a particular number of

Australian-issued international units; and

(b) the person is required to do so by a particular time (the

compliance deadline).

No units relinquished

(2) If, by the compliance deadline, the person has not relinquished any

Australian-issued international units in order to comply with the

requirement, the person is liable to pay to the Commonwealth, by

way of penalty, an amount worked out using the formula:

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Prescribed amount

Number of units

for the financial year

required to be relinquished

in which the compliance

deadline occurs

�

where:

prescribed amount for the financial year in which the compliance

deadline occurs means:

(a) if the requirement arose before the end of 31 July 2013--

$46; or

(b) if the requirement arose during the period beginning at the

start of 1 August 2013 and ending at the end of 31 July

2014--$48.30; or

start of 1 August 2014 and ending at the end of 31 July

2015--$50.80; or

(d) in any other case:

(i) if an amount is specified in the corresponding

regulations for the financial year in which the

compliance deadline occurs--that amount; or

(ii) otherwise--an amount equal to 200% of the benchmark

average auction charge for the previous financial year.

(3) In subsection (2), corresponding regulations means regulations

made for the purposes of subparagraph (d)(i) of the definition of

prescribed amount for the financial year in which the compliance

deadline occurs in subsection 212(2) of the Clean Energy Act

2011.

Relinquishment of insufficient units

(4) If, by the compliance deadline:

(a) the person has relinquished one or more Australian-issued

international units in order to comply with the requirement;

and

(b) the number of relinquished units is less than the number of

units required to be relinquished;

the person is liable to pay to the Commonwealth, by way of

penalty, an amount worked out using the formula:

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20 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

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Prescribed amount for

Number of units

Number of

the financial year in

required to be

relinquished units

which the compliance

relinquished

deadline occurs

�

where:

prescribed amount for the financial year in which the compliance

deadline occurs means:

(a) if the requirement arose before the end of 31 July 2013--

$46; or

(b) if the requirement arose during the period beginning at the

start of 1 August 2013 and ending at the end of 31 July

2014--$48.30; or

start of 1 August 2014 and ending at the end of 31 July

2015--$50.80; or

(d) in any other case:

(i) if an amount is specified in the corresponding

regulations for the financial year in which the

compliance deadline occurs--that amount; or

(ii) otherwise--an amount equal to 200% of the benchmark

average auction charge for the previous financial year.

(5) In subsection (4), corresponding regulations means regulations

made for the purposes of subparagraph (d)(i) of the definition of

prescribed amount for the financial year in which the compliance

deadline occurs in subsection 212(3) of the Clean Energy Act

2011.

When penalty becomes due and payable

(6) An amount payable under this section is due and payable at the end

of 30 days after the compliance deadline.

Compliance

(7) For the purposes of this section, a person relinquishes

Australian-issued international units in order to comply with a

particular requirement under this Act if, and only if, the notice of

relinquishment specifies the requirement.

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(8) To avoid doubt, a person may be liable to pay a penalty under this

section even if:

(a) the person is not the registered holder of any

Australian-issued international units; or

(b) the person is not the registered holder of the number of

Australian-issued international units required to be

relinquished.

66G Late payment penalty

Penalty

(1) If an amount payable by a person under section 66F remains

unpaid after the time when it became due for payment, the person

is liable to pay, by way of penalty, an amount calculated at the rate

of:

(a) 20% per annum; or

(b) if a lower rate per annum is specified in regulations made for

the purposes of paragraph 213(1)(b) of the Clean Energy Act

2011--that lower rate per annum;

on the amount unpaid, computed from that time.

Power to remit

(2) The Regulator may remit the whole or a part of an amount payable

under subsection (1) if:

(a) the Regulator is satisfied that the person did not contribute to

the delay in payment and has taken reasonable steps to

mitigate the causes of the delay; or

(b) the Regulator is satisfied:

(i) that the person contributed to the delay but has taken

reasonable steps to mitigate the causes of the delay; and

(ii) having regard to the nature of the reasons that caused

the delay, that it would be fair and reasonable to remit

some or all of the amount; or

that make it reasonable to remit some or all of the amount.

(3) The Regulator may exercise the power conferred by subsection (2):

(a) on written application being made to the Regulator by a

person; or

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(b) on the Regulator's own initiative.

Refusal

(4)

If:

(a) the Regulator decides to refuse to remit the whole or a part of

an amount payable under subsection (1); and

(b) the Regulator made the decision in response to an

application;

the Regulator must give written notice of the decision to the

applicant.

66H Recovery of penalties

An amount payable under section 66F or 66G:

(a) is a debt due to the Commonwealth; and

(b) may be recovered by the Regulator, on behalf of the

Commonwealth, by action in a court of competent

jurisdiction.

66J Set-off

If:

(a) an amount (the first amount) is payable under section 66F or

66G by a person; and

(b) the following conditions are satisfied in relation to another

amount (the second amount):

(i) the amount is payable by the Commonwealth to the

person;

(ii) the amount is of a kind specified in the regulations;

the Regulator may, on behalf of the Commonwealth, set off the

whole or a part of the first amount against the whole or a part of

the second amount.

66K Refund of overpayments

If either of the following amounts has been overpaid by a person,

the amount overpaid must be refunded by the Commonwealth:

(a) an amount payable under section 66F;

(b) an amount payable under section 66G.

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Note:

For appropriation, see section 28 of the Financial Management and

Accountability Act 1997.

Division 5--Offences relating to administrative penalties

66L Scheme to avoid existing liability to pay administrative penalty

Intention

(1) A person commits an offence if:

(a) a penalty is due and payable by a body corporate or trust

under section 66F; and

(b) at or after the time when the penalty became due and

payable, the person entered into a scheme; and

securing or achieving the result, either generally or for a

limited period, that the body corporate or trust:

(i) will be unable; or

(ii) will be likely to be unable; or

(iii) will continue to be unable; or

(iv) will be likely to continue to be unable;

having regard to the other debts of the body corporate or

trust, to pay the penalty.

Penalty: Imprisonment for 10 years or 10,000 penalty units, or

both.

(2) For the purposes of subsection (1), it is immaterial whether the

body corporate or the trustee of the trust is:

(a) the person mentioned in subsection (1); or

(b) a party to the scheme.

Knowledge or belief

(3) A person commits an offence if:

(a) a penalty is due and payable by a body corporate or trust

under section 66F; and

(b) at or after the time when the penalty became due and

payable, the person entered into a scheme; and

belief that the scheme will, or will be likely to, secure or

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24 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

achieve the result, either generally or for a limited period,

that the body corporate or trust:

(i) will be unable; or

(ii) will be likely to be unable; or

(iii) will continue to be unable; or

(iv) will be likely to continue to be unable;

having regard to the other debts of the body corporate or

trust, to pay the penalty.

Penalty: Imprisonment for 10 years or 10,000 penalty units, or

both.

(4) For the purposes of subsection (3), it is immaterial whether the

body corporate or the trustee of the trust is:

(a) the person mentioned in subsection (3); or

(b) a party to the scheme.

Objective purpose

(5) A person (the first person) commits an offence if:

(a) a penalty is due and payable by a body corporate or trust

under section 66F; and

(b) at or after the time when the penalty became due and

payable, the first person entered into a scheme; and

(i) the manner in which the scheme was entered into; and

(ii) the form and substance of the scheme, including any

legal rights and obligations involved in the scheme and

the economic and commercial substance of the scheme;

and

(iii) the timing of the scheme;

it would be reasonable to conclude that the first person

entered into the scheme for the sole or dominant purpose of

securing or achieving the result, either generally or for a

limited period, that the body corporate or trust:

(iv) will be unable; or

(v) will be likely to be unable; or

(vi) will continue to be unable; or

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(vii) will be likely to continue to be unable;

to pay the penalty.

Penalty: Imprisonment for 3 years or 850 penalty units, or both.

(6) For the purposes of subsection (5), it is immaterial whether the

body corporate or the trustee of the trust is:

(a) the first person; or

(b) a party to the scheme.

66M Scheme to avoid future liability to pay administrative penalty

Intention

(1) A person commits an offence if:

(a) a penalty is due and payable by a body corporate or trust

under section 66F; and

(b) before the penalty became due and payable, the person

entered into a scheme; and

securing or achieving the result, either generally or for a

limited period, that, in the event that the body corporate or

trust were to become liable to pay the penalty, the body

corporate or trust:

(i) will be unable; or

(ii) will be likely to be unable; or

(iii) will continue to be unable; or

(iv) will be likely to continue to be unable;

having regard to the other debts of the body corporate or

trust, to pay the penalty.

Penalty: Imprisonment for 10 years or 10,000 penalty units, or

both.

(2) For the purposes of subsection (1), it is immaterial whether the

body corporate or the trustee of the trust is:

(a) the person mentioned in subsection (1); or

(b) a party to the scheme.

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26 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

Knowledge or belief

(3) A person commits an offence if:

(a) a penalty is due and payable by a body corporate or trust

under section 66F; and

(b) before the penalty became due and payable, the person

entered into a scheme; and

belief that the scheme will, or will be likely to, secure or

achieve the result, either generally or for a limited period,

that, in the event that the body corporate or trust were to

become liable to pay the penalty, the body corporate or trust:

(i) will be unable; or

(ii) will be likely to be unable; or

(iii) will continue to be unable; or

(iv) will be likely to continue to be unable;

having regard to the other debts of the body corporate or

trust, to pay the penalty.

Penalty: Imprisonment for 10 years or 10,000 penalty units, or

both.

(4) For the purposes of subsection (3), it is immaterial whether the

body corporate or the trustee of the trust is:

(a) the person mentioned in subsection (3); or

(b) a party to the scheme.

Objective purpose

(5) A person (the first person) commits an offence if:

(a) a penalty is due and payable by a body corporate or trust

under section 66F; and

(b) before the penalty became due and payable, the first person

entered into a scheme; and

(i) the manner in which the scheme was entered into; and

(ii) the form and substance of the scheme, including any

legal rights and obligations involved in the scheme and

the economic and commercial substance of the scheme;

and

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Clean Energy Amendment (International Emissions Trading and Other Measures) Bill 2012

No. , 2012 27

(iii) the timing of the scheme;

it would be reasonable to conclude that the first person

entered into the scheme for the sole or dominant purpose of

securing or achieving the result, either generally or for a

limited period, that, in the event that the body corporate or

trust were to become liable to pay the penalty, the body

corporate or trust:

(iv) will be unable; or

(v) will be likely to be unable; or

(vi) will continue to be unable; or

(vii) will be likely to continue to be unable;

to pay the penalty.

Penalty: Imprisonment for 3 years or 850 penalty units, or both.

(6) For the purposes of subsection (5), it is immaterial whether the

body corporate or the trustee of the trust is:

(a) the first person; or

(b) a party to the scheme.

66N Meaning of scheme and trust

For the purposes of this Division, scheme and trust have the same

respective meanings as in Part 19 of the Clean Energy Act 2011.

24 Paragraph 79(1)(c)

Omit "27(4);.", substitute "27(4);".

25 At the end of subsection 79(1)

Add:

(d)

subsection

48E(4).

26 Section 82 (at the end of the table)

Add:

A decision under section 66A to cancel an Australian-issued international

unit.

A decision to refuse to remit the whole or a part of an amount under

subsection 66G(2).

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28 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

27 Before section 87

Insert:

86A Commonwealth foreign registry accounts

(1) The Commonwealth may:

(a) open and operate an account within a foreign registry; and

(b) do anything incidental to, or ancillary to, the opening or

operation of such an account.

(2) An account opened under subsection (1) is to be known as a

Commonwealth foreign registry account.

Regulator's power to act on behalf of the Commonwealth

(3) The Regulator may act on behalf of the Commonwealth in relation

to the powers conferred by subsection (1).

(4) The Minister may, by legislative instrument, give directions to the

Regulator in relation to the Regulator's powers under

subsection (3).

(5) The Regulator must not open a Commonwealth foreign registry

account on behalf of the Commonwealth unless directed to do so

under subsection (4).

Clean Energy Act 2011

28 Section 5 (definition of accept)

Repeal the definition, substitute:

accept:

(a)

accept the quotation of an OTN has the meaning given by

section 59 or 60; and

(b)

accept an own-use notification has the meaning given by

section 64D or 64E.

29 Section 5 (paragraph (g) of the definition of associated

provisions)

Repeal the paragraph.

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Clean Energy Amendment (International Emissions Trading and Other Measures) Bill 2012

No. , 2012 29

30 Section 5 (definition of auction)

Repeal the definition, substitute:

auction, when used in relation to a carbon unit, means a process

that involves inviting persons to indicate or declare what they

would be willing to pay by way of charge for the issue of the unit.

31 Section 5

Insert:

Australian-issued international unit has the same meaning as in

the Australian National Registry of Emissions Units Act 2011.

32 Section 5

Insert:

average carbon unit auction price has the meaning given by

section 196.

33 Section 5 (definition of Commonwealth relinquished units

account)

Repeal the definition.

34 Section 5

Insert:

designated limit has the meaning given by section 123A.

35 Section 5

Insert:

designated limit percentage, in relation to a designated limit, has

the meaning given by section 123A.

36 Section 5

Insert:

European allowance unit has the same meaning as in the

Australian National Registry of Emissions Units Act 2011.

37 Section 5

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30 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

Insert:

follow-up notification has the meaning given by section 64H.

38 Section 5

Insert:

Kyoto unit has the same meaning as in the Australian National

Registry of Emissions Units Act 2011.

39 Section 5

Insert:

own-use notification has the meaning given by section 64C.

40 Section 5

Insert:

per-tonne carbon price equivalent has the meaning given by

section 196A.

41 Section 5 (at the end of the definition of supply, before the

note)

Add:

Note 1:

See also section 5A (special meaning of supply).

42 Section 5 (note at the end of the definition of supply)

After "Note", insert "2".

43 After section 5

Insert:

5A Special meaning of supply--natural gas

(1) The regulations may provide that supply, when used in relation to

natural gas in:

(a) section 35A; and

(b) the definition of natural gas supplier in section 5 so far as

that definition relates to section 35A; and

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No. , 2012 31

section 35A; and

(d) the provisions of the National Greenhouse and Energy

Reporting Act 2007 so far as they relate to section 35A of this

Act;

includes an act or a circumstance that, under the regulations, is

taken to be a supply of natural gas.

(2) The regulations may provide that supply, when used in relation to

natural gas in:

(a) section 35A; and

(b) the definition of natural gas supplier in section 5 so far as

that definition relates to section 35A; and

section 35A; and

(d) the provisions of the National Greenhouse and Energy

Reporting Act 2007 so far as they relate to section 35A of this

Act;

does not include an act or a circumstance that, under the

regulations, is taken not to be a supply of natural gas.

(3) For the purposes of this section, the following provisions are taken

to relate to section 35A:

(a) subsections 20(14) and (15);

(b) subsections 21(8E) and (8F);

(d) subsections 23(9E) and (9F);

(e) subsections 24(8E) and (8F);

(f) subsections 25(7E) and (7F);

(g) Divisions 4A and 4B of Part 3.

(4) Regulations made for the purposes of subsection (1) or (2), in

so far as they are relevant to the calculation of a preliminary

emissions number, apply in relation to the calculation of a

preliminary emissions number of a person for: (a)

eligible financial year specified in those regulations; or

(b) a later eligible financial year.

(5) An eligible financial year specified under paragraph (4)(a) must be

later than the financial year in which the regulations are registered

under the Legislative Instruments Act 2003.

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32 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

44 Section 6

Before "For the", insert "(1)".

45 At the end of section 6

Add:

(2) The regulations may provide that, for the purposes of:

(a) section 35A; and

(b) the remaining provisions of this Act so far as they relate to

section 35A; and

Reporting Act 2007 so far as they relate to section 35A of this

Act;

the supply of natural gas occurs at the time ascertained in

accordance with the regulations instead of at the time ascertained

in accordance with subsection (1).

(3) For the purposes of this section, the following provisions are taken

to relate to section 35A:

(a) subsections 20(14) and (15);

(b) subsections 21(8E) and (8F);

(d) subsections 23(9E) and (9F);

(e) subsections 24(8E) and (8F);

(f) subsections 25(7E) and (7F);

(g) Divisions 4A and 4B of Part 3.

(4) Regulations made for the purposes of subsection (2), in so far

as they are relevant to the calculation of a preliminary

emissions number, apply in relation to the calculation of a

preliminary emissions number of a person for: (a)

eligible financial year specified in those regulations; or

(b) a later eligible financial year.

(5) An eligible financial year specified under paragraph (4)(a) must be

later than the financial year in which the regulations are registered

under the Legislative Instruments Act 2003.

46 At the end of section 20

Add:

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No. , 2012 33

Own-use notifications--no double counting

(14)

If:

(a) the facility was under the operational control of the person

throughout the eligible financial year; and

(b) during the eligible financial year, an amount of covered

emissions from the operation of the facility was attributable

to the combustion of natural gas that was supplied by a

natural gas supplier to a person (the recipient) (who may be

the person mentioned in paragraph (a)); and

emissions number for an eligible financial year; and

(d) the provisional emissions number is wholly or partly

attributable to the supply of the natural gas to the recipient;

and

(e)

either:

(i) the recipient gave the natural gas supplier an own-use

notification in relation to the supply of the natural gas;

(ii) the conditions specified in the regulations are satisfied;

the amount mentioned in paragraph (b):

(f) does not count for the purposes of subsection (1); and

(g) counts for the purposes of paragraph (4)(b).

(15)

If:

(a) the facility was under the operational control of the person

for a number of, but not all, days in the eligible financial year

(the control days); and

(b) during the control days, an amount of covered emissions

from the operation of the facility was attributable to the

combustion of natural gas that was supplied by a natural gas

supplier to a person (the recipient) (who may be the person

mentioned in paragraph (a)); and

emissions number for an eligible financial year; and

(d) the provisional emissions number is wholly or partly

attributable to the supply of the natural gas to the recipient;

and

(e)

either:

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34 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

(i) the recipient gave the natural gas supplier an own-use

notification in relation to the supply of the natural gas;

(ii) the conditions specified in the regulations are satisfied;

the amount mentioned in paragraph (b):

(f) does not count for the purposes of subsection (1); and

(g) counts for the purposes of paragraph (5)(b).

47 After subsection 21(8D)

Insert:

Own-use notifications--no double counting

(8E)

If:

(a) a designated joint venture had the facility throughout the

eligible financial year; and

(b) during the eligible financial year, an amount of covered

emissions from the operation of the facility was attributable

to the combustion of natural gas that was supplied by a

natural gas supplier to a person (the recipient) (who may be a

participant in the designated joint venture); and

emissions number for an eligible financial year; and

(d) the provisional emissions number is wholly or partly

attributable to the supply of the natural gas to the recipient;

and

(e)

either:

(i) the recipient gave the natural gas supplier an own-use

notification in relation to the supply of the natural gas;

(ii) the conditions specified in the regulations are satisfied;

the amount mentioned in paragraph (b):

(f) does not count for the purposes of subsection (1); and

(g) counts for the purposes of paragraph (4)(b).

(8F)

If:

(a) the designated joint venture had the facility for a number of,

but not all, days in the eligible financial year (the control

days); and

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No. , 2012 35

(b) during the control days, an amount of covered emissions

from the operation of the facility was attributable to the

combustion of natural gas that was supplied by a natural gas

supplier to a person (the recipient) (who may be a participant

in the designated joint venture); and

emissions number for an eligible financial year; and

(d) the provisional emissions number is wholly or partly

attributable to the supply of the natural gas to the recipient;

and

(e)

either:

(i) the recipient gave the natural gas supplier an own-use

notification in relation to the supply of the natural gas;

(ii) the conditions specified in the regulations are satisfied;

the amount mentioned in paragraph (b):

(f) does not count for the purposes of subsection (1); and

(g) counts for the purposes of paragraph (5)(b).

48 At the end of section 22

Add:

Own-use notifications--no double counting

(12)

If:

(a) the person was the holder of the liability transfer certificate

throughout the eligible financial year; and

(b) during the eligible financial year, an amount of covered

emissions from the operation of the facility was attributable

to the combustion of natural gas that was supplied by a

natural gas supplier to a person (the recipient) (who may be

the holder); and

emissions number for an eligible financial year; and

(d) the provisional emissions number is wholly or partly

attributable to the supply of the natural gas to the recipient;

and

(e)

either:

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36 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

(i) the recipient gave the natural gas supplier an own-use

notification in relation to the supply of the natural gas;

(ii) the conditions specified in the regulations are satisfied;

the amount mentioned in paragraph (b):

(f) does not count for the purposes of subsection (1); and

(g) counts for the purposes of paragraph (4)(b).

(13)

If:

(a) the person was the holder of the liability transfer certificate

for a number of, but not all, days in the eligible financial year

(the certificate days); and

(b) during the certificate days, an amount of covered emissions

from the operation of the facility was attributable to the

combustion of natural gas that was supplied by a natural gas

supplier to a person (the recipient) (who may be the holder);

and

emissions number for an eligible financial year; and

(d) the provisional emissions number is wholly or partly

attributable to the supply of the natural gas to the recipient;

and

(e)

either:

(i) the recipient gave the natural gas supplier an own-use

notification in relation to the supply of the natural gas;

(ii) the conditions specified in the regulations are satisfied;

the amount mentioned in paragraph (b):

(f) does not count for the purposes of subsection (1); and

(g) counts for the purposes of paragraph (5)(b).

49 After subsection 23(9D)

Insert:

Own-use notifications--no double counting

(9E)

If:

(a) the landfill facility was under the operational control of the

person throughout the eligible financial year; and

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Clean Energy Amendment (International Emissions Trading and Other Measures) Bill 2012

No. , 2012 37

(b) during the eligible financial year, an amount of covered

emissions from the operation of the landfill facility was

attributable to the combustion of natural gas that was

supplied by a natural gas supplier to a person (the recipient)

(who may be the person mentioned in paragraph (a)); and

emissions number for an eligible financial year; and

(d) the provisional emissions number is wholly or partly

attributable to the supply of the natural gas to the recipient;

and

(e)

either:

(i) the recipient gave the natural gas supplier an own-use

notification in relation to the supply of the natural gas;

(ii) the conditions specified in the regulations are satisfied;

the amount mentioned in paragraph (b):

(f) does not count for the purposes of subsection (1); and

(g) counts for the purposes of paragraph (4)(b).

(9F)

If:

(a) the landfill facility was under the operational control of the

person for a number of, but not all, days in the eligible

financial year (the control days); and

(b) during the control days, an amount of covered emissions

from the operation of the landfill facility was attributable to

the combustion of natural gas that was supplied by a natural

gas supplier to a person (the recipient) (who may be the

person mentioned in paragraph (a)); and

emissions number for an eligible financial year; and

(d) the provisional emissions number is wholly or partly

attributable to the supply of the natural gas to the recipient;

and

(e)

either:

(i) the recipient gave the natural gas supplier an own-use

notification in relation to the supply of the natural gas;

(ii) the conditions specified in the regulations are satisfied;

the amount mentioned in paragraph (b):

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38 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

(f) does not count for the purposes of subsection (1); and

(g) counts for the purposes of paragraph (5)(b).

50 After subsection 24(8D)

Insert:

Own-use notifications--no double counting

(8E)

If:

(a) the designated joint venture had the landfill facility

throughout the eligible financial year; and

(b) during the eligible financial year, an amount of covered

emissions from the operation of the landfill facility was

attributable to the combustion of natural gas that was

supplied by a natural gas supplier to a person (the recipient)

(who may be a participant in the designated joint venture);

and

emissions number for an eligible financial year; and

(d) the provisional emissions number is wholly or partly

attributable to the supply of the natural gas to the recipient;

and

(e)

either:

(i) the recipient gave the natural gas supplier an own-use

notification in relation to the supply of the natural gas;

(ii) the conditions specified in the regulations are satisfied;

the amount mentioned in paragraph (b):

(f) does not count for the purposes of subsection (1); and

(g) counts for the purposes of paragraph (4)(b).

(8F)

If:

(a) the designated joint venture had the landfill facility for a

number of, but not all, days in the eligible financial year (the

control days); and

(b) during the control days, an amount of covered emissions

from the operation of the landfill facility was attributable to

the combustion of natural gas that was supplied by a natural

gas supplier to a person (the recipient) (who may be a

participant in the designated joint venture); and

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Clean Energy Amendment (International Emissions Trading and Other Measures) Bill 2012

No. , 2012 39

emissions number for an eligible financial year; and

(d) the provisional emissions number is wholly or partly

attributable to the supply of the natural gas to the recipient;

and

(e)

either:

(i) the recipient gave the natural gas supplier an own-use

notification in relation to the supply of the natural gas;

(ii) the conditions specified in the regulations are satisfied;

the amount mentioned in paragraph (b):

(f) does not count for the purposes of subsection (1); and

(g) counts for the purposes of paragraph (5)(b).

51 After subsection 25(7D)

Insert:

Own-use notifications--no double counting

(7E)

If:

(a) the person was the holder of the liability transfer certificate

throughout the eligible financial year; and

(b) during the eligible financial year, an amount of covered

emissions from the operation of the landfill facility was

attributable to the combustion of natural gas that was

supplied by a natural gas supplier to a person (the recipient)

(who may be the holder); and

emissions number for an eligible financial year; and

(d) the provisional emissions number is wholly or partly

attributable to the supply of the natural gas to the recipient;

and

(e)

either:

(i) the recipient gave the natural gas supplier an own-use

notification in relation to the supply of the natural gas;

(ii) the conditions specified in the regulations are satisfied;

the amount mentioned in paragraph (b):

(f) does not count for the purposes of subsection (1); and

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40 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

(g) counts for the purposes of paragraph (4)(b).

(7F)

If:

(a) the person was the holder of the liability transfer certificate

for a number of, but not all, days in the eligible financial year

(the certificate days); and

(b) during the certificate days, an amount of covered emissions

from the operation of the landfill facility was attributable to

the combustion of natural gas that was supplied by a natural

gas supplier to a person (the recipient) (who may be the

holder); and

emissions number for an eligible financial year; and

(d) the provisional emissions number is wholly or partly

attributable to the supply of the natural gas to the recipient;

and

(e)

either:

(i) the recipient gave the natural gas supplier an own-use

notification in relation to the supply of the natural gas;

(ii) the conditions specified in the regulations are satisfied;

the amount mentioned in paragraph (b):

(f) does not count for the purposes of subsection (1); and

(g) counts for the purposes of paragraph (5)(b).

52 After section 35

Insert:

35A Liable entity--regulations relating to supply of natural gas

Preliminary emissions number

(1) The regulations may provide that, if:

(a)

during:

(i) a specified eligible financial year; or

(ii) a later eligible financial year;

a natural gas supplier supplies an amount of natural gas to

another person (the recipient); and

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Clean Energy Amendment (International Emissions Trading and Other Measures) Bill 2012

No. , 2012 41

(b) no preliminary emissions number under section 33 or 35 is

wholly or partly attributable to:

(i) that supply of the natural gas; or

(ii) any previous supply of the natural gas; and

number under section 20, 21, 22, 23, 24 or 25 will be wholly

or partly attributable to covered emissions from the use of the

natural gas; and

(d) the conditions specified in the regulations are satisfied; and

(e) the potential greenhouse gas emissions embodied in the

amount mentioned in paragraph (a) have a carbon dioxide

equivalence of a particular number of tonnes;

that number is a preliminary emissions number of the natural gas

supplier for the eligible financial year.

Provisional emissions number and liable entity

(2) If the natural gas supplier has, under regulations made for the

purposes of subsection (1), one or more preliminary emissions

numbers for the eligible financial year, then, for the purposes of

this Act:

(a) the sum of the preliminary emissions numbers is a

provisional emissions number of the natural gas supplier for

the eligible financial year; and

(b) the natural gas supplier is a liable entity for the eligible

financial year.

Reduction of provisional emissions number

(3)

If:

(a) the natural gas supplier has, under subsection (2), a

provisional emissions number for an eligible financial year;

and

(b) the natural gas supplier has one or more netted-out numbers

for the eligible financial year (see subsections (4) and (5));

the provisional emissions number is to be reduced (but not below

zero) by the total of those netted-out numbers.

Netted-out numbers

(4)

If:

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42 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

2012 No. , 2012

(a) a natural gas supplier has, under subsection (1), a preliminary

emissions number for an eligible financial year; and

(b) the preliminary emissions number is attributable to the

supply by the natural gas supplier of an amount of natural gas

to another person (the recipient); and

recipient has given a follow-up notification to the natural gas

supplier in relation to one or more parts of the amount

mentioned in paragraph (b); and

(d) the potential greenhouse gas emissions embodied in the

remainder of the amount mentioned in paragraph (b) have a

carbon dioxide equivalence of a particular number of tonnes;

the number mentioned in paragraph (d) is a netted-out number of

the natural gas supplier for the eligible financial year.

(5) The regulations may provide that, for the purposes of this section, a

number ascertained in accordance with the regulations is a

netted-out number of a natural gas supplier for an eligible

financial year ascertained in accordance with the regulations.

Specified eligible financial year

(6) The eligible financial year specified under paragraph (1)(a) must

be later than the financial year in which the regulations are

registered under the Legislative Instruments Act 2003.

Own-use notification

(7) A condition specified in regulations made for the purposes of

paragraph (1)(d) may be a condition that the recipient has given an

own-use notification to the natural gas supplier in relation to the

supply of the natural gas.

(8) Subsection (7) does not limit paragraph (1)(d).

No double counting

(9) For the purposes of paragraph (1)(c), disregard the following

provisions:

(a) subsections 20(14) and (15);

(b) subsections 21(8E) and (8F);

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(d) subsections 23(9E) and (9F);

(e) subsections 24(8E) and (8F);

(f) subsections 25(7E) and (7F).

Preliminary emissions number

(10) For the purposes of this Act, a preliminary emissions number under

regulations made for the purposes of subsection (1) is taken to be a

preliminary emissions number under this section.

35B Liable entity--regulations relating to application of natural gas

to own use

(1) The regulations may provide that, if:

(a)

during:

(i) a specified eligible financial year; or

(ii) a later eligible financial year;

a person applies an amount of natural gas to the person's own

use; and

(b) greenhouse gas is released into the atmosphere as a direct

result of the application of the amount of natural gas to the

person's own use; and

wholly or partly attributable to any supply of the natural gas;

and

(d) no provisional emissions number under section 35A is

wholly or partly attributable to any supply of the natural gas;

and

(e) no provisional emissions number under section 20, 21, 22,

23, 24 or 25 is wholly or partly attributable to covered

emissions from the use of the natural gas; and

(f) the conditions specified in the regulations are satisfied; and

(g) the potential greenhouse gas emissions embodied in the

amount mentioned in paragraph (a) have a carbon dioxide

equivalence of a particular number of tonnes;

then, for the purposes of this Act:

(h) that number is a provisional emissions number of the person

for the eligible financial year; and

(i) the person is a liable entity for the eligible financial year.

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Specified eligible financial year

(2) The eligible financial year specified under paragraph (1)(a) must

be later than the financial year in which the regulations are

registered under the Legislative Instruments Act 2003.

Provisional emissions number

(3) For the purposes of this Act, a provisional emissions number under

regulations made for the purposes of subsection (1) is taken to be a

provisional emissions number under this section.

Liable entity

(4) For the purposes of this Act, a person who is a liable entity under

regulations made for the purposes of subsection (1) is taken to be a

liable entity under this section.

53 After Division 4 of Part 3

Insert:

Division 4A--Own-use notifications

64A Voluntary own-use notification

If the conditions specified in the regulations are satisfied, a person

(the recipient) may give an own-use notification to a natural gas

supplier in relation to a supply of natural gas by the natural gas

supplier to the recipient.

64B Mandatory own-use notification

(1) If the conditions specified in the regulations are satisfied, a person

(the recipient) must give an own-use notification to a natural gas

supplier in relation to a supply of natural gas by the natural gas

supplier to the recipient.

Civil penalty provision

(2) Subsection (1) is a civil penalty provision.

Note:

Part 17 provides for pecuniary penalties for breaches of civil penalty

provisions.

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64C Method of giving own-use notification

(1) A person (the recipient) gives an own-use notification to a natural

gas supplier in relation to a supply of natural gas by the natural gas

supplier to the recipient if:

(a) the recipient makes a statement to the natural gas supplier in

connection with:

(i) the supply; or

(ii) a class of supplies that includes the supply; and

(b) the statement is in writing; and

(i) the words "clean energy scheme--own-use

notification"; and

(ii) the name of the recipient; and

(iii) if the recipient has an ABN--the ABN; and

(iv) such other information (if any) as is specified in the

regulations.

(2) A statement under subsection (1) may be included in a contract,

order or similar document, whether or not in electronic form.

64D Acceptance of own-use notification in relation to a single supply

Scope

(1) This section applies if a person (the recipient) gives an own-use

notification to a natural gas supplier in relation to a single supply.

Acceptance of own-use notification

(2) If the conditions set out in the regulations are satisfied, the natural

gas supplier may, by written notice given to the recipient, accept

the own-use notification.

(3) If the conditions set out in the regulations are satisfied, the natural

gas supplier must, by written notice given to the recipient, accept

the own-use notification.

(4) A notice given by the natural gas supplier under subsection (2) or

(3) must set out:

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(a) the words "clean energy scheme--acceptance of own-use

notification"; and

(b) the name of the recipient; and

(d) a description of the supply; and

(e) the name of the natural gas supplier; and

(f) if the natural gas supplier has an ABN--the ABN; and

(g) such other information (if any) as is specified in the

regulations.

(5) A notice under subsection (2) or (3) may be included in a contract,

order or similar document, whether or not in electronic form.

(6) If the natural gas supplier does not accept the own-use notification,

this Act (other than this section) has effect as if the recipient had

not given the own-use notification to the natural gas supplier in

relation to the supply.

Civil penalty provision

(7) Subsection (3) is a civil penalty provision.

Note:

Part 17 provides for pecuniary penalties for breaches of civil penalty

provisions.

64E Acceptance of own-use notification in relation to a class of

supplies

Scope

(1) This section applies if a person (the recipient) gives an own-use

notification to a natural gas supplier in relation to a particular class

of supplies.

Acceptance of own-use notification

(2) If the conditions set out in the regulations are satisfied, the natural

gas supplier may, by written notice given to the recipient, accept

the own-use notification.

(3) If the conditions set out in the regulations are satisfied, the natural

gas supplier must, by written notice given to the recipient, accept

the own-use notification.

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(4) A notice given by the natural gas supplier under subsection (2) or

(3) must set out:

(a) the words "clean energy scheme--acceptance of own-use

notification"; and

(b) the name of the recipient; and

(d) a description of the class of supplies; and

(e) the name of the natural gas supplier; and

(f) if the natural gas supplier has an ABN--the ABN; and

(g) such other information (if any) as is specified in the

regulations.

(5) A notice under subsection (2) or (3) may be included in a contract,

order or similar document, whether or not in electronic form.

(6) If the natural gas supplier does not accept the own-use notification,

this Act (other than this section) has effect as if the recipient had

not given the own-use notification to the natural gas supplier in

relation to each supply included in the class of supplies.

Civil penalty provision

(7) Subsection (3) is a civil penalty provision.

Note:

Part 17 provides for pecuniary penalties for breaches of civil penalty

provisions.

64F Misuse of own-use notification

(1) A person (the recipient) must not give an own-use notification to a

natural gas supplier in relation to a supply of natural gas by the

natural gas supplier to the recipient unless:

(a) the recipient is permitted to do so by section 64A; or

(b) the recipient is required to do so by section 64B.

(2) If the recipient breaches subsection (1), this Act (other than this

section) has effect as if the recipient had not given an own-use

notification to the natural gas supplier in relation to the supply of

natural gas concerned.

Civil penalty provision

(3) Subsection (1) is a civil penalty provision.

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Note:

Part 17 provides for pecuniary penalties for breaches of civil penalty

provisions.

Division 4B--Follow-up notifications

64G Follow-up notification

(1) If the conditions specified in the regulations are satisfied, a person

(the recipient) may give a follow-up notification to a natural gas

supplier in relation to one or more parts of an amount of natural

gas supplied by the natural gas supplier to the recipient.

(2) The recipient is not entitled to give more than one follow-up

notification to the natural gas supplier in connection with the

amount of natural gas supplied by the natural gas supplier to the

recipient.

64H Method of giving follow-up notification

(1) A person (the recipient) gives a follow-up notification to a natural

gas supplier in relation to one or more parts (the relevant parts) of

an amount of natural gas supplied by the natural gas supplier to the

recipient if:

(a) the recipient makes a statement to the natural gas supplier in

connection with the relevant parts; and

(b) the statement is in writing; and

(d) the statement sets out:

(i) the words "clean energy scheme--follow-up

notification"; and

(ii) the name of the recipient; and

(iii) if the recipient has an ABN--the ABN; and

(iv) such other information (if any) as is specified in the

regulations.

(2) A statement under subsection (1) may be included in a document,

whether or not in electronic form.

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64J Misuse of follow-up notification

(1) A person (the recipient) must not give a follow-up notification to a

natural gas supplier in relation to one or more parts (the relevant

parts) of an amount of natural gas supplied by the natural gas

supplier to the recipient unless the recipient is permitted to do so

by section 64G.

(2) If the recipient breaches subsection (1), this Act (other than this

section) has effect as if the recipient had not given a follow-up

notification to the natural gas supplier in relation the relevant parts.

Civil penalty provision

(3) Subsection (1) is a civil penalty provision.

Note:

Part 17 provides for pecuniary penalties for breaches of civil penalty

provisions.

54 Subparagraph 92A(4)(b)(i)

After "a GST joint venture", insert ", or the joint venture operator of a

GST joint venture,".

55 At the end of subparagraph 92A(4)(b)(ii)

Add "or the joint venture operator of the GST joint venture".

56 Paragraph 92A(4)(b)

After "GST joint venture" (last occurring), insert ", or the joint venture

operator of the GST joint venture,".

57 After subsection 92A(8)

Insert:

(8A) For the purposes of this section, joint venture operator has the

same meaning as in the Fuel Tax Act 2006.

58 Subsection 101(1)

Omit "15 million", substitute "20 million".

59 After subsection 101(1)

Insert:

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(1A) Subsection (1) does not apply to carbon units with the vintage year

beginning on 1 July 2015 that are issued as a result of auctions that

are conducted by the Regulator during the financial year beginning

on 1 July 2013.

(1B) The Regulator must ensure that not more than 40 million carbon

units with the vintage year beginning on 1 July 2015 are issued as a

result of auctions that were conducted by the Regulator during the

financial year beginning on 1 July 2013 if there are no regulations

in effect that declare the carbon pollution cap, and the carbon

pollution cap number, for the vintage year.

60 Subsection 101(2)

Omit "15 million", substitute "20 million".

61 At the end of section 101

Add:

(3) The Regulator must ensure that no carbon units with a particular

vintage year are issued as a result of auctions that were conducted

by the Regulator during a financial year if the financial year begins

more than 36 months before the start of the vintage year.

62 Paragraph 102(1)(a)

After "year", insert "(the relevant vintage year)".

63 Paragraphs 102(1)(b) and (c)

Omit "that vintage year", substitute "the relevant vintage year".

64 Subsection 102(1)

Omit "carbon pollution cap number for that vintage year.", substitute:

sum of:

(d) the carbon pollution cap number for the relevant vintage

year; and

(e) the total number of carbon units with the relevant vintage

year that were relinquished before the start of the relevant

vintage year; and

(f) the total number of carbon units with the relevant vintage

year, or with an earlier vintage year, that were relinquished

during the relevant vintage year.

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65 Subsection 102(3)

Repeal the subsection.

66 Subsection 111(5)

Omit all the words from and including "so long as" to and including

"that reserve charge amount", substitute "so long as, in a case where

there is a reserve charge amount in relation to the auction (see

subsection (6A)), the amount the person indicated or declared, in the

course of the auction, that the person would be willing to pay by way of

charge for the issue of the unit is not less than that reserve charge

amount".

67 After subsection 111(6)

Insert:

(6A) The Minister may, by legislative instrument, determine that, for the

purposes of subsection (5), the reserve charge amount in relation

to a specified auction is the amount ascertained in accordance with

the determination.

68 Section 112

Repeal the section.

69 Paragraph 113(2)(m)

Repeal the paragraph.

70 Paragraph 113(2)(r)

Omit "in the case of an auction under section 111--".

71 Paragraph 113(2)(r)

Omit "charges;", substitute "charges.".

72 Paragraph 113(2)(s)

Repeal the paragraph.

73 Section 121

Omit:

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�

An eligible international emissions unit cannot be surrendered

in relation to the first 3 flexible charge years unless the person

pays the charge imposed on that surrender.

74 Section 121 (note 1)

Omit "Note 1", substitute "Note".

75 Section 121 (note 2)

Repeal the note.

76 After subsection 123(1)

Insert:

(1A) In making a recommendation to the Governor-General about

regulations to be made for the purposes of subsection (1), the

Minister must have regard to any relevant report given to the

Minister by the Climate Change Authority under Part 22.

77 Paragraph 123(2)(d)

Repeal the paragraph.

78 After paragraph 123(2)(e)

Insert:

(ea) the extent to which the regulations would facilitate linking of

the scheme embodied in this Act and the associated

provisions with other emissions trading schemes; and

79 After section 123

Insert:

123A Designated limit

General rule--units other than listed units

(1) The regulations may declare that:

(a) eligible international emissions units (other than listed units)

included in a specified class of eligible international

emissions units are subject to a designated limit for:

(i) a specified eligible financial year; and

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(ii) each later eligible financial year; and

(b) a specified percentage is the designated limit percentage

applicable to that designated limit.

Note: For

listed unit, see subsection (8).

(2) Each designated limit must be identified in the regulations by a

unique name.

(3) The specified eligible financial year must not be earlier than the

eligible financial year beginning on 1 July 2015.

(4) The specified eligible financial year must be later than the second

eligible financial year after the eligible financial year in which the

regulations are registered under the Legislative Instruments Act

2003.

(5) However, if the Minister is satisfied that it is appropriate to do so

in order to give effect to:

(a) an international agreement; or

(b) an international arrangement (within the meaning of the

Australian National Registry of Emissions Units Act 2011);

(d) the termination of such an agreement or arrangement;

the specified eligible financial year may be the eligible financial

year next following the eligible financial year in which the

regulations are registered under the Legislative Instruments Act

2003.

Special rule--listed units

(6) The following provisions have effect:

(a) eligible international emissions units that are listed units are

subject to a designated limit for:

(i) the eligible financial year beginning on 1 July 2015; and

(ii) each later eligible financial year; and

(b)

the

designated limit percentage applicable to that designated

limit for the eligible financial year concerned is:

(i)

12.5%;

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(ii) if the eligible financial year begins on or after 1 July

2020, and the regulations specify another percentage for

that year--that other percentage; and

designated limit.

(7) A percentage must not be specified for an eligible financial year in

regulations made for the purposes of subparagraph (6)(b)(ii) unless

the eligible financial year is later than the eligible financial year in

which the regulations are registered under the Legislative

Instruments Act 2003.

Listed unit

(8) For the purposes of this section, listed unit means:

(a) a Kyoto unit; or

(b) an eligible international emissions unit included in a class of

eligible international emissions units specified in the

regulations.

(9) Regulations made for the purposes of paragraph (8)(b) must not

specify either of the following classes of units:

(a) European allowance units;

(b) Australian-issued international units that were issued in

relation to European allowance units.

Regulations

(10) In making a recommendation to the Governor-General about

regulations to be made for the purposes of this section, the Minister

must have regard to any relevant report given to the Minister by the

Climate Change Authority under Part 22.

(11) In making a recommendation to the Governor-General about

regulations to be made for the purposes of this section, the Minister

may have regard to:

(a) Australia's international objectives; and

(b) Australia's international obligations (including obligations

under international climate change agreements); and

provisions; and

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(d) the extent to which eligible international emissions units may

be surrendered, accepted or used for the purposes of:

(i)

the

Climate Change Response Act 2002 of New

Zealand; or

(ii) the European Union emissions trading scheme; and

(e) the extent to which the regulations would facilitate linking of

the scheme embodied in this Act and the associated

provisions with other emissions trading schemes; and

(f) such other matters (if any) as the Minister considers relevant.

80 Section 124

Repeal the section.

81 Subsection 133(7)

Repeal the subsection, substitute:

Eligible international emissions units--surrender limits

(7)

If:

(a) the relevant eligible financial year is:

(i) the eligible financial year beginning on 1 July 2015; or

(ii) a later eligible financial year; and

(b) before the end of 1 February next following the relevant

eligible financial year, the person surrendered, in relation to

the relevant eligible financial year, eligible international

emissions units; and

person for the relevant eligible financial year;

this section has effect as if:

(d) the person had not, before the end of 1 February next

following the relevant eligible financial year, surrendered, in

relation to the relevant eligible financial year, the eligible

international emissions units covered by the unacceptable

designated limit situation; and

(e) the person had, before the end of 1 February next following

the next eligible financial year, surrendered, in relation to the

next eligible financial year, the eligible international

emissions units covered by the unacceptable designated limit

situation.

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Note 1:

For unacceptable designated limit situation, see subsection (7F).

Note 2:

For a special rule about the order in which units are taken to have been

surrendered, see subsection (7G).

(7A)

If:

(a) the relevant eligible financial year is:

(i) the eligible financial year beginning on 1 July 2015; or

(ii) any of the next 4 eligible financial years; and

(b) before the end of 1 February next following the relevant

eligible financial year, the person surrendered, in relation to

the relevant eligible financial year, eligible international

emissions units; and

for the relevant eligible financial year;

this section has effect as if:

(d) the person had not, before the end of 1 February next

following the relevant eligible financial year, surrendered, in

relation to the relevant eligible financial year, the eligible

international emissions units covered by the unacceptable

general limit situation; and

(e) the person had, before the end of 1 February next following

the next eligible financial year, surrendered, in relation to the

next eligible financial year, the eligible international

emissions units covered by the unacceptable general limit

situation.

Note 1:

For unacceptable general limit situation, see subsection (7E).

Note 2:

For a special rule about the order in which units are taken to have been

surrendered, see subsection (7G).

(7B) If there are 2 or more unacceptable designated limit situations of

the person for the relevant eligible financial year, subsection (7) is

to be applied separately in relation to each of those designated limit

situations:

(a) in the order ascertained in accordance with a legislative

instrument made by the Minister; or

(b) if no instrument is in force under paragraph (a)--in the order

that corresponds to the lowest-to-highest ranking of the

respective designated limit percentages applicable to the

relevant designated limits (that is, with the lowest designated

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limit percentage being ranked 1 and the second lowest

designated limit percentage being ranked 2 and so on).

(7C) For the purposes of paragraph (7B)(b), if the same designated limit

percentage is applicable to 2 or more designated limits:

(a) those designated limit percentages are to be ranked in the

order that corresponds to the alphabetical order of the names

of the respective designated limits (for example, with a

percentage applicable to a designated limit that has a name

beginning with the letter A being ranked 1 and a percentage

applicable to a designated limit that has a name beginning

with the letter B being ranked 2 and so on); and

(b) that ranking is taken to be a lowest-to-highest ranking of

those designated limit percentages.

(7D) Subsection (7A) is to be applied after:

(a) if there is only one unacceptable designated limit situation of

the person for the relevant eligible financial year--

subsection (7) has been applied; or

(b) if there are 2 or more unacceptable designated limit situations

of the person for the relevant eligible financial year--the last

application of subsection (7).

(7E) For the purposes of this section, if:

(a) the relevant eligible financial year is:

(i) the eligible financial year beginning on 1 July 2015; or

(ii) any of the next 4 eligible financial years; and

(b) before the end of 1 February next following the relevant

eligible financial year, the person surrendered, in relation to

the relevant eligible financial year, eligible international

emissions units; and

50% of the emissions number of the person for the relevant

eligible financial year;

then:

(d) there is an unacceptable general limit situation of the person

for the relevant financial year; and

(e) the eligible international emissions units covered by the

situation are to be ascertained as follows:

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58 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

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(i) rank the units covered by paragraph (b) in the reverse

consecutive order to the order in which the units were

surrendered (that is, with the first most recently

surrendered unit being ranked 1 and the second most

recently surrendered unit being ranked 2 and so on);

(ii) identify the units ranked with a number that is less than,

or equal to, the excess mentioned in paragraph (c);

(iii) the units identified under subparagraph (ii) of this

paragraph are the units covered by the situation.

(7F) For the purposes of this section, if:

(a) the relevant eligible financial year is:

(i) the eligible financial year beginning on 1 July 2015; or

(ii) a later eligible financial year; and

(b) before the end of 1 February next following the relevant

eligible financial year, the person surrendered, in relation to

the relevant eligible financial year, eligible international

emissions units; and

subject to a particular designated limit for the relevant

eligible financial year; and

(d) the number of units covered by paragraph (c) exceeds the

applicable designated percentage of the emissions number of

the person for the relevant eligible financial year;

then:

(e) there is an unacceptable designated limit situation of the

person for the relevant financial year; and

(f) the eligible international emissions units covered by the

situation are to be ascertained as follows:

(i) rank the units covered by paragraph (c) in the reverse

consecutive order to the order in which the units were

surrendered (that is, with the first most recently

surrendered unit being ranked 1 and the second most

recently surrendered unit being ranked 2 and so on);

(ii) identify the units ranked with a number that is less than,

or equal to, the excess mentioned in paragraph (d);

(iii) the units identified under subparagraph (ii) of this

paragraph are the units covered by the situation.

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(7G) For the purposes of this section, if 2 or more eligible international

emissions units are surrendered at the same time, the units are

taken to have been surrendered:

(a) in the order ascertained in accordance with a legislative

instrument made by the Minister; or

(b) if no instrument is in force under paragraph (a)--in the order

that corresponds to the numeric order of the serial numbers of

the units.

82 Before subsection 196(1)

Insert:

11 months ending on 31 May 2015

(1AA) Within 7 business days after the end of 31 May 2015, the

Regulator must publish on its website the amount worked out to 2

decimal places (rounding up if the third decimal place is 5 or more)

using the formula:

Total auction proceeds

Number of units issued

as the result of auctions

where:

number of units issued as the result of auctions means the total

number of carbon units that were issued as the result of auctions

conducted by the Regulator during the 11-month period ending at

the end of May 2015.

total auction proceeds means the total amount paid or payable by

way of charges for the issue of carbon units that were issued as the

result of auctions conducted by the Regulator during the 11-month

period ending at the end of May 2015.

(1AB) For the purposes of this Act, the amount worked out under

subsection (1AA) is taken to be the average carbon unit auction

price for the 6-month period ending at the end of May 2015.

83 Paragraph 196(1)(a)

Omit "2015", substitute "2016".

84 After subsection 196(1)

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Insert:

(1A) For the purposes of this Act, the amount worked out under

subsection (1) is taken to be the average carbon unit auction price

for the 6-month period ending at the end of that May.

85 After subsection 196(2)

Insert:

(2A) For the purposes of this Act, the amount worked out under

subsection (2) is taken to be the average carbon unit auction price

for the 6-month period ending at the end of that November.

86 After section 196

Insert:

196A Per-tonne carbon price equivalent

(1) Within 7 business days after the end of each designated 6-month

period, the Regulator must publish on its website the per-tonne

carbon price equivalent for the designated 6-month period.

Note: For

designated 6-month period, see subsection (18).

Per-tonne carbon price equivalent--basic rule

(2)

The

per-tonne carbon price equivalent for a designated 6-month

period is to be worked out to 2 decimal places (rounding up if the

third decimal place is 5 or more) using the formula:

Total of adjusted

Total of designated

Average carbon unit

reference prices

limit percentages

auction price

�

where:

average carbon unit auction price means the average carbon unit

auction price for the designated 6-month period.

total of adjusted reference prices means the total of the adjusted

reference prices for the designated 6-month period.

total of designated limit percentages means the total of the

designated limit percentages for the classes of eligible international

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emissions units that are subject to designated limits for the

financial year in which the designated 6-month period ends.

(3) Subsection (2) has effect subject to subsection (4).

Per-tonne carbon price equivalent--special rule

(4)

If:

(a) no instrument is in force under subsection (6) at the end of a

particular designated 6-month period; or

(b) the per-tonne carbon price equivalent worked out under

subsection (2) for a particular designated 6-month period is

greater than the average carbon unit auction price for the

designated 6-month period;

the per-tonne carbon price equivalent for the designated 6-month

period is equal to the average carbon unit auction price for the

designated 6-month period.

Reference prices

(5)

If:

(a) a particular class of eligible international emissions units is

subject to a designated limit for a particular financial year;

and

(b) a designated 6-month period ends in the financial year;

then, within 7 days after the end of the designated 6-month period,

the Regulator must, by writing, declare that a specified amount is

the reference price for the class of units for the designated

6-month period.

(6) The Minister may, by legislative instrument, determine the method

that is to be used by the Regulator in making a declaration under

subsection (5).

(7) In making a determination under subsection (6), the Minister must

have regard to:

(a) prices paid (whether in or outside Australia) for eligible

international emissions units included in each of the relevant

classes of eligible international emissions units; and

(b) such other matters (if any) as the Minister considers relevant.

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(8) In making a declaration under subsection (5), the Regulator must

comply with a determination in force under subsection (6).

(9) The Regulator must publish a copy of a declaration under

subsection (5) on the Regulator's website.

(10) A declaration made under subsection (5) is not a legislative

instrument.

Adjusted reference price

(11) For the purposes of this section, if there is a reference price for a

class of eligible international emissions units for a designated

6-month period, the adjusted reference price for the class of

eligible international emissions units for the designated 6-month

period is worked out using the formula:

Reference price

Designated limit percentage

�

where:

designated limit percentage means the designated limit percentage

for the class of eligible international emissions units for the

financial year in which the designated 6-month period ends.

reference price means the reference price for the class of eligible

international emissions units for the designated 6-month period.

Modifications of formula etc.

(12)

If:

(a) there is a reference price for a class of eligible international

emissions units for a designated 6-month period; and

(b) the reference price is higher than the average carbon unit

auction price for the designated 6-month period;

then:

international emissions units for the designated 6-month

period is to be disregarded for the purposes of the total of

adjusted reference prices component of the formula in

subsection (2); and

(d) the designated limit percentage for the class of eligible

international emissions units for the financial year in which

the designated 6-month period ends is to be disregarded for

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the purposes of the total of designated limit percentages

component of the formula in subsection (2).

(13)

If:

(a) a class of eligible international emissions units (the principal

class) is subject to a designated limit for a particular financial

year; and

(b) there is a class of eligible international emissions units (the

secondary class) that:

(i) is included in the principal class; and

(ii) is subject to another designated limit for the financial

year;

the designated limit percentage for the secondary class of eligible

international emissions units for the financial year is to be

disregarded for the purposes of the total of designated limit

percentages component of the formula in subsection (2).

(14)

If:

(a) a class of eligible international emissions units (the principal

class) is subject to a designated limit for a particular financial

year; and

(b) a designated 6-month period ends in the financial year; and

secondary class) that:

(i) is included in the principal class; and

(ii) is subject to another designated limit for the financial

year; and

(d) the reference price for the secondary class of units for the

designated 6-month period is greater than or equal to the

reference price for the principal class of units for the

designated 6-month period;

the adjusted reference price for the secondary class of units for the

designated 6-month period is to be disregarded for the purposes of

the total of adjusted reference prices component of the formula in

subsection (2).

(15) For the purposes of this section, if:

(a) a class of eligible international emissions units (the principal

class) is subject to a designated limit for a particular financial

year; and

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64 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

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(b) a designated 6-month period ends in the financial year; and

emissions units (the secondary classes) each of which:

(i) is included in the principal class; and

(ii) is subject to another designated limit for the financial

year; and

(iii) has a reference price for the designated 6-month period

that is less than the reference price for the principal

class of units for the designated 6-month period;

the adjusted reference price for the principal class of units for the

designated 6-month period is taken to be the amount worked out

using the following formula (instead of the amount worked out

under subsection (11)):

Total of designated

Designated

Reference price

limit percentages

limit percentage

for principal class

for secondary

for principal class

classes

�

where:

designated limit percentage for principal class means the

designated limit percentage for the principal class of units for the

financial year.

reference price for principal class means the reference price for

the principal class of units for the designated 6-month period.

total of designated limit percentages for secondary classes means

the total of the designated limit percentages for the secondary

classes of units for the financial year.

Interpretation

(16) For the purposes of this section, if:

(a) a particular class of eligible international emissions units is

subject to a designated limit for a particular financial year;

and

(b) a designated limit percentage is applicable to that designated

limit;

then:

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limit percentage for the class of eligible international

emissions units for the financial year; and

(d) the class of eligible international emissions units is taken to

be subject to the designated limit percentage.

(17) For the purposes of this section, listed units form a single class of

eligible international emissions units.

(18) In this section:

adjusted reference price:

(a) has the meaning given by subsection (11); and

(b) has a meaning affected by subsection (15).

class of eligible international emissions units means:

(a) the class mentioned in subsection (17); or

(b) a class specified in regulations made for the purposes of

subsection 123A(1).

designated 6-month period means:

(a) the 6-month period ending at the end of May 2015; or

(b) each later 6-month period ending at the end of May; or

(d) each later 6-month period ending at the end of November.

listed unit has the same meaning as in section 123A.

reference price has the meaning given by subsection (5).

87 Subsections 210(3) and (4)

Repeal the subsections, substitute:

(3) If a carbon unit is relinquished by a person:

(a) the unit is cancelled; and

(b) the Regulator must remove the entry for the unit from the

person's Registry account in which there is an entry for the

unit.

88 After paragraph 262(1)(m)

Insert:

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66 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

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(ma)

subsection

64B(1);

(mb)

subsection

64D(3);

(mc)

subsection

64E(3);

(md)

subsection

64F(1);

(me)

subsection

64J(1);

89 Paragraphs 288(1)(f) and (g)

Repeal the paragraphs.

90 Paragraphs 293(4)(f) and (g)

Repeal the paragraphs.

91 Paragraph 307(9)(e)

Omit "2011;", substitute "2011.".

92 Paragraph 307(9)(f)

Repeal the paragraph.

Fuel Tax Act 2006

93 Paragraphs 43-8(2)(a) and (b)

Repeal the paragraphs, substitute:

(a) is the per-tonne carbon price equivalent worked out under

section 196A of the Clean Energy Act 2011 for the 6-month

period ending at the end of:

(i) the last May before the start of the half-year, if the

half-year starts on 1 July (in 2015 or a later year); or

(ii) the last November before the start of the half-year, if the

half-year starts on 1 January (in 2016 or a later year);

and

(b) is the first per-tonne carbon price equivalent that is worked

out under that section for that 6-month period and published

under that section.

National Greenhouse and Energy Reporting Act 2007

94 Subsection 12(3)

Omit "the chief executive officer", substitute "an executive officer".

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Part 2--Amendments relating to fuel

Clean Energy Act 2011

96 Section 5 (paragraph (b) of the definition of provisional

emissions number)

After "by", insert "subsections 10(6) and (8) and".

National Greenhouse and Energy Reporting Act 2007

97 Section 7

Insert:

liquefied natural gas has the meaning given by the regulations.

98 Section 7

Insert:

liquefied petroleum gas has the meaning given by the regulations.

99 Section 7

Insert:

natural gas supplier has the same meaning as in the Clean Energy

Act 2011.

100 Section 7

Insert:

Opt-in Scheme has the same meaning as in the Clean Energy Act

2011.

101 Section 7

Insert:

OTN has the same meaning as in the Clean Energy Act 2011.

102 Section 7

Insert:

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supply has the same meaning as in the Clean Energy Act 2011.

103 Section 7

Insert:

taxable fuel has the same meaning as in the Clean Energy Act

2011.

104 Section 10 (heading)

Repeal the heading, substitute:

10 Emissions, energy production, energy consumption, fuel supplied

etc.

105 At the end of section 10

Add:

Measuring and adjusting fuel supplied etc.

(5) The Minister may determine, by legislative instrument, methods, or

criteria for methods, by which the following:

(a) the amounts of natural gas supplied by a natural gas supplier;

(b) the amounts of a particular kind of taxable fuel acquired,

manufactured or imported by a person;

manufactured, produced or supplied by a person;

(d) the amounts of liquefied natural gas imported, manufactured,

produced or supplied by a person;

are to be measured for the purposes of this Act and the Clean

Energy Act 2011, and may specify:

(e) different methods or criteria for different circumstances; and

(f) conditions relating to the use of methods determined by the

Minister or of methods which meet criteria determined by the

Minister; and

(g) rating systems for those methods (including different rating

systems for different circumstances); and

(h) the particular rating given to each of those methods.

(6) The Minister may determine, by legislative instrument, that, if:

(a) under a specified provision of:

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70 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

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(i) Division 3 or 3A of Part 3 of the Clean Energy Act

2011; or

(ii) the Opt-in Scheme;

there is a provisional emissions number of a person for an

eligible financial year; and

(b) under the same provision of:

(i) Division 3 or 3A of Part 3 of the Clean Energy Act

2011; or

(ii) the Opt-in Scheme;

as the case may be, there is a provisional emissions number

of the person for the previous eligible financial year; and

paragraph (b):

(i) was calculated using a determination under

subsection (5) of this section; and

(ii) exceeds the number that would have been the

provisional emissions number mentioned in

paragraph (b) if that number had not been calculated

using the determination; and

(d) the conditions specified in the determination are satisfied;

the provisional emissions number mentioned in paragraph (a) is

taken, for the purposes of this Act and the Clean Energy Act 2011,

to be reduced by a number ascertained in accordance with the

determination.

(7) The number ascertained in accordance with a determination under

subsection (6) must not exceed the excess mentioned in

paragraph (6)(c).

(8) The Minister may determine, by legislative instrument, that, if:

(a) under a specified provision of:

(i) Division 3 or 3A of Part 3 of the Clean Energy Act

2011; or

(ii) the Opt-in Scheme;

there is a provisional emissions number of a person for an

eligible financial year; and

(b) under the same provision of:

(i) Division 3 or 3A of Part 3 of the Clean Energy Act

2011; or

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(ii) the Opt-in Scheme;

as the case may be, there is a provisional emissions number

of the person for the previous eligible financial year; and

paragraph (b):

(i) was calculated using a determination under

subsection (5) of this section; and

(ii) falls short of the number that would have been the

provisional emissions number mentioned in

paragraph (b) if that number had not been calculated

using the determination; and

(d) the conditions specified in the determination are satisfied;

the provisional emissions number mentioned in paragraph (a) is

taken, for the purposes of this Act and the Clean Energy Act 2011,

to be increased by a number ascertained in accordance with the

determination.

(9) The number ascertained in accordance with a determination under

subsection (8) must not exceed the shortfall mentioned in

paragraph (8)(c).

106 Application of amendments

(1)

The amendments of the National Greenhouse and Energy Reporting Act

2007 made by this Part, in so far as they are relevant to reports under

that Act, apply in relation to reports for:

(a) the financial year beginning on 1 July 2013; or

(b) a later financial year.

(2)

The amendments of the National Greenhouse and Energy Reporting Act

2007 made by this Part, in so far as they are relevant to the calculation

of:

(a) an interim emissions number; or

(b) a preliminary emissions number; or

apply in relation to the calculation of an interim emissions number, a

preliminary emissions number or a provisional emissions number, as the

case may be, of a person for:

(d) the financial year beginning on 1 July 2013; or

(e) a later financial year.

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72 Clean Energy Amendment (International Emissions Trading and Other Measures) Bill

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(3)

In this item:

interim emissions number has the same meaning as in the Clean

Energy Act 2011.

preliminary emissions number has the same meaning as in the Clean

Energy Act 2011.

provisional emissions number has the same meaning as in the Clean

Energy Act 2011.

Commonwealth of Australia Bills

CLEAN ENERGY AMENDMENT (INTERNATIONAL EMISSIONS TRADING AND OTHER MEASURES) BILL 2012