Commonwealth Numbered Regulations - Explanatory Statements
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NATIONAL GREENHOUSE AND ENERGY REPORTING AMENDMENT REGULATION 2012 (NO. 1) (SLI NO 52 OF 2012)
Select Legislative Instrument 2012 No. 52
Issued by the Authority of the Minister for Climate Change and Energy Efficiency
National Greenhouse and Energy Reporting Act 2007
National Greenhouse and Energy Reporting Amendment Regulation 2012 (No. 1)
Section 77 of the National Greenhouse and Energy Reporting Act 2007 (NGER Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The NGER Act establishes the National Greenhouse and Energy Reporting (NGER) Scheme which is a national framework for reporting greenhouse gas emissions, greenhouse gas projects and energy consumption and production by Australian corporations.
The NGER Act was recently amended by the Clean Energy (Consequential Amendments) Act 2011 which was part of the Clean Energy Legislative Package. The Clean Energy Act 2011, (CE Act), which was also part of the package, introduces a carbon pricing mechanism aimed at reducing Australia's greenhouse gas emissions. The NGER Scheme provides the basis for emissions monitoring, reporting and auditing of emission liabilities under the carbon pricing mechanism. In addition, information reported under the Scheme assists Australia meet its international reporting obligations and informs government policy and programs and the Australian public.
The National Greenhouse and Energy Reporting Amendment Regulation 2012 (No. 1) (the Regulation) amends the National Greenhouse and Energy Reporting Regulations 2008 (the Principal Regulations) to support amendments made to the National Greenhouse and Energy Reporting Act 2007 (NGER Act) by the Clean Energy (Consequential Amendments) Act 2011.
The purpose of the regulation is to:
• extend the existing NGER reporting, monitoring and compliance framework so that it incorporates entities liable under the carbon pricing mechanism;
• provide greater clarity in the Principal Regulations in order to simplify administration, reporting and auditing, including in relation to existing reporting arrangements; and
• ensure consistency between the Principal Regulations and proposed amendments to the National Greenhouse and Energy Reporting (Measurement) Determination 2008.
Details of the Regulation are set out in Attachment A.
A statement of the Regulation's compatibility with human rights is set out in Attachment B.
The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
Consultation on an exposure draft of the Regulation took place in March-April 2012. A discussion paper dealing both with the content of this Regulation and the Clean Energy Amendment Regulation (No. 2) 2012 was exposed for public comment between 16 March and 2 April 2012.
Thirty submissions from industry stakeholders were received in response and DCCEE also conducted several meetings with industry stakeholders. Comments received by the Department through the exposure draft process were considered in finalising the Regulation.
Glossary
The following abbreviations are used throughout this explanatory memorandum:
|
Abbreviation |
Definition |
|
Audit Determination |
National Greenhouse and Energy Reporting (Audit) Determination 2009 |
|
CE Act |
Clean Energy Act 2011 |
|
Clean Energy Legislative Package |
A package of Acts including: • Clean Energy Act 2011; • Clean Energy (Consequential Amendments) Act 2011; • Clean Energy Regulator Act 2011; • Climate Change Authority Act 2011; • Clean Energy (Unit Shortfall Charge--General) Act 2011; • Clean Energy (Unit Issue Charge--General) Act 2011; • Clean Energy (Charges--Excise) Act 2011; • Clean Energy (International Unit Surrender Charge) Act 2011; • Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2011; • Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment Act 2011; • Fuel Tax Legislation Amendment (Clean Energy) Act 2011; • Excise Tariff Legislation Amendment (Clean Energy) Act 2011; • Customs Tariff Amendment (Clean Energy) Act 2011.
|
|
Measurement Determination |
National Greenhouse and Energy Reporting (Measurement) Determination 2008 |
|
NGER Act |
National Greenhouse and Energy Reporting Act 2007 |
|
NGER Regulations |
National Greenhouse and Energy Reporting Regulations 2008 |
|
Regulator |
Clean Energy Regulator |
Details of the Regulation
Section 1 - Name of Regulation
Section 3 - Amendment of National Greenhouse and Energy Reporting Regulations 2008
SCHEDULE 1 - Amendments commencing day after registration
Reporting aggregated amounts from facilities
SCHEDULE 2 - Amendments commencing immediately after commencement of Schedule 2 to SLI 2011 No. 115
Division 2.2 Section 7 definitions
Division 2.4 Facilities: section 9
Division 2.5 Meaning of terms in section 10 of the Act
Division 2.6 Operational control - information to accompany nomination
Division 3.2 Requirements for applications
Application by controlling corporation - content of application
Application by liable entity - content of application
Division 3.3 National Greenhouse and Energy Register
Division 4.3 - General information about persons and facilities
Subdivision 4.4.2 Scope 1 emissions from fuel combustion
Subdivision 4.4.3 Scope 1 emissions from particular sources
Emissions - carbon capture and storage
Subdivision 4.4.4 Energy Production
Subdivision 4.4.5 Energy Consumption
Consumption of energy if both electricity and another product are produced
Primary or secondary fuels or energy commodities
Division 4.5 Other reporting requirements
Reporting aggregated amounts from facilities
Reporting percentages of emissions and energy
Reporting about incidental emissions and energy
Reporting for facilities that are networks and pipelines
Reporting for facilities that are vertically integrated production processes
Reporting a change in a principal activity for facility
Division 4.6 No thresholds met
Division 4.6A Additional information for reports under section 22A or 22AA of Act
Subdivision 4.6A.2 Reports under section 22A or 22AA of Act
Subdivision 4.6A.3 Reports under section 22A of Act
Subdivision 4.6A.4 Reports under section 22AA of Act
Division 4.7 Reporting of information by another person
Part 5 Disclosure of information
Division 5.3 Adjusting energy consumption
Division 6.2 Other information required
Application under section 54 or 54A of Act - other information required
Application under section 55 or 55A of Act - other information required
Division 6.2A Monitoring Compliance
Schedule 1 Fuels and other energy commodities
Section 1 - Name of Regulation
Section 1 provides that the name of the Regulation is the National Greenhouse and Energy Reporting Amendment Regulation 2012 (No. 1).
Section 2 provides that:
• Schedule 1 of the Regulation commences the day after it is registered; and
• Schedule 2 of the Regulation commences immediately after the commencement of Schedule 2 of the National Greenhouse and Energy Reporting Amendment Regulations 2011 (No. 1), which will be on 1 July 2012.
Section 3 - Amendment of National Greenhouse and Energy Reporting Regulations 2008
Schedules 1 and 2 amend the National Greenhouse and Energy Reporting Regulations 2008.
SCHEDULE 1 - Amendments commencing day after registration
Reporting aggregated amounts from facilities
Item 1 - Subparagraphs 4.25 (3) (c) (i) to (iii)
Item [1] amends the regulation that allows entities to report aggregated amounts from facilities. This will give entities that report aggregated amounts from facilities that are not transport facilities or network or pipeline facilities the option of providing either: the latitude and longitude of the site; or, the street address. Without these amendments, the street address (if there was one), and latitude and longitude would all be required.
SCHEDULE 2 - Amendments commencing immediately after commencement of Schedule 2 to SLI 2011 No. 115
Item 1 - Regulation 1.03, heading
Item [1] changes the heading of regulation 1.03 from Definitions in the Regulations to Definitions.
Items [2] through [45] relate to the adoption of definitions which are referred to in the CE Act or which are consistent with those used in the CE Act.
Item 2 - Regulation 1.03, definition of audited body
Item [2] amends the definition of audited body so that it could apply to any legal person for whom an audit is to be, or is being, carried out. This reflects the expansion of the NGER Act to incorporate reporting by liable entities in addition to reporting by controlling corporations.
Items 3 to 5 - Regulation 1.03
Items [3] through [5] insert definitions of biofuels, biogas and biomass. These fuels are excluded from the carbon pricing mechanism under section 30(3) of the CE Act, because emissions from these sources form part of the natural carbon cycle. These definitions are based on the definitions used in reporting schemes in the European Union and United States of America.
Item 6 - Regulation 1.03
Item [6] inserts a definition of captured for combustion for consistency with the Measurement Determination. The definition refers to useable heat, which is heat that can be provided, or can provide mechanical work to a process away from its source.
Item 7 - Regulation 1.03, definition of carbon capture and storage
The definition of carbon capture and storage is now included in the NGER Act. As a consequence, item [7] removes the definition from regulation 1.03.
Items 8 and 9 - Regulation 1.03
Items [8] and [9] insert definitions of coal mine waste gas and coal seam methane, to distinguish these gases from other sources of naturally occurring hydrocarbons. This will help reporters correctly allocate their use of fuels or energy commodities to the items in Schedule 1 (and thereby improve the accuracy of reporting and publication of energy statistics), and help reporters decide which measurement or monitoring methods they should use.
The definition of coal mine waste gas is based on the definition of waste coal mine gas in the Renewable Energy (Electricity) Regulations 2001.
Coal mine waste gas is distinct from coal seam methane. Coal mine waste gas is produced from an area that was previously, is currently, or will be mined for coal. In contrast, coal seam methane is produced from an area where coal has not, is not, and will not be extracted.
Item [30] describes a related amendment that defines natural gas. Item [44] describes a related amendment that defines unprocessed natural gas.
Items [35], [43], [89], [128] and [137] describe related amendments that allow energy consumption to be adjusted for secondary fuel production, based in part on Schedule 1.
Item 10 - Regulation 1.03, definition of compressed natural gas
Item [10] broadens the definition of compressed natural gas so that it refers to the physical state and source of the gas and so that it no longer refers to the use of the gas in vehicles that have been modified to use such gas.
Compressed natural gas is excluded from the carbon pricing mechanism under section 30(3) of the CE Act on the basis that an equivalent carbon price is applied to this fuel through the Excise Tariff Act 1921.
Item 11 - Regulation 1.03, definition of consumption
Item [58] describes a related amendment that changes the location of the regulation that the definition of consumption refers to. As a consequence, item [11] amends the regulation reference.
Item 12 - Regulation 1.03
Item [12] inserts a definition of covered emission that states that the term has the same meaning as in the CE Act.
Item 13 - Regulation 1.03
Item [13] inserts a definition of decommissioned underground mine into regulation 1.03. This definition is used in section 30(8) of the CE Act to exclude fugitive emissions from decommissioned underground mines from the carbon pricing mechanism.
Fugitive emissions from decommissioned underground mines are excluded from the carbon pricing mechanism because they produce few emissions, the volume of emissions declines rapidly after decommissioning, there is no economic benefit associated with the mine, and the cost of measuring those emissions is disproportionately large.
It is intended that mines where below ground care and maintenance activities are conducted (such as mine ventilation) would not be considered to be decommissioned.
Item 14 - Regulation 1.03
Item [14] inserts a definition of designated joint venture that states that the term has the same meaning as in the CE Act.
Item 15 - Regulation 1.03, definition of efficiency method
Item [15] removes the definition of efficiency method. This definition is no longer required because the term is no longer used in the regulations and instead is defined in the Measurement Determination.
Item 16 - Regulation 1.03, definition of emissions
Item [16] removes the definition of emissions. This definition is no longer required because items [41] and [42] replace it with definitions of scope 1 emissions and scope 2 emissions that have been revised for consistency with the CE Act.
Item 17 - Regulation 1.03
Item [17] inserts a definition of exempt landfill emissions that states that the term has the same meaning as in the CE Act.
Item 18 - Regulation 1.03, definition of facilities of the corporation
Item [18] replaces the definition of facilities of the corporation with a definition of facilities of the person. This amendment is a consequence of the expansion of the NGER Act to incorporate liable entities in addition to controlling corporations.
Item 19 - Regulation 1.03, definition of feedstock
Item [19] changes the definition of feedstock so that it states that the term has the same meaning as in the CE Act.
Item 20 - Regulation 1.03
Item [20] inserts a definition of Greater Sunrise unit area that states that the term has the same meaning as in the CE Act.
Item 21 - Regulation 1.03, definition of landfill gas
Item [21] changes the definition of landfill gas to a definition of landfill biogas by replacing the reference to 'gas from solid waste in landfills that is combusted to produce heat or electricity' with 'gas from the fermentation of biomass in a landfill.' This amendment simplifies the definition and makes it consistent with the terminology used in Schedule 1.
Item 22 - Regulation 1.03
Item [22] inserts a definition of landfill facility that states that the term has the same meaning as in the CE Act.
Item 23 - Regulation 1.03
Item [23] inserts a definition of large gas consuming facility that states that the term has the same meaning as in the CE Act.
Item 24 - Regulation 1.03
Item [24] inserts a definition of legacy emissions that states that the term has the same meaning as in the CE Act.
Item 25 - Regulation 1.03, definition of liquid aromatic hydrocarbons
Item [25] replaces the definition of liquid aromatic hydrocarbons with a definition of the term liquefied aromatic hydrocarbons for consistency with the terminology used in Schedule 1.
Item 26 - Regulation 1.03
Item [26] inserts a definition of liquefied natural gas for the reason noted in item [28].
Item 27 - Regulation 1.03
Item [27] inserts a definition of liquid petroleum fuel for the reason noted in item [28].
Item 28 - Regulation 1.03
Item [28] inserts a definition of liquid petroleum gas for the reason noted below.
The definitions of liquefied natural gas, liquid petroleum fuel and liquid petroleum gas is inserted to help reporters correctly allocate their use of fuels or energy commodities to the items in Schedule 1 (and thereby improve the accuracy of reporting and publication of energy statistics).
Liquefied natural gas, liquid petroleum fuel and liquid petroleum gas are referred to in section 30 (2) of the CE Act where they are excluded from the carbon pricing mechanism on the basis that an equivalent carbon price is applied to these fuels through the Excise Tariff Act 1921.
Item 29 - Regulation 1.03, definition of network facility
Item [29] inserts a definition of network or pipeline facility that states that this type of facility is a facility that is in one of the industry sectors mentioned in Item [59]. This is because the facilities of these industries, by definition, have the characteristics of network or pipeline facilities.
Item 30 - Regulation 1.03
Item [30] inserts a definition of natural gas. The definition of natural gas is based on its gaseous state, its chemical composition, and whether it has been injected into a natural gas supply pipeline.
Item [45] describes a related amendment that defines unprocessed natural gas. Items [8] and [9] describe related amendments that define coal mine waste gas and coal seam methane.
Item 31 - Regulation 1.03
Item [31] inserts a definition of natural gas supply pipeline that states that the term has the same meaning as in the CE Act.
Item 32 - Regulation 1.03
Item [32] inserts a definition of obligation transfer number that states that the term has the same meaning as in the CE Act.
Item 33 - Regulation 1.03
Item [33] inserts a definition of a personal identification number which may be used by the Regulator (under its administrative powers) to identify particular persons.
Items [62], [65] and [66] describe amendments that are related to item [33] because they insert provisions that require the use of a personal identification number.
Item 34 - Regulation 1.03, definition of petroleum coke
Item [34] simplifies the definition of petroleum coke and clarifies that it excludes refinery coke.
Item 35 - Regulation 1.03
Item [35] inserts a definition of primary fuel or energy commodity which is required to facilitate the adjustment of energy consumption for secondary fuel production prior to publication. This definition is consistent with the definitions used to meet Australia's international reporting obligations.
Items [43], [89], [128] and [137] contain amendments that are related to item [35] because they also facilitate the adjustment of energy consumption prior to publication.
Item 36 - Regulation 1.03, definition of production
Item [36] revises the definition of production as a consequence of a change in the location of the regulation that it refers to.
Item 37 - Regulation 1.03, definition of project proponent
Item [37] removes the definition of project proponent because the term was only used in the definition of audited body and that latter definition no longer uses the term, as a result of item [2].
Item 38 - Regulation 1.03, definition of refinery coke
Item [38] amends the definition of refinery coke to help reporters correctly allocate their use of fuels or energy commodities to the items in Schedule 1 (and thereby improve the accuracy of reporting and publication of energy statistics).
Item [34] describes an amendment that is related to item [38] because it improves the definition of petroleum coke.
Item 39 - Regulation 1.03, definition of refinery gases and liquids
Item [39] amends the definition of refinery gases and liquids to help reporters correctly allocate their use of fuels or energy commodities to the items in Schedule 1 (and thereby improve the accuracy of reporting and publication of energy statistics). The amended definition indicates that the term refinery gases and liquids only includes fuels and energy commodities which are not included elsewhere in Schedule 1.
Item 40 - Regulation 1.03, definition of reporting year
Item [40] amends the definition of reporting year to take account of the additional reports that must be provided under the carbon pricing mechanism.
Item 41 - Regulation 1.03, definition of scope 1 emissions
Item [41] revises the definition of scope 1 emissions to take account of a change in the location of the regulation that the definition refers to.
Item [58] changes the location of the regulation that the definition refers to. Item [42] describes related amendments to scope 2 emissions.
Item 42 - Regulation 1.03, definition of scope 2 emissions
Item [42] revises the definition of scope 1 emissions to take account of a change in the location of the regulation that the definition refers to.
Item [58] changes the location of the regulation that the definition refers to. Item [41] describes related amendments to scope 1emissions.
Item 43 - Regulation 1.03
Item [43] inserts a definition of secondary fuel or energy commodity.
The definition of secondary fuel or energy commodity is inserted to facilitate the adjustment of energy consumption for secondary fuel production prior to publication. Items [35], [89], [128] and [137] describe related amendments that will allow energy consumption to be adjusted for secondary fuel production, based in part on the definitions of primary and secondary fuels or energy commodities. This definition is consistent with the definitions used to meet Australia's international reporting obligations.
Item 44 - Regulation 1.03
Item [44] inserts a definition of unprocessed natural gas. This amendment is required to distinguish unprocessed natural gas from other sources of naturally occurring hydrocarbons.
Items [8] and [9] describe related amendments that define coal mine waste gas and coal seam methane and item [30] describes a related amendment that defines natural gas. Each of these fuels are methane-rich.
Item 45 - Regulation 1.03, note
Item [45] replaces the note following regulation 1.03 with a new expanded note to indicate that certain terms used in the Regulations have the same meaning as in the CE Act. Item [45] also removes audit information from the note following regulation 1.03 as a consequence of the term being no longer defined in the NGER Act.
Part 2 Interpretation
Division 2.2 Section 7 definitions
Item 46 - Regulation 2.01A
Item [46] amends the definition of a business unit so that it applies to persons who are registered corporations instead of only registered corporations. This is a consequence of the expansion of the NGER Act to incorporate liable entities in addition to controlling corporations.
Item 47 - Regulation 2.02
The definition of carbon dioxide equivalence in the NGER Act has been expanded so that it refers to: an amount of greenhouse gas; and, the potential emissions embodied in an amount of natural gas. The reference to potential emissions was added by the Clean Energy Legislative Package to allow liability for natural gas to be assigned before it is combusted to suppliers of natural gas and Obligation Transfer Number Holders. Before the Clean Energy Legislative Package, the definition of carbon dioxide equivalence had not referred to the potential emissions embodied in an amount of natural gas.
Item [47] amends regulation 2.02 so that it provides the values for determining the carbon dioxide equivalence of an amount of natural gas. The values specified for determining the carbon dioxide equivalence of potential greenhouse gas emissions embodied in an amount of natural gas are given in section 7C of the NGER Act.
Item 48 - Regulations 2.04, 2.05 and 2.07
Item [48] removes regulations 2.04, 2.05 and 2.07.
Regulation 2.04 specifies kinds of hydrofluorocarbons for the purpose of supplementing the definition of greenhouse gas given in section 7 of the NGER Act. Item [48] removes regulation 2.04 because the full definition is now included in the NGER Act.
Regulation 2.05 specifies kinds of perfluorocarbons for the purpose of supplementing the definition of greenhouse gas given in section 7 of the NGER Act. Item [48] removes regulation 2.05 because the full definition is also now included in the NGER Act.
Regulation 2.07 specifies kinds of oil or gas extraction activities for the purpose of supplementing the definition of greenhouse gas given in section 7 of the NGER Act. Item [48] removes regulation 2.07 because the full definition is also now included in the NGER Act.
Item 49 - Division 2.3
Item [49] removes Division 2.3, which contained the rules that must be followed for nominating the responsible entity for the facilities of a joint venture or partnership; and, the rules for revoking a nomination. Before the introduction of the carbon pricing mechanism, the responsible entity was required to report on behalf of the joint venture or partnership. The controlling corporation of the person with operational control is responsible for reporting. Under the Clean Energy Future Legislative Package, this is now the case for Joint Ventures, Partnerships and Trusts. Where no particular person has the greatest authority to introduce and implement operational and environmental policies, persons must nominate operational control.
Item [58] describes a related amendment that sets out the information to be provided in a nomination of operational control.
Division 2.4 Facilities: section 9
Item 50 - Regulation 2.13A
Item [50] removes regulation 2.13A, which defined corporation for the purposes of Division 2.4. This Division is amended so that it applies to all persons now covered by the NGER Act, rather than just corporations as was previously the case.
Items 51-56
Items [51] through [56] amend Division 2.4 to replace references to corporations with references to persons and also in some cases make technical amendments to replace the number '1' with the word 'one' in accordance with current drafting practice.
Item 57 - Paragraphs 2.20 (2) (a) to (e)
Item [57] adds the pipeline and other transport sector to the list of industry sectors in subregulation 2.20 (2). Item [57] also alters the order of the industry sectors so that they appear in alphabetical order as they do in Schedule 1.
Division 2.5 Meaning of terms in section 10 of the Act
Item 58 - Division 2.5
Item [58] restructures Division 2.5 so that the definitions of scope 1 emissions, scope 2 emissions, production and consumption are each the subject of a subregulation. Items [11], [36], [41] and [42] change the relevant definitions in regulation 1.03 to reflect this.
The distinction between scope 1 emissions and scope 2 emissions is required because reporting of scope 1 emissions and scope 2 emissions occurs under different sections of the Act. Items [70] through to [89] describe related amendments that set out reporting requirements in relation to scope 1 emissions and scope 2 emissions.
Division 2.6 Operational control - information to accompany nomination
Item [58] also inserts Division 2.6, which sets out the
information to accompany a nomination for operational control. Item [49] describes a related amendment that removes the rules that applied before
the carbon pricing mechanism.
Part 3 Registration
Division 3.2 Requirements for applications
Items [58] through [65] sets out the information required for registration under the NGER Act by liable entities.
Before the CE Act, the concept of a liable entity was not relevant and only controlling corporations were required to register.
Under the carbon pricing mechanism, controlling corporations and liable entities will make applications for registration. Items [58] through [65] amend Division 3.2 to provide separate registration requirements for controlling corporations and liable entities.
Application by controlling corporation - content of application
Item 59 - Regulation 3.02, heading
Item [59] changes the heading of regulation 3.02 from Requirements for applications for registration - contents of applications to Application by controlling corporation - content of application to provide greater clarity.
Item 60 - Paragraph 3.02 (1) (c)
Item [60] amends the requirements for registration under the NGER Act by a controlling corporation so that the details of an executive officer (or equivalent) are required in the application. Previously, the details of the chief executive officer (or equivalent) were required. This amendment was needed because some organisations have a series of executive officers rather than a chief executive officer.
Item 61 - Subparagraph 3.02 (1) (e) (ii)
Item [61] replaces a full stop with a colon to create a chapeau for the clauses that are added by Item [62].
Item 62 - After paragraph 3.02 (1) (e)
Item [62] requires a controlling corporation that applies for registration as a controlling corporation to include in their application:
• a statement about whether they are, or are likely to become, a liable entity;
• their personal identification number if they have one; and
• contact details of an Australian contact person, if the controlling corporation is a foreign person.
Item [33] describes a related amendment that defines personal identification number.
Item 63 - After subregulation 3.02 (2)
Item [63] further amends regulation 3.02 so that a controlling corporation does not have to provide any of the information that they provided in an application for registration as a liable entity when they apply for registration as a controlling corporation, if the information has not changed.
Item 64 - Regulation 3.03, heading
Item [64] changes the heading of regulation 3.03 from Requirements for applications for registration - form of applications to Application by controlling corporation - form of application for greater clarity.
Application by liable entity - content of application
Item 65 - After regulation 3.03
Item [65] sets out the information that must be provided in an application for registration as a liable entity under the NGER Act.
Among other things, a person will be required to provide their personal identification number in their application, if one has been issued to them. Item [33] describes a related amendment that defines personal identification number.
Division 3.3 National Greenhouse and Energy Register
Item 66 - Divisions 3.3 and 3.4
Item [66] revises regulation 3.04 that sets out the information that must be stored on the National Greenhouse and Energy Register, so that it applies to controlling corporations and liable entities. Before the introduction of the carbon pricing mechanism, the Register only applied to controlling corporations.
Item [66] also revises regulation 3.05 that sets out the information that must be provided in applications for deregistration from the NGER Act, so that the regulation applies to controlling corporations and liable entities.
Before the introduction of the carbon pricing mechanism, the NGER Act only applied to controlling corporations.
Among other things, a person is be required to provide their personal identification number in their application. Item [33] describes a related amendment that defines personal identification number.
Items [67] through [121] set out proposed amendments to the reporting obligations under the NGER Scheme associated with various forms of liability.
Before the introduction of the carbon pricing mechanism, the only reporting obligations that existed under the NGER Scheme were for controlling corporations. As a consequence of the amendments to the NGER Scheme that will support the carbon pricing mechanism, reporting obligations have been created for liable entities, and associated arrangements have been made to allow the transfer of liabilities and reporting obligations.
Item 67 - Part 4, heading
Item [67] changes the heading of Part 4 from Obligations of registered corporations etc to Reporting obligations. The proposed amendment reflects that both liable entities and registered corporations now have reporting obligations.
Item 68 - Regulation 4.01
Item [68] amends the statement of the purpose of Part 4 to account for the new reporting obligations under the NGER Act.
Item 69 - Divisions 4.2 and 4.3
Item [69] revises Division 4.2 so that it introduces the new regulations that set out the information that must be included in a report to the Regulator under the following sections of the NGER Act:
• section 19 (controlling corporation report);
• section 22A (liable entity final report);
• section 22AA (liable entity interim report);
• section 22E (liability transfer certificate holder report)
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group).
Division 4.3 - General information about persons and facilities
Item [69] causes the following changes to Division 4.3:
• it makes separate regulations for general information that must be provided about the reporter, and general information about facilities that they are reporting on;
• it expands the regulation setting out requirements for general information, so that it could apply to liable entities and registered corporations;
• it slightly increases the amount of identifying information that must be provided about a facility;
• it requires a brief description of the location and activities that constitute a transport facility or network or pipeline facility, if the facility does not have a street address. It further requires that a facility identification number is provided, if one has been issued, for the transport facility or network or pipeline facility. This amendment is required so that it will be possible to distinguish between facilities from the same state and industry if they do not have a street address;
• to facilitate compliance activities, it requires that a controlling corporation report under section 19 of the NGER Act includes a statement about any of the controlling corporation's reporting obligations that have been transferred to members of their corporate group under section 22X of the NGER Act. This statement is only required if the controlling corporation's reporting obligations for one or more, but not all, of the facilities in their corporate group have been transferred to another member of the corporate group under section 22X of the NGER Act; and
• it removes the thresholds that specified the provisions that apply to the types of facilities within a corporate group. Item [71] describes a related amendment that reinserts those specifications to Division 4.4.
Item 70 - Division 4.4, heading
Item [70] changes the heading of Division 4.4 from Reporting emissions, energy production and energy consumption to Reporting scope 1 emissions, scope 2 emissions, energy production and energy consumption, as a consequence of the new definitions for scope 1 emissions and scope 2 emissions that are inserted by items [41], [42] and [58].
Division 4.4 does not apply to liable entity interim reports submitted under section 22AA of the NGER Act because the amount of detail required by Division 4.4 is not needed for a liable entity interim report. Item [119] describes a related amendment that inserts subdivision 4.6A.4 which deals with the additional reporting requirements for liable entities including interim reports.
Item 71 - Subdivisions 4.4.1 and 4.4.2
Item [71] provides that Division 4.4 only applies to the following reports required under the NGER Act:
• section 19 (controlling corporation report);
• section 22A (liable entity final report);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group).
Item [71] inserts the thresholds that item [69] removes from Division 4.3. The thresholds are used to determine which facilities are to be included in a controlling corporation report under section 19 of the NGER Act.
Item [71] also allows participants in a designated joint venture that are required to submit a liable entity final report under section 22A of the NGER Act to refer to the details provided in a liable entity final report by another participant of the joint venture, rather than providing those details themselves.
Subdivision 4.4.2 Scope 1 emissions from fuel combustion
Regulation 4.07 specifies information requirements for reports in relation to the operation of facilities which result in emissions from the combustion of fuels. Item [71] amends regulation 4.07 so that the following reports under the NGER Act must include information on scope 1 emissions resulting from fuel combustion:
• section 19 (controlling corporation report);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group),
because all of these reports have legislative obligations to report scope 1 emissions resulting from fuel combustion.
Item [71] also amends regulation 4.07 so that a liable entity final report submitted under section 22A of the NGER Act needs to include emissions that are covered under section 30 of the CE Act. Emissions that are covered under section 30 of the CE Act are a subset of scope 1 emissions.
Subdivision 4.4.3 Scope 1 emissions from particular sources
Item 72 - Subdivision 4.4.3, heading
Item [72] changes the subdivision heading from Greenhouse gas emissions from particular sources to Scope 1 emissions from particular sources.
Item 73 - Regulations 4.09 to 4.11
Regulation 4.09 sets out the purpose of subdivision 4.4.3, which is to specify the information that must be provided about facilities which have emissions from the sources specified in this subdivision.
Item [73] amends regulation 4.09 so that reports provided under the following sections of the NGER Act:
• section 19 (controlling corporation report);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group),
need to include the relevant matters to be identified for all scope 1 emissions, including all emissions from the operation of a landfill facility. This information supports the methods included in the Measurement Determination.
Item [73] also amends regulation 4.09 so that a liable entity final report submitted under section 22A of the NGER Act needs to include the matters to be identified for all emissions that are covered under section 30 of the CE Act in relation to legacy emissions and exempt landfill emissions from the operation of a landfill facility. The requirement to report both covered and legacy/exempt landfill emissions is important in the context of determining whether a landfill facility triggers a liability threshold mentioned in Part 3 of the CE Act.
Regulation 4.10 specifies the information about coal mine facilities that must be provided in the reports covered by subdivision 4.4.3.
Item [73] makes the following changes to regulation 4.10:
• it replaces the heading Greenhouse gas emissions - coal mining with Emissions - coal mining;
• it requires identification of the type of the source of the emissions;
• it requires reporting of the total amount of greenhouse gas in CO2-e; and
• it exempts liable entity final reports submitted under section 22A of the NGER Act from including the matters to be identified for decommissioned underground mines.
Regulation 4.10 currently includes a table of matters to be identified for various sources of emissions and each of the methods that could be used to calculate those emissions. Item [73] removes the content of that table from regulation 4.10 and item [138] inserts the content of that table into to Part 1 of the new Schedule 3 to the Regulations.
Emissions - oil and gas
Regulation 4.11 specifies the information that must be provided about certain oil and gas activities in the reports covered by subdivision 4.4.3.
Item [73] makes the following changes to regulation 4.11:
• it replaces the heading Greenhouse gas emissions - oil and gas with Emissions - oil and gas;
• it requires identification of the type of the source of emissions;
• it requires reporting of the total amount of greenhouse gas in CO2-e; and
• it replaces greenhouse gas emissions with emissions.
Regulation 4.11 currently includes a table of matters to be identified for various sources of emissions and each of the methods that could be used to calculate those emissions. Item [73] removes the content of that table from regulation 4.11 and item [138] inserts the content of that table into to Part 1 of the new Schedule 3 to the Regulations.
Emissions - carbon capture and storage
Item 74 - Regulation 4.12, heading
Regulation 4.12 specifies the information that must be provided about facilities involved in carbon capture and storage in reports covered by subdivision 4.4.3. Item [74] changes the heading of regulation 4.12 from Greenhouse gas emissions - carbon capture and storage to Emissions - carbon capture and storage.
Item 75 - Subregulation 4.12 (2)
Item [75] removes the term corporation's from regulation 4.12 so that the regulation could apply to legal persons. The amendment reflects the expansion of the application of the NGER Act to incorporate liable entities in addition to controlling corporations.
Item 76 - Subregulation 4.12 (3)
Item [76] makes the following changes to subregulation 4.12 (3):
• it requires identification of the type of the source of emissions;
• it requires identification of the methods in the Measurement Determination used by the person to estimate the emissions from the source;
• it requires reporting of the total amount of greenhouse gas in CO2-e; and
• it replaces greenhouse gas emissions with emissions.
Item 77 - Regulations 4.13 to 4.15
Item [77] amends regulations 4.13 through 4.15. These regulations set out the information that must be provided about facilities involved in the production of certain mineral products, chemical products and metal products in the reports covered by subdivision 4.4.3.
Regulation 4.13 specifies information that must be provided about facilities involved in the production of certain mineral products in the reports covered by subdivision 4.4.3.
Item [77] makes the following changes to regulation 4.13:
• it replaces the heading Greenhouse gas emissions - mineral products with Emissions - mineral products;
• it requires identification of the type of the source of emissions; and
• it requires reporting of the total amount of greenhouse gas in CO2-e.
These changes allow the Regulator to better identify and monitor emissions from the sources specified in the regulation.
Regulation 4.13 currently includes a table of matters to be identified for various sources of emissions and each of the methods that could be used to calculate those emissions. Item [77] removes the content of that table from regulation 4.13 and item [138] inserts the content of that table into to Part 1 of the new Schedule 3 to the Regulations.
By referring to Part 3 of the new Schedule 3 that item [138] inserts, item [77] amends the matters to be identified for soda ash production to require reporting of the consumption of carbonates when there are greenhouse gas emissions from the consumption of carbonates. Item [77] also clarifies that fuel specific emissions factors must be provided for each facility.
This amendment delivers consistency in the reporting of emissions that are measured using a carbon balance methodology.
Regulation 4.14 specifies the information that must be provided about facilities involved in the production of certain chemical products in the reports covered by subdivision 4.4.3.
Item [77] makes the following changes to regulation 4.14:
• it replaces the heading Greenhouse gas emissions - chemical products with Emissions - chemical products;
• it require identification of the type of the source of the emissions; and
• it requires reporting of the total amount of greenhouse gas emissions in CO2-e.
These changes allow the Regulator to better identify and monitor emissions from the sources specified in the regulation.
Regulation 4.14 currently includes a table of matters to be identified for various sources of emissions and each of the methods that could be used to calculate those emissions. Item [77] removes the content of that table from regulation 4.14 and item [138] inserts the content of that table into to Part 1 of the new Schedule 3 to the Regulations.
By referring to Part 4 of the new Schedule 3, item [77]:
• amends the matters to be identified for ammonia production to clarify that fuel specific emissions factors must be provided for each facility when using methods 2, 3 or 4 in the Measurement Determination;
• amends the matters to be identified for nitric acid production to clarify that a fuel specific emissions factors must be provided for each facility when using methods 2, 3 or 4 in the Measurement Determination.
• Requires the reporting of additional matters to be identified for chemical or mineral production, other than carbide production, using a carbon reductant to reflect revisions to the Measurement Determination.
These changes allow the Regulator to better identify and monitor emissions from the sources specified in the regulation.
Emissions - metal products
Regulation 4.15 specifies the information that must be provided about facilities involved in the production of certain metal products in the reports covered by subdivision 4.4.3. Item [77] makes the following changes to subregulations 4.15 (1) & (2):
* it replaces the heading Greenhouse gas emissions - metal products with Emissions - metal products;
* it removes references to corporation so that the regulation applies to corporations and persons;
* it replaces references to greenhouse gas emissions with emissions;
* it requires identification of the type of the source of the emissions; and
- it requires reporting of the total amount of greenhouse gas emissions in CO2-e.
These changes allow the Regulator to better identify and monitor emissions from the sources specified in the regulation.
Regulation 4.15 currently includes a table of matters to be identified for various sources of emissions and each of the methods that could be used to calculate those emissions. Item [77] removes the content of that table from regulation 4.15 and item [138] inserts the content of that table into to Part 1 of the new Schedule 3 to the Regulations.
By referring to Part 5 of the new Schedule 3, item [77] also inserts a number of new matters to be identified for Iron, steel or other metal production using an integrated metalworks; Feroalloys production; and Production of other metals to reflect revisions to the Measurement Determination.
Emissions - hydrofluorocarbons and sulphur hexafluoride gases
Item 78 - Regulation 4.16, heading
Regulation 4.16 specifies the information that must be provided about facilities where the operation of certain equipment results in reportable emissions, in the reports covered by subdivision 4.4.3.
Item [78] changes the heading of regulation 4.16 from Greenhouse gas emissions - hydrofluorocarbons and sulphur hexafluoride gases to Emissions - hydrofluorocarbons and sulphur hexafluoride gases.
Item 79 - Subregulation 4.16 (1)
Item [79] makes the following changes to subregulation 4.16 (1):
* it removes references to corporations so that regulation 4.16 can apply to corporations and persons; and
* it inserts a provision that has the effect that regulation 4.16 does not apply to liable entity final reports submitted under section 22A of the NGER Act.
Item 80 - Subregulation 4.16 (2)
Item [80] removes the reference to corporation's so that regulation 4.16 could apply to persons and corporations. The amendment reflects the expansion of the application of the NGER Act to incorporate liable entities in addition to controlling corporations.
Emissions - waste
Item 81 - Regulations 4.17 and 4.17A
Item [81] deals with proposed changes to regulations 4.17 and 4.17A, which specify the information that must be provided about facilities with emissions resulting from the disposal of waste, in the reports covered by subdivision 4.4.3.
Item [81] makes the following changes to regulation 4.17:
* it replaces the heading Greenhouse gas emissions - waste with Emissions - waste; and
* it removes references to corporations so that regulation 4.17 applies to liable entities in addition to controlling corporations.
Regulation 4.17 currently includes a table of matters to be identified for various sources of emissions and each of the methods that could be used to calculate those emissions. Item [81] removes the content of that table from regulation 4.17 and item [138] inserts the content of that table into to Part 1 of the new Schedule 3 to the Regulations.
By referring to Part 6 of the new Schedule 3, item [81] makes the following changes to the matters to be identified for solid waste disposal on land:
* it inserts requirements for legacy and non-legacy emissions to be identified and reported; and
* it inserts provisions that reflect updates to the Measurement Determination that will allow landfill operators to take better account of the effects of climate and waste types on the rate of decomposition and emissions.
These changes allow the Regulator to better identify and monitor emissions from the sources specified in the regulation.
In addition, by referring to Part 6 of the new Schedule 3, item [81] makes the following changes to the matters to be identified for wastewater handling (domestic or commercial):
• it replaces production of electricity on site with combustion on site, for consistency with the Measurement Determination; and
• it requires that the amount of COD that is removed as sludge is reported in tonnes rather than as a fraction of the initial amount.
These changes allow the Regulator to better identify and monitor emissions from the sources specified in the regulation.
Regulation 4.17A requires that reports must include the amount of uncertainty associated with the estimate of scope 1 emissions. Item [81] amends regulation 4.17A to require that the amount of uncertainty is included in the following reports:
• section 19 (controlling corporation report);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group).
Subdivision 4.4.4 Energy Production
Item 82 - Regulation 4.18
The Energy Production subdivision specifies the information about facilities that produce energy that must be reported. Item [82] has the effect of applying the Energy Production subdivision to the following reports:
• section 19 (controlling corporation report);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group).
The Energy Production subdivision applies to these reports because the NGER Act continues to have objectives that are additional to underpinning the CE Act. These objectives include: informing government policy formulation, meeting Australia's international reporting obligations; and, assisting Commonwealth, State and Territory government programs and activities.
The Energy Production subdivision does not apply to liable entity final reports submitted under section 22A of the NGER Act. This is because information about energy production is not needed to determine liability under the carbon pricing mechanism.
Item [82] also removes references to corporations so that the Energy Production subdivision could apply to all legal persons. The amendment reflects the expansion of the NGER Act to incorporate liable entities in addition to controlling corporations.
Item 83 - Regulation 4.19
Item [83] replaces references to corporations with references to persons so that the Energy Production subdivision can apply to all legal persons.
Item 84 - Subregulations 4.20 (1) and (2)
Item [84] removes references to corporation's so that the Energy Production subdivision can apply to all legal persons.
Subdivision 4.4.5 Energy Consumption
Item 85 - Regulations 4.21 and 4.22
The Energy Consumption subdivision specifies information requirements for reports where the operation of a facility consumes energy. Item [85] amends the Energy Consumption subdivision so that a liable entity final report provided under section 22A of the NGER Act needs to include the amounts, types and energy content of energy consumed by means of combustion that lead to covered emissions, and the criteria and methods of the Measurement Determination that were used. This information will be collected for the purpose of calculating emissions.
The existing detailed reporting requirements of the Energy Consumption subdivision will continue to apply to the following reports:
• section 19 (controlling corporation report);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group).
The Energy Consumption subdivision applies to these reports because the NGER Act continues to have objectives that are additional to underpinning the CE Act. These objectives include: informing government policy formulation, meeting Australia's international reporting obligations, and assisting Commonwealth, State and Territory government programs and activities.
Item [85] also amends regulation 4.21 so that the Energy Consumption subdivision can apply to all legal persons. The amendment reflects the expansion of the NGER Act to incorporate liable entities in addition to controlling corporations.
Consumption of energy if both electricity and another product are produced
Item 86 - Subregulation 4.23 (1)
Regulation 4.23 specifies information requirements for reports where the operation of a facility consumes energy in a cogeneration process. Item [86] replace references to corporations with references to persons so that regulation 4.23 can apply to all legal persons.
Item 87 - After subregulation 4.23 (1)
Item [87] amends regulation 4.23 so that it does not apply to liable entity final reports submitted under section 22A of the NGER Act. This is because liable entity final reports focus on covered emissions, and the amount of energy consumed in a cogeneration process does not contribute to covered emissions.
Item 88 - Subregulation 4.23 (2)
Item [88] removes a reference to corporation's so that regulation 4.23 can apply to all legal persons. The proposed amendment reflects the expansion of the application of the NGER Act to incorporate liable entities in addition to controlling corporations.
Primary or secondary fuels or energy commodities
Item 89 - After regulation 4.23
Item [89] inserts a new regulation that requires reports under the following sections of the NGER Act:
• section 19 (controlling corporation report);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group),
to nominate fuels or energy commodities that are produced at the facility as either primary or secondary if they are not already classified as primary or secondary in Schedule 1 of the Regulations.
Items [35], [43], [128] and [137] describe related amendments that allow energy consumption to be adjusted for secondary fuel production, based in part on classification of fuels and other energy as primary or secondary.
Division 4.5 Other reporting requirements
Item 90 - Regulation 4.24
Division 4.5 specifies options to simplify reporting that are available under particular circumstances. Item [90] amends Division 4.5 so that it will now apply to the following reports submitted under the NGER Act:
• section 19 (controlling corporation report);
• section 22A (liable entity final report);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group).
Division 4.5 does not apply to liable entity interim reports submitted under section 22AA of the NGER Act because the level of detail required by Division 4.5 is not needed for a liable entity interim report. Item [119] inserts subdivision 4.6A.4 which deals with the requirements for liable entity interim reports.
Reporting aggregated amounts from facilities
Item 91 - Subregulation 4.25 (1)
Regulation 4.25 sets out the conditions under which amounts from multiple facilities within a corporate group may be reported as an aggregated amount. Item [91] amends regulation 4.25 so that this reporting option is available for:
• controlling corporation reports provided under section 19 of the NGER Act; and
• reporting obligations transferred to a corporate group member under section 22X of the NGER Act.
Allowing reporting of aggregated amounts in reports under other sections would not be appropriate as those sections do not relate to corporate group reporting.
Item 92 - Subparagraph 4.25 (3) (c) (ii)
Item [92] inserts the requirement that for transport facilities and network or pipeline facilities, a brief description of the activities constituting the facility must be provided if the facility does not have a street address. This amendment allows the Regulator to distinguish between these facilities that do not have street addresses.
Reporting percentages of emissions and energy
Item 93 - Subregulation 4.26 (1)
Regulation 4.26 sets out requirements for reporting on facilities that comprise a small percentage of a corporation's emissions and energy. Item [93] amends regulation 4.26 so that this reporting option is only available for a controlling corporation report provided under section 19 of the NGER Act. This is because the totals of emissions and energy of a corporate group are required to report percentages of emissions and energy and this information is unlikely to be readily available to other members of the corporate group.
Item 94 - After subregulation 4.26 (1)
Item [94] inserts a note to clarify that the reporting option under regulation 4.26 is not available under the following sections of the NGER Act:
• section 22A (liable entity final report);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group).
The note also provides clarification that emissions reported in a report under section 22X of the NGER Act count towards the corporate group's total greenhouse gas emissions.
Reporting about incidental emissions and energy
Item 95 - Subregulation 4.27 (1)
Regulation 4.27 sets out requirements for reporting incidental emissions and incidental energy consumption or production. Item [95] amends regulation 4.27 to allow reports provided under any of the following sections of the NGER Act:
• section 19 (controlling corporation);
• section 22A (liable entity final report);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group),
to include an estimated figure for a portion of their energy consumption, production or greenhouse gas emissions that is considered to be incidental to the total of those figures. This will help streamline reporting obligations under those sections.
Item 96 - Subregulation 4.27 (2)
Item [96] also amends regulation 4.27 so that this incidental reporting option is available for:
• greenhouse gas emissions reported in a liable entity final report submitted under section 22A of the NGER Act; and
• the consumption and production of energy in a report under the following sections of the NGER Act:
- section 19 (controlling corporation);
- section 22E (liability transfer certificate holder report);
- section 22G (reporting transfer certificate holder report); and
- section 22X (report transferred to another member of the corporate group).
Item [96] has the effect of preventing this incidental reporting option from being used in a liable entity final report submitted under section 22A of the NGER Act unless the report for the same facility under any of the following sections of the NGER Act also includes incidental emissions or energy:
• section 19 (controlling corporation);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); or
• section 22X (report transferred to another member of the corporate group).
Items 97-108 - Subregulations 4.27 (5), (6) and (7)
Items [97] through [99] change the focus in determining the threshold of what is 'incidental' under subregulation 4.27 (5), from one that looks only at sources of emissions to one that looks also at consumption of a particular fuel or energy commodity.
Items [101] through [103] change the focus in determining the threshold of what is 'incidental' under subregulation 4.27 (6), from one that looks at sources of consumption to one that looks at consumption of fuels or energy commodities.
Items [105] through [107] change the focus in determining the threshold of what is 'incidental' under subregulation 4.27 (7), from one that looks at sources of production to one that looks at production of fuels or energy commodities.
These amendments to subregulations 4.27 (5) through (7) help clarify the way thresholds are determined for incidental reporting. That is because source has a specific meaning within the Measurement Determination, and this meaning does not include energy production or consumption. Focusing consideration on different fuels or energy commodities, in determining the threshold, brings the consideration of incidental reporting thresholds more closely into alignment with Schedule 1 of the Regulations and the Measurement Determination.
A person who makes use of regulation 4.27 must make a statement that measurement, using another method or criteria, of the emissions, energy consumption or energy production that are considered to be incidental will cause them significant hardship or expense. Items [100], [104] and [108] amend subregulations 4.27 (5) through (7) so that it must also be reasonable to conclude that this statement is true. This will ensure use of the reporting option in regulation 4.27 is reserved for circumstances where the reporting obligation would otherwise be unduly burdensome.
Reporting for facilities that are networks and pipeline facilities
Item 109 Regulation 4.28, heading
Item [109] changes the heading of regulation 4.28 from Reporting for facilities that are networks and pipelines to Reporting for facilities that are network or pipeline facilities.
Item 110 - Subregulation 4.28 (1)
Regulation 4.28 sets out reporting requirements for when a network or pipeline facility is spread across more than one State or Territory. Item [110] amends regulation 4.28 so that it applies to the following reports under the NGER Act:
• section 19 (controlling corporation);
• section 22A (liable entity final report);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group).
Item [110] also switches the order of the sectors listed in paragraph 4.28 (1) (a) so that they appear in alphabetical order as they do in Schedule 1.
Reporting for facilities that are vertically integrated production processes
Item 111 - Subregulations 4.29 (1) and (2)
Regulation 4.29 sets out reporting requirements for vertically integrated production processes. Item [111] amends regulation 4.29 so that it applies to reports submitted under the following sections of the NGER Act:
• section 19 (controlling corporation);
• section 22A (liable entity final report);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group).
Item [111] also replaces references to corporation with person so that regulation 4.29 can apply to entities that are legal persons.
Item 112 - Subregulation 4.29 (3A) and (5)
Item [112] also removes references to corporation so that subregulations 4.29 (3A) and (5) can apply to all entities that are legal persons.
Item 113 - Subregulation 4.29 (6), note
Item [113] removes the note. This is a consequential amendment resulting from expanding the area of operation of the NGER Scheme and the Clean Energy Legislative Package to include all activities within the exclusive economic zone.
Item 114 - Subregulation 4.30 (1)
Regulation 4.30 sets out reporting requirements for when a contractor conducts activities that form part of a facility and that cause a threshold to be triggered. Item [114] amends regulation 4.30 so that it apply to the following reports submitted under the NGER Act:
• section 19 (controlling corporation);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group).
Item 115 - After subregulation 4.30 (1)
Item [115] inserts a note to clarify that regulation 4.30 does not apply to liable entity final reports submitted under section 22A of the NGER Act.
Reporting a change in a principal activity for facility
Item 116 - Subregulation 4.31 (1)
Regulation 4.31 sets out reporting requirements for when a principal activity for a facility ceases to be the principal activity. Item [116] amends regulation 4.31 so that it applies to the following reports submitted under the NGER Act:
• section 19 (controlling corporation);
• section 22A (liable entity final report);
• section 22E (liability transfer certificate holder report);
• section 22G (reporting transfer certificate holder report); and
• section 22X (report transferred to another member of the corporate group).
Item [116] also replaces references to corporations with persons so that regulation 4.31 could apply to all legal persons.
Item 117 - Subregulation 4.31 (3)
Item [117] also replaces references to corporations with persons so that subregulation 4.31 (3) could apply to all legal persons.
Division 4.6 No thresholds met
Item 118 - Regulation 4.32
Regulation 4.32 provides that where a corporation's group does not meet any of the thresholds in section 13 of the NGER Act the corporation's report must include a statement to that effect. Item [118] amends regulation 4.32 to clarify that the regulation applies to controlling corporation reports submitted under section 19 of the NGER Act.
Division 4.6A Additional information for reports under section 22A or 22AA of Act
Item 119 - After Division 4.6
Item [119] inserts a new Division that sets out additional information to be provided in the following reports submitted under the NGER Act:
• section 22A (liable entity final report); and
• section 22AA (liable entity interim report).
Subdivision 4.6A.2 Reports under section 22A or 22AA of Act
Item [119] (new regulation 4.32C) provides that reports under section 22A or section 22AA must include statements about:
• the sections of Part 3 of the CE Act under which the person is a liable entity;
• the portion of the year that the person or joint venture had operational control of the facility; and
• liability transfer certificates that have been issued to the person.
Providing this additional information will allow the Regulator to easily identify the basis upon which the entity is reporting, whether under section 22A or section 22AA.
Item [119] (new regulation 4.32D) also requires a person to state their Obligation Transfer Number (OTN), where applicable, in their section 22A or section 22AA report.
Subdivision 4.6A.3 Reports under section 22A of Act
Item [119] (new subdivision 4.6A.3) sets out the information that needs to be provided in liable entity final reports submitted under section 22A of the NGER Act. It contains general provisions that relate to all liable entity final reports, including providing provisional emission numbers and an emission number (regulation 4.32F) as explicitly anticipated by section 22A of the NGER Act.
It also contains provisions that are specific to the following situations:
• designated joint ventures (regulation 4.32G). This information is required to allow the Regulator to identify facilities controlled by joint ventures, and to allow the Regulator to allocate liability for emissions between joint venture participants;
• facilities in the Joint Petroleum Development Area or Greater Sunrise unit area (regulation 4.32H). This information is required to allow the Regulator to identify facilities within either area, and the allocation of emissions liability to those facilities;
• large gas consuming facilities (LGCFs) (regulation 4.32J). This information is required to allow the Regulator to identify gas supplied to LGCFs under OTNs, noting that detailed natural gas consumption information will be reported under the general direct emitter reporting provisions (i.e. subdivisions 4.4.2, 4.4.3 and 4.4.5);
• potential greenhouse gas emissions embodied in an amount of natural gas - natural gas supplier (regulation 4.32K). This information is required to allow the Regulator to identify potential emissions for which a natural gas supplier is liable. This information will also allow the Regulator to check if natural gas supply is broadly similar to natural gas usage, which will assist in identifying any potential areas of non-compliance; and
• potential greenhouse gas emissions embodied in an amount of natural gas - OTN holder (regulation 4.32L). This information is required to allow the Regulator to identify potential emissions for which an OTN holder is liable.
Subdivision 4.6A.4 Reports under section 22AA of Act
Item [119] also sets out the information that must be provided in a liable entity interim report submitted under section 22AA of the NGER Act, (regulation 4.32N). Under this amendment, a person needs to report their provisional emissions numbers from the previous year if their interim emissions number is based on them. In addition, if the person's interim emissions number is an estimate, the report also needs to contain an explanation the basis of the estimate.
In relation to natural gas suppliers and OTN holders, the reporting requirements are streamlined, acknowledging that the interim emissions number is based on actual natural gas supplied in the period from 1 July to 31 March in that financial year.
Division 4.7 Reporting of information by another person
Item 120 - Regulation 4.33, heading
Item [120] changes the heading of regulation 4.33 from Application for a determination to Application for a determination - form.
Item 121 - After Division 4.7
Item [121] inserts new Division 4.8 and new regulation 4.34, which creates the requirement that records kept to support reports provided under the NGER Act must be quickly and easily accessible for audit. This will help to ensure that audits can be carried out in a timely and effective manner.
Part 5 Disclosure of information
Items [122] through [126] amend Part 5 so that it will not be affected by changes in the name of government departments. Item [126] also adds to the list of specified agencies to which NGER data can be disclosed (section 26(1) of the NGER Act refers). These agencies will all have responsibility for administering programs, or collecting statistics, relating to greenhouse gas emissions, energy consumption or energy production.
Item 122 - Paragraph 5.02 (1) (a)
Item [122] amends the list of specified persons for disclosure of information, with the exception of the reference to the Treasurer, so that it refers to ministers with responsibility for particular Acts rather than ministers of particular Departments.
Item 123 - Paragraph 5.02 (1) (b)
Item [123] further amends the list of specified persons for disclosure of information so that it refers to the secretaries of the Departments administered by the minister in paragraph 5.2 (1) (a) rather than the secretaries of particular Departments.
Item 124 - After paragraph 5.02 (1) (d)
Item [124] further amends the list of specified persons for disclosure of information so that it includes "an official of the Regulator".
Item 125 - Subparagraph 5.02 (1) (e) (vi)
Item [125] replaces a reference to the Trade Practices Act 1974 with a reference to the Competition and Consumer Act 2010 to reflect the renaming of the Trade Practices Act 1974 on 1 January 2011.
Item 126 - Subparagraph 5.02 (1) (e) (vii) to (xv)
Item [126] further amends the list of specified persons for disclosure of information so that it includes:
• the Executive Director and APS employees of the Bureau of Resource and Energy Economics;
• APS employees of the Department of the minister with responsibility for the NGER Act performing related work;
• APS employees of the Department of the minister with responsibility for the Environmental Protection and Biodiversity Conservation Act 1999;
• APS employees of the Department of the minister with responsibility for the Energy Efficiency Opportunities Act 2006; and
• APS employees of the Treasury.
Item 127 - Subregulation 5.02 (2)
Item [127] removes the definition of National Greenhouse Accounts from subregulation 5.02 (2), as this definition is no longer required as a result of the restructuring done by item [126].
Division 5.3 Adjusting energy consumption
Item 128 - After Division 5.2
Item [128] inserts new Division 5.3 Adjusting energy consumption. This Division sets out the method of adjusting a corporation's total energy consumption that is referred to in subparagraph 24 (1) (c) (ii) of the NGER Act.
Adjusting energy consumption figures recognises that in some circumstances, the total (unadjusted) energy consumption figure may not accurately represent a corporation's actual energy consumption.
The method is:
|
Total energy consumption |
-- |
Secondary fuels & energy commodities produced |
= |
Net Energy |
Items [35], [43], [89], and [137] describe related amendments that allow energy consumption to be adjusted for secondary fuel production.
Division 6.2 Other information required
Section 54 of the NGER Act allows the Regulator to declare that an activity or series of activities is a facility in response to an application by a member of a corporate group, or on the Regulator's own initiative. Section 54A allows the Regulator to declare that an activity or series of activities is a facility in response to an application by a person who is not a member of a corporate group, or on the Regulator's own initiative.
Items [129] through [133] expand the application of Division 6.2 to section 54 and section 54A of the NGER Act. This amendment is required because the other information required in a section 54 application is also required in a section 54A application.
Application under section 54 or 54A of Act - other information required
Item 129 - Regulation 6.02, heading
Item [129] changes the heading of regulation 6.02 from Application under section 54 - other information required to Application under section 54 or 54A of Act - other information required.
Item 130 - Subregulation 6.02 (1)
Item [130] replaces a reference to paragraph 54 (2) (c) with a reference to paragraph 54 (2) (c) and paragraph 54A (2) (b) to reflect the broadening of regulation 6.02 to cover section 54A applications in addition to section 54 applications.
Item 131 - Paragraphs 6.02 (1) (a) to (bb)
Item [131] uses the concept of identifying details to simplify subregulation 6.02.
Item 132 - Paragraphs 6.02 (1) (i) and (j)
Item [132] expands the use of paragraphs 6.02 (1) (i) and (j) to section 54A of the Act, in addition to section 54 of the Act. Currently, these paragraphs require that a statement about further applications on the same site is provided in an application under section 54 of the Act. This amendment is required because the Regulator requires this information if the application was made under section 54A of the Act.
Item 133 - After subregulation 6.02 (1)
Item [133] uses the concept of identifying details to simplify the information that must be provided by the controlling corporation under section 54 or section 54A of the NGER Act. Item [133] also requires similar information from non-group entities that make an application for a facility declaration.
Application under section 55 or 55A of Act - other information required
Section 55 of the NGER Act allows the Regulator to declare that a controlling corporation or member of the controlling corporation's corporate group has operational control of a facility in response to an application by the corporation or member, or on the Regulator's own initiative. Section 55A allows the Regulator to declare that a person who is not a member of a corporate group has operational control of a facility in response to an application by the person, or on the Regulator's own initiative.
Item 134 - Regulation 6.03
Item [134] broadens the application of regulation 6.03 to sections 55 and 55A of the NGER Act. This amendment is required because the Regulator will need the other information required by regulation 6.03 if the application was made under section 55A of the Act.
Division 6.2A Monitoring Compliance
Item 135 - After regulation 6.04
Item [135] inserts a mandatory audit requirement for certain liable entities. Any liable entity with an emissions number exceeding 125,000 units must have a reasonable assurance audit undertaken (as per section 1.6 of the Audit Determination and more generally) by a Category 2 or 3 auditor. The audit must cover the entities' liable entity final report submitted under section 22A of the NGER Act and their compliance with the record keeping requirements of section 22B of the NGER Act.
This reasonable assurance audit requirement, coupled with the 125,000 emission number threshold, is designed to promote the credibility and integrity of the carbon pricing mechanism and to ensure accurate reporting of large liable entities, while limiting the potential compliance costs for smaller liable entities.
The Government will keep this these arrangements under review to ensure that the requirements remain appropriately targeted.
Item 136 - Subdivision 6.6.8 (second mentioned), heading
Item [136] changes the heading Subdivision 6.6.8 Exemptions to Subdivision 6.6.9 Exemptions. This corrects an apparent error in the Regulations that saw two subdivisions numbered 6.6.8.
Schedule 1 Fuels and other energy commodities
Item 137 - Schedule 1
Item [137] amends Schedule 1 - Fuel and other energy commodities so that each fuel is classified as either:
• primary;
• secondary; or
• nomination required.
Items [35], [43], [89] and [128] describe related amendments that allows energy consumption to be adjusted for secondary fuel production.
Schedule 3 Scope 1 emissions from particular sources
Item 138 - After Schedule 2
Item [138] inserts a new Schedule 3 that is referred to in regulations 4.10, 4.11, 4.13, 4.14, 4.15 and 4.17. These regulations previously each set out matters to be identified for sources of emissions and methods used to calculate those emissions. Items [73], [77] and [81] remove these matters to be identified from these regulations and item [138] inserts the matters to be identified into new Schedule 3 at the end of the Regulations.
Item 139 - Further amendments
Item [139] makes further minor consequential or technical amendments to the regulations to reflect:
• the expansion of the NGER Act to incorporate liable entities in addition to controlling corporations; and
• to take account of current drafting policy, such as replacing the number '1' with the word 'one'.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
National Greenhouse and Energy Reporting Amendment Regulation 2012 (No. 1)
This Regulation is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the National Greenhouse and Energy Reporting Amendment Regulation 2012 (No. 1)
The Regulation amends the National Greenhouse and Energy Reporting Regulations 2008 to support amendments made to the National Greenhouse and Energy Reporting Act 2007 by the Clean Energy (Consequential Amendments) Act 2011.
These amendments will extend the existing NGER reporting, monitoring and compliance framework so that it incorporates entities liable under the carbon pricing mechanism.
Human rights implications
The Regulation engages the right to privacy and reputation.
The Regulation provides for the collection of personal information by the Clean Energy Regulator.
While collection of personal information limits the right to privacy, the Regulation is not considered to be incompatible with this right. This is because:
* the information to be collected is necessary for the identification of applicants under the NGER Scheme; and
* the Clean Energy Regulator will be subject to the secrecy provisions in the Clean Energy Regulator Act 2011.
Conclusion
The Regulation is compatible with human rights because, to the extent that it may limit those rights, that limitation is reasonable, necessary and proportionate.
Greg Combet
Minister for Climate Change and Energy Efficiency
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