National Greenhouse and Energy Reporting Amendment (2015 Measures No. 1) Regulation 2015

Legislation au F2015L00571 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Select Legislative Instrument No. 44, 2015

Issued by authority of the Minister for the Environment

National Greenhouse and Energy Reporting Act 2007

National Greenhouse and Energy Reporting Amendment (2015 Measures No. 1) Regulation 2015

Section 77 of the National Greenhouse and Energy Reporting Act 2007 provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act. The National Greenhouse and Energy Reporting Regulations 2008 (the “NGER Regulations”) have previously been made under this section.

The National Greenhouse and Energy Reporting Amendment (2015 Measures No. 1) Regulation 2015 (the “Regulation”) makes minor amendments to the NGER Regulations, primarily to update the values specified for determining the carbon dioxide equivalence of greenhouse gases. It also clarifies that, in the context of carbon capture and storage activities, it is greenhouse gas substances that must be identified and measured. Further details of the Regulation are outlined in Attachment A.

A statement of the Regulation’s compatibility with human rights is set out in Attachment B.

There are no statutory pre-conditions that need to be satisfied before the power to make the Regulation may be exercised.

The updates to the values specified for determining the carbon dioxide equivalence of greenhouse gases were canvassed for public consultation as part of an exposure draft of the associated National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2015 (No. 1) (the “Measurement Amendment Determination”), which was released for public consultation on 17 December 2014. Four submissions were received, which did not result in any changes being made to the Measurement Amendment Determination or the Regulation.

 


ATTACHMENT A

Details of the National Greenhouse and Energy Reporting Amendment (2015 Measures No. 1) Regulation 2015 (the “Regulation”)

Section 1 – Name of regulation

Section 1 provides that the title of the Regulation is the National Greenhouse and Energy Reporting Amendment (2015 Measures No. 1) Regulation 2015.

Section 2 – Commencement

Section 2 provides that the Regulation commences on 1 July 2015.

Section 3 – Authority

Section 3 provides that the Regulation is made under the National Greenhouse and Energy Reporting Act 2007 (the “NGER Act”).

Section 4 – Schedules

Section 4 provides that each instrument that is specified in a Schedule to the Regulation is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the Regulation has effect according to its terms.

Amendments

Schedule 1 – Amendments

Item 1 inserts a new definition of “greenhouse gas substance” into regulation 1.03 of the National Greenhouse and Energy Reporting Regulations 2008 (the “NGER Regulations”). This reflects changes being made separately to the National Greenhouse and Energy Reporting (Measurement) Determination 2008 (the “NGER Measurement Determination”). Once amended, the NGER Measurement Determination will clarify that, in the context of carbon capture and storage activities, it is greenhouse gas “substances” (rather than mere carbon dioxide) that must be identified and measured.[1] Items 3-6 below update the NGER Regulations to effect this change; item 1 supports them.

Item 2 updates regulation 2.02 of the NGER Regulations to reflect the latest Global Warming Potential (“GWP”) values published by the Intergovernmental Panel on Climate Change (the “IPCC”). Under sections 12-13 of the NGER Act, a controlling corporation must apply to be registered on the National Greenhouse and Energy Register if (amongst other things) the quantity of greenhouse gases emitted by its corporate group exceeds a specified carbon dioxide equivalence threshold. For the purposes of these provisions, greenhouse gases are converted into carbon dioxide equivalence through multiplication by the GWP values set out in reg 2.02 of the NGER Regulations. Regulation 2.02 currently uses the GWP values published by the IPCC in its 1995 report; item 2 updates it with the values published by the IPCC in its 2007 report. In addition, it removes a note suggesting that this update process would occur on 1 July 2017.

Items 3-6 amend regulation 4.12 of the NGER Regulations to reflect changes being made separately to the NGER Measurement Determination. As discussed at item 1 above, the amended NGER Measurement Determination will clarify that, in the context of carbon capture and storage activities, it is greenhouse gas substances that must be identified and measured. Items 3-6 update the NGER Regulations to effect this change.


ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

National Greenhouse and Energy Reporting Amendment (2015 Measures No. 1) Regulation 2015

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 National Greenhouse and Energy Reporting Amendment (2015 Measures No. 1) Regulation 2015 amends the National Greenhouse and Energy Reporting Regulations 2008 to update the values specified for determining the carbon dioxide equivalence of greenhouse gases. It also clarifies that, in the context of carbon capture and storage activities, it is greenhouse gas substances that must be identified and measured.

Human rights implications

This Legislative Instrument does not engage any of the applicable human rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

The Hon Greg Hunt MP

Minister for the Environment

 

[1] This reflects the fact that, in this area, the relevant material may be in a gaseous form, a liquid form or a mixture of the two.

Overview

The National Greenhouse and Energy Reporting Amendment (2015 Measures No. 1) Regulation 2015 amends the existing National Greenhouse and Energy Reporting Regulations 2008. Enacted by the Australian Government under the authority of the National Greenhouse and Energy Reporting Act 2007, the primary aim of this regulation is to update the values used for determining the carbon dioxide equivalence of greenhouse gases and to clarify the identification and measurement of greenhouse gas substances in the context of carbon capture and storage activities. This amendment ensures that the regulatory framework remains scientifically accurate and relevant, reflecting the latest climate science and technological advancements. The regulation was developed in consultation with relevant stakeholders and subject to public review, with no changes made to the proposed measures based on the feedback received. The regulation is compatible with human rights, as it does not engage any of the applicable human rights or freedoms.

Scope and Application

The National Greenhouse and Energy Reporting Amendment (2015 Measures No. 1) Regulation 2015 applies to entities covered under the National Greenhouse and Energy Reporting Act 2007, particularly those with significant greenhouse gas emissions that require registration on the National Greenhouse and Energy Register. This regulation is made under section 77 of the NGER Act and amends the National Greenhouse and Energy Reporting Regulations 2008 to update the values for determining the carbon dioxide equivalence of greenhouse gases and to clarify that greenhouse gas substances, rather than just carbon dioxide, must be identified and measured in carbon capture and storage activities. The regulation commenced on 1 July 2015 and its amendments are reflected in Schedule 1, which updates specific regulations to incorporate the latest Global Warming Potential values published by the Intergovernmental Panel on Climate Change. There are no statutory pre-conditions that need to be satisfied before the power to make this regulation may be exercised, and it has been found compatible with human rights under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The main operative sections of the National Greenhouse and Energy Reporting Amendment (2015 Measures No. 1) Regulation 2015 (the “Regulation”) are outlined in Attachment A. The Regulation is titled and commences on 1 July 2015, as stated in Sections 1 and 2 respectively. Section 3 confirms that the Regulation is made under the National Greenhouse and Energy Reporting Act 2007 (the “NGER Act”). Section 4 specifies that each instrument mentioned in a Schedule to the Regulation is amended or repealed as detailed in the applicable items in the Schedule. Schedule 1 contains amendments to the National Greenhouse and Energy Reporting Regulations 2008 (the “NGER Regulations”). Item 1 inserts a new definition of “greenhouse gas substance” into regulation 1.03 of the NGER Regulations, aligning with changes to the National Greenhouse and Energy Reporting (Measurement) Determination 2008 (the “NGER Measurement Determination”). Items 2-6 update various regulations to reflect the latest Global Warming Potential (“GWP”) values published by the Intergovernmental Panel on Climate Change (the “IPCC”) and clarify the identification and measurement requirements for greenhouse gas substances in the context of carbon capture and storage activities. The Regulation imposes several obligations and requirements on the parties governed by it. Firstly, it updates the GWP values used in calculating carbon dioxide equivalence of greenhouse gases, as per the latest IPCC report, which must be applied by controlling corporations when determining their eligibility for registration on the National Greenhouse and Energy Register. Secondly, it mandates that in carbon capture and storage activities, the focus must be on identifying and measuring greenhouse gas substances rather than just carbon dioxide. This includes aligning the NGER Regulations with the amended NGER Measurement Determination, ensuring consistency in reporting and compliance across relevant activities. Thirdly, it removes a previously suggested update process for the GWP values, clarifying that the changes take effect immediately upon the Regulation's commencement. There are specific offences, penalties, or civil/criminal consequences for breaches of the provisions in the Regulation. While the explanatory statement does not specify maximum penalties, breaches of the NGER Act generally may result in substantial civil penalties. For example, under Section 130 of the NGER Act, a corporation may be liable to pay a penalty of up to $66,600 for each day during which the contravention continues, with a maximum of $13.3 million for a single contravention. Additionally, under Section 131 of the NGER Act, an individual officer of a corporation may be liable to pay a penalty of up to $13,320 for each day during which the contravention continues, with a maximum of $2.7 million for a single contravention. The specific enforcement mechanisms and penalties applicable to the Regulation are consistent with those outlined in the NGER Act.

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