Ozone Protection Amendment Regulations 2003 (No. 1)

Administered by Department of the Environment and Energy

Legislation au F2003B00294 Regulations Not in force Legislative Instrument

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Ozone Protection Amendment Regulations 2003 (No. 1) 2003 No. 279

EXPLANATORY STATEMENT

STATUTORY RULES 2003 No. 279

ISSUED BY AUTHORITY OF THE MINISTER FOR THE ENVIRONMENT AND HERITAGE

Ozone Protection Amendment Regulations 2003 (No. 1)

Ozone Protection (Licence Fees - Imports) Amendment Regulations 2003 (No. 1)

Ozone Protection (Licence Fees - Manufacture) Amendment Regulations 2003 (No. 1)

Section 70 of the Ozone Protection Act 1989 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, 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. Paragraph 16 (2)(a) of the Act provides that the Minister must not grant a licence to a person unless that person has paid the prescribed fee for the grant of the licence. These fees are currently prescribed in the Ozone Protection Regulations 1995 (the Principal Regulations).

Section 5 of the Ozone Protection (Licence Fees - Imports) Act 1995 and section 5 of the Ozone Protection (Licence Fees - Manufacture) Act 1995 provide that the Governor-General may make regulations fixing the rate for the purpose of calculating fees for the import and manufacture of hydrochlorofluorocarbons (HCFCs) and methyl bromide - two commonly used ozone-depleting substances that are scheduled to be phased-out under Australia's commitment to the Montreal Protocol on Substances that Deplete the Ozone Layer (the Protocol). The rates for licence fees applying to the import and manufacture of these substances are currently prescribed in the Ozone Protection (Licence Fees - Imports) Regulations and the Ozone Protection (Licence Fees - Manufacture) Regulations respectively.

The purpose of the Ozone Protection Amendment Regulations 2003 (No. 1) is to increase the prescribed fees under Regulation 3 of the Principal Regulations, which sets the fees for an application to obtain a controlled substance licence, an essential uses licence and a used substance licence. A controlled substance licence allows the licensee to manufacture, import or export HCFCs or methyl bromide. An essential uses licence allows the licensee to manufacture, import or export specific ozone-depleting substances for essential uses as identified under the Protocol. A used substance licence allows the licensee to import or export specific recycled or used ozone-depleting substances. These licences are a key mechanism for controlling Australia's consumption of ozone-depleting substances and control the import, export or manufacture of specified ozone-depleting substances.

The Ozone Protection Amendment Regulations 2003 (No. 1) also omitted a spent regulation, which repealed the former Ozone Protection Regulations and an amending regulation.

The purpose of the Ozone Protection (Licence Fees - Imports) Amendment Regulations 2003 (No. 1) is to increase the rates under Regulation 4 of the Ozone Protection (Licence Fees - Imports) Regulations. The purpose of the Ozone Protection (Licence Fees - Manufacture) Amendment Regulations 2003 (No. 1) is to increase the rates under Regulation 4 of the Ozone Protection (Licence Fees - Manufacture) Regulations. These regulations set the rates for licence fees applying to the import and manufacture, respectively, of HCFCs and methyl bromide.

Both Licence Fees Regulations also updated the citation of those Regulations to add the year and italicise the title.

Part VIIIA of the Act provides that amounts equal to the licence fees collected under the Act and fees collected under the Ozone Protection (Licence Fees - Imports) Act 1995 and the Ozone Protection (Licence Fees - Manufacture) Act 1995 are deposited into the Ozone Protection Reserve and are used for reimbursing the Commonwealth for costs associated with furthering the HCFC and methyl bromide phaseout programs, providing information about those programs, administering of the licensing and quota systems established by the Act, and refunding any amounts paid into the Ozone Protection Reserve in error. Section 5 of the Financial Management Legislation Amendment Act 1999 converted the Ozone Protection Reserve into a Special Account for the purposes of the Financial Management and Accountability Act 1997.

The increases in licence fees and rates reflect the Government's intention that the Commonwealth's implementation of the Special Account's purposes should be revenue neutral. The previous licence fees and rates have been in place since the mid 1990's and no longer provide sufficient revenue to meet this requirement.

Details of the regulations are in the Attachment.

The Act, the Ozone Protection (Licence Fees - Imports) Act 1995 and the Ozone Protection (Licence Fees - Manufacture) Act 1995 specify no conditions that need to be met before the power to make the Regulations may be exercised.

Each of the Regulations commenced on gazettal.

Attachment

Details of the Ozone Protection Amendment Regulations 2003 (No. 1)

Regulation 1       States the regulations are to be known as the Ozone Protection Amendment Regulations 2003 (No. 1).

Regulation 2       Provides that the Regulations commence upon gazettal.

Regulation 3       Provides that the regulations are amended as set out in Schedule 1. Item 1 of Schedule 1 provides that the following fees for the application for a licence are prescribed:

-       For a controlled substance licence - $15 000;

-       For a used substance licence - $15 000; and

-       For an essential uses licence - $3 000.

Item 2 of Schedule 1 omits Regulation 7, which repealed Statutory Rules 1989 No. 70 and 1992 No. 348.

Details of the Ozone Protection (Licence Fees - Imports) Amendment Regulations 2003 (No. 1)

Regulation 1       States the regulations are to be known as the Ozone Protection (Licence Fees - Imports) Amendment Regulations 2003 (No. 1).

Regulation 2       Provides that the Regulations commence upon gazettal.

Regulation 3       Provides that these regulations are amended as set out in Schedule 1. Item 1 of Schedule 1 updates the citation of the principal regulation in line with current drafting practice so as to italicise the title and to include the date.

Item 2 of Schedule 1 provides that the following fees are prescribed:

-       In the case of HCFCs - $3.00 for each ozone-depleting potential kilogram imported; and

-       In the case of methyl bromide -13.5 cents per kilogram imported.

Details of the Ozone Protection (Licence Fees - Manufacture) Amendment Regulations 2003 (No. 1)

Regulation 1       States the regulations are to be known as the Ozone Protection (Licence Fees - Manufacture) Amendment Regulations 2003 (No. 1).

Regulation 2       Provides that the Regulations commence upon gazettal.

Regulation 3       Provides that these regulations are amended as set out in Schedule 1. Item 1 of Schedule 1 updates the citation of the principal regulation in line with current drafting practice so as to italicise the title and to include the date.

Item 2 of Schedule 1 provides that the following fees are prescribed:

-       In the case of HCFCs - $3.00 for each ozone-depleting potential kilogram manufactured; and

-       In the case of methyl bromide - 13.5 cents per kilogram manufactured.

 

Overview

The Ozone Protection Amendment Regulations 2003 (No. 1) were introduced to address the issue of outdated licence fees for controlled substances, which were no longer sufficient to meet the revenue requirements for the phaseout of ozone-depleting substances in Australia. Enacted by authority of the Minister for the Environment and Heritage, these regulations aimed to increase the prescribed fees for applications to obtain various types of licences related to the manufacture, import, and export of controlled substances such as hydrochlorofluorocarbons (HCFCs) and methyl bromide. The overarching policy objective was to ensure that the Commonwealth's implementation of the Special Account's purposes, which includes reimbursing the Commonwealth for costs associated with the phaseout programs and administering the licensing and quota systems, remained revenue neutral. By updating the fees, the government sought to generate the necessary revenue while continuing to control and phase out the use of substances that deplete the ozone layer, in line with Australia's commitment to the Montreal Protocol.

Scope and Application

The Ozone Protection Amendment Regulations 2003 (No. 1) and the associated amendments to the licence fee regulations for imports and manufacture of ozone-depleting substances, including hydrochlorofluorocarbons (HCFCs) and methyl bromide, are designed to align the fees with the current financial requirements for the implementation of Australia's obligations under the Montreal Protocol. These regulations apply to any person or entity seeking to import, manufacture, or export controlled substances as defined under the Ozone Protection Act 1989. The regulations affect industries that engage in the production, import, or export of substances that deplete the ozone layer, particularly HCFCs and methyl bromide. The increased fees are intended to ensure revenue neutrality for the Commonwealth's efforts in phasing out these substances. The scope of these regulations is national, applying across Australia under the authority of the Commonwealth government. The regulations specify no exclusions or exemptions but do update the citation of the relevant regulations to reflect current drafting practices. The amendments to the licence fees also extend to updating the citation of the principal regulations to include the date and italicise the title. Each of these regulations commenced upon gazettal, meaning they came into effect immediately after being published in the Commonwealth of Australia Gazette.

Key Provisions

The Ozone Protection Amendment Regulations 2003 (No. 1) (section 1) and the Ozone Protection (Licence Fees - Imports) Amendment Regulations 2003 (No. 1) and the Ozone Protection (Licence Fees - Manufacture) Amendment Regulations 2003 (No. 1) primarily concern the adjustment of fees related to the licensing and manufacture of certain ozone-depleting substances. The Ozone Protection Amendment Regulations 2003 (No. 1) primarily amend the fees for applications for controlled substance licences, used substance licences, and essential uses licences, with fees set at $15,000, $15,000, and $3,000 respectively (Regulation 3, Schedule 1). The Ozone Protection (Licence Fees - Imports) Amendment Regulations 2003 (No. 1) and the Ozone Protection (Licence Fees - Manufacture) Amendment Regulations 2003 (No. 1) update the fees for the import and manufacture of hydrochlorofluorocarbons (HCFCs) and methyl bromide, setting fees at $3.00 per ozone-depleting potential kilogram for HCFCs and 13.5 cents per kilogram for methyl bromide for both import and manufacture (Regulation 3, Schedule 1). These regulations impose specific obligations on entities seeking or holding various licences related to ozone-depleting substances. Entities must pay the prescribed fees for the application of controlled substance, used substance, and essential uses licences as outlined in the Ozone Protection Amendment Regulations 2003 (No. 1) (section 5 of the Ozone Protection Act 1989). Additionally, those involved in the import or manufacture of HCFCs and methyl bromide must adhere to the updated fees as specified in the Ozone Protection (Licence Fees - Imports) Amendment Regulations 2003 (No. 1) and the Ozone Protection (Licence Fees - Manufacture) Amendment Regulations 2003 (No. 1) (sections 5 of the Ozone Protection (Licence Fees - Imports) Act 1995 and the Ozone Protection (Licence Fees - Manufacture) Act 1995). Failure to comply with the fee requirements outlined in these regulations may not directly incur specific civil or criminal penalties. However, not paying the prescribed fees could result in the non-issuance of the required licences, which in turn could lead to legal repercussions under the Ozone Protection Act 1989 and associated Acts for unauthorised activities involving ozone-depleting substances. The primary consequence of non-compliance would be the inability to legally manufacture, import, or export the controlled substances without the requisite licence, which could also attract penalties under the respective Acts.

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