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Carbon Pollution Reduction Scheme Bill 2009 [No. 2]

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5916

2008-2009

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

Carbon Pollution Reduction Scheme Bill 2009 [No. 2]

 

 

(1)     Page 3 (after line 32), after clause 3, insert:

3A  Voluntary action

Object

             (1)  The object of this section is to establish a mechanism to take into account voluntary action on climate change which is outside the scope of the carbon pollution reduction scheme in such a way that:

                     (a)  there remains an incentive for such voluntary action; and

                     (b)  the impact of such voluntary action does not reduce the obligations of participants in the carbon pollution reduction scheme.

Advisory committee on voluntary action

             (2)  The Minister must establish an independent expert advisory committee with the following functions:

                     (a)  to estimate for each year the level of voluntary action on climate change;

                     (b)  to determine for each year, in writing, a voluntary action adjustment amount.

             (3)  In undertaking its work, the committee must:

                     (a)  consult broadly; and

                     (b)  call for, accept and consider submissions from organisations and individuals about voluntary action undertaken and proposed to be undertaken;

                     (c)  publish on its website, at least twice a year, reports on its activities and its methods of estimating and accounting for voluntary action.

             (4)  Sections 359 to 373 apply in relation to a committee established under this section.

Voluntary action adjustment amount

             (5)  The voluntary action adjustment amount for any year is an amount by which the committee determines the national scheme cap number for the following year must be reduced to account for voluntary action on climate change without reducing the obligations of participants in the carbon pollution reduction scheme.

             (6)  The regulations may prescribe any of the following:

                     (a)  factors the committee may take into account in determining the voluntary action adjustment amount for any year;

                     (b)  factors the committee must take into account in determining the voluntary action adjustment amount for any year;

                     (c)  a method of estimating the voluntary action adjustment amount for a year.

             (7)  A determination under paragraph (2)(b) is not a legislative instrument.

Interpretation

             (8)  In this section:

voluntary action on climate change means voluntary action taken by the Commonwealth, States and Territories, local government bodies, other entities and individuals to reduce or offset greenhouse gas emissions, which is not otherwise accounted for by the carbon pollution reduction scheme.

3B  Adjustment of national scheme cap number

                   Despite any other provision of the carbon pollution reduction scheme, if the committee established under section 3A determines an amount as the voluntary action adjustment amount for a year, the national scheme cap number for the following year is taken to be reduced by that amount.

[voluntary action]

(2)     Page 214 (after line 3), after Part 8, insert:

Part 8A Agriculture offset provider assistance program

Division 1 Introduction

173D   Aim

                   The aim of this Part is to enable a person in the agricultural sector to be eligible to receive Australian emissions units as an offset provider.

173E   Simplified outline

                   The following is a simplified outline of this Part:

•      The regulations may formulate a program, to be known as the agriculture offset provider assistance program, for the issue of free Australian emissions units in respect of prescribed offset activities by a person in the agricultural sector.

•      The agriculture offset provider program may:

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

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

Division 2 Formulation of the agriculture offset provider assistance program

173F   Agriculture offset provider assistance program

             (1)  The regulations must formulate a program (to be known as the agriculture offset provider assistance program ) for the issue of free Australian emissions units in respect of prescribed offset activities by a person in the agricultural sector in Australia.

             (2)  The agriculture offset provider assistance 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)  has a Registry account.

             (3)  The Minister must take all reasonable steps to ensure that regulations are made for the purposes of subsection (1) before 1 July 2010.

173G   Relinquishment requirement

             (1)  The agriculture offset provider assistance program may provide that, if:

                     (a)  a number of free Australian emissions units have been issued to a person in accordance with the program; and

                     (b)  any of the following subparagraphs applies:

                              (i)  a specified event happens;

                             (ii)  a specified circumstance comes into existence;

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

the person is required to relinquish a number of Australian emissions units ascertained in accordance with the program.

             (2)  Division 3 of Part 15, relating to compliance with relinquishment requirements, applies in relation to the agriculture offset provider assistance program as if a reference to the emissions-intensive trade-exposed assistance program was a reference to the agriculture offset provider assistance program.

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

173H   Reporting requirement

Scope

             (1)  This section applies to a person if free Australian emissions units have been issued to the person in accordance with the agriculture offset provider assistance program.

Requirement

             (2)  The agriculture offset provider assistance program may make provision for and in relation to requiring the person to give one or more written reports to the Authority.

173I  Record-keeping requirement

Scope

             (1)  This section applies to a person if free Australian emissions units have been issued to the person in accordance with the agriculture offset provider assistance program.

Requirement

             (2)  The agriculture offset provider assistance 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.

173J   Other matters

             (1)  The agriculture offset provider assistance 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;

                     (e)  the method of calculating the number of free Australian emissions units to be issued to a person in accordance with the program.

             (2)  The agriculture offset provider assistance program may provide that an application for free Australian emissions units must be accompanied by a prescribed report.

             (3)  The agriculture offset provider assistance program may provide for verification by statutory declaration of statements in applications for free Australian emissions units.

173K   Ancillary or incidental provisions

                   The agriculture offset provider assistance program may contain ancillary or incidental provisions.

Division 3 Compliance with reporting and record-keeping requirements under the agriculture offset provider assistance program

173L   Compliance with reporting and record-keeping requirements

Reporting requirements

             (1)  If a person is subject to a requirement under the agriculture offset provider assistance 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 agriculture offset provider assistance 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 effect 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.

[ agriculture offset provider assistance program ]

(3)     Page 214 (after line 3), after Part 8, insert:

Part 8B Emerging technologies offset program

Division 1 Introduction

173M   Aim

                   The aim of this Part is to enable entities to receive Australian emissions units in connection with the use of emerging technologies.

173N   Simplified outline

                   The following is a simplified outline of this Part:

•      The regulations must formulate a program, to be known as the emerging technologies offset program, for the issue of free Australian emissions units in respect of offset activities connected with the use of emerging technologies.

•      The program may:

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

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

Division 2 Formulation of the emerging technologies offset program

173O   Emerging technologies offset program

             (1)  The regulations must formulate a program (to be known as the emerging technologies offset program ) for the issue of free Australian emissions units in respect of offset activities that:

                     (a)  are connected with the use of technologies that, under the program, are taken to be emerging technologies; and

                     (b)  are, or are to be, carried on in Australian during an eligible financial year specified in the program.

             (2)  The emerging technologies offset 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)  has a Registry account.

             (3)  Free Australian emission units must not be issued to a person under the emerging technologies offset program in relation to activities in respect of which free Australian emissions units have been issued under any other Part of the carbon pollution reduction scheme.

             (4)  The Minister must take all reasonable steps to ensure that regulations are made for the purposes of subsection (1) before 1 July 2010.

173P  Emerging technologies

             (1)  For the purposes of the emerging technologies offset program, emerging technology includes the following:

                     (a)  landfill waste gas capture;

                     (b)  algal carbon capture and sequestration;

                     (c)  plantstone carbon sequestration;

                     (d)  soil carbon sequestration;

                     (e)  reforestation for CO 2 transfer;

                      (f)  ocean nourishment technology;

                     (g)  land management and soil carbon capture;

                     (h)  biogas production;

                      (i)  biomass conversion;

                      (j)  a technology prescribed by the regulations as an emerging technology.

             (2)  A person may apply to the Authority, in a form prescribed by the regulations, to have a technology recognised as an emerging technology.

             (3)  If a person applies to have a technology recognised as an emerging technology, and the Authority is satisfied that the technology is not prescribed as an emerging technology, then the Authority must either:

                     (a)  recommend to the Minister that the technology be prescribed as an emerging technology; or

                     (b)  do both of the following:

                              (i)  recommend to the Minister that the technology not be prescribed as an emerging technology; and

                             (ii)  publish on its website its reasons for not recommending that the technology be prescribed as an emerging technology.

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

             (5)  If the Authority recommends to the Minister that the technology be prescribed as an emerging technology, the Minister must take all reasonable steps to ensure that regulations are made to prescribe the technology as an emerging technology.

173Q   Relinquishment requirement

             (1)  The emerging technologies offset program may provide that, if:

                     (a)  a number of free Australian emissions units have been issued to a person in accordance with the program; and

                     (b)  any of the following subparagraphs applies:

                              (i)  a specified event happens;

                             (ii)  a specified circumstance comes into existence;

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

the person is required to relinquish a number of Australian emissions units ascertained in accordance with the program.

             (2)  Division 3 of Part 15, relating to compliance with relinquishment requirements, applies in relation to the emerging technologies offset program as if a reference to the emissions-intensive trade-exposed assistance program was a reference to the emerging technologies offset program.

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

173R   Reporting requirement

Scope

             (1)  This section applies to a person if free Australian emissions units have been issued to the person in accordance with the emerging technologies offset program.

Requirement

             (2)  The emerging technologies offset program may make provision for and in relation to requiring the person to give one or more written reports to the Authority.

173S  Record-keeping requirement

Scope

             (1)  This section applies to a person if free Australian emissions units have been issued to the person in accordance with the emerging technologies offset program.

Requirement

             (2)  The emerging technologies offset 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.

173T   Other matters

             (1)  The emerging technologies offset 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;

                     (e)  the method of calculating the number of free Australian emissions units to be issued to a person in accordance with the program.

             (2)  The emerging technologies offset program may provide that an application for free Australian emissions units must be accompanied by a prescribed report.

             (3)  The emerging technologies offset program may provide for verification by statutory declaration of statements in applications for free Australian emissions units.

173U   Ancillary or incidental provisions

                   The emerging technologies offset program may contain ancillary or incidental provisions.

Division 3 Compliance with reporting and record-keeping requirements

173V   Compliance with reporting and record-keeping requirements

Reporting requirements

             (1)  If a person is subject to a requirement under the emerging technologies offset 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 emerging technologies offset 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 effect 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.

[ emerging technology offset program ]