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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 2, page 2 (table item 2), omit “The 28th day”, substitute “The 42nd day”.

[commencement]

(2)     Clause 2, page 2 (table item 2), omit “before the 28th day”, substitute “before the 42nd day”.

[commencement]

(3)     Clause 5, page 10 (after line 18), after the definition of Crown land , insert:

Crown lands Minister :

                     (a)  in relation to a State—means the Minister of the State who, under the regulations, is taken to be the Crown lands Minister of the State; or

                     (b)  in relation to a Territory—means the Minister of the Territory who, under the regulations, is taken to be the Crown lands Minister of the Territory.

[Crown lands Minister]

(4)     Clause 5, page 23 (lines 3 to 8), omit the definition of principal State Minister .

[Crown lands Minister]

(5)     Clause 5, page 23 (lines 9 to 14), omit the definition of principal Territory Minister .

[Crown lands Minister]

(6)     Clause 24, page 70 (line 22), before “For the purposes of”, insert “(1)”.

[exclusion of agricultural emissions]

(7)     Clause 24, page 70 (after line 30), at the end of the clause, add:

Exclusion of agricultural emissions

             (2)  For the purposes of this Act, an emission of a greenhouse gas from the operation of a facility does not include any of the following emissions:

                     (a)  an emission of methane from the digestive tract of livestock;

                     (b)  an emission of:

                              (i)  methane; or

                             (ii)  nitrous oxide;

                            from the decomposition of:

                            (iii)  livestock urine; or

                            (iv)  livestock dung;

                     (c)  an emission of methane from:

                              (i)  rice fields; or

                             (ii)  rice plants;

                     (d)  an emission of:

                              (i)  methane; or

                             (ii)  nitrous oxide;

                            from the burning of:

                            (iii)  savannas; or

                            (iv)  grasslands;

                     (e)  an emission of:

                              (i)  methane; or

                             (ii)  nitrous oxide;

                            from the burning of:

                            (iii)  crop stubble in fields; or

                            (iv)  crop residues in fields; or

                             (v)  sugar cane before harvest;

                      (f)  an emission of:

                              (i)  carbon dioxide; or

                             (ii)  methane; or

                            (iii)  nitrous oxide;

                            from soil.

             (3)  Paragraph (2)(f) does not apply to an emission that is attributable to the operation of a landfill facility.

[exclusion of agricultural emissions]

(8)     Clause 33, page 82 (lines 12 to 17), omit subclause (2), substitute:

Provisional emissions number

             (2)  For the purposes of this Act, that number is a provisional emissions number of the supplier for the eligible financial year.

Note:          See also section 37A, which deals with the exclusion of exported fuel.

[exclusion of exported fuel]

(9)     Clause 33, page 82 (line 21) to page 83 (line 2), omit subclause (4).

[exclusion of exported fuel]

(10)   Clause 35, page 85 (lines 14 to 19), omit subclause (2), substitute:

Provisional emissions number

             (2)  For the purposes of this Act, that number is a provisional emissions number of the supplier for the eligible financial year.

Note:          See also section 37A, which deals with the exclusion of exported fuel.

[exclusion of exported fuel]

(11)   Clause 35, page 85 (line 23) to page 86 (line 5), omit subclause (4).

[exclusion of exported fuel]

(12)   Clause 37, page 87 (lines 18 to 24), omit subclause (2), substitute:

Provisional emissions number

             (2)  For the purposes of this Act, that number is a provisional emissions number of the OTN holder for the eligible financial year in which the re-supply occurs.

Note:          See also section 37A, which deals with the exclusion of exported fuel.

[exclusion of exported fuel]

(13)   Clause 37, page 87 (line 28) to page 88 (line 13), omit subclause (4).

[exclusion of exported fuel]

(14)   Page 88 (after line 13), after clause 37, insert:

37A   Exclusion of exported eligible upstream fuel

Object

             (1)  The object of this section is to ensure that there is no liability under the carbon pollution reduction scheme for exported eligible upstream fuel.

Reduction of provisional emissions numbers—section 33 or 35

             (2)  If:

                     (a)  under section 33 or 35, or both, a person (the supplier ) has one or more provisional emissions numbers for an eligible financial year; and

                     (b)  the supplier has one or more netted-out numbers for the eligible financial year;

the total of those provisional emissions numbers is to be reduced (but not below zero) by the total of those netted-out numbers.

             (3)  For the purposes of subsection (2), if:

                     (a)  during an eligible financial year, the supplier supplied an amount of eligible upstream fuel to another person (the recipient ); and

                     (b)  as a result of the supply, the supplier has, under section 33 or 35, a provisional emissions number for the eligible financial year; and

                     (c)  after the supply, the supplier or recipient exported the fuel; and

                     (d)  the fuel has been entered for export (within the meaning of section 113 of the Customs Act 1901 ); and

                     (e)  the supplier has prescribed documentary evidence to show that the fuel was exported; and

                      (f)  the potential greenhouse gas emissions embodied in the amount mentioned in paragraph (a) have a carbon dioxide equivalence of a particular number of tonnes;

the number mentioned in paragraph (f) is a netted-out number of the supplier for the eligible financial year.

Reduction of provisional emissions numbers—section 37

             (4)  If:

                     (a)  under section 37, a person (the OTN holder ) has one or more provisional emissions numbers for an eligible financial year; and

                     (b)  the OTN holder has one or more netted-out numbers for the eligible financial year;

the total of those provisional emissions numbers is to be reduced (but not below zero) by the total of those netted-out numbers.

             (5)  For the purposes of subsection (4), if:

                     (a)  during an eligible financial year, the OTN holder re-supplied an amount of eligible upstream fuel to another person (the recipient ); and

                     (b)  as a result of the re-supply, the OTN holder has, under section 37, a provisional emissions number for the eligible financial year; and

                     (c)  after the re-supply, the OTN holder or the recipient exported the fuel; and

                     (d)  the fuel has been entered for export (within the meaning of section 113 of the Customs Act 1901 ); and

                     (e)  the OTN holder has prescribed documentary evidence to show that the fuel was exported; and

                      (f)  the potential greenhouse gas emissions embodied in the amount mentioned in paragraph (a) have a carbon dioxide equivalence of a particular number of tonnes;

the number mentioned in paragraph (f) is a netted-out number of the OTN holder for the eligible financial year.

[exclusion of exported fuel]

(15)   Clause 97, page 139 (line 2), omit “14 days”, substitute “90 days”.

[transmission of units by operation of law etc.]

(16)   Clause 97, page 139 (line 14), omit “14-day”, substitute “90-day”.

[transmission of units by operation of law etc.]

(17)   Clause 103, page 142 (line 16), omit “The Authority”, substitute “The Minister”.

[auctions]

(18)   Clause 116C, page 157 (line 11), omit “14 days”, substitute “90 days”.

[transmission of units by operation of law etc.]

(19)   Clause 116C, page 157 (line 23), omit “14-day”, substitute “90-day”.

[transmission of units by operation of law etc.]

(20)   Clause 122B, page 163 (line 22), omit “14 days”, substitute “90 days”.

[transmission of units by operation of law etc.]

(21)   Clause 122B, page 164 (line 4), omit “14-day”, substitute “90-day”.

[transmission of units by operation of law etc.]

(22)   Clause 130, page 176 (line 8), omit “more.”, substitute “more; and”.

[technical correction]

(23)   Clause 130, page 176 (after line 8), at the end of subclause (1), add:

                     (c)  if the current eligible financial year begins on or after 1 July 2012—there is a national scheme cap number for the current eligible financial year.

[technical correction]

(24)   Clause 132, page 179 (line 9), before “there is”, insert “if the current eligible financial year begins on or after 1 July 2012—”.

[technical correction]

(25)   Clause 198, page 256 (line 3), before “A person”, insert “(1)”.

[recognition as a reforestation entity]

(26)   Clause 198, page 256 (after line 4), at the end of the clause add:

             (2)  A person is not entitled to make an application before 1 July 2010.

[recognition as a reforestation entity]

(27)   Clause 205, page 262 (line 4), before “A person”, insert “(1)”.

[declaration of eligible reforestation project]

(28)   Clause 205, page 262 (after line 5), at the end of the clause, add:

             (2)  A person is not entitled to make an application before 1 July 2010.

[declaration of eligible reforestation project]

(29)   Clause 209, page 264 (lines 22 and 23), omit “principal State Minister of the State, or the principal Territory Minister of the Territory, as the case requires,”, substitute “Crown lands Minister of the State or Territory”.

[Crown lands Minister]

(30)   Clause 212, page 269 (lines 4 and 5), omit “principal State Minister of the State, or the principal Territory Minister of the Territory, as the case requires,”, substitute “Crown lands Minister of the State or Territory”.

[Crown lands Minister]

(31)   Clause 226, page 300 (line 16), omit “ interpretation ”, substitute “ Interpretation ”.

[technical correction]

(32)   Clause 239, page 319 (line 12), omit “projects areas”, substitute “project areas”.

[technical correction]

(33)   Clause 241B, page 326 (lines 9 to 11), omit “Minister of the State or Territory who, under the regulations, is taken to be the Crown lands Minister of the State or Territory”, substitute “Crown lands Minister of the State or Territory”.

[Crown lands Minister]

(34)   Clause 241B, page 326 (line 25), before “a chargee”, insert “is”.

[technical correction]

(35)   Clause 278, page 360 (lines 21 to 32), omit the clause, substitute:

277A   Publication of concise description of the characteristics of Australian emissions units

                   The Authority must:

                     (a)  before 31 December 2010, publish on its website a statement setting out a concise description of the characteristics of Australian emissions units; and

                     (b)  keep that statement up-to-date.

278   Publication of concise description of the characteristics of eligible international emissions units

Kyoto units

             (1)  The Authority must:

                     (a)  within 30 days after the commencement of this section, publish on its website a statement setting out a concise description of the characteristics of each of the following types of eligible international emissions units:

                              (i)  certified emission reductions (other than a temporary certified emission reduction or a long-term certified emission reduction);

                             (ii)  emission reduction units;

                            (iii)  removal units; and

                     (b)  keep that statement up-to-date.

             (2)  The Authority must:

                     (a)  within 30 days after the commencement of regulations made for the purposes of paragraph (d) of the definition of eligible international emissions unit in section 5, publish on its website a statement setting out a concise description of the characteristics of units prescribed by those regulations; and

                     (b)  keep that statement up-to-date.

Non-Kyoto units

             (3)  The Authority must:

                     (a)  within 30 days after the commencement of regulations made for the purposes of paragraph (a) of the definition of non-Kyoto international emissions unit in section 5, publish on its website a statement setting out a concise description of the characteristics of units prescribed by those regulations; and

                     (b)  keep that statement up-to-date.

             (4)  The Authority must:

                     (a)  within 30 days after the commencement of regulations made for the purposes of paragraph (b) of the definition of non-Kyoto international emissions unit in section 5, publish on its website a statement setting out a concise description of the characteristics of units prescribed by those regulations; and

                     (b)  keep that statement up-to-date.

[publication of description of characteristics of units]

(36)   Heading to clause 355, page 442 (line 3), at the end of the heading, add “ —matters specified by Minister ”.

[review of CPRS]

(37)   Page 442 (after line 22), after clause 355, insert:

355A   Special review of carbon pollution reduction scheme to be conducted by an expert advisory committee

Scope

             (1)  This section applies if:

                     (a)  after the commencement of this section, a new multilateral international agreement is signed on behalf of Australia; and

                     (b)  the agreement relates to climate change; and

                     (c)  either:

                              (i)  the agreement imposes obligations on Australia to take action to reduce greenhouse gas emissions; or

                             (ii)  the agreement is specified in an instrument made by the Minister for the purposes of this subparagraph.

Special review of carbon pollution reduction scheme

             (2)  As soon as practicable after the agreement is so signed, an expert advisory committee is to conduct a review of the implications of the agreement for the carbon pollution reduction scheme.

Note:          Expert advisory committees are established under section 357.

Consultation

             (3)  In conducting a review, an expert advisory committee must make provision for public consultation.

Relevant matters

             (4)  In conducting a review, an expert advisory committee must have regard to:

                     (a)  any policies of the Commonwealth Government notified to the expert advisory committee by the Minister; and

                     (b)  such other matters as the expert advisory committee considers relevant.

[review of CPRS]

(38)   Clause 356, page 442 (line 25), after “section 355”, insert “or 355A”.

[review of CPRS]

(39)   Page 453 (after line 11), after clause 374A, insert:

374B   Authority’s power to require further information

Applications

             (1)  If:

                     (a)  a person makes an application to the Authority under this Act; and

                     (b)  the Authority exercises a power, under another provision of this Act, to require the applicant to give the Authority further information in connection with the application;

the Authority:

                     (c)  must ensure that the further information is relevant to the matter to which the application relates; and

                     (d)  must ensure that the power is exercised in a reasonable way.

Requests

             (2)  If:

                     (a)  a person makes a request to the Authority under this Act; and

                     (b)  the Authority exercises a power, under another provision of this Act, to require the person to give the Authority further information in connection with the request;

the Authority:

                     (c)  must ensure that the further information is relevant to the matter to which the request relates; and

                     (d)  must ensure that the power is exercised in a reasonable way.

[further information]

(40)   Clause 375A, page 454 (line 2), omit “a State”, substitute “the State”.

[technical correction]