CLEAN ENERGY BILL 2011E CLEAN ENERGY (CONSEQUENTIAL AMENDMENTS) BILL 2011E CLEAN ENERGY (INCOME TAX RATES AMENDMENTS) BILL 2011E CLEAN ENERGY (HOUSEHOLD ASSISTANCE AMENDMENTS) BILL 2011E CLEAN ENERGY (TAX LAWS AMENDMENTS) BILL 2011E CLEAN ENERGY (FUEL TAX LEGISLATION AMENDMENT) BILL 2011E CLEAN ENERGY (CUSTOMS TARIFF AMENDMENT) BILL 2011E CLEAN ENERGY (EXCISE TARIFF LEGISLATION AMENDMENT) BILL 2011E OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS (IMPORT LEVY) AMENDMENT BILL 2011E OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS (MANUFACTURE LEVY) AMENDMENT BILL 2011E CLEAN ENERGY (UNIT SHORTFALL CHARGE—GENERAL) BILL 2011E CLEAN ENERGY (UNIT ISSUE CHARGE—AUCTIONS) BILL 2011E CLEAN ENERGY (UNIT ISSUE CHARGE—FIXED CHARGE) BILL 2011E CLEAN ENERGY (INTERNATIONAL UNIT SURRENDER CHARGE) BILL 2011E CLEAN ENERGY (CHARGES—CUSTOMS) BILL 2011E CLEAN ENERGY (CHARGES—EXCISE) BILL 2011E CLEAN ENERGY REGULATOR BILL 2011E CLIMATE CHANGE AUTHORITY BILL 2011

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

In the committee

Consideration resumed of the bills—and of the amendment moved by Senator Birmingham, also on behalf of Senator Xenophon, in respect of the Clean Energy Bill 2011 (see entry no. 2).

Debate resumed.

Question—That the amendment be agreed to—put.

The committee divided—

AYES, 32

Senators—

Abetz

Adams

Bernardi

Birmingham

Boswell

Boyce

Brandis

Bushby (Teller)

Cash

Colbeck

Cormann

Edwards

Eggleston

Fierravanti-Wells

Fisher

Heffernan

Humphries

Johnston

Joyce

Kroger

Macdonald

Madigan

Mason

McKenzie

Nash

Parry

Payne

Ryan

Scullion

Sinodinos

Williams

Xenophon

NOES, 36

Senators—

Bilyk

Bishop

Brown, Bob

Brown, C (Teller)

Cameron

Collins

Conroy

Crossin

Di Natale

Evans

Farrell

Faulkner

Furner

Gallacher

Hanson-Young

Hogg

Ludlam

Ludwig

Marshall

McEwen

McLucas

Milne

Moore

Polley

Pratt

Rhiannon

Sherry

Siewert

Singh

Stephens

Sterle

Thistlethwaite

Urquhart

Waters

Wong

Wright

Question negatived.

Senator Xenophon moved the following amendments in respect of the Clean Energy Bill 2011 together by leave:

 Clause 3, page 5 (before line 14), before subparagraph (c)(i), insert:

 (ia) take action directed towards reducing Australia's net greenhouse gas emissions to at least 10% below 2000 levels by 2020; and

 Clause 3, page 5 (line 17), omit "that action", substitute "those actions".

Debate ensued.

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

Senator Xenophon moved the following amendments in respect of the Clean Energy Bill 2011 together by leave:

 Clause 5, page 12 (after line 31), after the definition of director, insert:

   electricity generation benchmark scheme means the scheme under subsection 181D(1).

 Clause 93, page 127 (after line 14), after paragraph (a), insert:

 (aa) the total number of free carbon units issued in accordance with the electricity generation benchmark scheme; and

 Clause 99, page 129 (after line 5), after paragraph (b), insert:

 (ba) in accordance with the electricity generation benchmark scheme; or

 Clause 102, page 135 (after line 22), after paragraph (1)(a), insert:

 (aa) the total number of free carbon units with that vintage year issued in accordance with the electricity generation benchmark scheme; and

 Clause 115, page 152 (after line 5), before subparagraph (1)(a)(i), insert:

 (ia) in accordance with the electricity generation benchmark scheme; or

 Clause 116, page 152 (after line 24), before subparagraph (1)(a)(i), insert:

 (ia) in accordance with the electricity generation benchmark scheme; or

 Page 241 (after line 15), after Part 8, insert:

Part 8A—Electricity generation benchmark scheme

Division 1—Introduction

181B Aim and objects

  (1) The aim of this Part is to create incentives for the electricity generation sector in Australia to reduce emissions.

  (2) The objects of this Part are:

 (a) to create incentives for abatement of emissions while mitigating the price impact of electricity wholesale prices on users; and

 (b) to ensure that any increase in energy costs is a gradual increase for all users; and

 (c) to promote lower emissions and improved price signals in relation to electricity generation; and

 (d) to provide orderly transitional arrangements in respect of all electricity generated in Australia until 2030.

181C Simplified outline

   The following is a simplified outline of this Part:

 The regulations must formulate a scheme, to be known as the electricity generation benchmark scheme, for the issue of free carbon units in respect of all electricity generated in Australia.

 The electricity generation benchmark scheme may:

 (a) require a recipient of free carbon units to relinquish units; and

 (b) impose reporting or record-keeping requirements on a recipient of free carbon units.

Division 2—Formulation of the electricity generation benchmark scheme

181D Electricity generation benchmark scheme

  (1) The regulations must formulate a scheme (to be known as the electricity generation benchmark scheme) for the issue of free carbon units in respect of all electricity generated in Australia.

  (2) For the purposes of regulations made under subsection (1), the allocation of free units to electricity generators under the scheme for a year is the product of:

 (a) the electricity production for the year; and

 (b) the electricity generation allocation factor for the year;

   where:

   electricity production for the year means the total number of megawatt hours of electricity generated by the generation unit in the financial year.

electricity generation allocation factor for a year means the amount specified in the following table for the financial year:

For the financial year beginning...Electricity generation allocation factor is

1 July 20130.79

1 July 20140.76

1 July 20150.73

1 July 20160.70

1 July 20170.67

1 July 20180.63

1 July 20190.60

1 July 20200.57

1 July 20210.54

1 July 20220.51

1 July 20230.47

1 July 20240.44

1 July 20250.41

1 July 20260.38

1 July 20270.35

1 July 20280.31

1 July 20290.28

1 July 20300.25

 (3) The electricity generation benchmark scheme must provide that free carbon units must not be issued to a person in accordance with the scheme unless the person:

 (a) meets such requirements as are specified in the scheme; and

 (b) has a Registry account.

  (4) The Minister must take all reasonable steps to ensure that regulations are made for the purposes of subsection (1) before 1 July 2013.

181E Relinquishment requirement

  (1) The electricity generation benchmark scheme may provide that, if:

 (a) a number of free carbon units have been issued to a person in accordance with the scheme; and

 (b) any of the following subparagraphs applies:

 (i) a specified event happens;

 (ii) a specified circumstance comes into existence;

 (iii) the Regulator is satisfied about a specified matter;

   the person is required to relinquish a number of carbon units ascertained in accordance with the scheme.

 (2) Part 11 relating to compliance with relinquishment of carbon units applies in relation to the scheme as if a reference to the Jobs and Competitiveness Program was a reference to theelectricity generation benchmark scheme.

 (3) The number of carbon units required to be relinquished by the person must not exceed the number of units mentioned in paragraph (1)(a).

181F Reporting requirement

   Scope

  (1) This section applies to a person if free carbon units have been issued to the person in accordance with the electricity generation benchmark scheme.

   Requirement

  (2) The electricity generation benchmark scheme may make provision for and in relation to requiring the person to give one or more written reports to the Regulator.

181G Record-keeping requirement

   Scope

  (1) This section applies to a person if free carbon units have been issued to the person in accordance with the electricity generation benchmark scheme.

   Requirement

  (2) The electricity generation benchmark scheme may make provision for and in relation to requiring the person to:

 (a) make records of information specified in the scheme; and

 (b) retain such a record, or a copy, for 5 years after the record was made.

181H Other matters

  (1) The electricity generation benchmark scheme may make provision for and in relation to the following matters:

 (a) applications for free carbon units;

 (b) the approval by the Regulator of a form for such an application;

 (c) information that must accompany such an application;

 (d) documents that must accompany such an application;

 (e) the method of calculating the number of free carbon units to be issued to a person in accordance with the scheme.

  (2) The electricity generation benchmark scheme may provide that an application for free carbon units must be accompanied by a prescribed report.

  (3) The electricity generation benchmark scheme may provide for verification by statutory declaration of statements in applications for free carbon units.

181J Ancillary or incidental provisions

   The electricity generation benchmark scheme may contain ancillary or incidental provisions.

Division 3—Compliance with reporting and record-keeping requirements under the electricity generation benchmark scheme

181K Compliance with reporting and record-keeping requirements

   Reporting requirements

  (1) If a person is subject to a requirement under the electricity generation benchmark scheme to give a report to the Regulator, the person must comply with that requirement.

   Record-keeping requirements

  (2) If a person is subject to a requirement under the electricity generation benchmark scheme to:

 (a) make a record of information; or

 (b) retain such a record or a copy;

   the person must comply with that requirement.

   Ancillary contraventions

  (3) A person must not:

 (a) aid, abet, counsel or procure a contravention of subsection (1) or (2); or

 (b) induce, whether by threats or promises or otherwise, a contravention of subsection (1) or (2); or

 (c) be in any way, directly or indirectly, knowingly concerned in, or party to, a contravention of subsection (1) or (2); or

 (d) conspire with others to effect a contravention of subsection (1) or (2).

   Civil penalty provisions

  (4) Subsections (1), (2) and (3) are civil penalty provisions.

   Note: Part 17 provides for pecuniary penalties for breaches of civil penalty provisions.

Debate ensued.

Senator Bernardi moved—That the committee report progress and ask leave to sit again.

Question put.

The committee divided—

AYES, 32

Senators—

Abetz

Adams (Teller)

Bernardi

Birmingham

Boswell

Boyce

Bushby

Cash

Colbeck

Cormann

Edwards

Eggleston

Fierravanti-Wells

Fisher

Heffernan

Humphries

Johnston

Joyce

Kroger

Macdonald

Madigan

Mason

McKenzie

Nash

Parry

Payne

Ronaldson

Ryan

Scullion

Sinodinos

Williams

Xenophon

NOES, 36

Senators—

Bilyk

Bishop

Brown, Bob

Brown, Carol

Cameron

Collins

Conroy

Crossin

Di Natale

Evans

Farrell

Faulkner

Furner

Gallacher

Hanson-Young

Hogg

Ludlam

Ludwig

Marshall

McEwen (Teller)

McLucas

Milne

Moore

Polley

Pratt

Rhiannon

Sherry

Siewert

Singh

Stephens

Sterle

Thistlethwaite

Urquhart

Waters

Wong

Wright

Question negatived.

After 9.50 pm: The President resumed the chair and the Chair of Committees (Senator Parry) reported progress.