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

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

Legislation au F2019L01190 In force Legislative Instrument

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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.

 

Overview

The Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 2) 2019 was introduced to address a specific issue regarding the exemption of certain motor models from the minimum efficiency levels stipulated in the Greenhouse and Energy Minimum Standards (Three Phase Cage Induction Motors) Determination 2019. Enacted by the Greenhouse and Energy Minimum Standards Regulator under the authority granted by the Greenhouse and Energy Minimum Standards Act 2012, this legislative instrument aims to facilitate compliance while considering the practicalities of product supply and the potential for minimal environmental impact. The policy objective behind this exemption is to allow for the continued supply and use of certain motor models that, while not fully compliant with the efficiency standards, operate within allowable tolerances and would not significantly affect Australia's greenhouse gas emissions. By providing such exemptions, the Act seeks to balance regulatory compliance with the need to accommodate minor deviations that do not compromise environmental goals.

Scope and Application

The Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 2) 2019 applies to specific models of motors used in Sullair Australia's compressor products, which are considered Greenhouse and Energy Minimum Standards (GEMS) products under the Greenhouse and Energy Minimum Standards Act 2012. This legislation empowers the GEMS Regulator to exempt certain models from specific requirements of GEMS determinations, which are established to ensure products meet minimum energy efficiency standards. In this instance, the exemption is limited to the particular stock of non-compliant motors held by Sullair, with conditions that restrict the supply of these motors to the existing stock on hand. The exemption does not extend beyond the specific models and units mentioned in the Instrument, and the Regulator has ensured that granting this exemption will not adversely affect Australia's greenhouse gas emissions or its alignment with international best practices. Despite the exemption, the exempt models must still comply with the registration requirements stipulated in the Act. The Instrument operates within the Commonwealth jurisdiction, as it is issued under the authority of the GEMS Regulator and aims to align with the overarching objectives of the Greenhouse and Energy Minimum Standards Act 2012. The exemption is specifically tailored to the circumstances presented by Sullair, where a deviation in motor efficiency occurred without their knowledge, and the Regulator has determined that the exemption is justified on the basis of minimal impact on emissions and consistency with international standards. The exemption instrument does not create broad exclusions or exemptions but provides a targeted solution for the specified scenario, ensuring that the exemption does not compromise the broader goals of the GEMS framework.

Key Provisions

The main operative sections of the Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 2) 2019 involve granting exemptions to specific models of Greenhouse and Energy Minimum Standards (GEMS) products from certain requirements of a GEMS determination. Section 5 of the Instrument exempts the specified models of three-phase cage induction 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. This exemption is granted on the basis that the deviation in efficiency is small and would fall within allowable tolerances if tested, and that granting the exemption will not negatively impact Australia's greenhouse gas emissions or conflict with international best practice regulations. The exemptions are limited to the number of units currently held in stock by Sullair, as specified in Schedule 1, clause 4 of the Instrument. The Act imposes obligations on parties and entities it governs, such as ensuring that GEMS products meet specified minimum standards to reduce greenhouse gas emissions. Manufacturers and suppliers must register their products under the Act and comply with relevant determinations. The Instrument outlines specific conditions for the exemption, including the limitation on the number of units that can be supplied, which is tied to the number of units currently held in stock by Sullair. Additionally, the exempted models must still be registered under the Act, ensuring that they remain within the regulatory framework. The Instrument does not specify particular offences or penalties for breach within its text; however, breaches of the broader Greenhouse and Energy Minimum Standards Act 2012 can lead to civil and criminal consequences. Under the Act, individuals or entities that fail to comply with the requirements can face penalties. For example, section 50 of the Act allows for civil penalty notices for breaches of the Act, with penalties up to $66,000 for individuals and $330,000 for bodies corporate, depending on the severity and frequency of the breach. Additionally, more serious breaches can result in criminal charges, with potential penalties including fines and imprisonment, as specified in other sections of the Act.

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Environmental Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Exemptions & Exclusions
Compliance Obligations

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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.