OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS MANAGEMENT AMENDMENT (LOW VOLUME IMPORT EXEMPTIONS) REGULATION 2015 (SLI NO 22 OF 2015) EXPLANATORY STATEMENT

OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS MANAGEMENT AMENDMENT (LOW VOLUME IMPORT EXEMPTIONS) REGULATION 2015 (SLI NO 22 OF 2015)

Ozone Protection and Synthetic Greenhouse Gas Management Amendment (Low Volume Import Exemptions) Regulation 2015

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (the Act) controls the manufacture, import, export, use and destruction of ozone depleting substances (ODS) and synthetic greenhouse gases (SGGs). The Act implements Australia's obligations under the Vienna Convention for the Protection of the Ozone Layer, the Montreal Protocol on Substances that Deplete the Ozone Layer (the Montreal Protocol), the United Nations Framework Convention on Climate Change and its Kyoto Protocol.

Section 70 of the Act provides 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.

The Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 (the Principal Regulations) contain controls relating to licensing, import, export, manufacture, and disposal of scheduled substances.

The Ozone Protection and Synthetic Greenhouse Gas Management Amendment (Low Volume Import Exemptions) Regulation 2015 (the Regulation) allows importers of air conditioning equipment who are subject to the low volume exemption from the requirement to hold an ODS/SGG equipment licence (set out in paragraph 13(6A)(c) of the Act) to also be exempt from the prohibition on importing air conditioning equipment pre-charged with hydrochlorofluorocarbon (HCFC). Without this exemption, it has not been possible for these importers to bring HCFC pre-charged air conditioning equipment into Australia.

The manufacture and import of air conditioning equipment is prohibited where the equipment is either charged with chlorofluorocarbon (CFC) or HCFC refrigerant, designed to operate by solely using a CFC refrigerant, a HCFC refrigerant, or either a CFC refrigerant or a HCFC refrigerant, or the equipment is insulated with foam manufactured with a CFC or a HCFC (section 38 and subclause 10(1) of Schedule 4 of the Act). This prohibition does not apply to equipment specified in the Principal Regulations (subclause 10(1A)).

The Regulation amends the Principal Regulations to specify, for the purposes of subclause 10(1A) of the Act, the import of HCFC pre-charged air conditioning equipment by importers who meet the conditions specified in paragraph 13(6A)(c) of the Act.

Prior to 4 November 2014, there was an exemption in the Principle Regulations that allowed the import of low volume pre-charged HCFC air conditioning equipment (paragraph 70(2)(b) of the Principle Regulations). The exemption recognised that for low volume imports, such as a single air conditioner or an air conditioner on a boat, the regulatory burden is higher than the environmental cost. The Regulation corresponds to and effectively replaces this exemption. The Regulation does not impact on Australia's obligations under the Montreal Protocol to phase out ozone depleting substances.

The policy measure was developed in consultation with the Australian Customs and Border Protection Service. The Department also sought comment from industry stakeholders, including the Air Conditioning and Equipment Manufacturers' Association of Australia and their constituent members, the Consumer Electronics Suppliers Association and its members, as well as known importers of components for high static air conditioning and HCFC pre-charged refrigeration equipment. The Department also consulted the co-chairs of the Montreal Protocol's Refrigeration, Air Conditioning and Heat Pumps Technical Options Committee. However, no stakeholders provided feedback on the proposed exemption to the ban on importing HCFC pre-charged air conditioning equipment.

The Act specifies no conditions that need to be satisfied before the power to make the Regulation may be exercised.

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Regulation commences on the day after registration on the Federal Register of Legislative Instruments.

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Details of the Ozone Protection and Synthetic Greenhouse Gas Management Amendment (Low Volume Import Exemptions) Regulation 2015

Section 1- Name of regulation

This provides that the title of the regulation is the Ozone Protection and Synthetic Greenhouse Gas Management Amendment (Low Volume Import Exemptions) Regulation 2015 (the Regulation).

Section 2 - Commencement

This section provides that the Regulation commences on the day after it is registered.

Section 3 - Authority

This section provides that the Regulation is made under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (the Act).

Section 4 - Schedule(s)

This section provides that each instrument specified in a Schedule to the Regulation is amended or repealed as set out in the applicable terms in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1 - Amendments

Item 1 - Before paragraph 73(1)(a)

This item inserts proposed subparagraph 73(1)(aa) to prescribe for the purposes of subclause 10(1A) to Schedule 4 of the Act, HCFC pre-charged air conditioning equipment imported by a person, so long as the importation of the equipment by the person satisfies the conditions mentioned in paragraph 13(6A)(c) of the Act.

Paragraph 13(6A)(c) of the Act was added by the Omnibus Repeal Day (Autumn 2014) Act 2014 to provide a mechanism to exempt low volume importers of ODS/SGG equipment from the requirement to hold an ODS/SGG equipment licence. Paragraph 13(6A)(c) provides that a person must not import ODS or SGG equipment unless the following conditions are satisfied: (i) the total number of ODS equipment and SGG equipment imported by the person in a period prescribed by the regulations is no more than the number prescribed in the regulations; and (ii) the person, the equipment, and the importation, meet the conditions (if any) prescribed by the regulations.

The conditions relevant for paragraph 13(6A)(c) are prescribed in subregulations 3(5) and (6) of the Principal Regulations. For the purposes of subparagraph 13(6A)(c)(i), subregulation 3(5) prescribes a period of 2 years ending at the end of the day the importation occurs, and 5 units of ODS equipment and SGG equipment. For the purposes of subparagraph 13(6A)(c)(ii), subregulation 3(6) prescribes that the import is the first import of ODS equipment or SGG equipment by the person in the period mentioned in subregulation 3(5), and the equipment in the import contains, in total, less than 10 kilograms of each of HCFC, HFC, PFC, and sulfur hexafluoride.

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Ozone Protection and Synthetic Greenhouse Management Amendment (Low Volume Import Exemptions) Regulation 2015

Overview of the Legislative Instrument

The Ozone Protection and Synthetic Greenhouse Gas Management Amendment (Low Volume Import Exemptions) Regulation 2015 (the Regulation) amends the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 to specify, for the purposes of subclause 10(1A) of the Act, the import of hydrochloroflurocarbon (HCFC) pre-charged air conditioning equipment by those who meet the conditions specified in paragraph 13(6A)(c) of the Act. This will allow those who meet the conditions specified in paragraph 13(6A)(c) of the Act to successfully import HCFC pre-charged air conditioning equipment into Australia.

Human rights implications

The Regulation has been assessed against the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. The Regulation does not engage any of the applicable rights or freedoms.

Conclusion

The Regulation is compatible with Australia's human rights obligations.

The Hon Greg Hunt MP, Minister for the Environment

Commonwealth Numbered Regulations - Explanatory Statements