EXPLANATORY STATEMENT
Issued by the Authority of the Greenhouse and Energy Minimum Standards Regulator
Greenhouse and Energy Minimum Standards Act 2012
Greenhouse and Energy Minimum Standards (Exemption) Instrument 2016
Purpose and Operation
Section 37 of the Greenhouse and Energy Minimum Standards Act 2012 (the Act) enables the GEMS Regulator, by legislative instrument, to exempt models of GEMS products from one or more requirements of a GEMS determination in relation to all or specified supplies or uses of products of that model and enables the GEMS Regulator to specify conditions to which the exemption is subject. GEMS determinations are defined in section 11 of the Act.
Section 37 also provides that regulations may be made in order to provide a framework for administrative processes around the submission and assessment of applications for exemption.
The purpose of the Greenhouse and Energy Minimum Standards (Exemption) Instrument 2016 (the Instrument) is to exempt the specified three phase electric motors from the GEMS level requirements contained in section 6 of the Greenhouse and Energy Minimum Standards (Three Phase Cage Induction Motors) Determination 2012 (the Determination).
The exemption was sought because the costs associated with replacing the 12 motors outweighed the benefits of doing so.
Consultation
The exemption set out in the Instrument was considered on application from the supplier named in the Instrument. Since the Instrument will only exempt the supplier applicant, consultation was undertaken with only the applicant for clarification of their application.
Detailed description of provisions in the Instrument
- Name of Instrument
Section 1 sets out the name of the Instrument.
2. Authority
Section 2 sets out the provision of the Act under which the Instrument is made.
3. Commencement
Section 3 sets out the commencement arrangements for the Instrument.
4. Definitions
Section 4 sets out the definition of terms used in the Instrument. The term ‘exempt model’ is defined in section 4.
5. Exemption
Section 5 exempts the motor model specified in the Schedule (the exempt model) to the Instrument from the energy use and testing requirements of section 6 of the Determination, subject to the conditions specified in section 5 of the Instrument.
6. Conditions of Exemption
Section 6 specifies that there are no conditions to which the exemption is subject.
7. Schedule – Exemption and conditions of exemption
The Schedule to the Instrument sets out the following terms:
- specifications of the exempt model;
- the requirements of the Determination from which the model is exempt;
- the supply and use to which the exemption applies; and
- conditions of the exemption.
Overview
The Greenhouse and Energy Minimum Standards (Exemption) Instrument 2016 was enacted to address a specific issue identified by the Greenhouse and Energy Minimum Standards Regulator. This instrument, introduced under the authority of the Greenhouse and Energy Minimum Standards Act 2012, aims to exempt certain models of three-phase electric motors from the energy use and testing requirements stipulated in the Greenhouse and Energy Minimum Standards (Three Phase Cage Induction Motors) Determination 2012. The exemption was sought due to the substantial costs associated with replacing the specified motors, which were deemed to outweigh the benefits of compliance. The exemption applies to the specific motors identified by the supplier who applied for the exemption, and the instrument does not impose any conditions on this exemption, reflecting the regulator's assessment of the application. The instrument was developed following consultation with the applicant to ensure clarity and appropriateness of the exemption sought.
Scope and Application
The Greenhouse and Energy Minimum Standards (Exemption) Instrument 2016 operates under the provisions of the Greenhouse and Energy Minimum Standards Act 2012, enabling the Greenhouse and Energy Minimum Standards Regulator to exempt specific models of energy-consuming products from certain regulatory requirements. This particular Instrument exempts a specific model of three-phase electric motors from the energy use and testing requirements outlined in the Greenhouse and Energy Minimum Standards (Three Phase Cage Induction Motors) Determination 2012. The exemption was sought due to the cost-benefit analysis indicating that the expenses of replacing the twelve specified motors exceeded the potential benefits. The exemption applies only to the applicant who submitted the request, meaning the scope is limited to the specific entity and product model mentioned in the Instrument. The exemption does not impose any additional conditions beyond those explicitly stated in the Instrument itself. Given that the exemption is tailored to a particular application and does not extend to a broader range of entities or products, it does not require further consultation beyond the applicant.
Key Provisions
The Greenhouse and Energy Minimum Standards (Exemption) Instrument 2016, as outlined in the explanatory statement, provides an exemption for certain three phase electric motors from the energy use and testing requirements set out in the Greenhouse and Energy Minimum Standards (Three Phase Cage Induction Motors) Determination 2012. Specifically, section 5 of the Instrument exempts the motor model identified in the Schedule from the requirements of section 6 of the Determination. This exemption is made under the authority provided in section 37 of the Greenhouse and Energy Minimum Standards Act 2012, which allows the GEMS Regulator to exempt specific models of products from certain requirements if it is in the public interest to do so.
The obligations imposed by the Instrument primarily concern the entity that has applied for the exemption. The supplier named in the Instrument must ensure that the exempt model, as specified in the Schedule, adheres to the conditions outlined in the Instrument. Given that section 6 of the Instrument states that there are no conditions to which the exemption is subject, the primary obligation of the supplier is to ensure that the exempt model does not contravene the conditions that may be specified in future if the exemption were to be amended.
In terms of penalties and consequences for non-compliance, the Instrument does not explicitly state penalties. However, under the Greenhouse and Energy Minimum Standards Act 2012, non-compliance with the GEMS determinations can lead to various civil or criminal consequences. These can include fines, imprisonment, or both, depending on the nature and severity of the breach. For instance, section 30 of the Act imposes a maximum penalty of $22,200 for individuals and $111,000 for bodies corporate for breaches of certain provisions, reflecting the seriousness with which the Act treats non-compliance with energy standards. The Act also allows for the possibility of court-imposed fines and imprisonment terms that are commensurate with the gravity of the offence.