EXPLANATORY STATEMENT
Issued by authority of the Minister for the Environment and Energy
National Greenhouse and Energy Reporting Act 2007
National Greenhouse and Energy Reporting Amendment (Reporting Obligations) Regulations 2018
The National Greenhouse and Energy Reporting Act 2007 (the Act) provides a framework for the reporting of emissions, energy production and consumption in Australia. It also provides for the Safeguard Mechanism to place limits on the net emissions of the largest facilities in Australia.
Section 77 of the Act 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 purpose of the National Greenhouse and Energy Reporting Amendment (Reporting Obligations) Regulations 2018 (the “Regulation”) is to update the definition of “decommissioned underground mine” in regulation 1.03 of the NGER Regulations, which is relevant to how emissions from underground coal mines are reported under the Act. 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.
The amendments were canvassed for public consultation as part of an exposure draft of the associated National Greenhouse and Energy Reporting (Measurement) Amendment (2018 Update) Determination 2018 (the “Measurement Amendment Determination”), which was released for public consultation on 30 May 2018. The draft Measurement Amendment Determination included the definition of “decommissioned underground mine” being included in the Regulation. Two submissions were received in response to public consultation, which did not result in any changes being made to the definition used in the Regulation.
ATTACHMENT A
Details of the National Greenhouse and Energy Reporting Amendment (Reporting Obligations) Regulations 2018 (the “Regulation”)
Section 1 – Name of regulation
Section 1 provides that the title of the Regulation is the National Greenhouse and Energy Reporting Amendment (Reporting Obligations) Regulations 2018.
Section 2 – Commencement
Section 2 provides that the Regulation commences on 1 July 2018.
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 of Schedule 1 repeals and replaces the definition of “decommissioned underground mine” in 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”). The new definition removes the requirement for 12 months to have elapsed since the underground mine was decommissioned and removes the reference to the drainage of methane.
Item 2 of Schedule 1 inserts a regulation to ensure that the revised definition applies to reports for the financial year commencing 1 July 2018 and later financial years.
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 (Reporting Obligations) Regulations 2018
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 (Reporting Obligations) Regulations 2018 amends the National Greenhouse and Energy Reporting Regulations 2008 to update the definition of “decommissioned underground mine”, consistent with the approach proposed for the National Greenhouse and Energy Reporting (Measurement) Determination 2008.
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 Josh Frydenberg MP
Minister for the Environment and Energy
Overview
The National Greenhouse and Energy Reporting Amendment (Reporting Obligations) Regulations 2018 were enacted to address the need for updating the regulatory framework under the National Greenhouse and Energy Reporting Act 2007, which governs the reporting of greenhouse gas emissions, energy production, and consumption in Australia. This regulation was introduced by the Minister for the Environment and Energy, in accordance with the authority granted under the Act, to ensure that the reporting mechanisms and definitions remain consistent with the latest scientific and technical understandings. The primary objective of these regulations is to refine the definition of "decommissioned underground mine" in the National Greenhouse and Energy Reporting Regulations 2008, ensuring accurate reporting of emissions from such mines. This change reflects broader updates to the measurement determinations under the Act, aiming to maintain the integrity and effectiveness of Australia’s greenhouse gas reporting system.
Scope and Application
The National Greenhouse and Energy Reporting Act 2007, supported by the National Greenhouse and Energy Reporting Amendment (Reporting Obligations) Regulations 2018, establishes a comprehensive framework for the reporting of greenhouse gas emissions and energy production and consumption in Australia. This Act applies to various entities including large facilities, entities involved in certain industrial processes, and greenhouse gas producers. The Act aims to ensure transparency and accountability in reporting by these entities, which are critical for the monitoring and regulation of emissions in Australia. The Act's jurisdictional reach is national, applying across all states and territories of Australia. It provides specific exclusions and thresholds that determine which entities are required to report, with a focus on larger emitters and high-impact industries. The Act's scope can be extended or modified through subordinate instruments, such as the NGER Regulations, which were updated in 2018 to refine the reporting obligations and definitions, including that of "decommissioned underground mine." These regulations ensure that the reporting framework remains current and aligned with measurement standards.
Key Provisions
The National Greenhouse and Energy Reporting Amendment (Reporting Obligations) Regulations 2018 (Regulation) amends the National Greenhouse and Energy Reporting Regulations 2008 (NGER Regulations) to update the definition of “decommissioned underground mine” as it appears in regulation 1.03 of the NGER Regulations (Section 4). The amendment is made to align with the changes being introduced to the National Greenhouse and Energy Reporting (Measurement) Determination 2008. Specifically, the new definition removes the previous requirement for a period of 12 months to have elapsed since the underground mine was decommissioned and eliminates the reference to the drainage of methane (Schedule 1, Item 1). Additionally, a new regulation is introduced to ensure that the revised definition applies to reports for the financial year beginning 1 July 2018 and subsequent financial years (Schedule 1, Item 2).
The Regulation imposes obligations on entities required to report under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) to ensure compliance with the updated definition of “decommissioned underground mine”. These entities must now report in accordance with the revised definition for financial years commencing on or after 1 July 2018. The updated definition affects how emissions from decommissioned underground mines are reported, and entities must ensure that their reporting accurately reflects the new criteria. The Regulation also mandates that the definition applies to any reports submitted for financial years beginning from the commencement date of the Regulation.
There are no specific offences, penalties, or civil/criminal consequences outlined for breaches of the Regulation itself. However, entities that fail to comply with the reporting requirements under the NGER Act may face penalties as stipulated in the Act. Under Section 129 of the NGER Act, entities that fail to lodge a report or provide information within the prescribed period may be liable to a penalty of up to $6,600 per day for each day the failure continues, with a maximum penalty of $660,000 for continuing offences. Additionally, Section 130 of the Act imposes penalties for providing false or misleading information, with penalties of up to $66,000 per day for each day the contravention continues, with a maximum penalty of $6.6 million for continuing offences. These penalties underscore the importance of accurate and timely reporting in compliance with the NGER Act.