Renewable Energy (Electricity) Act 2000

Overview

The Renewable Energy (Electricity) Act 2000, enacted by the Australian Parliament, was introduced to establish and administer a scheme encouraging the generation of additional electricity from renewable energy sources. It aimed to reduce greenhouse gas emissions in the electricity sector, ensure the ecological sustainability of renewable energy sources, and contribute to Australia's greenhouse gas emissions reduction targets. The Act achieves these objectives by issuing certificates for electricity generated from eligible renewable energy sources and requiring certain electricity purchasers, referred to as liable entities, to surrender a specified number of these certificates annually. If a liable entity does not surrender enough certificates, it must pay a renewable energy shortfall charge. The Act also outlines the creation, trading, and extinguishing of renewable energy certificates and provides for the establishment of a clearing house to facilitate the transfer of small-scale technology certificates. Furthermore, it details the responsibilities and powers of the Clean Energy Regulator, including the ability to make civil penalty orders for breaches of civil penalty provisions and to publish information relating to the shortfall charge. The Renewable Energy (Electricity) Act 2000 applies to the year commencing on 1 January 2001 and subsequent years, with no certificates created or liabilities arising for electricity generated on or after 1 January 2031.

Scope and Application

The Renewable Energy (Electricity) Act 2000 (Cth) is an Australian Commonwealth legislation that applies to the year commencing on 1 January 2001 and to all subsequent years, though no certificates can be created, and no liability arises, in respect of electricity generated on or after 1 January 2031. The Act binds the Crown and extends to every external Territory. The Act is concerned with encouraging the additional generation of electricity from renewable energy sources and reducing greenhouse gas emissions in the electricity sector. It does so by establishing a scheme where renewable energy certificates (RECs) are issued for the generation of electricity from eligible renewable energy sources and the installation of small-scale renewable energy technologies such as solar water heaters and small generation units. The Act applies to all persons, entities, and industries engaged in the generation, acquisition, and trading of electricity within the Commonwealth of Australia, including its external Territories. The Act is administered by the Clean Energy Regulator, who is tasked with overseeing the registration of power stations and individuals, the creation and accreditation of RECs, and the imposition and collection of charges and penalties related to renewable energy shortfalls. The Regulator has the authority to delegate certain functions and powers to senior officers and employees, as well as to issue warrants for authorised officers to enter and monitor premises related to the electricity sector. The Act is supported by a number of subordinate instruments and regulations that provide detailed specifications and guidelines for its implementation, including definitions, criteria, and procedural rules. The Act also provides for various exclusions and exemptions, such as for certain types of electricity acquisitions and for constitutional corporations. The Regulator has the power to publish information relating to the operation of the Act, and to establish and operate a clearing house for the transfer of small-scale technology certificates. The Act does not apply to the period of 3 months commencing on 1 January 2001, but applies to the period of 9 months commencing on 1 April 2001 as if that period were the whole of the year commencing on 1 January 2001.

Key Provisions

• The Renewable Energy (Electricity) Act 2000, as amended, governs the creation, transfer, and retirement of renewable energy certificates (RECs) and the imposition of renewable energy shortfall charges on liable entities. The Act primarily aims to encourage the additional generation of electricity from renewable energy sources and reduce greenhouse gas emissions. Under this Act, two types of RECs are recognised: large-scale generation certificates for power stations using eligible renewable energy sources and small-scale technology certificates for solar water heaters and small generation units. To create a REC, a power station or installation must be registered with the Clean Energy Regulator (the Regulator) and, in the case of power stations, be accredited. Large-scale generation certificates are created for electricity generated by accredited power stations exceeding a specified baseline, while small-scale technology certificates are created for eligible installations. The Act mandates the registration of certificates and requires their surrender by liable entities, which are those who acquire electricity through relevant acquisitions. The Act also allows for the creation of a clearing house for the transfer of small-scale technology certificates and imposes a renewable energy shortfall charge on liable entities that fail to surrender enough certificates, with exemptions for certain renewable energy technologies.
• Entities governed by the Act must adhere to several obligations. Registered persons and liable entities must submit relevant returns and statements to the Regulator, including annual energy acquisition statements and shortfall statements. Accredited power stations must comply with guidelines for creating and surrendering certificates. The Act also stipulates that any transfer of certificates must be registered with the Regulator. Failure to comply with these obligations can result in penalties and administrative actions such as the suspension of registration or accreditation.
• The Act establishes various penalties and consequences for breaches. Offences related to the improper creation of certificates are subject to criminal penalties, with strict liability offences carrying a maximum penalty of 1 penalty unit and other offences carrying a maximum penalty of 5 penalty units. Civil penalties are also imposed for breaches of civil penalty provisions, with maximum penalties set at 10,000 penalty units for individuals and 50,000 penalty units for bodies corporate. Additionally, liable entities may incur penalty charges for failing to provide required statements or information, with the penalty calculated as double the shortfall charge or small-scale technology shortfall charge. The Act further outlines procedures for the collection and recovery of charges, including special rules for recovering charges from liquidators, receivers, agents of non-resident principals, and deceased persons' estates. These provisions ensure that the Commonwealth can recover any outstanding charges from various parties involved in the electricity market.
• The Act includes provisions for objections, reviews, and appeals against decisions made by the Regulator, such as refusals to register or accredit, assessments of shortfall charges, and other administrative decisions. The Regulator has the authority to collect and recover shortfall charges, with provisions for extending payment times and imposing interest charges for unpaid amounts. Authorised officers are granted powers to enter premises, inspect documents, and monitor compliance, subject to certain conditions and rights of the premises' occupiers. The Act also provides for the publication of certain information by the Regulator and mandates the maintenance of registers for registered persons, accredited power stations, and certificates.
• The Act concludes with provisions on miscellaneous matters, including the ability of the Regulator to contract outsiders for assistance, delegate functions to authorised officers, and make regulations. It also specifies the appropriation of payments under the Act and modifies its application to the year commencing on 1 January 2001. The endnotes provide details on the legislation history, amendment history, and editorial changes incorporated into the Act.

Legal classification tags

Area of Law

Environmental Law

Energy Law

Instrument

Act

Concepts

Definitions & Interpretation

Licensing & Registration

Reporting & Disclosure Obligations

Enforcement Powers

Civil Penalty Provisions

Offence Provisions

Delegated & Subordinate Legislation