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Carbon Pollution Reduction Scheme Bill 2009 [No. 2]

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2008-2009

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

Carbon Pollution Reduction Scheme Bill 2009

 

 

(1)     Clause 5, page 5 (after line 16), after the definition of alter , insert:

applicable domestic offsets methodology determination , in relation to an offsets project, means the domestic offsets methodology determination that is applicable to the project.

[domestic offsets]

(2)     Clause 5, page 10 (after line 34), after the definition of director , insert:

Domestic Offsets Integrity Committee means the committee established by section 373A.

Domestic Offsets Integrity Committee member means a member of the Domestic Offsets Integrity Committee, and includes the Chair of the Domestic Offsets Integrity Committee.

domestic offsets program means the program under subsection 259B(1).

domestic offsets project methodology determination means a determination under subsection 259J(1).

domestic offsets project methodology principles has the meaning given by section 259K.

domestic offsets reporting period has the meaning given by subsection 259C(2).

[domestic offsets]

(3)     Clause 5, page 11 (before line 5), before the definition of eligible emissions unit , insert:

eligible domestic offsets project means an offsets project that, under the domestic offsets program, has been declared by the Authority to be an eligible domestic offsets project.

[domestic offsets]

(4)     Clause 5, page 21 (before line 1), before the definition of net source cancellation account , insert:

native forest has the meaning given by the regulations.

[domestic offsets]

(5)     Clause 5, page 21 (after line 25), after the definition of official of the Authority , insert:

offsets project means:

                     (a)  a project to remove one or more greenhouse gases from the atmosphere; or

                     (b)  a project to reduce emissions of one or more greenhouse gases.

For this purpose, it is immaterial whether the project has been carried out.

[domestic offsets]

(6)     Clause 5, page 24 (line 5), omit “256.”, substitute “256; and”.

[domestic offsets]

(7)     Clause 5, page 24 (after line 5), at the end of the definition of recognised , add:

                     (c)  recognised as an offsets entity means recognised under section 259P.

[domestic offsets]

(8)     Clause 5, page 24 (before line 6), before the definition of recognised reforestation entity , insert:

recognised offsets entity means a person recognised as an offsets entity.

[domestic offsets]

(9)     Clause 5, page 28 (lines 22 and 23), omit the definition of vacancy , substitute:

vacancy :

                     (a)  in relation to the office of an expert advisory committee member—has a meaning affected by section 7; or

                     (b)  in relation to the office of a Domestic Offsets Integrity Committee member—has a meaning affected by section 7A.

[domestic offsets]

(10)   Page 30 (after line 9), after clause 7, insert:

7A   Vacancy in the office of a Domestic Offsets Integrity Committee member

                   For the purposes of a reference in:

                     (a)  this Act to a vacancy in the office of a Domestic Offsets Integrity Committee member; or

                     (b)  the Acts Interpretation Act 1901 to a vacancy in the membership of a body;

there are taken to be 4 offices of member of the Domestic Offsets Integrity Committee in addition to the Chair of the Domestic Offsets Integrity Committee.

[domestic offsets]

(11)   Clause 88, page 131 (line 21), omit “greenhouse gases).”, substitute “greenhouse gases); or”.

[domestic offsets]

(12)   Clause 88, page 131 (after line 21), at the end of the clause, add:

                     (g)  in accordance with the domestic offsets program.

[domestic offsets]

(13)   Clause 101, page 142 (line 3), omit “and”, substitute “or”.

[domestic offsets]

(14)   Clause 101, page 142 (after line 3), at the end of paragraph (1)(a), add:

                             (v)  in accordance with the domestic offsets program; and

[domestic offsets]

(15)   Page 343 (after line 14), after Part 11, insert:

Part 11A Domestic offsets program

Division 1 Introduction

259A   Simplified outline

                   The following is a simplified outline of this Part:

•      The regulations may formulate a program (to be known as the domestic offsets program ) for the issue of free Australian emissions units in respect of eligible domestic offsets projects.

•      Free units will be issued to the project proponent of the eligible domestic offsets project, so long as the project proponent is recognised as an offsets entity by the Authority.

•      Eligible domestic offsets projects must be:

               (a)     covered by a domestic offsets project methodology determination; and

              (b)     carried on in Australia.

•      A domestic offsets project methodology determination must not be inconsistent with the domestic offsets project methodology principles.

Division 2 Formulation of the domestic offsets program

259B   Formulation of the domestic offsets program

             (1)  The regulations may formulate a program (to be known as the domestic offsets program ) for the issue of free Australian emissions units in respect of offsets projects that, under the program, have been declared by the Authority to be eligible domestic offsets projects.

Issue of free Australian emissions units

             (2)  The domestic offsets program must provide that free Australian emissions units must not be issued to a person in accordance with the program unless the person:

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

                     (b)  is a recognised offsets entity; and

                     (c)  has a Registry account.

             (3)  The domestic offsets program must provide that the method of calculating the number of free Australian emissions units to be issued to a person in accordance with the program in respect of an eligible domestic offsets project is to be ascertained in accordance with the applicable domestic offsets project methodology determination.

Criteria for declaration of eligible domestic offsets project

             (4)  The domestic offsets program must provide that the Authority must not declare that an offsets project is an eligible domestic offsets project unless the Authority is satisfied that:

                     (a)  the project:

                              (i)  is, or is to be, carried on in Australia; and

                             (ii)  is covered by a domestic offsets project methodology determination; and

                            (iii)  meets such requirements as are set out in the applicable domestic offsets project methodology determination in accordance with paragraph 259J(1)(b); and

                            (iv)  meets such other requirements (if any) as are specified in the program; and

                             (v)  does not involve the clearing or harvesting of native forest; and

                            (vi)  does not involve using material obtained as a result of the clearing or harvesting of native forest; and

                     (b)  the person who, under the domestic offsets program, is taken to be the project proponent of the project is a recognised offsets entity.

Note:          Domestic offsets project methodology determinations are made under section 259J.

             (5)  The domestic offsets program must provide that the Authority must not declare that an offsets project is an eligible domestic offsets project unless an application for the declaration is made on or after 1 July 2011.

Duration of declaration etc.

             (6)  The domestic offsets program must provide that a declaration of an offsets project as an eligible domestic offsets project takes effect:

                     (a)  immediately after it is made; or

                     (b)  if:

                              (i)  an earlier day is specified in the declaration; and

                             (ii)  the applicant for the declaration has consented to the specification of the earlier day; and

                            (iii)  the earlier day is not before 1 July 2011;

                            on the day specified.

             (7)  The domestic offsets program must provide that a declaration of an offsets project as an eligible domestic offsets project remains in force until the end of the period ascertained in accordance with the program, unless revoked sooner by the Authority.

             (8)  The domestic offsets program may provide that, if a declaration (the renewal declaration ) of an offsets project as an eligible domestic offsets project is made by way of the renewal of the previous declaration of the project, the renewal declaration takes effect immediately after the expiry of the previous declaration.

Revocation of declaration

             (9)  The domestic offsets program must provide that a declaration of an offsets project as an eligible domestic offsets project may be revoked by the Authority if the Authority is satisfied that:

                     (a)  the project:

                              (i)  is not being, or will not be, carried on in Australia; or

                             (ii)  is not covered by a domestic offsets project methodology determination; or

                            (iii)  does not meet any or all of the requirements set out in the applicable domestic offsets project methodology determination in accordance with paragraph 259J(1)(b); or

                            (iv)  does not meet any or all of the requirements specified in the program; or

                     (b)  the person who, under the domestic offsets program, is taken to be the project proponent of the project is not a recognised offsets entity.

Declaration is not legislative instrument etc.

           (10)  A declaration of an offsets project as an eligible domestic offsets project is not a legislative instrument.

           (11)  A revocation of such a declaration is not a legislative instrument.

259C   Reporting requirement

Scope

             (1)  This section applies if, under the domestic offsets program, a person is taken to be the project proponent of an eligible domestic offsets project.

Requirement

             (2)  The domestic offsets program may make provision for and in relation to requiring the person to give a written report to the Authority in relation to the project in respect of a period (a domestic offsets reporting period ) ascertained in accordance with the program.

             (3)  A domestic offsets reporting period:

                     (a)  may be a recurring period (for example, a financial year); and

                     (b)  must not be shorter than 12 months.

             (4)  The domestic offsets program must provide that a report given by the person as mentioned in subsection (2) must be accompanied by a prescribed audit report prepared by another person ascertained in accordance with the program.

259D   Record-keeping requirement

Scope

             (1)  This section applies if, under the domestic offsets program, a person is taken to be the project proponent of an eligible domestic offsets project.

Requirement

             (2)  The domestic offsets program may make provision for and in relation to requiring the person to:

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

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

259E   Relinquishment requirement

             (1)  The domestic offsets program may provide that, if:

                     (a)  a number of free Australian emissions units have been issued in respect of an eligible domestic offsets project in accordance with the program; and

                     (b)  the application for the declaration of the project as an eligible domestic offsets project contained information that was false or misleading in a material particular; and

                     (c)  the issue of any or all of the units was directly or indirectly attributable to the false or misleading information;

the person who, under the program, is taken to be the project proponent of the project is required to relinquish a number of Australian emissions units ascertained in accordance with the program. The number of Australian emissions units required to be relinquished must not exceed the number of Australian emissions units the issue of which was directly or indirectly attributable to the false or misleading information.

Note:          An administrative penalty is payable under section 287 for non-compliance with a relinquishment requirement under the domestic offsets program.

             (2)  The domestic offsets program may provide that, if:

                     (a)  a number of free Australian emissions units have been issued in respect of an eligible domestic offsets project in accordance with the program; and

                     (b)  the person who, under the program, is taken to be the project proponent of the project has given the Authority a report as mentioned in subsection 259C(2); and

                     (c)  the report contains information that is false or misleading in a material particular; and

                     (d)  the issue of any or all of the units was directly or indirectly attributable to the false or misleading information;

the person is required to relinquish a number of Australian emissions units ascertained in accordance with the program. The number of Australian emissions units required to be relinquished must not exceed the number of Australian emissions units the issue of which was directly or indirectly attributable to the false or misleading information.

Note:          An administrative penalty is payable under section 287 for non-compliance with a relinquishment requirement under the domestic offsets program.

             (3)  The domestic offsets program may provide that, if:

                     (a)  a number of free Australian emissions units have been issued in respect of an eligible domestic offsets project in accordance with the program; and

                     (b)  the project involves the removal of one or more greenhouse gases from the atmosphere; and

                     (c)  there has been a complete or partial reversal of that removal;

the person who, under the program, is taken to be the project proponent of the project is required to relinquish a number of Australian emissions units ascertained in accordance with the program. The number of Australian emissions units required to be relinquished must not exceed the total number of Australian emissions units that, under the domestic offsets program, is taken to be the number of units attributable to that removal.

Note:          An administrative penalty is payable under section 287 for non-compliance with a relinquishment requirement under the domestic offsets program.

             (4)  The domestic offsets program may provide that, if:

                     (a)  a number of free Australian emissions units have been issued in respect of an eligible domestic offsets project in accordance with the program; and

                     (b)  if:

                              (i)  the project is a project to reduce emissions of one or more greenhouse gases; and

                             (ii)  the reduction involves storage; and

                     (c)  there has been a complete or partial reversal of that storage;

the person who, under the program, is taken to be the project proponent of the project is required to relinquish a number of Australian emissions units ascertained in accordance with the program. The number of Australian emissions units required to be relinquished must not exceed the total number of Australian emissions units that, under the domestic offsets program, is taken to be the number of units attributable to that reduction.

Note:          An administrative penalty is payable under section 287 for non-compliance with a relinquishment requirement under the domestic offsets program.

259F   Other matters

Declaration of eligible domestic offsets project

             (1)  The domestic offsets program may make provision for and in relation to the following matters:

                     (a)  applications for offsets projects to be declared to be eligible domestic offsets projects;

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

                     (c)  the fee (if any) that must accompany such an application;

                     (d)  information that must accompany such an application;

                     (e)  documents that must accompany such an application.

             (2)  The domestic offsets program may provide for verification by statutory declaration of statements in applications for offsets projects to be declared to be eligible domestic offsets projects.

             (3)  The domestic offsets program may provide that an application for an offsets project to be declared to be an eligible domestic offsets project must be accompanied by a prescribed report.

Applications for free Australian emissions units

             (4)  The domestic offsets program may make provision for and in relation to the following matters:

                     (a)  applications for free Australian emissions units;

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

                     (c)  information that must accompany such an application;

                     (d)  documents that must accompany such an application.

             (5)  The domestic offsets program may provide for verification by statutory declaration of statements in applications for free Australian emissions units.

259G   Ancillary or incidental provisions

                   The domestic offsets program may contain ancillary or incidental provisions.

Division 3 Compliance with reporting and record-keeping requirements under the domestic offsets program

259H   Compliance with reporting and record-keeping requirements

Reporting requirements

             (1)  If a person is subject to a requirement under the domestic offsets program to give a report to the Authority, the person must comply with that requirement.

Record-keeping requirements

             (2)  If a person is subject to a requirement under the domestic offsets program 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 affect a contravention of subsection (1) or (2).

Civil penalty provisions

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

Note:          Part 21 provides for pecuniary penalties for breaches of civil penalty provisions.

Division 4 Domestic offsets project methodology determinations

259J   Domestic offsets project methodology determinations

             (1)  The Minister may, by legislative instrument, make a determination, to be known as a domestic offsets project methodology determination , that:

                     (a)  is expressed to apply to a specified kind of offsets project; and

                     (b)  sets out requirements that must be met for such a project to be an eligible domestic offsets project; and

                     (c)  provides that, if such a project is an eligible domestic offsets project, the number of free Australian emissions units to be issued to a person in accordance with the domestic offsets program in respect of the project for a domestic offsets reporting period must equal:

                              (i)  if the project relates to the removal of one or more greenhouse gases—the net total number of tonnes of greenhouse gases that, under the determination, is taken to be removed as a result of the project during the domestic offsets reporting period; or

                             (ii)  if the project relates to the reduction of emissions of one or more greenhouse gases—the net total number of tonnes of greenhouse gases that, under the determination, is taken to be reduced as a result of the project during the domestic offsets reporting period.

             (2)  The Minister must not make or amend a domestic offsets project methodology determination unless the Minister does so in accordance with advice given to the Minister by the Domestic Offsets Integrity Committee.

Note:          The Domestic Offsets Integrity Committee is established by section 373A.

             (3)  To avoid doubt, the Minister may revoke a domestic offsets project methodology determination without obtaining advice from the Domestic Offsets Integrity Committee.

             (4)  A domestic offsets project methodology determination must not be inconsistent with the domestic offsets project methodology principles.

259K   Domestic offsets project methodology principles

             (1)  For the purposes of the application of this Act to an offsets project, the domestic offsets project methodology principles are as follows:

                     (a)  if the project is a project to remove one or more greenhouse gases from the atmosphere—the removal can be used to meet Australia’s climate change targets under:

                              (i)  the Kyoto Protocol; or

                             (ii)  an international agreement (if any) that is the successor (whether immediate or otherwise) to the Kyoto Protocol;

                     (b)  if the project is a project to reduce emissions of one or more greenhouse gases—the reduction can be used to meet Australia’s climate change targets under:

                              (i)  the Kyoto Protocol; or

                             (ii)  an international agreement (if any) that is the successor (whether immediate or otherwise) to the Kyoto Protocol;

                     (c)  the project meets the integrity requirements set out in subsection (2);

                     (d)  if the project is a project to reduce emissions of one or more greenhouse gases—the project is not a project to reduce an emission that, under regulations made for the purposes of paragraph 10(2A)(a) of the National Greenhouse and Energy Reporting Act 2007 , is a scope 1 emission covered by the carbon pollution reduction scheme;

                     (e)  the project is not a reforestation project that has resulted, or has the potential to result, in the issue of free Australian emissions units in accordance with Part 10;

                      (f)  the project does not involve:

                              (i)  the destruction of one or more synthetic greenhouse gases; or

                             (ii)  the reduction of emissions of one or more synthetic greenhouse gases.

Integrity requirements

             (2)  The integrity requirements mentioned in paragraph (1)(c) are as follows:

                     (a)  if the project is a project to remove one or more greenhouse gases from the atmosphere—the removal is:

                              (i)  measurable; and

                             (ii)  capable of being verified;

                     (b)  if the project is a project to reduce emissions of one or more greenhouse gases——the reduction is:

                              (i)  measurable; and

                             (ii)  capable of being verified;

                     (c)  the project would not have been proposed or carried out in the absence of the issue of free Australian emissions units in accordance with the domestic offsets program;

                     (d)  if the project is a project to remove one or more greenhouse gases from the atmosphere—the removal is not likely to be reversed in whole or in part;

                     (e)  if:

                              (i)  the project is a project to reduce emissions of one or more greenhouse gases; and

                             (ii)  the reduction involves storage;

                            the storage is not likely to be reversed in whole or in part;

                      (f)  if the project is a project to remove one or more greenhouse gases from the atmosphere—the removal is not offset by emissions of one or more greenhouse gases outside the project;

                     (g)  if the project is a project to reduce emissions of one or more greenhouse gases—the reduction is not offset by emissions of one or more greenhouse gases outside the project;

                     (h)  such other requirements (if any) as are specified in the regulations.

Landfill facilities

             (3)  Paragraph (1)(d) does not apply to a project to reduce the following emissions:

                     (a)  emissions that, under subsection 20(6) or (8), do not count for the purposes of subsection 20(1) (which deals with landfill facilities);

                     (b)  emissions that, under subsection 21(6) or (8), do not count for the purposes of subsection 21(1) (which deals with landfill facilities);

                     (c)  emissions that, under subsection 22(6) or (7), do not count for the purposes of subsection 22(1) (which deals with landfill facilities).

Division 5 Recognised offsets entities

259L   Application for recognition as an offsets entity

             (1)  A person may apply to the Authority for recognition as an offsets entity.

             (2)  A person is not entitled to make an application before 1 July 2011.

259M   Form of application

             (1)  An application must:

                     (a)  be in writing; and

                     (b)  be in a form approved, in writing, by the Authority; and

                     (c)  be accompanied by such information as is specified in the regulations; and

                     (d)  be accompanied by such documents (if any) as are specified in the regulations; and

                     (e)  be accompanied by the fee (if any) specified in the regulations.

             (2)  The approved form of application may provide for verification by statutory declaration of statements in applications.

             (3)  A fee specified under paragraph (1)(e) must not be such as to amount to taxation.

259N   Further information

             (1)  The Authority may, by written notice given to an applicant, require the applicant to give the Authority, within the period specified in the notice, further information in connection with the application.

             (2)  If the applicant breaches the requirement, the Authority may, by written notice given to the applicant:

                     (a)  refuse to consider the application; or

                     (b)  refuse to take any action, or any further action, in relation to the application.

259P   Recognition as an offsets entity

Scope

             (1)  This section applies if an application under section 259L has been made for recognition as an offsets entity.

Recognition

             (2)  After considering the application, the Authority may, by written notice given to the applicant, recognise the applicant as an offsets entity.

Criteria for recognition

             (3)  The Authority must not recognise the applicant as an offsets entity unless:

                     (a)  the Authority is satisfied that the applicant is a fit and proper person, having regard to the following:

                              (i)  whether the applicant has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to dishonest conduct;

                             (ii)  whether the applicant has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to the conduct of a business;

                            (iii)  whether the applicant has been convicted of an offence against section 136.1, 137.1 or 137.2 of the Criminal Code ;

                            (iv)  whether an order has been made against the applicant under section 76 of the Trade Practices Act 1974 ;

                             (v)  whether the applicant has breached this Act or the associated provisions;

                            (vi)  if the applicant is a body corporate—whether an executive officer of the body corporate has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to dishonest conduct;

                           (vii)  if the applicant is a body corporate—whether an executive officer of the body corporate has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to the conduct of a business;

                          (viii)  if the applicant is a body corporate—whether an executive officer of the body corporate has been convicted of an offence against section 136.1, 137.1 or 137.2 of the Criminal Code ;

                            (ix)  if the applicant is a body corporate—whether an order has been made against an executive officer of the body corporate under section 76 of the Trade Practices Act 1974 ;

                             (x)  if the applicant is a body corporate—whether an executive officer of the body corporate has breached this Act or the associated provisions;

                            (xi)  such other matters (if any) as the Authority considers relevant; and

                     (b)  if the applicant is an individual—the Authority is satisfied that the applicant is not an insolvent under administration; and

                     (c)  if the applicant is a body corporate—the Authority is satisfied that the applicant is not an externally-administered body corporate; and

                     (d)  if the regulations specify one or more other eligibility requirements—the Authority is satisfied that those requirements are met.

             (4)  Subparagraphs (3)(a)(i) to (x) do not limit subparagraph (3)(a)(xi).

Timing

             (5)  The Authority must take all reasonable steps to ensure that a decision is made on the application:

                     (a)  if the Authority requires the applicant to give further information under subsection 259N(1) in relation to the application—within 90 days after the applicant gave the Authority the information; or

                     (b)  otherwise—within 90 days after the application was made.

Refusal

             (6)  If the Authority decides to refuse to recognise the applicant as an offsets entity, the Authority must give written notice of the decision to the applicant.

259Q   Cancellation of recognition

             (1)  The Authority may cancel the recognition of a person as an offsets entity if:

                     (a)  the Authority is satisfied that the person is not a fit and proper person, having regard to the following:

                              (i)  whether the person has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to dishonest conduct;

                             (ii)  whether the person has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to the conduct of a business;

                            (iii)  whether the person has been convicted of an offence against section 136.1, 137.1 or 137.2 of the Criminal Code ;

                            (iv)  whether an order has been made against the person under section 76 of the Trade Practices Act 1974 ;

                             (v)  whether the person has breached this Act or the associated provisions;

                            (vi)  if the person is a body corporate—whether an executive officer of the body corporate has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to dishonest conduct;

                           (vii)  if the person is a body corporate—whether an executive officer of the body corporate has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to the conduct of a business;

                          (viii)  if the person is a body corporate—whether an executive officer of the body corporate has been convicted of an offence against section 136.1, 137.1 or 137.2 of the Criminal Code ;

                            (ix)  if the person is a body corporate—whether an order has been made against an executive officer of the body corporate under section 76 of the Trade Practices Act 1974 ;

                             (x)  if the person is a body corporate—whether an executive officer of the body corporate has breached this Act or the associated provisions;

                            (xi)  such other matters (if any) as the Authority considers relevant; or

                     (b)  if the person is an individual—the Authority is satisfied that the person is an insolvent under administration; or

                     (c)  if the person is a body corporate—the Authority is satisfied that the person is an externally-administered body corporate; or

                     (d)  if the regulations specify one or more other grounds for cancellation—the Authority is satisfied that at least one of those grounds is applicable to the person.

             (2)  Subparagraphs (1)(a)(i) to (x) do not limit subparagraph (1)(a)(xi).

259R   Surrender of recognition

Scope

             (1)  This section applies if a person is recognised as an offsets entity.

Surrender

             (2)  The person may, by written notice given to the Authority, surrender the person’s recognition.

             (3)  The surrender takes effect on the day the notice is received by the Authority or, if a later day is specified in the notice, on that later day.

259S   Recognition is not transferable

                   If a person is recognised as an offsets entity, the person’s recognition is not transferable.

[domestic offsets]

(16)   Clause 273, page 358 (after line 12), at the end of the clause, add:

Domestic offsets program

             (5)  A soon as practicable after free Australian emissions units are issued to a person in accordance with the domestic offsets program, the Authority must publish on its website:

                     (a)  the name of the person; and

                     (b)  the total number of free Australian emissions units issued to the person; and

                     (c)  the vintage year of the free Australian emissions units issued to the person.

[domestic offsets]

(17)   Clause 274, page 359 (lines 6 and 7), omit “greenhouse gases).”, substitute “greenhouse gases);”.

[domestic offsets]

(18)   Clause 274, page 359 (after line 7), at the end of the clause, add:

                     (g)  the total number of free Australian emissions units with a particular vintage year issued during the quarter in accordance with the domestic offsets program.

[domestic offsets]

(19)   Page 367 (after line 13), at the end of Part 12, add:

Division 8 Information about eligible domestic offsets projects

278H   Information about eligible domestic offsets projects

                   For each eligible domestic offsets project, the Authority must publish on its website:

                     (a)  a description of the project; and

                     (b)  the location of the project; and

                     (c)  the name of the person who applied to the Authority for the declaration of the project as an eligible domestic offsets project; and

                     (d)  the name of the person who, under the domestic offsets program, is taken to be the project proponent of the project; and

                     (e)  if any Australian emissions units have been issued in relation to the project in accordance with the domestic offsets program:

                              (i)  the total number of units so issued; and

                             (ii)  the name of the person, or each of the persons, to whom those units have been issued; and

                      (f)  the name of the applicable domestic offsets methodology determination; and

                     (g)  such other information (if any) relating to the project as the Authority considers appropriate.

[domestic offsets]

(20)   Clause 285, page 375 (lines 17 and 18), omit “or the emissions-intensive trade-exposed assistance program”, substitute “, the emissions-intensive trade-exposed assistance program or the domestic offsets program”.

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(21)   Clause 286, page 376 (after line 26), after paragraph (2)(da), insert:

                   (db)  if the Australian emissions unit or units are being relinquished in order to comply with a requirement under the domestic offsets program—specify the requirement to which the relinquishment relates; and

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(22)   Clause 286, page 377 (line 14), at the end of subparagraph (3)(b)(ii), add “or”.

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(23)   Clause 286, page 377 (after line 14), at the end of paragraph (3)(b), add:

                            (iii)  Part 11A (domestic offsets program);

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(24)   Clause 286, page 377 (line 26), omit “and”, substitute “or”.

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(25)   Clause 286, page 377 (after line 26), at the end of paragraph (4)(b), add:

                            (iii)  Part 11A (domestic offsets program); and

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(26)   Clause 286, page 378 (line 23), at the end of paragraph (6)(ba), add “or”.

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(27)   Clause 286, page 378 (after line 23), after paragraph (6)(ba), insert:

                   (bb)  an Australian emissions unit is relinquished by a person in order to comply with a requirement under the domestic offsets program;

[domestic offsets]

(28)   Clause 337, page 421 (after line 10), after paragraph (1)(qa), insert:

                   (qb)  subsection 259H(1);

                   (qc)  subsection 259H(2);

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(29)   Clause 338, page 422 (after line 9), after paragraph (2)(da), insert:

                   (db)  subsection 259H(1);

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(30)   Clause 346, page 432, after table item 48, insert:

48A

A prescribed decision under the domestic offsets program.

48B

A decision to refuse to recognise a person as an offsets entity under section 259P.

48C

A decision to cancel a person’s recognition as an offsets entity under section 259Q.

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(31)   Clause 353, page 439 (after line 8), after paragraph (1)(h), insert:

                   (ha)  the effectiveness and efficiency of:

                              (i)  the domestic offsets program; and

                             (ii)  any domestic offsets project methodology determinations;

[domestic offsets]

(32)   Clause 353, page 439 (after line 11), after subparagraph (1)(i)(i), insert:

                            (ia)  the functions of the Domestic Offsets Integrity Committee; and

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(33)   Page 451 (after line 23), after Part 25, insert:

Part 25A Domestic Offsets Integrity Committee

Division 1 Establishment and functions of the Domestic Offsets Integrity Committee

373A   Establishment of the Domestic Offsets Integrity Committee

                   The Domestic Offsets Integrity Committee is established.

373B   Functions of the Domestic Offsets Integrity Committee

             (1)  The Domestic Offsets Integrity Committee has the following functions:

                     (a)  to advise the Minister about matters relating to the making or amendment of domestic offsets project methodology determinations;

                     (b)  to advise the Secretary about matters that:

                              (i)  relate to offsets projects; and

                             (ii)  are referred to the Committee by the Secretary;

                     (c)  to do anything incidental to or conducive to the performance of the above functions.

             (2)  In advising the Minister to make or amend a domestic offsets project methodology determination, the Domestic Offsets Integrity Committee must:

                     (a)  assess the costs and benefits of making or amending the determination; and

                     (b)  have regard to such other matters as the Domestic Offsets Integrity Committee considers relevant.

373C   Consultation by the Domestic Offsets Integrity Committee

Domestic offsets project methodology determination

             (1)  The Domestic Offsets Integrity Committee must not advise the Minister to make or amend a domestic offsets project methodology determination unless the Committee has first:

                     (a)  published on the Department’s website:

                              (i)  a draft of the determination or amendment; and

                             (ii)  a notice inviting the public to make a submission to the Committee on the draft by a specified time limit; and

                     (b)  considered any submissions that were received within that time limit.

             (2)  The time limit must not be shorter than 60 days.

Work program and priorities

             (3)  At least once each financial year, the Domestic Offsets Integrity Committee must:

                     (a)  publish on the Department’s website a statement setting out the Committee’s draft work program and priorities; and

                     (b)  invite the public to make a submission to the Committee on the draft by a specified time limit.

             (4)  The time limit must not be shorter than 60 days.

Division 2 Membership of the Domestic Offsets Integrity Committee

373D   Membership of the Domestic Offsets Integrity Committee

                   The Domestic Offsets Integrity Committee consists of the following members:

                     (a)  a Chair;

                     (b)  at least 4, and not more than 5, other members.

373E   Appointment of Domestic Offsets Integrity Committee members

             (1)  Each Domestic Offsets Integrity Committee member is to be appointed by the Minister by written instrument.

Note:          The Domestic Offsets Integrity Committee member is eligible for reappointment: see subsection 33(4A) of the Acts Interpretation Act 1901 .

             (2)  A person is not eligible for appointment as a Domestic Offsets Integrity Committee member unless the Minister is satisfied that the person has:

                     (a)  substantial experience or knowledge; and

                     (b)  significant standing;

in at least one field of expertise that is relevant to the functions of the Domestic Offsets Integrity Committee.

             (3)  The Minister must ensure that:

                     (a)  the Chair of the Domestic Offsets Integrity Committee is not a person covered by subsection (4); and

                     (b)  a majority of the other Domestic Offsets Integrity Committee members are not persons covered by subsection (4).

             (4)  This subsection applies to the following persons:

                     (a)  an employee of the Commonwealth;

                     (b)  an employee of an authority of the Commonwealth;

                     (c)  a person who holds a full-time office under a law of the Commonwealth.

             (5)  The Minister must ensure that one Domestic Offsets Integrity Committee member:

                     (a)  is an SES employee in the Department; or

                     (b)  holds an Executive Officer (Level 2) position in the Department.

             (6)  The Minister must ensure that one Domestic Offsets Integrity Committee member is an officer of the Commonwealth Scientific and Industrial Research Organisation nominated by the Chief Executive of the Commonwealth Scientific and Industrial Research Organisation.

             (7)  A Domestic Offsets Integrity Committee member holds office on a part-time basis.

373F   Period for appointment for Domestic Offsets Integrity Committee members

                   A Domestic Offsets Integrity Committee member holds office for the period specified in the instrument of appointment. The period must not exceed 5 years.

Note:          For re-appointment, see subsection 33(4A) of the Acts Interpretation Act 1901 .

373G   Acting Domestic Offsets Integrity Committee members

Acting Chair of Domestic Offsets Integrity Committee

             (1)  The Minister may appoint a Domestic Offsets Integrity Committee member to act as the Chair of the Domestic Offsets Integrity Committee:

                     (a)  during a vacancy in the office of the Domestic Offsets Integrity Committee Chair (whether or not an appointment has previously been made to the office); or

                     (b)  during any period, or during all periods, when the Chair of the Domestic Offsets Integrity Committee:

                              (i)  is absent from duty or from Australia; or

                             (ii)  is, for any reason, unable to perform the duties of the office.

Acting Domestic Offsets Integrity Committee member (other than the Chair)

             (2)  The Minister may appoint a person to act as a Domestic Offsets Integrity Committee member (other than the Chair of the Domestic Offsets Integrity Committee):

                     (a)  during a vacancy in the office of a Domestic Offsets Integrity Committee member (other than the Chair of the Domestic Offsets Integrity Committee), whether or not an appointment has previously been made to the office; or

                     (b)  during any period, or during all periods, when a Domestic Offsets Integrity Committee member (other than the Chair of the Domestic Offsets Integrity Committee):

                              (i)  is absent from duty or Australia; or

                             (ii)  is, for any reason, unable to perform the duties of the office.

Eligibility

             (3)  A person is not eligible for appointment to act as:

                     (a)  the Chair of the Domestic Offsets Integrity Committee; or

                     (b)  a Domestic Offsets Integrity Committee member (other than the Chair of the Domestic Offsets Integrity Committee);

unless the person is eligible for appointment as a Domestic Offsets Integrity Committee member.

Note:          See subsection 373E(2).

Validation

             (4)  Anything done by or in relation to a person purporting to act under an appointment is not invalid merely because:

                     (a)  the occasion for the appointment had not arisen; or

                     (b)  there was a defect or irregularity in connection with the appointment; or

                     (c)  the appointment ceased to have effect; or

                     (d)  the occasion to act had not arisen or had ceased.

Note:          See sections 20 and 33A of the Acts Interpretation Act 1901 .

373H   Procedures

             (1)  The regulations may prescribe the procedures to be followed at or in relation to meetings of the Domestic Offsets Integrity Committee, including matters relating to the following:

                     (a)  the convening of meetings of the Domestic Offsets Integrity Committee;

                     (b)  the number of Domestic Offsets Integrity Committee members who are to constitute a quorum;

                     (c)  the selection of a Domestic Offsets Integrity Committee member to preside at meetings of the Domestic Offsets Integrity Committee in the absence of the Chair of the Domestic Offsets Integrity Committee;

                     (d)  the manner in which questions arising at a meeting of the Domestic Offsets Integrity Committee are to be decided.

             (2)  A resolution is taken to have been passed at a meeting of the Domestic Offsets Integrity Committee if:

                     (a)  without meeting, a majority of Domestic Offsets Integrity Committee members indicate agreement with the resolution in accordance with the method determined by the Domestic Offsets Integrity Committee under subsection (3); and

                     (b)  all Domestic Offsets Integrity Committee members were informed of the proposed resolution, or reasonable efforts had been made to inform all Domestic Offsets Integrity Committee members of the proposed resolution.

             (3)  Subsection (2) applies only if the Domestic Offsets Integrity Committee:

                     (a)  determines that it applies; and

                     (b)  determines the method by which Domestic Offsets Integrity Committee members are to indicate agreement with resolutions.

             (4)  If a Domestic Offsets Integrity Committee member is an APS employee in the Department, the member:

                     (a)  is not entitled to vote for a resolution at a meeting of the Domestic Offsets Integrity Committee; and

                     (b)  is not entitled to indicate agreement with a resolution as mentioned in paragraph (2)(a); and

                     (c)  is not to be counted for the purposes of determining whether a majority of Domestic Offsets Integrity Committee members:

                              (i)  have voted for a resolution at a meeting of the Domestic Offsets Integrity Committee; or

                             (ii)  have indicated agreement with a resolution as mentioned in paragraph (2)(a).

373J   Disclosure of interests to the Minister

                   A Domestic Offsets Integrity Committee member must give written notice to the Minister of all interests, pecuniary or otherwise, that the member has or acquires and that conflict or could conflict with the proper performance of the member’s functions.

373K   Disclosure of interests to Domestic Offsets Integrity Committee

             (1)  A Domestic Offsets Integrity Committee member who has an interest, pecuniary or otherwise, in a matter being considered or about to be considered by the Domestic Offsets Integrity Committee must disclose the nature of the interest to a meeting of the Domestic Offsets Integrity Committee.

             (2)  The disclosure must be made as soon as possible after the relevant facts have come to the Domestic Offsets Integrity Committee member’s knowledge.

             (3)  The disclosure must be recorded in the minutes of the meeting of the Domestic Offsets Integrity Committee.

             (4)  Unless the Domestic Offsets Integrity Committee otherwise determines, the Domestic Offsets Integrity Committee member:

                     (a)  must not be present during any deliberation by the Domestic Offsets Integrity Committee on the matter; and

                     (b)  must not take part in any decision of the Domestic Offsets Integrity Committee with respect to the matter.

             (5)  For the purposes of making a determination under subsection (4), the Domestic Offsets Integrity Committee member:

                     (a)  must not be present during any deliberation of the Domestic Offsets Integrity Committee for the purpose of making the determination; and

                     (b)  must not take part in making the determination.

             (6)  A determination under subsection (4) must be recorded in the minutes of the meeting of the Domestic Offsets Integrity Committee.

373L   Outside employment

                   A Domestic Offsets Integrity Committee member must not engage in any paid employment that conflicts or may conflict with the proper performance of his or her duties.

373M   Remuneration and allowances

             (1)  A Domestic Offsets Integrity Committee member is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the member is to be paid the remuneration that is prescribed.

             (2)  A Domestic Offsets Integrity Committee member is to be paid the allowances that are prescribed.

             (3)  This section has effect subject to the Remuneration Tribunal Act 1973 .

373N   Leave of absence

             (1)  The Minister may grant leave of absence to the Chair of the Domestic Offsets Integrity Committee on the terms and conditions that the Minister determines.

             (2)  The Chair of the Domestic Offsets Integrity Committee may grant leave of absence to a Domestic Offsets Integrity Committee member on the terms and conditions that the Chair determines.

373P   Resignation

             (1)  A Domestic Offsets Integrity Committee member may resign his or her appointment by giving the Minister a written resignation.

             (2)  The resignation takes effect on the day it is received by the Minister or, if a later day is specified in the resignation, on that later day.

373Q   Termination of appointment

             (1)  The Minister may terminate the appointment of a Domestic Offsets Integrity Committee member for misbehaviour or physical or mental incapacity.

             (2)  The Minister may terminate the appointment of a Domestic Offsets Integrity Committee member if:

                     (a)  the member:

                              (i)  becomes bankrupt; or

                             (ii)  applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or

                            (iii)  compounds with his or her creditors; or

                            (iv)  makes an assignment of remuneration for the benefit of his or her creditors; or

                     (b)  the member is absent, except on leave of absence, for 3 consecutive meetings of the Domestic Offsets Integrity Committee; or

                     (c)  the member engages in paid employment that conflicts or may conflict with the proper performance of his or her duties (see section 373L); or

                     (d)  the member fails, without reasonable excuse, to comply with section 373J or 373K.

             (3)  The Minister may terminate the appointment of the Chair of the Domestic Offsets Integrity Committee if the Chair is:

                     (a)  an employee of the Commonwealth; or

                     (b)  an employee of an authority of the Commonwealth; or

                     (c)  a person who holds a full-time office under a law of the Commonwealth.

             (4)  The Minister may terminate the appointment of a Domestic Offsets Integrity Committee member if the member is a director, officer or employee of another person who is, or is likely to be, a liable entity for the eligible financial year in which the termination occurs.

373R   Other terms and conditions

                   A Domestic Offsets Integrity Committee member holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Minister.

373S   Assistance to Domestic Offsets Integrity Committee

             (1)  Any or all of the following:

                     (a)  the Authority;

                     (b)  the Department;

                     (c)  any other Department, agency or authority of the Commonwealth;

may assist the Domestic Offsets Integrity Committee in the performance of its functions.

             (2)  The assistance may include the following:

                     (a)  the provision of information;

                     (b)  the provision of advice;

                     (c)  the making available of resources and facilities (including secretariat services and clerical assistance).

373T   Consultants

             (1)  The Chair of the Domestic Offsets Integrity Committee may, on behalf of the Commonwealth, engage persons having suitable qualifications and experience as consultants to the Committee.

             (2)  The consultants are to be engaged on the terms and conditions that the Chair determines in writing.

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(34)   Page 454 (after line 3), after clause 375A, insert:

375B   Delegation by the Secretary

             (1)  The Secretary may, by writing, delegate any or all of his or her functions or powers under this Act to an SES employee, or acting SES employee, in the Department.

Note:          The expressions SES employee and acting SES employee are defined in section 17AA of the Acts Interpretation Act 1901 .

             (2)  In exercising powers under a delegation, the delegate must comply with any directions of the Secretary.

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(35)   Clause 379, page 456 (after line 26), after paragraph (f), insert:

                    (fa)  a Domestic Offsets Integrity Committee member;

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(36)   Clause 382, page 461 (after line 8), at the end of the clause, add:

Domestic offsets program

           (11)  This Act and the associated provisions also have the effect they would have if the reference in subsection 259B(1) to the issue of free Australian emissions units were, by express provision, confined to the issue of free Australian emissions units to a person who is:

                     (a)  a constitutional corporation; or

                     (b)  the Commonwealth; or

                     (c)  an authority of the Commonwealth.

[domestic offsets]