Commonwealth of Australia Explanatory Memoranda

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

                                   2010-2011-2012


        THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                          HOUSE OF REPRESENTATIVES




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




              SUPPLEMENTARY EXPLANATORY MEMORANDUM



                Amendments to be moved on behalf of the Government




   (Circulated by authority of the Minister for Climate Change and Energy Efficiency,
                         the Honourable Greg Combet AM MP)
ITEMS 80a, 80b and 80c - CLARIFYING THE INTERIM EMISSIONS NUMBERS FOR
FACILITIES

Items 80a, 80b and 80c amend paragraphs 126(2)(a) and (b) and subsection 126(4) of the
Clean Energy Act 2011 to confirm that, subject to section 127, all liable entities for facilities
will have an interim emissions number in 2012-13 and subsequent fixed price years and will,
therefore, have a provisional surrender obligation in those years. The amendments remove
any potential ambiguity in the drafting and do not change the policy in those provisions.

The amendments make it clear that an interim emissions number is not dependent on a
provisional emissions number for a facility arising under a particular provision of the Clean
Energy Act 2011 for two consecutive years, but that a provisional emissions number for a
facility may arise under different provisions of Division 2, Part 3 of the Clean Energy Act
2011 with respect to those years. For example holders of a liability transfer certificate (LTC)
and participants in declared designated joint ventures will have an interim emissions number
in the first year they are issued with LTCs or become participants in declared designated joint
ventures.

ITEM 80d - ADJUSTMENT OF TOTAL INTERIM EMISSIONS NUMBERS

Item 80d amends subparagraphs 127(1)(d)(ii) and (iii) of the Clean Energy Act 2011 to
ensure consistency with the drafting in the new paragraphs 126(2)(a) and (b) and subsection
126(4) (see above). These amendments do not alter the policy intent of section 127 of the
Clean Energy Act 2011, which is to provide that a provisional surrender will not be required
concerning direct emissions from facilities that:
           ·   were not required to provide a report under the National Greenhouse and
               Energy Reporting Act 2007 for the previous financial year (noting that this
               exception does not apply to natural gas suppliers, which will be required to
               make a progressive payment for supplies of natural gas);

           ·   had covered emissions of less than 35,000 tonnes of CO2 equivalent
               greenhouse gases in the previous financial year; or

           ·   are reasonably expected to have covered emissions of less than 35,000 tonnes
               of CO2 equivalent greenhouse gases in the current financial year.