Renewable Energy (Electricity) Amendment Regulations 2003 (No. 1)

Renewable Energy (Electricity) Amendment Regulations 2003 (No. 1) 2003 No. 96

EXPLANATORY STATEMENT

Statutory Rules 2003 No. 96

Minute No.       of 2003 - Minister for the Environment and Heritage

Subject -       Renewable Energy (Electricity) Act 2000

Renewable Energy (Electricity) Amendment Regulations 2003 (No. 1)

Subsection 161 (1) of the Renewable Energy (Electricity) Act 2000 (the Act) provides that the Governor-General may make regulations prescribing all 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. Subsection 161 (2) provides that the draft regulations must be available for public comment for a period not less than 30 days before the regulations are made.(1)

The Act provides the legislative framework for the implementation of the Government's mandatory renewable energy target, announced by the Prime Minister on 20 November 1997. The mandatory renewable energy target is designed to increase the amount of electricity in Australia that has been generated from renewable energy sources. By 2010, an additional 9,500 GWh (Giga Watt hours) of electricity will be required to be supplied from renewable energy sources, to raise the contribution that renewable energy sources make to Australia's electricity supply to around 12 percent.

The Act requires wholesale purchasers of electricity (liable parties) to surrender `renewable energy certificates' to the Renewable Energy Regulator, or pay a penalty, to meet a share of the target, in proportion to their share of the national wholesale electricity market. The Act also establishes the framework for renewable energy generators (eligible parties) to create renewable energy certificates which can then be sold to liable parties to meet their requirements under the Act. An individual liable party determines the number of renewable energy certificates to surrender by multiplying the Renewable Power Percentage (RPP) by the amount of electricity they purchase.

The Renewable Energy (Electricity) Regulations 2001 (the principal regulations) provide the administrative framework to implement the Act in relation to power station accreditation, eligibility requirements for fuel sources, and calculation methods for determining the number of renewable energy certificates that can be claimed.

The purpose of the amendment regulations is to add new eligible solar water heater models to the eligibility tables in the principal regulations, specifying eligibility end dates, and to remove models where their eligibility has lapsed (Item 4 of Schedule 1 refers).

The amendment regulations will also:

•       clarify the eligibility requirements of solar water heater systems with a tank capacity greater than 700L (commercial systems) by inserting a relevant guideline governing heat loss test procedures, so that manufacturers are able to list eligible commercial systems in the principal regulations (Item 1 of Schedule 1 refers); and

•       clarify eligibility requirements for homeowners to claim renewable energy certificates after installing eligible solar water heaters (Items 2 and 3 of Schedule 1 refer).

As required, the relevant guideline has been publicly available, in hard copy from the Office of the Renewable Energy Regulator (ORER), and electronically from the ORER website, at http://www.orer.gov.au, since 29 March 2003.

Further details of the amendment regulations are set out in the Attachment.

The regulations would commence on gazettal.

To list new eligible solar water heaters in the principal regulations, manufacturers of solar water heater models must obtain product certification to Australian Standard 2712:2002. Eligibility for solar water heaters can be backdated to the date on which product certification was obtained. Backdating of some eligible solar water heaters (Schedule 1 refers) to be listed in Schedule 7 of the principal regulations will not breach subsection 48 (2) of the Acts Interpretation Act 1901, as the retrospective nature of these amendments will not disadvantage any person.

The Minute recommends that the Regulations be made in the form proposed.

Authority: Subsection 161 (1) of the Renewable Energy (Electricity) Act 2000 and subsection 48 (2) of the Acts Interpretation Act 1901

Attachment

Details of the Renewable Energy (Electricity) Amendment Regulations 2003 (No. 1)

Regulation 1 - Name of Regulations

This provides that the name of the regulations is the Renewable Energy (Electricity) Amendment Regulations 2003 (No. 1).

Regulation 2 - Commencement

This provides for Regulations 1 to 3 and Schedule 1 to commence on gazettal.

Regulation 3 - Amendment of the Renewable Energy (Electricity) Regulations 2001

This regulation provides for Schedule 1 of the amendment regulations to amend the Renewable Energy (Electricity) Regulations 2001.

Schedule 1 Amendments - Amendments commencing on gazettal

Item 1 of Schedule 1 - Paragraph 3(3)(b)

This amendment inserts a reference to a guideline that will establish heat loss testing parameters that manufacturers of solar water heater models with a hot water storage tank greater than 700L will be able to use in order to allocate renewable energy certificates to their solar water heater models.

Item 2 of Schedule 1 - Paragraph 19(1)(aa)

This amendment will clarify an eligibility requirement by changing the words "water heater" to "hot water system".

Item 3 of Schedule 1 - Paragraph 19(3)(b)

This amendment will revise existing subparagraph 19(3)(b) to simplify the methodology for determining the number of certificates that may be created for particular solar water heaters, as determined in Schedule 7 of the regulations.

Item 4 of Schedule 1 - Schedule, Part 2

This amendment consolidates Part 2 of Schedule 7 by:

•       inserting additional solar water heaters that are eligible, under the regulations, providing product certification to Australian Standard 2712:2002 has been obtained;

•       revising renewable energy certificate calculations for eligible solar water heaters;

•       deleting solar water heater models which are no longer eligible, as their eligibility has lapsed; and

•       inserting eligibility end dates for solar water heaters that did not successfully gain product certification to Australian Standard 2712:2002 by 31 December 2002.