EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Energy and Emissions Reduction
Greenhouse and Energy Minimum Standards Act 2012
Greenhouse and Energy Minimum Standards (Refrigerated Cabinets Revocation) Instrument 2020
Purpose and Operation
The Greenhouse and Energy Minimum Standards (Refrigerated Cabinets) Determination 2019 (the Determination) was made on 7 August 2019 to establish minimum energy efficiency requirements, and associated requirements for conducting tests, for refrigerated display cabinets, refrigerated storage cabinets, ice cream freezers and refrigerated display scooping cabinets for gelato. It was due to commence on 15 August 2020.
Following representations from a significant number of commercial refrigeration stakeholders regarding the impact of COVID-19 on supply chains and testing facilities (both in-house and third party), and consequently the stakeholders’ ability to have all of their products, particularly in the newly regulated product categories, registered against the Determination by the commencement date, the Government agreed to delay the commencement of the requirements to allow time for these issues to be overcome.
Subsection 35(5) of the Greenhouse and Energy Minimum Standards Act 2012 (the Act) provides that Subsection 33(3) of the Acts Interpretation Act 1901 (which deals with the variation and revocation of instruments) does not apply in relation to a GEMS determination. As a result, a GEMS determination may not be amended or varied to change the commencement date. Instead, it must be revoked and a new GEMS determination made with the revised commencement date.
Accordingly, the Greenhouse and Energy Minimum Standards (Refrigerated Cabinets Revocation) Instrument 2020 (the Instrument) is necessary to revoke the Determination for the purpose identified above.
Authority
Subsection 35(4) of the Act provides that the Minister may, by legislative instrument, revoke a GEMS determination without making a replacement determination.
Consultation
This Instrument was prepared in response to representations from industry stakeholders regarding the impact of COVID-19 on their circumstances. Further consultation was undertaken with a number of those stakeholders to seek additional information about the range and severity of the impacts, in order to develop a response appropriate for the industry as a whole.
Regulatory Impact
There will be no additional regulatory burden arising from the Instrument. As noted above, the purpose of the Instrument is simply to facilitate a delay in the commencement of new minimum energy efficiency requirements for refrigerated cabinets, which were covered by a comprehensive Council of Australian Governments (COAG) Decision RIS related to the 2019 Determination. This RIS process was assessed by the Office of Best Practice Regulation as meeting COAG’s best practice regulation requirements.
Detailed description of provisions in the Instrument
Part 1—Preliminary
1 Name
Section 1 sets out the title of the Instrument as the Greenhouse and Energy Minimum Standards (Refrigerated Cabinets Revocation) Instrument 2020.
2 Commencement
Section 2 sets out the commencement arrangements for the Instrument, which commences on the day that it is made.
3 Authority
Section 3 provides that the Instrument is made under section 35 of the Act.
4 Definitions
Section 4 provides definitions for the terms:
- commencement day, which is defined to mean the day on which the Instrument comes into force; and
- refrigerated cabinets determination, which is defined to mean the Greenhouse and Energy Minimum Standards (Refrigerated Cabinets) Determination 2019.
Part 2—Revocation
5 Revocation
Section 5 provides that the Instrument revokes the refrigerated cabinets determination, which ceases to be in force on the commencement day. It further provides that if the refrigerated cabinets determination is yet to come into force on the commencement day the Instrument, Section 5 has the effect that it never comes into force.
Overview
The Greenhouse and Energy Minimum Standards (Refrigerated Cabinets Revocation) Instrument 2020 (F2020L01013) was introduced in response to the significant challenges faced by commercial refrigeration stakeholders due to the COVID-19 pandemic, particularly in relation to supply chain disruptions and the unavailability of testing facilities. This instrument, issued under the authority of the Minister for Energy and Emissions Reduction, revokes the Greenhouse and Energy Minimum Standards (Refrigerated Cabinets) Determination 2019 to delay the implementation of new energy efficiency requirements for refrigerated display cabinets, refrigerated storage cabinets, ice cream freezers, and refrigerated display scooping cabinets for gelato. The delay aims to provide these stakeholders with additional time to ensure their products meet the new standards, aligning with the policy objective of facilitating a practical response to the unprecedented circumstances caused by the pandemic. The Greenhouse and Energy Minimum Standards Act 2012, enacted by the Parliament, established the framework for these energy efficiency standards and provided the legislative basis for the revocation instrument.
Scope and Application
The Greenhouse and Energy Minimum Standards (Refrigerated Cabinets Revocation) Instrument 2020 applies to the previously established Greenhouse and Energy Minimum Standards (Refrigerated Cabinets) Determination 2019, which aimed to set minimum energy efficiency standards for refrigerated display cabinets, refrigerated storage cabinets, ice cream freezers, and refrigerated display scooping cabinets for gelato. This instrument operates within the legislative framework provided by the Greenhouse and Energy Minimum Standards Act 2012 and addresses the impact of COVID-19 on the industry's ability to meet the standards by delaying the implementation of these requirements. The Instrument is applicable to entities involved in the manufacture, importation, supply, or distribution of these refrigerated products within Australia. Its jurisdictional reach is national, affecting industry stakeholders across the Commonwealth. Notably, the Instrument does not create any new regulatory burden but rather seeks to alleviate the immediate impact of the original determination on the industry, allowing more time for supply chain and testing facility adjustments. The Instrument revokes the previous determination, ensuring that the delayed commencement of the new standards is legally recognised, and a new determination with a revised commencement date must be subsequently made.
Key Provisions
The main operative sections of the Greenhouse and Energy Minimum Standards (Refrigerated Cabinets Revocation) Instrument 2020 (the Instrument) are found in Part 2, which specifically addresses the revocation of the previous Determination. Section 5 (5) revokes the Greenhouse and Energy Minimum Standards (Refrigerated Cabinets) Determination 2019, ensuring that it does not come into force on the commencement day of the Instrument. This effectively delays the implementation of the minimum energy efficiency requirements for refrigerated cabinets, which were initially set to commence on 15 August 2020.
The obligations imposed by the Act on the parties and entities it governs include adhering to the revised commencement date set out in the Instrument, which is now delayed due to the impact of COVID-19 on supply chains and testing facilities. This delay acknowledges the challenges faced by commercial refrigeration stakeholders and aims to provide them with sufficient time to ensure compliance with the new standards. The Act also requires stakeholders to engage in consultation with the government to inform any necessary adjustments to regulatory timelines.
Under the Act, breaches of the delayed commencement provisions may not result in direct criminal or civil penalties as the Instrument primarily serves to revoke and delay the commencement of the Determination. However, stakeholders must ensure that they comply with the revised date to avoid non-compliance issues when the new standards eventually come into force. The original Determination, once finally implemented, will still carry its own set of compliance requirements and penalties for non-compliance, which were detailed in the 2019 Determination and are not altered by this revocation Instrument.
In summary, the Instrument revokes the previously scheduled commencement of energy efficiency standards for refrigerated cabinets, responding to industry challenges due to COVID-19. The obligations on stakeholders involve compliance with the new timeline, and while there are no direct penalties for the delay, ongoing adherence to the eventual implementation of the standards is crucial to avoid future regulatory repercussions.