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This is a Bill, not an Act. For current law, see the Acts databases.
CARBON POLLUTION REDUCTION SCHEME BILL 2010
2008-2009-2010
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Carbon Pollution Reduction Scheme Bill
2010
No. , 2010
(Climate Change and Water)
A Bill for an Act to reduce pollution caused by
emissions of carbon dioxide and other greenhouse
gases, and for other purposes
i Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Contents
Part 1--Preliminary
1
1 Short
title
...........................................................................................
1
2 Commencement
.................................................................................
2
3 Objects
...............................................................................................
3
4 Simplified
outline
..............................................................................
4
5 Definitions
.........................................................................................
5
5A
Extended meaning of supply ............................................................ 31
6 When
supply
occurs
.........................................................................
31
7
Vacancy in the office of an expert advisory committee
member ............................................................................................ 32
7A
Vacancy in the office of a Domestic Offsets Integrity
Committee member ......................................................................... 33
8
Electronic notice transmitted to the Authority ................................. 33
9
Crown to be bound ........................................................................... 34
10
Extension to external Territories ...................................................... 34
11
Extension to exclusive economic zone and continental shelf .......... 34
11A
Extension to Joint Petroleum Development Area ............................ 34
12 Application
to
foreign ships ............................................................. 34
Part 2--National scheme cap and national scheme gateway
36
13 Simplified
outline
............................................................................
36
14
National scheme cap ........................................................................ 36
15
National scheme gateway ................................................................ 39
Part 3--Liable entities
42
Division 1--Introduction
42
16 Simplified
outline
............................................................................
42
Division 2--Direct emitters of greenhouse gases
44
Subdivision A--General rules
44
17 Liable
entity--controlling
corporation of a group ........................... 44
18 Liable
entity--non-group entity ...................................................... 47
19
Liable entity--holder of a liability transfer certificate .................... 51
Subdivision B--Landfill facilities
54
20
Liable entity for landfill emissions--controlling corporation
of a group ......................................................................................... 54
21
Liable entity for landfill emissions--non-group entity .................... 59
22
Liable entity for landfill emissions--holder of a liability
transfer certificate ............................................................................ 64
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 ii
Subdivision BA--Adjustment of provisional emissions number in
relation to a facility in the Joint Petroleum
Development Area or the Greater Sunrise unit
area
69
22A Joint
Petroleum
Development Area--adjustment of
provisional emissions number.......................................................... 69
22B
Joint Petroleum Development Area-Greater Sunrise unit
area--adjustment of provisional emissions number ........................ 70
22C
Greater Sunrise unit area--adjustment of provisional
emissions number ............................................................................ 71
Subdivision C--Anti-avoidance
72
23 Anti-avoidance
.................................................................................
72
Subdivision D--Greenhouse gas emitted from the operation of a
facility
73
24
Greenhouse gas emitted from the operation of a facility ................. 73
25
Measurement of greenhouse gas emitted from the operation
of a facility ....................................................................................... 75
Division 3--Importers, manufacturers and suppliers of synthetic
greenhouse gases
76
26 Liable
entity--import
of
synthetic greenhouse gas ......................... 76
27
Liable entity--manufacture of synthetic greenhouse gas ................ 77
27A
Reduction of total provisional emissions numbers--
netted-out numbers .......................................................................... 78
28 Liable
entity--re-supply
of
synthetic greenhouse gas to
recipient who does not quote an OTN ............................................. 81
29
Liable entity--supply of synthetic greenhouse gas to a
person who misuses the person's OTN ............................................ 81
30 Anti-avoidance
.................................................................................
82
Division 4--Importers, producers and suppliers of eligible
upstream fuels
84
31 Liable
entity--import
of
liquid petroleum fuel ................................ 84
32
Liable entity--production of liquid petroleum fuel ......................... 85
32A
Reduction of total provisional emissions numbers under
section 31 or 32--netted-out numbers ............................................. 86
33
Liable entity--supply of untransformed eligible upstream
fuel (other than liquid petroleum fuel) ............................................. 88
33A
Liable entity--re-supply of natural gas previously supplied
out of a prescribed wholesale gas market ........................................ 89
34
Liable entity--application to own use of untransformed
eligible upstream fuel (other than liquid petroleum fuel) ................ 89
35
Liable entity--supply of transformed eligible upstream fuel .......... 90
iii Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
36
Liable entity--application of transformed eligible upstream
fuel to own use ................................................................................. 91
37 Liable
entity--re-supply
of
eligible upstream fuel .......................... 92
37A
Exclusion of exported eligible upstream fuel .................................. 93
38
Liable entity--application of eligible upstream fuel to OTN
holder's own use .............................................................................. 95
39
Liable entity--application of transformed eligible upstream
fuel to OTN holder's own use .......................................................... 96
40
Liable entity--supply of eligible upstream fuel to a person
who misuses the person's OTN ....................................................... 97
Division 5--Obligation transfer numbers
98
Subdivision A--Issue of obligation transfer numbers
98
41
Issue of OTN .................................................................................... 98
42 Application
for
OTN
........................................................................
98
43 Further
information
..........................................................................
98
44
Issue of OTN as the result of an application .................................... 99
45
Issue of OTN on the Authority's own initiative ............................. 100
46 Surrender
of
OTN
..........................................................................
100
47
Cancellation of OTN ...................................................................... 101
48
OTN is not transferable .................................................................. 101
49 OTN
Register
.................................................................................
101
50 Evidentiary
provisions
...................................................................
102
50A
Notification of change of name or address of OTN holder ............ 102
Subdivision B--Methods of quotation of obligation transfer
numbers
103
51 Quotation
of
OTN
..........................................................................
103
51A One-off
quotation of OTN ............................................................. 104
51B Standing
quotation of OTN ............................................................ 105
51BA
Withdrawal of quotation of OTN if OTN is cancelled or
surrendered .................................................................................... 106
51C
Withdrawal of standing quotation of OTN by OTN holder ........... 106
51D
Withdrawal of quotation of OTN by agreement ............................ 106
51E Validation
of
quotation of OTN ..................................................... 107
51F
Effect of surrender or cancellation of OTN--grace period for
standing quotation .......................................................................... 107
51G
Effect of surrender or cancellation of OTN--grace period for
one-off quotation ........................................................................... 108
Subdivision C--Mandatory quotation of obligation transfer
numbers
109
52
Mandatory quotation of OTN--large user of eligible
upstream fuel ................................................................................. 109
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 iv
53
Mandatory quotation of OTN--re-supplier of natural gas ............. 110
54
Mandatory quotation of OTN--liquid petroleum gas
marketer ......................................................................................... 111
55
Mandatory quotation of OTN--use of certain fuels as a
feedstock ........................................................................................ 112
Subdivision D--Voluntary quotation of obligation transfer
numbers
113
56
Voluntary quotation of OTN--large user of eligible
upstream fuel ................................................................................. 113
58
Voluntary quotation of OTN--use of fuel in manufacturing
other products etc. .......................................................................... 115
59
Voluntary quotation of OTN--transformation of fuel ................... 115
60
Voluntary quotation of OTN--export or re-supply of eligible
upstream fuel ................................................................................. 116
63
Voluntary quotation of OTN--re-supply of synthetic
greenhouse gas ............................................................................... 116
64
Voluntary quotation of OTN--export or re-supply of
synthetic greenhouse gas ............................................................... 116
64AA
Voluntary quotation of OTN--use of synthetic greenhouse
gas as a feedstock ........................................................................... 117
Subdivision E--General provisions
117
64A
Acknowledgement of one-off quotation of OTN ........................... 117
64B
Acknowledgement of standing quotation of OTN ......................... 118
65
Rejection of quotation of OTN--re-supply of eligible
upstream fuel ................................................................................. 118
66 Rejection
of
voluntary quotation of OTN ...................................... 120
66A Unauthorised
mandatory quotation of OTN .................................. 120
67
Misuse of OTN .............................................................................. 121
68 Quotation
of
bogus OTN ............................................................... 122
Division 6--Liability transfer certificates
124
Subdivision A--Transfer of liability to another member of a
controlling corporation's group
124
69 Category
A
transfer test ................................................................. 124
70 Application
for
liability
transfer certificate ................................... 124
71 Further
information
........................................................................
125
72
Issue of liability transfer certificate ............................................... 125
Subdivision B--Transfer of liability to a person who has financial
control of a facility
126
73
Category B transfer test ................................................................. 126
74 Application
for
liability
transfer certificate ................................... 127
75 Further
information
........................................................................
128
v Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
76
Issue of liability transfer certificate ............................................... 128
Subdivision C--Other provisions
130
77
Duration of liability transfer certificate ......................................... 130
78
Surrender of liability transfer certificate ........................................ 131
79
Cancellation of liability transfer certificate ................................... 132
80
Liability transfer certificate is not transferable .............................. 133
81 Financial
control
............................................................................
133
Part 4--Emissions units
135
Division 1--Introduction
135
82 Simplified
outline
..........................................................................
135
Division 2--Australian emissions units
137
Subdivision A--Issue of Australian emissions units
137
83
Issue of Australian emissions units ................................................ 137
84 Identification
number
.....................................................................
137
85 Vintage
year
...................................................................................
137
86 When
Australian
emissions
units may be issued ........................... 137
87
How Australian emissions units are to be issued ........................... 138
88
Circumstances in which Australian emissions units may be
issued ............................................................................................. 138
89
Issue of Australian emissions units for a fixed charge ................... 138
90
Payment of charges for the issue of Australian emissions
units ............................................................................................... 142
91
Imposition of charges for the issue of Australian emissions
units ............................................................................................... 143
92
Issue of Australian emissions units--national scheme cap
number ........................................................................................... 143
93 Australian
emissions
units--total number ..................................... 143
Subdivision B--Property in, and transfer of, Australian emissions
units
144
94
An Australian emissions unit is personal property ........................ 144
95 Transfer
of
Australian emissions units........................................... 144
96 Transmission
of
Australian
emissions units by assignment ........... 145
97 Transmission
of
Australian
emissions units by operation of
law etc. ........................................................................................... 146
98
Transfer of Australian emissions units to another Registry
account held by the transferor ........................................................ 147
98A
Equitable interests in relation to an Australian emissions unit ...... 148
Subdivision C--Auctions of Australian emissions units
148
99
Issue of Australian emissions units as the result of an auction ...... 148
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 vi
100
Secondary market auctions of relinquished Australian
emissions units ............................................................................... 149
101
Secondary market auctions of free Australian emissions units ...... 149
102
Combined auctions of Australian emissions units ......................... 150
103 Policies,
procedures
and
rules for auctioning Australian
emissions units ............................................................................... 150
Subdivision D--Special provisions relating to free Australian
emissions units
151
103A
Cancellation of certain unused free Australian emissions
units ............................................................................................... 151
103B
Buy-back of certain free Australian emissions units ...................... 152
Division 3--Kyoto units
154
104
Entries for Kyoto units ................................................................... 154
105
Issue of Australia's assigned amount units .................................... 154
106
Issue of removal units .................................................................... 154
107 Transfer
of
Kyoto units .................................................................. 155
108 Domestic
transfers
of Kyoto units ................................................. 156
109
Outgoing international transfers of Kyoto units............................. 157
110
Incoming international transfers of Kyoto units ............................ 158
111
Compliance by Australia with emissions trading eligibility
requirements under the Kyoto rules ............................................... 159
112 Kyoto
rules.....................................................................................
159
113 Carry-over
restrictions ................................................................... 160
114 Commitment
period
reserve ........................................................... 161
115
Cancellation of temporary certified emission reductions or
long-term certified emission reductions ......................................... 162
116
Replacement of long-term certified emission reductions ............... 162
116A
Restrictions on transfer of Kyoto units to a Commonwealth
Registry account ............................................................................ 164
116B
A registered Kyoto unit is personal property for certain
purposes ......................................................................................... 164
116BA Equitable interests in relation to a Kyoto unit ................................ 164
116C
Transmission of registered Kyoto units by operation of law
etc. .................................................................................................. 165
Division 4--Non-Kyoto international emissions units
167
117
Entries for non-Kyoto international emissions units ...................... 167
118
Transfer of non-Kyoto international emissions units ..................... 167
119
Domestic transfers of non-Kyoto international emissions
units ............................................................................................... 168
120
Outgoing international transfers of non-Kyoto international
emissions units ............................................................................... 169
vii Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
121
Incoming international transfers of non-Kyoto international
emissions units ............................................................................... 170
122 Surrender
restrictions ..................................................................... 170
122A
A registered non-Kyoto international emissions unit is
personal property for certain purposes ........................................... 170
122AA Equitable interests in relation to a non-Kyoto international
emissions unit ................................................................................ 171
122B
Transmission of registered non-Kyoto international
emissions units by operation of law etc. ........................................ 171
123
Regulations about non-Kyoto international emissions units .......... 173
Part 5--Emissions number
174
124 Simplified
outline
..........................................................................
174
125 Emissions
number
..........................................................................
174
126
Assessment of emissions number--incorrect report given by
liable entity .................................................................................... 175
127
Assessment of emissions number--no report given by liable
entity .............................................................................................. 176
Part 6--Surrender of eligible emissions units
178
Division 1--Introduction
178
128 Simplified
outline
..........................................................................
178
Division 2--How eligible emissions units are surrendered
180
129
How eligible emissions units are surrendered ................................ 180
Division 3--Unit shortfalls
184
130 Unit
shortfalls
................................................................................
184
131
Assessment of unit shortfall ........................................................... 185
Division 4--Obligation to surrender eligible emissions units
188
132
Obligation to surrender eligible emissions units ............................ 188
133
Penalty for unit shortfall ................................................................ 188
134
When penalty becomes due and payable ....................................... 189
135 Late
payment
penalty
.....................................................................
189
136 Recovery
of
penalties ..................................................................... 190
137 Set-off
............................................................................................
190
138
Liability transfer certificate--statutory guarantee ......................... 191
139 Refund
of
overpayments ................................................................ 191
141 Benchmark
average
auction price .................................................. 192
142 Make-good
number ........................................................................ 193
143 Excess
surrender number ............................................................... 194
Division 5--Extension of surrender deadline
197
143A Extension
of
surrender deadline ..................................................... 197
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 viii
Part 7--Australian National Registry of Emissions Units
199
Division 1--Introduction
199
144 Simplified
outline
..........................................................................
199
Division 2--Australian National Registry of Emissions Units
200
145 Australian
National
Registry of Emissions Units .......................... 200
Division 3--Registry accounts
201
146 Registry
accounts
...........................................................................
201
147
Opening of Registry accounts--general ........................................ 201
148
Designation of Commonwealth Registry accounts ........................ 202
149
Opening of new Commonwealth Registry accounts ...................... 203
150
Units in a retirement, cancellation or replacement account ........... 203
151
Totals of Australian emissions units in a Registry account ........... 204
152
Voluntary closure of Registry accounts ......................................... 204
Division 4--Change in name of account holder
206
153
Application to have new name entered on the Registry ................. 206
154
Alteration in the Registry ............................................................... 206
Division 5--Correction and rectification of Registry
207
155
Corrections of clerical errors or obvious defects ........................... 207
157
General power of correction of Registry--Kyoto units ................. 207
158
General power of correction of Registry--non-Kyoto
international emissions units .......................................................... 207
159 Rectification
of Registry ................................................................ 208
Division 6--Miscellaneous
210
160
Making a false entry in the Registry .............................................. 210
161 Falsified
documents
.......................................................................
210
162 Evidentiary
provisions
...................................................................
210
163
Use and disclosure of information obtained from the
Registry .......................................................................................... 211
164 Regulations
about
the Registry ...................................................... 212
Part 8--Emissions-intensive trade-exposed assistance program
214
Division 1--Introduction
214
165
Aim and objects ............................................................................. 214
166 Simplified
outline
..........................................................................
215
Division 2--Formulation of the emissions-intensive
trade-exposed assistance program
216
167 Emissions-intensive
trade-exposed assistance program ................. 216
168 Relinquishment
requirement .......................................................... 216
169 Reporting
requirement
...................................................................
217
ix Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
170 Record-keeping
requirement .......................................................... 217
171 Other
matters
.................................................................................
218
172
Ancillary or incidental provisions .................................................. 218
Division 3--Compliance with reporting and record-keeping
requirements under the emissions-intensive
trade-exposed assistance program
219
173
Compliance with reporting and record-keeping requirements ....... 219
Division 4--Special information-gathering powers
221
173A
Minister may obtain information ................................................... 221
173B
No assistance for 2 eligible financial years if corporation
refuses or fails to comply with request for information ................. 222
173C
Disclosure of information to the Authority .................................... 222
Part 8A--Coal mining
224
Division 1--Introduction
224
173D Object
.............................................................................................
224
173E Simplified
outline
..........................................................................
224
Division 2--Issue of free Australian emissions units in respect of
coal mining
225
173F
Issue of free Australian emissions units in respect of coal
mining ............................................................................................ 225
Division 3--Certificate of entitlement to coal mining assistance
226
173G
Application for certificate of entitlement to coal mining
assistance ....................................................................................... 226
173H
Form of application ........................................................................ 226
173J Further
information
........................................................................
227
173K
Issue of certificate of entitlement to coal mining assistance .......... 227
173L Unit
entitlement
.............................................................................
229
173M
Certificate of entitlement to coal mining assistance is not
transferable .................................................................................... 231
Division 4--Eligible coal mining area
232
173N
Application for declaration of eligible coal mining area ................ 232
173P
Form of application ........................................................................ 232
173Q Further
information
........................................................................
232
173R Declaration
of
eligible coal mining area ........................................ 233
Division 5--Miscellaneous
236
173S Base
period
fugitive
emissions number ......................................... 236
173T
Base period saleable coal number .................................................. 236
173TA Capped base period saleable coal number ..................................... 236
173U
Adjusted base period fugitive emissions intensity number ............ 236
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 x
173V
Adjusted base period fugitive emissions number ........................... 237
173W
Coal mining control test ................................................................. 237
173X Submerged
land
.............................................................................
239
Part 9--Coal-fired electricity generation
240
Division 1--Introduction
240
174 Object
.............................................................................................
240
175 Simplified
outline
..........................................................................
240
Division 2--Issue of free Australian emissions units in respect of
generation assets
242
176
Issue of free Australian emissions units in respect of
generation assets ............................................................................ 242
Division 3--Certificate of eligibility for coal-fired generation
assistance
247
177
Application for certificate of eligibility for coal-fired
generation assistance ...................................................................... 247
178
Form of application ........................................................................ 248
179 Further
information
........................................................................
248
180
Issue of certificate of eligibility for coal-fired generation
assistance ....................................................................................... 249
181
Criteria for issuing certificate of eligibility for coal-fired
generation assistance ...................................................................... 250
182 Annual
assistance factor ................................................................ 252
Division 4--Windfall gain
255
183
Reduced assistance for 2018-2019, 2019-2020 and
2020-2021 if a windfall gain declaration is in force etc. ................ 255
184 Revocation
of
Ministerial determination ....................................... 255
184A
Revocation of Ministerial determination--issue of free
Australian emissions units ............................................................. 257
185 Submission
about
windfall gain ..................................................... 258
186 Windfall
gain
declaration ............................................................... 259
187
Windfall gain test ........................................................................... 261
Division 5--Power system reliability
266
188
No assistance if generation asset does not pass the power
system reliability test ..................................................................... 266
189
Power system reliability test .......................................................... 266
189AA Replacement
capacity
....................................................................
269
189AB Nomination
of
generation units ..................................................... 272
189AC Validity of nomination ................................................................... 275
189A
Anticipatory
certification--reduction in nameplate rating ........... 275
xi Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
189B
Anticipatory certification--cessation of registration as a
generator ........................................................................................ 276
189C Intermediary
registered as a generator ........................................... 277
189D Financial
year
beginning on 1 July 2010 ....................................... 278
Part 10--Reforestation
279
Division 1--Introduction
279
190 Simplified
outline
..........................................................................
279
Division 2--Issue of free Australian emissions units in respect of
reforestation
281
191
Issue of free Australian emissions units in respect of
reforestation ................................................................................... 281
Division 3--Certificate of reforestation
282
192 Application
for
certificate of reforestation ..................................... 282
193
Form of application ........................................................................ 282
194 Further
information
........................................................................
283
195
Issue of certificate of reforestation ................................................ 283
196 Unit
entitlement
.............................................................................
286
197
Certificate of reforestation is not transferable ................................ 287
Division 3A--Project managers
288
197A
Project manager for a reforestation project .................................... 288
197B
Scheme obligation transfer agreement ........................................... 288
197C
Holder of carbon sequestration right may elect to assume
scheme obligations ......................................................................... 291
Division 4--Recognised reforestation entities
292
198 Application
for
recognition
as a reforestation entity ...................... 292
199
Form of application ........................................................................ 292
200 Further
information
........................................................................
292
201
Recognition as a reforestation entity .............................................. 293
202 Cancellation
of
recognition ............................................................ 295
203 Surrender
of
recognition ................................................................ 296
204 Recognition
is
not
transferable ...................................................... 297
Division 5--Eligible reforestation projects
298
Subdivision A--Declaration of eligible reforestation project
298
205
Application for declaration of eligible reforestation project .......... 298
206
Form of application ........................................................................ 298
207 Further
information
........................................................................
298
208 Withdrawal
of
application ............................................................. 299
209 Declaration
of
eligible
reforestation project .................................. 299
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 xii
Subdivision B--Voluntary variation of declaration of eligible
reforestation project
302
210
Application for variation of declaration of eligible
reforestation project ....................................................................... 302
211 Withdrawal
of
application ............................................................. 303
212
Variation of declaration of eligible reforestation project ............... 304
Subdivision C--Unilateral variation of declaration of eligible
reforestation project
307
213
Variation of declaration of eligible reforestation project--
partial cessation of reforestation activity in a part of a project
area ................................................................................................. 307
213A
Variation of declaration of eligible reforestation project that
has 2 or more project areas--cessation of reforestation
activity in the whole of a project area ............................................ 308
214
Variation of declaration of eligible reforestation project--
eligibility requirements not met in a part of a project area ............ 309
214A
Variation of declaration of eligible reforestation project that
has 2 or more project areas--eligibility requirements not met
in the whole of a project area ......................................................... 311
214B
Variation of declaration of eligible reforestation project--
ceasing to hold carbon sequestration right in relation to part
of a project area ............................................................................. 312
214C
Variation of declaration of eligible reforestation project that
has 2 or more project areas--ceasing to hold carbon
sequestration right in relation to the whole of a project area ......... 313
Subdivision D--Voluntary revocation of declaration of eligible
reforestation project
314
215
Voluntary revocation of declaration of eligible reforestation
project--units issued ...................................................................... 314
216
Voluntary revocation of declaration of eligible reforestation
project--no units issued ................................................................. 316
Subdivision E--Unilateral revocation of declaration of eligible
reforestation project
317
217
Unilateral revocation of declaration of eligible reforestation
project--cessation of reforestation activity ................................... 317
218
Unilateral revocation of declaration of eligible reforestation
project--eligibility requirements not met ...................................... 318
218A
Unilateral revocation of declaration of eligible reforestation
project--project manager ceases to be a recognised
reforestation entity ......................................................................... 319
219
Unilateral revocation of declaration of eligible reforestation
project--ceasing to hold carbon sequestration right etc. ............... 320
xiii Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
219A
Unilateral revocation of declaration of eligible reforestation
project--project manager ceases to have control of
reforestation project ....................................................................... 321
Division 6--Reforestation unit limit
323
220 Reforestation unit limit .................................................................. 323
221
Increase of reforestation unit limit ................................................. 324
222
Decrease of reforestation unit limit ................................................ 325
Division 6A--Restructure of reforestation projects
326
222A
Restructure of reforestation projects--making of declaration
relating to receiving project ........................................................... 326
222B
Restructure of reforestation projects--variation of
declaration relating to receiving project ......................................... 328
Division 7--Reforestation reporting periods
332
223 First
reforestation
reporting period ................................................ 332
224 Subsequent
reforestation reporting periods .................................... 333
Division 8--Reforestation reporting requirements
334
225 Reforestation
reports
......................................................................
334
Division 9--Forest maintenance obligation
336
Subdivision A--Forest maintenance obligation
336
226 Forest
maintenance obligation ....................................................... 336
226A
Variation or revocation of declaration of forest maintenance
obligation ....................................................................................... 339
226B
Revocation of declaration of forest maintenance obligation--
voluntary relinquishment of Australian emissions units ................ 341
Subdivision AA--Forest restoration order
341
226C Forest
restoration order .................................................................. 341
226D
Variation or revocation of forest restoration order ........................ 344
Subdivision B--Injunctions
345
227 Injunctions
.....................................................................................
345
228 Interim
injunctions
.........................................................................
345
229 Discharge
etc.
of injunctions.......................................................... 346
230
Certain limits on granting injunctions not to apply ........................ 346
231
Other powers of the Federal Court unaffected ............................... 347
Division 10--Relinquishment of Australian emissions units
348
232
Requirement to relinquish--unilateral revocation of
declaration of eligible reforestation project ................................... 348
233
Relinquishment requirement--decrease in reforestation unit
limit for eligible reforestation project ............................................ 349
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 xiv
Division 11--Miscellaneous notification requirements
351
235
Notification requirement--ceasing to hold carbon
sequestration right .......................................................................... 351
235A
Regulations may impose notification requirements ....................... 351
Division 12--Entries in title registers
353
236
Entries in title registers--general ................................................... 353
237
Entries in title registers--land subject to forest maintenance
obligation ....................................................................................... 353
Division 13--Register of Reforestation Projects
355
238
Register of Reforestation Projects ................................................. 355
239
Entries in the Register .................................................................... 355
Division 14--Carbon sequestration right and forestry right
357
Subdivision A--Carbon sequestration right
357
239A
Carbon sequestration right in relation to a reforestation
project ............................................................................................ 357
240
Carbon sequestration right in relation to an area of land ............... 357
Subdivision B--Forestry right
360
241 Forestry
right
.................................................................................
360
Division 14A--Eligible interest in an area of land
362
241A
Eligible interest in an area of land--Torrens system land ............. 362
241B
Eligible interest in an area of land--Crown land that is not
Torrens system land ....................................................................... 363
Division 15--Net total number of Australian emissions units
issued in relation to an eligible reforestation project
364
242
Net total number of Australian emissions units issued in
relation to an eligible reforestation project .................................... 364
Division 16--Transition of reforestation projects from
non-CPRS reforestation schemes
365
243
Request for determination .............................................................. 365
243A
Form of request .............................................................................. 365
243B Further
information ........................................................................ 365
243C Determination
................................................................................
366
Part 11--Destruction of synthetic greenhouse gases
368
Division 1--Introduction
368
244 Simplified
outline
..........................................................................
368
xv Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Division 2--Issue of free Australian emissions units in respect of
the destruction of synthetic greenhouse gases
369
245
Issue of free Australian emissions units in respect of the
destruction of synthetic greenhouse gases ..................................... 369
Division 3--Certificate of eligible synthetic greenhouse gas
destruction
370
246
Application for certificate of eligible synthetic greenhouse
gas destruction ............................................................................... 370
247
Form of application ........................................................................ 370
248 Further
information
........................................................................
371
249
Issue of certificate of eligible synthetic greenhouse gas
destruction ..................................................................................... 371
250
Criteria for issuing certificate of eligible synthetic
greenhouse gas destruction ............................................................ 372
251 Unit
entitlement
.............................................................................
374
252
Certificate of eligible synthetic greenhouse gas destruction is
not transferable .............................................................................. 374
Division 4--Recognised synthetic greenhouse gas destruction
customers
376
253 Application
for
recognition
as a synthetic greenhouse gas
destruction customer ...................................................................... 376
254
Form of application ........................................................................ 376
255 Further
information
........................................................................
376
256
Recognition as a synthetic greenhouse gas destruction
customer ......................................................................................... 377
257 Cancellation
of
recognition ............................................................ 378
258 Surrender
of
recognition ................................................................ 380
259 Recognition
is
not
transferable ...................................................... 380
Part 11A--Domestic offsets program
381
Division 1--Introduction
381
259A Simplified
outline
..........................................................................
381
Division 2--Formulation of the domestic offsets program
382
259B
Formulation of the domestic offsets program ................................ 382
259C Reporting
requirement ................................................................... 384
259D Record-keeping
requirement .......................................................... 385
259E Relinquishment
requirement .......................................................... 385
259F Other
matters
.................................................................................
387
259G
Ancillary or incidental provisions .................................................. 388
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 xvi
Division 3--Compliance with reporting and record-keeping
requirements under the domestic offsets program
389
259H
Compliance with reporting and record-keeping requirements ....... 389
Division 4--Domestic offsets project methodology
determinations
390
259J
Domestic offsets project methodology determinations .................. 390
259K
Domestic offsets project methodology principles .......................... 391
Division 5--Recognised offsets entities
394
259L Application
for
recognition
as an offsets entity ............................. 394
259M
Form of application ........................................................................ 394
259N Further
information
........................................................................
394
259P Recognition
as
an
offsets entity ..................................................... 395
259Q Cancellation
of
recognition ............................................................ 397
259R Surrender
of
recognition ................................................................ 398
259S Recognition
is
not
transferable ...................................................... 399
Part 12--Publication of information
400
Division 1--Introduction
400
260 Simplified
outline
..........................................................................
400
Division 2--Information about liable entities
401
261
Liable Entities Public Information Database ................................. 401
262
Liable entities to be entered in the Information Database .............. 401
263
Emissions number to be entered in the Information Database ....... 402
264
Unit shortfall to be entered in the Information Database ............... 402
265
Unpaid administrative penalty to be entered in the
Information Database ..................................................................... 404
266
Number of surrendered eligible emissions units to be entered
in the Information Database ........................................................... 405
267
Number of voluntarily cancelled units to be entered in the
Information Database ..................................................................... 405
267A
Relinquishment requirement to be entered in the Information
Database ......................................................................................... 406
267B
Unpaid administrative penalty to be entered in the
Information Database ..................................................................... 407
267C
Number of relinquished units to be entered in the
Information Database ..................................................................... 408
268
Correction and rectification of the Information Database .............. 408
Division 3--Information about holders of Registry accounts
409
269
Information about holders of Registry accounts ............................ 409
xvii Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Division 4--Information about units
410
270
Information about auction results--last auction ............................ 410
271
Information about auction results--last 6 months ......................... 410
272
Information about issue of Australian emissions units for a
fixed charge ................................................................................... 412
273
Information about issue of free Australian emissions units ........... 413
274
Quarterly reports about issue of free Australian emissions
units ............................................................................................... 415
275
Information about surrender of borrowed and banked eligible
emissions units ............................................................................... 416
276 Kyoto
information
.........................................................................
416
277
Information about total emissions numbers and unit
shortfalls ........................................................................................ 417
277A
Publication of concise description of the characteristics of
Australian emissions units ............................................................. 417
278
Publication of concise description of the characteristics of
eligible international emissions units ............................................. 417
Division 5--Information about voluntary cancellation of units
held by persons other than liable entities
419
278A
Information about number of voluntarily cancelled
Australian emissions units ............................................................. 419
278B
Information about number of voluntarily cancelled Kyoto
units ............................................................................................... 419
278C
Information about number of voluntarily cancelled
non-Kyoto international emissions units ........................................ 420
Division 6--Information about relinquishment requirements for
persons other than liable entities
421
278D
Information about relinquishment requirements ............................ 421
278E
Information about unpaid administrative penalties ........................ 422
278F
Information about number of relinquished units ............................ 422
Division 7--Information about designated large landfill facilities
424
278G
Publication of list of designated large landfill facilities ................. 424
Division 8--Information about eligible domestic offsets projects
425
278H
Information about eligible domestic offsets projects ..................... 425
Part 13--Fraudulent conduct
426
279 Simplified
outline
..........................................................................
426
280
Units issued as a result of fraudulent conduct--court may
order relinquishment ...................................................................... 426
Part 14--Voluntary cancellation of emissions units
429
281 Simplified
outline
..........................................................................
429
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 xviii
282
Voluntary cancellation of Australian emissions units .................... 429
283 Voluntary
cancellation of Kyoto units ........................................... 430
284
Voluntary cancellation of non-Kyoto international emissions
units ............................................................................................... 431
Part 15--Relinquishment of Australian emissions units
433
Division 1--Introduction
433
285 Simplified
outline
..........................................................................
433
Division 2--How Australian emissions units are relinquished
434
286 How
Australian
emissions
units are relinquished .......................... 434
Division 3--Compliance with relinquishment requirements
438
287 Compliance
with
relinquishment requirements ............................. 438
288 Late
payment
penalty
.....................................................................
440
289 Recovery
of
penalties ..................................................................... 441
290 Set-off
............................................................................................
441
291 Refund
of
overpayments ................................................................ 441
Part 16--Notification of significant holding of Australian
emissions units
443
292 Simplified
outline
..........................................................................
443
293
Notification of significant holding of Australian emissions
units--controlling corporation of a group ..................................... 443
294
Notification of significant holding of Australian emissions
units--non-group entity ................................................................. 445
Part 17--Information-gathering powers
448
295 Simplified
outline
..........................................................................
448
296
Authority may obtain information or documents ........................... 448
297 Copying
documents--compensation ............................................. 449
298 Copies
of
documents ...................................................................... 449
299 Authority
may
retain documents .................................................... 450
300 Self-incrimination
..........................................................................
450
Part 18--Record-keeping requirements
452
301 Simplified
outline
..........................................................................
452
302 Record-keeping
requirements--general ........................................ 452
303 Record-keeping
requirements--quotation of OTN ........................ 453
304
Record-keeping requirements--rejection of quotation of
OTN ............................................................................................... 454
304A
Record-keeping requirements--preparation of reforestation
report .............................................................................................. 455
xix Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Part 19--Monitoring powers
456
Division 1--Simplified outline
456
305 Simplified
outline
..........................................................................
456
Division 2--Appointment of inspectors and issue of identity
cards
457
306 Appointment
of
inspectors ............................................................. 457
307 Identity
cards
.................................................................................
457
Division 3--Powers of inspectors
459
Subdivision A--Monitoring powers
459
308
Inspector may enter premises by consent or under a warrant ........ 459
309 Monitoring
powers
of inspectors ................................................... 459
310 Persons
assisting
inspectors ........................................................... 462
Subdivision B--Powers of inspectors to ask questions and seek
production of documents
462
311
Inspector may ask questions and seek production of
documents ...................................................................................... 462
312 Self-incrimination
..........................................................................
463
Division 4--Obligations and incidental powers of inspectors
464
313 Consent
..........................................................................................
464
314
Announcement before entry under warrant ................................... 464
315
Inspector to be in possession of warrant ........................................ 465
316
Details of warrant etc. to be given to occupier............................... 465
317
Expert assistance to operate electronic equipment ......................... 465
318
Compensation for damage to electronic equipment ....................... 467
Division 5--Occupier's rights and responsibilities
469
319
Occupier entitled to observe execution of warrant ........................ 469
320
Occupier to provide inspector with facilities and assistance .......... 469
Division 6--Monitoring warrants
470
321 Monitoring
warrants
......................................................................
470
Division 7--Powers of magistrates
472
322 Powers
of
magistrates
....................................................................
472
Part 20--Liability of executive officers of bodies corporate
473
323 Simplified
outline
..........................................................................
473
324
Civil penalties for executive officers of bodies corporate .............. 473
325
Reasonable steps to prevent contravention .................................... 474
Part 21--Civil penalty orders
475
326 Simplified
outline
..........................................................................
475
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 xx
326A References
to Court ....................................................................... 475
327
Civil penalty orders ........................................................................ 475
328
Who may apply for a civil penalty order ....................................... 477
329
2 or more proceedings may be heard together ............................... 477
330
Time limit for application for an order .......................................... 477
331
Civil evidence and procedure rules for civil penalty orders ........... 477
332
Civil proceedings after criminal proceedings ................................ 477
333 Criminal
proceedings
during civil proceedings ............................. 477
334 Criminal
proceedings
after civil proceedings ................................ 478
335
Evidence given in proceedings for a civil penalty order not
admissible in criminal proceedings ................................................ 478
336
Mistake of fact ............................................................................... 478
337
State of mind .................................................................................. 479
338 Continuing
contraventions ............................................................. 480
Part 22--Offences relating to administrative penalties
482
339 Simplified
outline
..........................................................................
482
340
Scheme to avoid existing liability to pay administrative
penalty ........................................................................................... 482
341
Scheme to avoid future liability to pay administrative penalty ...... 483
Part 23--Enforceable undertakings
486
342 Simplified
outline
..........................................................................
486
343 Acceptance
of
undertakings ........................................................... 486
344 Enforcement
of
undertakings ......................................................... 486
Part 24--Review of decisions
488
345 Simplified
outline
..........................................................................
488
346 Reviewable
decisions ..................................................................... 488
347
Applications for reconsideration of decisions made by
delegates of the Authority .............................................................. 492
348 Reconsideration
by the Authority .................................................. 493
349
Deadline for reconsideration .......................................................... 493
350
Review by the Administrative Appeals Tribunal ........................... 493
351
Stay of proceedings for the recovery of an administrative
penalty ........................................................................................... 494
Part 25--Independent reviews
496
Division 1--Simplified outline
496
352 Simplified
outline
..........................................................................
496
Division 2--Periodic reviews
497
353
Periodic reviews to be conducted by an expert advisory
committee ...................................................................................... 497
xxi Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
354
Report of periodic review .............................................................. 500
Division 3--Special reviews
502
355
Special reviews to be conducted by an expert advisory
committee--matters specified by Minister .................................... 502
355A
Special review of carbon pollution reduction scheme to be
conducted by an expert advisory committee .................................. 502
356
Report of special review ................................................................ 503
Division 4--Expert advisory committees
505
357 Establishment
of
expert advisory committees ................................ 505
358
Functions of an expert advisory committee ................................... 505
359
Membership of an expert advisory committee ............................... 505
360
Appointment of expert advisory committee members ................... 505
361
Period for appointment for expert advisory committee
members ......................................................................................... 506
362 Acting
expert
advisory committee members ................................. 507
363 Procedures
.....................................................................................
508
364
Disclosure of interests to the Minister ........................................... 509
365
Disclosure of interests to expert advisory committee .................... 509
366
Outside employment ...................................................................... 510
367 Remuneration
and
allowances ....................................................... 510
368
Leave of absence ............................................................................ 510
369 Resignation
....................................................................................
510
370 Termination
of
appointment .......................................................... 511
371 Other
terms
and
conditions ............................................................ 512
372
Assistance to expert advisory committee ....................................... 512
373 Consultants
....................................................................................
512
Part 25A--Domestic Offsets Integrity Committee
513
Division 1--Establishment and functions of the Domestic Offsets
Integrity Committee
513
373A
Establishment of the Domestic Offsets Integrity Committee ......... 513
373B
Functions of the Domestic Offsets Integrity Committee ............... 513
373C
Consultation by the Domestic Offsets Integrity Committee .......... 513
Division 2--Membership of the Domestic Offsets Integrity
Committee
515
373D
Membership of the Domestic Offsets Integrity Committee ........... 515
373E
Appointment of Domestic Offsets Integrity Committee
members ......................................................................................... 515
373F
Period for appointment for Domestic Offsets Integrity
Committee members ...................................................................... 516
373G Acting
Domestic
Offsets
Integrity Committee members ............... 516
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 xxii
373H Procedures
.....................................................................................
518
373J
Disclosure of interests to the Minister ........................................... 519
373K
Disclosure of interests to Domestic Offsets Integrity
Committee ..................................................................................... 519
373L
Outside employment ...................................................................... 520
373M Remuneration
and
allowances ....................................................... 520
373N
Leave of absence ............................................................................ 520
373P Resignation
....................................................................................
521
373Q Termination
of
appointment .......................................................... 521
373R Other
terms
and
conditions ............................................................ 522
373S Assistance
to
Domestic
Offsets Integrity Committee .................... 522
373T Consultants
....................................................................................
522
Part 26--Miscellaneous
523
374 Miscellaneous
functions of the Authority ...................................... 523
374A Computerised
decision-making ..................................................... 523
374B
Authority's power to require further information .......................... 524
375
Delegation by the Minister ............................................................ 525
375A
Delegation by a State Minister or a Territory Minister .................. 525
375B
Delegation by the Secretary ........................................................... 525
376
Concurrent operation of State and Territory laws .......................... 526
377
Law relating to legal professional privilege not affected ............... 526
378
Arrangements with States and Territories ...................................... 526
379 Liability
for
damages ..................................................................... 528
380
Executive power of the Commonwealth ........................................ 529
381
Notional payments by the Commonwealth .................................... 529
382 Alternative
constitutional basis ...................................................... 529
383
Compensation for acquisition of property ..................................... 533
384
Prescribing matters by reference to other instruments ................... 534
385 Administrative
decisions
under the regulations ............................. 534
386 Transitional--definitions ............................................................... 535
387 Regulations
....................................................................................
535
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 1
A Bill for an Act to reduce pollution caused by
1
emissions of carbon dioxide and other greenhouse
2
gases, and for other purposes
3
The Parliament of Australia enacts:
4
Part 1--Preliminary
5
6
1 Short title
7
This Act may be cited as the Carbon Pollution Reduction Scheme
8
Act 2010.
9
Part 1 Preliminary
Section 2
2 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
2 Commencement
1
(1) Each provision of this Act specified in column 1 of the table
2
commences, or is taken to have commenced, in accordance with
3
column 2 of the table. Any other statement in column 2 has effect
4
according to its terms.
5
6
Commencement information
Column 1
Column 2
Column 3
Provision(s) Commencement
Date/Details
1. Sections 1 and
2 and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Sections 3 to
387
The 28th day after this Act receives the
Royal Assent.
However, if:
(a) the Australian Climate Change
Regulatory Authority Act 2010; and
(b) the Carbon Pollution Reduction Scheme
(Charges--Customs) Act 2010; and
(c) the Carbon Pollution Reduction Scheme
(Charges--Excise) Act 2010; and
(d) the Carbon Pollution Reduction Scheme
(Charges--General) Act 2010; and
(e) the Carbon Pollution Reduction Scheme
(Consequential Amendments) Act 2010;
do not receive the Royal Assent on or before
the 28th day after this Act receives the Royal
Assent, the provision(s) do not commence at
all.
Note:
This table relates only to the provisions of this Act as originally
7
passed by both Houses of the Parliament and assented to. It will not be
8
expanded to deal with provisions inserted in this Act after assent.
9
(2) Column 3 of the table contains additional information that is not
10
part of this Act. Information in this column may be added to or
11
edited in any published version of this Act.
12
Preliminary Part 1
Section 3
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 3
3 Objects
1
(1) This section sets out the objects of this Act.
2
Climate Change Convention and Kyoto Protocol
3
(2) The first object of this Act is to give effect to Australia's
4
obligations under:
5
(a) the Climate Change Convention; and
6
(b) the Kyoto Protocol.
7
Global response to climate change
8
(3) The second object of this Act is to support the development of an
9
effective global response to climate change.
10
National emissions reduction targets
11
(4) The third object of this Act is:
12
(a) if Australia is a party to a comprehensive international
13
agreement that is capable of stabilising atmospheric
14
concentrations of greenhouse gases at around 450 parts per
15
million of carbon dioxide equivalence or lower--to take
16
action directed towards meeting Australia's target of
17
reducing net greenhouse gas emissions to 25% below 2000
18
levels by 2020; and
19
(b) if paragraph (a) does not apply--to take action directed
20
towards meeting Australia's targets of:
21
(i) reducing net greenhouse gas emissions to 60% below
22
2000 levels by 2050; and
23
(ii) reducing net greenhouse gas emissions to between 5%
24
and 15% below 2000 levels by 2020; and
25
(c) to take the action mentioned in paragraph (a) or (b) in a
26
flexible and cost-effective way.
27
(5) The targets mentioned in subsection (4) are to be calculated in
28
accordance with:
29
(a) the Kyoto rules; or
30
(b) an international agreement (if any) that is the successor
31
(whether immediate or otherwise) to the Kyoto Protocol.
32
Part 1 Preliminary
Section 4
4 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
4 Simplified outline
1
The following is a simplified outline of this Act:
2
·
This Act sets up a scheme to reduce pollution caused by
3
emissions of carbon dioxide and other greenhouse gases.
4
·
The scheme begins on 1 July 2011, and operates on a financial
5
year basis.
6
·
The scheme is administered by the Australian Climate Change
7
Regulatory Authority.
8
·
A person who is responsible for greenhouse gas emitted from
9
the operation of a facility must surrender one eligible
10
emissions unit for each tonne of carbon dioxide equivalence of
11
the gas.
12
·
A person who imports, manufactures or supplies synthetic
13
greenhouse gas must surrender one eligible emissions unit for
14
each tonne of carbon dioxide equivalence of the gas.
15
·
A person who imports, produces or supplies eligible upstream
16
fuel must surrender one eligible emissions unit for each tonne
17
of carbon dioxide equivalence of the potential greenhouse gas
18
emissions embodied in the fuel.
19
·
Each of the following units are eligible emissions units:
20
(a)
Australian emissions units issued under this Act;
21
(b)
certain Kyoto units;
22
(c)
certain non-Kyoto international emissions units.
23
·
Most Australian emissions units will be issued as the result of
24
an auction.
25
·
A national scheme cap limits the total number of auctioned
26
Australian emissions units.
27
Preliminary Part 1
Section 5
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 5
·
Some Australian emissions units may be issued free of charge
1
or for a fixed charge.
2
·
Australian emissions units are generally transferable.
3
5 Definitions
4
In this Act:
5
ABN has the same meaning as in the A New Tax System
6
(Australian Business Number) Act 1999.
7
account number, in relation to a Registry account, has the meaning
8
given by subsection 146(3).
9
acknowledge the quotation of an OTN has the meaning given by
10
section 64A or 64B.
11
acquire, in relation to an Australian emissions unit, includes
12
acquire by way of the issue of the unit.
13
adjusted base period fugitive emissions intensity number has the
14
meaning given by section 173U.
15
adjusted base period fugitive emissions number has the meaning
16
given by section 173V.
17
alter the Registry, includes:
18
(a) make an entry in the Registry; and
19
(b) remove an entry from the Registry.
20
applicable domestic offsets methodology determination, in
21
relation to an offsets project, means the domestic offsets
22
methodology determination that is applicable to the project.
23
applicable identification procedure has the meaning ascertained in
24
accordance with the regulations.
25
application to own use, in relation to eligible upstream fuel,
26
includes making the fuel available to another person, where
27
making the fuel available is not a supply of the fuel.
28
Part 1 Preliminary
Section 5
6 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
appropriate energy market operator, in relation to a generation
1
asset, means:
2
(a) if Australian Energy Market Operator Limited (ACN 072 010
3
327) performs the functions of the energy market operator in
4
the place where the generation asset is located--Australian
5
Energy Market Operator Limited; and
6
(b) if the Independent Market Operator established under the
7
Electricity Industry (Independent Market Operator)
8
Regulations 2004 of Western Australia performs the
9
functions of the energy market operator in the place where
10
the generation asset is located--the Independent Market
11
Operator.
12
approved synthetic greenhouse gas destruction facility has the
13
same meaning as in the Ozone Protection and Synthetic
14
Greenhouse Gas Management Regulations 1995.
15
assigned amount unit means an assigned amount unit issued in
16
accordance with the relevant provisions of the Kyoto rules. It is
17
immaterial whether the unit was issued in or out of Australia.
18
associated provisions means the following provisions:
19
(a) the provisions of the regulations;
20
(b) sections 15A, 15B, 15C, 18A, 22A, 22B, 22C, 22CA, 22D,
21
22DA, 22E and 22F of the National Greenhouse and Energy
22
Reporting Act 2007;
23
(c) the remaining provisions of the National Greenhouse and
24
Energy Reporting Act 2007, in so far as those provisions
25
relate to:
26
(i) this Act; or
27
(ii) the regulations; or
28
(iii) the provisions covered by paragraph (b);
29
(d) sections 134.1, 134.2, 135.1, 135.2, 135.4, 136.1, 137.1 and
30
137.2 of the Criminal Code, in so far as those sections relate
31
to:
32
(i) this Act; or
33
(ii) the regulations; or
34
(iii) the provisions of the National Greenhouse and Energy
35
Reporting Act 2007 covered by paragraph (b) or (c).
36
Preliminary Part 1
Section 5
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 7
Note:
The provisions covered by paragraph (b) commence on 1 July 2011.
1
auction, when used in relation to an Australian emissions unit,
2
includes a process that involves inviting persons to declare what
3
they would be willing to pay by way of a charge for the acquisition
4
of the unit.
5
Australia, when used in a geographical sense, includes:
6
(a) the external Territories; and
7
(b) for the purposes of:
8
(i) Part 8 (emissions-intensive trade-exposed assistance
9
program); and
10
(ii) paragraph 353(1)(h) (review of the emissions-intensive
11
trade-exposed assistance program);
12
the exclusive economic zone, the continental shelf and the
13
Joint Petroleum Development Area.
14
Australian emissions unit means a unit issued under section 83.
15
Authority means the Australian Climate Change Regulatory
16
Authority.
17
base period fugitive emissions number has the meaning given by
18
section 173S.
19
base period saleable coal number has the meaning given by
20
section 173T.
21
benchmark average auction price has the meaning given by
22
section 141.
23
black coal has the same meaning as in the National Greenhouse
24
and Energy Reporting Regulations 2008.
25
brown coal has the same meaning as in the National Greenhouse
26
and Energy Reporting Regulations 2008.
27
business day means a day that is not:
28
(a) a Saturday; or
29
(b) a Sunday; or
30
(c) a public holiday in the place concerned.
31
Part 1 Preliminary
Section 5
8 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
cancellation account means a Commonwealth Registry account
1
designated as a cancellation account.
2
capped base period saleable coal number has the meaning given
3
by section 173TA.
4
carbon dioxide equivalence:
5
(a) of an amount of greenhouse gas--has the same meaning as in
6
the National Greenhouse and Energy Reporting Act 2007; or
7
(b) of an amount of potential greenhouse gas emissions
8
embodied in an amount of an eligible upstream fuel--has the
9
same meaning as in the National Greenhouse and Energy
10
Reporting Act 2007.
11
Note:
See also section 386 (transitional).
12
carbon pollution reduction scheme means the scheme embodied
13
in this Act and the associated provisions.
14
carbon sequestration right:
15
(a) when used in relation to a reforestation project--has the
16
meaning given by section 239A; or
17
(b) when used in relation to an area of land--has the meaning
18
given by section 240.
19
category A transfer test has the meaning given by section 69.
20
category B transfer test has the meaning given by section 73.
21
certificate of eligibility for coal-fired generation assistance means
22
a certificate issued under section 180.
23
certificate of eligible synthetic greenhouse gas destruction means
24
a certificate issued under section 249.
25
certificate of entitlement to coal mining assistance means a
26
certificate issued under section 173K.
27
certificate of reforestation means a certificate issued under
28
section 195.
29
Preliminary Part 1
Section 5
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 9
certified emission reduction means a certified emission reduction
1
issued outside Australia in accordance with the relevant provisions
2
of the Kyoto rules.
3
civil penalty order means an order under subsection 327(1).
4
civil penalty provision means a provision declared by this Act to
5
be a civil penalty provision.
6
clean development mechanism project means a project that is
7
treated as a clean development mechanism project for the purposes
8
of the relevant provisions of the Kyoto rules.
9
Climate Change Convention means the United Nations
10
Framework Convention on Climate Change done at New York on
11
9 May 1992, as amended and in force for Australia from time to
12
time.
13
Note:
The text of the Convention is set out in Australian Treaty Series 1994
14
No. 2 ([1994] ATS 2). In 2010, the text of a Convention in the
15
Australian Treaty Series was accessible through the Australian
16
Treaties Library on the AustLII website (www.austlii.edu.au).
17
coal-based char has the same meaning as in the National
18
Greenhouse and Energy Reporting Regulations 2008.
19
coal mining control test has the meaning given by section 173W.
20
coal mining title means:
21
(a) a lease that:
22
(i) permits the lessee to extract coal from the whole or a
23
part of the area of land covered by the lease; and
24
(ii) is granted by or under a law of the Commonwealth, a
25
State or a Territory; or
26
(b) a licence that:
27
(i) permits the licensee to extract coal from the whole or a
28
part of the area of land covered by the licence; and
29
(ii) is issued by or under a law of the Commonwealth, a
30
State or a Territory; or
31
(c) an authority that:
32
Part 1 Preliminary
Section 5
10 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
(i) permits the holder of the authority to extract coal from
1
the whole or a part of the area of land covered by the
2
authority; and
3
(ii) is given by or under a law of the Commonwealth, a
4
State or a Territory.
5
For the purposes of this definition, land includes submerged land.
6
coke oven coke has the same meaning as in the National
7
Greenhouse and Energy Reporting Regulations 2008.
8
commitment period means a period that is treated as a commitment
9
period for the purposes of the Kyoto rules.
10
Note:
The first commitment period begins on 1 January 2008 and ends on
11
31 December 2012.
12
commitment period reserve has the meaning given by the
13
regulations.
14
Commonwealth holding account means a Commonwealth
15
Registry account designated as a Commonwealth holding account.
16
Commonwealth place has the same meaning as in the
17
Commonwealth Places (Application of Laws) Act 1970.
18
Commonwealth Registry account means a Registry account kept
19
in the name of the Commonwealth.
20
Commonwealth relinquished units account means the
21
Commonwealth Registry account designated as the
22
Commonwealth relinquished units account.
23
compressed natural gas has the same meaning as in the National
24
Greenhouse and Energy Reporting Regulations 2008.
25
constitutional corporation means a corporation to which
26
paragraph 51(xx) of the constitution applies.
27
continental shelf has the same meaning as in the Seas and
28
Submerged Lands Act 1973.
29
control: a person has control of a reforestation project if:
30
Preliminary Part 1
Section 5
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 11
(a) the person is the holder of the forestry right in relation to the
1
project area or each of the project areas; or
2
(b) under a contract, or an arrangement, of a kind specified in the
3
regulations, the person is entitled or required to establish,
4
manage and maintain:
5
(i) a forest on the project area; or
6
(ii) a forest on each of the project areas.
7
controlling corporation has the same meaning as in the National
8
Greenhouse and Energy Reporting Act 2007.
9
Note:
See also section 386 (transitional).
10
Crown land means land that is the property of:
11
(a) the Commonwealth, a State or a Territory; or
12
(b) a statutory authority of:
13
(i) the Commonwealth; or
14
(ii) a State; or
15
(iii)
a
Territory.
16
For this purpose, it is immaterial whether the land is:
17
(c) subject to a lease or licence; or
18
(d) covered by a reservation, proclamation, dedication,
19
condition, permission or authority, made or conferred by the
20
Commonwealth, a State or a Territory; or
21
(e) covered by the making, amendment or repeal of legislation of
22
the Commonwealth, a State or a Territory under which the
23
whole or a part of the land is to be used for a public purpose
24
or public purposes.
25
Crown lands Minister:
26
(a) in relation to a State--means the Minister of the State who,
27
under the regulations, is taken to be the Crown lands Minister
28
of the State; or
29
(b) in relation to the Northern Territory--means the Minister of
30
the Northern Territory who, under the regulations, is taken to
31
be the Crown lands Minister of the Northern Territory; or
32
(c) in relation to the Australian Capital Territory--means the
33
Minister of the Australian Capital Territory who, under the
34
Part 1 Preliminary
Section 5
12 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
regulations, is taken to be the Crown lands Minister of the
1
Australian Capital Territory; or
2
(d) in relation to a Territory other than the Northern Territory or
3
the Australian Capital Territory--means the person who,
4
under the regulations, is taken to be the Crown lands Minister
5
of the Territory.
6
decision of the Meeting of the Kyoto Parties means a decision of
7
the Meeting of the Kyoto Parties as existing from time to time. It is
8
immaterial whether the decision was made before, at or after the
9
commencement of this section.
10
designated, in relation to a Commonwealth Registry account,
11
means designated under section 148.
12
designated large landfill facility: a landfill facility is a designated
13
large landfill facility in relation to an eligible financial year if the
14
number of tonnes of the carbon dioxide equivalence of the total
15
amount of greenhouse gases emitted from the operation of the
16
landfill facility during the eligible financial year is 25,000 or more.
17
For this purpose, assume that the financial year beginning on 1 July
18
2010 is an eligible financial year.
19
director includes a constituent member of a body corporate
20
incorporated for a public purpose by a law of the Commonwealth,
21
a State or a Territory.
22
Domestic Offsets Integrity Committee means the committee
23
established by section 373A.
24
Domestic Offsets Integrity Committee member means a member
25
of the Domestic Offsets Integrity Committee, and includes the
26
Chair of the Domestic Offsets Integrity Committee.
27
domestic offsets program means the program under subsection
28
259B(1).
29
domestic offsets project methodology determination means a
30
determination under subsection 259J(1).
31
domestic offsets project methodology principles has the meaning
32
given by section 259K.
33
Preliminary Part 1
Section 5
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 13
domestic offsets reporting period has the meaning given by
1
subsection 259C(2).
2
electronic communication means a communication by means of
3
guided and/or unguided electromagnetic energy.
4
electronic notice transmitted to the Authority has the meaning
5
given by section 8.
6
eligible coal mining area has the meaning given by section 173R.
7
eligible domestic offsets project means an offsets project that,
8
under the domestic offsets program, has been declared by the
9
Authority to be an eligible domestic offsets project.
10
eligible emissions unit means:
11
(a) an Australian emissions unit; or
12
(b) an eligible international emissions unit.
13
eligible financial year means:
14
(a) the financial year beginning on 1 July 2011; or
15
(b) a later financial year.
16
eligible interest, in relation to an area of land, has the meaning
17
given by section 241A or 241B.
18
eligible international emissions unit means:
19
(a) a certified emission reduction (other than a temporary
20
certified emission reduction or a long-term certified emission
21
reduction); or
22
(b) an emission reduction unit; or
23
(c) a removal unit; or
24
(d) a prescribed unit issued in accordance with the Kyoto rules;
25
or
26
(e) a non-Kyoto international emissions unit.
27
It is immaterial whether a unit covered by paragraph (d) was issued
28
in or outside Australia.
29
eligible reforestation project has the meaning given by
30
section 209.
31
Part 1 Preliminary
Section 5
14 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
eligible upstream fuel means any of the following:
1
(a) liquid petroleum fuel;
2
(b) liquid petroleum gas;
3
(c)
black
coal;
4
(d)
brown
coal;
5
(e)
coking
coal;
6
(f) brown coal briquettes;
7
(g)
coke
oven
coke;
8
(h)
coal-based
char;
9
(i) natural gas that is distributed or transmitted in a pipeline;
10
(j) coal seam methane that is captured for combustion;
11
(k) coal mine waste gas that is captured for combustion;
12
(l)
ethane;
13
(m)
town
gas;
14
(n) liquefied natural gas;
15
(o)
compressed
natural
gas;
16
(p)
syngas;
17
(pa) refinery grade propene (propylene);
18
(q) a fuel specified in the regulations.
19
For the purposes of this Act, if black coal is treated at a coal
20
washery, the black coal retains its identity as a type of eligible
21
upstream fuel.
22
eligible waste has the meaning given by the regulations.
23
emission of greenhouse gas from the operation of a facility has the
24
meaning given by section 24.
25
emission reduction unit means an emission reduction unit issued
26
in accordance with the relevant provisions of the Kyoto rules. It is
27
immaterial whether the unit was issued in or outside of Australia.
28
emissions-intensive trade-exposed assistance program means the
29
program under subsection 167(1).
30
emissions number has the meaning given by section 125.
31
emissions number publication time of a person for an eligible
32
financial year, means the time when the person's emissions number
33
Preliminary Part 1
Section 5
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 15
for the eligible financial year is entered on the Information
1
Database in accordance with subsection 263(2).
2
engage in conduct means:
3
(a) do an act; or
4
(b) omit to perform an act.
5
evidential burden, in relation to a matter, means the burden of
6
adducing or pointing to evidence that suggests a reasonable
7
possibility that the matter exists or does not exist.
8
excess surrender number has the meaning given by section 143.
9
excise duty has the same meaning as in the Excise Act 1901.
10
exclusive economic zone has the same meaning as in the Seas and
11
Submerged Lands Act 1973.
12
executive officer of a body corporate means:
13
(a) a director of the body corporate; or
14
(b) the chief executive officer (however described) of the body
15
corporate; or
16
(c) the chief financial officer (however described) of the body
17
corporate; or
18
(d) the secretary of the body corporate.
19
exempt hydrocarbon solvent means:
20
(a) excisable goods (within the meaning of the Excise Act 1901)
21
classified to subitem 10.25, 10.26, 10.27 or 10.28 of the
22
Schedule to the Excise Tariff Act 1921; or
23
(b) imported goods (within the meaning of the Excise Act 1901)
24
that would be classified to subitem 10.25, 10.26, 10.27 or
25
10.28 of that Schedule if they were manufactured in
26
Australia;
27
that are:
28
(c) hydrocarbon solvents; and
29
(d)
not
combusted.
30
expert advisory committee means a committee established under
31
section 357.
32
Part 1 Preliminary
Section 5
16 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
expert advisory committee member means a member of an expert
1
advisory committee, and includes the Chair of an expert advisory
2
committee.
3
export, in relation to goods or a substance, means:
4
(a) do an act that constitutes exportation of the goods or
5
substance from Australia within the meaning of section 112
6
of the Customs Act 1901; or
7
(b) do an act that would constitute such exportation if the
8
external Territories were part of Australia for the purposes of
9
that Act.
10
externally-administered body corporate has the same meaning as
11
in the Corporations Act 2001.
12
facility has the same meaning as in the National Greenhouse and
13
Energy Reporting Act 2007.
14
Note:
See also section 386 (transitional).
15
Federal Court means the Federal Court of Australia.
16
feedstock means a substance that is consumed (otherwise than by
17
way of combustion) in a chemical process to produce another
18
product.
19
financial control has the meaning given by section 81.
20
foreign account:
21
(a) when used in relation to a Kyoto unit--means an account
22
kept within a foreign Kyoto registry; or
23
(b) when used in relation to a non-Kyoto international emissions
24
unit--means an account kept under a law of a foreign
25
country corresponding to this Act.
26
foreign country includes a region where:
27
(a) the region is a colony, territory or protectorate of a foreign
28
country; or
29
(b) the region is part of a foreign country; or
30
(c) the region is under the protection of a foreign country; or
31
(d) a foreign country exercises jurisdiction or control over the
32
region; or
33
Preliminary Part 1
Section 5
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 17
(e) a foreign country is responsible for the region's international
1
relations.
2
foreign Kyoto registry means:
3
(a) a registry of a Kyoto party (other than Australia) that is the
4
Kyoto party's national registry for Kyoto units; or
5
(b) the CDM registry established in accordance with paragraph 1
6
of Appendix D to the Annex to Decision 3/CMP.1 of the
7
Meeting of the Kyoto Parties.
8
foreign person has the same meaning as in the National
9
Greenhouse and Energy Reporting Act 2007.
10
forest maintenance obligation has the meaning given by
11
section 226.
12
forest restoration order means an order under section 226C.
13
forestry right has the meaning given by section 241.
14
forest stand means a stand of forest, where:
15
(a) under the regulations, the stand is taken to have been
16
established by means of direct, human-induced methods; and
17
(b) the stand occupies an area of land of 0.2 hectares or more;
18
and
19
(c) the stand consists of trees that:
20
(i) have attained, or have the potential to attain, a crown
21
cover of at least 20% of the area occupied by the stand;
22
and
23
(ii) have reached, or have the potential to reach, a height of
24
at least 2 metres; and
25
(d)
either:
26
(i) on 31 December 1989, the area occupied by the stand
27
was clear of trees that had attained (or had the potential
28
to attain) a crown cover of at least 20% of the area
29
occupied by the stand and that had reached (or had the
30
potential to reach) a height of at least 2 metres; or
31
(ii) the area occupied by the stand was lawfully cleared of
32
trees during the period beginning at the start of
33
Part 1 Preliminary
Section 5
18 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
1 January 1990 and ending at the end of 31 December
1
2008; and
2
(e) the stand meets such other requirements (if any) as are
3
specified in the regulations.
4
The regulations may provide that, for the purposes of this
5
definition, trees and crown cover have the respective meanings
6
given by the regulations.
7
free Australian emissions unit means an Australian emissions unit
8
issued free of charge.
9
fuel oil has the same meaning as in the Excise Tariff Act 1921.
10
fugitive emissions has the meaning given by the regulations.
11
general law land means land other than:
12
(a) Torrens system land; or
13
(b)
Crown
land.
14
generation asset means:
15
(a) a generation complex; or
16
(b) a generation complex project.
17
generation complex means:
18
(a) a generation unit; or
19
(b) a set of 2 or more generation units at the same location.
20
generation complex project means a project to construct and
21
commission a new generation complex. For this purpose, it is
22
immaterial whether the project has been completed.
23
generation unit means a generator of electricity, and includes:
24
(a) the boiler (if any); and
25
(b) any other related equipment essential to the generator's
26
functioning as a generator.
27
Greater Sunrise unit area has the same meaning as in the Offshore
28
Petroleum and Greenhouse Gas Storage Act 2006.
29
greenhouse gas has the same meaning as in the National
30
Greenhouse and Energy Reporting Act 2007.
31
Preliminary Part 1
Section 5
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 19
Note:
See also section 386 (transitional).
1
group has the same meaning as in the National Greenhouse and
2
Energy Reporting Act 2007.
3
Note:
See also section 386 (transitional).
4
hold an eligible emissions unit: a person holds an eligible
5
emissions unit if the person is the registered holder of the unit.
6
identification number, in relation to an Australian emissions unit,
7
has the meaning given by section 84.
8
import, in relation to goods or a substance, means:
9
(a) do an act that constitutes importation of the goods or
10
substance into Australia within the meaning of section 50 of
11
the Customs Act 1901; or
12
(b) do an act that would constitute such importation if the
13
external Territories were part of Australia for the purposes of
14
that Act.
15
import duty has the same meaning as in the Customs Act 1901.
16
Information Database means the Liable Entities Public
17
Information Database kept under section 261.
18
insolvent under administration
has the same meaning as in the
19
Corporations Act 2001.
20
inspector means a person appointed as an inspector under
21
section 306.
22
international agreement means an agreement whose parties are:
23
(a) Australia and a foreign country; or
24
(b) Australia and 2 or more foreign countries.
25
international transaction log means an electronic data system
26
administered by the Secretariat of the Climate Change Convention
27
for the purpose of monitoring and tracking transactions in Kyoto
28
units.
29
issue, in relation to an Australian emissions unit, means issue
30
under section 83.
31
Part 1 Preliminary
Section 5
20 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Joint Petroleum Development Area has the same meaning as in
1
the Petroleum (Timor Sea Treaty) Act 2003.
2
joint venture means an unincorporated enterprise carried on by 2
3
or more persons in common otherwise than in partnership.
4
Kyoto Party means a Party to the Kyoto Protocol.
5
Kyoto Protocol means the Kyoto Protocol to the United Nations
6
Framework Convention on Climate Change done at Kyoto on
7
11 December 1997, as amended and in force for Australia from
8
time to time.
9
Note:
The text of the Kyoto Protocol is set out in Australian Treaty Series
10
2008 No. 2 ([2008] ATS 2). In 2010, the text of an international
11
agreement in the Australian Treaty Series was accessible through the
12
Australian Treaties Library on the AustLII website
13
(www.austlii.edu.au).
14
Kyoto rules means:
15
(a) the Kyoto Protocol; or
16
(b) a decision of the Meeting of the Kyoto Parties; or
17
(c) if a standard or other instrument, as existing from time to
18
time, is adopted by the Meeting of the Kyoto Parties for a
19
purpose relating to:
20
(i) the Kyoto Protocol; or
21
(ii) a decision of the Meeting of the Kyoto Parties;
22
the standard or instrument as existing from time to time; or
23
(d) if a standard or other instrument, as existing at a particular
24
time, is adopted by the Meeting of the Kyoto Parties for a
25
purpose relating to:
26
(i) the Kyoto Protocol; or
27
(ii) a decision of the Meeting of the Kyoto Parties;
28
the standard or instrument as existing at that time; or
29
(e) a prescribed instrument that relates to:
30
(i) the Kyoto Protocol; or
31
(ii) a decision of the Meeting of the Kyoto Parties.
32
It is immaterial whether a standard or instrument covered by
33
paragraph (c), (d) or (e) was made before, at or after the
34
Preliminary Part 1
Section 5
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 21
commencement of this section. Regulations made for the purposes
1
of paragraph (e) may prescribe an instrument:
2
(f) as existing at a particular time; or
3
(g) as existing from time to time.
4
Kyoto unit means:
5
(a) an assigned amount unit; or
6
(b) a certified emission reduction; or
7
(c) an emission reduction unit; or
8
(d) a removal unit; or
9
(e) a prescribed unit issued in accordance with the Kyoto rules.
10
It is immaterial whether a unit covered by paragraph (e) was issued
11
in or outside Australia.
12
landfill facility means a facility for the disposal of solid waste as
13
landfill, and includes a facility that is closed for the acceptance of
14
waste.
15
liability transfer certificate means a certificate issued under
16
section 72 or 76.
17
liable entity means a person who, under a provision of this Act, is a
18
liable entity.
19
liquid petroleum fuel means:
20
(a) excisable goods (within the meaning of the Excise Act 1901)
21
classified to item 10 of the Schedule to the Excise Tariff Act
22
1921; or
23
(b) imported goods (within the meaning of the Excise Act 1901)
24
that would be classified to item 10 of that Schedule if they
25
were manufactured in Australia;
26
that do not include an exempt hydrocarbon solvent.
27
liquid petroleum gas has the same meaning as in the National
28
Greenhouse and Energy Reporting Regulations 2008.
29
liquid petroleum gas marketer means a person who is supplied
30
liquid petroleum gas from:
31
(a) a liquid petroleum gas separation plant bulk storage; or
32
(b) an import terminal bulk storage; or
33
Part 1 Preliminary
Section 5
22 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
(c) a petroleum refinery bulk storage;
1
for the purpose of re-supply.
2
local governing body means a local governing body established by
3
or under a law of a State or Territory.
4
long-term certified emission reduction means a certified emission
5
reduction that is treated as a long-term certified emission reduction
6
for the purposes of the relevant provisions of the Kyoto rules.
7
lower bound of the national scheme gateway has the meaning
8
given by section 15.
9
make-good number has the meaning given by section 142.
10
management of a forest stand includes the harvesting and
11
re-establishment of the forest stand.
12
mandatory cancellation account means a Commonwealth Registry
13
account designated as the mandatory cancellation account for a
14
particular commitment period.
15
Meeting of the Kyoto Parties means the Meeting of the Parties to
16
the Climate Change Convention serving as the meeting of the
17
Parties to the Kyoto Protocol.
18
member, in relation to a group, has the same meaning as in the
19
National Greenhouse and Energy Reporting Act 2007.
20
Note:
See also section 386 (transitional).
21
Minister, in relation to Norfolk Island, means an executive
22
member within the meaning of the Norfolk Island Act 1979.
23
monitoring powers has the meaning given by section 309.
24
monitoring warrant means a warrant issued under section 321.
25
nameplate rating of a generation asset means:
26
(a) in the case of a generation complex--the maximum
27
continuous electrical generation capacity in megawatts of the
28
generation complex, as registered with the appropriate energy
29
market operator; or
30
Preliminary Part 1
Section 5
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 23
(b) in the case of a generation complex project--the proposed
1
maximum continuous electrical generation capacity in
2
megawatts of the proposed generation complex, as registered,
3
or proposed to be registered, with the appropriate energy
4
market operator.
5
national scheme cap has the meaning given by section 14.
6
national scheme cap number has the meaning given by section 14.
7
native forest has the meaning given by the regulations.
8
net source cancellation account means a Commonwealth Registry
9
account designated as the net source cancellation account for a
10
particular commitment period.
11
net total number of Australian emissions units issued in relation to
12
an eligible reforestation project in accordance with Part 10 has the
13
meaning given by section 242.
14
non-compliance cancellation account means a Commonwealth
15
Registry account designated as the non-compliance cancellation
16
account for a particular commitment period.
17
Note:
See also section 386 (transitional).
18
non-group entity has the same meaning as in the National
19
Greenhouse and Energy Reporting Act 2007.
20
Note:
See also section 386 (transitional).
21
non-Kyoto international emissions unit means:
22
(a) a prescribed unit issued in accordance with an international
23
agreement (other than the Kyoto Protocol); or
24
(b) a prescribed unit issued outside Australia under a law of a
25
foreign country.
26
It is immaterial whether a unit covered by paragraph (a) was issued
27
in or outside Australia.
28
obligation transfer number or OTN means an OTN issued under
29
section 44 or 45.
30
officer has the same meaning as in the Corporations Act 2001.
31
Part 1 Preliminary
Section 5
24 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
official of the Authority has the same meaning as in the Australian
1
Climate Change Regulatory Authority Act 2010.
2
offsets project means:
3
(a) a project to remove one or more greenhouse gases from the
4
atmosphere; or
5
(b) a project to reduce emissions of one or more greenhouse
6
gases.
7
For this purpose, it is immaterial whether the project has been
8
carried out.
9
one-off quotation of an OTN has the meaning given by
10
section 51A.
11
open, in relation to a Registry account, means open under
12
section 146.
13
operation, in relation to a facility, has the same meaning as in the
14
National Greenhouse and Energy Reporting Act 2007.
15
Note:
See also section 386 (transitional).
16
operational control has the same meaning as in the National
17
Greenhouse and Energy Reporting Act 2007.
18
Note:
See also section 386 (transitional).
19
OTN: see obligation transfer number.
20
OTN Register means the register kept under section 49.
21
participant, in relation to a joint venture, means any of the persons
22
who carry on the joint venture.
23
penalty unit has the meaning given by section 4AA of the Crimes
24
Act 1914.
25
permitted forest activity has the meaning given by section 226.
26
person means any of the following:
27
(a)
an
individual;
28
(b) a body corporate;
29
(c)
a
trust;
30
Preliminary Part 1
Section 5
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 25
(d) a corporation sole;
1
(e) a body politic;
2
(f) a local governing body.
3
person assisting an inspector has the meaning given by
4
section 310.
5
potential greenhouse gas emissions has the same meaning as in
6
the National Greenhouse and Energy Reporting Act 2007.
7
Note:
See also section 386 (transitional).
8
power system reliability test has the meaning given by section 189.
9
premises includes the following:
10
(a) a structure, building, vehicle, vessel or aircraft;
11
(b) a place (whether or not enclosed or built on);
12
(c) a part of a thing referred to in paragraph (a) or (b).
13
prescribed non-CPRS reforestation scheme has the meaning given
14
by the regulations.
15
prescribed wholesale gas market has the meaning given by the
16
regulations.
17
project area, in relation to a reforestation project, means:
18
(a) if the project relates to a single forest stand--the area of land
19
occupied, or to be occupied, by the forest stand; or
20
(b) if the project relates to 2 or more forest stands--an area of
21
land occupied, or to be occupied, by any of those forest
22
stands.
23
project manager, in relation to a reforestation project, has the
24
meaning given by section 197A.
25
proposed generation complex, in relation to a generation complex
26
project, means the generation complex that is proposed to result
27
from the project. For this purpose, it is immaterial whether the
28
generation complex has been constructed or commissioned.
29
provisional emissions number:
30
(a) has the meaning given by Part 3; and
31
Part 1 Preliminary
Section 5
26 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
(b) has a meaning affected by sections 11B and 11C of the
1
National Greenhouse and Energy Reporting Act 2007.
2
quarter means a period of 3 months beginning on 1 January,
3
1 April, 1 July or 1 October.
4
quote, in relation to an OTN, has the meaning given by section 51.
5
recognised:
6
(a)
recognised as a reforestation entity means recognised under
7
section 201; and
8
(b)
recognised as a synthetic greenhouse gas destruction
9
customer means recognised under section 256; and
10
(c)
recognised as an offsets entity means recognised under
11
section 259P.
12
recognised offsets entity means a person recognised as an offsets
13
entity.
14
recognised reforestation entity means a person recognised as a
15
reforestation entity.
16
recognised synthetic greenhouse gas destruction customer means
17
a company recognised as a synthetic greenhouse gas destruction
18
customer.
19
recognised transformation: each of the following is a recognised
20
transformation of an eligible upstream fuel to another type of
21
eligible upstream fuel:
22
(a) the transformation of brown coal to brown coal briquettes;
23
(b) the transformation of brown coal briquettes to coal-based
24
char;
25
(c) the transformation of coking coal to coke oven coke;
26
(d) the transformation of natural gas to liquefied natural gas;
27
(e) the transformation of natural gas to compressed natural gas;
28
(f) the transformation of liquefied natural gas to natural gas;
29
(g) the transformation of compressed natural gas to natural gas;
30
(h) the transformation of a type of eligible upstream fuel
31
specified in the regulations to a type of eligible upstream fuel
32
specified in the regulations.
33
Preliminary Part 1
Section 5
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 27
refinery grade propene (propylene) has the same meaning as in the
1
National Greenhouse and Energy Reporting Regulations 2008.
2
reforestation project means:
3
(a) a project for the establishment, management and maintenance
4
of one or more forest stands; or
5
(b) a project for the management and maintenance of one or
6
more existing forest stands.
7
For this purpose, it is immaterial whether the project has been
8
carried out.
9
reforestation report means a report under section 225.
10
reforestation reporting period has the meaning given by
11
section 223 or 224.
12
reforestation unit limit, in relation to an eligible reforestation
13
project, has the meaning given by section 220, 221 or 222.
14
registered holder, in relation to:
15
(a) an Australian emissions unit; or
16
(b) a Kyoto unit; or
17
(c) a non-Kyoto international emissions unit;
18
means the person in whose Registry account there is an entry for
19
the unit.
20
Register of Reforestation Projects means the register kept under
21
section 238.
22
Registry means the Australian National Registry of Emissions
23
Units continued in existence under section 145.
24
Registry account means an account kept in accordance with
25
section 146.
26
regulatory approval, in relation to a reforestation project, means an
27
approval, licence or permit (however described) that:
28
(a) relates to, or to an element of, the project; and
29
(b) is required under a law of the Commonwealth, a State or
30
Territory that relates to:
31
(i) land use or development; or
32
Part 1 Preliminary
Section 5
28 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
(ii)
the
environment.
1
relinquish, in relation to an Australian emissions unit, means
2
relinquish under section 286.
3
removal unit means a removal unit issued in accordance with the
4
relevant provisions of the Kyoto rules. It is immaterial whether the
5
unit was issued in or out of Australia.
6
retirement account for a commitment period means a
7
Commonwealth Registry account designated as the retirement
8
account for a particular commitment period.
9
reviewable decision has the meaning given by section 346.
10
saleable coal has the meaning given by the regulations.
11
scheme, when used in section 23 or 30 or Part 22, means:
12
(a) any agreement, arrangement, understanding, promise or
13
undertaking, whether express or implied and whether or not
14
enforceable, or intended to be enforceable, by legal
15
proceedings; or
16
(b) any scheme, plan, proposal, action, course of action or course
17
of conduct, whether there are 2 or more parties or only one
18
party involved.
19
scheme obligation transfer agreement has the meaning given by
20
section 197B.
21
scope 1 emission of greenhouse gas has the meaning given by the
22
National Greenhouse and Energy Reporting Act 2007.
23
Note:
See also section 386 (transitional).
24
Secretary means the Secretary of the Department.
25
staff of the Authority has the same meaning as in the Australian
26
Climate Change Regulatory Authority Act 2010.
27
standing quotation of an OTN has the meaning given by
28
section 51B.
29
statutory authority of the Commonwealth, a State or a Territory,
30
means an authority or body (including a corporation sole)
31
Preliminary Part 1
Section 5
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 29
established by or under a law of the Commonwealth, the State or
1
Territory other than a general law allowing incorporation as a
2
company or body corporate.
3
supply means supply (including re-supply) by way of sale,
4
exchange or gift.
5
Note 1:
See also section 5A (extended meaning of supply).
6
Note 2:
See also section 6 (timing of supply).
7
surrender, in relation to an eligible emissions unit, means
8
surrender under section 129.
9
syngas has the same meaning as in the National Greenhouse and
10
Energy Reporting Regulations 2008.
11
synthetic greenhouse gas has the same meaning as in the National
12
Greenhouse and Energy Reporting Act 2007.
13
Note:
See also section 386 (transitional).
14
synthetic greenhouse gas destruction event means an event that
15
consists of the destruction of a particular quantity of a particular
16
kind of synthetic greenhouse gas.
17
temporary certified emission reduction means a certified emission
18
reduction that is treated as a temporary certified emission reduction
19
for the purposes of the relevant provisions of the Kyoto rules.
20
territorial sea has the same meaning as in the Seas and Submerged
21
Lands Act 1973.
22
Torrens system land: land is Torrens system land if the title to the
23
land is registered under a Torrens system of registration.
24
transfer:
25
(a) in relation to an Australian emissions unit--has the meaning
26
given by section 95; or
27
(b) in relation to a Kyoto unit--has the meaning given by
28
section 107; or
29
(c) in relation to a non-Kyoto international emissions unit--has
30
the meaning given by section 118.
31
Part 1 Preliminary
Section 5
30 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
transferee, in relation to a scheme obligation transfer agreement,
1
has the meaning given by section 197B.
2
trust means a person in the capacity of trustee or, as the case
3
requires, a trust estate.
4
trustee has the same meaning as in the Income Tax Assessment Act
5
1997.
6
trust estate has the same meaning as in the Income Tax Assessment
7
Act 1997.
8
type:
9
(a)
type of eligible upstream fuel:
10
(i) each substance classified to item 10 of the Schedule to
11
the Excise Tariff Act 1921 (or that would be classified to
12
that item if it was manufactured in Australia) is a type of
13
eligible upstream fuel; and
14
(ii) a substance covered by a particular paragraph of the
15
definition of eligible upstream fuel (other than
16
paragraph (a) of the definition) is a type of eligible
17
upstream fuel; and
18
(b)
type of synthetic greenhouse gas:
19
(i) a substance covered by paragraph 7B(1)(a) of the
20
National Greenhouse and Energy Reporting Act 2007 is
21
a type of synthetic greenhouse gas; and
22
(ii) a substance covered by a particular item of table 1 or
23
table 2 in section 7B of that Act is a type of synthetic
24
greenhouse gas.
25
United Nations Convention on the Law of the Sea means the
26
United Nations Convention on the Law of the Sea done at Montego
27
Bay on 10 December 1982.
28
Note:
The text of the Convention is set out in Australian Treaty Series 1994
29
No. 31 ([1994] ATS 31). In 2010, the text of a Convention in the
30
Australian Treaty Series was accessible through the Australian
31
Treaties Library on the AustLII website (www.austlii.edu.au).
32
unit shortfall has the meaning given by section 130.
33
Preliminary Part 1
Section 5A
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 31
upper bound of the national scheme gateway has the meaning
1
given by section 15.
2
vacancy:
3
(a) in relation to the office of an expert advisory committee
4
member--has a meaning affected by section 7; or
5
(b) in relation to the office of a Domestic Offsets Integrity
6
Committee member--has a meaning affected by section 7A.
7
vintage year, in relation to an Australian emissions unit, has the
8
meaning given by subsection 85(2).
9
voluntary cancellation account means a Commonwealth Registry
10
account designated as the voluntary cancellation account for a
11
particular commitment period.
12
windfall gain declaration means a declaration under section 186.
13
windfall gain test has the meaning given by section 187.
14
5A Extended meaning of supply
15
For the purposes of this Act, if:
16
(a) a person (the supplier) makes eligible upstream fuel available
17
to another person (the recipient) for combustion at a facility;
18
and
19
(b) apart from this section, making the fuel available is not a
20
supply;
21
then:
22
(c) the supplier is taken to supply the fuel to the recipient; and
23
(d) the supply occurs when the fuel is combusted.
24
6 When supply occurs
25
Natural gas distributed or transmitted in a pipeline
26
(1) For the purposes of this Act, if natural gas is distributed or
27
transmitted in a pipeline, the supply of the natural gas occurs:
28
Part 1 Preliminary
Section 7
32 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
(a) if the regulations provide that the supply occurs when the gas
1
passes a point ascertained in accordance with the
2
regulations--when the gas passes that point; or
3
(b)
otherwise:
4
(i) if the supply involves physical delivery--when the gas
5
is physically delivered; or
6
(ii) if the supply does not involve physical delivery--when
7
property in the gas is transferred.
8
Other substances
9
(2) For the purposes of this Act:
10
(a) if the supply of a substance (other than natural gas distributed
11
or transmitted in a pipeline) involves a physical delivery--
12
the supply of the substance occurs when the substance is
13
physically delivered; or
14
(b) if the supply of a substance (other than natural gas distributed
15
or transmitted in a pipeline) does not involve a physical
16
delivery--the supply of the substance occurs when property
17
in the substance is transferred.
18
Exception
19
(3) This section does not apply to a supply covered by section 5A.
20
7 Vacancy in the office of an expert advisory committee member
21
For the purposes of a reference in:
22
(a) this Act to a vacancy in the office of an expert advisory
23
committee member; or
24
(b)
the
Acts Interpretation Act 1901 to a vacancy in the
25
membership of a body;
26
for each expert advisory committee, there are taken to be 4 offices
27
of expert advisory committee members in addition to the Chair of
28
the expert advisory committee.
29
Preliminary Part 1
Section 7A
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 33
7A Vacancy in the office of a Domestic Offsets Integrity Committee
1
member
2
For the purposes of a reference in:
3
(a) this Act to a vacancy in the office of a Domestic Offsets
4
Integrity Committee member; or
5
(b)
the
Acts Interpretation Act 1901 to a vacancy in the
6
membership of a body;
7
there are taken to be 4 offices of member of the Domestic Offsets
8
Integrity Committee in addition to the Chair of the Domestic
9
Offsets Integrity Committee.
10
8 Electronic notice transmitted to the Authority
11
(1) For the purposes of this Act, a notice is an electronic notice
12
transmitted to the Authority if, and only if:
13
(a) the notice is transmitted to the Authority by means of an
14
electronic communication; and
15
(b) if the Authority requires that the notice be transmitted, in
16
accordance with particular information technology
17
requirements, by means of a particular kind of electronic
18
communication--the Authority's requirement has been met;
19
and
20
(c) the notice complies with regulations made for the purposes of
21
subsection (2).
22
(2) The regulations may make provision for or in relation to the
23
security and authenticity of notices transmitted to the Authority by
24
means of an electronic communication.
25
(3) Regulations made for the purposes of subsection (2) may deal with:
26
(a)
encryption;
and
27
(b) authentication of identity.
28
(4) Subsection (3) does not limit subsection (2).
29
(5) For the purposes of this Act, if a notice is transmitted to the
30
Authority by means of an electronic communication, the notice is
31
taken to have been transmitted on the day on which the electronic
32
communication is dispatched.
33
Part 1 Preliminary
Section 9
34 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
(6) Subsection (5) of this section has effect despite subsections 14(3)
1
and (4) of the Electronic Transactions Act 1999.
2
(7) This section does not, by implication, limit the regulations that may
3
be made under the Electronic Transactions Act 1999.
4
9 Crown to be bound
5
(1) This Act binds the Crown in each of its capacities.
6
(2) This Act does not make the Crown liable to a pecuniary penalty or
7
to be prosecuted for an offence.
8
(3) The protection in subsection (2) does not apply to an authority of
9
the Crown.
10
(4) The protection in subsection (2) does not apply to a penalty under
11
section 133, 135, 287 or 288.
12
10 Extension to external Territories
13
This Act extends to every external Territory.
14
11 Extension to exclusive economic zone and continental shelf
15
This Act extends to a matter relating to the exercise of Australia's
16
sovereign rights in the exclusive economic zone or the continental
17
shelf.
18
11A Extension to Joint Petroleum Development Area
19
This Act extends to the Joint Petroleum Development Area.
20
Note:
See also sections 22A and 22B (adjustment of provisional emissions
21
number).
22
12 Application to foreign ships
23
This Act does not apply to the extent that its application would be
24
inconsistent with the exercise of rights of foreign ships in:
25
(a) the territorial sea; or
26
(b) the exclusive economic zone; or
27
Preliminary Part 1
Section 12
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 35
(c) waters of the continental shelf;
1
in accordance with the United Nations Convention on the Law of
2
the Sea.
3
4
Part 2 National scheme cap and national scheme gateway
Section 13
36 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Part 2--National scheme cap and national scheme
1
gateway
2
3
13 Simplified outline
4
The following is a simplified outline of this Part:
5
·
The regulations may declare that a quantity of greenhouse gas
6
that has a carbon dioxide equivalence of a specified number of
7
tonnes is the national scheme cap for a financial year.
8
·
For the financial year beginning on 1 July 2015 or a later
9
financial year, the national scheme cap must fall within the
10
upper and lower bound of the national scheme gateway (if
11
any) declared by the regulations for the financial year.
12
Note:
The national scheme cap limits:
13
(a) the total number of auctioned Australian emissions units; and
14
(b) the total number of free Australian emissions units issued in
15
accordance with the emissions-intensive trade-exposed assistance
16
program; and
17
(ba) the total number of free Australian emissions units issued in
18
accordance with Part 8A (coal mining); and
19
(c) the total number of free Australian emissions units issued in
20
accordance with Part 9 (coal-fired electricity generation).
21
14 National scheme cap
22
National scheme cap
23
(1) The regulations may declare that:
24
(a) a quantity of greenhouse gas that has a carbon dioxide
25
equivalence of a specified number of tonnes is the national
26
scheme cap for a specified eligible financial year (other than
27
the eligible financial year starting on 1 July 2011); and
28
(b) that number is the national scheme cap number for that
29
eligible financial year.
30
(2) The Minister must take all reasonable steps to ensure that:
31
National scheme cap and national scheme gateway Part 2
Section 14
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 37
(a) regulations declaring the national scheme cap number for the
1
eligible financial year beginning on 1 July 2012; and
2
(b) regulations declaring the national scheme cap number for
3
each of the next 3 eligible financial years;
4
are made not later than 31 December 2011.
5
(3) The Minister must take all reasonable steps to ensure that:
6
(a) regulations declaring the national scheme cap number for the
7
eligible financial year beginning on 1 July 2016 are made at
8
least 5 years before the end of the eligible financial year; and
9
(b) regulations declaring the national scheme cap number for a
10
later eligible financial year are made at least 5 years before
11
the end of the later eligible financial year.
12
(4)
If:
13
(a) apart from this subsection, at the beginning of the 5-year
14
period ending at the end of an eligible financial year (the
15
current eligible financial year), there is no national scheme
16
cap number for the current eligible financial year; and
17
(b) there was a national scheme cap number for the previous
18
eligible financial year; and
19
(c) the current eligible financial year began on or after 1 July
20
2016;
21
the national scheme cap number for the current eligible financial
22
year is equal to:
23
(d) if 99% of the national scheme cap number for the previous
24
eligible financial year is less than the lower bound of the
25
national scheme gateway for the current eligible financial
26
year--that lower bound; or
27
(e) if 99% of the national scheme cap number for the previous
28
eligible financial year exceeds the upper bound of the
29
national scheme gateway for the current eligible financial
30
year--that upper bound; or
31
(f) if neither paragraph (d) nor (e) applies--99% of the national
32
scheme cap number for the previous eligible financial year
33
(rounded to the nearest whole number, with a number ending
34
in .5 being rounded up).
35
Part 2 National scheme cap and national scheme gateway
Section 14
38 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Regulations
1
(5) In making a recommendation to the Governor-General about
2
regulations to be made for the purposes of this section, the
3
Minister:
4
(a) must have regard to Australia's international obligations
5
under:
6
(i) the Climate Change Convention; and
7
(ii) the Kyoto Protocol; and
8
(b) may have regard to the most recent report given to the
9
Minister by an expert advisory committee under section 354,
10
to the extent to which that report deals with national scheme
11
caps; and
12
(c) may have regard to the following matters:
13
(i) the principle that the stabilisation of atmospheric
14
concentrations of greenhouse gases at around 450 parts
15
per million of carbon dioxide equivalence or lower is in
16
Australia's national interest;
17
(ii) progress towards, and development of, comprehensive
18
global action under which all of the major economies
19
commit to substantially restrain greenhouse gas
20
emissions and all of the advanced economies commit to
21
reductions of greenhouse gas emissions comparable to
22
the reductions to which Australia has committed;
23
(iii) the economic implications associated with various
24
levels of national scheme caps, including implications
25
of the carbon price;
26
(iv) voluntary action to reduce Australia's greenhouse gas
27
emissions;
28
(v) estimates of greenhouse gas emissions that are not
29
covered (directly or indirectly) by the carbon pollution
30
reduction scheme;
31
(vi) such other matters (if any) as the Minister considers
32
relevant.
33
(6) Paragraph (5)(b) does not apply if no report has been given to the
34
Minister under section 354.
35
(7)
If:
36
National scheme cap and national scheme gateway Part 2
Section 15
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 39
(a) regulations are made for the purposes of this section; and
1
(b) on a particular day (the tabling day), a copy of the
2
regulations is tabled before a House of the Parliament under
3
section 38 of the Legislative Instruments Act 2003;
4
then, on or as soon as practicable after the tabling day, the Minister
5
must cause to be tabled before that House a written statement
6
setting out the Minister's reasons for making the recommendation
7
to the Governor-General about those regulations.
8
15 National scheme gateway
9
Scope
10
(1) This section applies to:
11
(a) the eligible financial year beginning on 1 July 2016; and
12
(b) each later eligible financial year.
13
Gateway
14
(2) The regulations may declare that:
15
(a) a quantity of greenhouse gas that has a carbon dioxide
16
equivalence of a specified number of tonnes is the upper
17
bound of the national scheme gateway for a specified eligible
18
financial year; and
19
(b) a quantity of greenhouse gas that has a carbon dioxide
20
equivalence of a specified number of tonnes is the lower
21
bound of the national scheme gateway for a specified eligible
22
financial year.
23
National scheme cap
24
(3) The Minister must take all reasonable steps to ensure that the
25
national scheme cap for an eligible financial year:
26
(a) is not more than the upper bound of the national scheme
27
gateway (if any) for the eligible financial year; and
28
(b) is not less than the lower bound of the national scheme
29
gateway (if any) for the eligible financial year.
30
Part 2 National scheme cap and national scheme gateway
Section 15
40 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Regulations
1
(4) In making a recommendation to the Governor-General about
2
regulations to be made for the purposes of this section, the
3
Minister:
4
(a) must have regard to Australia's international obligations
5
under:
6
(i) the Climate Change Convention; and
7
(ii) the Kyoto Protocol; and
8
(b) may have regard to the most recent report given to the
9
Minister by an expert advisory committee under section 354,
10
to the extent to which that report deals with national scheme
11
gateways; and
12
(c) may have regard to the following matters:
13
(i) the principle that the stabilisation of atmospheric
14
concentrations of greenhouse gases at around 450 parts
15
per million of carbon dioxide equivalence or lower is in
16
Australia's national interest;
17
(ii) progress towards, and development of, comprehensive
18
global action under which all of the major economies
19
commit to substantially restrain greenhouse gas
20
emissions and all of the advanced economies commit to
21
reductions of greenhouse gas emissions comparable to
22
the reductions to which Australia has committed;
23
(iii) the economic implications associated with various
24
national scheme gateways, including implications of the
25
carbon price;
26
(iv) voluntary action to reduce Australia's greenhouse gas
27
emissions;
28
(v) estimates of greenhouse gas emissions that are not
29
covered (directly or indirectly) by the carbon pollution
30
reduction scheme;
31
(vi) such other matters (if any) as the Minister considers
32
relevant.
33
(5) Paragraph (4)(b) does not apply if no report has been given to the
34
Minister under section 354.
35
(6)
If:
36
National scheme cap and national scheme gateway Part 2
Section 15
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 41
(a) regulations are made for the purposes of this section; and
1
(b) on a particular day (the tabling day), a copy of the
2
regulations is tabled before a House of the Parliament under
3
section 38 of the Legislative Instruments Act 2003;
4
then, on or as soon as practicable after the tabling day, the Minister
5
must cause to be tabled before that House a written statement
6
setting out the Minister's reasons for making the recommendation
7
to the Governor-General about those regulations.
8
9
Part 3 Liable entities
Division 1 Introduction
Section 16
42 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Part 3--Liable entities
1
Division 1--Introduction
2
16 Simplified outline
3
The following is a simplified outline of this Part:
4
·
This Part sets out rules for:
5
(a)
identifying the persons who are liable entities for a
6
financial year (liable entities are liable to surrender
7
eligible emissions units); and
8
(b)
the provisional emissions numbers of those liable
9
entities (provisional emissions numbers are used to
10
work out the number of eligible emissions units
11
that must be surrendered by a liable entity).
12
·
If a person is responsible for greenhouse gas emitted from the
13
operation of a facility during a financial year:
14
(a)
the person is a liable entity for the financial year;
15
and
16
(b)
the number of tonnes of carbon dioxide
17
equivalence of the gas is a provisional emissions
18
number of the person for the financial year.
19
·
A person can be responsible for greenhouse gas emitted from
20
the operation of a facility because:
21
(a)
the person is a controlling corporation of a group,
22
and a member of the group has operational control
23
of the facility; or
24
(b)
the person is not a member of a controlling
25
corporation's group, but has operational control of
26
the facility; or
27
Liable entities Part 3
Introduction Division 1
Section 16
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 43
(c)
the person is the holder of a liability transfer
1
certificate in relation to the facility.
2
·
If a person imports, manufactures or supplies synthetic
3
greenhouse gas during a financial year:
4
(a)
the person is a liable entity for the financial year;
5
and
6
(b)
the number of tonnes of carbon dioxide
7
equivalence of the gas is a provisional emissions
8
number of the person for the financial year.
9
·
If a person imports, produces or supplies eligible upstream
10
fuel during a financial year:
11
(a)
the person is a liable entity for the financial year;
12
and
13
(b)
the number of tonnes of carbon dioxide
14
equivalence of the potential greenhouse gas
15
emissions embodied in the fuel is a provisional
16
emissions number of the person for the financial
17
year.
18
·
If a person (the supplier) supplies an amount of eligible
19
upstream fuel to another person (the recipient) who quotes the
20
recipient's Obligation Transfer Number (OTN) in relation to
21
the supply, the supply will not count towards the supplier's
22
liability for the financial year.
23
·
If a person (the OTN holder) quotes the person's OTN in
24
relation to the supply of an amount of eligible upstream fuel,
25
the OTN holder may be a liable entity.
26
27
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 17
44 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Division 2--Direct emitters of greenhouse gases
1
Subdivision A--General rules
2
17 Liable entity--controlling corporation of a group
3
Scope
4
(1) This section applies if:
5
(a)
either:
6
(i) a facility (other than a landfill facility) was under the
7
operational control of one or more members of a
8
controlling corporation's group throughout an eligible
9
financial year; or
10
(ii) a facility (other than a landfill facility) was under the
11
operational control of one or more members of a
12
controlling corporation's group for a number of, but not
13
all, days in an eligible financial year (the control days);
14
and
15
(b) the total amount of greenhouse gases emitted from the
16
operation of the facility:
17
(i) if subparagraph (a)(i) applies--during the eligible
18
financial year; or
19
(ii) if subparagraph (a)(ii) applies--during the control days;
20
has a carbon dioxide equivalence of a particular number of
21
tonnes.
22
Provisional emissions number
23
(2) For the purposes of this Act, that number is a provisional
24
emissions number of the controlling corporation for the eligible
25
financial year.
26
Liable entity
27
(3) For the purposes of this Act, the controlling corporation is a liable
28
entity for the eligible financial year.
29
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 17
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 45
Exemption--small facilities
1
(4)
If:
2
(a) the facility was under the operational control of one or more
3
members of the controlling corporation's group throughout
4
the eligible financial year; and
5
(b) during the eligible financial year, the total amount of
6
greenhouse gases emitted from the operation of the facility
7
had a carbon dioxide equivalence of less than 25,000 tonnes;
8
so much of the total amount mentioned in paragraph (b) as would
9
otherwise count for the purposes of subsection (1) does not count
10
for the purposes of subsection (1).
11
Note:
See also section 23 (anti-avoidance).
12
(5)
If:
13
(a) the facility was under the operational control of one or more
14
members of the controlling corporation's group for a number
15
of, but not all, days in the eligible financial year (the control
16
days); and
17
(b) during the control days, the total amount of greenhouse gases
18
emitted from the operation of the facility had a carbon
19
dioxide equivalence of less than the amount worked out using
20
the formula:
21
Number of control days
25,000 tonnes
Number of days in the eligible financial year
×
22
so much of the total amount mentioned in paragraph (b) as would
23
otherwise count for the purposes of subsection (1) does not count
24
for the purposes of subsection (1).
25
Note:
See also section 23 (anti-avoidance).
26
Exemption--liability transfer certificate
27
(6) For the purposes of this section, if, throughout the whole or a part
28
of the eligible financial year, a person was the holder of a liability
29
transfer certificate in relation to the facility, then the facility is
30
taken not to have been under the operational control of a member
31
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 17
46 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
of the controlling corporation's group during the whole or the part,
1
as the case may be, of the eligible financial year.
2
OTNs--no double counting
3
(7)
If:
4
(a) the facility was under the operational control of one or more
5
members of the controlling corporation's group throughout
6
the eligible financial year; and
7
(b) during the eligible financial year, an amount of greenhouse
8
gas emitted from the operation of the facility was attributable
9
to the combustion of eligible upstream fuel that was obtained
10
by way of the supply of the fuel to a person (who may be a
11
member of the controlling corporation's group); and
12
(c) in a case where the person had operational control of the
13
facility--the person did not quote the person's OTN in
14
relation to the supply of the fuel;
15
the amount mentioned in paragraph (b):
16
(d) does not count for the purposes of subsection (1); and
17
(e) counts for the purposes of paragraph (4)(b).
18
(8)
If:
19
(a) the facility was under the operational control of one or more
20
members of the controlling corporation's group for a number
21
of, but not all, days in the eligible financial year (the control
22
days); and
23
(b) during the control days, an amount of greenhouse gas emitted
24
from the operation of the facility was attributable to the
25
combustion of eligible upstream fuel that was obtained by
26
way of the supply of the fuel to a person (who may be a
27
member of the controlling corporation's group); and
28
(c) in a case where the person had operational control of the
29
facility--the person did not quote the person's OTN in
30
relation to the supply of the fuel;
31
the amount mentioned in paragraph (b):
32
(d) does not count for the purposes of subsection (1); and
33
(e) counts for the purposes of paragraph (5)(b).
34
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 18
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 47
Liquid petroleum fuel--no double counting
1
(9)
If:
2
(a) the facility was under the operational control of one or more
3
members of the controlling corporation's group throughout
4
the eligible financial year; and
5
(b) during the eligible financial year, an amount of greenhouse
6
gas emitted from the operation of the facility was attributable
7
to the combustion of liquid petroleum fuel; and
8
(c) the potential greenhouse gas emissions embodied in the fuel
9
were counted for the purposes of subsection 31(1) or 32(1);
10
the amount mentioned in paragraph (b):
11
(d) does not count for the purposes of subsection (1); and
12
(e) counts for the purposes of paragraph (4)(b).
13
(10)
If:
14
(a) the facility was under the operational control of one or more
15
members of the controlling corporation's group for a number
16
of, but not all, days in the eligible financial year (the control
17
days); and
18
(b) during the control days, an amount of greenhouse gas emitted
19
from the operation of the facility was attributable to the
20
combustion of liquid petroleum fuel; and
21
(c) the potential greenhouse gas emissions embodied in the fuel
22
were counted for the purposes of subsection 31(1) or 32(1);
23
the amount mentioned in paragraph (b):
24
(d) does not count for the purposes of subsection (1); and
25
(e) counts for the purposes of paragraph (5)(b).
26
18 Liable entity--non-group entity
27
Scope
28
(1) This section applies if:
29
(a)
either:
30
(i) a facility (other than a landfill facility) was under the
31
operational control of a non-group entity throughout an
32
eligible financial year; or
33
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 18
48 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
(ii) a facility (other than a landfill facility) was under the
1
operational control of a non-group entity for a number
2
of, but not all, days in an eligible financial year (the
3
control days); and
4
(b) the total amount of greenhouse gases emitted from the
5
operation of the facility:
6
(i) if subparagraph (a)(i) applies--during the eligible
7
financial year; or
8
(ii) if subparagraph (a)(ii) applies--during the control days;
9
has a carbon dioxide equivalence of a particular number of
10
tonnes.
11
Provisional emissions number
12
(2) For the purposes of this Act, that number is a provisional
13
emissions number of the non-group entity for the eligible financial
14
year.
15
Liable entity
16
(3) For the purposes of this Act, the non-group entity is a liable entity
17
for the eligible financial year.
18
Exemption--small facility
19
(4)
If:
20
(a) the facility was under the operational control of the
21
non-group entity throughout the eligible financial year; and
22
(b) during the eligible financial year, the total amount of
23
greenhouse gases emitted from the operation of the facility
24
had a carbon dioxide equivalence of less than 25,000 tonnes;
25
so much of the total amount mentioned in paragraph (b) as would
26
otherwise count for the purposes of subsection (1) does not count
27
for the purposes of subsection (1).
28
Note:
See also section 23 (anti-avoidance).
29
(5)
If:
30
(a) the facility was under the operational control of the
31
non-group entity for a number of, but not all, days in the
32
eligible financial year (the control days); and
33
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 18
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 49
(b) during the control days, the total amount of greenhouse gases
1
emitted from the operation of the facility had a carbon
2
dioxide equivalence of less than the amount worked out using
3
the formula:
4
Number of control days
25,000 tonnes
Number of days in the eligible financial year
×
5
so much of the total amount mentioned in paragraph (b) as would
6
otherwise count for the purposes of subsection (1) does not count
7
for the purposes of subsection (1).
8
Note:
See also section 23 (anti-avoidance).
9
Exemption--liability transfer certificate
10
(6) For the purposes of this section, if, throughout the whole or a part
11
of the eligible financial year, a person was the holder of a liability
12
transfer certificate in relation to the facility, then the facility is
13
taken not to have been under the operational control of the
14
non-group entity during the whole or the part, as the case may be,
15
of the eligible financial year.
16
OTNs--no double counting
17
(7)
If:
18
(a) the facility was under the operational control of the
19
non-group entity throughout the eligible financial year; and
20
(b) during the eligible financial year, an amount of greenhouse
21
gas emitted from the operation of the facility was attributable
22
to the combustion of eligible upstream fuel that was obtained
23
by way of the supply of the fuel to a person (who may be the
24
non-group entity); and
25
(c) in a case where the person had operational control of the
26
facility--the person did not quote the person's OTN in
27
relation to the supply of the fuel;
28
the amount mentioned in paragraph (b):
29
(d) does not count for the purposes of subsection (1); and
30
(e) counts for the purposes of paragraph (4)(b).
31
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 18
50 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
(8)
If:
1
(a) the facility was under the operational control of the
2
non-group entity for a number of, but not all, days in the
3
eligible financial year (the control days); and
4
(b) during the control days, an amount of greenhouse gas emitted
5
from the operation of the facility was attributable to the
6
combustion of eligible upstream fuel that was obtained by
7
way of the supply of the fuel to a person (who may be the
8
non-group entity); and
9
(c) in a case where the person had operational control of the
10
facility--the person did not quote the person's OTN in
11
relation to the supply of the fuel;
12
the amount mentioned in paragraph (b):
13
(d) does not count for the purposes of subsection (1); and
14
(e) counts for the purposes of paragraph (5)(b).
15
Liquid petroleum fuel--no double counting
16
(9)
If:
17
(a) the facility was under the operational control of the
18
non-group entity throughout the eligible financial year; and
19
(b) during the eligible financial year, an amount of greenhouse
20
gas emitted from the operation of the facility was attributable
21
to the combustion of liquid petroleum fuel; and
22
(c) the potential greenhouse gas emissions embodied in the fuel
23
were counted for the purposes of subsection 31(1) or 32(1);
24
the amount mentioned in paragraph (b):
25
(d) does not count for the purposes of subsection (1); and
26
(e) counts for the purposes of paragraph (4)(b).
27
(10)
If:
28
(a) the facility was under the operational control of the
29
non-group entity for a number of, but not all, days in the
30
eligible financial year (the control days); and
31
(b) during the control days, an amount of greenhouse gas emitted
32
from the operation of the facility was attributable to the
33
combustion of liquid petroleum fuel; and
34
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 19
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 51
(c) the potential greenhouse gas emissions embodied in the fuel
1
were counted for the purposes of subsection 31(1) or 32(1);
2
the amount mentioned in paragraph (b):
3
(d) does not count for the purposes of subsection (1); and
4
(e) counts for the purposes of paragraph (5)(b).
5
19 Liable entity--holder of a liability transfer certificate
6
Scope
7
(1) This section applies if:
8
(a)
either:
9
(i) a person was the holder of a liability transfer certificate
10
in relation to a facility (other than a landfill facility)
11
throughout an eligible financial year; or
12
(ii) a person was the holder of a liability transfer certificate
13
in relation to a facility (other than a landfill facility) for
14
a number of, but not all, days in an eligible financial
15
year (the certificate days); and
16
(b) the total amount of greenhouse gases emitted from the
17
operation of the facility:
18
(i) if subparagraph (a)(i) applies--during the eligible
19
financial year; or
20
(ii) if subparagraph (a)(ii) applies--during the certificate
21
days;
22
has a carbon dioxide equivalence of a particular number of
23
tonnes.
24
Provisional emissions number
25
(2) For the purposes of this Act, that number is a provisional
26
emissions number of the person for the eligible financial year.
27
Liable entity
28
(3) For the purposes of this Act, the person is a liable entity for the
29
eligible financial year.
30
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 19
52 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Exemption--small facility
1
(4)
If:
2
(a) the person was the holder of the liability transfer certificate
3
throughout the eligible financial year; and
4
(b) during the eligible financial year, the total amount of
5
greenhouse gases emitted from the operation of the facility
6
had a carbon dioxide equivalence of less than 25,000 tonnes;
7
so much of the total amount mentioned in paragraph (b) as would
8
otherwise count for the purposes of subsection (1) does not count
9
for the purposes of subsection (1).
10
Note:
See also section 23 (anti-avoidance).
11
(5)
If:
12
(a) the person was the holder of the liability transfer certificate
13
for a number of, but not all, days in the eligible financial year
14
(the certificate days); and
15
(b) during the certificate days, the total amount of greenhouse
16
gases emitted from the operation of the facility had a carbon
17
dioxide equivalence of less than the amount worked out using
18
the formula:
19
Number of certificate days
25,000 tonnes
Number of days in the eligible financial year
×
20
so much of the total amount mentioned in paragraph (b) as would
21
otherwise count for the purposes of subsection (1) does not count
22
for the purposes of subsection (1).
23
Note:
See also section 23 (anti-avoidance).
24
OTNs--no double counting
25
(6)
If:
26
(a) the person was the holder of the liability transfer certificate
27
throughout the eligible financial year; and
28
(b) during the eligible financial year, an amount of greenhouse
29
gas emitted from the operation of the facility was attributable
30
to the combustion of eligible upstream fuel that was obtained
31
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 19
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 53
by way of the supply of the fuel to a person (the recipient)
1
(who may be the holder); and
2
(c) in a case where the person had operational control of the
3
facility--the recipient did not quote the recipient's OTN in
4
relation to the supply of the fuel;
5
the amount mentioned in paragraph (b):
6
(d) does not count for the purposes of subsection (1); and
7
(e) counts for the purposes of paragraph (4)(b).
8
(7)
If:
9
(a) the person was the holder of the liability transfer certificate
10
for a number of, but not all, days in the eligible financial year
11
(the certificate days); and
12
(b) during the certificate days, an amount of greenhouse gas
13
emitted from the operation of the facility was attributable to
14
the combustion of eligible upstream fuel that was obtained by
15
way of the supply of the fuel to a person (the recipient) (who
16
may be the holder); and
17
(c) in a case where the person had operational control of the
18
facility--the recipient did not quote the recipient's OTN in
19
relation to the supply of the fuel;
20
the amount mentioned in paragraph (b):
21
(d) does not count for the purposes of subsection (1); and
22
(e) counts for the purposes of paragraph (5)(b).
23
Liquid petroleum fuel--no double counting
24
(8)
If:
25
(a) the person was the holder of the liability transfer certificate
26
throughout the eligible financial year; and
27
(b) during the eligible financial year, an amount of greenhouse
28
gas emitted from the operation of the facility was attributable
29
to the combustion of liquid petroleum fuel; and
30
(c) the potential greenhouse gas emissions embodied in the fuel
31
were counted for the purposes of subsection 31(1) or 32(1);
32
the amount mentioned in paragraph (b):
33
(d) does not count for the purposes of subsection (1); and
34
(e) counts for the purposes of paragraph (4)(b).
35
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 20
54 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
(9)
If:
1
(a) the person was the holder of the liability transfer certificate
2
for a number of, but not all, days in the eligible financial year
3
(the certificate days); and
4
(b) during the certificate days, an amount of greenhouse gas
5
emitted from the operation of the facility was attributable to
6
the combustion of liquid petroleum fuel; and
7
(c) the potential greenhouse gas emissions embodied in the fuel
8
were counted for the purposes of subsection 31(1) or 32(1);
9
the amount mentioned in paragraph (b):
10
(d) does not count for the purposes of subsection (1); and
11
(e) counts for the purposes of paragraph (5)(b).
12
Subdivision B--Landfill facilities
13
20 Liable entity for landfill emissions--controlling corporation of a
14
group
15
Scope
16
(1) This section applies if:
17
(a)
either:
18
(i) a landfill facility was under the operational control of
19
one or more members of a controlling corporation's
20
group throughout an eligible financial year; or
21
(ii) a landfill facility was under the operational control of
22
one or more members of a controlling corporation's
23
group for a number of, but not all, days in an eligible
24
financial year (the control days); and
25
(b) the total amount of greenhouse gases emitted from the
26
operation of the landfill facility:
27
(i) if subparagraph (a)(i) applies--during the eligible
28
financial year; or
29
(ii) if subparagraph (a)(ii) applies--during the control days;
30
has a carbon dioxide equivalence of a particular number of
31
tonnes.
32
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 20
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 55
Provisional emissions number
1
(2) For the purposes of this Act, that number is a provisional
2
emissions number of the controlling corporation for the eligible
3
financial year.
4
Liable entity
5
(3) For the purposes of this Act, the controlling corporation is a liable
6
entity for the eligible financial year.
7
Exemption--small facilities
8
(4)
If:
9
(a) the landfill facility was under the operational control of one
10
or more members of the controlling corporation's group
11
throughout the eligible financial year; and
12
(b) during the eligible financial year, the number of tonnes of the
13
carbon dioxide equivalence of the total amount of greenhouse
14
gases emitted from the operation of the landfill facility is less
15
than the landfill facility's threshold number for the eligible
16
financial year;
17
so much of the total amount mentioned in paragraph (b) as would
18
otherwise count for the purposes of subsection (1) does not count
19
for the purposes of subsection (1).
20
Note 1:
For the landfill facility's threshold number, see subsection (13).
21
Note 2:
See also section 23 (anti-avoidance).
22
(5)
If:
23
(a) the landfill facility was under the operational control of one
24
or more members of the controlling corporation's group for a
25
number of, but not all, days in the eligible financial year (the
26
control days); and
27
(b) during the control days, the number of tonnes of the carbon
28
dioxide equivalence of the total amount of greenhouse gases
29
emitted from the operation of the landfill facility is less than
30
the number worked out using the formula:
31
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 20
56 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Landfill facility's
Number of control days
threshold number for the
Number of days in the
eligible financial year
eligible financial year
×
1
so much of the total amount mentioned in paragraph (b) as would
2
otherwise count for the purposes of subsection (1) does not count
3
for the purposes of subsection (1).
4
Note 1:
For the landfill facility's threshold number, see subsection (13).
5
Note 2:
See also section 23 (anti-avoidance).
6
Exemption--closed landfill facilities
7
(6)
If:
8
(a) the landfill facility has not accepted any waste during the
9
period beginning at the start of 1 July 2008 and ending at the
10
end of the last day of the eligible financial year; and
11
(b) during the eligible financial year, an amount of greenhouse
12
gases was emitted from the operation of the landfill facility;
13
the amount mentioned in paragraph (b), to the extent to which it is
14
attributable to solid waste, does not count for the purposes of
15
subsection (1).
16
Exemption--liability transfer certificate
17
(7) For the purposes of this section, if, throughout the whole or a part
18
of the eligible financial year, a person was the holder of a liability
19
transfer certificate in relation to the landfill facility, then the
20
landfill facility is taken not to have been under the operational
21
control of a member of the controlling corporation's group during
22
the whole or the part, as the case may be, of the eligible financial
23
year.
24
Exemption for emissions attributable to legacy waste
25
(8)
If:
26
(a) during the eligible financial year, an amount of greenhouse
27
gases was emitted from the operation of the landfill facility;
28
and
29
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 20
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 57
(b) waste was accepted by the landfill facility before 1 July
1
2011;
2
so much of the amount mentioned in paragraph (a) as is, under the
3
regulations, taken to be attributable to waste accepted by the
4
facility before 1 July 2011:
5
(c) does not count for the purposes of subsection (1); and
6
(d) counts for the purposes of whichever of subsection (4) or (5)
7
is applicable to the landfill facility.
8
OTNs--no double counting
9
(9)
If:
10
(a) the landfill facility was under the operational control of one
11
or more members of the controlling corporation's group
12
throughout the eligible financial year; and
13
(b) during the eligible financial year, an amount of greenhouse
14
gas emitted from the operation of the landfill facility was
15
attributable to the combustion of eligible upstream fuel that
16
was obtained by way of the supply of the fuel to a person
17
(who may be a member of the controlling corporation's
18
group); and
19
(c) in a case where the person had operational control of the
20
landfill facility--the person did not quote the person's OTN
21
in relation to the supply of the fuel;
22
the amount mentioned in paragraph (b):
23
(d) does not count for the purposes of subsection (1); and
24
(e) counts for the purposes of paragraph (4)(b).
25
(10)
If:
26
(a) the landfill facility was under the operational control of one
27
or more members of the controlling corporation's group for a
28
number of, but not all, days in the eligible financial year (the
29
control days); and
30
(b) during the control days, an amount of greenhouse gas emitted
31
from the operation of the landfill facility was attributable to
32
the combustion of eligible upstream fuel that was obtained by
33
way of the supply of the fuel to a person (who may be a
34
member of the controlling corporation's group); and
35
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 20
58 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
(c) in a case where the person had operational control of the
1
landfill facility--the person did not quote the person's OTN
2
in relation to the supply of the fuel;
3
the amount mentioned in paragraph (b):
4
(d) does not count for the purposes of subsection (1); and
5
(e) counts for the purposes of paragraph (5)(b).
6
Liquid petroleum fuel--no double counting
7
(11)
If:
8
(a) the landfill facility was under the operational control of one
9
or more members of the controlling corporation's group
10
throughout the eligible financial year; and
11
(b) during the eligible financial year, an amount of greenhouse
12
gas emitted from the operation of the landfill facility was
13
attributable to the combustion of liquid petroleum fuel; and
14
(c) the potential greenhouse gas emissions embodied in the fuel
15
were counted for the purposes of subsection 31(1) or 32(1);
16
the amount mentioned in paragraph (b):
17
(d) does not count for the purposes of subsection (1); and
18
(e) counts for the purposes of paragraph (4)(b).
19
(12)
If:
20
(a) the landfill facility was under the operational control of one
21
or more members of the controlling corporation's group for a
22
number of, but not all, days in the eligible financial year (the
23
control days); and
24
(b) during the control days, an amount of greenhouse gas emitted
25
from the operation of the landfill facility was attributable to
26
the combustion of liquid petroleum fuel; and
27
(c) the potential greenhouse gas emissions embodied in the fuel
28
were counted for the purposes of subsection 31(1) or 32(1);
29
the amount mentioned in paragraph (b):
30
(d) does not count for the purposes of subsection (1); and
31
(e) counts for the purposes of paragraph (5)(b).
32
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 21
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 59
Threshold number
1
(13) For the purposes of this section, the landfill facility's threshold
2
number for the eligible financial year is:
3
(a) in a case where:
4
(i) at any time during the eligible financial year, the landfill
5
facility is open for the acceptance of a prescribed class
6
of waste; and
7
(ii) at any time during the eligible financial year, the landfill
8
facility is within the prescribed distance of another
9
landfill facility that is open for the acceptance of the
10
same class of waste; and
11
(iii) the other landfill facility is a designated large landfill
12
facility in relation to the previous eligible financial year;
13
and
14
(iv) if a list has been published by the Authority during the
15
eligible financial year under regulations made for the
16
purposes of section 278G--the other landfill facility is
17
specified in the list;
18
10,000;
or
19
(b) in any other case--25,000.
20
(14) For the purposes of subparagraph (13)(a)(ii), distance is to be
21
measured in accordance with the regulations.
22
(15) For the purposes of subparagraph (13)(a)(iii), assume that the
23
financial year beginning on 1 July 2010 is an eligible financial
24
year.
25
21 Liable entity for landfill emissions--non-group entity
26
Scope
27
(1) This section applies if:
28
(a)
either:
29
(i) a landfill facility was under the operational control of a
30
non-group entity throughout an eligible financial year;
31
or
32
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 21
60 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
(ii) a landfill facility was under the operational control of a
1
non-group entity for a number of, but not all, days in an
2
eligible financial year (the control days); and
3
(b) the total amount of greenhouse gases emitted from the
4
operation of the landfill facility:
5
(i) if subparagraph (a)(i) applies--during the eligible
6
financial year; or
7
(ii) if subparagraph (a)(ii) applies--during the control days;
8
has a carbon dioxide equivalence of a particular number of
9
tonnes.
10
Provisional emissions number
11
(2) For the purposes of this Act, that number is a provisional
12
emissions number of the non-group entity for the eligible financial
13
year.
14
Liable entity
15
(3) For the purposes of this Act, the non-group entity is a liable entity
16
for the eligible financial year.
17
Exemption--small facilities
18
(4)
If:
19
(a) the landfill facility was under the operational control of the
20
non-group entity throughout the eligible financial year; and
21
(b) during the eligible financial year, the number of tonnes of the
22
carbon dioxide equivalence of the total amount of greenhouse
23
gases emitted from the operation of the landfill facility is less
24
than the landfill facility's threshold number for the eligible
25
financial year;
26
so much of the total amount mentioned in paragraph (b) as would
27
otherwise count for the purposes of subsection (1) does not count
28
for the purposes of subsection (1).
29
Note 1:
For the landfill facility's threshold number, see subsection (13).
30
Note 2:
See also section 23 (anti-avoidance).
31
(5)
If:
32
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 21
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 61
(a) the landfill facility was under the operational control of the
1
non-group entity for a number of, but not all, days in the
2
eligible financial year (the control days); and
3
(b) during the control days, the number of tonnes of the carbon
4
dioxide equivalence of the total amount of greenhouse gases
5
emitted from the operation of the landfill facility is less than
6
the number worked out using the formula:
7
Landfill facility's
Number of control days
threshold number for the
Number of days in the
eligible financial year
eligible financial year
×
8
so much of the total amount mentioned in paragraph (b) as would
9
otherwise count for the purposes of subsection (1) does not count
10
for the purposes of subsection (1).
11
Note 1:
For the landfill facility's threshold number, see subsection (13).
12
Note 2:
See also section 23 (anti-avoidance).
13
Exemption--closed landfill facilities
14
(6)
If:
15
(a) the landfill facility has not accepted any waste during the
16
period beginning at the start of 1 July 2008 and ending at the
17
end of the last day of the eligible financial year; and
18
(b) during the eligible financial year, an amount of greenhouse
19
gases was emitted from the operation of the landfill facility;
20
the amount mentioned in paragraph (b), to the extent to which it is
21
attributable to solid waste, does not count for the purposes of
22
subsection (1).
23
Exemption--liability transfer certificate
24
(7) For the purposes of this section, if, throughout the whole or a part
25
of the eligible financial year, a person was the holder of a liability
26
transfer certificate in relation to the landfill facility, then the
27
landfill facility is taken not to have been under the operational
28
control of the non-group entity during the whole or the part, as the
29
case may be, of the eligible financial year.
30
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 21
62 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Exemption for emissions attributable to legacy waste
1
(8)
If:
2
(a) during the eligible financial year, an amount of greenhouse
3
gases was emitted from the operation of the landfill facility;
4
and
5
(b) waste was accepted by the landfill facility before 1 July
6
2011;
7
so much of the amount mentioned in paragraph (a) as is, under the
8
regulations, taken to be attributable to waste accepted by the
9
facility before 1 July 2011:
10
(c) does not count for the purposes of subsection (1); and
11
(d) counts for the purposes of whichever of subsection (4) or (5)
12
is applicable to the landfill facility.
13
OTNs--no double counting
14
(9)
If:
15
(a) the landfill facility was under the operational control of the
16
non-group entity throughout the eligible financial year; and
17
(b) during the eligible financial year, an amount of greenhouse
18
gas emitted from the operation of the landfill facility was
19
attributable to the combustion of eligible upstream fuel that
20
was obtained by way of the supply of the fuel to a person
21
(who may be the non-group entity); and
22
(c) in a case where the person had operational control of the
23
landfill facility--the person did not quote the person's OTN
24
in relation to the supply of the fuel;
25
the amount mentioned in paragraph (b):
26
(d) does not count for the purposes of subsection (1); and
27
(e) counts for the purposes of paragraph (4)(b).
28
(10)
If:
29
(a) the landfill facility was under the operational control of the
30
non-group entity for a number of, but not all, days in the
31
eligible financial year (the control days); and
32
(b) during the control days, an amount of greenhouse gas emitted
33
from the operation of the landfill facility was attributable to
34
the combustion of eligible upstream fuel that was obtained by
35
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 21
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 63
way of the supply of the fuel to a person (who may be the
1
non-group entity); and
2
(c) in a case where the person had operational control of the
3
landfill facility--the person did not quote the person's OTN
4
in relation to the supply of the fuel;
5
the amount mentioned in paragraph (b):
6
(d) does not count for the purposes of subsection (1); and
7
(e) counts for the purposes of paragraph (5)(b).
8
Liquid petroleum fuel--no double counting
9
(11)
If:
10
(a) the landfill facility was under the operational control of the
11
non-group entity throughout the eligible financial year; and
12
(b) during the eligible financial year, an amount of greenhouse
13
gas emitted from the operation of the landfill facility was
14
attributable to the combustion of liquid petroleum fuel; and
15
(c) the potential greenhouse gas emissions embodied in the fuel
16
were counted for the purposes of subsection 31(1) or 32(1);
17
the amount mentioned in paragraph (b):
18
(d) does not count for the purposes of subsection (1); and
19
(e) counts for the purposes of paragraph (4)(b).
20
(12)
If:
21
(a) the landfill facility was under the operational control of the
22
non-group entity for a number of, but not all, days in the
23
eligible financial year (the control days); and
24
(b) during the control days, an amount of greenhouse gas emitted
25
from the operation of the landfill facility was attributable to
26
the combustion of liquid petroleum fuel; and
27
(c) the potential greenhouse gas emissions embodied in the fuel
28
were counted for the purposes of subsection 31(1) or 32(1);
29
the amount mentioned in paragraph (b):
30
(d) does not count for the purposes of subsection (1); and
31
(e) counts for the purposes of paragraph (5)(b).
32
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 22
64 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Threshold number
1
(13) For the purposes of this section, the landfill facility's threshold
2
number for the eligible financial year is:
3
(a) in a case where:
4
(i) at any time during the eligible financial year, the landfill
5
facility is open for the acceptance of a prescribed class
6
of waste; and
7
(ii) at any time during the eligible financial year, the landfill
8
facility is within the prescribed distance of another
9
landfill facility that is open for the acceptance of the
10
same class of waste; and
11
(iii) the other landfill facility is a designated large landfill
12
facility in relation to the previous eligible financial year;
13
and
14
(iv) if a list has been published by the Authority during the
15
eligible financial year under regulations made for the
16
purposes of section 278G--the other landfill facility is
17
specified in the list;
18
10,000;
or
19
(b) in any other case--25,000.
20
(14) For the purposes of subparagraph (13)(a)(ii), distance is to be
21
measured in accordance with the regulations.
22
(15) For the purposes of subparagraph (13)(a)(iii), assume that the
23
financial year beginning on 1 July 2010 is an eligible financial
24
year.
25
22 Liable entity for landfill emissions--holder of a liability transfer
26
certificate
27
Scope
28
(1) This section applies if:
29
(a)
either:
30
(i) a person was the holder of a liability transfer certificate
31
in relation to a landfill facility throughout an eligible
32
financial year; or
33
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 22
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 65
(ii) a person was the holder of a liability transfer certificate
1
in relation to a landfill facility for a number of, but not
2
all, days in an eligible financial year (the certificate
3
days); and
4
(b) the total amount of greenhouse gases emitted from the
5
operation of the landfill facility:
6
(i) if subparagraph (a)(i) applies--during the eligible
7
financial year; or
8
(ii) if subparagraph (a)(ii) applies--during the certificate
9
days;
10
has a carbon dioxide equivalence of a particular number of
11
tonnes.
12
Provisional emissions number
13
(2) For the purposes of this Act, that number is a provisional
14
emissions number of the person for the eligible financial year.
15
Liable entity
16
(3) For the purposes of this Act, the person is a liable entity for the
17
eligible financial year.
18
Exemption--small facility
19
(4)
If:
20
(a) the person was the holder of the liability transfer certificate
21
throughout the eligible financial year; and
22
(b) during the eligible financial year, the number of tonnes of the
23
carbon dioxide equivalence of the total amount of greenhouse
24
gases emitted from the operation of the landfill facility is less
25
than the landfill facility's threshold number for the eligible
26
financial year;
27
so much of the total amount mentioned in paragraph (b) as would
28
otherwise count for the purposes of subsection (1) does not count
29
for the purposes of subsection (1).
30
Note 1:
For the landfill facility's threshold number, see subsection (12).
31
Note 2:
See also section 23 (anti-avoidance).
32
(5)
If:
33
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 22
66 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
(a) the person was the holder of the liability transfer certificate
1
for a number of, but not all, days in the eligible financial year
2
(the certificate days); and
3
(b) during the control days, the number of tonnes of the carbon
4
dioxide equivalence of the total amount of greenhouse gases
5
emitted from the operation of the landfill facility is less than
6
the number worked out using the formula:
7
Landfill facility's
Number of certificate days
threshold number for the
Number of days in the
eligible financial year
eligible financial year
×
8
so much of the total amount mentioned in paragraph (b) as would
9
otherwise count for the purposes of subsection (1) does not count
10
for the purposes of subsection (1).
11
Note 1:
For the landfill facility's threshold number, see subsection (12).
12
Note 2:
See also section 23 (anti-avoidance).
13
Exemption--closed landfill facilities
14
(6)
If:
15
(a) the landfill facility has not accepted any waste during the
16
period beginning at the start of 1 July 2008 and ending at the
17
end of the last day of the eligible financial year; and
18
(b) during the eligible financial year, an amount of greenhouse
19
gases was emitted from the operation of the landfill facility;
20
the amount mentioned in paragraph (b), to the extent to which it is
21
attributable to solid waste, does not count for the purposes of
22
subsection (1).
23
Exemption for emissions attributable to legacy waste
24
(7)
If:
25
(a) during the eligible financial year, an amount of greenhouse
26
gases was emitted from the operation of the landfill facility;
27
and
28
(b) waste was accepted by the landfill facility before 1 July
29
2011;
30
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 22
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 67
so much of the amount mentioned in paragraph (a) as is, under the
1
regulations, taken to be attributable to waste accepted by the
2
facility before 1 July 2011:
3
(c) does not count for the purposes of subsection (1); and
4
(d) counts for the purposes of whichever of subsection (4) or (5)
5
is applicable to the landfill facility.
6
OTNs--no double counting
7
(8)
If:
8
(a) the person was the holder of the liability transfer certificate
9
throughout the eligible financial year; and
10
(b) during the eligible financial year, an amount of greenhouse
11
gas emitted from the operation of the landfill facility was
12
attributable to the combustion of eligible upstream fuel that
13
was obtained by way of the supply of the fuel to a person (the
14
recipient) (who may be the holder); and
15
(c) in a case where the person had operational control of the
16
landfill facility--the recipient did not quote the recipient's
17
OTN in relation to the supply of the fuel;
18
the amount mentioned in paragraph (b):
19
(d) does not count for the purposes of subsection (1); and
20
(e) counts for the purposes of paragraph (4)(b).
21
(9)
If:
22
(a) the person was the holder of the liability transfer certificate
23
for a number of, but not all, days in the eligible financial year
24
(the certificate days); and
25
(b) during the certificate days, an amount of greenhouse gas
26
emitted from the operation of the landfill facility was
27
attributable to the combustion of eligible upstream fuel that
28
was obtained by way of the supply of the fuel to a person (the
29
recipient) (who may be the holder); and
30
(c) in a case where the person had operational control of the
31
landfill facility--the recipient did not quote the recipient's
32
OTN in relation to the supply of the fuel;
33
the amount mentioned in paragraph (b):
34
(d) does not count for the purposes of subsection (1); and
35
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 22
68 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
(e) counts for the purposes of paragraph (5)(b).
1
Liquid petroleum fuel--no double counting
2
(10)
If:
3
(a) the person was the holder of the liability transfer certificate
4
throughout the eligible financial year; and
5
(b) during the eligible financial year, an amount of greenhouse
6
gas emitted from the operation of the landfill facility was
7
attributable to the combustion of liquid petroleum fuel; and
8
(c) the potential greenhouse gas emissions embodied in the fuel
9
were counted for the purposes of subsection 31(1) or 32(1);
10
the amount mentioned in paragraph (b):
11
(d) does not count for the purposes of subsection (1); and
12
(e) counts for the purposes of paragraph (4)(b).
13
(11)
If:
14
(a) the person was the holder of the liability transfer certificate
15
for a number of, but not all, days in the eligible financial year
16
(the certificate days); and
17
(b) during the certificate days, an amount of greenhouse gas
18
emitted from the operation of the landfill facility was
19
attributable to the combustion of liquid petroleum fuel; and
20
(c) the potential greenhouse gas emissions embodied in the fuel
21
were counted for the purposes of subsection 31(1) or 32(1);
22
the amount mentioned in paragraph (b):
23
(d) does not count for the purposes of subsection (1); and
24
(e) counts for the purposes of paragraph (5)(b).
25
Threshold number
26
(12) For the purposes of this section, the landfill facility's threshold
27
number for the eligible financial year is:
28
(a) in a case where:
29
(i) at any time during the eligible financial year, the landfill
30
facility is open for the acceptance of a prescribed class
31
of waste; and
32
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 22A
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 69
(ii) at any time during the eligible financial year, the landfill
1
facility is within the prescribed distance of another
2
landfill facility that is open for the acceptance of the
3
same class of waste; and
4
(iii) the other landfill facility is a designated large landfill
5
facility in relation to the previous eligible financial year;
6
and
7
(iv) if a list has been published by the Authority during the
8
eligible financial year under regulations made for the
9
purposes of section 278G--the other landfill facility is
10
specified in the list;
11
10,000;
or
12
(b) in any other case--25,000.
13
(13) For the purposes of subparagraph (12)(a)(ii), distance is to be
14
measured in accordance with the regulations.
15
(14) For the purposes of subparagraph (12)(a)(iii), assume that the
16
financial year beginning on 1 July 2010 is an eligible financial
17
year.
18
Subdivision BA--Adjustment of provisional emissions number
19
in relation to a facility in the Joint Petroleum
20
Development Area or the Greater Sunrise unit area
21
22A Joint Petroleum Development Area--adjustment of provisional
22
emissions number
23
Scope
24
(1) This section applies if there is a provisional emissions number of a
25
person for an eligible financial year in relation to greenhouse gases
26
emitted from the operation of a facility that is:
27
(a) located in the Joint Petroleum Development Area; and
28
(b) not located in the Greater Sunrise unit area;
29
during a period that is included in, or consists of, the eligible
30
financial year.
31
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 22B
70 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Adjustment
1
(2) For the purposes of this Act, that provisional emissions number is
2
taken to be the number worked out using the formula:
3
Prescribed percentage
Unadjusted provisional emissions number
×
4
where:
5
prescribed percentage means the percentage (not exceeding 100%)
6
specified in the regulations in relation to the facility for the eligible
7
financial year.
8
unadjusted provisional emissions number means the number that,
9
apart from this subsection, would be the provisional emissions
10
number of the person for the eligible financial year in relation to
11
greenhouse gases emitted from the operation of the facility during
12
the period.
13
22B Joint Petroleum Development Area-Greater Sunrise unit
14
area--adjustment of provisional emissions number
15
Scope
16
(1) This section applies if there is a provisional emissions number of a
17
person for an eligible financial year in relation to greenhouse gases
18
emitted from the operation of a facility that is located in both of the
19
following areas:
20
(a) the Joint Petroleum Development Area;
21
(b) the Greater Sunrise unit area;
22
during a period that is included in, or consists of, the eligible
23
financial year.
24
Adjustment
25
(2) For the purposes of this Act, that provisional emissions number is
26
taken to be the number worked out using the formula:
27
Prescribed percentage
Unadjusted provisional emissions number
×
28
where:
29
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 22C
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 71
prescribed percentage means the percentage (not exceeding 100%)
1
specified in the regulations in relation to the facility for the eligible
2
financial year.
3
unadjusted provisional emissions number means the number that,
4
apart from this subsection, would be the provisional emissions
5
number of the person for the eligible financial year in relation to
6
greenhouse gases emitted from the operation of the facility during
7
the period.
8
22C Greater Sunrise unit area--adjustment of provisional emissions
9
number
10
Scope
11
(1) This section applies if there is a provisional emissions number of a
12
person for an eligible financial year in relation to greenhouse gases
13
emitted from the operation of a facility that is:
14
(a) located in the Greater Sunrise unit area; and
15
(b) not located in the Joint Petroleum Development Area;
16
during a period that is included in, or consists of, the eligible
17
financial year.
18
Adjustment
19
(2) For the purposes of this Act, that provisional emissions number is
20
taken to be the number worked out using the formula:
21
Prescribed percentage
Unadjusted provisional emissions number
×
22
where:
23
prescribed percentage means the percentage (not exceeding 100%)
24
specified in the regulations in relation to the facility for the eligible
25
financial year.
26
unadjusted provisional emissions number means the number that,
27
apart from this subsection, would be the provisional emissions
28
number of the person for the eligible financial year in relation to
29
greenhouse gases emitted from the operation of the facility during
30
the period.
31
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 23
72 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Subdivision C--Anti-avoidance
1
23 Anti-avoidance
2
Scope
3
(1) This section applies if:
4
(a) at any time after 15 December 2008, one or more persons
5
entered into, commenced to carry out, or carried out, a
6
scheme; and
7
(b) it would be concluded that the person, or any of the persons,
8
who entered into, commenced to carry out, or carried out, the
9
scheme did so for the purpose, or for purposes that included
10
the substantial purpose, of:
11
(i) enabling the controlling corporation of a group to obtain
12
the benefit of one or more threshold provisions in
13
relation to a facility for an eligible financial year; or
14
(ii) enabling a non-group entity to obtain the benefit of one
15
or more threshold provisions in relation to a facility for
16
an eligible financial year; or
17
(iii) enabling the holder of a liability transfer certificate to
18
obtain the benefit of one or more threshold provisions in
19
relation to a facility for an eligible financial year.
20
For this purpose, it is immaterial whether the controlling
21
corporation, non-group entity or the holder of the certificate, as the
22
case may be, is the person, or one of the persons, referred to in
23
paragraph (a).
24
Cancellation of benefit of threshold provision
25
(2) The Authority may, by writing, determine that this Act has, and is
26
taken always to have had, effect, as if the controlling corporation,
27
the non-group entity or the holder of the certificate, as the case
28
may be, were not entitled to obtain the benefit of the relevant
29
threshold provision or provisions in relation to the facility for that
30
eligible financial year.
31
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 24
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 73
(3) If the Authority makes a determination under subsection (2), the
1
Authority must publish a copy of the determination on the
2
Authority's website.
3
Threshold provision
4
(4) For the purposes of this section, each of the following is a
5
threshold provision:
6
(a)
subsection
17(4);
7
(b)
subsection
17(5);
8
(c)
subsection
18(4);
9
(d)
subsection
18(5);
10
(e)
subsection
19(4);
11
(f)
subsection
19(5);
12
(g)
subsection
20(4);
13
(h)
subsection
20(5);
14
(i)
subsection
21(4);
15
(j)
subsection
21(5);
16
(k)
subsection
22(4);
17
(l)
subsection
22(5).
18
Subdivision D--Greenhouse gas emitted from the operation of
19
a facility
20
24 Greenhouse gas emitted from the operation of a facility
21
(1) For the purposes of this Act, an emission of greenhouse gas from
22
the operation of a facility is a scope 1 emission of greenhouse gas,
23
where:
24
(a) the greenhouse gas is released into the atmosphere as a direct
25
result of the operation of the facility; and
26
(b) regulations made for the purposes of paragraph 10(2A)(a) of
27
the National Greenhouse and Energy Reporting Act 2007
28
declare that the emission is a scope 1 emission covered by the
29
carbon pollution reduction scheme.
30
Part 3 Liable entities
Division 2 Direct emitters of greenhouse gases
Section 24
74 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Exclusion of agricultural emissions
1
(2) For the purposes of this Act, an emission of a greenhouse gas from
2
the operation of a facility does not include any of the following
3
emissions:
4
(a) an emission of methane from the digestive tract of livestock;
5
(b) an emission of:
6
(i)
methane;
or
7
(ii)
nitrous
oxide;
8
from the decomposition of:
9
(iii) livestock urine; or
10
(iv)
livestock
dung;
11
(c) an emission of methane from:
12
(i) rice fields; or
13
(ii)
rice
plants;
14
(d) an emission of:
15
(i)
methane;
or
16
(ii)
nitrous
oxide;
17
from the burning of:
18
(iii)
savannas;
or
19
(iv)
grasslands;
20
(e) an emission of:
21
(i)
methane;
or
22
(ii)
nitrous
oxide;
23
from the burning of:
24
(iii) crop stubble in fields; or
25
(iv) crop residues in fields; or
26
(v) sugar cane before harvest;
27
(f) an emission of:
28
(i) carbon dioxide; or
29
(ii)
methane;
or
30
(iii)
nitrous
oxide;
31
from
soil.
32
(3) Paragraph (2)(f) does not apply to an emission that is attributable
33
to the operation of a landfill facility.
34
Liable entities Part 3
Direct emitters of greenhouse gases Division 2
Section 25
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 75
25 Measurement of greenhouse gas emitted from the operation of a
1
facility
2
For the purposes of this Act, greenhouse gas emitted from the
3
operation of a facility is to be measured using:
4
(a) methods determined under subsection 10(3) of the National
5
Greenhouse and Energy Reporting Act 2007; or
6
(b) methods which meet criteria determined under that
7
subsection;
8
where the use of those methods satisfies any conditions specified in
9
the determination under that subsection.
10
11
Part 3 Liable entities
Division 3 Importers, manufacturers and suppliers of synthetic greenhouse gases
Section 26
76 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
Division 3--Importers, manufacturers and suppliers of
1
synthetic greenhouse gases
2
26 Liable entity--import of synthetic greenhouse gas
3
Scope
4
(1) This section applies if, during an eligible financial year, the total
5
amount of synthetic greenhouse gases imported by a person has a
6
carbon dioxide equivalence of a particular number of tonnes.
7
Provisional emissions number
8
(2) For the purposes of this Act, that number is a provisional
9
emissions number of the person for the eligible financial year.
10
Note:
See also section 27A, which deals with the reduction of total
11
provisional emissions numbers.
12
Liable entity
13
(3) For the purposes of this Act, the person is a liable entity for the
14
eligible financial year.
15
Exemption--small importers
16
(4) If, during the eligible financial year, the total amount of synthetic
17
greenhouse gases imported by the person has a carbon dioxide
18
equivalence of less than 25,000 tonnes, the total amount does not
19
count for the purposes of subsection (1).
20
Note:
See also section 30 (anti-avoidance).
21
Synthetic greenhouse gases in manufactured products
22
(5) For the purposes of this section, disregard a synthetic greenhouse
23
gas if the gas is in a manufactured product that consists in part of
24
that gas only because the gas was used in the manufacturing
25
process.
26
Note:
For example, this subsection would apply to a gas that remained in a
27
foam product after the gas was used in the production of the foam.
28
Liable entities Part 3
Importers, manufacturers and suppliers of synthetic greenhouse gases Division 3
Section 27
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 77
Synthetic greenhouse gas for use on board ships or aircraft
1
(6) For the purposes of this section, disregard the import of a synthetic
2
greenhouse gas if:
3
(a) the synthetic greenhouse gas is on board a ship or aircraft;
4
and
5
(b) the ship or aircraft has air-conditioning or refrigeration
6
equipment; and
7
(c) the synthetic greenhouse gas is exclusively for use in meeting
8
the reasonable servicing requirements of that equipment
9
during, or in connection with, one or more periods when the
10
ship or aircraft is or will be engaged in a journey between:
11
(i) a place in Australia and a place outside Australia; or
12
(ii) 2 places outside Australia.
13
27 Liable entity--manufacture of synthetic greenhouse gas
14
Scope
15
(1) This section applies if, during an eligible financial year, the total
16
amount of synthetic greenhouse gases manufactured by a person
17
has a carbon dioxide equivalence of a particular number of tonnes.
18
Provisional emissions number
19
(2) For the purposes of this Act, that number is a provisional
20
emissions number of the person for the eligible financial year.
21
Note:
See also section 27A, which deals with the reduction of total
22
provisional emissions numbers.
23
Liable entity
24
(3) For the purposes of this Act, the person is a liable entity for the
25
eligible financial year.
26
Exemption--small manufacturers
27
(4) If, during the eligible financial year, the total amount of synthetic
28
greenhouse gases manufactured by the person has a carbon dioxide
29
Part 3 Liable entities
Division 3 Importers, manufacturers and suppliers of synthetic greenhouse gases
Section 27A
78 Carbon Pollution Reduction Scheme Bill 2010 No. , 2010
equivalence of less than 25,000 tonnes, the total amount does not
1
count for the purposes of subsection (1).
2
Note:
See also section 30 (anti-avoidance).
3
Recycling of synthetic greenhouse gas
4
(5) For the purposes of this section, disregard a process by which a
5
quantity of synthetic greenhouse gas is produced by the recycling
6
of substances containing synthetic greenhouse gases of that
7
quantity.
8
(6) For the purposes of this section, if a process for the manufacture of
9
a quantity of synthetic greenhouse gas involves, in part, the
10
recycling of substances containing synthetic greenhouse gas of a
11
lesser quantity, the quantity of synthetic greenhouse gas
12
manufactured in the process is taken to be reduced by the quantity
13
of synthetic greenhouse gas in the substances recycled in the
14
process.
15
27A Reduction of total provisional emissions numbers--netted-out
16
numbers
17
Reduction of provisional emissions numbers
18
(1)
If:
19
(a) under section 26 or 27, or both, a person has one or more
20
provisional emissions numbers for an eligible financial year;
21
and
22
(b) the person has one or more netted-out numbers for the
23
eligible financial year;
24
the total of those provisional emissions numbers is to be reduced
25
(but not below zero) by the total of those netted-out numbers.
26
Netted-out numbers
27
(2) For the purposes of this section, if:
28
(a) during an eligible financial year, the total amount of a
29
particular type of synthetic greenhouse gas imported or
30
manufactured, or both, by a person has a carbon dioxide
31
Liable entities Part 3
Importers, manufacturers and suppliers of synthetic greenhouse gases Division 3
Section 27A
Carbon Pollution Reduction Scheme Bill 2010 No. , 2010 79
equivalence of a particular number of tonnes (the
1
import/manufacture number); and
2
(b) during the eligible financial year, the total amount of the
3
same type of synthetic greenhouse gas exported by the person
4
has a carbon dioxide equivalence of a particular number of
5
tonnes (the export number);
6
then:
7
(c) if the import/manufacture number exceeds the export
8
number--the export number is a netted-out number of the
9
person for the eligible financial year; or
10
(d) otherwise--the import/manufacture number is a netted-out
11
number of the person for the eligible financial year.
12
(3) Paragraph (2)(b) does not apply to synthetic greenhouse gas
13
exported by the person if the synthetic greenhouse gas was
14
supplied in Australia to the person.
15
(4) For the purposes of this section, if:
16
(a) during an eligible financial year, a person (the first person)
17
imported or manufactured an amount of synthetic greenhouse
18
gas; and
19
(b) as a result of the import or manufacture, the first person has,
20
under section 26 or 27, a provisional emissions number for
21
the eligible financial year; and
22
(c) after the import or manufacture, the first person supplies an
23
amount of the synthetic greenhouse gas to another person
24
who quotes the other person's OTN in relation to the supply;
25
and
26
(d) the amount mentioned in paragraph (c) is the whole or a part
27
of the amount mentioned in paragraph (a); and
28
(e) the amount mentioned in paragraph (c) has a carbon dioxide
29
equivalence of a particular number of tonnes;
30
that number is a netted-out number of the first person for the
31
eligible financial year in which the supply mentioned in
32
paragraph (c) occurs.
33
Part 3 Liable entities
Division 3 Importers, manufacturers and suppliers of synthetic greenhouse gases
Section 27A