Clean Energy Regulations 2011
Select Legislative Instrument No. 221, 2011 as amended
made under the
Clean Energy Act 2011
Compilation start date: 26 November 2013
Includes amendments up to: SLI No. 243, 2013
About this compilation
This compilation
This is a compilation of the Clean Energy Regulations 2011 as in force on 26 November 2013. It includes any commenced amendment affecting the legislation to that date.
This compilation was prepared on 26 November 2013.
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.
Uncommenced amendments
The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Modifications
If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.
Provisions ceasing to have effect
If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.
Contents
Part 1—Preliminary
1.1 Name of Regulations
1.2 Commencement
1.3 Definitions—general
1.4 Definition—applicable identification procedure
1.5 Definition—fugitive emissions
1.8 Definition—natural gas supply pipelines
1.9 Definition—withdrawal
1.10 When supply of natural gas occurs
1.11 Electronic notice transmitted to the Regulator
1.12 Requirements for documents
1.13 English translation of documents
1.14 When documents need not be given
Part 3—Liable entities
Division 1—Direct emitters of greenhouse gases
3.1 Prescribed class of waste
3.2 Prescribed distance for landfill facilities
3.3 Adjustment of provisional emissions number—Joint Petroleum Development Area and Greater Sunrise unit area
Division 3—Natural gas
3.5 Netted‑out numbers for OTN holders—transfer of gases between storage areas
3.5A Netted‑out numbers for OTN holders—use of natural gas without combustion
3.5C Application of natural gas to own use
Division 3A—Liquefied petroleum gas, and liquefied natural gas, for non‑transport use
3.5F Amount exempt from preliminary emissions number
3.5G Netted‑out numbers—import of LPG or LNG for non‑transport use
3.5H Netted‑out numbers—manufacture or production of LPG or LNG for non‑transport use
3.5J Netted‑out numbers—supply of LPG or LNG to a person who quotes the person’s OTN
Division 4—Obligation Transfer Numbers
Subdivision 4.1—Requirements for application for OTN
3.6 Application for OTN
3.7 Eligibility information for large gas consuming facility
3.8 Eligibility information for feedstock
3.9 Eligibility information for manufacture of CNG, LNG or LPG
3.10 Eligibility information for location where natural gas to be used
3.10A Eligibility information for mandatory quotation of OTN for supply of LPG or LNG
3.10B Eligibility information for voluntary quotation of OTN for supply of LPG or LNG
Subdivision 4.2—Large gas consuming facilities
3.11 Conditions for ceasing…
Overview
The Clean Energy Regulations 2011 were enacted as a legislative instrument under the Clean Energy Act 2011, commencing on the commencement of sections 3 to 303 of the Act. These Regulations were introduced to address the implementation and administration of the carbon pricing mechanism established under the Act, which was designed to reduce greenhouse gas emissions in Australia and to support industries affected by the carbon price. They provide detailed rules for various aspects of the carbon pricing scheme, including obligations for direct emitters of greenhouse gases, the operation of the Obligation Transfer Number (OTN) system, the Jobs and Competitiveness Program, and the management of carbon units. The Clean Energy Regulations 2011 also detail procedures for the issuance and surrender of carbon units, the calculation of emissions, and the administration of the Opt-in Scheme, which allows entities to opt into the carbon pricing mechanism for certain activities. The Regulations are administered by the Regulator, who is tasked with ensuring compliance with the Act and issuing carbon units to eligible entities.
Scope and Application
The Clean Energy Regulations 2011, made under the Clean Energy Act 2011, apply to a broad range of entities and activities within Australia, particularly those involved in the production, supply, and use of natural gas, liquefied petroleum gas (LPG), and liquefied natural gas (LNG), as well as those engaged in activities that emit greenhouse gases. These regulations govern the obligations of entities such as direct emitters of greenhouse gases, holders of Obligation Transfer Numbers (OTN), and large users of natural gas, and cover transactions involving the supply and use of natural gas and related gases. The regulations also extend to entities participating in the Opt-in Scheme for carbon emissions, designated joint ventures, and those involved in the issuance and use of carbon units. They establish specific definitions, eligibility criteria, and procedural requirements for these activities and entities, including the need for entities to obtain certain certificates and make declarations to the Clean Energy Regulator. Certain types of emissions and transactions are exempt from some of the provisions, such as emissions from the combustion of fuel for the production of heat and emissions released during the extraction of fossil fuels. The regulations provide a framework for the calculation and allocation of emissions units, with specific provisions for different types of facilities and products, and include mechanisms for the transfer, surrender, and relinquishment of these units. The regulations are applicable across Australia and are subject to amendments through subordinate instruments, with specific provisions detailing the circumstances under which applications and declarations can be made, and the conditions under which certain activities may be exempt from certain obligations.
Key Provisions
- The Clean Energy Regulations 2011 establish a framework for the management and regulation of greenhouse gas emissions in Australia. These regulations, which come into effect upon the commencement of the Clean Energy Act 2011, outline specific operational sections and requirements for entities involved in various activities related to emissions. For example, section 1.10 specifies that the supply of natural gas is considered to occur at the moment the gas is withdrawn from a natural gas supply pipeline. The regulations detail the obligations for entities such as Obligation Transfer Number (OTN) holders, who must provide identifying information and documents when applying for an OTN (regulation 3.6). They also establish criteria for determining whether an entity is a liable entity, such as a direct emitter of greenhouse gases (regulation 3.3). Additionally, the regulations set out the conditions under which a facility can cease to be a large gas consuming facility (regulation 3.11), and the process for adjusting provisional emissions numbers (regulation 3.3). In terms of consequences for non-compliance, section 227 of the Act provides for penalties, including fines, for contravention of the record-keeping requirements specified in the regulations.
- The Clean Energy Regulations 2011 impose several obligations and requirements on the parties or entities they govern. For instance, section 3.5 mandates that an OTN holder must quote their OTN in relation to a supply of natural gas to a facility if they are using the gas to manufacture compressed natural gas, liquefied natural gas, or liquefied petroleum gas. Section 3.11A stipulates that a facility will cease to be a large gas consuming facility if the Regulator decides so, based on specific conditions such as the facility's emissions being below a certain threshold. The regulations also require entities to provide various forms of information and documentation when applying for an OTN, including details about the facility, the expected use of natural gas, and the entity's relationship with the facility (regulation 3.6 to 3.10B). Furthermore, entities must adhere to strict record-keeping and reporting requirements (regulation 14.1 to 14.4).
- Under the Clean Energy Regulations 2011, there are several offences and penalties for breaches of the Act. Section 227 of the Clean Energy Act 2011 specifies penalties for contravention of the record-keeping requirements. These penalties can include fines of up to $22,200 for individuals and $111,000 for corporations, depending on the severity and frequency of the breach. Additionally, the regulations outline specific circumstances under which entities must relinquish free carbon units, such as when equipment used for an emissions-intensive trade-exposed activity is closed (regulation 13.02 to 13.07). Failure to comply with these requirements can result in further penalties and the requirement to purchase additional carbon units to cover the shortfall.
- Area of Law
- Environmental Law
- Climate Change Law
- Instrument
- Regulation
- Concepts
- Definitions & Interpretation
- Reporting & Disclosure Obligations
- Regulatory Standards
- Licensing & Registration
- Repeal & Amendment
