Greenhouse and Energy Minimum Standards (Exemption) Instrument (No.4) 2017

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) 2017

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. 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.4) 2017 (Instrument) is to exempt the specified evaporative chillers from the GEMS level requirements contained in section 6 of the Greenhouse and Energy Minimum Standards (Liquid-chilling Packages Using the Vapour Compression Cycle) Determination 2012 (Determination).

Smardt Chillers Pty Ltd (the applicant) supplies a range of Air Cooled, Water Cooled and evaporative chillers for sale in Australia. On 26 October 2017, the applicant submitted an application for exemption for its E-Class range of adiabatic evaporative chillers from the energy use and testing requirements set out in section 6 of the Determination.

The applicant submitted the exemption application following the release of the Chillers Guidance Note from the GEMS Regulator. In this Guidance Note, the GEMS Regulator considered that adiabatic evaporative chillers are a class of products that is covered under section 5 of the Determination, and therefore must be tested in accordance with section 6 of the Determination. The applicant asserts that to test E-Class evaporative chillers in accordance with section 6 of the Determination would compromise the overall function and performance of these products, such that the products would be significantly more inefficient compared to how they operate in normal circumstances and have a negative outcome for Australia’s greenhouse gas emissions.

The GEMS Regulator has considered all the matters set out in the Regulation, including the costs to the applicant associated with complying with the Determination, and has decided to grant an exemption from the Determination as this is consistent with the objects of the Act to promote the development and adoption of products that use less energy and produce fewer greenhouse gases.  The Instrument does not specify any conditions for the purposes of section 37 of the Act.

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 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 5 of the Instrument.

5.      Exemption

Section 5 exempts the models specified in clause 1 of the Schedule to the Instrument (Exempt Model) from the energy use and testing requirements of section 6 of the Determination.

6.      Conditions of Exemption

Section 6 specifies that there are no conditions specified for the purposes of subsection 37(2) of the Act.

Schedule   Exemption

The Schedule to the Instrument sets out the following terms:

• specifications of the Exempt Models (clause 1);
• the requirements of the Determination from which the models are exempt (clause 2); and
• the supplies to which the exemption applies (clause 3).

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.4) 2017

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.4) 2017 specifies models of GEMS products that the GEMS Regulator has exempted from the requirements of section 6 of the Greenhouse and Energy Minimum Standards (Liquid-chilling Packages Using the Vapour Compression Cycle) Determination 2012.

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.