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This is a Bill, not an Act. For current law, see the Acts databases.


RENEWABLE ENERGY FEED-IN TARIFF (REFIT WA) BILL 2010

                      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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