The following is a simplified outline of this Part:
• This Part sets out rules for:
(a) identifying the persons who are liable entities for a financial year (liable entities are liable to pay unit shortfall charge if they do not surrender sufficient eligible emissions units); and
(b) the provisional emissions numbers of those liable entities (provisional emissions numbers are used to work out the number of eligible emissions units that must be surrendered by a liable entity to avoid being liable to pay unit shortfall charge).
• If a person is responsible for covered emissions of greenhouse gas from the operation of a facility during a financial year:
(a) the person is a liable entity for the financial year; and
(b) the number of tonnes of carbon dioxide equivalence of the gas is a provisional emissions number of the person for the financial year.
• A person can be responsible for covered emissions of greenhouse gas from the operation of a facility because:
(a) the person has operational control of the facility; or
(b) the person is a participant in a designated joint venture that has the facility; or
(c) the person is the holder of a liability transfer certificate in relation to the facility.
• A covered emission of greenhouse gas from the operation of a facility is a scope 1 emission (within the meaning of the National Greenhouse and Energy Reporting Regulations 2008 ), but does not include:
(a) emissions attributable to the combustion of certain fossil fuels; and
(b) emissions attributable to the combustion of biomass, biofuel or biogas; and
(c) agricultural emissions; and
(d) fugitive emissions from decommissioned underground mines; and
(e) emissions from legacy waste; and
(f) emissions from closed landfill facilities; and
(g) emissions of certain synthetic greenhouse gases.
• If a natural gas supplier supplies natural gas during a financial year:
(a) the supplier is a liable entity for the financial year; and
(b) the number of tonnes of carbon dioxide equivalence of the potential greenhouse gas emissions embodied in the natural gas is a provisional emissions number of the supplier for the financial year.
• If a natural gas supplier supplies an amount of natural gas to another person (the recipient ) who quotes the recipient's Obligation Transfer Number (OTN) in relation to the supply, the supply will not count towards the supplier's liability for the financial year.
• If a person (the OTN holder ) quotes the OTN holder's OTN in relation to the supply of an amount of natural gas, the OTN holder may be a liable entity.
• There is to be an Opt-in Scheme under which a designated opt-in person will be a liable entity because of the acquisition, manufacture or importation of taxable fuel.