Renewable Energy (Electricity) Amendment (Exemptions and Other Measures) Regulations 2017 (Cth)
I, General the Honourable Sir Peter Cosgrove AK MC (Ret’d), Governor‑General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulations.
Dated 14 December 2017
Peter Cosgrove
Governor‑General
By His Excellency’s Command
Josh Frydenberg
Minister for the Environment and Energy
Contents
This instrument is the
Renewable Energy (Electricity) Amendment (Exemptions and Other Measures) Regulations 2017 .
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Sections 1 to 4 and anything in this instrument not elsewhere covered by this table | The day after this instrument is registered. | 19 December 2017 |
Schedule 1 | The day after this instrument is registered. | 19 December 2017 |
Schedule 2, Part 1 | The day after this instrument is registered. | 19 December 2017 |
Schedule 2, Part 2 | 1 July 2018. | 1 July 2018 |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
This instrument is made under the
Renewable Energy (Electricity) Act 2000.
Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Insert:
certifiable amount has the meaning given by subregulation 22ZHC(2).
electricity use method advice has the meaning given by paragraph 22O(1)(i).
limited assurance conclusion has the same meaning as in theNational Greenhouse and Energy Reporting (Audit) Determination 2009 .
reasonable assurance conclusion has the same meaning as in theNational Greenhouse and Energy Reporting (Audit) Determination 2009 .
2
Subregulation 22A(1) (subparagraph (a)(i) of the definition of relevant product ) Omit “as the basis for the issue of the certificate”.
Insert:
use amount for a liable entity has the meaning given by paragraph 22ZHC(2)(a).
After “activity”, insert “or activities”.
After “for a year,”, insert “an estimate of”.
Omit “1 October in the year”, substitute “30 March in the year after the year”.
Omit “the liable entity”, substitute “a liable entity”.
Repeal the heading, substitute:
Insert:
(aa) the amount of the exemption is worked out under Division 5 (production calculation method); and
Insert:
If:
(a) a prescribed person has been granted an exemption certificate in relation to an emissions‑intensive trade‑exposed activity, site and year; and
(b) the amount of the exemption is worked out under Division 5A (electricity use method); and
(c) during the year, the liable entity set out in the certificate (the
old liable entity ) ceases to be a liable entity in relation to electricity consumed at the site; and(d) another entity (the
new liable entity ) begins to be a liable entity in relation to electricity consumed at the site instead of the old liable entity; and(e) the prescribed person applies again under subsection 46A(1) of the Act before the end of the year in relation to the activity, site, year and new liable entity;
then the prescribed person is a prescribed person for the activity, site, year and new liable entity.
Repeal the heading, substitute:
Insert:
(aa) the amount of the exemption is worked out under Division 5 (production calculation method); and
Insert:
If:
(a) a prescribed person has been granted one or more exemption certificates, in relation to an emissions‑intensive trade‑exposed activity, site, year and one or more liable entities (an
earlier liable entity ); and(b) the amount or amounts of the exemptions is worked out under Division 5A (electricity use method); and
(c) during the year, an entity (an
added liable entity ) begins to be a liable entity in relation to electricity consumed at the site in addition to the earlier liable entities; and(d) the prescribed person has not been, and has not applied to be, a prescribed person under regulation 22LA for the activity, site, year and the added liable entity; and
(e) the prescribed person applies again under subsection 46A(1) of the Act before the end of the year in relation to the activity, site, year and the added liable entity;
then the prescribed person is a prescribed person for the activity, site, year and added liable entity.
After “activity” (wherever occurring), insert “or activities”.
Before “an explanation”, insert “if the amount of the exemption is to be worked out under Division 5 (production calculation method)—”.
Before “a statement”, insert “if the amount of the exemption is to be worked out under Division 5 (production calculation method)—”.
Add:
; (h) if the amount of the exemption is to be worked out under Division 5A (electricity use method):
(i) the names of the liable entity or entities to which the application relates; and
(ii) for each activity identified in the application—an estimate of the amount or volume of relevant product identified in the application and referrable to the site; and
(iii) if the applicant considers that metering data should be used (whether alone or as part of a formula with other elements) to identify the use amount for a liable entity to which the application relates—identifying information for the meters supplying the data, including the National Metering Identifier (if any) for each such meter within the meaning of the National Electricity Rules;
(i) if the amount of the exemption is to be worked out under Division 5A (electricity use method)—the following information (the
electricity use method advice ):
(i) whether the applicant considers that metering data is sufficient and appropriate to identify the use amount for a liable entity to which the application relates, and why or why not;
(ii) if the applicant considers that metering data is not sufficient or not appropriate to identify the use amount for a liable entity—the formula that, having regard to the Regulator’s object set out in subregulation 22ZHC(5), the applicant considers would be appropriate to identify the use amount, and an explanation of the elements of the proposed formula and why it would be appropriate.
Add:
; (g) whether the prescribed person intends to apply to be a prescribed person under regulation 22MA in relation to the activity, site and year in respect of an added liable entity (within the meaning of that regulation) at the site.
Repeal the regulation.
Insert:
(1A) This regulation applies to an application for an exemption certificate in relation to an activity and a site, if:
(a) the amount of the exemption is to be worked out under Division 5 (production calculation method) and the site meets the criteria for a new entrant specified in subregulation 22ZD(3); or
(b) the amount of the exemption is to be worked out under Division 5A (electricity use method) and the activity was not carried on at that site in the year before the year for which the application is made.
Omit “An application under subsection 46A(1) of the Act for a site that meets the criteria for a new entrant specified in subregulation 22ZD(3)”, substitute “The application”.
Add:
(3) This regulation does not apply to an application if the amount of the exemption applied for is to be worked out under Division 5A (electricity use method).
Repeal the heading, substitute:
After “subregulation 22L(1)”, insert “or regulation 22LA”.
After “paragraph 22L(1)(b)”, insert “or 22LA(c)”.
After “paragraph 22L(1)(c)”, insert “or 22LA(d)”.
Repeal the heading, substitute:
After “regulation 22M”, insert “or 22MA”.
Repeal the paragraph, substitute:
(b) provide evidence that the liable entities specified in the certificates mentioned in regulation 22M or 22MA have been informed of the application.
Repeal the regulation.
31
Subdivision BA of Division 4 of Part 3A (heading) Repeal the heading, substitute:
Insert:
(aa) for which the amount of the exemption applied for is to be worked out under Division 5 (production calculation method); and
Repeal the subregulations.
Omit “or 3”.
Repeal the notes.
Repeal the regulation.
Insert:
This Subdivision is made:
(a) for the purposes of paragraph 46A(2)(bb) of the Act; and
(b) in relation to an application for an exemption certificate for which the amount of the exemption is to be worked out under Division 5A (electricity use method).
Applicant using electricity use method for first time
(1) An application for a year, in relation to a site, must be accompanied by an audit report if:
(a) the applicant has not previously made an application in relation to the site for which the amount of the exemption applied for is to be worked out under Division 5A (electricity use method); and
(b) the total amount of exemptions applied for in the application is likely to exceed 15,000 MWh.
Every 3 years
(2) An application for a year, in relation to a site, must also be accompanied by an audit report if:
(a) the year is at least 2 years after the last year for which an application made by the applicant in relation to the site was accompanied by an audit report required under this regulation; and
(b) the total amount of exemptions applied for in the application is likely to exceed 15,000 MWh.
On request
(3) An application for a year, in relation to a site, must also be accompanied by an audit report if the Regulator has given the applicant a notice in writing for the year and the site in accordance with subregulation (4).
(4) For the purposes of subregulation (3), the Regulator may give a person a written notice, for a year and a site, requiring an application by the person for the year to be accompanied by an audit report, if the Regulator is satisfied that the method for working out the amount of a liable entity’s exemption for the year in relation to the site is likely to be materially different from the method used to work out the amount of a liable entity’s exemption in relation to the site for the previous year.
(1) The audit report must be prepared by a registered greenhouse and energy auditor (within the meaning of the
National Greenhouse and Energy Reporting Act 2007 ) who is:
(a) registered as a Category 2 auditor under the
National Greenhouse and Energy Reporting Regulations 2008 ; and(b) for whom no conflict of interest situation (within the meaning of those Regulations) exists in relation to the applicant.
(2) The auditor must ensure that the audit to which the report relates is conducted in accordance with the applicable requirements under the
National Greenhouse and Energy Reporting (Audit) Determination 2009 for assurance engagements.(3) The audit report must set out the auditor’s reasonable assurance conclusion as to whether:
(a) the activities set out in the application that are claimed to be an emissions‑intensive trade‑exposed activity comply, in all material respects, with each of the requirements in the description of the activity set out in Schedule 6; and
(b) the application presents fairly, in all material respects, the electricity use method advice (see paragraph 22O(1)(i)); and
(c) the electricity use method advice is reasonable, and in all material respects is not likely to result in including an amount of electricity that is not a use amount.
Repeal the heading, substitute:
Insert:
(1AA) This regulation applies in relation to an application for an exemption certificate, for a year, if the amount of the exemption is to be worked out under Division 5 (production calculation method).
Insert:
(1) This regulation applies in relation to an application for an exemption certificate, for a year, if the amount of the exemption is to be worked out under Division 5A (electricity use method).
(2) If the applicant is a prescribed person mentioned in regulation 22G, 22H, 22I, 22J or 22K, the application must be lodged during the period:
(a) starting on 1 August of the previous year; and
(b) ending on 30 March of the year.
(3) If the applicant is a prescribed person mentioned in regulation 22LA or 22MA, the application must be lodged by the end of the year.
Repeal the regulation, substitute:
An application under subsection 46A(1) of the Act must be lodged with the Regulator in a manner and form specified by the Regulator on the Regulator’s website.
Repeal the heading, substitute:
Insert:
(1A) This Division does not apply for working out the amount of a liable entity’s exemption if Division 5A applies.
Note: Division 5A applies for 2020 and later years. Division 5A may apply in some cases for 2018 and 2019 as well. See regulation 22ZHA.
Insert:
(1) This Division applies for the purposes of working out the amount of a liable entity’s exemption, in relation to an emissions‑intensive trade‑exposed activity and a site, for 2020 and later years.
(2) This Division also applies for the purposes of working out the amount of a liable entity’s exemption, in relation to an emissions‑intensive trade‑exposed activity and a site, for a year before 2020, if:
(a) the application for the exemption certificate for the year indicatesthat the applicant chooses for this Division to apply instead of Division 5; or
(b) a previous application for an exemption certificate for the year, in relation to any activity carried on at the site (whether or not made by the same applicant or for the same liable entity) indicated that the applicant chose for this Division to apply instead of Division 5; or
(c) both:
(i) the site is part of an activity group; and
(ii) a previous application for an exemption certificate for the year, in relation to any activity carried on at any site that is part of the activity group (whether or not made by the same applicant or for the same liable entity) indicated that the applicant chose for this Division to apply instead of Division 5; or
(d) the activity was prescribed as an emissions‑intensive trade‑exposed activity within the meaning of these Regulations on or after the day this regulation commenced; or
(e) the year is 2019 and the total electricity consumed at the site in 2018 was more than 2,000 GWh; or
(f) the year is 2019 and the amount of the exemption in an exemption certificate issued for 2018 in relation to any activity carried on at the site was worked out under this Division.
For the purposes of this Division, electricity is only consumed in carrying on an emissions‑intensive trade‑exposed activity if:
(a) every aspect of the activity as described in Schedule 6 is carried on at the site; or
(b) aspects of the activity are carried on at different sites and all of those sites together constitute an activity group within the meaning of subregulation 22A(9).
(1) For the purposes of paragraph 46B(4)(a) of the Act, this regulation prescribes the method for working out, for a liable entity in relation to which an application for an exemption certificate is made, the amount of the liable entity’s exemption for a year, in relation to the emissions‑intensive trade‑exposed activity or activities, and the site, specified in the application.
(2) Unless subregulation (3) applies, the method is:
(a) to use metering data to identify the amount of electricity consumed at the site in the year that is:
(i) acquired by, or from, the liable entity under a relevant acquisition; and
(ii) consumed in carrying on the activity or activities;
(the
use amount for the liable entity); and
(b) to adjust the use amount by adding or subtracting an amount to reflect:
(i) any changes to the exemption amount in an exemption certificate (within the meaning of subsection 38B(2) of the Act) in relation to the previous year that resulted from changes to the final settlement data issued by AEMO; and
(ii) any errors in metering data used to identify the exemption amount in an exemption certificate in relation to the previous year; and
(c) if the result is not a whole MWh—to round the result down to the nearest whole MWh.
This is the
certifiable amount .
(3) If the Regulator is satisfied that metering data is not sufficient, or not appropriate, to identify the use amount for the liable entity, the Regulator may instead specify in the certificate a formula, determined by the Regulator, as the method to be used to identify the use amount for the liable entity.
Note: The formula may or may not use metering data, as well as having other elements based on data from a site.
(4) The metering data used in a method may be:
(a) data for the year; or
(b) if the Regulator is satisfied that a reasonable approximation of the use amount can be obtained by using data for a 12 month period determined by the Regulator that includes at least 3 quarters in the year—data for that 12 month period.
(5) In deciding on a method for the purposes of this regulation, the Regulator’s object must be to choose the method that will most accurately identify the use amount for a liable entity, having regard to:
(a) the instrument titled
Emissions‑Intensive Trade‑Exposed Activity Boundaries , as existing from time to time; and(b) the practicalities of giving effect to the method; and
(c) any other matters the Regulator considers relevant.
As soon as practicable after a certifiable amount is determined in accordance with the method specified or described in an exemption certificate, the Regulator must give written notice of the amount:
(a) to the applicant for the certificate; and
(b) if the applicant consents to the Regulator doing so—to the liable entity to which the certificate relates.
After “activity”, insert “or activities”.
Before “the amount”, insert “if the amount of the exemption is worked out under Division 5 (production calculation method)—”.
Before “the percentage”, insert “if the amount of the exemption is worked out under Division 5 (production calculation method)—”.
Insert:
(aa) the amount of the exemption is worked out under Division 5 (production calculation method); and
Omit “45”, substitute “60”.
Add:
(3) If a prescribed person has applied under subsection 46A(1) of the Act for an exemption certificate and the amount of the exemption is worked out under Division 5A (electricity use method), the Regulator must issue the exemption certificate within the period of 60 days after the later of:
(a) the day the application was received; or
(b) if the Regulator sought further information in respect of the application—the day the further information was received.
Before “whether”, insert “if the amount of the exemption is worked out under Division 5 (production calculation method)—”.
Insert:
(ba) if the amount of the exemption is worked out under Division 5A (electricity use method)—whether the amendment would result in the certificate better giving effect to the requirements of Division 5A;
Repeal the heading, substitute:
Insert:
If:
(a) an exemption certificate (the
first certificate ) is issued in relation to a liable entity and a year following an application by a prescribed person; and(b) the prescribed person becomes a prescribed person under regulation 22LA; and
(c) the prescribed person makes an application under subsection 46A(1) of the Act in relation to another liable entity and the year; and
(d) in issuing another certificate (the
second certificate ), the Regulator is satisfied that the evidence referred to in paragraphs 22S(1)(b) and (c) evidences the matters stated in those paragraphs;then the Regulator may amend the first certificate to take account of the issuing of the second certificate.
Repeal the heading, substitute:
Insert:
If:
(a) one or more exemption certificates (the
earlier certificates ) have been issued in relation to a liable entity and a year following an application or applications by a prescribed person; and(b) the prescribed person becomes a prescribed person under regulation 22MA; and
(c) the prescribed person makes an application under subsection 46A(1) of the Act in relation to another liable entity (an
added liable entity ) and the year; and(d) in issuing another certificate as a result of the application (the
additional certificate ), the Regulator is satisfied that the added liable entity is a liable entity in respect of the electricity consumed at the site during the year;then the Regulator may amend an earlier certificate to take account of the issuing of the additional certificate.
Omit “The amendment”, substitute “If the amount of the exemption is worked out under Division 5 (production calculation method), the amendment”.
Add:
(4) If the amount of the exemption is worked out under Division 5A (electricity use method), the amendment must take account of the cessation of the activity at the site.
Add:
(3) Without limiting the circumstances in which an exemption certificate for which the amount of the exemption is worked out under Division 5A may be inaccurate, the certificate is taken to be inaccurate if there has been any change in relation to:
(a) information that formed part of the electricity use method advice (see paragraph 22O(1)(i)); or
(b) any other matter that affected a decision of the Regulator in relation to the certificate under regulation 22ZHB.
Before “For paragraph”, insert “(1)”.
Add:
(2) This regulation does not apply in relation to an exemption certificate if the amount of the exemption is worked out under Division 5A (electricity use method).
Insert:
2A | Decision under subregulation 22UG(4) to give a notice (requiring application for exemption certificate to be accompanied by audit report) | Person to whom the notice is given |
2B | Decision under subregulation 22ZHC(3) to specify a formula in an exemption certificate (identification of use amount for a liable entity) | Applicant for the exemption certificate |
After “and site”, insert “under Division 5 of Part 3A (production calculation method)”.
Omit “subject to subclause (3),”.
Omit “For paragraph (1)(e)”, substitute “For the purposes of paragraph (1)(e), if the amount of the exemption is worked out under Division 5 (production method)”.
Insert:
(1A) The activity of petroleum refining only takes place in the application year if:
(a) the application is for the amount of the exemption to be worked out under Division 5 of Part 3A (production calculation method) and subclause (2) applies; or
(b) the application is for the amount of the exemption to be worked out under Division 5A of Part 3A (electricity use method) and subclause (2A) applies.
Omit “Subject to subclause (3), the activity of petroleum refining will only take place in the application year if both of the following apply”, substitute “For the purposes of paragraph (1A)(a), this subclause applies in relation to the application year if”.
68
At the end of paragraph 662(2)(a) of Schedule 6 Add “and”.
Insert:
(2A) For the purposes of paragraph (1A)(b), this subclause applies in relation to the application year if:
(a) each of the processes mentioned in paragraphs (1)(a) to (d) are conducted within the application year for the site; and
(b) the combined volume of diesel, jet fuel, unleaded petrol, lubricant base stocks and bitumen at 15°C and 1 atmosphere produced from stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks is:
(i) for a site that is not part of an activity group—equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks likely to be used in the application year for the site; or
(ii) for a site that is part of an activity group—equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks likely to be used in the application year for the sites that are part of the activity group.
1
Subregulation 3(1) (definition of standby plant ) Repeal the definition.
Omit “
Greater than 630 L ”, substitute “Greater than 700 L ”.
Omit “, if this happens no more than 60 days from the start of installation of any component of the heater”.
Insert:
(aa) installed before 1 January 2018; and
Repeal the regulation, substitute:
(1) For the purposes of subsection 31(3) of the Act, the capacity of a grid is the sum of the nameplate capacity (specified by the manufacturer in MW) for each electricity generator connected (directly or indirectly) to the grid, other than:
(a) a privately owned domestic generator; or
(b) a generator that:
(i) has been connected (directly or indirectly) to the grid for at least the 3 calendar years before the assessment year; and
(ii) in each of those years either produced less than 50 GWh or had a load factor of less than 5%.
(2) Despite subregulation (1), if a liable entity satisfies the Regulator that it is not appropriate to use the nameplate capacity for a particular electricity generator to determine the capacity of a grid, the Regulator may calculate the capacity of the grid by using the nominal capacity of that generator.
Repeal the paragraph, substitute:
(b) for a solar (photovoltaic) system—for the amount calculated by multiplying the zone rating of the system (worked out in accordance with an instrument made under subregulation (4) as existing from time to time) by the rated power output of the system measured in kilowatts‑peak (kWp); or
Insert:
(4) The Regulator may, by legislative instrument, prescribe zone ratings of solar (photovoltaic) systems, and zones, for the purposes of paragraph (1)(b).
Repeal the Schedule.
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