Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 2) 2017

Overview

The Greenhouse and Energy Minimum Standards (Exemption) Instrument (No.2) 2017 was enacted to address the specific need for exempting certain three phase electric motors from the energy efficiency requirements set forth in the Greenhouse and Energy Minimum Standards (Three Phase Cage Induction Motors) Determination 2012. This exemption was introduced to accommodate the unique technical and operational constraints faced by the Royal Australian Navy’s Collins Class Submarine fleet. The exemption was granted by the Greenhouse and Energy Minimum Standards Regulator under Section 37 of the Greenhouse and Energy Minimum Standards Act 2012, which empowers the Regulator to exempt certain GEMS products from compliance requirements when it is deemed necessary due to minimal negative impacts on greenhouse gas emissions and significant practical difficulties or costs associated with compliance. The exemption was granted following an application by SEW-Eurodrive Pty Ltd, following consultations with the Australian Submarine Corporation Pty Ltd, and after considering the potential environmental impacts and the practicality of compliance.

Scope and Application

The Greenhouse and Energy Minimum Standards (Exemption) Instrument (No.2) 2017 applies specifically to models of three-phase electric motors manufactured by SEW-Eurodrive Pty Ltd, which are intended for use in the maintenance and sustainment services of the Royal Australian Navy’s Collins Class Submarines. The exemption applies to the supply and use of these motors exclusively within the fleet of Collins Class Submarines, as identified by Australian Submarine Corporation Pty Ltd (ASC). The instrument grants an exemption from the energy efficiency requirements specified in the Greenhouse and Energy Minimum Standards (Three Phase Cage Induction Motors) Determination 2012. This exemption is justified on the basis that the non-compliance will have a minimal negative impact on Australia’s greenhouse gas emissions, while the non-exemption would result in significant costs and practical difficulties for ASC. The exemption is subject to specific conditions, which are detailed in the schedule to the Instrument, and the exemption only extends to the use of these motors in the Collins Class Submarine fleet.

Key Provisions

The Greenhouse and Energy Minimum Standards (Exemption) Instrument (No.2) 2017 (Instrument) primarily serves to exempt certain models of three phase electric motors from the energy efficiency requirements outlined in section 6 of the Greenhouse and Energy Minimum Standards (Three Phase Cage Induction Motors) Determination 2012 (Determination). This exemption is specified in section 5 of the Instrument, which identifies the particular motor models, as detailed in clause 1 of the Schedule. The exemption applies to the use of these models within the Royal Australian Navy’s Collins Class Submarine fleet. The exemption is not absolute but is subject to specific conditions outlined in section 6 and further detailed in clause 4 of the Schedule. The Instrument imposes certain obligations on the entities it governs. The primary obligation is for SEW-Eurodrive Pty Ltd (the applicant) to ensure that the exempted motor models are used strictly within the specified supply and use conditions, as outlined in clause 3 of the Schedule. Additionally, the Australian Submarine Corporation Pty Ltd (ASC), which will be undertaking a motor replacement program, must adhere to the conditions of the exemption, ensuring that the motors are used only for the intended purpose within the Navy’s Collins Class Submarine fleet. In terms of compliance, any breach of the conditions specified in the Instrument could lead to enforcement actions by the Greenhouse and Energy Minimum Standards Regulator (GEMS Regulator). While the Instrument does not explicitly state penalties for non-compliance, the overarching Greenhouse and Energy Minimum Standards Act 2012 does provide a framework for penalties. Generally, breaches of GEMS determinations can result in significant fines, with the exact penalty depending on the nature and severity of the breach. Civil or criminal consequences may also apply, with the potential for enforcement actions including fines and, in severe cases, prosecution. The Instrument also outlines the commencement arrangements in section 3, which specifies the date from which the exemption and its conditions take effect. This ensures that all parties involved are aware of the timeline and can plan their compliance activities accordingly. Furthermore, section 4 of the Instrument provides definitions for terms used, ensuring clarity and consistency in the interpretation and application of the exemption. In summary, the Greenhouse and Energy Minimum Standards (Exemption) Instrument (No.2) 2017 provides a structured exemption for specific motor models from certain energy efficiency requirements, subject to clearly defined conditions. The Instrument imposes specific obligations on the applicant and the user of the exempted models, with potential consequences for non-compliance under the broader legislative framework.