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RENEWABLE ENERGY (ELECTRICITY) AMENDMENT BILL 2010E RENEWABLE ENERGY (ELECTRICITY) (CHARGE) AMENDMENT BILL 2010E RENEWABLE ENERGY (ELECTRICITY) (SMALL-SCALE TECHNOLOGY SHORTFALL CHARGE) BILL 2010

Order of the day read for the further consideration of the bills in committee of the whole.

In the committee

RENEWABLE ENERGY (ELECTRICITY) AMENDMENT BILL 2010—

Consideration resumed of the bill, as amended—and of the amendments moved by Senator Milne:

 Clause 3, page 2 (lines 7 to 11), omit the clause, substitute:

  

3 Schedule(s)

  (1) Each Act, and each set of regulations, that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

  (2) The amendment of any regulation under subsection (1) does not prevent the regulation, as so amended, from being amended or repealed by the Governor-General.


 Schedule 1, page 61 (after line 22), after item 110, insert:

 110A At the end of subsection 17(2)

  Add:

 ; (c) biomass from native vegetation of any kind.

 Schedule 1, Part 2, page 80 (after line 4), at the end of the Part, add:

  

Renewable Energy (Electricity) Regulations 2001

 137 Paragraph 8(1)(d)

  Omit "; and", substitute ".".

 138 Paragraph 8(1)(e)

  Repeal the paragraph.

 139 Subregulations 8(2), (3) and (4)

  Repeal the subregulations.

 140 Subregulation 9(2)

  Repeal the subregulation, substitute:

  (2) For section 17 of the Act, biomass from native vegetation is not an energy crop.

 141 Subregulation 20AA(1)

  Omit "subsections 23B (2) and", substitute "subsection".

Debate resumed.

Senator Colbeck, by leave, moved the following amendments:

 Clause 3, page 2 (lines 7 to 11), omit the clause, substitute:

  

3 Schedule(s)

  (1) Each Act, and each set of regulations, that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

  (2) The amendment of any regulation under subsection (1) does not prevent the regulation, as so amended, from being amended or repealed by the Governor-General.

 Schedule 1, Part 2, page 80 (after line 4), at the end of the Part, add:

  

Renewable Energy (Electricity) Regulations 2001

 137 Paragraph 8(2)(b)

  Repeal the paragraph, substitute:

 (b) a by-product (including thinnings and coppicing) of a harvesting operation that is carried out in accordance with ecologically sustainable forest management principles; and

 138 Subregulation 8(3)

  Repeal the subregulation.

 139 Subregulation 8(4) (definition of high value process)

  Repeal the definition.


 140 At the end of subparagraph 9(1)(b)(ii)

  Omit ";", substitute ".".

 141 Paragraph 9(1)(c)

  Repeal the paragraph.

Debate ensued.

Question—That the amendments moved by Senator Milne be agreed to—put.

The committee divided—

AYES, 5

Senators—

Brown, Bob

Hanson-Young

Ludlam

Milne

Siewert (Teller)

NOES, 42

Senators—

Abetz

Back

Bernardi

Bilyk

Birmingham

Bishop

Boyce

Brown, Carol

Cameron

Cash

Colbeck

Collins

Coonan

Crossin

Eggleston

Farrell

Feeney

Ferguson

Fielding

Fisher

Forshaw

Furner

Hurley

Hutchins

Lundy

Marshall

McEwen

McLucas

Minchin

Moore

O'Brien

Parry

Polley

Pratt

Ryan

Stephens

Sterle

Troeth

Trood

Williams (Teller)

Wong

Wortley

Question negatived.

Question—That the amendments moved by Senator Colbeck be agreed to—put.

The committee divided—

AYES,33


Senators—
AbetzCashFisherRonaldson
AdamsColbeckHumphriesRyan
BackCoonanKrogerScullion
BernardiCormannMacdonaldTroeth
BirminghamEgglestonMasonTrood
BoswellFergusonMcGauranWilliams (Teller)
BoyceFieldingMinchin
BrandisFierravanti-WellsParry
BushbyFifieldPayne

NOES, 33


Senators—
ArbibFeeneyLundySiewert
BilykForshawMarshallStephens
BishopFurnerMcEwen (Teller)Sterle
Brown, BobHanson-YoungMcLucasWong
Brown, CarolHoggMilneWortley
CameronHurleyMooreXenophon
CollinsHutchinsO'Brien
CrossinLudlamPolley
FarrellLudwigPratt

The ayes and noes were equal and so the question was negatived.


On the motion of Senator Milne the following amendment was debated and agreed to:

 Schedule 1, item 99, page 59 (lines 16 to 21), omit the item, substitute:

 99 Section 162

  Repeal the section, substitute:

 

162 Biennial review of operation of renewable energy legislation

  (1) The Minister must cause an independent review of the following to be undertaken as soon as practicable after 30 June 2012 and every 2 years after that date:

 (a) the operation of this Act and the scheme constituted by this Act;

 (b) the operation of the regulations;

 (c) the operation of the Renewable Energy (Electricity) (Large-scale Generation Shortfall Charge) Act 2000;

 (d) the operation of the Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Act 2010;

 (e) the diversity of renewable energy access to the scheme constituted by this Act, to be considered with reference to a cost benefit analysis of the environmental and economic impact of that access.

  (2) A review must be undertaken by a person who, in the Minister's opinion, possesses appropriate qualifications to undertake the review.

  (3) The person undertaking a review must give the Minister a written report of the review before 31 December in that year.

  (4) The Minister must cause a copy of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the day on which the report is given to the Minister.

  (5) The report is not a legislative instrument.

Senator Birmingham moved the following amendment:

 Schedule 1, items 111 and 112, page 61 (lines 23 to 30), omit the items, substitute:

 111 Subparagraph 17A(1)(a)(i)

  Repeal the subparagraph, substitute:

 (i) starting on 1 July 2011; and

Debate ensued.

Question—That the amendment be agreed to—put.

The committee divided—

AYES,32


Senators—
AbetzBrandisFierravanti-WellsMinchin
Adams (Teller)BushbyFifieldParry
BackCashFisherPayne
BarnettColbeckHumphriesRyan
BernardiCoonanKrogerScullion
BirminghamCormannMacdonaldTroeth
BoswellEgglestonMasonTrood
BoyceFergusonMcGauranWilliams

NOES, 33



Senators—
ArbibFeeneyLundySiewert
BilykFieldingMarshallStephens
BishopForshawMcEwenSterle
Brown, BobFurnerMcLucasWong
Brown, CarolHanson-YoungMilneWortley
CameronHurleyMooreXenophon
CollinsHutchinsO'Brien (Teller)
CrossinLudlamPolley
FarrellLudwigPratt

Question negatived.

Question—That the bill, as amended, be agreed to—divided, at the request of Senator Birmingham, in respect of Schedule 1, items 111 and 112.

Question—That Schedule 1, items 111 and 112 stand as printed—put.

The committee divided—

AYES,33


Senators—
ArbibFeeneyLundySiewert
BilykFieldingMarshallStephens
BishopForshawMcEwenSterle
Brown, BobFurnerMcLucasWong
Brown, CarolHanson-YoungMilneWortley
CameronHurleyMooreXenophon
CollinsHutchinsO'Brien (Teller)
CrossinLudlamPolley
FarrellLudwigPratt

NOES, 31


Senators—
AbetzBrandisFierravanti-WellsParry
Adams (Teller)BushbyFifieldPayne
BackCashFisherRyan
BarnettColbeckHumphriesScullion
BernardiCoonanKrogerTroeth
BirminghamCormannMasonTrood
BoswellEgglestonMcGauranWilliams
BoyceFergusonMinchin

Items agreed to.

On the motion of Senator Xenophon the following amendment was debated and agreed to:

 Schedule 1, item 96, page 58 (lines 28 to 30), omit subparagraph 141AA(c)(ii), substitute:

 (ii) a statement that the certificate was created in relation to a solar water heater other than an air source heat pump water heater, or that it was created in relation to an air source heat pump water heater, or that it was created in relation to a small generation unit (as appropriate); and


On the motion of Senator Xenophon the following amendment was debated and agreed to:

 Schedule 1, page 60 (after line 2), before item 100, insert:

 99A Subsection 5(1)

  Insert:

   air source heat pumpwater heater means a device that uses a vapour compression cycle incorporating a compressor, an evaporator that collects energy from the latent and sensible heat of the atmosphere and a condenser that delivers heat either directly or indirectly to a hot water storage container.

On the motion of Senator Birmingham the following amendment was debated and agreed to:

 Schedule 1, page 62 (after line 26), after item 116, insert:

 116A At the end of section 21

  Add:

  (4) If a solar water heater is an air source heat pump water heater, certificates may only be created for the installation of such an air source heat pump water heater if it has a volumetric capacity of not more than 425 litres.

Senator Xenophon moved the following amendment:

 Schedule 1, page 63 (after line 29), after item 119, insert:

 119A At the end of Subdivision B of Division 4 of Part 2

  Add:

 

23AAA Regulations to phase out air source heat pump water heaters from scheme

  (1) The regulations must provide for air source heat pump water heaters to be phased out of the scheme constituted by this Act by the end of 31 December 2012.

  (2) For the purposes of subsection (1), the regulations must provide that, after the commencement of this section, each month the number of certificates that can be created for the installation of an air source heat pump water heater are proportionally reduced, so that no certificates can be created for such an installation after the end of 31 December 2012.

Debate ensued.

Question—That the amendment be agreed to—put and negatived.

Senator Xenophon moved the following amendment:

 Schedule 1, item 117, page 63 (after line 6), after subsection 22(2), insert:

  (3) Without limiting subsection (1), regulations made for the purpose of that subsection must provide that, from 1 January 2013, the number of certificates that may be created in respect of the installation of any air source heat pump water heater are only to be created in relation to the first 6 years of operation of that heater.

Debate ensued.


Question—That the amendment be agreed to—put.

The committee divided—

AYES, 33

Senators—

Abetz

Adams

Back

Barnett

Bernardi

Birmingham

Boswell

Boyce

Bushby (Teller)

Cash

Colbeck

Coonan

Cormann

Eggleston

Ferguson

Fierravanti-Wells

Fifield

Fisher

Humphries

Joyce

Kroger

Mason

McGauran

Minchin

Nash

Parry

Payne

Ronaldson

Ryan

Scullion

Troeth

Trood

Xenophon

NOES, 33

Senators—

Arbib

Bilyk

Bishop

Brown, Bob

Brown, Carol

Cameron

Collins

Crossin

Evans

Farrell

Feeney

Fielding

Forshaw

Furner

Hanson-Young

Hurley

Hutchins

Ludlam

Ludwig

Lundy

Marshall

McEwen (Teller)

McLucas

Milne

Moore

O'Brien

Polley

Pratt

Siewert

Stephens

Sterle

Wong

Wortley

The ayes and noes were equal and so the question was negatived.

The Minister for Climate Change, Energy Efficiency and Water (Senator Wong) moved the following amendment:

 Schedule 1, page 63 (after line 29), after item 119, insert:

 119B Subsection 23B(2)

  After "multiplied by", insert "a number that does not exceed".

Debate ensued.

At 12.45 pm: The Acting Deputy President (Senator Ryan) resumed the chair and the Temporary Chair of Committees reported progress.