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 amendment moved by the Minister for Climate Change, Energy Efficiency and Water (Senator Wong) (see entry no. 4).

Debate resumed.

Senator Milne, by leave, moved the following amendment:

 Schedule 1, page 63 (before line 30), before item 120, insert:

 119E Subsection 23B(3)

  Omit "the first 1.5kW", substitute "not more than the first 3kW".

Debate ensued.

Question—That the amendments moved by Senators Wong and Milne be agreed to—put and passed.

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

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

 119A After section 23A

  Insert:

23AAA Regulations to establish scheme for inspection of new installations of small generation units

  (1) The regulations must establish a scheme for the inspection of the installation of small generation units for which certificates have been created.

  (2) Without limiting subsection (1), regulations made under that subsection must provide, for small generation units installed after the commencement of this section:

 (a) that each year a statistically significant selection of small generation units that were installed during that year must be inspected for conformance with Australian standards and any other standards or requirements relevant to the creation of certificates in relation to that small generation unit;

 (b) that an inspection of a small generation unit is to be carried out by a person or organisation who:

 (i) is independent of the person or organisation who designed and/or installed that small generation unit; and

 (ii) does not have a conflict of interest in relation to that small generation unit or administration of the matters being inspected;

 (c) for the transfer of information, about any failures to comply with standards or other requirements relevant to the creation of certificates in relation to small generation units, to State, Territory or Commonwealth bodies with responsibility for the enforcement and administration of those standards or requirements.

Senator Xenophon moved the following amendments together by leave:

 Schedule 1, page 65 (after line 19), after item 121, insert:

 121A Subsection 39(3)

  After "subsection (1)", insert "for a year until the year ending on 31 December 2030".

 121B After subsection 39(3A)

  Insert:

  (3B) Before the Governor-General makes a regulation under subsection (1) for the year commencing on 1 January 2031 and any later year until the year ending on 31 December 2040, the Minister must take into consideration:

 (a) the required GWh of geothermal energy source electricity for the year; and

 (b) the amount estimated as the amount of electricity that will be acquired under relevant acquisitions during the year; and

 (c) for a year after the year commencing 1 January 2031—the amount by which the required GWhs of geothermal energy source electricity for all years from and including 2031 has exceeded, or has been exceeded by, the amount of geothermal energy source electricity required under the scheme in those years; and

 (d) all partial exemptions expected to be claimed for the year.

  (3C) If, at the time the Minister takes into consideration the matters referred to in subsection (3B), the amount applicable under paragraph (3B)(c) is not known, then the Minister may take into consideration an estimate of that amount instead.

 Schedule 1, page 67 (after line 6), after item 124, insert:

 124A At the end of Division 2 of Part 4

  Add:

40AA Required GWh of geothermal energy source electricity

  (1) The required GWh of geothermal energy source electricity for a year is set out in the following table:

Required GWh of geothermal energy source electricity

YearGWh

203141000

203241000

203341000

203441000

203541000

203641000

203741000

203841000

203941000

204041000

 (2) Geothermal energy source electricity must have one of the following characteristics:

 (a) a flash steam power plant;

 (b) a dry steam power plant;

 (c) a binary cycle power plant;

 (d) direct use geothermal (that is, direct hot water systems);

 (e) geothermal heat pumps (for heating);

 (f) any other characteristic prescribed by the regulations for the purpose of this paragraph;

   to qualify as providing geothermal energy source electricity for the purposes of subsection (1).

  (3) A generation unit for geothermal energy source electricity must be 1 MW capacity or greater to qualify as capable of providing geothermal energy source electricity for the purposes of subsection (1).

  (4) The regulations must make provision for geothermal energy source electricity in relation to:

 (a) the acquisition of electricity by a liable entity;

 (b) the creation and transfer of certificates;

 (c) the calculation of the renewable power percentage for a year;

 (d) the required renewable energy of a liable entity for a year;

 (e) the surrender of certificates by a liable entity for a year;

 (f) the renewable energy certificate shortfall of a liable entity for a year.

Debate ensued.

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

On the motion of Senator Wong the following amendments, taken together by leave, were debated and agreed to:

 Schedule 1, item 124, page 66 (before line 3), before subsection (2), insert:

   Adjustment of targets according to number of valid certificates as at the end of 2010

  (1A) If, as at the end of the year 2010, the total value, in GWh, of valid renewable energy certificates exceeds 34,500, the table in subsection (1) has effect in accordance with the following paragraphs:

 (a) the number of GWh specified in the table for each of the following years is taken to be increased by half of the excess:

 (i) the year 2012;

 (ii) the year 2013;

 (b) the number of GWh specified in the table for each of the following years is taken to be reduced by one quarter of the excess:

 (i) the year 2016;

 (ii) the year 2017;

 (iii) the year 2018;

 (iv) the year 2019.

  (1B) As soon as practicable after the end of the year 2010, the Regulator must publish on its website the total value referred to in subsection (1A).

   Adjustment of targets if there is a WCMG start day

 Schedule 1, item 124, page 66 (line 5), omit "has effect as", substitute "has effect (after first taking account of subsection (1A))".

Senator Xenophon moved the following amendment:

 Schedule 1, page 67 (after line 6), after item 124, insert:

 124B After Division 2 of Part 4

  Insert:

Division 2AA—Emerging renewable energy technologies

40AB Inclusion of emerging renewable energy technologies

   The Minister may, by legislative instrument, determine that an emerging renewable energy technology that has demonstrated its energy efficiency is to be included as a renewable energy technology for the purpose of the scheme constituted by this Act.

Debate ensued.

On the motion of Senator Xenophon further consideration of the amendment was postponed.

Senator Birmingham moved the following amendments together by leave:

 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

 138 Paragraph 22ZA(4)(a)

  Repeal the paragraph.

Debate ensued.

Question—That the amendments be agreed to—put.

The committee divided—

AYES, 34

Senators—

Abetz

Adams

Back

Barnett

Bernardi

Birmingham

Boswell

Boyce

Brandis

Bushby (Teller)

Cash

Coonan

Cormann

Eggleston

Ferguson

Fielding

Fierravanti-Wells

Fifield

Fisher

Heffernan

Humphries

Joyce

Kroger

Macdonald

Mason

Minchin

Parry

Payne

Ronaldson

Ryan

Scullion

Trood

Williams

Xenophon

NOES, 32

Senators—

Arbib

Bilyk

Brown, Bob

Brown, Carol

Cameron

Carr

Collins

Conroy

Crossin

Farrell

Faulkner

Feeney

Forshaw

Furner

Hanson-Young

Hogg

Hurley

Hutchins

Ludlam

Marshall

McEwen

McLucas

Milne

Moore

O'Brien (Teller)

Pratt

Sherry

Siewert

Stephens

Sterle

Wong

Wortley

Question agreed to.

Limitation of debate: The time allotted for the consideration of the bills expired.

Consideration resumed of the amendment moved by Senator Xenophon and postponed earlier today.

Senator Xenophon, by leave, amended the amendment to read as follows:

 Schedule 1, page 67 (after line 6), after item 124, insert:

 124B After Division 2 of Part 4

  Insert:

Division 2AA—Emerging renewable energy technologies

40AB Inclusion of emerging renewable energy technologies

   The Minister may, by legislative instrument, determine that an emerging renewable energy technology be included as a renewable energy technology for the purpose of the scheme constituted by this Act.

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

The following amendment circulated by the Australian Greens was agreed to:

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

 119C Subsection 23B(3)

  After "However,", insert "subject to subsections (3A) and (3C),".

 119D After subsection 23B(3)

  Insert:

  (3A) However, in the case of an off-grid small generation unit, the regulations must provide for a number of certificates to be multiplied only if the certificates relate to the first 20kW of the rated power output of the unit.

  (3B) In subsection (3A):

   off-grid small generation unit means:

 (a) a small generation unit at least 1 kilometre from the nearest main-grid line; or

 (b) in the case of a small generation unit less than 1 kilometre from a main-grid line—the owner has provided written evidence from the local network service provider that the total cost of connecting the unit to the main-grid is more than $30,000, making it uneconomic to connect the unit to the main-grid.

  (3C) The regulations must provide that the number of certificates that may be created under subsection (3A) as a result of a multiplier in subsection (2) for a period specified in column 1 of an item in the following table must not exceed the number specified in column 2 of the item.

Maximum number of certificates created under subsection (3A)

ItemColumn 1e PeriodColumn 2e Number

11 July 2010 to 30 June 2011250,000

21 July 2011 to 30 June 2012250,000

31 July 2012 to 30 June 2013200,000

41 July 2013 to 30 June 2014150,000

51 July 2014 to 30 June 2015100,000

Statement by leave: Senator Wong, by leave, made a statement relating to the amendment.

The Renewable Energy (Electricity) Amendment Bill 2010, as amended, the Renewable Energy (Electricity) (Charge) Amendment Bill 2010 and the Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Bill 2010 agreed to.

The Renewable Energy (Electricity) Amendment Bill 2010 to be reported with amendments and the Renewable Energy (Electricity) (Charge) Amendment Bill 2010 and the Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Bill 2010 to be reported without requests for amendments.

The Deputy President (Senator Ferguson) resumed the chair and the Temporary Chair of Committees (Senator Crossin) reported accordingly.

Question—That the remaining stages of these bills be agreed to and these bills be now passed—put and passed.

Bills read a third time.