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NATIONAL MARKET DRIVEN ENERGY EFFICIENCY TARGET BILL 2007 [2008]

2004-2005-2006-2007
The Parliament of the
Commonwealth of Australia
THE SENATE
Presented and read a first time
National Market Driven Energy
Efficiency Target Bill 2007
No. , 2007
(Senator Allison)
A Bill for an Act to create incentives and a market
for energy savings, which are additional to energy
efficiency activities set by minimum energy
performance regulation, through energy efficiency
certificate trading, and for related purposes
Contents
1
Short Title ........................................................................................... 1
2
Purpose ............................................................................................... 1
3
Commencement................................................................................... 2
4
Schedules............................................................................................. 2
Schedule 1--Amendment of the Renewable Energy (Electricity)
Act 2000
3
National Market Driven Energy Efficiency Target Bill 2007 No. , 2007 1
D:\BillsMigrate2-copy\SenateBills\Bills\FIRST\0716520.doc 23/7/2008 10:16 PM
A Bill for an Act to create incentives and a market
1
for energy savings, which are additional to energy
2
efficiency activities set by minimum energy
3
performance regulation, through energy efficiency
4
certificate trading, and for related purposes
5
The Parliament of Australia enacts:
6
7
1 Short Title
8
This Act may be cited as the National Market Driven Energy
9
Efficiency Target Act 2007
10
2 Purpose
11
The purpose of this Act is to promote the adoption of greater
12
energy efficiencies and cost effective greenhouse gas abatement
13
by:
14
(a) recognising large energy efficiency improvement
1
opportunities;
2
(b) facilitating investment in energy efficiency activities;
3
(c) addressing the failure of the energy market to deliver cost
4
effective energy efficiency activities;
5
(d) completing the energy market through the establishment of a
6
market for energy efficiency and energy savings activities;
7
(e) introducing a mandated National Market Driven Energy
8
Efficiency Target (NMDEET);
9
(f) providing for the creation, acquisition and trading of Energy
10
Efficiency Certificates (EECs) which represent accredited
11
eligible energy savings;
12
(g) establishing accreditation methodologies to result in only high
13
quality energy efficiency activities while minimising
14
administration costs and burdens;
15
(h) creating a demand for energy efficiency activities by requiring
16
certain purchasers (called liable entities) to surrender a
17
specified number of certificates for the electricity that they
18
acquire during a year.
19
3 Commencement
20
This Act commences on 1 January 2008.
21
Note:
In accordance with section 4 of the Renewable Energy (Electricity) Act
22
2000, no liabilities will accrue under this Act after 1 January 2021.
23
4 Schedules
24
Each Act that is specified in a Schedule to this Act is amended or
25
repealed as set out in the applicable items in the Schedule
26
concerned, and any other item in a Schedule to this Act has effect
27
according to its terms.
28
29
30
31
1
Schedule 1
--
Amendment of the Renewable
2
Energy (Electricity) Act 2000
3
4
1 At the end of section 3
5
Add:
6
(d) to result in greater energy efficiency and reduction
7
in energy waste; and
8
(e) to encourage investment in energy efficiency
9
activities and the development of energy efficiency
10
technologies; and
11
(f) to reduce the energy intensity and greenhouse gas
12
emission intensity of the Australian economy; and
13
(g) to contribute to the improvement of Australia's
14
productivity and energy security; and
15
(h) to reduce Australia's overall greenhouse gas
16
emissions.
17
This is achieved by:
18
(i) providing a system for recognising eligible energy
19
efficiency activities;
20
(j) creating and issuing tradeable certificates (energy
21
efficiency certificates - EECs) for eligible energy
22
efficiency savings;
23
(k) specifying who is eligible for such a certificate;
24
(l) setting a national energy efficiency target (the
25
National Market Driven Energy Efficiency
26
Target (NMDEET);
27
(m) requiring certain purchasers (liable entities) to
1
surrender a specified number of certificates for the
2
electricity that they acquire during a year. Where a
3
liable entity does not have enough certificates to
4
surrender, the liable entity will have to pay the
5
energy efficiency shortfall charge.
6
2 Subsection 5(1)
7
Insert:
8
baseline or energy efficiency activity baseline means the energy
9
consumption before the implementation of the eligible energy
10
efficiency activity.
11
certified performance means a type of eligible energy efficiency
12
activity that can be measured and accredited in accordance with
13
section 30T.
14
discount factor means the factor applied to the energy savings
15
from an eligible energy efficiency activity to reflect varying
16
operational behaviours, or the confidence level associated with the
17
eligible energy efficiency activity.
18
eligible energy efficiency activity is an activity provided for in
19
Division 3.
20
energy efficiency certificate (EEC) means an energy efficiency
21
certificate created under Part 2A.
22
energy efficiency shortfall charge has the meaning given by
23
section 38A
24
energy efficiency target percentage means the percentage fixed
25
under section 40A.
26
energy saving means the energy saved after the implementation of
27
the eligible energy efficiency activity.
28
MJ means a megajoule.
29
system boundary has the meaning given in the regulations.
30
verified performance means a type of energy efficiency activity
1
that can be measured in accordance with section 30T.
2
3 After Part 2
3
Insert:
4
Part 2A--Energy Efficiency Certificates
5
Division 1--Preliminary
6
30H Overview of Part
7
This Part provides for the creation, trading and extinguishing of
8
energy efficiency certificates (EECs).
9
EECs are used to commoditise the energy saving due to the energy
10
efficiency activity and allow trading. Trading of EECs will have the
11
effect of equalising the marginal cost of compliance among the
12
liable entities.
13
EECs may be created by registered persons who operate or own
14
an eligible energy efficiency activity and are accredited by the
15
Regulator. A person may apply to the Regulator for accreditation.
16
Accredited participants include but are not limited to the following:
17
(a) energy consumers from all sectors of the economy
18
(commercial, industrial, and domestic sectors);
19
(b) intermediaries or aggregators, for example energy
20
service companies or energy retailers;
21
(c) local government or municipal utilities;
22
(d) liable entities who invest directly in an eligible
23
energy efficiency activity.
24
A liable entity is required to obtain and acquit EECs to the
25
Regulator (refer to section 38A). A liable entity will acquire an
26
EEC by:
27
(a) purchasing it; or
1
(b) investing directly in an eligible and accredited
2
energy efficiency activity.
3
A person must be registered in accordance with Division 2 before
4
they may create or acquire an EEC.
5
Division 3A provides for provisional accreditation of an energy
6
efficiency activity.
7
A person needs to be accredited under Division 3 before an EEC
8
can be issued in relation to energy savings achieved.
9
A certificate must be registered in accordance with Division 4
10
when it is created. Every transfer of the certificate must also be
11
registered.
12
When a certificate has been surrendered by a liable entity, it ceases
13
to be valid and provision is made for the surrender of certificates.
14
30I Explaining how energy savings are measured and lead to the
15
issuing of an energy efficiency certificate
16
(1) The diagram in this section and the explanation indicates the energy
17
saving process which leads to the issuing of an EEC. The diagram
18
is intended for use only as a general introductory illustration and is
19
not intended to have any other effect. If there is an inconsistency
20
between any matter contained in the diagram or the accompanying
21
explanation in this section and a provision of this Act or the
22
regulations, the latter provision prevails.
23
24
25
1
2
3
4
5
6
(2) Energy
7
savings cannot be
directly measured, since the savings represent the absence of
8
energy use. Therefore energy savings are determined by comparing
9
measured energy use before and after any attempt at saving
10
energy. The energy used before the implementation of the energy
11
efficiency activity is referred to as the baseline. The energy used
12
after the implementation of the energy efficiency activity is the
13
post-retrofit energy use.
14
(3) The energy use before and after the implementation of the energy
15
efficiency activity may be adjusted for changes on conditions such
16
as weather and occupancy of fluctuations due to production levels
17
or economic circumstances. Such adjustments are described in
18
paragraph 30N(5)(d).
19
(4) Once a measured energy saving is quantified and accredited it is
20
eligible for certification. A certificate representing the measured
21
saving is known as an EEC.
22
(5) Eligible energy efficiency activities are those activities that can be:
23
(a) measured in units of MWh and MJ saved; and
24
(b) the measurement is capable of independent verification.
25
(6) The principles and procedures for measurement and verification of
26
the energy savings must:
27
(a) emphasise quality control, accuracy and consistency of
28
measurement and verification;
29
(b) be applied only to activities which are related to energy
30
saving;
31
(c) be defined by the system boundary, point of eligibility or
32
measurement at the site or facility level;
33
(d) be able to be outlined through documentary evidence and
1
comply with reporting requirements in the regulations;
2
(e) comply with an energy savings determination technique,
3
based upon available data of suitable quality; and
4
(f) be able to be disclosed through data and analysis enabling
5
energy savings to be independently verifiable.
6
(7) There are three methods of accrediting and quantifying the energy
7
efficiency activity set out in section 30U. Before the energy
8
efficiency activity can be accredited a method of quantifying
9
energy savings must be selected. The method selected must, in the
10
opinion of the Regulator, be consistent with the scope, the budget
11
and the administrative complexity of the energy efficiency activity.
12
(8) In this Division a reference to energy measured in MWh is also
13
taken to refer the equivalent amount of energy in MJ, and vice
14
versa.
15
Division 2--Provisional accreditation of an energy
16
efficiency activity
17
30J Application for provisional accreditation of an energy efficiency
18
activity
19
(1) A registered person may apply to the Regulator for provisional
20
accreditation of the proposed facility of an energy efficiency
21
activity that the person considers would, if implemented, be a single
22
energy efficiency activity.
23
Form of application
24
(2) The application must:
25
(a) be made in a form and manner required by the Regulator; and
26
(b) specify the proposed components; and
27
(c) list the eligible energy efficiency activity from which the
28
energy is intended to be saved; and
29
(d) contain any other information required by the Regulator; and
30
(e) be accompanied by any documents required by the Regulator;
31
and
32
(f) be accompanied by the fee (if any) prescribed by the
1
regulations for the making of applications for provisional
2
accreditation.
3
30K Regulator may give provisional accreditation of an energy
4
efficiency activity
5
(1) If:
6
(a) the Regulator receives an application that is properly made
7
under section 30J (about an application for provisional
8
accreditation of an energy efficiency activity); and
9
(b) the Regulator is satisfied that some or all of the proposed
10
components of the system would, if implemented, be an
11
eligible energy efficiency activity for the purposes of this Act;
12
the Regulator must, by written notice given to the applicant:
13
(c) specify which of those proposed components (provisional
14
energy efficiency components) would, if implemented, be an
15
eligible energy efficiency activity for the purposes of this Act;
16
and
17
(d) specify that, if an application is properly made under section
18
30M in relation to the energy efficiency activity:
19
(i) the Regulator will determine that the components
20
specified in that application are taken to be an energy
21
efficiency activity for the purposes of this Act if the
22
Regulator is satisfied that they are not materially
23
different from the provisional energy efficiency
24
components; and
25
(ii) the energy efficiency activity will be eligible for
26
accreditation if subsection 30M is satisfied.
27
Refusal
28
(2) If:
29
(a) the Regulator receives an application that is properly made
30
under section 30J; and
31
(b) the Regulator is not satisfied that some or all of the proposed
32
components of the system would, if assembled, be an eligible
33
energy efficiency activity for the purposes of this Act;
34
the Regulator must, by written notice given to the applicant, refuse
1
the application.
2
Regulations
3
(3) Regulations made for the purposes of section 30U, in relation to
4
determining the components of an eligible efficiency activity, apply
5
in a corresponding way to this section.
6
30L Time limit for deciding applications
7
(1) The Regulator must decide an application that is properly made
8
under section 30J within:
9
(a) the period of 8 weeks beginning on the day the Regulator
10
received the application; or
11
(b) if, before the end of that period, the Regulator and applicant
12
agree to a longer period--that longer period.
13
(2) If the Regulator has not decided the application within the period
14
applicable under subsection (1), the Regulator is taken, at the end of
15
that period, to have refused the application.
16
Division 3--Accreditation of eligible energy efficiency
17
activities
18
30M Application for accreditation
19
(1) A registered person may apply to the Regulator for accreditation of
20
eligible energy efficiency activities if the person:
21
(a) operates those activities (whether alone or together with one
22
or more other persons); or
23
(b) owns all, or a part, of those activities (whether alone or
24
together with one or more other persons).
25
(2) The application must:
26
(a) be made in a form and manner required by the Regulator; and
27
(b) specify the eligible energy efficiency activities; and
28
(c) specify each other person (if any) who:
29
(i) operates those activities (whether alone or together with
1
one or more other persons); or
2
(ii) owns all, or a part, of those activities (whether alone or
3
together with one or more other persons); and
4
(d) contain any other information required by the Regulator; and
5
(e) be accompanied by any documents required by the Regulator;
6
and
7
(f) be accompanied by the fee (if any) prescribed by the
8
regulations for the making of applications for accreditation;
9
and
10
(g) be accompanied by a statement in writing from each other
11
person (if any) specified under paragraph (c) indicating that
12
the other person agrees to the making of the application.
13
(3) The Regulator must enter details of the application on the register
14
of applications for accredited eligible energy efficiency activities.
15
30N Regulator to determine certain matters
16
(1) If the Regulator receives an application that is properly made under
17
section 30M, the Regulator must:
18
(a) determine which components of the facility are to be taken to
19
be an eligible energy efficiency activity for the purposes of
20
this Act; and
21
(b) determine whether the energy efficiency activity is eligible for
22
accreditation.
23
(2) If:
24
(a) the Regulator gave a person a notice under section 30J in
25
relation to the energy efficiency activity; and
26
(b) the Regulator is satisfied that the components specified in the
27
application under section 30J are not materially different from
28
the components specified under section 30J;
29
the Regulator must determine, under paragraph (1)(a) of this
30
section, that the components specified in the application under
31
section 30J are taken to be an energy efficiency activity for the
32
purposes of this Act.
33
(3) An energy efficiency activity is eligible for accreditation if:
34
(a) some or all of the energy savings are generated from the
1
energy efficiency activity; and
2
(b) the energy efficiency activity satisfies any prescribed
3
requirements.
4
(4) However, an energy efficiency activity is not eligible for
5
accreditation if the Regulator is satisfied that a previous
6
determination under paragraph (1)(a) should be varied to include
7
the components of the facility specified in the application for
8
accreditation.
9
(5) If the Regulator determines that the energy efficiency activity is
10
eligible for accreditation, the Regulator must also determine:
11
(a) any energy used by the facility that are not eligible energy
12
efficiency activities; and
13
(b) the baseline for the eligible energy efficiency activity; and
14
(c) the post-retrofit energy use for the eligible energy efficiency
15
activity; and
16
(d) the adjustments if any for the eligible energy efficiency
17
activity; and
18
(e) define the method of accreditation as being either through
19
deeming, certifying or verifying or a combination of methods.
20
(6) The Regulator must determine the matters specified in
21
paragraphs (1)(a) and (3)(a) in accordance with guidelines
22
prescribed in the regulations.
23
(7) To avoid doubt the regulations may provide detail of the method of
24
calculating energy savings, baseline and adjustments that are
25
integral to the operation of the facility or to the use of energy by the
26
facility.
27
30O Regulator to approve or refuse application
28
If the Regulator determines that a person is eligible for
29
accreditation, the Regulator must approve the application. In any
30
other case, the Regulator must refuse the application.
31
30P Time limit for deciding applications
1
(1) The Regulator must decide an application that is properly made
2
under section 30M within:
3
(a) the period of 8 weeks beginning on the day the Regulator
4
received the application; or
5
(b) if, before the end of that period, the Regulator and applicant
6
agree to a longer period--that longer period.
7
(2) If the Regulator has not decided the application within the period
8
applicable under subsection (1), the Regulator is taken, at the end of
9
that period, to have refused the application.
10
30Q Nominated person for accredited energy efficiency activity
11
If the Regulator approves an application, the applicant becomes the
12
nominated person for the accredited energy efficiency activity.
13
30R Regulator to allocate identification codes
14
If the Regulator approves an application, the Regulator must
15
allocate the facility a unique identification code and advise the
16
applicant of the code.
17
30S What is an eligible energy efficiency activity?
18
(1) An eligible energy efficiency activity is an activity that results in:
19
(a) the improvement in the service provided per unit of power
20
measured in MW or MJ, including activities which increase
21
unit output.
22
Note:
Examples of activities are traction, work, electricity, heat, light or
23
fuel.
24
(b) reduced energy consumption where the consumption is:
25
(i) reduced (as measured in MW or MJ) in relation to the
26
baseline; but
27
(ii) lower consumption as a result of lower activity shall not
28
be taken into consideration;
29
(c) improvements in energy performance as measured in units of
30
MWh and MJ;
31
(d) measured and verified units of MWh and MJ saved;
1
(e) related to demand for electricity, supply of electricity, or both;
2
(f) results in energy savings additional to savings that are realised
3
as a result of compliance with other legal obligations;
4
(g) an activity specified by in the regulations.
5
Regulations
6
(2) For the purposes of this Act, the regulations may provide that an
7
energy efficiency activity referred to in subsection (1) has the
8
meaning prescribed by the regulations.
9
(3) For the purposes of this Act, the regulations may make provision
10
for and in relation to limiting the meaning of an eligible energy
11
efficiency activity referred to in subsection (1).
12
Division 4--Creation of certificates
13
Subdivision I--Preliminary
14
30T Creating certificates for eligible and accredited energy efficiency
15
activities
16
(1) EECs are created according to the measurement and performance
17
of the Eligible Energy Efficiency Activity (EEEA) in accordance
18
with subsections (3), (4) and (5).
19
(2) Accreditation and assessment of the EEEA is by:
20
(a) deemed performance; or
21
(b) certified performance; or
22
(c) verified performance;
23
as set out in subsections (3), (4), (5).
24
Example: The following are examples of deeming, certification and verification:
25
(a)
replacement of appliances and equipment is likely to be
26
accredited and assessed by deemed performance;
27
(b)
industrial and commercial users are likely to be accredited
28
and assessed by certified performance;
29
(c)
major capital upgrades and investments are likely to be
30
accredited and assessed by verified performance.
31
Deemed performance
1
(3) An activity may be deemed as an energy efficiency activity eligible
2
for an EEC if it meets the criteria set out in the regulations which
3
must include the following:
4
(a) there is well documented statistical information supporting the
5
energy efficiency of the activity;
6
(b) the use of energy by the activity is sufficiently small;
7
(c) where the activity is subject to minimum energy performance
8
standards provided under relevant Commonwealth, State or
9
Territory legislation from time to time, the activity meets those
10
standards;
11
(d) a schedule of all activities which have been listed in the
12
regulations as energy efficiency activities.
13
Certified performance
14
(4) An activity may be certified as an energy efficiency activity
15
(certified performance), eligible for an EEC if it meets the criteria
16
set out in the regulations which must include the following:
17
(a) base year energy use normalised against economic activity or
18
production effect;
19
(b) a specific method developed for the activity which either
20
measures or simulates the measurement of energy use by the
21
activity;
22
(c) the energy savings can be replicated by a third party;
23
(d) a schedule of all activities which have been listed in the
24
regulations as certified energy efficiency activities.
25
Verified performance
26
(5) An activity may be verified as energy efficiency activity (verified
27
performance), eligible for an EEC if it meets the criteria set out in
28
the regulations which must include the following:
29
(a) there is little or no variation in energy consumption by the
30
activity;
31
(b) a schedule of all activities which have been verified as energy
32
efficiency activities;
33
(c) base year energy use normalised against economic activity or
1
production effect;
2
(d) a schedule of all activities which have been listed in the
3
regulations as verified energy efficiency activities.
4
Determination of energy efficiency savings
5
(6) The method used to determine the energy efficiency saving from
6
which the number of EECs is derived is to subtract the post-retrofit
7
energy use from the baseline as adjusted for variations in both the
8
baseline and post-retrofit energy use.
9
10
Baseline Method - General Equation:
11
Energy efficiency saving
Baseline energy use (+ or - adjustments)
Post-retrofit energy use (+ or - adjustments)
12
Establishing the baseline
13
(7) The method for establishing the baseline will vary depending on the
14
energy savings determination method. The baseline energy of the
15
deemed performance activities would be related to the physical
16
installation status of an activity rather than relating to baseline
17
energy use.
18
Example: A house which previously had no ceiling insulation is retrofitted with
19
insulation resulting in a deemed benefit over the lifetime of the
20
insulation. To reduce administration costs the deeming would be
21
scheduled for typical house construction, orientation, climate and
22
combined with a derating factor.
23
(8) The baseline energy use for accredited performance and verified
24
performance projects would be calculated using energy
25
consumption trends and other performance criteria and adjusted for
26
non-energy efficiency adjustments to reflect variations in demand
27
such as occupancy levels, installed equipment, weather or metering
28
errors.
29
Division 5--Energy efficiency activity
1
30U Creating certificates for eligible energy efficiency activities
2
(1) The nominated person for an accredited eligible energy efficiency
3
activity may create an EEC for each whole MWh of energy saved
4
by the eligible energy efficiency activity during a year that is above
5
the energy efficiency activity's baseline.
6
(2) An EEC must not be created in respect of a whole MWh of energy
7
saved partly in one year and partly in the following year.
8
(3) If the amount of energy saved by an accredited and eligible energy
9
efficiency activity during a year that is above the eligible energy
10
efficiency activity baseline is less than one MWh but greater than
11
or equal to 0.5 MWh, the nominated person for the eligible energy
12
efficiency activity may create one EEC in respect of the energy
13
saved during the year.
14
(4) The amount of energy savings by an accredited and eligible energy
15
efficiency activity is to be worked out in accordance with the
16
regulations.
17
(5) Energy savings to be excluded from all calculations under this
18
section include:
19
(a) energy savings from any energy saving activities that are not
20
eligible energy efficiency activities; or
21
(b) energy savings generated during any period of suspension of
22
the accreditation of the accredited and eligible energy
23
efficiency activity.
24
(6) The nominated person for an accredited and eligible energy
25
efficiency activity must not create any EEC during any period of
26
suspension of the person's registration.
27
30V When an EEC may be created
28
An EEC may be created at any time after the energy saving from
29
the eligible energy efficiency activity is realised in relation to which
30
it is created and before the end of the year after the year in which
31
it is realised.
32
30W How many certificates may be created
1
(1) The number of certificates (each representing one MWh energy
2
saving) that may be created in relation to an eligible energy
3
efficiency activity is to be determined in accordance with the rules
4
made by the Regulator.
5
(2) The rules made by the Regulator may make provision in relation to:
6
(a) the energy savings from the EEEA;
7
(b) calculation of the baseline for the calculation of the energy
8
savings and using energy consumption trends and other
9
performance criteria and adjusted for non-energy efficiency
10
variations in demand including occupancy levels, installed
11
equipment, weather or metering errors.
12
(c) application of any discount factor provided for in the
13
regulations to adjust for non-energy efficiency variations in
14
demand such as occupancy levels, installed equipment,
15
weather or metering errors.
16
(d) determination of the system boundary of the eligible energy
17
efficiency activity.
18
30X Who may create a certificate
19
(1) The owner of rights in relation to the EEEA, is entitled to create
20
any EEC, the creation of which becomes lawful while they are the
21
owner of those rights.
22
(2) However, the owner may, by written notice, and in accordance
23
with the rules made by the Regulator, assign the right to create the
24
EEC to another person. If the owner does this, the owner is not
25
entitled to create the EEC but the person to whom the right was
26
assigned is entitled to create the certificate or certificates.
27
(3) Despite subsections (1) and (2) a person who is not registered must
28
not create a certificate that relates to the deemed energy efficiency
29
activity.
30
30Y Energy efficiency and energy savings return
1
(1) The nominated person for an accredited eligible energy efficiency
2
activity must give an energy efficiency and savings return for a
3
year to the Regulator on or before:
4
(a) 14 February in the following year; or
5
(b) any later day allowed by the Regulator.
6
(2) The return must include details of:
7
(a) the amount of energy savings generated by the eligible energy
8
efficiency activity during the year; and
9
(b) the amount of that energy savings generated eligible energy
10
efficiency activities; and
11
(c) the number of EECs created during the year in respect of the
12
energy savings generated by the eligible energy efficiency
13
activity during the year; and
14
(d) the number of EECs created during the year in respect of any
15
energy savings generated by the eligible energy efficiency
16
activities during the previous year; and
17
(e) any other information specified by the regulations;
18
and must be in the form specified by the regulations.
19
30Z Amending energy efficiency and savings returns
20
(1) The Regulator may amend an energy efficiency and savings return
21
if the nominated person for the accredited eligible energy efficiency
22
activities concerned requests, in writing, an amendment within 12
23
months of the energy efficiency and savings return being given.
24
(2) The Regulator may also amend an energy efficiency and savings
25
return on his or her own initiative if the amendment is made within
26
4 years of the return being given.
27
(3) If the Regulator refuses to amend an energy efficiency and savings
28
return upon a request by a nominated person for accredited eligible
29
energy efficiency activities, the Regulator must notify the person
30
accordingly.
31
Division 6--Improper creation of certificates
1
30ZA Improper creation of EECs--offences
2
(1) A person is guilty of an offence if:
3
(a) the person creates an EEC; and
4
(b) the person is not entitled to create the EEC.
5
Penalty: 1 penalty unit.
6
(2) Subsection (1) is an offence of strict liability.
7
Note 1:
Chapter 2 of the Criminal Code sets out the general principles of
8
criminal responsibility and Chapter 3 of the Criminal Code contains
9
general principles relating to penalties.
10
Note 2:
For strict liability, see section 6.1 of the Criminal Code.
11
(3) To avoid doubt, a penalty may be imposed in respect of each EEC
12
in respect of which a person is guilty of an offence.
13
Example: An individual who commits an offence under subsection (1) by
14
creating 20 EECs that the individual was not entitled to create would
15
be subject to a maximum penalty of 20 penalty units. If the offence
16
were under subsection (3), the individual would be subject to a
17
maximum penalty of 100 units.
18
(5) In determining whether a person was not entitled to create an EEC,
19
the fact that the EEC has been registered by the Regulator under
20
section 26 is to be disregarded.
21
Note:
This ensures that a person cannot raise as relevant evidence the fact
22
that an EEC has been registered.
23
Division 7--Form and registration of certificates
24
30ZB Form and content of certificates--eligible energy efficiency
25
activity
26
(1) Certificates issued under Division 4 are to be created in an
27
electronic form approved in writing by the Regulator.
28
(2) Each certificate is to contain:
29
(a) the registered person's registration number; and
30
(b) the year; and
31
(c) a number in an unbroken sequence that is used for all
1
certificates created in respect of the eligible energy efficiency
2
activity concerned in that year and that starts at one and has
3
increments of one; and
4
(d) the electronic signature of the registered person who created
5
the certificate; and
6
(e) the date on which the eligible energy efficiency activity
7
concerned was installed; and
8
(f) details of the eligible energy efficiency activity in respect of
9
which the certificate was created; and
10
(g) the date on which the certificate was created.
11
4 Heading to Division 9 of Part 2
12
After "station", insert "or eligible energy efficiency activity".
13
5 Section 30B
14
After "power station" (wherever occurring), insert "or eligible energy
15
efficiency activity".
16
6 Heading to Division 10 of Part 2
17
After "station", insert "or eligible energy efficiency activity"
18
7 Section 30C
19
After "power station" (wherever occurring), insert "or eligible energy
20
efficiency activity".
21
8 Heading to Division 11 of Part 2
22
After "station", insert "or eligible energy efficiency activity"
23
9 Section 30D
24
After "power station" (wherever occurring), insert "or eligible energy
25
efficiency activity".
26
10 After section 30E
27
Insert:
28
30EA Suspending the accreditation of an energy efficiency activity
1
Failure to give an electricity generation return
2
(1) The Regulator may, by written notice, suspend the accreditation of
3
an accredited energy efficiency activity if an energy efficiency
4
generation return for a year, in respect of the energy efficiency
5
activity, has not been given to the Regulator in accordance with
6
section 20.
7
(2) The accreditation is suspended until the return is given to the
8
Regulator in accordance with that section. The notice must include
9
a statement to that effect.
10
Contravention of Commonwealth, State or Territory law
11
(3) The Regulator may, by written notice, suspend the accreditation of
12
an accredited energy efficiency activity if the Regulator believes on
13
reasonable grounds that the energy efficiency activity is being
14
operated in contravention of a law of the Commonwealth, a State
15
or a Territory.
16
(4) The accreditation is suspended until the Regulator believes on
17
reasonable grounds that the energy efficiency activity is not being
18
operated in contravention of that law. The notice must include a
19
statement to that effect.
20
Other circumstances
21
(5) The Regulator may, by written notice, suspend the accreditation of
22
an accredited energy efficiency activity in any other circumstances
23
prescribed by the regulations.
24
(6) The accreditation is suspended for such period (including
25
permanently) as the Regulator considers appropriate in all of the
26
circumstances. That period must be specified in the notice.
27
Note:
Any electricity generated by the power station while its accreditation
28
is suspended under this section is to be excluded from all calculations
29
under section 18: see subsection 18(4).
30
11 After Division 12 of Part 2
31
Insert:
32
Division 12A--Varying eligible energy efficiency activity
1
baseline
2
30G Varying an eligible energy efficiency activity
3
(1) The Regulator may, by written determination, vary the baseline for
4
an accredited energy efficiency activity in the circumstances
5
prescribed by the regulations.
6
(2) The regulations may make provision for the baseline for an
7
accredited energy efficiency activity to be varied if an action or
8
policy of the Commonwealth Government reduces the effect of the
9
energy efficiency activity for a sustained period.
10
(3) Subsection (2) does not limit subsection (1).
11
Increase in baseline
12
(4) If a determination increases the baseline for an accredited energy
13
efficiency activity, the determination has effect only for the years
14
following the year in which the determination is made.
15
Decrease in baseline
16
(5) If a determination decreases the baseline for an accredited energy
17
efficiency activity, the determination has effect for the year or
18
years specified in the determination.
19
12 Heading to Part 4
20
After "energy", insert "and energy efficiency".
21
13 At the end of section 36
22
Add:
23
(4) Subject to subsection (2), if a liable entity has an energy efficiency
24
certificate shortfall for a year, energy efficiency shortfall charge is
25
payable in respect to the shortfall.
26
(5) No energy efficiency shortfall charge is payable by a liable entity
27
for a year if its energy efficiency certificate shortfall for the year is
28
less than 10% of the liable entity's required energy efficiency for
29
the year. However, the energy efficiency certificate shortfall
1
becomes a carried forward shortfall for the year.
2
(6) Energy efficiency shortfall charge imposed in respect of a liable
3
entity's energy efficiency certificate shortfall for a year is payable
4
by the liable entity.
5
14 After section 37
6
Insert:
7
37A Amount of energy efficiency certificate charge
8
The amount of energy efficiency charge payable by a liable entity is
9
worked out using the formula:
10
11
Energy efficiency certificate shortfall
rate of charge
12
where:
13
rate of charge is the rate of charge as specified under the
14
Renewable Energy (Electricity) (Charge) Act 2000 and the
15
National Mandatory Energy Efficiency Target (Charge) Act
16
2000.
17
15 After section 38
18
Insert:
19
38A Determination of energy efficiency certificate shortfall
20
The following method statement shows how to work out a liable
21
entity's energy efficiency certificate shortfall for a year.
22
Method statement--working out the energy efficiency
23
shortfall
24
Step 1. Work out the total amount, in MWh, of energy used by
25
the liable entity during the year under relevant
26
acquisitions.
27
Step 2. Multiple the total electricity acquired by the energy
1
efficiency percentage for the year and round the result to
2
the nearest (rounding 0.5 upwards). Add to the result any
3
carried forward shortfall from the previous year. The
4
result is the liable entity's required energy efficiency
5
savings for the year.
6
Step 3. Subtract the total value, in MWh, of energy efficiency
7
certificates surrendered to the Regulator for that year by
8
the liable entity from the required energy efficiency for
9
the year.
10
Result: If the result is greater than zero, the liable entity has an
11
energy efficiency certificate shortfall for the year equal
12
to the result.
13
If the result is zero, the liable entity does not have a
14
energy efficiency certificate shortfall for the year.
15
If the result is less than zero, the liable entity has a
16
carried forward surplus for the year.
17
16 After Division 2 of Part 4
18
Insert:
19
Division 2A--Energy efficiency target percentage
20
40A Regulations to specify energy efficiency target percentage
21
(1) The annual energy efficiency target for a year is the percentage
22
specified in the regulations. The regulation specifying a percentage
23
for a year must be made on or before 31 March in the year.
24
(2) For the year commencing on 1 January 2008 the energy efficiency
25
target is to be set at 1.0%.
26
(3) For the year commencing on 1 January 2009 the energy efficiency
27
target is to be set at 2.0%.
28
(4) Before the Governor-General makes a regulation under
1
subsection (1), the Minister must take into consideration:
2
(a) the required energy efficiency improvement opportunity for
3
the year; and
4
(b) the amount estimated as the amount of electricity that will be
5
acquired under relevant acquisitions during the year; and
6
(c)the amount of energy efficiency saving as an accumulative
7
percentage toward the energy efficiency target of 20% by
8
2020.
9
(5) A failure to comply with subsection (4) does not affect the validity
10
of the regulations.
11
17 Heading to Division 3 of Part 4
12
After "energy", insert "and energy efficiency".
13
18 Section 41
14
After "energy" (wherever occurring), insert "and energy efficiency".
15
19 Section 44
16
After "renewable energy certificates" (wherever occurring), substitute
17
"or energy efficiency certificates".
18
20 At the end of section 45
19
Add:
20
(d) a renewable energy certificate can only be surrendered
21
against a renewable energy liability and an energy efficiency
22
certificate can only be surrendered against an energy
23
efficiency liability.
24
21 Heading to section 46
25
After "energy shortfall", insert "or energy efficiency shortfall".
26
22 Section 46
27
After "energy shortfall" (wherever occurring), insert "or energy
28
efficiency shortfall".
29
23 After section 47
1
Insert:
2
47A First energy efficiency shortfall charge statement for year taken
3
to be assessment
4
If:
5
(a) a liable entity lodges an energy efficiency shortfall statement
6
for a year; and
7
(b) an EEC shortfall statement has not previously been lodged,
8
and an assessment has not previously been made for the year
9
in relation to the liable entity;
10
then:
11
(c) the statement has effect as an assessment of the liable
12
entity's EEC shortfall for the year and of the energy
13
efficiency shortfall charge (if any) payable on the shortfall;
14
and
15
(d) the assessment is taken to have been made on 14 February in
16
the following year or the day on which the statement was
17
lodged, whichever is the later; and
18
(e) the EEC shortfall specified in the statement is taken to be the
19
liable entity's energy efficiency certificate shortfall for the
20
year; and
21
(f) the amount of EEC shortfall charge (if any) specified in the
22
statement is taken to be the amount of EEC shortfall charge
23
payable by the liable entity for the year; and
24
(g) the statement has effect as if it were a notice of assessment
25
signed by the Regulator and given to the liable entity on the
26
day on which the assessment is taken to have been made.
27
24 Section 48
28
After "energy shortfall" (wherever occurring), insert "or energy
29
efficiency shortfall".
30
25 Section 48
31
After "energy certificate" (wherever occurring), insert "or energy
32
efficiency certificate".
33
26 Section 49
1
After "energy shortfall" (wherever occurring), insert "or energy
2
efficiency shortfall".
3
27 Subsection 50(1)
4
After "energy shortfall", (wherever occurring), insert "or energy
5
efficiency shortfall".
6
28 Section 65
7
After "energy shortfall", insert "or energy efficiency shortfall".
8
29 Subsection 66(1) (table)
9
Insert:
10
11
Table of reviewable decisions
Item
For a decision ...
made under ...
the affected person is ...
2A
in relation to an application
for accreditation of an
eligible energy efficiency
activity
section 14
the applicant for
accreditation.
3B
to refuse to accredit an
eligible energy efficiency
activity
section 15
the applicant for
accreditation.
3C
to amend, or to refuse to
amend, an energy
efficiency generation
return
section 20A
the nominated person for
the accredited eligible
energy efficiency activity.
5F
to refuse to approve a
person as the nominated
person for an accredited
eligible energy efficiency
activity
section 30B
the person.
5G
to vary, or to refuse to
vary, a determination under
paragraph 14(1)(a)
section 30C
the nominated person for
the accredited eligible
energy efficiency activity
concerned.
Table of reviewable decisions
Item
For a decision ...
made under ...
the affected person is ...
5H
to suspend the
accreditation of an
accredited eligible energy
efficiency activity
section 30D or
30E
the nominated person for
the eligible energy
efficiency activity.
5D
to vary the eligible energy
efficiency activity baseline
for an accredited eligible
energy efficiency activity
section 30F
the nominated person for
the eligible energy
efficiency activity.
30 After section 67
1
Insert:
2
67A Collection and recovery of energy efficiency shortfall charge etc.
3
The provisions of Divisions 1 and of 2 of Part 7 relating to
4
collection and recovery of charge apply to the energy efficiency
5
shortfall charge, and all references in that Part to charge and
6
energy shortfall charge shall be read as references to the energy
7
efficiency shortfall charge for the purpose of this Part.
8
31 After section 95
9
Insert:
10
95A Refunding energy efficiency shortfall charge in later years
11
The provisions of Part 8 relating to refunding of charge apply to the
12
refunding of the energy efficiency shortfall charge, and all
13
references in that Part to charge or energy shortfall charge shall be
14
read as references to the energy efficiency shortfall charge for the
15
purposes of this Part.
16
32 After section 99
17
Insert:
18
99A Penalty charge etc.
1
The provisions of Part 9 relating to penalty charge apply to the
2
energy efficiency shortfall charge, and all references in that Part to
3
charge or energy shortfall charge shall be read as references to the
4
energy efficiency shortfall charge for the purposes of this Part.
5
33 Section 134
6
After "renewable energy" (wherever occurring), insert " or energy
7
efficiency".
8
34 At the end of section 135
9
Add:
10
(e) the register of accredited eligible energy efficiency activities;
11
(f) the register of energy efficiency certificates;
12
(g) the register of applications for accredited eligible energy
13
efficiency activities.
14
35 After section 138
15
Insert:
16
138A Contents of register of accredited eligible energy efficiency
17
activities
18
The register of accredited eligible energy efficiency activities is to
19
contain:
20
(a) the name of each accredited eligible energy efficiency
21
activity; and
22
(b) the name of the nominated person for the accredited eligible
23
energy efficiency activity; and
24
(c) the identification code for each accredited eligible energy
25
efficiency activity; and
26
(ca) the baseline for each eligible energy efficiency activity
27
(including any variation of that baseline under section 30F);
28
and
29
(d) any other information that the Regulator considers
30
appropriate.
31
36 Section 140
1
After "certificate" (wherever occurring), insert "and energy efficiency
2
certificate".
3
37 After paragraph 140(da)
4
Insert:
5
(db) the eligible energy efficiency activity in respect of which the
6
certificate was created; and
7
38 After section 141A
8
Insert:
9
141AB Contents of register of applications for accredited eligible
10
energy efficiency activities
11
The register of applications for accredited eligible energy efficiency
12
activities is to contain:
13
(a) the name of each applicant for an accredited eligible energy
14
efficiency activity; and
15
(b) the location of the eligible energy efficiency activity; and
16
(c) the eligible energy efficiency activity type or accreditation
17
methodology proposed to be used by the eligible energy
18
efficiency activity; and
19
(d) any other information that the Regulator considers
20
appropriate.
21
39 Heading to Part 14
22
After "Energy" (twice occurring), insert "and Energy Efficiency".
23
40 Heading to Division 1 of Part 14
24
After "Energy", insert "and Energy Efficiency".
25
41 Heading to Division 2 of Part 14
26
After "Energy", insert "and Energy Efficiency".
27
42 Section 149
28
After "energy" (twice occurring), insert "and energy efficiency".
29
43 Section 150
1
Repeal the section, substitute:
2
150 Functions
3
The functions of the Office of the Renewable Energy and Energy
4
Efficiency Regulator are to:
5
(a) assist the Regulator in performing the Regulator's functions;
6
and
7
(b) assist the Regulator with the administration of the energy
8
efficiency target percentage.
9

 

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