Clean Energy (Unit Issue Charge—Auctions) Amendment Act 2012
No. 203, 2012
An Act to amend the Clean Energy (Unit Issue Charge—Auctions) Act 2011, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendments
Clean Energy (Unit Issue Charge—Auctions) Act 2011
Clean Energy (Unit Issue Charge—Auctions) Amendment Act 2012
No. 203, 2012
An Act to amend the Clean Energy (Unit Issue Charge—Auctions) Act 2011, and for related purposes
[Assented to 13 December 2012]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Clean Energy (Unit Issue Charge—Auctions) Amendment Act 2012.
2 Commencement
(1) Each provision of this Act 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.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 13 December 2012 |
2. Schedule 1 | At the same time as Part 1 of Schedule 1 to the Clean Energy Amendment (International Emissions Trading and Other Measures) Act 2012 commences. | 14 December 2012 |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendments
Clean Energy (Unit Issue Charge—Auctions) Act 2011
1 Section 3 (definition of eligible international emissions unit)
Repeal the definition.
2 Section 3 (definition of vintage year)
Repeal the definition.
3 Subsection 8(3)
Omit all the words from and including “so long as” to and including “that reserve charge amount”, substitute “so long as, in a case where there is a reserve charge amount in relation to the auction (see subsection (4A)), the amount the person indicated or declared, in the course of the auction, that the person would be willing to pay by way of charge for the issue of the unit is not less than that reserve charge amount”.
4 After subsection 8(4)
Insert:
(4A) The Minister may, by legislative instrument, determine that, for the purposes of subsection (3), the reserve charge amount in relation to a specified auction is the amount ascertained in accordance with the determination.
5 Section 10
Repeal the section.
[Minister’s second reading speech made in—
House of Representatives on 19 September 2012
Senate on 11 October 2012]
Overview
The Clean Energy (Unit Issue Charge—Auctions) Amendment Act 2012 was enacted by the Parliament of Australia to make amendments to the Clean Energy (Unit Issue Charge—Auctions) Act 2011. The primary objective of this legislation is to modify the existing framework governing the auction of Clean Energy Units to ensure that certain provisions are better aligned with the broader goals of the Clean Energy Act. This amendment aims to refine the process for determining reserve charges during auctions, ensuring that these charges are fairly and effectively applied. The Act was assented to on 13 December 2012 and certain provisions commenced on 14 December 2012, aligning with the commencement of related legislative measures.
Scope and Application
The Clean Energy (Unit Issue Charge—Auctions) Amendment Act 2012 amends the Clean Energy (Unit Issue Charge—Auctions) Act 2011 to modify the framework governing the auctioning of Australian Carbon Credit Units (ACCUs) and the application of the unit issue charge. This Act applies to the Commonwealth of Australia and to entities involved in the Clean Energy Regulator's auction process for issuing ACCUs. Specifically, it targets the conditions under which the unit issue charge is applied during auctions, altering the criteria for the reserve charge amount. The geographic reach of this legislation is national, as it pertains to federal processes overseen by the Clean Energy Regulator. The amendments do not introduce new entities or industries into the scope of the original Act but rather refine the operational details of the existing framework. Notably, the Act removes certain definitions and provisions previously in place, streamlining the legislative process for auctioning ACCUs. The Act does not explicitly state exclusions, but the nature of its amendments suggests that it does not apply to transactions or entities not involved in the auction of ACCUs under the Clean Energy Regulator's purview. Any further application or restrictions are to be determined through subordinate instruments issued by the Minister.
Key Provisions
The Clean Energy (Unit Issue Charge—Auctions) Amendment Act 2012 (Act) introduces significant changes to the Clean Energy (Unit Issue Charge—Auctions) Act 2011 (2011 Act). The primary modifications are outlined in Schedule 1. These include the repeal of specific definitions (Section 3) and the replacement of certain provisions with new language (Subsection 8(3)). Moreover, a new subsection (4A) is added to Section 8, which allows the Minister to determine the reserve charge amount through a legislative instrument for specific auctions. The Act also repeals Section 10 of the 2011 Act entirely.
The Act imposes several obligations and requirements on the parties involved in the auction process. Firstly, it mandates that participants in the auction must ensure their bids meet or exceed the reserve charge amount, if one is set by the Minister (Subsection 8(3)). Additionally, it grants the Minister the authority to establish the reserve charge amount for specified auctions through a legislative instrument (Subsection 8(4A)). Furthermore, the repealed definitions and sections may have indirect implications on how auctions are conducted and interpreted, necessitating adjustments in compliance and operational procedures.
Failure to comply with the provisions of the Act may result in various consequences. Although the Act does not explicitly detail the penalties for non-compliance, breaches of the auction requirements could potentially lead to legal disputes, administrative actions, or financial penalties under the broader Clean Energy legislation framework. The Act's amendments, particularly those related to auction bidding and the reserve charge amount, are designed to ensure the integrity and effectiveness of the clean energy unit auction process.
In summary, the Clean Energy (Unit Issue Charge—Auctions) Amendment Act 2012 introduces critical changes to the auction process for clean energy units, including the adjustment of bidding requirements and the introduction of a new mechanism for determining the reserve charge amount. These amendments impose clear obligations on participants to ensure their bids meet the stipulated criteria and grant the Minister expanded authority in managing auction parameters. While the Act does not explicitly state the penalties for non-compliance, adherence to its provisions is essential to maintain the integrity of the auction process within the Clean Energy legislative framework.