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Renewable Energy (Electricity) Amendment Bill 2009

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2008-2009

 

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

RENEWABLE ENERGY (ELECTRICITY) AMENDMENT BILL 2009

 

 

 

SUPPLEMENTARY EXPLANATORY MEMORANDUM

 

 

Amendments and

New Clauses to be moved on Behalf of the Government

 

 

(Circulated by authority of the Minister for Climate Change and Water,

Senator the Honourable Penny Wong)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RENEWABLE ENERGY (ELECTRICITY) AMENDMENT BILL 2009

 

OUTLINE

 

This amendment will allow partial exemptions under the renewable energy target (RET) scheme to apply to activities prescribed by regulation.

 

The Renewable Energy (Electricity) Amendment Bill 2009 currently provides partial exemptions in respect of electricity used in undertaking emissions-intensive trade-exposed (EITE) activities as defined under the EITE assistance program under the CPRS legislation.  Partial exemptions from the RET liability would not commence until section 3 of the Carbon Pollution Reduction Scheme Act 2009 commences.

 

The policy rationale for providing assistance for all entities undertaking EITE activities is the combined cost impact of the RET and CPRS on trade-exposed industries.

 

This amendment will allow partial exemptions to be provided to activities as prescribed in the RET scheme regulations. It is the Government’s policy intent that, in the absence of legislation implementing a carbon price, assistance under the RET is targeted at those EITE activities that are highly electricity-intensive and therefore face a high cost impact from the RET alone.

 

Activities eligible for interim RET assistance will be a sub-set of EITE activities that have been assessed as having an electricity intensity above a threshold of 3,000 megawatt-hours (MWh) per $ million revenue (or $9,000 MWh per $ million value-added).  The Government will undertake a formal data collection process to assess eligible activities.  Eligible activities are likely to include aluminium smelting, silicon production and newsprint manufacturing.

 

When the CPRS legislation and enabling regulations come into force, partial exemptions will apply in respect of EITE activities as defined under the EITE assistance program.

 

Financial impact statement

 

This amendment will not have a financial impact on the Commonwealth. 

 



 

RENEWABLE ENeRGY (electricity) AMENDMENT BILL 2009

 

Notes on clauses

Clause 2 - Commencement

1.       This clause inserts an amendment to the commencement date for Schedule 2 of the Bill. The amendment provides that Schedule 2 is to commence at the same time as Schedule 1, that is, on the day on which the Act receives Royal Assent.

 

 

SCHEDULE 2 - PARTIAL EXEMPTIONS FOR LIABILITY TO CHARGE

 

Item 2 - Subsection 5(1)

 

2.       This item amends the definition of ‘emissions-intensive trade-exposed activity’.

 

The amended definition provides that if regulations are made for the purpose of subsection 167(1) of the Carbon Pollution Reduction Scheme Act 2009 , an emissions-intensive trade-exposed activity is taken to be an emissions-intensive trade-exposed activity under the emissions-intensive trade-exposed assistance program.

 

However, if no regulations are made for the purpose of subsection 167(1) of the Carbon Pollution Reduction Scheme Act 2009, the meaning of emissions-intensive trade-exposed activity for the purpose of the Renewable Energy Target scheme will be as prescribed in the regulations.

 

Item 22 - Transitional regulations

 

3.       This item inserts provisions to empower the making of transitional regulations relating to the transition of the definition of ‘emissions-intensive trade-exposed activity’ from that definition prescribed in the regulations, to the definition under the emissions-intensive trade-exposed assistance program under the Carbon Pollution Reduction Scheme Act 2009 .