Determination of Day Applications for HFC Quotas for the First HFC Quota Allocation Period Must Be Given 2017

Administered by Department of Climate Change, Energy, the Environment and Water

Legislation au F2017L01131 In force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by authority of the Minister for the Environment and Energy

 

Determination of Day Applications for HFC Quotas for the First HFC Quota Allocation Period Must Be Given 2017

 

 

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (OPSGGM Act) implements Australia’s international obligations under the Vienna Convention for the Protection of the Ozone Layer and its Montreal Protocol on Substances that Deplete the Ozone Layer and the United Nations Framework Convention on Climate Change and its Kyoto Protocol. It does so through the control of the import, export, manufacture and use of ozone depleting substances and synthetic greenhouse gases (SGGs). The import and manufacture of certain products containing, or designed to contain, some of these controlled substances is also prohibited under the OPSGGM Act unless the correct licence or exemption is held.

 

Hydrofluorocarbons (HFCs) are a type of SGG, mostly used in refrigeration and air conditioning equipment. HFCs generally have a high global warming potential, meaning they have a greater ability to trap heat in the atmosphere compared to a similar mass of carbon dioxide.

 

Part IVA of the OPSGGM Act and Part 4A of the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 (OPSGGM Regulations) provide for the phase-down of HFCs through a reducing import quota system over 18 years. From 1 January 2018, a person must have been allocated a HFC quota to be able to import bulk HFCs into Australia.

 

Pursuant to paragraph 44(2)(b) of the OPSGGM Regulations, applications for HFC quotas for the first HFC quota allocation period (1 January 2018 – 31 December 2019) must be given to the Minister on or before the day determined under subregulation 44(3). Subregulation 44(3) of the OPSGGM Regulations provides that the Minister must, by legislative instrument, determine the day on or before which applications for HFC quotas for the calendar years in the first HFC quota allocation period must be given.

 

The purpose of the Determination of Day Applications for HFC Quotas for the First HFC Quota Allocation Period Must Be Given 2017 (the Determination) is to specify 22 September 2017 as the day on or before which applications for HFC quotas for the calendar years in the first HFC quota allocation period must be given to the Minister.  

 

The public and industry stakeholders (including HFC importers, equipment manufacturers, end users, state and territory governments, and non-government organisations) were consulted on proposed methods for allocating non-grandfathered quota in the first HFC quota period between 27 July and 9 August 2017. Consultation was undertaken by publishing the proposed methods for allocating non-grandfathered quota on the Department of Environment and Energy’s website and inviting comments. Stakeholders were also contacted directly and invited to comment. As part of this consultation, stakeholders and the public were able to provide comments on their preferred due date for applications for HFC quota for the first HFC quota period. All stakeholder comments that addressed this issue requested that applications be due as soon as practically possible. The date of 22 September 2017 was decided upon in response to these comments, as it was the soonest that applications could be due, whilst still providing sufficient time for potential applicants to familiarise themselves with the methods for allocating HFC quota and prepare and submit applications.

 

The Determination is a legislative instrument for the purposes of the Legislation Act 2003.

 

The Determination commences the day after it is registered.


Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Determination of Day Applications for HFC Quotas for the First HFC Quota Allocation Period Must Be Given 2017

 

This Determination 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 Legislative Instrument

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 (OPSGGM Regulations) implement the Australian Government’s commitment to phase-down the import of HFCs from 1 January 2018. From 1 January 2018, a person must have been allocated a HFC quota to be able to import bulk HFCs into Australia.

 

Pursuant to paragraph 44(2)(b) of the OPSGGM Regulations, applications for HFC quotas for the first HFC quota allocation period (1 January 2018 – 31 December 2019) must be given to the Minister on or before the day determined under subregulation 44(3). Subregulation 44(3) of the OPSGGM Regulations provides that the Minister must, by legislative instrument, determine the day on or before which applications for HFC quotas for the calendar years in the first HFC quota allocation period must be given.

 

The purpose of the Determination of Day Applications for HFC Quotas for the First HFC Quota Allocation Period Must Be Given 2017 (the Determination) is to specify 22 September 2017 as the day on or before which applications for HFC quotas for the calendar years in the first HFC quota allocation period must be given to the Minister.

Human rights implications

The Determination does not engage with any of the applicable rights or freedoms.  

Conclusion

The Determination is compatible with human rights as it does not raise any human rights issues.

 

 

 

 

Overview

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 was enacted to ensure Australia's compliance with international agreements aimed at protecting the ozone layer and mitigating climate change through the control of ozone-depleting substances and synthetic greenhouse gases (SGGs). This legislation addresses the critical issue of managing the environmental impact of substances like hydrofluorocarbons (HFCs), which have significant global warming potential. The Act, supported by the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995, establishes a framework for the phase-down of HFCs via a quota system to reduce their import and use. This approach aligns with Australia’s commitments under the Vienna Convention, the Montreal Protocol, and the Kyoto Protocol. The Determination of Day Applications for HFC Quotas for the First HFC Quota Allocation Period Must Be Given 2017, issued under the authority of the Minister for the Environment and Energy, sets a clear deadline for quota applications, facilitating an orderly transition to reduced HFC imports starting 1 January 2018. This legislative instrument aims to effectively manage the quota allocation process, ensuring compliance and minimizing environmental harm.

Scope and Application

The Determination of Day Applications for HFC Quotas for the First HFC Quota Allocation Period Must Be Given 2017 applies to individuals and entities seeking to import hydrofluorocarbons (HFCs) into Australia for the first HFC quota allocation period, which runs from 1 January 2018 to 31 December 2019. This includes HFC importers, equipment manufacturers, end users, state and territory governments, and non-government organisations, all of which were consulted on the proposed methods for allocating non-grandfathered quota in the first HFC quota period. The Determination specifies that applications for HFC quotas must be given to the Minister on or before 22 September 2017, in accordance with subregulation 44(3) of the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995. The Determination extends the reach of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 by setting a due date for quota applications and is compatible with the human rights and freedoms recognised in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The main operative sections of the Determination of Day Applications for HFC Quotas for the First HFC Quota Allocation Period Must Be Given 2017 (the Determination) specify that applications for HFC quotas for the first HFC quota allocation period, which runs from 1 January 2018 to 31 December 2019, must be submitted to the Minister on or before 22 September 2017 (section 4). This date is determined under subregulation 44(3) of the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 (OPSGGM Regulations) and is established as the deadline for such applications (section 5). The Determination is a legislative instrument under the Legislation Act 2003 and comes into effect the day after it is registered (section 7). The Determination imposes specific obligations on parties seeking to import bulk hydrofluorocarbons (HFCs) into Australia during the first HFC quota allocation period. These obligations include submitting a quota application to the Minister by the specified deadline of 22 September 2017. Failure to comply with this requirement will result in the inability to import HFCs without a quota allocation for the specified period. The Determination also requires that these applications adhere to the methods for allocating non-grandfathered quota as outlined in the OPSGGM Regulations. There are no explicit offences, penalties, or civil or criminal consequences outlined in the Determination itself for failing to meet the application deadline. However, the inability to secure a HFC quota by the specified date may indirectly result in significant commercial repercussions for entities that rely on HFCs for their operations. Under the OPSGGM Act and OPSGGM Regulations, failure to have an allocated HFC quota could prevent the import of HFCs, potentially disrupting business operations that depend on these substances. While the Determination does not detail specific penalties for non-compliance, the overarching regulatory framework under the OPSGGM Act and OPSGGM Regulations may impose various sanctions for breaches related to HFC import quotas. These could include fines or other administrative penalties for non-compliance with quota regulations. The exact penalties would be governed by the relevant provisions within the OPSGGM Act and OPSGGM Regulations, rather than the Determination itself. The Statement of Compatibility with Human Rights confirms that the Determination does not engage with any of the applicable rights or freedoms, and it is therefore compatible with human rights as it does not raise any human rights issues. This conclusion is based on the fact that the Determination focuses solely on the administrative process for applying for HFC quotas and does not impact on personal freedoms or rights beyond the scope of regulatory compliance.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.