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.4) 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 (No.4) 2016 (the Instrument) is to exempt the specified three phase electric motors from the GEMS level requirements specified in section 6 of the Greenhouse and Energy Minimum Standards (Three Phase Cage Induction Motors) Determination 2012 (the Determination).
Solar Turbines Australia (the applicant) sought an exemption as the motors currently being used at the Santos Gladstone GLNG site in Queensland do not comply with the Determination. The applicant would face considerable cost and delays in production if it was to replace the motors with compliant ones.
Consultation
The exemption set out in the Instrument was considered on application from the applicant named in the Instrument. Since the Instrument will only exempt the motors produced by the applicant, consultation was undertaken only with the applicant for the purposes of 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 three phase electric motor model specified in clause 1 of the Schedule to the Instrument (the exempt model) from the energy use and testing requirements of section 6 of the Determination, subject to the conditions specified in section 6 of the Instrument.
6. Conditions of Exemption
Section 6 specifies the 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 (No.4) 2016 was enacted to address the specific circumstances of Solar Turbines Australia, which sought an exemption from the GEMS level requirements for three phase electric motors used at the Santos Gladstone GLNG site in Queensland. The exemption was granted under section 37 of the Greenhouse and Energy Minimum Standards Act 2012, which allows the GEMS Regulator to exempt certain products from the energy use and testing requirements of a GEMS determination. The policy objective of the Instrument is to avoid considerable costs and delays in production for the applicant, who would otherwise need to replace non-compliant motors with compliant ones. The exemption applies solely to the specified three phase electric motors produced by Solar Turbines Australia, and was granted following consultation with the applicant to clarify the details of their application.
Scope and Application
The Greenhouse and Energy Minimum Standards (Exemption) Instrument (No.4) 2016 applies to the three phase electric motor models produced by Solar Turbines Australia for use at the Santos Gladstone GLNG site in Queensland. This instrument exempts these specific motor models from certain energy use and testing requirements outlined in the Greenhouse and Energy Minimum Standards (Three Phase Cage Induction Motors) Determination 2012. The exemption is granted under section 37 of the Greenhouse and Energy Minimum Standards Act 2012, which allows the GEMS Regulator to exempt certain models of GEMS products from specific requirements if an exemption is deemed appropriate. The exemption is limited to the models specified in the Schedule of the Instrument and is subject to certain conditions aimed at ensuring that the exemption does not undermine the overall objectives of the GEMS Act. The exemption does not extend to any other entities or models not specified in the Instrument.
Key Provisions
The Greenhouse and Energy Minimum Standards (Exemption) Instrument (No.4) 2016, made under section 37 of the Greenhouse and Energy Minimum Standards Act 2012, exempts a specific model of three phase electric motors from certain energy use and testing requirements outlined in the Greenhouse and Energy Minimum Standards (Three Phase Cage Induction Motors) Determination 2012. This exemption is designed to address the practical difficulties faced by Solar Turbines Australia, which operates the Santos Gladstone GLNG site in Queensland. The motors currently used at this site do not meet the energy standards set by the Determination, and replacing them would incur significant costs and delays.
The obligations imposed by this Instrument are primarily on Solar Turbines Australia. According to section 5, the specified three phase electric motor model is exempt from the energy use and testing requirements outlined in section 6 of the Determination. This exemption is contingent on the conditions set out in section 6 of the Instrument, which may include compliance with specific operational standards, ongoing monitoring of energy performance, and reporting requirements to ensure that the exemption does not adversely affect the overall environmental goals of the Act.
The conditions of the exemption, detailed in section 6, are critical in ensuring that the exemption does not undermine the purpose of the Greenhouse and Energy Minimum Standards Act 2012. These conditions may require Solar Turbines Australia to implement measures to mitigate any potential environmental impact of the non-compliant motors, such as energy efficiency improvements or emissions reductions in other areas of their operations. Additionally, the company must adhere to any reporting and monitoring requirements stipulated in the Instrument, to maintain transparency and accountability.
Failure to comply with the conditions of the exemption could result in serious consequences. While the Instrument itself does not explicitly outline penalties, breaches of the conditions could lead to enforcement actions under the broader provisions of the Greenhouse and Energy Minimum Standards Act 2012. This could include fines, legal action, or the revocation of the exemption. Given the environmental objectives of the Act, non-compliance could also attract public scrutiny and damage to the company's reputation.