Commonwealth Numbered Regulations Commonwealth Numbered Regulations
[1] Regulation 22A, after the definition of applicant
insert
ASTM followed by a number (for example, ASTM D6347/D6347M-99) means a standard of that number issued by ASTM International and, if a date is included, of that date.
Note ATSM means the American Society for Testing and Materials.
carbon steel means material which:
(a) contains by mass more iron (Fe) than any other single element; and
(b) has a carbon (C) concentration less than 2%.
"coke oven coke" has the same meaning as in the National Greenhouse and Energy Reporting Regulations 2008.
"condensate" has the same meaning as in the Excise Act 1901 .
[2] Regulation 22A, after the definition of Department of Climate Change and Energy Efficiency
insert
eligible petroleum feedstocks means any 1 or more of the following that were not produced through the conduct of an emissions-intensive trade-exposed activity carried on in Australia:
(a) catalytic cracker feedstocks that are processed in the catalytic cracker in carrying on the emissions-intensive trade-exposed activity and have a density of 0.84 to 0.98 kg/L at 15 °C and 1 atmosphere;
(b) hydro-cracker unit feedstocks that are processed in the hydro-cracking unit in carrying on the emissions-intensive trade-exposed activity and have a density of 0.84 to 0.98 kg/L at 15 °C and 1 atmosphere;
(c) reformer unit feedstocks that are used to produce reformate in carrying on the emissions-intensive trade‑exposed activity and have a density of 0.6 to 0.80 kg/L at 15 °C and 1 atmosphere;
(d) alkylation unit feedstocks that are used to produce alkylate in carrying on the emissions-intensive trade‑exposed activity and have a density of 0.55 to 0.62 kg/L at 15 °C and 1 atmosphere;
(e) bitumen feedstocks that are used to produce bitumen in carrying on the emissions-intensive trade-exposed activity and have a density greater than or equal to 0.95 kg/L at 15 °C and 1 atmosphere;
(f) lubricant base stock feedstocks that are used to produce lubricant base stocks in carrying on the emissions-intensive trade-exposed activity and have a density of 0.84 to 0.98 kg/L at 15 °C and 1 atmosphere.
[3] Regulation 22A, after the definition of referrable to a site
insert
relevant financial year means:
(a) if the application made under subsection 46A (1) of the Act for a year (the application year ) is not for a site that meets the criteria for a new entrant site specified in subregulation 22ZD (3) -- the financial year which ended 6 months before the application year; or
(b) if the application made under subsection 46A (1) of the Act for the application year is for a site that meets the criteria for a new entrant site specified in subregulation 22ZD (3) -- the financial year which began 6 months before the application year.
[4] Regulation 22A, definition of relevant product
substitute
relevant product means:
(a) in relation to an application for a partial exemption certificate:
(i) a product that is identified in the application as meeting the requirements specified in Division 3 of a Part in Schedule 6 as the basis for the issue of the certificate; or
(ii) a substance mentioned in paragraphs 664 (1) (a) to (e) of Schedule 6 that satisfies the requirements to be included in the kilolitres of product relevant for applying the electricity baseline for the activity of petroleum refining; and
(b) in relation to a partial exemption certificate that has been issued:
(i) a product that meets the requirements specified in Division 3 of a Part in Schedule 6 as the basis for the issue of the certificate; or
(ii) a substance mentioned in paragraphs 664 (1) (a) to (e) of Schedule 6 that satisfies the requirements to be included in the kilolitres of product relevant for applying the electricity baseline for the activity of petroleum refining.
[5] Regulation 22A, after the definition of saleable quality
insert
"stabilised crude petroleum oil" has the meaning given in the Australian Taxation Office Interpretative Decision, ATO ID 2008/154, published on 18 November 2008.
"unleaded petrol" means all grades of unleaded petrol meeting Australian or international standards, including standard unleaded petrol, premium unleaded petrol and other proprietary forms of unleaded petrol.
[6] Paragraph 22A (9) (b)
substitute
(b) for the activity of petroleum refining -- the products produced from relevant products are transferred between the sites in order to conduct any of the processes listed in paragraphs 662 (1) (a) to (d) of Schedule 6; and
(c) for any other activity -- the production of the relevant product from the activity involves the transfer of an intermediate product between the sites in order to produce the relevant product.
[7] Subregulation 22ZB (3)
omit
SP ia tfinprev is the amount or volume of the relevant product produced in the financial year that ended 6 months before the year to which the application relates and that is referrable to the site mentioned in the application.
insert
SP ia tfinprev is, subject to subregulations (4A) and (4B), the amount or volume of the relevant product produced in the financial year that ended 6 months before the year to which the application relates and that is referrable to the site mentioned in the application.
[8] Subregulation 22ZB (3)
omit
SP ia tfinprev is the amount or volume of the relevant product produced in the financial year that ended 6 months before the year to which the application relates and referrable to the site mentioned in the application.
insert
SP ia tfinprev is, subject to subregulations (4A) and (4B), the amount or volume of the relevant product produced in the financial year that ended 6 months before the year to which the application relates and that is referrable to the site mentioned in the application.
[9] After subregulation 22ZB (4)
insert
(4A) For the activity of petroleum refining, the factor SP ia tfinprev in subregulation (3) is 0 in relation to a site:
(a) that meets the new entrant site criteria specified in subregulation 22ZD (3); and
(b) for which the combined volume of diesel, jet fuel, unleaded petrol, lubricant base stocks and bitumen, at 15 °C and 1 atmosphere, that is produced from stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks is less than 75% of the total kilolitres of those substances used in the financial year that ended 18 months before the year to which the application relates.
(4B) For the activity of integrated iron and steel manufacturing, the factor SP ia tfinprev in subregulation (3) is 0 in relation to a site:
(a) that meets the new entrant site criteria specified in subregulation 22ZD (3); and
(b) for which, in the financial year that ended 18 months before the year to which the application relates, the percentage of cold ferrous feed transformed into 1 or more of the items in subparagraphs 656 (1) (e) (i) to (iii) of Schedule 6, as a portion of molten iron and cold ferrous feed, was greater than 30%.
[10] Schedule 6, after Part 18
insert
Part 19 Tissue paper manufacturing
Division 1 Tissue paper manufacturing
653 Tissue paper manufacturing
(1) Tissue paper manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into rolls of uncoated tissue paper that:
(a) has a grammage range of 13 g/m 2 to 75 g/m 2 ; and
(b) has a moisture content in the range of 4% to 11%; and
(c) is generally useable in sanitary products such as facial tissue, paper towel, bathroom tissue and napkins.
(2) Tissue paper manufacturing is specified as an emissions‑intensive trade-exposed activity.
Division 2 Classification of activity
654 Classification of activity
Tissue paper manufacturing is a moderately emissions‑intensive activity.
Division 3 Electricity baseline for calculating partial exemption
655 Electricity baseline for product
(1) Subject to subclause (3), for tissue paper manufacturing, the basis for calculating the amount of a liable entity's partial exemption is 1.70 MWh per total tonne of rolls of uncoated tissue paper that:
(a) has a grammage range of 13 g/m 2 to 75 g/m 2 ; and
(b) has a moisture content in the range of 4% to 11%; and
(c) is generally useable in sanitary products such as facial tissue, paper towel, bathroom tissue and napkins; and
(d) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(e) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
(2) For the production of pulp from either or both of woodchips and sawdust as part of the tissue paper manufacturing, the basis for calculating the amount of a liable entity's partial exemption is 0.448 MWh per total air dried tonne (assuming a 10% moisture content) of equivalent pulp that is:
(a) produced from either or both of woodchips and sawdust; and
(b) used in the process of manufacturing tissue paper; and
(c) produced as part of carrying on the emissions-intensive trade-exposed activity.
(3) For this Part, an amount of pulp or paper that is used as a basis for calculating the amount of a liable entity's partial exemption for 1 of the following emissions-intensive trade-exposed activities:
(a) the manufacture of newsprint;
(b) dry pulp manufacturing;
(c) cartonboard manufacturing;
(d) packaging and industrial paper manufacturing;
(e) printing and writing paper manufacturing;
(f) tissue paper manufacturing;
does not count for the purpose of the basis for allocation of another of those emissions-intensive trade-exposed activities.
Part 20 Integrated iron and steel manufacturing
Division 1 Integrated iron and steel manufacturing
656 Integrated iron and steel manufacturing
(1) Integrated iron and steel manufacturing is the chemical and physical transformation of iron ore into crude carbon steel products and hot-rolled carbon steel products involving all of the following processes:
(a) the chemical and physical transformation of iron ore into agglomerated iron ore, such as iron ore sinter or iron ore pellets;
(b) the carbonisation of coal (principally coking coal) into coke oven coke;
(c) the chemical and physical transformation of either or both of limestone or dolomite, into lime (including burnt lime and burnt dolomite);
(d) the chemical and physical transformation of iron ore feed, including agglomerated iron ore, into molten iron which includes the reduction of oxides of iron using carbon as the predominant reducing agent;
(e) subject to subclause (3), the chemical and physical transformation of molten iron and cold ferrous feed, such as pig iron, flat iron and ferrous scrap, into 1 or more of the following:
(i) continuously cast carbon steel products;
(ii) ingots of carbon steel;
(iii) hot-rolled carbon steel products, which commenced hot-rolling at a temperature above 800 °C.
Note Carbon steel and coke oven coke are defined in regulation 22A.
(2) Integrated iron and steel manufacturing may also include the physical transformation of continuously cast carbon steel products into hot-rolled carbon steel products which commence hot-rolling at a temperature above 800 °C if the continuously cast carbon steel products are produced:
(a) at a site that:
(i) conducts the activity of integrated iron and steel manufacturing; and
(ii) is not a site that is part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; or
(b) from the activity of manufacture of carbon steel from cold ferrous feed.
Note Activity group is defined in regulation 22A.
(3) For paragraph
(1) (e), the maximum percentage of cold
ferrous feed transformed into 1 or
more of the items in subparagraphs (1) (e) (i) to (iii) as a
proportion of molten iron and cold ferrous feed, must not:
(a) for a site that does not meet the criteria specified in subregulation 22ZD (3) for a new entrant site and that is not part of an activity group -- be greater than 30% over the relevant financial year for the site; or
(b) for a site that does not meet the criteria specified in subregulation 22ZD (3) for a new entrant site and that is part of an activity group -- be greater than 30% over the relevant financial year for the sites that are part of the activity group; or
(c) for a site that does meet the criteria specified in subregulation 22ZD (3) for a new entrant site -- be likely to be greater than 30% over the relevant financial year for the site.
Note Activity group and relevant financial year are defined in regulation 22A.
(4) Integrated iron and steel manufacturing is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
657 Classification of activity
Integrated iron and steel manufacturing is a highly emissions‑intensive activity.
Division 3 Electricity baseline for calculating partial exemption
658 Electricity baseline for product
(1) For the production of iron ore sinter, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.0397 MWh per tonne of iron ore sinter on a dry weight basis that:
(a) meets the necessary requirements for use in the integrated iron and steel manufacturing process; and
(b) is produced as part of carrying on the emissions-intensive trade-exposed activity.
(2) For the production of iron ore pellets, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.0742 MWh per tonne of iron ore pellets on a dry weight basis that:
(a) meet the necessary requirements for use in the integrated iron and steel manufacturing process; and
(b) are produced as part of carrying on the emissions-intensive trade-exposed activity.
(3) For the production of coke oven coke, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.0397 MWh per tonne of coke oven coke on a dry weight basis that is produced as part of carrying on the emissions‑intensive trade-exposed activity.
(4) For the production of lime, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.0405 MWh per tonne of lime on a dry weight basis that:
(a) meets the necessary requirements for use in the integrated iron and steel manufacturing process; and
(b) is produced as part of carrying on the emissions-intensive trade-exposed activity.
(5) For the production of either or both of continuously cast carbon steel products and ingots of carbon steel, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.145 MWh per tonne of either or both of continuously cast carbon steel products and ingots of carbon steel that:
(a) are produced as part of carrying on the emissions-intensive trade-exposed activity; and
(b) are not a relevant product for the emissions-intensive trade-exposed activity of the manufacture of carbon steel from cold ferrous feed; and
(c) are of a saleable quality.
Note 1 Carbon steel and relevant product are defined in regulation 22A.
Note 2 Saleable quality is defined in regulation 22C.
(6) For the production of hot-rolled carbon steel products that are long products, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.133 MWh per tonne of long products of hot-rolled carbon steel that:
(a) is in coils or straight lengths; and
(b) is generally produced in rod, bar and structural (section) mills; and
(c) generally has a cross sectional shape such as I, T, Y, U, V, H, C, L, square, rectangular, round, flat, hexagonal, angle, channel, structural beam profile or rail profile; and
(d) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(e) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (8); and
(f) is not a relevant product for the emissions-intensive trade‑exposed activity of integrated iron and steel manufacturing that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; and
(g) is not a relevant product for the emissions-intensive trade‑exposed activity of the manufacture of carbon steel from cold ferrous feed; and
(h) is of saleable quality.
Note 1 Activity group , carbon steel and relevant product are defined in regulation 22A.
Note 2 Saleable quality is defined in regulation 22C.
(7) For the production of hot-rolled carbon steel products that are flat products, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.116 MWh per tonne of flat products of hot-rolled carbon steel that:
(a) is flat in profile, such as plate and hot rolled coil; and
(b) is generally produced in hot strip mills and plate mills; and
(c) is generally greater than 600 mm in width; and
(d) is generally less than 150 mm in thickness; and
(e) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(f) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (8); and
(g) is not a relevant product for the emissions-intensive trade‑exposed activity of integrated iron and steel manufacturing that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; and
(h) is not a relevant product for the emissions-intensive trade‑exposed activity of the manufacture of carbon steel from cold ferrous feed; and
(i) is of saleable quality.
Note 1 Activity group , carbon steel and relevant product are defined in regulation 22A.
Note 2 Saleable quality is defined in regulation 22C.
(8) For paragraphs (6) (e) and (7) (f), the continuously cast carbon steel products must:
(a) be produced as part of carrying on the emissions-intensive trade-exposed activity; or
(b) be produced from the activity of integrated iron and steel manufacturing that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; or
(c) be produced from the activity of manufacture of carbon steel from cold ferrous feed.
Note Activity group and relevant product are defined in regulation 22A.
Part 21 Manufacture of carbon steel from cold ferrous feed
Division 1 Manufacture of carbon steel from cold ferrous feed
659 Manufacture of carbon steel from cold ferrous feed
(1) The manufacture of carbon steel from cold ferrous feed is the physical and chemical transformation of cold ferrous feed (such as ferrous scrap, pig iron and flat iron) by heating and melting into liquid steel and the subsequent casting of the liquid steel to produce 1 or more of the following:
(a) continuously cast carbon steel products;
(b) ingots of carbon steel;
(c) hot-rolled carbon steel products, which commenced hot‑rolling at a temperature above 800 °C.
(2) The manufacture of carbon steel from cold ferrous feed may also include the physical transformation of continuously cast carbon steel products into hot-rolled carbon steel products which commenced hot-rolling at a temperature above 800 °C where the continuously cast carbon steel products are produced:
(a) at a site that:
(i) conducts the activity of manufacture of carbon steel from cold ferrous feed; and
(ii) is not a site that is part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; or
(b) from the activity of integrated iron and steel manufacturing.
Note Activity group is defined in regulation 22A.
(3) The manufacture of carbon steel from cold ferrous feed is specified as an emissions-intensive trade-exposed activity.
Note Carbon steel is defined in regulation 22A.
Division 2 Classification of activity
660 Classification of activity
The manufacture of carbon steel from cold ferrous feed is a highly emissions-intensive activity.
Division 3 Electricity baseline for calculating partial exemption
661 Electricity baseline for product
(1) For the production of either or both of continuously cast carbon steel products and ingots of carbon steel, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.532 MWh per tonne of either or both continuously cast carbon steel products and ingots of carbon steel that:
(a) are produced as part of carrying on the emissions-intensive trade-exposed activity; and
(b) are not a relevant product for the emissions-intensive trade-exposed activity of integrated iron and steel manufacturing; and
(c) are of a saleable quality.
Note 1 Carbon steel and relevant product are defined in regulation 22A.
Note 2 Saleable quality is defined in regulation 22C.
(2) For the production of hot-rolled carbon steel products which are long products, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.133 MWh per tonne of long products of hot-rolled carbon steel that:
(a) is in coils or straight lengths; and
(b) is generally produced in rod, bar and structural (section) mills; and
(c) generally has a cross sectional shape such as I, T, Y, U, V, H, C, L, square, rectangular, round, flat, hexagonal, angle, channel, structural beam profile or rail profile; and
(d) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(e) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (4); and
(f) is not a relevant product for the emissions-intensive trade-exposed activity of manufacture of carbon steel from cold ferrous feed that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; and
(g) is not a relevant product for the emissions-intensive trade-exposed activity of integrated iron and steel manufacturing; and
(h) is of saleable quality.
Note 1 Activity group , carbon steel and relevant product are defined in regulation 22A.
Note 2 Saleable quality is defined in regulation 22C.
(3) For the production of hot-rolled carbon steel products which are flat products, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.116 MWh per tonne of flat products of hot-rolled carbon steel that:
(a) is flat in profile, such as plate and hot rolled coil; and
(b) is generally produced in hot strip and plate mills; and
(c) is generally greater than 600 mm in width; and
(d) is generally less than 150 mm in thickness; and
(e) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(f) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (4); and
(g) is not a relevant product for the emissions-intensive trade‑exposed activity of manufacture of carbon steel from cold ferrous feed that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; and
(h) is not a relevant product for the emissions-intensive trade‑exposed activity of integrated iron and steel manufacturing; and
(i) is of saleable quality.
Note 1 Carbon steel is defined in regulation 22A.
Note 2 Saleable quality is defined in regulation 22C.
(4) For paragraphs (2) (e) and (3) (f), the continuously cast carbon steel products must:
(a) be produced as part of carrying on the emissions-intensive trade-exposed activity; or
(b) be produced from the activity of manufacture of carbon steel from cold ferrous feed that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; or
(c) be produced from the activity of integrated iron and steel manufacturing.
Note Activity group and relevant product are defined in regulation 22A.
Part 22 Petroleum refining
Division 1 Petroleum refining
662 Petroleum refining
(1) Petroleum refining is the chemical and physical transformation of stabilised crude petroleum oil, which may be supplemented with 1 or more of condensate, tallow, vegetable oil, eligible petroleum feedstocks or other petroleum feedstocks, to produce a range of refined petroleum products through the following processes:
(a) the distillation of stabilised crude petroleum oil, condensate, tallow, vegetable oil and other petroleum feedstocks;
(b) the adjustment of the molecular weight and structure of hydrocarbons (such as that which occurs through catalytic or hydro-cracking, steam or catalytic reforming, polymerisation, isomerisation or alkylation);
(c) the blending of products from distillation and adjustment of molecular weight and structure to produce Australian and international standard diesel, jet fuel and unleaded petrol;
(d) the production of 2 or more of the following refinery products saleable in Australian or international markets:
(i) hydrogen;
(ii) ethane;
(iii) propane;
(iv) refinery grade propylene;
(v) polymer grade propylene;
(vi) liquefied petroleum gas;
(vii) butane;
(viii) naphtha;
(ix) aviation gasoline;
(x) before oxygenate blend;
(xi) kerosene;
(xii) heating oil;
(xiii) solvents;
(xiv) lubricant base stocks;
(xv) leaded petrol;
(xvi) waxes;
(xvii) bitumen.
Note Condensate , eligible petroleum feedstocks , stabilised crude petroleum oil and unleaded petrol are defined in regulation 22A.
(2) Subject to subclause (3), the activity of petroleum refining will only take place in the application year if both of the following apply:
(a) each of the processes mentioned in paragraphs (1) (a) to (d) are conducted within the relevant financial year for the site;
(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 does not meet the criteria specified in subregulation 22ZD (3) for a new entrant site and 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 used within the relevant financial year for the site; or
(ii) for a site that does not meet the criteria specified in subregulation 22ZD (3) for a new entrant site and 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 used within the relevant financial year for the sites that are part of the activity group; or
(ii) for a site that does meet the criteria specified in subregulation 22ZD (3) for a new entrant site -- is likely to be 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 within the relevant financial year for the site.
Note Activity group and relevant financial year are defined in regulation 22A.
(3) The processes mentioned in paragraphs (1) (a) to (d) are not required to be conducted for every product mentioned in paragraphs (1) (c) and (d) for the activity of petroleum refining to occur in the application year.
(4) Petroleum refining is specified as an emissions-intensive trade‑exposed activity.
(5) For this Part:
"application year" , for an application under subsection 46A (1) of the Act, means the year for which the application is made for under subsection 46A (1) of the Act.
Division 2 Classification of activity
663 Classification of activity
Petroleum refining is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
664 Electricity baseline for product
(1) Subject to subclause (2), the electricity baseline for calculating the amount of a liable entity's partial exemption in respect of petroleum refining is 0.0421 MWh per kilolitres of:
(a) stabilised crude petroleum oil at 15 °C and 1 atmosphere; and
(b) condensate at 15 °C and 1 atmosphere; and
(c) tallow at 15 °C and 1 atmosphere; and
(d) vegetable oil at 15 °C and 1 atmosphere; and
(e) eligible petroleum feedstocks at 15 °C and 1 atmosphere.
(2) A substance mentioned in paragraphs (1) (a) to (e) may be used for calculating the amount of a liable entity's partial exemption for subclause (1) if the substance is, or is to be, refined:
(a) by 1 or both of the processes mentioned in paragraphs 662 (1) (a) and (b); and
(b) into either of the following:
(i) 1 or more petroleum products mentioned in paragraphs 662 (1) (c) and (d);
(ii) other by-products which result from carrying on the emissions-intensive trade-exposed activity; and
(c) in the financial year:
(i) that applies, for the purpose of subregulation 22ZB (3), to the application made under subsection 46A (1) of the Act; and
(ii) in which the combined volume of diesel, jet fuel, unleaded petrol, lubricant base stocks and bitumen, at 15 °C and 1 atmosphere, produced from substances mentioned in paragraphs (1) (a) to (e) is:
(A) for new or expected additional production -- likely to be equal to or greater than 75% of the total kilolitres of those substances likely to be used in the financial year; or
(B) for production that is not new or expected additional production -- equal to or greater than 75% of the total kilolitres of those substances used in the financial year.
Note Condensate , eligible petroleum feedstocks , petroleum oil , stabilised crude and unleaded petrol are defined in regulation 22A.
Part 23 Production of ethene (ethylene)
Division 1 Production of ethene (ethylene)
665 Production of ethene (ethylene)
(1) The production of ethene (ethylene) is the chemical transformation of hydrocarbons to produce ethene (ethylene (C 2 H 4 )) that has a concentration of ethene (ethylene (C 2 H 4 )) equal to or greater than 99%.
(2) The production of ethene (ethylene) is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
666 Classification of activity
The production of ethene (ethylene) is a highly emissions‑intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
667 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of ethene (ethylene) is 0.275 MWh per tonne of 100% equivalent ethene (ethylene (C 2 H 4 )) that is contained within ethene that:
(a) has a concentration of ethene (ethylene (C 2 H 4 )) equal to or greater than 99%; and
(b) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(c) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
Part 24 Production of polyethylene
Division 1 Production of polyethylene
668 Production of polyethylene
(1) The production of polyethylene is the chemical transformation of ethene (ethylene (C 2 H 4 )) to produce polyethylene with a standard density equal to or greater than 0.910 g/cm 3 .
(2) The production of polyethylene is specified as an emissions‑intensive trade-exposed activity.
(3) For this Part:
"standard density" , for polyethylene, means the density of polyethylene moulded to a thickness of 1.9 mm using Procedure C of Annex A1 to ASTM D4703, as in force from time to time.
Division 2 Classification of activity
669 Classification of activity
The production of polyethylene is a moderately emissions‑intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
670 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of polyethylene is 0.646 MWh per tonne of pelletised polyethylene that:
(a) has a standard density equal to or greater than 0.910 g/cm 3 ; and
(b) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(c) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
Part 25 Production of synthetic rutile
Division 1 Production of synthetic rutile
671 Production of synthetic rutile
(1) The production of synthetic rutile is the chemical transformation of ilmenite ore (ore containing FeTiO 3 ) through the reduction of iron oxides in order to increase the titanium dioxide (TiO 2 ) concentration to produce synthetic rutile that:
(a) has a titanium dioxide (TiO 2 ) concentration equal to or greater than 88% and less than 95.5%; and
(b) has an iron (Fe) concentration greater than 0.5%.
(2) The production of synthetic rutile is specified as an emissions‑intensive trade-exposed activity.
Division 2 Classification of activity
672 Classification of activity
The production of synthetic rutile is a highly emissions‑intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
673 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of synthetic rutile is 0.304 MWh per tonne of synthetic rutile that:
(a) has a titanium dioxide (TiO 2 ) concentration equal to or greater than 88% and less than 95.5%; and
(b) has an iron (Fe) concentration greater than 0.5%; and
(c) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(d) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
Part 26 Production of manganese
Division 1 Production of manganese
674 Production of manganese
(1) The production of manganese is any of the following:
(a) the physical and chemical transformation of manganese (Mn) ore into manganese sinter (Mn 3 O 4 ) that has a concentration of manganese equal to or greater than 40%;
(b) the physical and chemical transformation of either or both of manganese ore and manganese sinter into either or both of the following:
(i) ferromanganese alloy that has a concentration of manganese equal to or greater than 67%;
(ii) silicomanganese alloy that has a concentration of:
(A) manganese equal to or greater than 60%; and
(B) silicon (Si) equal to or greater than 12%.
(2) The production of manganese is specified as an emissions‑intensive trade-exposed activity.
Division 2 Classification of activity
675 Classification of activity
The production of manganese is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
676 Electricity baseline for product
(1) For the production of manganese sinter, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.0300 MWh per tonne of manganese sinter that:
(a) has a concentration of manganese equal to or greater than 40%; and
(b) is produced by, or as part of, carrying on the emissions‑intensive trade-exposed activity; and
(c) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
(2) For the production of ferromanganese alloy, the electricity baseline for calculating the amount of a liable entity's partial exemption is 2.61 MWh per tonne of ferromanganese alloy that:
(a) has a concentration of manganese equal to or greater than 67%; and
(b) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(c) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
(3) For the production of silicomanganese alloy, the electricity baseline for calculating the amount of a liable entity's partial exemption is 4.31 MWh per tonne of silicomanganese alloy that:
(a) has a concentration of manganese equal to or greater than 60%; and
(b) has a concentration of silicon (Si) equal to or greater than 12%; and
(c) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(d) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
Part 27 Production of clinker
Division 1 Production of clinker
677 Production of clinker
(1) The production of clinker is the physical and chemical transformation of:
(a) either or both of calcium carbonate compounds (limestone (CaCO 3 )) and other calcium carbonate (CaCO 3 ) feedstocks; and
(b) any of the following:
(i) clay;
(ii) clay mixed with 1 or more feedstocks that contain 1 or more of the following:
(A) silicon dioxide (SiO 2 );
(B) iron (Fe);
(C) aluminium oxide (alumina (Al 2 O 3 ));
(iii) 1 or more feedstocks that, when combined, contain all of the following:
(A) silicon dioxide (SiO 2 ); and
(B) iron (Fe); and
(C) aluminium oxide (alumina (Al 2 O 3 ));
that are fused together at a temperature above 1000 °C into Portland cement clinker.
(2) The Portland cement clinker must:
(a) have a concentration of calcium silicates equal to or greater than 60%; and
(b) have a concentration of magnesium oxide (MgO) equal to or less than 4.5%; and
(c) be useable in the making of Portland cement.
(3) The production of clinker is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
678 Classification of activity
The production of clinker is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
679 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of clinker is 0.0709 MWh per tonne of Portland cement clinker on a dry weight basis that:
(a) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(b) has a concentration of calcium silicates equal to or greater than 60%; and
(c) has a concentration of magnesium oxide (MgO) equal to or less than 4.5%; and
(d) is useable in the making of Portland cement; and
(e) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
Part 28 Production of lime
Division 1 Production of lime
680 Production of lime
(1) The production of lime is the physical and chemical transformation, through the calcining process, of calcium and magnesium sources (such as calcium carbonate (CaCO 3 ) and magnesium carbonate (MgCO 3 )) into lime that has a concentration of either or both of calcium oxide (CaO) and magnesium oxide (MgO) equal to or greater than 60%.
(2) The production of lime is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
681 Classification of activity
The production of lime is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
682 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of lime is 0.0476 MWh per tonne of lime on a dry weight basis that:
(a) has a concentration of either or both of calcium oxide (CaO) and magnesium oxide (MgO) equal to or greater than 60%; and
(b) is not a relevant product for the emissions-intensive trade-exposed activity of integrated iron and steel manufacturing; and
(c) is produced by carrying on the emissions-intensive trade-exposed activity; and
(d) is of saleable quality.
Note 1 Relevant product is defined in regulation 22A.
Note 2 Saleable quality is defined in regulation 22C.