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.5) 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.5) 2016 (the Instrument) is to exempt the specified air conditioners from the requirements specified in sections 6 and 7 of the Greenhouse and Energy Minimum Standards (Air Conditioners and Heat Pumps) Determination 2013 (the Determination).
Mitsubishi Electric Australia Pty Ltd (the applicant) has sought an exemption from the Determination for four of its air conditioner models. The applicant asserts that there would be difficulty in testing these models in accordance with section 6 of the Determination because the models are designed for commercial and industry purposes, rather than for human comfort. Consequently, the applicant would face considerable costs to comply with the Determination if the exemption was not granted.
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 air conditioners produced by the applicant, consultation was undertaken only with the applicant for 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 Models’ is defined in section 4.
5. Exemption
Section 5 exempts the air conditioner models specified in clause 1 of the Schedule (the Exempt Models) to the Instrument from the requirements of sections 6 and 7 of the Determination, subject to the conditions specified in section 6 of the Instrument.
6. Conditions of Exemption
Section 6 specifies that there are no 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 Models;
- 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. 5) 2016 was issued by the Greenhouse and Energy Minimum Standards Regulator under section 37 of the Greenhouse and Energy Minimum Standards Act 2012. This instrument aims to exempt certain air conditioner models from specific requirements set out in the Greenhouse and Energy Minimum Standards (Air Conditioners and Heat Pumps) Determination 2013. The applicant, Mitsubishi Electric Australia Pty Ltd, sought this exemption for four of its air conditioner models, citing the impracticality and significant costs associated with testing these models under the Determination's provisions, as they are designed for commercial and industrial use rather than for human comfort. The instrument exempts these specified models from the testing requirements of sections 6 and 7 of the Determination without imposing any conditions on the exemption.
Scope and Application
The Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 5) 2016 applies specifically to Mitsubishi Electric Australia Pty Ltd and its four models of air conditioners designed for commercial and industrial use. This legislative instrument is an exemption from the Greenhouse and Energy Minimum Standards (Air Conditioners and Heat Pumps) Determination 2013, as authorised under Section 37 of the Greenhouse and Energy Minimum Standards Act 2012. The exemption allows these particular air conditioner models to be exempt from certain requirements outlined in sections 6 and 7 of the Determination due to the impracticality and significant costs associated with testing them for compliance with human comfort standards. The exemption applies nationally across Australia and does not impose any specific conditions, thereby allowing the models to be exempt without additional stipulations. This exemption is confined to the specified air conditioner models of the applicant and does not extend to other products or entities.
Key Provisions
The Greenhouse and Energy Minimum Standards (Exemption) Instrument (No. 5) 2016 provides an exemption from certain requirements of the Greenhouse and Energy Minimum Standards (Air Conditioners and Heat Pumps) Determination 2013. Specifically, section 5 of the Instrument exempts four models of air conditioners produced by Mitsubishi Electric Australia Pty Ltd from the energy efficiency requirements set out in sections 6 and 7 of the Determination (section 5). This exemption is granted because the air conditioners are designed for commercial and industrial use rather than for human comfort, making it difficult and costly for the company to comply with the testing requirements (section 5). The exemption applies to all supplies and uses of these specific air conditioner models (section 5). Notably, section 6 of the Instrument specifies that the exemption is not subject to any conditions.
The Instrument imposes certain obligations and requirements on Mitsubishi Electric Australia Pty Ltd. Under section 2 of the Instrument, the company must ensure that the exempted air conditioner models comply with all other applicable requirements of the Determination and any other relevant legislation. This means that while the company is exempt from the specific energy efficiency testing requirements, it must still meet all other standards and criteria set out in the Determination. The company must also ensure that the exempted models are not misrepresented or used in a way that would contravene the Determination or any other applicable laws.
Failure to comply with the provisions of the Instrument or the Determination can result in various consequences. Under section 41 of the Greenhouse and Energy Minimum Standards Act 2012, a person who contravenes a requirement of a GEMS determination commits an offence and is liable to a penalty. The maximum penalty for an individual is a fine of up to $126,000, while for a body corporate, the penalty can be up to $630,000 (section 41). Additionally, section 42 of the Act provides that a person who contravenes a requirement of a GEMS determination may be subject to civil penalty proceedings, which can result in further fines and orders from the court. It is also worth noting that a failure to comply with the Act and the Determination can lead to reputational damage, loss of consumer trust, and potential recalls or bans on the sale of non-compliant products.