Commonwealth Consolidated Acts Commonwealth Consolidated ActsThis Act applies in relation to the year commencing on 1 January 2001 as if the reference in section 39 to "31 March in the year" were a reference to "30 June in the year".
The objects of this Act are:
(a) to encourage the additional generation of electricity from renewable sources; and
(b) to reduce emissions of greenhouse gases in the electricity sector; and
(c) to ensure that renewable energy sources are ecologically sustainable; and
(d) to contribute to the achievement of Australia's greenhouse gas emissions reduction targets.
This is done through the issuing of certificates for the generation of electricity using eligible renewable energy sources and requiring certain purchasers (called liable entities ) to surrender a specified number of certificates for the electricity that they acquire during a year.
Where a liable entity does not have enough certificates to surrender, the liable entity will have to pay renewable energy shortfall charge.
An exemption relating to one or more emissions - intensive trade - exposed activities may be taken into account in working out a liable entity's renewable energy certificate shortfall for a year. If it is, it will reduce the renewable energy shortfall charge otherwise payable.
This Part provides for the creation, trading and extinguishing of renewable energy certificates.
There are 2 types of renewable energy certificates:
(a) large - scale generation certificates, which are created in relation to the generation of electricity by accredited power stations; and
(b) small - scale technology certificates, which are created in relation to the installation of solar water heaters and small generation units.
The certificates are used to avoid or reduce the amount of renewable energy shortfall charge that liable entities who acquire electricity have to pay. The liable entities will generally acquire the certificates by purchasing them.
The certificates are created by people who generate power from accredited power stations using eligible energy sources where the amount generated exceeds the relevant 1997 eligible renewable power base line. The certificates are also created for approved installations of solar water heaters or small generation units.
A person needs to be registered under Division 2 before they can create a certificate.
Division 2A provides for provisional accreditation of power stations.
A power station needs to be accredited under Division 3 before a certificate can be issued in relation to power generated by it.
A certificate must be registered when it is created. Every transfer of the certificate must also be registered.
When a certificate has been surrendered by a liable party, it ceases to be valid.
See also Part 2A (clearing house for small - scale technology certificates), which:
(a) provides a clearing house facility for the transfer of small - scale technology certificates; and
(b) gives the Regulator a limited power to create or cancel small - scale technology certificates.
This Division deals with the creation of certificates, known as renewable energy certificates.
There are 2 types of renewable energy certificates:
(a) large - scale generation certificates, which are created in relation to the generation of electricity by accredited power stations (see Subdivision A); and
(b) small - scale technology certificates, which are created in relation to the installation of solar water heaters and small generation units (see Subdivisions B and BA).
Small - scale technology certificates can also be created by the Regulator under Part 2A (clearing house for small - scale technology certificates).
Subdivision BB requires people who create certificates under Subdivision B or BA to submit returns relating to the creation of the certificates.
Subdivision C contains offence and civil penalty provisions relating to the improper creation of certificates.
This Part deals with liability to renewable energy shortfall charge.
Subdivision A of Division 1 defines who is a liable entity.
There are 2 types of renewable energy shortfall charge:
(a) large - scale generation shortfall charge (see Subdivision B of Division 1), which is calculated by reference to a liable entity's relevant acquisitions of electricity, its exemptions, the number of large - scale generation certificates it surrenders and the renewable energy power percentage; and
(b) small - scale technology shortfall charge (see Subdivision C of Division 1), which is calculated by reference to a liable entity's relevant acquisitions of electricity, its exemptions, the number of small - scale technology certificates it surrenders and the small - scale technology percentage.
Division 1A deals with the determination of the amount (if any) of a liable entity's exemption from charge.
Division 2 deals with the renewable power percentage for large - scale generation shortfall charge.
Division 2A deals with the small - scale technology percentage for small - scale technology charge.
Division 3 deals with other matters related to renewable energy shortfall charge.
Method statement
Step 1. Work out the total amount, in MWh, of electricity acquired by the liable entity during the year under relevant acquisitions.
Step 2. Subtract from the total electricity acquired the amount of the liable entity's exemption for the year.
Step 3. Multiply the result of step 2 by the renewable power percentage for the year and round the result to the nearest MWh (rounding 0.5 upwards). Add to the result any carried forward shortfall from the previous year or subtract any carried forward surplus for the previous year. The result is the liable entity's required large - scale renewable energy for the year.
Step 4. Subtract the total value, in MWh, of large - scale generation certificates surrendered for that year, under Subdivision A of Division 1 of Part 5, by the liable entity from the required large - scale renewable energy for the year.
Result: If the result is greater than zero, the liable entity has a large - scale generation shortfall for the year equal to the result.
If the result is zero, the liable entity does not have a large - scale generation shortfall for the year.
If the result is less than zero, the liable entity has a carried forward surplus for the year equal to the result (expressed as a positive).
Method statement
Step 1. Work out 35% of the previous year's reduced acquisitions. Multiply this by the small - scale technology percentage for the assessment year and round the result to the nearest MWh (rounding 0.5 upwards). The result is the required surrender amount .
Step 2. Add together:
(a) the total value, in MWh, of small - scale technology certificates surrendered, under Subdivision A of Division 1 of Part 5, by the liable entity during the surrender period for the first quarter; and
(b) the amount of any quarterly surplus that the liable entity has for the fourth quarter of the previous year.
The result is the surrendered amount .
Step 3. Subtract the surrendered amount from the required surrender amount.
Result: If the result is greater than zero, the liable entity has a quarterly shortfall for the first quarter of the assessment year equal to the result.
If the result is zero, the liable entity does not have a quarterly shortfall for the first quarter of the assessment year.
If the result is less than zero, the liable entity has a quarterly surplus for the first quarter of the assessment year equal to the result (expressed as a positive).
Method statement
Step 1. Work out 25% of the previous year's reduced acquisitions. Multiply this by the small - scale technology percentage for the assessment year and round the result to the nearest MWh (rounding 0.5 upwards). The result is the required surrender amount .
Step 2. Add together:
(a) the total value, in MWh, of small - scale technology certificates surrendered, under Subdivision A of Division 1 of Part 5, by the liable entity during the surrender period for the second quarter; and
(b) the amount of any quarterly surplus that the liable entity has for the first quarter of the assessment year.
The result is the surrendered amount .
Step 3. Subtract the surrendered amount from the required surrender amount.
Result: If the result is greater than zero, the liable entity has a quarterly shortfall for the second quarter of the assessment year equal to the result.
If the result is zero, the liable entity does not have a quarterly shortfall for the second quarter of the assessment year.
If the result is less than zero, the liable entity has a quarterly surplus for the second quarter of the assessment year equal to the result (expressed as a positive).
Method statement
Step 1. Work out 25% of the previous year's reduced acquisitions. Multiply this by the small - scale technology percentage for the assessment year and round the result to the nearest MWh (rounding 0.5 upwards). The result is the required surrender amount .
Step 2. Add together:
(a) the total value, in MWh, of small - scale technology certificates surrendered, under Subdivision A of Division 1 of Part 5, by the liable entity during the surrender period for the third quarter; and
(b) the amount of any quarterly surplus that the liable entity has for the second quarter of the assessment year.
The result is the surrendered amount .
Step 3. Subtract the surrendered amount from the required surrender amount.
Result: If the result is greater than zero, the liable entity has a quarterly shortfall for the third quarter of the assessment year equal to the result.
If the result is zero, the liable entity does not have a quarterly shortfall for the third quarter of the assessment year.
If the result is less than zero, the liable entity has a quarterly surplus for the third quarter of the assessment year equal to the result (expressed as a positive).
Method statement
Step 1. Work out the assessment year's reduced acquisitions. Multiply this by the small - scale technology percentage for the assessment year and round the result to the nearest MWh (rounding 0.5 upwards).
Step 2. Subtract from the amount worked out under step 1 the total of the required surrender amounts for the first, second and third quarters of the assessment year. The result (which may be less than zero) is the required surrender amount .
Step 3. Add together:
(a) the total value, in MWh, of small - scale technology certificates surrendered, under Subdivision A of Division 1 of Part 5, by the liable entity during the surrender period for the fourth quarter; and
(b) the amount of any quarterly surplus that the liable entity has for the third quarter of the assessment year.
The result is the surrendered amount .
Step 4. If the required surrender amount is zero or greater, subtract the surrendered amount from the required surrender amount.
Result: If the result is greater than zero, the liable entity has a quarterly shortfall for the fourth quarter of the assessment year equal to the result.
If the result is zero, the liable entity does not have a quarterly shortfall for the fourth quarter of the assessment year.
If the result is less than zero, the liable entity has a quarterly surplus for the fourth quarter of the assessment year equal to the result (expressed as a positive amount).
Step 5. If the required surrender amount is less than zero, add together that amount (expressed as a positive) to the surrendered amount.
Result: The liable entity has a quarterly surplus for the fourth quarter of the assessment year equal to the result.
This Part deals with various matters relating to the determination of a liable entity's liability to renewable energy shortfall charge.
Subdivision A of Division 1 requires the lodgment of annual energy acquisition statements by liable entities. The entity may surrender renewable energy certificates for the year (or for the quarters of the year) in the statement. The entity may surrender additional certificates in certain circumstances.
Subdivision B of Division 1 requires the lodgment of annual renewable energy shortfall statements by entities that have large - scale generation shortfalls or small - scale technology shortfalls.
Division 1A deals with the issue and amendment of exemption certificates.
Division 2 deals with the assessment of liability to renewable energy shortfall charge, and for the amendment of assessments. It also deals with other related matters.
This Division deals with a person's right to recover from another person an amount paid in discharge of a renewable energy shortfall charge related liability if:
• the person has paid the amount for or on behalf of the other person; or
• the persons are jointly liable to pay the amount.
This Part provides a regime for the audit of the affairs of registered persons and liable entities in so far as they relate to this Act.
Division 2 provides for the appointment of authorised officers to undertake audit functions and for the issue of identification for such persons.
Division 3 sets out the powers of authorised officers and Division 4 sets out the obligations imposed on authorised officers in the exercise of those powers.
Division 5 deals with an occupier's rights and responsibilities in circumstances where an authorised officer seeks to exercise audit powers.
Division 6 deals with the procedure for obtaining, and the nature of,
monitoring warrants.