Commonwealth Numbered Regulations Commonwealth Numbered Regulations
Renewable Energy (Electricity) Regulations 2001
1 Subregulation 22A(1)
Insert:
"certifiable amount " has the meaning given by subregulation 22ZHC(2).
"electricity use method advice " has the meaning given by paragraph 22O(1)(i).
"limited assurance conclusion " has the same meaning as in the National Greenhouse and Energy Reporting (Audit) Determination 2009 .
"reasonable assurance conclusion " has the same meaning as in the National Greenhouse and Energy Reporting (Audit) Determination 2009 .
2 Subregulation 22A(1) (subparagraph (a)(i) of the definition of relevant product )
Omit "as the basis for the issue of the certificate".
3 Subregulation 22A(1)
Insert:
"use amount " for a liable entity has the meaning given by paragraph 22ZHC(2)(a).
4 Subregulation 22E(2)
After "activity", insert "or activities".
5 Subregulation 22E(3)
After "for a year,", insert "an estimate of".
6 Subregulation 22E(3)
Omit "1 October in the year", substitute "30 March in the year after the year".
7 Paragraph 22G(c)
Omit "the liable entity", substitute "a liable entity".
8 Regulation 22L (heading)
Repeal the heading, substitute:
22L Prescribed person--liable entity changes (production calculation method)
9 After paragraph 22L(1)(a)
Insert:
(aa) the amount of the exemption is worked out under Division 5 (production calculation method); and
10 After regulation 22L
Insert:
22LA Prescribed person--liable entity changes (electricity use method)
If:
(a) a prescribed person has been granted an exemption certificate in relation to an emissions-intensive trade-exposed activity, site and year; and
(b) the amount of the exemption is worked out under Division 5A (electricity use method); and
(c) during the year, the liable entity set out in the certificate (the old liable entity ) ceases to be a liable entity in relation to electricity consumed at the site; and
(d) another entity (the new liable entity ) begins to be a liable entity in relation to electricity consumed at the site instead of the old liable entity; and
(e) the prescribed person applies again under subsection 46A(1) of the Act before the end of the year in relation to the activity, site, year and new liable entity;
then the prescribed person is a prescribed person for the activity, site, year and new liable entity.
11 Regulation 22M (heading)
Repeal the heading, substitute:
22M Prescribed person--multiple liable entities (production calculation method)
12 After paragraph 22M(a)
Insert:
(aa) the amount of the exemption is worked out under Division 5 (production calculation method); and
13 After regulation 22M
Insert:
22MA Prescribed person--multiple liable entities (electricity use method)
If:
(a) a prescribed person has been granted one or more exemption certificates, in relation to an emissions-intensive trade-exposed activity, site, year and one or more liable entities (an earlier liable entity ); and
(b) the amount or amounts of the exemptions is worked out under Division 5A (electricity use method); and
(c) during the year, an entity (an added liable entity ) begins to be a liable entity in relation to electricity consumed at the site in addition to the earlier liable entities; and
(d) the prescribed person has not been, and has not applied to be, a prescribed person under regulation 22LA for the activity, site, year and the added liable entity; and
(e) the prescribed person applies again under subsection 46A(1) of the Act before the end of the year in relation to the activity, site, year and the added liable entity;
then the prescribed person is a prescribed person for the activity, site, year and added liable entity.
14 Paragraph 22O(1)(e)
After "activity" (wherever occurring), insert "or activities".
15 Paragraph 22O(1)(f)
Before "an explanation", insert "if the amount of the exemption is to be worked out under Division 5 (production calculation method)--".
16 Paragraph 22O(1)(g)
Before "a statement", insert "if the amount of the exemption is to be worked out under Division 5 (production calculation method)--".
17 At the end of subregulation 22O(1)
Add:
; (h) if the amount of the exemption is to be worked out under Division 5A (electricity use method):
(i) the names of the liable entity or entities to which the application relates; and
(ii) for each activity identified in the application--an estimate of the amount or volume of relevant product identified in the application and referrable to the site; and
(iii) if the applicant considers that metering data should be used (whether alone or as part of a formula with other elements) to identify the use amount for a liable entity to which the application relates--identifying information for the meters supplying the data, including the National Metering Identifier (if any) for each such meter within the meaning of the National Electricity Rules;
(i) if the amount of the exemption is to be worked out under Division 5A (electricity use method)--the following information (the electricity use method advice ):
(i) whether the applicant considers that metering data is sufficient and appropriate to identify the use amount for a liable entity to which the application relates, and why or why not;
(ii) if the applicant considers that metering data is not sufficient or not appropriate to identify the use amount for a liable entity--the formula that, having regard to the Regulator's object set out in subregulation 22ZHC(5), the applicant considers would be appropriate to identify the use amount, and an explanation of the elements of the proposed formula and why it would be appropriate.
18 At the end of subregulation 22O(2)
Add:
; (g) whether the prescribed person intends to apply to be a prescribed person under regulation 22MA in relation to the activity, site and year in respect of an added liable entity (within the meaning of that regulation) at the site.
19 Regulation 22P
Repeal the regulation.
20 Before subregulation 22Q(1)
Insert:
(1A) This regulation applies to an application for an exemption certificate in relation to an activity and a site, if:
(a) the amount of the exemption is to be worked out under Division 5 (production calculation method) and the site meets the criteria for a new entrant specified in subregulation 22ZD(3); or
(b) the amount of the exemption is to be worked out under Division 5A (electricity use method) and the activity was not carried on at that site in the year before the year for which the application is made.
21 Subregulation 22Q(1)
Omit "An application under subsection 46A(1) of the Act for a site that meets the criteria for a new entrant specified in subregulation 22ZD(3)", substitute "The application".
22 At the end of regulation 22R
Add:
(3) This regulation does not apply to an application if the amount of the exemption applied for is to be worked out under Division 5A (electricity use method).
23 Regulation 22S (heading)
Repeal the heading, substitute:
22S Information to be included for person prescribed under regulation 22L or 22LA
24 Subregulation 22S(1)
After "subregulation 22L(1)", insert "or regulation 22LA".
25 Paragraph 22S(1)(a)
After "paragraph 22L(1)(b)", insert "or 22LA(c)".
26 Paragraph 22S(1)(b)
After "paragraph 22L(1)(c)", insert "or 22LA(d)".
27 Regulation 22T (heading)
Repeal the heading, substitute:
22T Information to be included for person prescribed under regulation 22M or 22MA
28 Regulation 22T
After "regulation 22M", insert "or 22MA".
29 Paragraph 22T(b)
Repeal the paragraph, substitute:
(b) provide evidence that the liable entities specified in the certificates mentioned in regulation 22M or 22MA have been informed of the application.
30 Regulation 22U
Repeal the regulation.
31 Subdivision BA of Division 4 of Part 3A (heading)
Repeal the heading, substitute:
32 Before paragraph 22UA(2)(a)
Insert:
(aa) for which the amount of the exemption applied for is to be worked out under Division 5 (production calculation method); and
33 Subregulations 22UA(3), (3A), (4) and (5)
Repeal the subregulations.
34 Paragraph 22UB(2)(c)
Omit "or 3".
35 Subregulations 22UB(3) and (3A) (note)
Repeal the notes.
36 Regulation 22UD
Repeal the regulation.
37 After Subdivision BA of Division 4 of Part 3A
Insert:
22UF Application of this Subdivision
This Subdivision is made:
(a) for the purposes of paragraph 46A(2)(bb) of the Act; and
(b) in relation to an application for an exemption certificate for which the amount of the exemption is to be worked out under Division 5A (electricity use method).
22UG When an audit report is required
Applicant using electricity use method for first time
(1) An application for a year, in relation to a site, must be accompanied by an audit report if:
(a) the applicant has not previously made an application in relation to the site for which the amount of the exemption applied for is to be worked out under Division 5A (electricity use method); and
(b) the total amount of exemptions applied for in the application is likely to exceed 15,000 MWh.
Every 3 years
(2) An application for a year, in relation to a site, must also be accompanied by an audit report if:
(a) the year is at least 2 years after the last year for which an application made by the applicant in relation to the site was accompanied by an audit report required under this regulation; and
(b) the total amount of exemptions applied for in the application is likely to exceed 15,000 MWh.
On request
(3) An application for a year, in relation to a site, must also be accompanied by an audit report if the Regulator has given the applicant a notice in writing for the year and the site in accordance with subregulation (4).
(4) For the purposes of subregulation (3), the Regulator may give a person a written notice, for a year and a site, requiring an application by the person for the year to be accompanied by an audit report, if the Regulator is satisfied that the method for working out the amount of a liable entity's exemption for the year in relation to the site is likely to be materially different from the method used to work out the amount of a liable entity's exemption in relation to the site for the previous year.
22UH Requirements for audit report
(1) The audit report must be prepared by a registered greenhouse and energy auditor (within the meaning of the National Greenhouse and Energy Reporting Act 2007 ) who is:
(a) registered as a Category 2 auditor under the National Greenhouse and Energy Reporting Regulations 2008 ; and
(b) for whom no conflict of interest situation (within the meaning of those Regulations) exists in relation to the applicant.
(2) The auditor must ensure that the audit to which the report relates is conducted in accordance with the applicable requirements under the National Greenhouse and Energy Reporting (Audit) Determination 2009 for assurance engagements.
(3) The audit report must set out the auditor's reasonable assurance conclusion as to whether:
(a) the activities set out in the application that are claimed to be an emissions-intensive trade-exposed activity comply, in all material respects, with each of the requirements in the description of the activity set out in Schedule 6; and
(b) the application presents fairly, in all material respects, the electricity use method advice (see paragraph 22O(1)(i)); and
(c) the electricity use method advice is reasonable, and in all material respects is not likely to result in including an amount of electricity that is not a use amount.
38 Regulation 22X (heading)
Repeal the heading, substitute:
39 Before subregulation 22X(1)
Insert:
(1AA) This regulation applies in relation to an application for an exemption certificate, for a year, if the amount of the exemption is to be worked out under Division 5 (production calculation method).
40 After regulation 22X
Insert:
(1) This regulation applies in relation to an application for an exemption certificate, for a year, if the amount of the exemption is to be worked out under Division 5A (electricity use method).
(2) If the applicant is a prescribed person mentioned in regulation 22G, 22H, 22I, 22J or 22K, the application must be lodged during the period:
(a) starting on 1 August of the previous year; and
(b) ending on 30 March of the year.
(3) If the applicant is a prescribed person mentioned in regulation 22LA or 22MA, the application must be lodged by the end of the year.
41 Regulation 22Y
Repeal the regulation, substitute:
22Y Manner and form of lodging
An application under subsection 46A(1) of the Act must be lodged with the Regulator in a manner and form specified by the Regulator on the Regulator's website.
42 Division 5 of Part 3A (heading)
Repeal the heading, substitute:
43 After subregulation 22Z(1)
Insert:
(1A) This Division does not apply for working out the amount of a liable entity's exemption if Division 5A applies.
Note: Division 5A applies for 2020 and later years. Division 5A may apply in some cases for 2018 and 2019 as well. See regulation 22ZHA.
44 After Division 5 of Part 3A
Insert:
Division 5A -- Method for working out amount of exemption: electricity use method
22ZHA Application of this Division
(1) This Division applies for the purposes of working out the amount of a liable entity's exemption, in relation to an emissions-intensive trade-exposed activity and a site, for 2020 and later years.
(2) This Division also applies for the purposes of working out the amount of a liable entity's exemption, in relation to an emissions-intensive trade-exposed activity and a site, for a year before 2020, if:
(a) the application for the exemption certificate for the year indicates that the applicant chooses for this Division to apply instead of Division 5; or
(b) a previous application for an exemption certificate for the year, in relation to any activity carried on at the site (whether or not made by the same applicant or for the same liable entity) indicated that the applicant chose for this Division to apply instead of Division 5; or
(c) both:
(i) the site is part of an activity group; and
(ii) a previous application for an exemption certificate for the year, in relation to any activity carried on at any site that is part of the activity group (whether or not made by the same applicant or for the same liable entity) indicated that the applicant chose for this Division to apply instead of Division 5; or
(d) the activity was prescribed as an emissions-intensive trade-exposed activity within the meaning of these Regulations on or after the day this regulation commenced; or
(e) the year is 2019 and the total electricity consumed at the site in 2018 was more than 2,000 GWh; or
(f) the year is 2019 and the amount of the exemption in an exemption certificate issued for 2018 in relation to any activity carried on at the site was worked out under this Division.
22ZHB When electricity is consumed in carrying on an activity
For the purposes of this Division, electricity is only consumed in carrying on an emissions-intensive trade-exposed activity if:
(a) every aspect of the activity as described in Schedule 6 is carried on at the site; or
(b) aspects of the activity are carried on at different sites and all of those sites together constitute an activity group within the meaning of subregulation 22A(9).
22ZHC Method for working out amount of exemption
(1) For the purposes of paragraph 46B(4)(a) of the Act, this regulation prescribes the method for working out, for a liable entity in relation to which an application for an exemption certificate is made, the amount of the liable entity's exemption for a year, in relation to the emissions-intensive trade-exposed activity or activities, and the site, specified in the application.
(2) Unless subregulation (3) applies, the method is:
(a) to use metering data to identify the amount of electricity consumed at the site in the year that is:
(i) acquired by, or from, the liable entity under a relevant acquisition; and
(ii) consumed in carrying on the activity or activities;
(the use amount for the liable entity); and
(b) to adjust the use amount by adding or subtracting an amount to reflect:
(i) any changes to the exemption amount in an exemption certificate (within the meaning of subsection 38B(2) of the Act) in relation to the previous year that resulted from changes to the final settlement data issued by AEMO; and
(ii) any errors in metering data used to identify the exemption amount in an exemption certificate in relation to the previous year; and
(c) if the result is not a whole MWh--to round the result down to the nearest whole MWh.
This is the certifiable amount .
(3) If the Regulator is satisfied that metering data is not sufficient, or not appropriate, to identify the use amount for the liable entity, the Regulator may instead specify in the certificate a formula, determined by the Regulator, as the method to be used to identify the use amount for the liable entity.
Note: The formula may or may not use metering data, as well as having other elements based on data from a site.
(4) The metering data used in a method may be:
(a) data for the year; or
(b) if the Regulator is satisfied that a reasonable approximation of the use amount can be obtained by using data for a 12 month period determined by the Regulator that includes at least 3 quarters in the year--data for that 12 month period.
(5) In deciding on a method for the purposes of this regulation, the Regulator's object must be to choose the method that will most accurately identify the use amount for a liable entity, having regard to:
(a) the instrument titled Emissions-Intensive Trade-Exposed Activity Boundaries , as existing from time to time; and
(b) the practicalities of giving effect to the method; and
(c) any other matters the Regulator considers relevant.
22ZHD Notice of certifiable amount
As soon as practicable after a certifiable amount is determined in accordance with the method specified or described in an exemption certificate, the Regulator must give written notice of the amount:
(a) to the applicant for the certificate; and
(b) if the applicant consents to the Regulator doing so--to the liable entity to which the certificate relates.
45 Paragraph 22ZJ(d)
After "activity", insert "or activities".
46 Paragraph 22ZJ(g)
Before "the amount", insert "if the amount of the exemption is worked out under Division 5 (production calculation method)--".
47 Paragraph 22ZJ(h)
Before "the percentage", insert "if the amount of the exemption is worked out under Division 5 (production calculation method)--".
48 After paragraphs 22ZL(1)(a) and (2)(a)
Insert:
(aa) the amount of the exemption is worked out under Division 5 (production calculation method); and
49 Subparagraph 22ZL(2)(d)(ii)
Omit "45", substitute "60".
50 At the end of regulation 22ZL
Add:
(3) If a prescribed person has applied under subsection 46A(1) of the Act for an exemption certificate and the amount of the exemption is worked out under Division 5A (electricity use method), the Regulator must issue the exemption certificate within the period of 60 days after the later of:
(a) the day the application was received; or
(b) if the Regulator sought further information in respect of the application--the day the further information was received.
51 Paragraph 22ZN(2)(b)
Before "whether", insert "if the amount of the exemption is worked out under Division 5 (production calculation method)--".
52 After paragraph 22ZN(2)(b)
Insert:
(ba) if the amount of the exemption is worked out under Division 5A (electricity use method)--whether the amendment would result in the certificate better giving effect to the requirements of Division 5A;
53 Regulation 22ZP (heading)
Repeal the heading, substitute:
22ZP Circumstance--if change of liable entity (regulation 22L applies)
54 After regulation 22ZP
Insert:
22ZPA Circumstance--if change of liable entity (regulation 22LA applies)
If:
(a) an exemption certificate (the first certificate ) is issued in relation to a liable entity and a year following an application by a prescribed person; and
(b) the prescribed person becomes a prescribed person under regulation 22LA; and
(c) the prescribed person makes an application under subsection 46A(1) of the Act in relation to another liable entity and the year; and
(d) in issuing another certificate (the second certificate ), the Regulator is satisfied that the evidence referred to in paragraphs 22S(1)(b) and (c) evidences the matters stated in those paragraphs;
then the Regulator may amend the first certificate to take account of the issuing of the second certificate.
55 Regulation 22ZQ (heading)
Repeal the heading, substitute:
22ZQ Circumstances--if there is a second liable entity (regulation 22M applies)
56 After regulation 22ZQ
Insert:
22ZQA Circumstances--if there are multiple liable entities (regulation 22MA applies)
If:
(a) one or more exemption certificates (the earlier certificates ) have been issued in relation to a liable entity and a year following an application or applications by a prescribed person; and
(b) the prescribed person becomes a prescribed person under regulation 22MA; and
(c) the prescribed person makes an application under subsection 46A(1) of the Act in relation to another liable entity (an added liable entity ) and the year; and
(d) in issuing another certificate as a result of the application (the additional certificate ), the Regulator is satisfied that the added liable entity is a liable entity in respect of the electricity consumed at the site during the year;
then the Regulator may amend an earlier certificate to take account of the issuing of the additional certificate.
57 Subregulation 22ZR(2)
Omit "The amendment", substitute "If the amount of the exemption is worked out under Division 5 (production calculation method), the amendment".
58 At the end of regulation 22ZR
Add:
(4) If the amount of the exemption is worked out under Division 5A (electricity use method), the amendment must take account of the cessation of the activity at the site.
59 At the end of regulation 22ZS
Add:
(3) Without limiting the circumstances in which an exemption certificate for which the amount of the exemption is worked out under Division 5A may be inaccurate, the certificate is taken to be inaccurate if there has been any change in relation to:
(a) information that formed part of the electricity use method advice (see paragraph 22O(1)(i)); or
(b) any other matter that affected a decision of the Regulator in relation to the certificate under regulation 22ZHB.
60 Regulation 22ZT
Before "For paragraph", insert "(1)".
61 At the end of regulation 22ZT
Add:
(2) This regulation does not apply in relation to an exemption certificate if the amount of the exemption is worked out under Division 5A (electricity use method).
62 Subregulation 49(1) (after table item 2)
Insert:
| 2A | Decision under subregulation 22UG(4) to give a notice (requiring application for exemption certificate to be accompanied by audit report) | Person to whom the notice is given |
| 2B | Decision under subregulation 22ZHC(3) to specify a formula in an exemption certificate (identification of use amount for a liable entity) | Applicant for the exemption certificate |
63 Subclause 601(1) of Schedule 6 (note)
After "and site", insert "under Division 5 of Part 3A (production calculation method)".
64 Paragraph 656(1)(e) of Schedule 6
Omit "subject to subclause (3),".
65 Subclause 656(3) of Schedule 6
Omit "For paragraph (1)(e)", substitute "For the purposes of paragraph (1)(e), if the amount of the exemption is worked out under Division 5 (production method)".
66 After subclause 662(1) of Schedule 6
Insert:
(1A) The activity of petroleum refining only takes place in the application year if:
(a) the application is for the amount of the exemption to be worked out under Division 5 of Part 3A (production calculation method) and subclause (2) applies; or
(b) the application is for the amount of the exemption to be worked out under Division 5A of Part 3A (electricity use method) and subclause (2A) applies.
67 Subclause 662(2) of Schedule 6
Omit "Subject to subclause (3), the activity of petroleum refining will only take place in the application year if both of the following apply", substitute "For the purposes of paragraph (1A)(a), this subclause applies in relation to the application year if".
68 At the end of paragraph 662(2)(a) of Schedule 6
Add "and".
69 After subclause 662(2) of Schedule 6
Insert:
(2A) For the purposes of paragraph (1A)(b), this subclause applies in relation to the application year if:
(a) each of the processes mentioned in paragraphs (1)(a) to (d) are conducted within the application year for the site; and
(b) the combined volume of diesel, jet fuel, unleaded petrol, lubricant base stocks and bitumen at 15°C and 1 atmosphere produced from stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks is:
(i) for a site that is not part of an activity group--equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks likely to be used in the application year for the site; or
(ii) for a site that is part of an activity group--equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks likely to be used in the application year for the sites that are part of the activity group.