Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 2) 2019

EXPLANATORY STATEMENT

Greenhouse and Energy Minimum Standards Act 2012

Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 2) 2019

(Issued by the authority of the Greenhouse and Energy Minimum Standards Regulator)

Purpose and operation

Section 37 of the Greenhouse and Energy Minimum Standards Act 2012 (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. 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.2) 2019 (Instrument) is to exempt the specified motors from the minimum efficiency levels contained in Table 2 of Schedule 2 of the Greenhouse and Energy Minimum Standards (Three Phase Cage Induction Motors) Determination 2019 (Determination).

Sullair Australia (Sullair) sells compressors of which the motor is a main component. Its supplier changed the motors used in its products without advising Sullair of this change and without having registered the motors against the Determination. These motors do not meet the minimum energy efficiency requirements specified in the Determination. However, the deviation is small, such that it would be within the allowable tolerances if it were to be tested. Sullair estimates that they have imported approximately 16 units containing the 4KW motor and approximately 36 units containing the 7.5KW motor since their supplier changed the motor.

They currently hold five units containing the 4KW motor and six units containing the 7.6KW motor in stock. They are seeking an exemption for the stock they currently hold.

The GEMS Regulator considered all the matters set out in the Regulation and has decided to grant an exemption from the testing requirements of the Determination on the basis there will be no negative impact on Australia’s greenhouse gas emissions as a result of the exemption.  Additionally, granting the exemption would still be consistent with the Australian Government’s desire to align its regulations with international best practice regulations.

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

Background

Section 37 of the Greenhouse and Energy Minimum Standards Act 2012 enables the Greenhouse and Energy Minimum Standards (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 can 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.

Detailed description of provisions in the Instrument

1. Name

Section 1 sets out the name of the Instrument.

2.      Commencement

Section 2 sets out the commencement arrangements for the Instrument.

3.      Authority

Section 3 sets out the provision of the Act under which the Instrument is made.

4.      Definitions

Section 4 sets out definitions of terms used in the Instrument. The term ‘exempt model’ is defined in section 5 of the Instrument.

5.      Exemption

Section 5 exempts the models specified in clause 1 of Schedule 1 to the Instrument (the exempt models) from the requirements specified in clause 2 of Schedule 1.

6.      Conditions of exemption

Section 6 provides that the conditions specified for the purposes of subsection 37(2) of the Act are set out at clause 4.

Schedule 1 – Exemption

Schedule 1 to the Instrument sets out the following terms:

• the specified exempt models, including model numbers, product descriptions and the number of units held in stock by Sullair (clause 1);
• the requirements of the Determination from which the models are exempt (clause 2);
• the supplies to which the exemption applies (clause 3); and
• the condition of the exemption which limits supply of the motors to the number of motors currently held in stock by Sullair (clause 4).

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) 2019

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) 2019 specifies models of GEMS products that the GEMS Regulator has exempted from the requirements of section 6 of the Greenhouse and Energy Minimum Standards (Air Conditioners and Heat Pumps) Determination 2013.

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.