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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 CONTENTS Part 1 -- Preliminary 1. Short title 2 2. Commencement 2 Part 2 -- A Renewable Energy Feed- in Tariff for WA 3. Object of this Act 3 4. Terms used in this Act 3 Division 1 -- Feed-in Tariff Scheme 5. Eligible Renewable Energy Sources 4 6. New conditions on the licence of a network operator 5 7. Feed-in Tariff Rate Scheme 6 8. Feed-in Tariff Rate Schedule 7 9. Feed-in Tariff Rate Degression 10 10. Feed-in Tariff Rate Payments 10 11. Periodical Review of the Feed-in Tariff Rates 11 Division 2 -- Equalisation Scheme 12. Purpose of this Division 12 13. Accounting 12 14. Equalisation 12 15. Reference Price 13 16. Reimbursement 13 Part 3 -- Miscellaneous 17. Regulations 14 144--1B page i Western Australia LEGISLATIVE COUNCIL (Introduced by Hon. Robin Chapple, MLC) Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 A Bill for An Act to facilitate power industry development and employment, and to improve energy security by diversifying fuel sources, through the commercialisation of renewable energy technologies in Western Australia. The Parliament of Western Australia enacts as follows: page 1 Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 Part 1 Preliminary s. 1 1 Part 1 -- Preliminary 2 1. Short title 3 This is the Renewable Energy Feed-in Tariff (REFiT WA) Act 4 2010. 5 2. Commencement 6 This Act comes into operation 28 days after the day on which it 7 receives the Royal Assent. page 2 Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 A Renewable Energy Feed-in Tariff for WA Part 2 s. 3 1 Part 2 -- A Renewable Energy Feed-in Tariff for WA 2 3. Object of this Act 3 The object of this Act is to support the commercialisation of 4 renewable energy technologies in order to minimise WA's 5 contribution to human-induced climate change, and to enhance 6 energy security through energy diversity by -- 7 (a) granting operators of both small and large scale 8 qualifying generators the right to connect their 9 qualifying generators to the electricity network and to 10 supply the electricity network with electricity generated 11 from renewable energy sources; and 12 (b) requiring electricity network operators to provide a 13 reasonable return on investment to operators of 14 qualifying generators for the electricity which they 15 produce from renewable energy sources. 16 4. Terms used in this Act 17 In this Act, unless the contrary attention appears -- 18 certificate means a renewable energy certificate created under 19 Division 4 of Part 2 of the Renewable Energy (Electricity) 20 Act 2000 (Cth); 21 kWh means kilowatt hour; 22 network means a transmission system as defined in section 3 of 23 the Electricity Industry Act 2004 or distribution system as 24 defined in the same section; 25 network operator means an operator of a network, namely the 26 Electricity Networks Corporation as defined in section 3 of the 27 Electricity Industry Act 2004 or the Regional Power 28 Corporation as defined in the same section; 29 qualifying generator means an accredited power station under 30 the Renewable Energy (Electricity) Act 2000 (Cth), provided 31 that power station generates electricity from a source listed in 32 section 5 of this Act; and page 3 Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 Part 2 A Renewable Energy Feed-in Tariff for WA Division 1 Feed-in Tariff Scheme s. 5 1 retailer means a person that holds a retail licence under the 2 Electricity Industry Act 2004. 3 Division 1 -- Feed-in Tariff Scheme 4 5. Eligible Renewable Energy Sources 5 (1) The following energy sources are eligible renewable energy 6 sources: 7 (a) hydro; 8 (b) wave; 9 (c) tide; 10 (d) ocean; 11 (e) wind; 12 (f) solar; 13 (g) geothermal-aquifer; 14 (h) hot dry rock; 15 (i) energy crops; 16 (j) wood waste; 17 (k) agricultural waste; 18 (l) waste from processing of agricultural products; 19 (m) food waste; 20 (n) food processing waste; 21 (o) bagasse; 22 (p) black liquor; 23 (q) biomass-based components of municipal solid waste; 24 (r) landfill gas; and 25 (s) sewage gas and biomass-based components of sewage. 26 (2) Despite subsection (1), the following energy sources are not 27 eligible renewable energy sources: 28 (a) fossil fuels; page 4 Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 A Renewable Energy Feed-in Tariff for WA Part 2 Feed-in Tariff Scheme Division 1 s. 6 1 (b) materials or waste products derived from fossil fuels; or 2 (c) biomass sourced from clearing or harvesting of native 3 vegetation. 4 (3) For the purposes of this Act, regulations may be made to 5 provide that an energy source referred to in subsection (1) or (2) 6 has the meaning prescribed by the regulations. 7 (4) For the purposes of this Act, regulations may be made to 8 provide for reasonable limits to the meaning of an energy source 9 referred to in subsection (1). 10 (5) For the purposes of this Act, regulations may be made to 11 provide for reasonable extensions to the meaning of an energy 12 source referred to in subsection (2). 13 6. New conditions on the licence of a network operator 14 (1) Subject to this section, it is a condition of the licence of a 15 network operator that the network operator must, on application 16 by an operator of a qualifying generator: 17 (a) with priority over all alternative sources of electricity 18 that do not wholly involve eligible renewable energy 19 sources, connect the qualifying generator to their 20 network; 21 (b) with priority over all alternative sources of electricity 22 that do not wholly involve eligible renewable energy 23 sources, transmit the electricity generated by the 24 qualifying generator into their network; and 25 (c) pay, for the electricity generated into their network, the 26 relevant feed-in tariff in accordance with this Act. 27 (2) A network operator may refuse to connect the qualifying 28 generator and transmit the electricity according to 29 paragraphs (1)(a) and (b) if they prove that the qualifying 30 generator does not comply with any relevant technical, safety or 31 other requirement, whether prescribed for the purposes of this 32 Act or imposed by any other law. page 5 Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 Part 2 A Renewable Energy Feed-in Tariff for WA Division 1 Feed-in Tariff Scheme s. 7 1 (3) Without limiting the generality of subsection (2), a network 2 operator may refuse to pay the feed-in tariff according to 3 paragraph (1)(c) if they prove that the qualifying generator has 4 not: 5 (a) provided its registration number and the unique 6 identification code of the qualifying generator according 7 to sections 12 and 16 of the Renewable Energy 8 (Electricity) Act 2000 (Cth); or 9 (b) either transferred to a network operator the relevant 10 certificates, or authorised a network operator to create 11 the relevant certificates. 12 (4) A network operator also may refuse to connect the qualifying 13 generator or transmit the electricity according to 14 paragraphs (1)(a) and (b) if they prove that an operator of a 15 qualifying generator has not installed a meter of a type 16 prescribed by the regulations for the purposes of this subsection, 17 to measure the total amount of electricity generated by the 18 qualifying generator. 19 7. Feed-in Tariff Rate Scheme 20 (1) This section establishes the feed-in tariff rate scheme. 21 (2) The feed-in tariffs in this Act are to cover the prescribed costs 22 of generation of the electricity plus a prescribed reasonable 23 return on investment for any given technology of any given 24 installed capacity and for any given site. 25 (3) The prescribed reasonable return on investment is to be 26 calculated having regard to the interest rates for fixed long term 27 deposits, thereby minimising the prospect of windfall profits. 28 (4) Each feed-in tariff is the rate that must be paid for all of the 29 electricity generated into the network by the qualifying 30 generator (gross feed-in tariff), not just the difference between 31 the electricity produced and the electricity consumed by the 32 operator of the qualifying generator. page 6 Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 A Renewable Energy Feed-in Tariff for WA Part 2 Feed-in Tariff Scheme Division 1 s. 8 1 (5) The feed-in tariff rates that apply from time to time are 2 guaranteed for a period of 20 years from the date when the 3 qualifying generator first produced electricity from renewable 4 sources, and those rates are not subject to degression for that 5 particular qualifying generator during that 20 year period. 6 (6) The period of 20 years in subsection (5) does not restart if the 7 installed capacity of that qualifying generator is increased at any 8 time after that qualifying generator is first commissioned. 9 (7) The feed-in tariff rates provided in section 8 do not include any 10 GST. 11 (8) The feed-in tariff rates in section 8 include an assumed inflation 12 rate. 13 Note: a significant, unexpected change in inflation may be addressed by the 14 processes in section 11, and in particular section 11(2). 15 (9) The feed-in tariff rates in section 8 are inclusive of both 16 certificates and capacity credits. 17 8. Feed-in Tariff Rate Schedule 18 (1) This section establishes the feed-in tariff rates derived from the 19 application of the principles in section 7. Tariff Annual Qualifying Installed Category (cents / degression generator type capacity kWh) (%) (f) Solar rooftop PV 30 kW or 30 5 less >30 kW 25 5 Ground-based PV all scales 20 5 Concentrating solar all scales 25 2 thermal Bio energy (i) energy crops; 15 2 (j) wood waste; 15 2 (k) agricultural waste; 15 2 page 7 Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 Part 2 A Renewable Energy Feed-in Tariff for WA Division 1 Feed-in Tariff Scheme s. 8 Tariff Annual Qualifying Installed Category (cents / degression generator type capacity kWh) (%) (l) waste from 15 2 processing of agricultural products; (m) food waste; 15 2 (n) food processing 15 2 waste; (o) bagasse; 15 2 (p) black liquor; 15 2 (q) biomass-based 15 2 components of municipal solid waste; (r) landfill gas; 12 2 (s) sewage gas and 12 2 biomass-based components of sewage. Hydrodynamic (a) hydro all scales 20 1 (b) wave all scales 22 1 (c) tidal all scales 18 1 (d) ocean all scales 18 1 (e) Wind Energy high wind (class 1 500 kW or 15 1 machines) less >500 kW 13 1 low wind (class 2 -3 <100 kW 17 1 machines) 100 kW - 16 1 1 MW > 1 MW 15 1 page 8 Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 A Renewable Energy Feed-in Tariff for WA Part 2 Feed-in Tariff Scheme Division 1 s. 8 Tariff Annual Qualifying Installed Category (cents / degression generator type capacity kWh) (%) Other (h) hot dry rock all scales 13 1 (g) geothermal-aquifer all scales 13 1 1 (2) Where subsection (1) requires that the electricity generated by 2 that type of qualifying generator is purchased at a rate that 3 depends on the installed capacity of the qualifying generator, 4 the qualifying generator is paid rates that assume the output in 5 the lowest installed capacity threshold is generated first, and 6 then output in the next highest threshold, and so on until that 7 generator's actual output for the relevant time period is reached. 8 (3) For the purposes of determining the tariff to be paid for the most 9 recently commissioned qualifying generator, a group of 10 qualifying generators is deemed to be one qualifying generator 11 (and section (2) applies accordingly) if: 12 (a) the group of qualifying generators is located on the same 13 plot of land, or is all otherwise in close spatial 14 proximity; 15 (b) the group of qualifying generators generate electricity 16 from the same kind of renewable energy source; 17 (c) subsection (1) requires that the electricity generated by 18 that type of qualifying generator is purchased at a rate 19 that depends on the installed capacity of the qualifying 20 generator; and 21 (d) all qualifying generators in the group were 22 commissioned within a period of twelve consecutive 23 months, 24 even if the group of qualifying generators in question are owned 25 or operated by more than one person. page 9 Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 Part 2 A Renewable Energy Feed-in Tariff for WA Division 1 Feed-in Tariff Scheme s. 9 1 9. Feed-in Tariff Rate Degression 2 (1) The tariffs under section 8 only apply to qualifying generators 3 commissioned between 1 January and 31 December 2011. 4 (2) In the case of qualifying generators commissioned in 5 subsequent calendar years, the tariffs must be reduced 6 degressively each year by the percentage indicated next to the 7 relevant tariff in subsection 8(1). 8 10. Feed-in Tariff Rate Payments 9 (1) Unless subsection (2) applies, the operator of a qualifying 10 generator must lodge with a network operator, within 14 days 11 after the end of each month, a monthly return indicating the 12 metered electricity produced, in kWh, by the qualifying 13 generator during that month just passed. 14 (2) The operator of a qualifying generator may choose to lodge with 15 a network operator, within 60 days after the end of each 16 calendar year, an annual return indicating the metered electricity 17 produced, in kWh, by the qualifying generator during that year 18 just passed. 19 (3) It is a further new condition on the licence of a network operator 20 that the network operator must pay the operator of a qualifying 21 generator an amount equal to the metered electricity reported by 22 operator of the qualifying generator under either subsections (1) 23 or (2) multiplied by the feed-in tariff rate calculated under 24 sections 8 and 9. 25 (4) Unless subsection (6) applies, it is a further new condition on 26 the licence of a network operator that the network operator must 27 pay the operator of a qualifying generator the amount referred to 28 under subsection (3) within 14 days of receiving from the 29 operator of the qualifying generator the return under 30 subsection (1). 31 (5) Unless section (6) applies, it is a further new condition on the 32 licence of a network operator that the network operator must page 10 Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 A Renewable Energy Feed-in Tariff for WA Part 2 Feed-in Tariff Scheme Division 1 s. 11 1 pay the operator of a qualifying generator the amount referred to 2 under subsection (3) within 60 days of receiving from the 3 operator of the qualifying generator the return under 4 subsection (2). 5 (6) A network operator and the operator of the qualifying generator 6 may agree on monthly advance payments calculated on the basis 7 of the expected payment for the whole year, and subsequent 8 annual reconciliation adjustments. 9 11. Periodical Review of the Feed-in Tariff Rates 10 (1) The Minister must carry out a review of the current feed-in tariff 11 rates after five years have elapsed since the Act comes into 12 operation, or five years after the last review as the case may be, 13 analysing in particular to what extent, if any, the feed-in tariff 14 rates will need to be adjusted having regard to section 7. 15 (2) The Minister may carry out a review of the current feed-in tariff 16 rates at any other time if, and only if, there has been an 17 unexpected and major change to the prescribed costs of 18 generation of one or more of the types of qualifying generator in 19 section 8(1) such that the feed-in tariff or tariffs for those 20 qualifying generators have become seriously at variance with 21 the tariffs that would result in a prescribed reasonable return on 22 investment. 23 (3) In the event that a review under subsection (2) is undertaken, 24 the Minister must give consideration to the possibility of 25 maintaining the current feed-in tariffs and current rates of 26 degression for projects for which planning and investment 27 decisions have been significantly advanced on the assumption 28 of the availability of those tariffs and degression rates. 29 (4) The Minister is to prepare a report based on the review carried 30 out under this section, explaining among other things how the 31 proposed revised feed-in tariff rates are calculated, and is to 32 cause the report to be laid before each House of Parliament as 33 soon as is practicable after the report is prepared. page 11 Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 Part 2 A Renewable Energy Feed-in Tariff for WA Division 2 Equalisation Scheme s. 12 1 (5) For the avoidance of doubt, the review and report process 2 referred to in this section does not of itself have the effect of 3 altering the rates in section 8(1), but instead those rates may 4 only be altered by an Act amending this Act. 5 Division 2 -- Equalisation Scheme 6 12. Purpose of this Division 7 The purpose of this division is to enable the contribution for 8 funding the feed-in tariffs, paid to operators of qualifying 9 generators in accordance with this Act, to be distributed equally 10 among all retailers, including those that either do not or only 11 partly use the South West interconnected system as defined in 12 section 3 of the Electricity Industry Act 2004. 13 13. Accounting 14 (1) The network operators must record the electricity for which 15 tariffs were paid in accordance with this Act, and settle the 16 accounts with regard to the quantity of electricity, tariffs paid 17 and certificates received pursuant to subsection (2) below. 18 (2) By 31 March of each year the network operators must determine 19 the quantity of electricity which they transmitted and paid for, 20 and the number of certificates they received or created in 21 accordance with paragraph 6(3)(b), in the previous calendar 22 year, and must determine the percentage share of these 23 quantities in relation to the total quantity of electricity which 24 was delivered to the final consumers in the area served by their 25 network in the previous calendar year. 26 14. Equalisation 27 Network operators who had to pay higher feed-in tariffs than the 28 average share, having regard to the matters in section 13(2), are 29 entitled to receive financial compensation from the other 30 network operators in exchange for the respective number of 31 certificates until all network operators have contributed equally 32 to the average share, taking into account the economic value of page 12 Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 A Renewable Energy Feed-in Tariff for WA Part 2 Equalisation Scheme Division 2 s. 15 1 the electricity that was fed into their respective networks by 2 qualifying generators at the reference price. 3 15. Reference Price 4 (1) The Electricity Networks Corporation, as defined in section 3 of 5 the Electricity Industry Act 2004, must sell the electricity fed 6 into its network in accordance with this Act in a transparent and 7 non-discriminatory way, and at the best achievable price. 8 (2) The price realised in accordance with subsection (1) is the 9 reference price for the purposes of section 14. 10 16. Reimbursement 11 (1) The retailers must reimburse their network operators for their 12 contribution in funding the feed-in tariffs according to 13 section 14 in exchange for the respective number of certificates 14 until all retailers have contributed their equal share. 15 (2) The share in subsection (1) is to be calculated in relation to their 16 respective shares of the total electricity sold. 17 (3) Notwithstanding any other Act, the retailers are entitled to pass 18 on their subsection (1) contribution to their consumers relative 19 to the consumers' electricity consumption. page 13 Renewable Energy Feed-in Tariff (REFiT WA) Bill 2010 Part 3 Miscellaneous s. 17 1 Part 3 -- Miscellaneous 2 17. Regulations 3 (1) The Governor may make regulations prescribing all matters that 4 are required or permitted by this Act to be prescribed or are 5 necessary or convenient to be prescribed for giving effect to the 6 purposes of this Act. 7 (2) Without limiting the generality of subsection (1), regulations 8 may be made for the matters dealt with in the following 9 sections: 10 (a) section 6(3)(b); 11 (b) section 6(4); or 12 (c) Part 2 Division 2. 13 (3) For the avoidance of doubt, the Governor may not make 14 regulations which have the effect of altering the rates in 15 section 8(1). 16
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