Explanatory STatement
Issued by the Minister for the Environment and Heritage
Water Efficiency Labelling and Standards Act 2005
Water Efficiency Labelling and Standards Determination 2005
Subsection 18 (1) of the Water Efficiency Labelling and Standards Act 2005 (the Act) provides that the Commonwealth Minister may, by writing and in accordance with Subsection 18 (4), determine that water-use or water-saving products of a specified kind are WELS products.
The Act specifies conditions that need to be met before the power to make determinations concerning WELS products may be exercised. Subsection 18 (2) of the Act specifies that a determination under subsection 18 (1) must set out the WELS standard (the Standard). The Standard is a Schedule to the Water Efficiency Labelling and Standards Determination 2005 (the Determination). In accordance with Subsections 19 (1) and 19 (2) of the Act, the Standard sets out the requirements for WELS products to be registered and establishes the criteria for rating and labelling products in relation to water efficiency and general performance. The Standard also specifies a minimum water efficiency requirement and minimum general performance requirements, as provided for under Subsection 19 (3) of the Act.
The WELS Scheme is a national regulatory system. Subsection 18 (4) of the Act specifies that before making a determination under Subsection 18 (1), the Commonwealth Minister must have agreement to the terms of the determination from a majority of the participating States and Territories. Subsection 18 (5) specifies that a State or Territory is a participating State or Territory if there is a corresponding State‑Territory law. Subsection 12 (1) defines corresponding State Territory law to mean a law of a State or Territory whose operation involves the use of determinations made under Section 18 of the Act, that is declared by the Commonwealth Minister to correspond to the Act. States and Territories are currently establishing corresponding legislation to enable them to become participating State and Territories under Subsection 18 (5) of the Act. At the time of the making of the Determination, the States and Territories were not participating.
The Act establishes a framework for mandating water efficiency labelling and standards for a range of prescribed products. The Act, the Water Efficiency Labelling and Standards Regulations 2005 and the Determination, are intended to deliver a number of important water conservation benefits by enabling consumers to choose between products on the basis of water efficiency. This Determination and Standard ensures that water efficiency ‘star’ rating labels will appear on WELS products.
This Determination:
Makes washing machines, dishwashers, lavatory equipment, showers, tap equipment, urinal equipment, and flow control devices WELS products for the purposes of the Act;
Prescribes the standards for each WELS product; and
Prescribes the registration fee of $1500 (discussed below).
Under Section 21 of the Act the Secretary of the Commonwealth Department that deals with WELS matters to which the Act relates is the Regulator. Under the Act, all registrations will occur through the WELS Regulator, as detailed in the Determination.
Under this Determination, washing machines, dishwashers, lavatory equipment, showers, tap equipment and urinal equipment, must comply with the Standard and lavatory equipment will also be subject to minimum water efficiency requirements. Flow controllers may be voluntarily registered and labelled. All products that are required to be labelled under the WELS Scheme must be registered and rated for water efficiency. If a flow controller is voluntarily registered and labelled, it must also comply with all the relevant aspects of the Standard.
The Standard provides that from 1 July 2005 products may be voluntarily registered and labelled. This means that unlabelled products and 5A-labelled products (an existing voluntary label) will co-exist with WELS-labelled products. Voluntarily registered products will be subject to the mandatory requirements of the scheme.
Under the Standard, from 1 July 2006 products must be registered and labelled and toilet equipment will be subject to minimum water efficiency requirements. From this date all new products must comply with the WELS Scheme.
The Standard provides for the retail supply of pre-existing tap equipment, showers, toilet equipment and urinal equipment until 31 December 2006, provided that the products were manufactured in Australia or imported before the 1 July 2006 mandatory commencement date. The Standard also provides for the supply of pre-existing washing machines and dishwashers until 31 December 2007, provided that the products were manufactured in Australia or imported before 1 July 2006. This is permitted to allow a reasonable timeframe to move existing stock. The Standard requires that, from 1 January 2008, all products comply with the registration and labelling requirements, irrespective of their date of supply.
The Schedule to the Determination, setting out the Standard for the WELS products, includes:
Cross referencing (ie incorporation under the Legislative Instruments Act 2003 and discussed below) to other Australian Standards to ensure WELS products conform to relevant standards and general performance requirements;
Definitions related to the WELS products;
Requirements for the registration, performance, water consumption, rating, labelling and marking of the WELS products;
Rating specifications;
Registration application requirements and requirements for performance testing and test reports; and
Requirements for the design, printing and placement of water rating labels.
Under Part 7 of the Act, it is an offence to supply an unregistered and/or unlabelled WELS product if the WELS Standard requires the product to be registered and/or labelled for the purposes of supply. These offences are in relation to the supply of WELS products under the Act, with supply meaning to supply or to offer to supply for a consideration. Consistent with Paragraphs 19 (2) and 19 (4) of the Act, Annex C of the Standard sets the requirements for the registration and labelling of specified supplies of WELS products. It provides that used products (except for imported used products) need not be registered and labelled as WELS products and hence are not captured by the offence provisions of the Act. Annex C of the Standard specifies that used WELS products imported for the purposes of supply for any purpose must be registered and are captured by the offence provisions of the Act. Consistent with Subsection 13(1) of the Acts Interpretation Act 2003, expressions used in the instrument have the same meaning as in the enabling Act. Thus the meaning of the terms imported, and supply for any purpose in Annex C, do not, for example, capture the transport to Australia of personal household goods if the supply is not for a consideration.
Significant consultation on the establishment of the WELS Scheme was undertaken in the Regulation Impact Statement (RIS) tabled with the WELS Bill. Further regulatory impact assessment was not necessary as the Determination gives effect to the Act, and does not alter existing arrangements outlined in the RIS. The Standard was prepared by Standards Australia under a nationally recognised consensus-based process, which involved industry and consumer representation and broad consultation.
Section 67 of the Act enables the Regulator to charge fees for services. Paragraph 27 (1) (b) of the Act enables the charging of a fee for the registration of WELS products as specified in the Determination. Proposed cost recovery fees were outlined in the RIS, which estimated the amount for registration at $2,500 per model registered. However, due to expected efficiencies, the cost was revised to $1,500 which was announced in the May 2005 Budget.
The Determination requires industry to apply to the Regulator for the registration of WELS products. The Determination prescribes the registration fee is charged for:
- A single WELS product; or
- 2 or more WELS products of the same:
- Category (eg they are all taps);
- Manufacturer and brand;
- Water efficiency rating;
- Performance; and
- Physical characteristics that could affect the water efficiency or performance of the product, not those that affect only its appearance; or
- A set of minor products of the same manufacturer and brand name, with evidence to the Regulator that under 100 can be expected to be sold each year.
Review and revision of the Scheme is provided for under Section 76 of the Act, with an additional independent review of the operation of the Scheme to occur following the fifth anniversary of the commencement of the Act. Any part of the WELS Scheme could be considered for revision following the 5-year review, including this Determination.
Details of the Determination are set out in the Attachment.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003 and commenced on the day after registration on the Federal Register of Legislative Instruments.
Attachment
Details of the Water Efficiency Labelling and Standards Determination 2005
Section 1 provides that the name of the Determination is the Water Efficiency Labelling and Standards Determination 2005 (the Determination).
Section 2 provides that the Determination takes effect from the day after it is registered on the Federal Register of Legislative Instruments.
Section 3 defines “the Act” in this Determination to mean the Water Efficiency Labelling and Standards Act 2005. Section 3 also defines “set of minor products” as the meaning given by Section 8 of the Determination.
Section 4 prescribes the mandatory inclusion of washing machines, dishwashers, lavatory equipment, showers, tap equipment and urinal equipment within the meaning in the Schedule. It provides for the voluntary inclusion of flow controllers within the meaning in the Schedule.
Section 5 provides that the Schedule to this Determination sets out the WELS Standard for the WELS products.
Section 6 prescribes Section 4 and Annex A of the Standard set out the requirements for making application to the Regulator to register products.
Section 7 prescribes the conditions under clauses 4.5, 4.6 and 4.7 of the Schedule, which must be complied with for a product to remain registered.
Section 8 prescribes the registration fee of $1,500 to be charged for any application for registration of:
- a WELS product; or
- 2 or more WELS products of the same category (eg taps), manufacturer and brand, with the same water efficiency rating, performance, and physical characteristics that could affect the water efficiency or performance of the product, not those that affect only its appearance; or
- A set of minor products (as defined in Section 9).
Section 9 defines the minor products as requiring each product to have the same manufacturer and brand name, together with evidence submitted by the applicant to the Regulator showing that less than 100 of each of the products can be expected to be sold each year.
Details of Schedule 1 WELS Standard and related matters
A Standards Australia document control cover sheet indicates the Standards Australia standard development procedures, standard registration, quality assurance, technical and consultative validity and drafting arrangements for the Standard: AS/NZS 6400 – Water Efficient Products – Rating and labelling.
The Foreword provides information on the authorship of the Standard by Standards Australia/Standards New Zealand Committee WS-032, Water Efficient Products. It indicates the purpose of the Act and the objective of the WELS Scheme. It provides an outline of the requirements for WELS products. The Foreword discusses the applicability of the Standards to WELS products and arrangements for voluntary and phased applicability. It anticipates that the voluntary National Water Conservation Rating and Labelling Scheme (the 5A Scheme) will continue to be administered until the mandatory commencement date of the WELS Scheme (on 1 July 2006).
The Contents shows the structure of the Standard for navigation purposes.
Section 1 provides information on the scope of the Standard, lists (incorporates) other Australian Standards cross-referenced by this Standard, provides definitions related to the Standard, introduces the conformity assessment body, explains the family of models concept, provides contextual meanings, and provides the definition of the Regulator.
The cross-referenced (incorporated) documents (Subsection 1.2) are the Australian Standards that set the general performance requirements for WELS products. The incorporated standards are cross-referenced to establish technical definitions to properly identify WELS products and related components. The incorporated standards ensure that WELS products will meet general performance requirements for those products. For example, it is intended that a WELS rated and labelled dishwashers meets Australian Standards for dishwashers to ensure that rating claims are founded on a basis of acceptable performance. The WELS Standard identifies the version of referenced Standards. Revisions to these referenced Australian Standards may require the remaking of this Determination. Australian Standards can be obtained from Standards Australia (internet address: http://www.standards.com.au) and would likely be a necessary part of the technical reference libraries of manufacturers of WELS products.
Section 2 prescribes the requirements for the registration (by reference to Section 4), performance, water consumption, rating, labelling and marking of the WELS products.
Section 3 prescribes the rating specifications for water efficient products.
Section 4 outlines requirements and procedures for registration, including the registration lodgement details, requirements for registration, documentation and fees, holding and availability of records, notification of alterations, retesting and re-registration of products that no longer comply with this Standard due to alteration of the product or amendment of the Standard, and dispute resolution.
Annex A prescribes the format of application for registration.
Annex A1 provides the sample forms replicating the documents/forms that will be available online at the WELS website (http://www.waterrating.gov.au).
Annex A2 specifies testing and test report requirements in relation to registration requirements and provides a number of application form templates.
Annex B specifies the requirements for labelling and the design, printing and placement of water rating labels. It includes example labels to ensure consistency of the labels for production and placement by industry.
Annex C prescribes the requirements for the registration of WELS products including:
- Products that must be registered;
- Products that may be registered;
- Supplies of products that must be registered;
- Registered products that must be WELS-labelled; and
- Supplies of registered products that must be WELS-labelled.
Annex D describes the dishwasher rating algorithm to assist manufacturers to determine the applicable star ratings for their products.
Annex E describes the clothes washing machine rating algorithm to assist manufacturers to determine the applicable star ratings for their products.