CLEAN ENERGY LEGISLATION AMENDMENT BILL 2012

i Clean Energy Legislation Amendment Bill 2012 No. , 2012

Contents

1 Short

title

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

2 Commencement

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

3 Schedule(s)

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

Schedule 1--General amendments

Part 1--Amendments

Clean Energy Act 2011

National Greenhouse and Energy Reporting Act 2007

Part 2--Transitional provisions

Schedule 2--Amendments relating to gaseous fuel

Clean Energy Act 2011

Fuel Tax Act 2006

Schedule 3--Amendments relating to the carbon farming

initiative

Carbon Credits (Carbon Farming Initiative) Act 2011

Schedule 4--Amendments relating to the Australian National

Registry of Emissions Units

Australian National Registry of Emissions Units Act 2011

Schedule 5--Amendments relating to the Clean Energy

Finance Corporation

Australian Renewable Energy Agency Act 2011

Clean Energy Regulator Act 2011

Clean Energy Legislation Amendment 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 Legislation Amendment

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 Legislation Amendment 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

The later of:

(a) the start of the day after this Act receives

the Royal Assent; and

(b) immediately after the commencement of

Part 2 of Schedule 1 to the Clean Energy

(Consequential Amendments) Act 2011.

3. Schedule 2

The latest of:

(a) the start of the day after this Act receives

the Royal Assent; and

(b) immediately after the commencement of

Schedule 1 to the Clean Energy (Fuel

Tax Legislation Amendment) Act 2011;

and

the provision(s) covered by table item 2.

4. Schedules 3

and 4

The day after this Act receives the Royal

Assent.

5. Schedule 5

At the same time as section 3 of the Clean

Energy Finance Corporation Act 2012

commences.

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

Schedule 1 General amendments

Part 1 Amendments

4 Clean Energy Legislation Amendment Bill 2012 No. , 2012

Schedule 1--General amendments

Part 1--Amendments

Clean Energy Act 2011

1 Section 5 (paragraph (b) of the definition of carbon dioxide

equivalence)

Omit "natural gas", substitute "designated fuel".

2 Section 5 (paragraph (b) of the definition of carbon dioxide

equivalence)

Omit "2007; or", substitute "2007.".

3 Section 5 (paragraph (c) of the definition of carbon dioxide

equivalence)

Repeal the paragraph.

4 Section 5

Insert:

designated fuel means:

(a) natural gas; or

(b)

taxable

fuel.

5 Section 5

Insert:

liquefied petroleum gas has the same meaning as in the National

Greenhouse and Energy Reporting Regulations 2008. For this

purpose, a reference in those regulations to liquid petroleum gas is

to be read as a reference to liquefied petroleum gas.

6 Section 5 (definition of liquid petroleum gas)

Repeal the definition.

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

emissions number)

Omit "11AA, 11AB,".

General amendments Schedule 1

Amendments Part 1

Clean Energy Legislation Amendment Bill 2012 No. , 2012 5

8 At the end of section 20

Add:

Compressed natural gas--no double counting

(10)

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 compressed natural gas; and

manufactured at the facility using natural gas that was

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

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

quoted the recipient's OTN in relation to the supply of the

natural gas;

the amount mentioned in paragraph (b):

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

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

(11)

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 compressed natural gas; and

manufactured at the facility using natural gas that was

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

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

quoted the recipient's OTN in relation to the supply of the

natural gas;

the amount mentioned in paragraph (b):

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

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

9 After subsection 21(8)

Insert:

Schedule 1 General amendments

Part 1 Amendments

6 Clean Energy Legislation Amendment Bill 2012 No. , 2012

Compressed natural gas--no double counting

(8A)

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 compressed natural gas; and

manufactured at the facility using 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)

who quoted the recipient's OTN in relation to the supply of

the natural gas;

the amount mentioned in paragraph (b):

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

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

(8B)

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

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

from the operation of the facility was attributable to the

combustion of compressed natural gas; and

manufactured at the facility using 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)

who quoted the recipient's OTN in relation to the supply of

the natural gas;

the amount mentioned in paragraph (b):

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

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

10 At the end of section 22

Add:

Compressed natural gas--no double counting

(8)

If:

General amendments Schedule 1

Amendments Part 1

Clean Energy Legislation Amendment Bill 2012 No. , 2012 7

(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 compressed natural gas; and

manufactured at the facility using natural gas that was

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

(who may be the holder) who quoted the recipient's OTN in

relation to the supply of the natural gas;

the amount mentioned in paragraph (b):

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

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

(9)

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 compressed natural gas; and

manufactured at the facility using natural gas that was

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

(who may be the holder) who quoted the recipient's OTN in

relation to the supply of the natural gas;

the amount mentioned in paragraph (b):

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

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

11 After subsection 23(9)

Insert:

Compressed natural gas--no double counting

(9A)

If:

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

person throughout the eligible financial year; and

Schedule 1 General amendments

Part 1 Amendments

8 Clean Energy Legislation Amendment Bill 2012 No. , 2012

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

emissions from the operation of the landfill facility was

attributable to the combustion of compressed natural gas; and

manufactured at the landfill facility using natural gas that was

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

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

quoted the recipient's OTN in relation to the supply of the

natural gas;

the amount mentioned in paragraph (b):

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

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

(9B)

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 compressed natural gas; and

manufactured at the landfill facility using natural gas that was

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

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

quoted the recipient's OTN in relation to the supply of the

natural gas;

the amount mentioned in paragraph (b):

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

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

12 After subsection 24(8)

Insert:

Compressed natural gas--no double counting

(8A)

If:

(a) the designated joint venture had the landfill facility

throughout the eligible financial year; and

General amendments Schedule 1

Amendments Part 1

Clean Energy Legislation Amendment Bill 2012 No. , 2012 9

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

emissions from the operation of the landfill facility was

attributable to the combustion of compressed natural gas; and

manufactured at the landfill facility using 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)

who quoted the recipient's OTN in relation to the supply of

the natural gas;

the amount mentioned in paragraph (b):

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

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

(8B)

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 compressed natural gas; and

manufactured at the landfill facility using 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)

who quoted the recipient's OTN in relation to the supply of

the natural gas;

the amount mentioned in paragraph (b):

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

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

13 After subsection 25(7)

Insert:

Compressed natural gas--no double counting

(7A)

If:

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

throughout the eligible financial year; and

Schedule 1 General amendments

Part 1 Amendments

10 Clean Energy Legislation Amendment Bill 2012 No. , 2012

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

emissions from the operation of the landfill facility was

attributable to the combustion of compressed natural gas; and

manufactured at the landfill facility using natural gas that was

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

(who may be the holder) who quoted the recipient's OTN in

relation to the supply of the natural gas;

the amount mentioned in paragraph (b):

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

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

(7B)

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 compressed natural gas; and

manufactured at the landfill facility using natural gas that was

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

(who may be the holder) who quoted the recipient's OTN in

relation to the supply of the natural gas;

the amount mentioned in paragraph (b):

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

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

14 Paragraph 30(2)(b)

Omit "liquid petroleum gas", substitute "liquefied petroleum gas".

15 After subsection 35(6)

Insert:

(6A) For the purposes of this section, if:

(a) the OTN holder quotes the OTN holder's OTN in relation to

a supply to the OTN holder of an amount of natural gas; and

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

emissions from the operation of a facility was attributable to

the combustion of an amount of compressed natural gas that

General amendments Schedule 1

Amendments Part 1

Clean Energy Legislation Amendment Bill 2012 No. , 2012 11

was manufactured at the facility using the whole or a part

(which whole or part is in this subsection called the relevant

portion) of the amount mentioned in paragraph (a); and

the purposes of subsection 20(1), 21(1), 22(1), 23(1), 24(1) or

25(1); and

(d) the potential greenhouse gas emissions embodied in the

relevant portion have a carbon dioxide equivalence of a

particular number of tonnes;

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

the OTN holder for the eligible financial year.

16 Subsection 35(7)

Omit "liquid petroleum gas" (wherever occurring), substitute "liquefied

petroleum gas".

17 Section 58 (heading)

Repeal the heading, substitute:

58 Quotation of OTN--use of natural gas in manufacturing

compressed natural gas, liquefied natural gas or liquefied

petroleum gas

18 Paragraph 58(1)(d)

Omit "liquid petroleum gas", substitute "liquefied petroleum gas".

19 Subsection 92A(4)

Repeal the subsection, substitute:

(4) For the purposes of this section, a designated opt-in person passes

the eligibility test in respect of an acquisition, manufacture or

import of taxable fuel during a financial year if:

(a) in a case where:

(i) the designated opt-in person was a member of a GST

group at the start of the financial year; and

(ii) if it were assumed that the fuel had been acquired,

manufactured or imported, as the case may be, at the

start of the financial year--the entity that would have

been entitled to a fuel tax credit in respect of that

Schedule 1 General amendments

Part 1 Amendments

12 Clean Energy Legislation Amendment Bill 2012 No. , 2012

acquisition, manufacture or import, as the case may be,

would have consisted of the members of the GST group;

the fuel was acquired, manufactured or imported, as the case

may be, by a person who was a member of the GST group as

at the start of the financial year; or

(b) in a case where:

(i) the designated opt-in person was a participant in a GST

joint venture at the start of the financial year; and

(ii) if it were assumed that the fuel had been acquired,

manufactured or imported, as the case may be, at the

start of the financial year--the entity that would have

been entitled to a fuel tax credit in respect of that

acquisition, manufacture or import, as the case may be,

would have consisted of the participants in the GST

joint venture;

the fuel was acquired, manufactured or imported, as the case

may be, by a person who was a participant in the GST joint

venture as at the start of the financial year; or

that was entitled to a fuel tax credit in respect of that

acquisition, manufacture or import, as the case may be.

(4AA) It is immaterial whether the designated opt-in person is:

(a) the person last mentioned in paragraph (4)(a); or

(b) the person last mentioned in paragraph (4)(b).

(4AB) For the purposes of subparagraphs (4)(a)(ii) and (b)(ii), in

determining the entity that would have been entitled to a fuel tax

credit in respect of an acquisition, manufacture or import of taxable

fuel, disregard:

(a) so much of subsection 70-5(2) of the Fuel Tax Act 2006 as

does not consist of the table; and

(b) column 2 of the table in that subsection.

20 After section 92D

Insert:

General amendments Schedule 1

Amendments Part 1

Clean Energy Legislation Amendment Bill 2012 No. , 2012 13

92DA Notification requirement

Scope

(1) This section applies to a person if the person is a designated opt-in

person.

Requirement

(2) The Opt-in Scheme may make provision for and in relation to

requiring the person to notify matters to the Regulator.

(3) Subsection (2) does not, by implication, limit subsection 92A(1).

21 At the end of Division 7 of Part 3

Add:

92H Compliance with reporting, record-keeping and notification

requirements

Reporting requirements

(1) If a person is subject to a requirement under the Opt-in Scheme to

give a report to the Regulator, the person must comply with that

requirement.

Record-keeping requirements

(2) If a person is subject to a requirement under the Opt-in Scheme to:

(a) make a record of information; or

(b) retain such a record or a copy;

the person must comply with that requirement.

Notification requirements

(3) If a person is subject to a requirement under the Opt-in Scheme to

notify a matter to the Regulator, the person must comply with that

requirement.

Ancillary contraventions

(4) A person must not:

Schedule 1 General amendments

Part 1 Amendments

14 Clean Energy Legislation Amendment Bill 2012 No. , 2012

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

subsection (1), (2) or (3); or

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

contravention of subsection (1), (2) or (3); or

or party to, a contravention of subsection (1), (2) or (3); or

(d) conspire with others to effect a contravention of

subsection (1), (2) or (3).

Civil penalty provisions

(5) Subsections (1), (2), (3) and (4) are civil penalty provisions.

Note:

Part 17 provides for pecuniary penalties for breaches of civil penalty

provisions.

22 After paragraph 262(1)(r)

Insert:

(ra)

subsection

92H(1);

(rb)

subsection

92H(2);

(rc)

subsection

92H(3);

23 After paragraph 263(2)(g)

Insert:

(ga)

subsection

92H(1);

(gb)

subsection

92H(3);

National Greenhouse and Energy Reporting Act 2007

24 Section 7 (paragraph (b) of the definition of carbon

dioxide equivalence)

Omit "natural gas", substitute "designated fuel".

25 Section 7

Insert:

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

2011.

26 Section 7

General amendments Schedule 1

Amendments Part 1

Clean Energy Legislation Amendment Bill 2012 No. , 2012 15

Insert:

externally-administered body corporate has the same meaning as

in the Corporations Act 2001.

27 Section 7

Insert:

insolvent under administration has the same meaning as in the

Corporations Act 2001.

28 Section 7 (definition of operational control)

Omit "11AA, 11AB,".

29 Section 7 (definition of potential greenhouse gas

emissions)

Omit "natural gas", substitute "designated fuel".

30 Section 7

Insert:

unit shortfall charge has the same meaning as in the Clean Energy

Act 2011.

31 Section 7

Insert:

unsatisfactory compliance record has the meaning given by

section 11D.

32 Section 7B (heading)

Repeal the heading, substitute:

7B Potential greenhouse gas emissions embodied in an amount of

designated fuel

33 Subsection 7B(1)

Omit "of natural gas", substitute "of a particular kind of designated

fuel".

34 Subsection 7B(1)

Schedule 1 General amendments

Part 1 Amendments

16 Clean Energy Legislation Amendment Bill 2012 No. , 2012

Omit "of the natural gas", substitute "of the designated fuel".

35 Subsection 7B(2)

Omit "of natural gas", substitute "of a specified kind of designated

fuel".

36 Subsection 7B(2)

Omit "of the natural gas", substitute "of the designated fuel".

37 At the end of subsection 7B(2)

Add "in relation to that kind of designated fuel".

38 Paragraph 7B(3)(c)

Omit "natural gas", substitute "a particular kind of designated fuel".

39 Paragraph 7B(4)(a)

Omit "natural gas", substitute "a particular kind of designated fuel".

40 Paragraph 7B(4)(c)

Omit "the natural gas", substitute "that kind of designated fuel".

41 Subsection 7B(5)

Omit "natural gas", substitute "designated fuel of a kind specified in the

determination".

42 At the end of subsection 7B(5)

Add "in relation to that kind of designated fuel".

43 Section 7C (heading)

Repeal the heading, substitute:

7C Carbon dioxide equivalence of potential greenhouse gas

emissions embodied in an amount of designated fuel

44 Subsection 7C(1)

Omit "natural gas", substitute "designated fuel".

45 Subsection 11(4)

Omit "11AA, 11AB,".

General amendments Schedule 1

Amendments Part 1

Clean Energy Legislation Amendment Bill 2012 No. , 2012 17

46 Sections 11AA, 11AB, 11B and 11C

Repeal the sections, substitute:

11B Operational control--nominated person

Eligible nomination test

(1) For the purposes of this section, a facility passes the eligible

nomination test at a particular time if:

(a) 2 or more persons (the relevant persons) could satisfy

paragraph 11(1)(a) in relation to the facility at that time; and

(b) no particular person has the greatest authority to introduce

and implement the policies mentioned in subparagraphs

11(1)(a)(i) and (iii) in relation to the facility at that time; and

the facility at that time; and

(d) that time occurs in an eligible financial year.

Nomination

(2) 2 or more persons may jointly nominate one of them to be the

nominated person in relation to a facility throughout the period:

(a) beginning at the start of the day specified in the nomination

as the day on which the nomination is to come into force (the

start day); and

(b) ending at a later time specified in the nomination.

(3) The nomination must:

(a) be in writing; and

(b) be in a form approved by the Regulator; and

regulations; and

(d) be accompanied by such documents (if any) as are specified

in the regulations.

(4)

If:

(a) any of those persons is a foreign person; and

(b) any of those persons is not a foreign person;

a foreign person cannot be nominated.

Schedule 1 General amendments

Part 1 Amendments

18 Clean Energy Legislation Amendment Bill 2012 No. , 2012

(5) The nomination has no effect unless, at the beginning of the start

day:

(a) the facility passes the eligible nomination test; and

(b) the nominators are the relevant persons.

(6) The start day may occur before the nomination is made.

(7)

If:

(a) the start day occurs in the first 9 months of a fixed charge

year; and

(b) it may reasonably be expected that a person would have had

an interim emissions number for the fixed charge year if it

were assumed that:

(i) the person had operational control of the facility

throughout a period that is included in, or consists of,

the first 9 months of the fixed charge year; and

(ii) no other person had operational control of the facility

throughout that period;

the nomination must be made before 1 May in the fixed charge

year.

(8) If the start day occurs during a particular eligible financial year, the

nomination must not be made after 31 August next following the

eligible financial year.

(9) The start day may be later than the day on which the nomination is

made, so long as:

(a) the start day occurs in the same financial year as the day on

which the nomination is made; or

(b) the start day occurs in the financial year next following the

financial year in which the nomination is made.

Cancellation of nomination

(10) The Regulator may cancel a nomination that relates to a facility if

the Regulator is satisfied that:

(a) the facility passes the eligible nomination test, but the

nominated person is not a relevant person; or

(b) the facility does not pass the eligible nomination test; or

body corporate; or

General amendments Schedule 1

Amendments Part 1

Clean Energy Legislation Amendment Bill 2012 No. , 2012 19

(d) the nominated person has become an insolvent under

administration; or

(e) the nominated person has an unsatisfactory compliance

record.

Note: For unsatisfactory compliance record, see section 11D.

(11) A cancellation of a nomination takes effect on the day specified in

the notice of cancellation as the day on which the cancellation is to

take effect.

(12) If the Regulator cancels a nomination, the Regulator must give

written notice of the cancellation to each nominator.

Replacement nomination

(13)

If:

(a) a nomination (the original nomination) is in force in relation

to a facility; and

(b) another nomination is made in relation to the facility;

the other nomination has no effect unless it is expressed to replace

the original nomination.

Revocation of nomination

(14)

If:

(a) a nomination (the original nomination) is in force in relation

to a facility; and

(b) another nomination is made in relation to the facility; and

nomination;

the original nomination is taken to have been revoked at the

beginning of the start day for the other nomination.

Operational control--nomination made

(15)

If:

(a) a nomination is in force in relation to a facility throughout a

particular period; and

(b) the facility passes the eligible nomination test at all times

during the period; and

Schedule 1 General amendments

Part 1 Amendments

20 Clean Energy Legislation Amendment Bill 2012 No. , 2012

the nominated person is taken, for the purposes of this Act, to have

operational control of the facility throughout the period.

(16)

If:

(a) a nomination is in force in relation to a facility throughout a

particular period; and

(b) the facility passes the eligible nomination test at all times

during the period; and

the nominated person is taken, for the purposes of this Act and the

Clean Energy Act 2011, to have operational control of the facility

throughout the period.

Operational control--nomination not made

(17)

If:

(a) no nomination is in force in relation to a facility at any time

during a particular period; and

(b) the facility passes the eligible nomination test at all times

during the period; and

each of the relevant persons is taken, for the purposes of this Act,

to have operational control of the facility throughout the period.

(18)

If:

(a) no nomination is in force in relation to a facility at any time

during a particular period; and

(b) the facility passes the eligible nomination test at all times

during the period; and

then:

(d) each relevant person is taken, for the purposes of this Act and

the Clean Energy Act 2011, to have operational control of

the facility throughout the period; and

(e) if there is a provisional emissions number of such a person

for the eligible financial year in relation to greenhouse gases

emitted from the operation of the facility during the period--

for the purposes of this Act and the Clean Energy Act 2011,

that provisional emissions number is taken to be the number

worked out using the formula set out in subsection (19).

General amendments Schedule 1

Amendments Part 1

Clean Energy Legislation Amendment Bill 2012 No. , 2012 21

(19) The formula is:

Unadjusted provisional emissions number

Total number of relevant persons

where:

unadjusted provisional emissions number means the number that,

apart from paragraph (18)(e), would be the provisional emissions

number of the person for the eligible financial year in relation to

greenhouse gases emitted from the operation of the facility during

the period.

Notification

(20)

If:

(a) a nomination is in force in relation to a facility; and

(b) the facility ceases to pass the eligible nomination test;

each nominator must, within 30 days after the cessation, notify the

cessation to the Regulator unless the cessation has previously been

notified to the Regulator.

Civil penalty:

400 penalty units.

Exceptions

(21) A person is not required to comply with subsection (20) if the

question of who has operational control of the facility is not

relevant (whether directly or indirectly) to a requirement under:

(a) this Act; or

(b)

the

Clean Energy Act 2011.

(22) A person is not required to comply with subsection (20) if the

facility ceases to pass the eligible nomination test because of the

making of a declaration under section 55 or 55A.

Definition

(23) In this section:

nomination means a nomination under subsection (2).

Schedule 1 General amendments

Part 1 Amendments

22 Clean Energy Legislation Amendment Bill 2012 No. , 2012

11C Operational control--trust with multiple trustees

Eligible nomination test

(1) For the purposes of this section, a facility passes the eligible

nomination test at a particular time if:

(a) because of section 11, 11A or 11B, a trust has operational

control of the facility at that time; and

(b) at that time, there are 2 or more trustees (the relevant

trustees) of the trust; and

the facility at that time; and

(d) that time occurs in an eligible financial year.

Nomination

(2) 2 or more trustees may jointly nominate one of them to be the

nominated trustee in relation to a facility throughout the period:

(a) beginning at the start of the day specified in the nomination

as the day on which the nomination is to come into force (the

start day); and

(b) ending at a later time specified in the nomination.

(3) The nomination must:

(a) be in writing; and

(b) be in a form approved by the Regulator; and

regulations; and

(d) be accompanied by such documents (if any) as are specified

in the regulations.

(4)

If:

(a) any of those trustees is a foreign person; and

(b) any of those trustees is not a foreign person;

a foreign person cannot be nominated.

(5) The nomination has no effect unless, at the beginning of the start

day:

(a) the facility passes the eligible nomination test; and

(b) the nominators are the relevant trustees.

General amendments Schedule 1

Amendments Part 1

Clean Energy Legislation Amendment Bill 2012 No. , 2012 23

(6) The start day may occur before the nomination is made.

(7)

If:

(a) the start day occurs in the first 9 months of a fixed charge

year; and

(b) it may reasonably be expected that a person would have had

an interim emissions number for the fixed charge year if it

were assumed that:

(i) the person had operational control of the facility

throughout a period that is included in, or consists of,

the first 9 months of the fixed charge year; and

(ii) no other person had operational control of the facility

throughout that period;

the nomination must be made before 1 May in the fixed charge

year.

(8) If the start day occurs during a particular eligible financial year, the

nomination must not be made after 31 August next following the

eligible financial year.

(9) The start day may be later than the day on which the nomination is

made, so long as:

(a) the start day occurs in the same financial year as the day on

which the nomination is made; or

(b) the start day occurs in the financial year next following the

financial year in which the nomination is made.

Cancellation of nomination

(10) The Regulator may cancel a nomination that relates to a facility if

the Regulator is satisfied that:

(a) the facility passes the eligible nomination test, but the

nominated trustee is not a relevant trustee; or

(b) the facility does not pass the eligible nomination test; or

body corporate; or

(d) the nominated trustee has become an insolvent under

administration; or

(e) the nominated trustee has an unsatisfactory compliance

record.

Note: For unsatisfactory compliance record, see section 11D.

Schedule 1 General amendments

Part 1 Amendments

24 Clean Energy Legislation Amendment Bill 2012 No. , 2012

(11) A cancellation of a nomination takes effect on the day specified in

the notice of cancellation as the day on which the cancellation is to

take effect.

(12) If the Regulator cancels a nomination, the Regulator must give

written notice of the cancellation to each nominator.

Replacement nomination

(13)

If:

(a) a nomination (the original nomination) is in force in relation

to a facility; and

(b) another nomination is made in relation to the facility;

the other nomination has no effect unless it is expressed to replace

the original nomination.

Revocation of nomination

(14)

If:

(a) a nomination (the original nomination) is in force in relation

to a facility; and

(b) another nomination is made in relation to the facility; and

nomination;

the original nomination is taken to have been revoked at the

beginning of the start day for the other nomination.

Operational control--nomination made

(15)

If:

(a) a nomination is in force in relation to a facility throughout a

particular period; and

(b) the facility passes the eligible nomination test at all times

during the period;

the nominated trustee is taken, for the purposes of this Act and the

Clean Energy Act 2011, to have operational control of the facility

throughout the period.

Operational control--nomination not made

(16)

If:

General amendments Schedule 1

Amendments Part 1

Clean Energy Legislation Amendment Bill 2012 No. , 2012 25

(a) no nomination is in force in relation to a facility at any time

during a particular period; and

(b) the facility passes the eligible nomination test at all times

during the period;

then:

the Clean Energy Act 2011, to have operational control of

the facility throughout the period; and

(d) if there is a provisional emissions number of such a trustee

for the eligible financial year in relation to greenhouse gases

emitted from the operation of the facility during the period--

for the purposes of this Act and the Clean Energy Act 2011,

that provisional emissions number is taken to be the number

worked out using the formula set out in subsection (17).

(17) The formula is:

Unadjusted provisional emissions number

Total number of relevant trustees

where:

unadjusted provisional emissions number means the number that,

apart from paragraph (16)(d), would be the provisional emissions

number of the trustee for the eligible financial year in relation to

greenhouse gases emitted from the operation of the facility during

the period.

Notification

(18)

If:

(a) a nomination is in force in relation to a facility; and

(b) the facility ceases to pass the eligible nomination test;

each nominator must, within 30 days after the cessation, notify the

cessation to the Regulator unless the cessation has previously been

notified to the Regulator.

Civil penalty:

400 penalty units.

Schedule 1 General amendments

Part 1 Amendments

26 Clean Energy Legislation Amendment Bill 2012 No. , 2012

Exceptions

(19) A trustee is not required to comply with subsection (18) if the

question of who has operational control of the facility is not

relevant (whether directly or indirectly) to a requirement under:

(a) this Act; or

(b)

the

Clean Energy Act 2011.

(20) A trustee is not required to comply with subsection (18) if the

facility ceases to pass the eligible nomination test because of the

making of a declaration under section 55 or 55A.

Definition

(21) In this section:

nomination means a nomination under subsection (2).

11D Unsatisfactory compliance record

(1) For the purposes of this Act, a person has an unsatisfactory

compliance record if, and only if:

(a) at any time during the preceding 5 years, the person has

breached a requirement under this Act to provide a report; or

(b) at any time during the preceding 5 years, the person has

provided a report under this Act that contains information

that is false or misleading in a material particular; or

shortfall charge payable by the person remained unpaid more

than 3 months after it became due for payment; or

(d) the following conditions are satisfied:

(i) at any time during the preceding 5 years, a copy of an

audit report of a greenhouse and energy audit relating to

the person was given to the Regulator under this Act;

(ii) the report contained an adverse conclusion (within the

meaning of the National Greenhouse and Energy

Reporting (Audit) Determination 2009); or

(e) at any time during the preceding 5 years, the person has

breached a civil penalty provision of:

(i) this Act; or

(ii)

the

Clean Energy Act 2011; or

General amendments Schedule 1

Amendments Part 1

Clean Energy Legislation Amendment Bill 2012 No. , 2012 27

(iii) a determination under section 113 of the Clean Energy

Act 2011; or

(f) if the person is a body corporate--at any time during the

preceding 5 years, an executive officer of the body corporate

has breached a civil penalty provision of:

(i) this Act; or

(ii)

the

Clean Energy Act 2011; or

(iii) a determination under section 113 of the Clean Energy

Act 2011; or

(g)

both:

(i) at any time during the preceding 5 years, the person has

done a particular act; and

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

(h)

both:

(i) at any time during the preceding 5 years, the person has

omitted to do a particular act; and

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

(i) the person has been convicted of an offence against:

(i) this Act; or

(ii)

the

Clean Energy Act 2011; or

(j) if the person is a body corporate--an executive officer of the

body corporate has been convicted of an offence against:

(i) this Act; or

(ii)

the

Clean Energy Act 2011.

Spent convictions

(2) 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).

47 Paragraph 22A(1)(c)

Omit "natural gas", substitute "designated fuel".

48 Paragraph 22AA(1)(e)

Omit "natural gas", substitute "designated fuel".

Schedule 1 General amendments

Part 1 Amendments

28 Clean Energy Legislation Amendment Bill 2012 No. , 2012

49 Paragraph 24(1)(c)

Repeal the paragraph, substitute:

group for the previous financial year.

50 Paragraph 24(1A)(c)

Repeal the paragraph, substitute:

corporation's group, or each business unit in relation to the

corporation's group, for the previous financial year; and

51 Paragraph 24(1AA)(c)

Omit "natural gas", substitute "designated fuel".

52 Paragraphs 24(1AD)(a) and (b)

After "regulations)", insert "set out in the report".

53 Paragraph 24(1AD)(c)

Omit "energy consumption;", substitute "net energy consumption

derived from the report.".

54 Subsection 24(1AD)

Omit "set out in the report.".

55 Subsection 24(1C)

Omit "or adjusted totals".

56 At the end of section 24

Add:

Net energy consumption

(7) For the purposes of subsections (1) and (1A), net energy

consumption for a financial year means energy consumption

reported under Part 3 or 3F for the financial year, adjusted in

accordance with the regulations.

(8) For the purposes of subsection (1AD), the net energy consumption

derived from a report under section 22E or 22G means the energy

Schedule 1 General amendments

Part 2 Transitional provisions

30 Clean Energy Legislation Amendment Bill 2012 No. , 2012

Part 2--Transitional provisions

59 Transitional--determinations under section 7B of the

National Greenhouse and Energy Reporting Act 2007

Scope

(1)

This item applies to a determination if:

(a) the determination was made under subsection 7B(2), (4) or

(5) of the National Greenhouse and Energy Reporting Act

2007; and

(b) the determination was in force immediately before the

commencement of this item.

Determination

(2)

The determination has effect, after the commencement of this item, as if

it:

(a) had been made under the corresponding provision of

section 7B of the National Greenhouse and Energy

Reporting Act 2007 as amended by this Act; and

(b) related to a specified kind of designated fuel, namely, natural

gas.

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 31

Schedule 2--Amendments relating to gaseous

fuel

Clean Energy Act 2011

1 Section 4

After:

�

If a natural gas supplier supplies natural gas, and does not

surrender one eligible emissions unit for each tonne of carbon

dioxide equivalence of the potential greenhouse gas emissions

embodied in the natural gas, the supplier is liable to pay unit

shortfall charge.

insert:

�

If a person imports or produces liquefied petroleum gas or

liquefied natural gas for non-transport use, and does not

surrender one eligible emissions unit for each tonne of carbon

dioxide equivalence of the potential greenhouse gas emissions

embodied in the liquefied petroleum gas or liquefied natural

gas, the person is liable to pay unit shortfall charge.

2 Section 5 (at the end of the definition of designated fuel)

Add:

; or (c) liquefied natural gas; or

(d) liquefied petroleum gas.

3 Section 5

Insert:

gaseous fuel supplier means a person who supplies:

(a) liquefied natural gas; or

(b) liquefied petroleum gas; or

(c)

natural

gas.

4 Section 5

Schedule 2 Amendments relating to gaseous fuel

32 Clean Energy Legislation Amendment Bill 2012 No. , 2012

Insert:

non-transport combustion means combustion that does not occur

in:

(a) an internal combustion engine in a motor vehicle; or

(b) an internal combustion engine in a vessel.

5 Section 5 (definition of taxable fuel)

After "Fuel Tax Act 2006", insert "(for this purpose, disregard

paragraph (b) of the definition of taxable fuel in section 110-5 of that

Act)".

6 Section 19

Omit:

�

If a natural gas supplier supplies an amount of natural gas to

another person (the recipient) who quotes the recipient's

Obligation Transfer Number (OTN) in relation to the supply,

the supply will not count towards the supplier's liability for

the financial year.

�

If a person (the OTN holder) quotes the OTN holder's OTN in

relation to the supply of an amount of natural gas, the OTN

holder may be a liable entity.

substitute:

�

If a person imports or produces liquefied petroleum gas or

liquefied natural gas, during a financial year, for non-transport

use:

(a)

the person is a liable entity for the financial year;

and

(b)

the number of tonnes of carbon dioxide

equivalence of the potential greenhouse gas

emissions embodied in the liquefied petroleum gas

or liquefied natural gas is a provisional emissions

number of the person for the financial year.

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 33

�

If a person supplies an amount of natural gas, liquefied

petroleum gas or liquefied natural gas to another person (the

recipient) who quotes the recipient's Obligation Transfer

Number (OTN) in relation to the supply, the supply will not

count towards the supplier's liability for the financial year.

�

If a person (the OTN holder) quotes the OTN holder's OTN in

relation to the supply of an amount of natural gas, liquefied

petroleum gas or liquefied natural gas, the OTN holder may be

a liable entity.

7 At the end of section 20

Add:

Gaseous fuel--no double counting

(12)

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 non-transport combustion of liquefied petroleum gas or

liquefied natural gas that was supplied by a gaseous fuel

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

mentioned in paragraph (a)); and

the supply of the liquefied petroleum gas or liquefied natural

gas; and

(d) the gaseous fuel supplier has, under section 36B or 36C, a

preliminary emissions number for an eligible financial year;

and

(e) the preliminary emissions number is wholly or partly

attributable to the import, manufacture or production of the

liquefied petroleum gas or liquefied natural gas;

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:

Schedule 2 Amendments relating to gaseous fuel

34 Clean Energy Legislation Amendment Bill 2012 No. , 2012

(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

non-transport combustion of liquefied petroleum gas or

liquefied natural gas that was supplied by a gaseous fuel

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

mentioned in paragraph (a)); and

the supply of the liquefied petroleum gas or liquefied natural

gas; and

(d) the gaseous fuel supplier has, under section 36B or 36C, a

preliminary emissions number for an eligible financial year;

and

(e) the preliminary emissions number is wholly or partly

attributable to the import, manufacture or production of the

liquefied petroleum gas or liquefied natural gas;

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).

8 After subsection 21(8B)

Insert:

Gaseous fuel--no double counting

(8C)

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 non-transport combustion of liquefied petroleum gas or

liquefied natural gas that was supplied by a gaseous fuel

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

in the designated joint venture); and

the supply of the liquefied petroleum gas or liquefied natural

gas; and

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 35

(d) the gaseous fuel supplier has, under section 36B or 36C, a

preliminary emissions number for an eligible financial year;

and

(e) the preliminary emissions number is wholly or partly

attributable to the import, manufacture or production of the

liquefied petroleum gas or liquefied natural gas;

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).

(8D)

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

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

from the operation of the facility was attributable to the

non-transport combustion of liquefied petroleum gas or

liquefied natural gas that was supplied by a gaseous fuel

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

in the designated joint venture); and

the supply of the liquefied petroleum gas or liquefied natural

gas; and

(d) the gaseous fuel supplier has, under section 36B or 36C, a

preliminary emissions number for an eligible financial year;

and

(e) the preliminary emissions number is wholly or partly

attributable to the import, manufacture or production of the

liquefied petroleum gas or liquefied natural gas;

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).

9 At the end of section 22

Add:

Gaseous fuel--no double counting

(10)

If:

Schedule 2 Amendments relating to gaseous fuel

36 Clean Energy Legislation Amendment Bill 2012 No. , 2012

(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 non-transport combustion of liquefied petroleum gas or

liquefied natural gas that was supplied by a gaseous fuel

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

and

the supply of the liquefied petroleum gas or liquefied natural

gas; and

(d) the gaseous fuel supplier has, under section 36B or 36C, a

preliminary emissions number for an eligible financial year;

and

(e) the preliminary emissions number is wholly or partly

attributable to the import, manufacture or production of the

liquefied petroleum gas or liquefied natural gas;

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).

(11)

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

non-transport combustion of liquefied petroleum gas or

liquefied natural gas that was supplied by a gaseous fuel

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

and

the supply of the liquefied petroleum gas or liquefied natural

gas; and

(d) the gaseous fuel supplier has, under section 36B or 36C, a

preliminary emissions number for an eligible financial year;

and

(e) the preliminary emissions number is wholly or partly

attributable to the import, manufacture or production of the

liquefied petroleum gas or liquefied natural gas;

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 37

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).

10 After subsection 23(9B)

Insert:

Gaseous fuel--no double counting

(9C)

If:

(a) the landfill 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 landfill facility was

attributable to the non-transport combustion of liquefied

petroleum gas or liquefied natural gas that was supplied by a

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

the person mentioned in paragraph (a)); and

the supply of the liquefied petroleum gas or liquefied natural

gas; and

(d) the gaseous fuel supplier has, under section 36B or 36C, a

preliminary emissions number for an eligible financial year;

and

(e) the preliminary emissions number is wholly or partly

attributable to the import, manufacture or production of the

liquefied petroleum gas or liquefied natural gas;

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).

(9D)

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 non-transport combustion of liquefied petroleum gas or

liquefied natural gas that was supplied by a gaseous fuel

Schedule 2 Amendments relating to gaseous fuel

38 Clean Energy Legislation Amendment Bill 2012 No. , 2012

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

mentioned in paragraph (a)); and

the supply of the liquefied petroleum gas or liquefied natural

gas; and

(d) the gaseous fuel supplier has, under section 36B or 36C, a

preliminary emissions number for an eligible financial year;

and

(e) the preliminary emissions number is wholly or partly

attributable to the import, manufacture or production of the

liquefied petroleum gas or liquefied natural gas;

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).

11 After subsection 24(8B)

Insert:

Gaseous fuel--no double counting

(8C)

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 non-transport combustion of liquefied

petroleum gas or liquefied natural gas that was supplied by a

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

a participant in the designated joint venture); and

the supply of the liquefied petroleum gas or liquefied natural

gas; and

(d) the gaseous fuel supplier has, under section 36B or 36C, a

preliminary emissions number for an eligible financial year;

and

(e) the preliminary emissions number is wholly or partly

attributable to the import, manufacture or production of the

liquefied petroleum gas or liquefied natural gas;

the amount mentioned in paragraph (b):

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

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 39

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

(8D)

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 non-transport combustion of liquefied petroleum gas or

liquefied natural gas that was supplied by a gaseous fuel

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

in the designated joint venture); and

the supply of the liquefied petroleum gas or liquefied natural

gas; and

(d) the gaseous fuel supplier has, under section 36B or 36C, a

preliminary emissions number for an eligible financial year;

and

(e) the preliminary emissions number is wholly or partly

attributable to the import, manufacture or production of the

liquefied petroleum gas or liquefied natural gas;

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).

12 After subsection 25(7B)

Insert:

Gaseous fuel--no double counting

(7C)

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 non-transport combustion of liquefied

petroleum gas or liquefied natural gas that was supplied by a

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

the holder); and

Schedule 2 Amendments relating to gaseous fuel

40 Clean Energy Legislation Amendment Bill 2012 No. , 2012

the supply of the liquefied petroleum gas or liquefied natural

gas; and

(d) the gaseous fuel supplier has, under section 36B or 36C, a

preliminary emissions number for an eligible financial year;

and

(e) the preliminary emissions number is wholly or partly

attributable to the import, manufacture or production of the

liquefied petroleum gas or liquefied natural gas;

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).

(7D)

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 non-transport combustion of liquefied petroleum gas or

liquefied natural gas that was supplied by a gaseous fuel

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

and

the supply of the liquefied petroleum gas or liquefied natural

gas; and

(d) the gaseous fuel supplier has, under section 36B or 36C, a

preliminary emissions number for an eligible financial year;

and

(e) the preliminary emissions number is wholly or partly

attributable to the import, manufacture or production of the

liquefied petroleum gas or liquefied natural gas;

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).

13 After Division 3 of Part 3

Insert:

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 41

Division 3A--Liquefied petroleum gas, and liquefied

natural gas, for non-transport use

36B Liable entity--import of liquefied petroleum gas or liquefied

natural gas for non-transport use

Preliminary emissions number

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

(a) an amount of liquefied petroleum gas or liquefied natural gas

is imported; and

(b) that amount is entered for home consumption during an

eligible financial year; and

(d) apart from any remission of customs duty, customs duty is or

was payable by a person on that amount; and

(e) the customs duty is remitted on the grounds that the liquefied

petroleum gas or liquefied natural gas is not used, or intended

for use, in an internal combustion engine in either a motor

vehicle or a vessel; and

(f) that amount is not an amount that, under the regulations, is

exempt from this subsection; 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;

that number is a preliminary emissions number of the person for

the eligible financial year.

Provisional emissions number and liable entity

(2) If the person has, under 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 person for the eligible

financial year; and

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

Schedule 2 Amendments relating to gaseous fuel

42 Clean Energy Legislation Amendment Bill 2012 No. , 2012

Reduction of provisional emissions number

(3)

If:

(a) the person has, under subsection (2), a provisional emissions

number for an eligible financial year; and

(b) the person 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) 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 person for an eligible financial year

ascertained in accordance with the regulations.

(5)

If:

(a) a person has, under subsection (1), a preliminary emissions

number for an eligible financial year; and

(b) the preliminary emissions number is attributable to the

import of an amount of liquefied petroleum gas or liquefied

natural gas; and

amount of liquefied petroleum gas or liquefied natural gas to

another person (the OTN holder) who quotes the OTN

holder's OTN in relation to the supply; and

(d) the supplied amount is the whole or a part of the amount

mentioned in paragraph (b); and

(e) the potential greenhouse gas emissions embodied in the

supplied amount have a carbon dioxide equivalence of a

particular number of tonnes;

that number is a netted-out number of the first-mentioned person

for the eligible financial year mentioned in paragraph (c).

36C Liable entity--production of liquefied petroleum gas or

liquefied natural gas for non-transport use

Preliminary emissions number

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

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 43

(a) an amount of liquefied petroleum gas or liquefied natural gas

is manufactured or produced in Australia; and

(b) that amount is entered for home consumption during an

eligible financial year; and

(d) apart from any remission of excise duty, excise duty is or was

payable by a person on that amount; and

(e) the excise duty is remitted on the grounds that the liquefied

petroleum gas or liquefied natural gas is not used, or intended

for use, in an internal combustion engine in either a motor

vehicle or a vessel; and

(f) that amount is not an amount that, under the regulations, is

exempt from this subsection; 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;

that number is a preliminary emissions number of the person for

the eligible financial year.

Provisional emissions number and liable entity

(2) If the person has, under 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 person for the eligible

financial year; and

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

Reduction of provisional emissions number

(3)

If:

(a) the person has, under subsection (2), a provisional emissions

number for an eligible financial year; and

(b) the person 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.

Schedule 2 Amendments relating to gaseous fuel

44 Clean Energy Legislation Amendment Bill 2012 No. , 2012

Netted-out numbers

(4) 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 person for an eligible financial year

ascertained in accordance with the regulations.

(5)

If:

(a) a person has, under subsection (1), a preliminary emissions

number for an eligible financial year; and

(b) the preliminary emissions number is attributable to the

manufacture or production of an amount of liquefied

petroleum gas or liquefied natural gas; and

amount of liquefied petroleum gas or liquefied natural gas to

another person (the OTN holder) who quotes the OTN

holder's OTN in relation to the supply; and

(d) the supplied amount is the whole or a part of the amount

mentioned in paragraph (b); and

(e) the potential greenhouse gas emissions embodied in the

supplied amount have a carbon dioxide equivalence of a

particular number of tonnes;

that number is a netted-out number of the first-mentioned person

for the eligible financial year mentioned in paragraph (c).

36D Liable entity--supply of liquefied petroleum gas or liquefied

natural gas to a person who quotes the person's OTN

Preliminary emissions number

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

(a) a person has, under section 36B or 36C, a preliminary

emissions number for an eligible financial year; and

(b) the preliminary emissions number is attributable to the

import, manufacture or production of an amount of liquefied

petroleum gas or liquefied natural gas; and

amount of liquefied petroleum gas or liquefied natural gas to

another person (the OTN holder) who quotes the OTN

holder's OTN in relation to the supply; and

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 45

(d) the supplied amount is the whole or a part of the amount

mentioned in paragraph (b); and

(e) the potential greenhouse gas emissions embodied in the

supplied amount have a carbon dioxide equivalence of a

particular number of tonnes;

that number is a preliminary emissions number of the OTN holder

for the eligible financial year.

Provisional emissions number and liable entity

(2) If the OTN holder has, under 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 OTN holder for the

eligible financial year; and

(b) the OTN holder is a liable entity for the eligible financial

year.

Reduction of provisional emissions number

(3)

If:

(a) the OTN holder has, under subsection (2), a provisional

emissions number for an eligible financial year; and

(b) the OTN holder 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) For the purposes of this section, if:

(a) the OTN holder quotes the OTN holder's OTN in relation to

a supply to the OTN holder of an amount of liquefied

petroleum gas or liquefied natural gas; and

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

emissions from the operation of a facility was attributable to

the non-transport combustion of the whole or a part (which

whole or part is in this subsection called the relevant portion)

of the amount mentioned in paragraph (a); and

Schedule 2 Amendments relating to gaseous fuel

46 Clean Energy Legislation Amendment Bill 2012 No. , 2012

the purposes of subsection 20(1), 21(1), 22(1), 23(1), 24(1) or

25(1); and

(d) the potential greenhouse gas emissions embodied in the

relevant portion have a carbon dioxide equivalence of a

particular number of tonnes;

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

the OTN holder 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 an OTN holder for an eligible financial year

ascertained in accordance with the regulations.

36E Liable entity--supply of liquefied petroleum gas or liquefied

natural gas to a person who misuses the person's OTN

Preliminary emissions number

(1) For the purposes of this Act, if:

(a) a person has, under section 36B or 36C, a preliminary

emissions number for an eligible financial year; and

(b) the preliminary emissions number is attributable to the

import, manufacture or production of an amount of liquefied

petroleum gas or liquefied natural gas; and

amount of liquefied petroleum gas or liquefied natural gas to

another person (the OTN holder) who quotes the OTN

holder's OTN in relation to the supply; and

(d) the OTN holder was not permitted or required by this Act to

quote the OTN holder's OTN; and

(e) the supplied amount is the whole or a part of the amount

mentioned in paragraph (b); and

(f) the potential greenhouse gas emissions embodied in the

supplied amount have a carbon dioxide equivalence of a

particular number of tonnes;

that number is a preliminary emissions number of the OTN holder

for the eligible financial year mentioned in paragraph (c).

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 47

Provisional emissions number and liable entity

(2) If the OTN holder has, under 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 OTN holder for the

eligible financial year; and

(b) the OTN holder is a liable entity for the eligible financial

year.

14 Paragraph 40(3)(a)

After "natural gas", insert ", liquefied petroleum gas or liquefied natural

gas".

15 Paragraph 41(1)(a)

After "natural gas", insert ", liquefied petroleum gas or liquefied natural

gas".

16 Paragraph 43(2)(a)

After "natural gas", insert ", liquefied petroleum gas or liquefied natural

gas".

17 Subsection 45(8) (heading)

Repeal the heading, substitute:

Entry for a gaseous fuel supplier

18 Subsections 45(8) to (13)

Omit "natural gas" (wherever occurring), substitute "gaseous fuel".

19 Section 47 (heading)

Repeal the heading, substitute:

47 Notification of change of name or address of OTN holder or

gaseous fuel supplier

20 Subsection 47(2) (heading)

Repeal the heading, substitute:

Schedule 2 Amendments relating to gaseous fuel

48 Clean Energy Legislation Amendment Bill 2012 No. , 2012

Gaseous fuel supplier

21 Subsection 47(2)

Omit "natural gas" (wherever occurring), substitute, "gaseous fuel".

22 Subsection 48(1)

Omit "natural gas supplier" (first occurring), substitute "gaseous fuel

supplier".

23 Subsection 48(1)

Omit "of natural gas by the natural gas supplier", substitute "of natural

gas, liquefied petroleum gas or liquefied natural gas by the gaseous fuel

supplier".

24 Paragraph 48(1)(a)

Omit "natural gas", substitute "gaseous fuel".

25 Section 48(3)

Omit "natural gas", substitute "gaseous fuel".

26 Paragraph 49(a)

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

natural gas supplier", substitute "gaseous fuel supplier in relation to a

supply of natural gas, liquefied petroleum gas or liquefied natural gas

by the gaseous fuel supplier".

27 Section 49

Omit "natural gas supplier" (last occurring), substitute "gaseous fuel

supplier".

28 Paragraph 50(a)

Omit "natural gas", substitute "gaseous fuel".

29 Section 51

Omit "natural gas supplier" (wherever occurring), substitute "gaseous

fuel supplier".

30 Section 52

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 49

Omit "natural gas supplier" (wherever occurring), substitute "gaseous

fuel supplier".

31 Paragraph 53(1)(a)

Omit "natural gas supplier in relation to the supply of natural gas",

substitute "gaseous fuel supplier in relation to the supply of natural gas,

liquefied petroleum gas or liquefied natural gas".

32 Paragraph 53(2)(b)

Omit "natural gas", substitute "gaseous fuel".

33 Section 54

Omit "natural gas" (wherever occurring), substitute "gaseous fuel".

34 Section 55

Omit "natural gas" (wherever occurring), substitute "gaseous fuel".

35 After section 58

Insert:

58AA Mandatory quotation of OTN--liquefied natural gas or

liquefied petroleum gas

Mandatory quotation

(1)

If:

(a) during an eligible financial year, a gaseous fuel supplier

supplies an amount of liquefied petroleum gas or liquefied

natural gas to another person (the recipient); and

(b) the eligible financial year begins on or after 1 July 2013; and

the recipient must quote the recipient's OTN in relation to the

supply.

Notice to gaseous fuel supplier

(2) Before the first occasion on which the recipient quotes the

recipient's OTN to the gaseous fuel supplier under this section, the

recipient must:

Schedule 2 Amendments relating to gaseous fuel

50 Clean Energy Legislation Amendment Bill 2012 No. , 2012

(a) give the gaseous fuel supplier written notice of the recipient's

intention to quote the recipient's OTN under this section; and

(b) do so at least:

(i) 28 days; or

(ii) if the gaseous fuel supplier and the recipient agree on a

lesser number of days--that lesser number of days;

before that first occasion.

Civil penalty provisions

(3) Subsections (1) and (2) are civil penalty provisions.

Note:

Part 17 provides for pecuniary penalties for breaches of civil penalty

provisions.

58AB Voluntary quotation of OTN--liquefied natural gas or

liquefied petroleum gas

(1)

If:

(a) during an eligible financial year, a gaseous fuel supplier

supplies an amount of liquefied petroleum gas or liquefied

natural gas to another person (the recipient); and

(b) the eligible financial year begins on or after 1 July 2013; and

the recipient may quote the recipient's OTN in relation to the

supply.

Notice to gaseous fuel supplier

(2) Before the first occasion on which the recipient quotes the

recipient's OTN to the gaseous fuel supplier under this section in

the circumstances in which the gaseous fuel supplier is required by

section 59 or 60 to accept the quotation, the recipient must:

(a) give the gaseous fuel supplier written notice of the recipient's

intention to quote the recipient's OTN under this section; and

(b) do so at least:

(i) 28 days; or

(ii) if the gaseous fuel supplier and the recipient agree on a

lesser number of days--that lesser number of days;

before that first occasion.

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 51

Civil penalty provision

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

Note:

Part 17 provides for pecuniary penalties for breaches of civil penalty

provisions.

36 Subsection 59(1)

Omit "natural gas", substitute "gaseous fuel".

37 Subsection 59(2)

Omit "or 58", substitute ", 58 or 58AB".

38 Subsection 59(2)

Omit "natural gas", substitute "gaseous fuel".

39 Subsection 59(3)

Omit "natural gas" (first occurring), substitute "gaseous fuel".

40 Subsection 59(3)

Omit "natural gas" (last occurring), substitute "gaseous fuel".

41 After subsection 59(3)

Insert:

(3A)

If:

(a) the OTN holder is permitted by section 58AB to quote the

OTN holder's OTN in relation to the supply; and

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

the gaseous fuel supplier must, by written notice given to the OTN

holder, accept the quotation.

(3B)

If:

(a) the OTN holder is permitted by section 58AB to quote the

OTN holder's OTN in relation to the supply; and

(b) subsection (3A) does not apply;

the gaseous fuel supplier may, by written notice given to the OTN

holder, accept the quotation.

42 Subsection 59(4)

After "55B" (first occurring), insert "or 58AA".

Schedule 2 Amendments relating to gaseous fuel

52 Clean Energy Legislation Amendment Bill 2012 No. , 2012

43 Subsection 59(4)

Omit "natural gas" (first occurring), substitute "gaseous fuel".

44 Subsection 59(4)

After "55B" (last occurring), insert "or 58AA".

45 Subsection 59(4)

Omit "natural gas" (last occurring), substitute "gaseous fuel".

46 Subsection 59(5)

Omit "natural gas" (first occurring), substitute "gaseous fuel".

47 Subsection 59(5)

After "(3),", insert "(3A), (3B),".

48 Paragraphs 59(5)(e) and (f)

Omit "natural gas", substitute "gaseous fuel".

49 Subsection 59(6)

After "(3),", insert "(3A), (3B),".

50 Subsection 59(7)

Omit "natural gas", substitute "gaseous fuel".

51 Subsection 59(8)

After "(3)", insert ", (3A)".

52 Subsection 60(1)

Omit "natural gas", substitute "gaseous fuel".

53 Subsection 60(2)

Omit "or 58", substitute ", 58 or 58AB".

54 Subsection 60(2)

Omit "natural gas", substitute "gaseous fuel".

55 Subsection 60(3)

Omit "natural gas" (first occurring), substitute "gaseous fuel".

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 53

56 Subsection 60(3)

Omit "natural gas" (last occurring), substitute "gaseous fuel".

57 After subsection 60(3)

Insert:

(3A)

If:

(a) the OTN holder is permitted by section 58AB to quote the

OTN holder's OTN in relation to a supply included in the

class of supplies; and

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

the gaseous fuel supplier must, by written notice given to the OTN

holder, accept the quotation.

(3B)

If:

(a) the OTN holder is permitted by section 58AB to quote the

OTN holder's OTN in relation to a supply included in the

class of supplies; and

(b) subsection (3A) does not apply;

the gaseous fuel supplier may, by written notice given to the OTN

holder, accept the quotation.

58 Subsection 60(4)

After "55B" (first occurring), insert "or 58AA".

59 Subsection 60(4)

Omit "natural gas" (first occurring), substitute "gaseous fuel".

60 Subsection 60(4)

After "55B" (last occurring), insert "or 58AA".

61 Subsection 60(4)

Omit "natural gas" (last occurring), substitute "gaseous fuel".

62 Subsection 60(5)

Omit "natural gas" (first occurring), substitute "gaseous fuel".

63 Subsection 60(5)

After "(3),", insert "(3A), (3B),".

Schedule 2 Amendments relating to gaseous fuel

54 Clean Energy Legislation Amendment Bill 2012 No. , 2012

64 Paragraphs 60(5)(e) and (f)

Omit "natural gas", substitute "gaseous fuel".

65 Subsection 60(6)

After "(3),", insert "(3A), (3B),".

66 Subsection 60(7)

Omit "natural gas", substitute "gaseous fuel".

67 Subsection 60(8)

After "(3)", insert ", (3A)".

68 Subsection 63(1)

After "natural gas", insert ", liquefied petroleum gas or liquefied natural

gas".

69 Subsection 63(4)

After "natural gas" (wherever occurring), insert ", liquefied petroleum

gas or liquefied natural gas".

70 Subsections 64(1) and (3)

After "natural gas", insert "liquefied petroleum gas or liquefied natural

gas".

71 After subsection 126(7)

Insert:

Importer or producer of liquefied petroleum gas or liquefied

natural gas for non-transport use etc.

(7A) For the purposes of this Act, if a particular number would have

been the provisional emissions number of the person for the

relevant eligible financial year under a particular provision of

Division 3A of Part 3 if it were assumed that the relevant eligible

financial year ended at the end of 31 March in the relevant eligible

financial year, the number is an interim emissions number of the

person for the relevant eligible financial year.

72 Paragraph 228(1)(a)

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 55

After "natural gas", insert ", liquefied petroleum gas or liquefied natural

gas".

73 After paragraph 262(1)(f)

Insert:

(fa)

subsection

58AA(1);

(fb)

subsection

58AA(2);

(fc)

subsection

58AB(2);

74 After paragraph 262(1)(g)

Insert:

(ga)

subsection

59(3A);

75 After paragraph 262(1)(i)

Insert:

(ia)

subsection

60(3A);

Fuel Tax Act 2006

76 Section 2-1

After:

Fuel tax credits are also provided for fuel for use in aircraft if the

fuel is covered by the Opt-in Scheme. The amount of the credit is

limited to the carbon component rate that was factored into the rate

of fuel tax.

insert:

Fuel tax credits are also provided for gaseous fuel that is subject to

the carbon pricing mechanism if the fuel is for use in agriculture,

fishing operations or forestry. The amount of the credit is the

amount of the carbon charge that is embedded in the price of the

fuel.

77 Subsection 41-15(1)

Omit "or Division 42" (wherever occurring), substitute ", Division 42 or

Division 42A".

78 At the end of Subdivision 41-B

Schedule 2 Amendments relating to gaseous fuel

56 Clean Energy Legislation Amendment Bill 2012 No. , 2012

Add:

41-35 No fuel tax credit under this Division or Division 42 for

gaseous fuel that is subject to the carbon pricing

mechanism

(1) You are not entitled to a fuel tax credit (under this Division or

Division 42) for taxable fuel if:

(a) the fuel is compressed natural gas, liquefied petroleum gas or

liquefied natural gas; and

(b) the fuel is subject to the carbon pricing mechanism (within

the meaning of subsection 42A-5(3) or (4)).

(2) For the purposes of this section, compressed natural gas, liquefied

petroleum gas and liquefied natural gas have the same respective

meanings as in the Clean Energy Act 2011.

79 After Division 42

Insert:

Division 42A--Fuel tax credit for gaseous fuel that is

subject to the carbon pricing mechanism

Table of Subdivisions

Guide to Division 42A

42A-A Fuel tax credit for gaseous fuel that is subject to the carbon

pricing mechanism

Guide to Division 42A

42A-1 What this Division is about

Fuel tax credits are provided under this Division for gaseous fuel

that is subject to the carbon pricing mechanism if the fuel is for use

in agriculture, fishing operations or forestry.

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 57

Subdivision 42A-A--Fuel tax credit for gaseous fuel that is

subject to the carbon pricing mechanism

Table of Sections

42A-5

Fuel tax credit for gaseous fuel that is subject to the carbon pricing

mechanism

42A-5 Fuel tax credit for gaseous fuel subject to the carbon pricing

mechanism

(1) You are entitled to a fuel tax credit for taxable fuel that you acquire

or manufacture in, or import into, Australia to the extent that:

(a) the fuel is compressed natural gas, liquefied petroleum gas or

liquefied natural gas; and

(b) you acquire, manufacture or import the fuel for use in:

(i)

agriculture; or

(ii)

fishing operations; or

(iii)

forestry; and

the meaning of subsection (3) or (4)); and

(d) you acquire, manufacture or import the fuel for use in

carrying on your

enterprise.

Registration for GST

(2) However, you are only entitled to the fuel tax credit if, at the time

you acquire, manufacture or import the fuel, you are

registered for

GST, or

required to be registered for GST.

When fuel is subject to the carbon pricing mechanism

(3) Compressed natural gas is subject to the carbon pricing

mechanism if:

(a) a person has, under section 33 or 35 of the Clean Energy Act

2011, a preliminary emissions number for an eligible

financial year; and

(b) the preliminary emissions number is attributable to the

supply of the natural gas that was used to manufacture or

produce the compressed natural gas.

Schedule 2 Amendments relating to gaseous fuel

58 Clean Energy Legislation Amendment Bill 2012 No. , 2012

(4) Liquefied petroleum gas or liquefied natural gas is subject to the

carbon pricing mechanism if:

(a) a person has, under section 36B or 36C of the Clean Energy

Act 2011, a preliminary emissions number for an eligible

financial year; and

(b) the preliminary emissions number is attributable to the

import, manufacture or production of the liquefied petroleum

gas or liquefied natural gas.

Definitions

(5) For the purposes of this section, compressed natural gas, liquefied

petroleum gas, liquefied natural gas, preliminary emissions

number, eligible financial year, natural gas, person and supply

have the same respective meanings as in the Clean Energy Act

2011.

80 Section 43-1

After:

For fuel for use in aircraft that is covered by the Opt-in Scheme,

the amount of the credit is reduced so that it is limited to the carbon

component rate that was factored into the rate of fuel tax.

insert:

For gaseous fuel that is subject to the carbon pricing mechanism,

the amount of the credit is the amount of the carbon charge that is

embedded in the price of the fuel.

81 Subsection 43-5(1)

After "for taxable fuel", insert "(other than a fuel tax credit to which

you are entitled under Division 42A)".

82 At the end of section 43-5

Add:

Amendments relating to gaseous fuel Schedule 2

Clean Energy Legislation Amendment Bill 2012 No. , 2012 59

Fuel tax credit to which you are entitled under Division 42A

(4) If you are entitled to a fuel tax credit under Division 42A for

taxable fuel, the amount of the fuel tax credit is the amount of

carbon reduction that applies to the fuel that you acquired,

manufactured or imported.

(5) For the purposes of subsection (4), disregard paragraph 43-8(4)(b).

83 Subsection 43-8(1)

Omit ", to 3 decimal places (rounding up if the fourth decimal place is 5

or more),".

84 After subsection 43-8(1)

Insert:

(1A) In applying the formula in subsection (1):

(a) first, calculate, to 3 decimal places (rounding up if the fourth

decimal place is 5 or more), the product of:

(i) the factor known as carbon price; and

(ii) the factor known as carbon emission rate; and

(b) second, multiply the result of that calculation by the factor

known as quantity of fuel.

85 Section 110-5 (definition of taxable fuel)

Repeal the definition, substitute:

taxable fuel means:

(a) fuel in respect of which duty is payable under:

(i)

the

Excise Act 1901 and the Excise Tariff Act 1921; or

(ii)

the

Customs Act 1901 and the Customs Tariff Act 1995;

(b) compressed natural gas, liquefied petroleum gas, or liquefied

natural gas, that is subject to the carbon pricing mechanism

(within the meaning of subsection 42A-5(3) or (4));

but does not include fuel covered by:

1921; or

Schedule 2 Amendments relating to gaseous fuel

60 Clean Energy Legislation Amendment Bill 2012 No. , 2012

(d) any imported goods that would be classified to item 15 of the

Schedule to the Excise Tariff Act 1921, if the goods had been

manufactured in Australia.

For the purposes of paragraph (b) of this definition, compressed

natural gas, liquefied petroleum gas and liquefied natural gas

have the same respective meanings as in the Clean Energy Act

2011.

Note:

Item 15 of the Schedule to the Excise Tariff Act 1921 deals with

certain petroleum based oils and greases. Item 20 of that Schedule

deals with certain stabilised crude petroleum oils. Item 21 of that

Schedule deals with certain condensate.

Amendments relating to the carbon farming initiative Schedule 3

Clean Energy Legislation Amendment Bill 2012 No. , 2012 61

Schedule 3--Amendments relating to the

carbon farming initiative

Carbon Credits (Carbon Farming Initiative) Act 2011

1 Paragraph 15(2)(e)

Omit "first crediting period", substitute "first reporting period".

2 Subsection 28(2)

Omit "first crediting period", substitute "first reporting period".

3 Subsection 31(1)

Omit "first crediting period", substitute "first reporting period".

4 Paragraph 34(2)(a)

Omit "first crediting period", substitute "first reporting period".

5 Subsections 106(10) and (11)

Repeal the subsections.

6 Subsection 122(3)

Repeal the subsection, substitute:

(3)

If:

(a) a methodology determination is made on or before 30 June

2013; and

(b) an application under section 108 for endorsement of a

proposal for the determination was made on or before

30 June 2012;

the determination may be expressed to have come into force at the

start of 1 July 2010.

7 Paragraph 168(1)(h)

Omit "first crediting period", substitute "first reporting period".

8 Transitional--declarations under section 27 of the Carbon

Credits (Carbon Farming Initiative) Act 2011

Schedule 3 Amendments relating to the carbon farming initiative

62 Clean Energy Legislation Amendment Bill 2012 No. , 2012

If:

(a) before the commencement of this item, a declaration was

made under section 27 of the Carbon Credits (Carbon

Farming Initiative) Act 2011 in relation to an offsets project;

and

(b) immediately before the commencement of this item, the

declaration was subject to a condition that all regulatory

approvals must be obtained for the project before the end of

the first crediting period for the project;

the declaration has effect, after the commencement of this item, as if the

condition were instead a condition that all regulatory approvals must be

obtained for the project before the end of the first reporting period for

the project.

Amendments relating to the Australian National Registry of Emissions Units Schedule

Clean Energy Legislation Amendment Bill 2012 No. , 2012 63

Schedule 4--Amendments relating to the

Australian National Registry of

Emissions Units

Australian National Registry of Emissions Units Act 2011

1 Section 4

Insert:

business day means a day that is not:

(a) a Saturday; or

(b) a Sunday; or

2 After subsection 27(3)

Insert:

(3A) Regulations made for the purposes of subsection (1) may:

(a) make provision for identifying Registry accounts that are

restricted Registry accounts for the purposes of this section;

and

(b) restrict or limit the operation of restricted Registry accounts.

(3B) Regulations made for the purposes of subsection (3A) may:

(a) prohibit, restrict or limit the transfer of units from a restricted

Registry account; or

(b) prohibit, restrict or limit the transfer of units to a restricted

Registry account; or

restricted Registry account.

(3C) Subsection (3B) does not limit subsection (3A).

(3D) Subsections (3A) and (3B) do not limit subsection (1).

(3E) Section 28C does not limit subsections (3A) and (3B) of this

section.

3 Subsection 28A(2)

Amendments relating to the Clean Energy Finance Corporation Schedule 5

Clean Energy Legislation Amendment Bill 2012 No. , 2012 65

Schedule 5--Amendments relating to the

Clean Energy Finance Corporation

Australian Renewable Energy Agency Act 2011

1 After section 73

Insert:

73A Disclosure of information to Clean Energy Finance Corporation

ARENA may disclose information to the Clean Energy Finance

Corporation if the disclosure will enable or assist the Clean Energy

Finance Corporation to perform or exercise any of its functions or

powers.

Clean Energy Regulator Act 2011

2 After paragraph 49(1)(s)

Insert:

(sa) the Clean Energy Finance Corporation;

Commonwealth of Australia Bills

CLEAN ENERGY LEGISLATION AMENDMENT BILL 2012