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

Overview

The Greenhouse and Energy Minimum Standards (Exemption) Instrument (No.4) 2017 was introduced to address specific issues raised by the exemption application from Smardt Chillers Pty Ltd regarding its E-Class range of adiabatic evaporative chillers. Enacted by the Greenhouse and Energy Minimum Standards Regulator under section 37 of the Greenhouse and Energy Minimum Standards Act 2012, the instrument aims to exempt these models from certain energy use and testing requirements stipulated in the Greenhouse and Energy Minimum Standards (Liquid-chilling Packages Using the Vapour Compression Cycle) Determination 2012. The exemption was granted after careful consideration of the applicant's claims that compliance with the stated requirements would compromise the efficiency of the products, leading to increased greenhouse gas emissions. The policy objective, consistent with the overarching goals of the Act, is to promote the development and adoption of energy-efficient products that contribute to reducing greenhouse gas emissions. The instrument specifies no conditions for the exemption, reflecting the Regulator's assessment that the exemption aligns with the Act's objectives.

Scope and Application

The Greenhouse and Energy Minimum Standards (Exemption) Instrument (No.4) 2017 is a legislative instrument issued under the Greenhouse and Energy Minimum Standards Act 2012, which enables the Greenhouse and Energy Minimum Standards Regulator to exempt certain models of energy-using products from specified requirements of a Greenhouse and Energy Minimum Standards (GEMS) determination. This particular Instrument exempts certain evaporative chillers from the energy use and testing requirements outlined in section 6 of the Greenhouse and Energy Minimum Standards (Liquid-chilling Packages Using the Vapour Compression Cycle) Determination 2012. The exemption was granted following an application by Smardt Chillers Pty Ltd, which argued that testing the E-Class range of adiabatic evaporative chillers in accordance with the Determination would negatively impact the products' efficiency and overall performance, thereby contradicting the objectives of the Act. The exemption applies to the specified models of evaporative chillers supplied by Smardt Chillers Pty Ltd for sale in Australia. The Instrument does not specify any conditions for the exemption, aligning with the statutory framework provided under section 37 of the Act. The exemption is designed to promote the development and adoption of products that use less energy and produce fewer greenhouse gases.

Key Provisions

The main operative sections of the Greenhouse and Energy Minimum Standards (Exemption) Instrument (No.4) 2017 (the Instrument) include the definition of the term 'Exempt Model' in section 4, which is specified in clause 1 of the Schedule. Section 5 of the Instrument formally exempts the models specified in clause 1 of the Schedule from the energy use and testing requirements set out in section 6 of the Greenhouse and Energy Minimum Standards (Liquid-chilling Packages Using the Vapour Compression Cycle) Determination 2012 (the Determination). Additionally, section 6 clarifies that there are no conditions attached to the exemption as provided for in subsection 37(2) of the Greenhouse and Energy Minimum Standards Act 2012 (the Act). The Schedule provides detailed specifications of the Exempt Models, the requirements of the Determination from which these models are exempt, and the supplies to which the exemption applies. The Instrument imposes several obligations and requirements on the parties it governs. Firstly, it requires the applicant, Smardt Chillers Pty Ltd, to submit a detailed application for exemption, including justification for the exemption and any relevant evidence. The GEMS Regulator is required to assess the application against the criteria outlined in the Act and the Greenhouse and Energy Minimum Standards Regulation 2012, including consideration of the costs and benefits to the applicant and the impact on greenhouse gas emissions. The Regulator must also ensure that the exemption is consistent with the objects of the Act, which aim to promote the development and adoption of energy-efficient and low greenhouse gas emission products. Furthermore, the Instrument mandates that the exemption be applied to the specified supplies and uses of the exempt models as outlined in the Schedule. Any breach of the requirements set out in the Act, the Determination, or the Instrument could lead to civil or criminal consequences, although the Instrument itself does not specify particular offences or penalties. Under the Act, non-compliance with the requirements of a GEMS determination could result in significant penalties, with the maximum penalty for contravening a GEMS determination being $1,080,000 for a corporation. Additionally, repeated non-compliance or intentional breaches could lead to further penalties, including ongoing fines and potential legal action. The Act also provides for the possibility of enforcement actions by the Regulator, including the issuance of compliance notices and the referral of matters to enforcement agencies. In conclusion, the Greenhouse and Energy Minimum Standards (Exemption) Instrument (No.4) 2017 provides a clear framework for exempting specific models of GEMS products from certain requirements, ensuring that the exemption process is both transparent and aligned with the objectives of the Act. By exempting the specified evaporative chillers from certain energy use and testing requirements, the Instrument supports the development of more efficient products while still maintaining the overall goals of reducing greenhouse gas emissions. The obligations on the GEMS Regulator and the applicant are clearly defined, and while the Instrument does not specify penalties, the broader legislative framework provides for significant consequences for non-compliance.