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RENEWABLE ENERGY (ELECTRICITY) AMENDMENT REGULATIONS 2002 (NO. 2) 2002 NO. 232

Statutory Rules 2002 No. 232

Subject - Renewable Energy (Electricity) Act 2000

Renewable Energy (Electricity) Amendment Regulations 2002 (No. 2)

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 puts in place the target by establishing a legal requirement for wholesale purchasers (liable parties) of electricity to increase the amount of electricity they buy from renewable energy sources or pay a penalty (Parts 3 and 4). The Act establishes the framework for renewable energy generators (eligible parties) to create 'renewable energy certificates' (Part 2) which can be sold to liable parties and surrendered (Part 5) to a Renewable Energy Regulator to demonstrate compliance with the requirements of the Act.

The Renewable Energy (Electricity) Regulations 2001 (the principle Regulations) provide an administrative framework to implement the Act in relation to power station accreditation, eligibility requirements for solar water heaters and small generation units, and calculation methods for determining the number renewable energy certificates.

The purpose of the Regulations is to make changes to the eligibility requirements and list of eligible solar water heater models, and the method to calculate the number of renewable energy certificates an installation of a small solar photovoltaic generator (small solar panel generator that generates electricity) is eligible for, under the mandatory renewable energy target.

The Regulations would:

•       extend the period, from 1 July 2002 to 31 December 2002, for heat pump water heater manufacturers to demonstrate certification against Australian Standard 2712:1993 (AS2712:1993). Compliance to AS2712:1993 is the main requirement to list a solar water heater in the Regulations. AS2712:1993 relates to the construction and design of solar water heaters. AS2712:1993 is being expanded to cover heat pump water heaters that are currently available on the market. The current Standard will be replaced later this year by a new version of the Standard. By extending the timeframe by which product certification must be demonstrated, heat pump water heaters can remain listed in the Regulations until the Standard is updated to provide suitable tests for a heat pump water heater to be awarded product certification (Item 4 of Schedule 1 refers);

•       add definitions to the principle Regulations. The additional definitions will support the eligibility requirements of product certification, that solar water heater manufacturers are required to meet in order to list their solar water heaters in Schedule 7 of the principle Regulation, thereby listing eligible solar water heaters and the number of renewable energy certificates (Items 1, 2, and 3 of Schedule 1, and Items 1, 2, and 3 of Schedule 2 refer);

•       add further solar water heater models to the eligibility tables in the Regulations, including eligibility end dates for solar water heaters that have not been certified to AS2712:1993. When new solar water heaters are listed, homeowners who install them will be able to access financial incentives. The Regulations will add about 175 additional eligible solar water heaters, and 54 commercial solar water heater systems to Schedule 7 (Item 4, 5, and 10 of Schedule 2 refer); and

•       provide a revised method of calculating the number of renewable energy certificates a small solar panel generator would be eligible for. Data from the revised Schedule 5, reflecting a zone rating table and postcode zone table (the location rating value), is used in conjunction with a formula. This is performed by, determining the location rating value and multiplying this figure with the capacity of the small solar panel generator, which determines the number of renewable energy certifications the installation is eligible for (Items 6, 7, 8 and 9 of Schedule 2 refer).

Details of the Regulations are set out in the Attachment.

The Regulations would commence as follows:

•       Regulations 1 to 3 and Schedule 1 to commence on 1 July 2002; and

•       Schedule 2 to commence upon gazettal.

The backdating of eligibility of certain solar water heaters will not breach subsection 48 (2) of the Acts Interpretation Act 1901 as the retrospective nature of the amendment will not disadvantage any person.

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

(1) I confirm that in accordance with subsection 161 (2) of the Act, the Regulations have                been available for public comment for a period of no less than 30 days.        ..............................................................        Minister for the Environment and Heritage

Authority: Section 161 of the Renewable Energy (Electricity) Act 2000 and section 48 of the Acts Interpretation Act 1901

Attachment

Details of the Renewable Energy (Electricity) Amendment Regulations 2002 (No. 2)

Regulation 1 - Name of Regulations

This provides that the name of the regulations is the Renewable Energy (Electricity) Amendment Regulations 2002 (No. 2).

Regulation 2 - Commencement

This provides for Regulations 1 to 3 and Schedule 1 to commence on 1 July 2002.

This provides for Schedule 2 to commence upon gazettal.

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

This regulation provides for Schedule 1 and 2 of the amendment regulations to amend the Renewable Energy (Electricity) Regulations 2001.

Schedule 1 Amendments

Item 1 of Schedule 1 - Subregulation 3 (1), before definition of Act

This amendment inserts the definition of an accredited body, relating to the product certification of solar water heaters against Australian Standards.

Item 2 of Schedule 1 - Subregulation 3 (1), before definition of interconnected hydroelectric system

This amendment inserts the definition of a heat pump water heater.

Item 3 of Schedule 1 - Subregulation 3 (1), after definition of plantation

This amendment inserts the definition for product certification against Australian Standards.

Item 4 of Schedule 1 - Subregulation 3 (4)

This amendment extends the timeframe by which heat pump water heater manufacturers must demonstrate final product certification against Australian Standard 2713:1993 from 1 July 2002 to 31 December 2002 in order to be included in the Regulations.

Schedule 2 Amendments

Item 1 of Schedule 2 - Subregulation 3 (1), after definition of cogeneration

This amendment inserts the definition for component certification against Australian Standards.

Item 2 of Schedule 2 - Paragraph 3 (3) (a)

This amendment provides that a customer may claim renewable energy certificates for the installation of an eligible solar water heater only for a defined period mentioned in Part 2 of Schedule 7.

Item 3 of Schedule 2 - Paragraph 3 (3) (b)

This amendment clarifies the certification requirements for solar water heaters to be listed in Part 2 of Schedule 7.

Item 4 of Schedule 2 - Subregulation 19 (3)

This amendment:

•       reflects numbering changes for items mentioned in Subregulation 19 (3) (a); and

•       under Subregulation 19 (3) (b), includes a methodology on how to calculate the amount of renewable energy certificates for a commercial solar water heater as listed under items 322 and 323 of Part 2 of Schedule 7; and the number of renewable energy certificates a solar water heater installation is eligible for, which is determined by; the postcode location (mentioned in Part 1 of Schedule 7), and the date of installation mentioned in Part 2 of Schedule 7.

Item 5 Schedule 2 - Subregulation 19 (4) (b) (ii)

This amendment indicates the list of base models that are provided in Part 3 of Schedule 7. Base models are used to calculate the number of renewable energy certificates eligible for a solar water heater that replaces an electric-boosted solar water heater.

Item 6 of Schedule 2 - Paragraph 20 (1) (b)

This amendment provides a formula that will make the process of calculating renewable energy certificates for small generation units, in particular solar panel (photovoltaic) systems, easier and have a broader application.

Item 7 of Schedule 2 - Subregulation 20 (4), at the foot

This amendment refers to Divisions 2 and 3 of Part ' 2 of the Renewable Energy (Electricity) Act 2000 which refers to the process of eligibility when claiming renewable energy certificates for a wind, solar photovoltaic, or hydro system generating more than 25 MWh (Mega Watt hours) per year.

Item 8 of Schedule 2 - Subregulation 20 (4)

This amendment provides clarification of the terms used in the formula under Paragraph 20 (1) (b) (Item 6) and directs you to the appropriate Parts of Schedule 5 to source input figures for the calculation methodology.

Item 9 of Schedule 2 - Schedule 5

This amendment provides the zone rating numbers. (Part 1 of Schedule 5) and postcode ranges and corresponding zones (Part 2 of Schedule 5) that are used in conjunction with the formula provided in Paragraph 20 (1) (b) ( Item 6).

Item 10 of Schedule 2 - Schedule 7, Part 2

This amendment substitutes Part 2 of Schedule 7 by inserting:

(a) Part 2 of Schedule 7 which includes:

(i) about 175 additional domestic solar water heaters;

(ii) 54 additional commercial solar water heaters; and

(iii) the eligibility end dates for solar water heaters that did not successfully gain product certification to Australian Standard 2712:1993 by 30 June 2002; and

(b) Part 3 of Schedule 7 which provides information relating to the base models.

Eligible installations of models listed in the Part 2 of Schedule 7 are eligible for renewable energy certificates from the date that they commenced the process of seeking product certification under Australian Standard 2712 to 30 June 2002. Models that successfully obtain product certification to Australian Standard 2712:1993 have remained as eligible from 1 July 2002 onwards. Those models for which product certification was not obtained cease to be eligible from 30 June 2002.