Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 1) 2022

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

Legislation au F2022L00780 In force Legislative Instrument

Legislation content

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 (No. 1) 2022

Purpose and Operation

Subsection 37(1) of the Greenhouse and Energy Minimum Standards (GEMS) Act 2012 (Act) provides that the GEMS Regulator may, by legislative instrument, in accordance with regulations made for the purposes of subsection 37(1), exempt specified 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. The GEMS Regulator may specify conditions to which the exemption is subject in accordance with subsection 37(2) of the Act. A GEMS determination is defined in section 11 of the Act.

Division 4.1 of the Greenhouse and Energy Minimum Standards Regulation 2012 (Regulation) sets out the circumstances in which the GEMS Regulator may exempt a model of a GEMS product from the requirements of a GEMS determination.

The purpose of the Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 1) 2022 (Instrument) is to exempt supplies of Mitsubishi Heavy Industries Air-Conditioners Australia Pty Ltd (Mitsubishi) products specified in Schedule 1, Clause 1 of the Instrument from the GEMS level requirements contained in Part 3 of the Greenhouse and Energy Minimum Standards (Air Conditioners up to 65kW) Determination 2019 (2019 Determination).

Mitsubishi sell Mitsubishi Heavy Industries-branded air conditioners in Australia. Mitsubishi’s KXZRE1 series models are registered against the 2019 Determination through the operation of s 36(2) of the Act. The KXZRE1 series models are being phased out and replaced. Mitsubishi requested an exemption to enable supply of existing stock of the KXZRE1 series air conditioner models without the significant costs of undertaking additional tests.

The GEMS Regulator considered all the matters set out in the Regulation and has decided to grant an exemption from the GEMS level requirements in the 2019 Determination, on the basis there is likely to be no negative impact on Australia’s greenhouse gas emissions as a result of the exemption. This view is formed due to the fact that the KXZRE1 series models hold current, approved GEMS registrations and there was no change to the relevant testing requirements when the 2019 Determination replaced the Greenhouse and Energy Minimum Standards (Air Conditioners and Heat Pumps) Determination 2013. The exemption is also time-limited to the anticipated timeframes for supply of the existing stock.

Models covered by exemptions must still be registered under the Act.

Further details of the Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 1) 2022 are outlined in Attachment A.

Authority

Section 37 of the Act enables the GEMS Regulator to exempt models of GEMS products from one or more requirements of a GEMS determination. An exemption can be in relation to all supplies or uses of products of that model or limited to specified supplies and uses. The GEMS Regulator may specify conditions to which the exemption is subject. 

Division 4.1 of the Regulation sets out the circumstances in which the GEMS Regulator may exempt a model of a GEMS product from the requirements of a GEMS determination.

Consultation

The exemption set out in the Instrument was considered on application from the applicant. Consultation was undertaken with the applicant for the purpose of clarifying the exemption application.

Regulatory Impact

There will be no regulatory burden arising from the Instrument. The Office of Best Practice Regulation (OBPR) has advised that such proposals are not likely to have a regulatory impact on business, community organisations or organisations. A Regulatory Impact Statement (RIS) is therefore not required for this proposal. OBPR has advised a RIS is not required for this proposal (OBPR Ref. OBPR21-01246).

Statement of Compatibility with Human Rights

A Statement of Compatibility with Human Rights is set out in Attachment B.

Attachment A

Details of the Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 1) 2022

Section 1 – Name of Instrument

This section specifies the name of the Legislative Instrument as the Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 1) 2022.

Section 2 – Commencement

This section provides that the Legislative Instrument commences on the day after registration on the Federal Register of Legislation.

Section 3 – Authority

This section provides that subsection 37(1) of the Greenhouse and Energy Minimum Standards Act 2012 is the provision under which the Legislative Instrument is made.

Section 4 – Definitions

This section provides for definitions of terms used in the Legislative Instrument. The term ‘exempt models’ is defined in section 5 of the Instrument.

Section 5 – Exemption

This section exempts the models specified in clause 1 of Schedule 1 to the Legislative Instrument (the exempt models) from the requirements specified in clause 2 of Schedule 1.

Section 6 – Repeal

This section provides that the Legislative Instrument is repealed on 1 July 2029.

Schedule 1 – Exemption

Schedule 1 to the Legislative Instrument sets out the following terms:

  • the specified exempt models, including model numbers and product descriptions covered by the Legislative Instrument (clause 1);
  • the requirements of the 2019 Determination from which the models are exempt (clause 2);
  • the supplies to which the exemption applies (clause 3).

Attachment B

Statement of Compatibility with Human Rights

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

Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 1) 2022

This Legislative Instrument 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 Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 1) 2022 specifies models of Greenhouse and Energy Minimum Standards (GEMS) products that the GEMS Regulator has exempted from the requirements of Part 3 of the Greenhouse and Energy Minimum Standards (Air Conditioners up to 65kW) Determination 2019.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Penelope Sirault

GEMS Regulator

Overview

The Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 1) 2022, issued under the authority of the Greenhouse and Energy Minimum Standards Act 2012, was enacted to address the need for exemptions in the context of specific product models that are being phased out or replaced. This legislative instrument empowers the Greenhouse and Energy Minimum Standards Regulator to exempt certain models of Greenhouse and Energy Minimum Standards (GEMS) products from specific requirements of a GEMS determination, such as those related to greenhouse gas emissions levels. The instrument was enacted by the Parliament of Australia to streamline the transition for businesses like Mitsubishi Heavy Industries Air-Conditioners Australia Pty Ltd, which sought to supply existing stock of their KXZRE1 series air conditioners without incurring the costs of additional testing. The policy objective behind this exemption is to facilitate a smooth market transition for products that are being phased out while ensuring that there is no negative impact on Australia’s greenhouse gas emissions.

Scope and Application

The Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 1) 2022 applies to specified models of Greenhouse and Energy Minimum Standards (GEMS) products manufactured and sold by Mitsubishi Heavy Industries Air-Conditioners Australia Pty Ltd (Mitsubishi). The exemption is limited to certain KXZRE1 series air conditioner models that are being phased out and replaced. The exemption allows these specific models to be exempt from the GEMS level requirements as stipulated in Part 3 of the Greenhouse and Energy Minimum Standards (Air Conditioners up to 65kW) Determination 2019, provided that the exemption does not negatively impact Australia’s greenhouse gas emissions. The exemption is granted for a limited period to facilitate the supply of existing stock of these models without incurring significant testing costs. This exemption is granted under the authority of the Greenhouse and Energy Minimum Standards Act 2012, which empowers the GEMS Regulator to exempt GEMS products from certain requirements under specified conditions. Despite the exemption, the exempted models must still be registered under the Act, and the exemption is time-limited to the expected duration for the supply of existing stock. The exemption is applicable across Australia and is in effect from the day after its registration on the Federal Register of Legislation until its repeal on 1 July 2029.

Key Provisions

The main operative sections of the Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 1) 2022 (Instrument) concern the exemption of specified Mitsubishi Heavy Industries Air-Conditioners Australia Pty Ltd (Mitsubishi) products from the Greenhouse and Energy Minimum Standards (GEMS) level requirements in the Greenhouse and Energy Minimum Standards (Air Conditioners up to 65kW) Determination 2019 (2019 Determination) (section 5). The Instrument exempts the KXZRE1 series models of air conditioners from these requirements, allowing Mitsubishi to supply existing stock of these models without the need to comply with the additional testing requirements. This exemption is granted on the basis that it is unlikely to have a negative impact on Australia’s greenhouse gas emissions, as the KXZRE1 series models already hold current, approved GEMS registrations and the relevant testing requirements have not changed since the 2019 Determination replaced the Greenhouse and Energy Minimum Standards (Air Conditioners and Heat Pumps) Determination 2013. The exemption is also time-limited, aligning with the anticipated timeframe for the supply of the existing stock (section 5 and Schedule 1). The Greenhouse and Energy Minimum Standards Act 2012 (Act) imposes certain obligations on Mitsubishi, as the entity seeking and receiving the exemption. Specifically, Mitsubishi must ensure that the exempted products still comply with all other applicable requirements under the Act, including registration and any other relevant standards or regulations (section 37). Furthermore, Mitsubishi must adhere to any conditions specified by the GEMS Regulator as part of the exemption, although no such conditions are explicitly stated in the Instrument. The exemption does not alter the fundamental requirement for Mitsubishi to maintain compliance with the overarching objectives of the GEMS framework, ensuring energy efficiency and reducing greenhouse gas emissions. The Instrument itself does not explicitly outline offences, penalties, or civil/criminal consequences for breach. However, any breach of the underlying GEMS Act or the associated determinations could result in enforcement actions by the GEMS Regulator. Under the GEMS Act, breaches of the standards or requirements can lead to fines and other penalties. The exact penalties depend on the nature and severity of the breach but can include significant financial penalties for non-compliance, up to a maximum of $33,000 for corporations and $6,600 for individuals, as stipulated under section 24 of the Act. Additionally, ongoing non-compliance may result in further enforcement actions, including court proceedings and additional fines.

Legal classification tags

Area of Law
Environmental Law
Instrument
Instrument
Concepts
Definitions & Interpretation
Repeal & Amendment
Regulatory Standards

Interactions

Authorises

All Versions

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.