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Tuesday, 11 October 2011
Page: 11439


Mr COMBET (CharltonMinister for Climate Change and Energy Efficiency) (17:39): I present the supplementary explanatory memorandum to the Clean Energy Bill 2011. I move amendments (1) to (48) to the Clean Energy Bill 2011:

(1) Clause 5, page 12 (line 24), omit "covered emissions and legacy emissions", substitute "covered emissions, legacy emissions and exempt landfill emissions".

(2) Clause 5, page 14 (after line 22), after the definition of executive officer, insert:

exempt landfill emissions, in relation to a landfill facility, has the meaning given by section 32A.

(3) Clause 5, page 20 (line 26), after "sections", insert "11AA, 11AB,".

(4) Clause 20, page 38 (line 14), omit "supply", substitute "use that resulted in that combustion".

(5) Clause 20, page 38 (line 31), omit "supply", substitute "use that resulted in that combustion".

(6) Clause 21, page 41 (line 12), omit "supply", substitute "use that resulted in that combustion".

(7) Clause 21, page 41 (line 29), omit "supply", substitute "use that resulted in that combustion".

(8) Clause 22, page 44 (line 4), omit "supply", substitute "use that resulted in that combustion".

(9) Clause 22, page 44 (line 20), omit "supply", substitute "use that resulted in that combustion".

(10) Clause 23, page 45 (lines 25 and 26), omit "covered emissions and legacy emissions", substitute "covered emissions, legacy emissions and exempt landfill emissions".

(11) Clause 23, page 46 (lines 8 and 9), omit "covered emissions and legacy emissions", substitute "covered emissions, legacy emissions and exempt landfill emissions".

(12) Clause 23, page 47 (line 10), omit "supply", substitute "use that resulted in that combustion".

(13) Clause 23, page 47 (line 27), omit "supply", substitute "use that resulted in that combustion".

(14) Clause 24, page 49 (lines 26 and 27), omit "covered emissions and legacy emissions", substitute "covered emissions, legacy emissions and exempt landfill emissions".

(15) Clause 24, page 50 (lines 8 and 9), omit "covered emissions and legacy emissions", substitute "covered emissions, legacy emissions and exempt landfill emissions".

(16) Clause 24, page 51 (line 2), omit "supply", substitute "use that resulted in that combustion".

(17) Clause 24, page 51 (line 19), omit "supply", substitute "use that resulted in that combustion".

(18) Clause 25, page 53 (lines 23 and 24), omit "covered emissions and legacy emissions", substitute "covered emissions, legacy emissions and exempt landfill emissions".

(19) Clause 25, page 54 (lines 5 and 6), omit "covered emissions and legacy emissions", substitute "covered emissions, legacy emissions and exempt landfill emissions".

(20) Clause 25, page 54 (line 22), omit "supply", substitute "use that resulted in that combustion".

(21) Clause 25, page 55 (line 7), omit "supply", substitute "use that resulted in that combustion".

(22) Clause 30, page 63 (after line 4), after subclause (9), insert:

Exclusion of exempt landfill emissions from landfill facilities

(9A) For the purposes of this Act, a covered emission from the operation of a landfill facility does not include exempt landfill emissions from the operation of the facility.

(23) Heading to Subdivision F, page 64 (line 1), omit "Legacy emissions", substitute "Emissions".

(24) Clause 32, page 64 (lines 9 and 10), omit "the regulations", substitute "a determination under subsection 10(3) of the National Greenhouse and Energy Reporting Act 2007".

(25) Page 64 (after line 12), at the end of Subdivision F, add:

32A Exempt landfill emissions

   For the purposes of this Act, if:

(a) a person is a liable entity for an eligible financial year (the relevant eligible financial year) under a particular provision of Subdivision B of Division 2 of Part 3 in so far as that provision applies to a particular landfill facility; and

(b) the landfill facility's threshold number for the relevant eligible financial year is 10,000 for the purposes of that provision; and

(c) the following conditions are satisfied in relation to each earlier eligible financial year at any time during which the landfill facility was in existence:

   (i) no person was a liable entity for the earlier eligible financial year under Subdivision B of Division 2 of Part 3 in so far as that Subdivision applies to the landfill facility;

   (ii) the landfill facility's threshold number for the earlier eligible financial year was 25,000 for the purposes of a provision of that Subdivision; and

(d) an amount of greenhouse gas was emitted from the operation of the landfill facility during:

   (i) the relevant eligible financial year; or

   (ii) a later eligible financial year; and

(e) waste was accepted by the landfill facility during the period:

   (i) beginning on 1 July 2012; and

   (ii) ending immediately before the start of the relevant eligible financial year;

so much of the amount mentioned in paragraph (d) as is, under a determination under subsection 10(3) of the National Greenhouse and Energy Reporting Act 2007, taken to be attributable to waste accepted by the facility during the period mentioned in paragraph (e) is an exempt landfill emission from the operation of the landfill facility.

(26) Clause 33, page 65 (line 10), omit "supply", substitute "use".

(27) Clause 35, page 66 (after line 17), after paragraph (1)(a), insert:

(aa) it may reasonably be expected that the natural gas is wholly or partly for use by the OTN holder; and

(28) Clause 35, page 66 (line 19), omit "supply", substitute "use".

(29) Clause 35, page 68 (lines 33 to 35), omit paragraph (7)(c).

(30) Clause 36, page 70 (after line 2), after paragraph (1)(a), insert:

(aa) it may reasonably be expected that the natural gas is wholly or partly for use by the OTN holder; and

(31) Clause 36, page 70 (line 6), omit "supply", substitute "use".

(32) Page 70 (after line 21), at the end of Division 3, add:

36A Extended meaning of use

   For the purposes of this Division, if:

(a) a person (the first person) provides an amount of natural gas for use by another person; and

(b) the provision of the natural gas does not involve a supply of the natural gas;

any use of the natural gas by the other person is taken to be use by the first person.

(33) Clause 55B, page 83 (line 12), omit "supply", substitute "use".

(34) Clause 56, page 84 (after line 3), after paragraph (1)(a), insert:

(aa) it may reasonably be expected that the natural gas is wholly or partly for use by the recipient; and

(35) Clause 56, page 84 (line 5), omit "supply", substitute "use".

(36) Clause 56, page 84 (lines 7 and 8), omit paragraph (1)(d).

(37) Clause 56, page 85 (line 7), omit "the facility", substitute "an eligible facility of the applicant".

(38) Clause 56, page 85 (after line 12), after subclause (6), insert:

(6A) For the purposes of subsection (6), a facility is an eligible facility of the applicant if:

(a) the facility is under the operational control of the applicant; or

(b) the following conditions are satisfied:

   (i) the facility is under the operational control of another person;

   (ii) the applicant provides natural gas to the other person for use in the operation of the facility;

   (iii) the provision of the natural gas does not involve a supply of the natural gas.

(39) Clause 57, page 85 (after line 19), after paragraph (1)(a), insert:

(aa) it may reasonably be expected that the natural gas is wholly or partly for use by the recipient; and

(40) Clause 57, page 85 (line 21), omit "supply", substitute "use".

(41) Clause 57, page 85 (lines 23 and 24), omit paragraph (1)(d), substitute:

(d) it is intended that the whole or a part of that amount will be used as a feedstock;

(42) Clause 58, page 86 (after line 14), after paragraph (1)(a), insert:

(aa) it may reasonably be expected that the natural gas is wholly or partly for use by the recipient; and

(43) Clause 58, page 86 (line 16), omit "supply", substitute "use".

(44) Clause 58, page 86 (lines 18 to 20), omit paragraph (1)(d), substitute:

(d) the natural gas is to be used, in the course of carrying on a business, to manufacture compressed natural gas, liquefied natural gas or liquid petroleum gas;

(45) Page 87 (after line 4), at the end of Subdivision C, add:

58A Extended meaning of use

   For the purposes of this Subdivision, if:

(a) a person (the first person) provides an amount of natural gas for use by another person; and

(b) the provision of the natural gas does not involve a supply of the natural gas;

any use of the natural gas by the other person is taken to be use by the first person.

(46) Clause 92A, page 121 (after line 25), after subclause (4), insert:

(4A) For the purposes of this section, in determining whether an entity is entitled to a fuel tax credit in respect of the acquisition, manufacture or import of an amount of taxable fuel, disregard section 41-30 of the Fuel Tax Act 2006.

(47) Clause 125, page 163 (lines 26 to 28), omit paragraph (7)(b), substitute:

(b) the number of eligible Australian carbon credit units exceeds:

   (i) if at least 50% of the total of the interim emissions numbers of the person for the relevant eligible financial year is attributable to, or to estimates of, provisional emissions numbers under Subdivision B of Division 2 of Part 3 (which deals with landfill facilities)—the total of the interim emissions numbers of the person for the relevant eligible financial year; or

   (ii) otherwise—5% of the total of the interim emissions numbers of the person for the relevant eligible financial year;

(48) Clause 128, page 169 (lines 12 and 13), omit paragraph (7)(b), substitute:

(b) the number of eligible Australian carbon credit units exceeds:

   (i) if at least 50% of the person's emissions number for the relevant eligible financial year is attributable to provisional emissions numbers under Subdivision B of Division 2 of Part 3 (which deals with landfill facilities)—the person's emissions number for the relevant eligible financial year; or

   (ii) otherwise—the number worked out using the formula in subsection (8);

Amendments (1) to(10), (11), (14), (15), (18), (19) and (22) to (25) that appear on sheet 267 deal with issues associated with landfill waste. The Clean Energy Bill provides that landfill facilities with emissions of at least 10,000 tonnes but less than 25,000 tonnes of carbon dioxide equivalents will be covered by the carbon-pricing mechanism if they are within a prescribed distance of a designated large landfill facility with emissions of at least 25,000 tonnes. This provision was intended to address the risk of waste being diverted from large landfills to smaller neighbouring landfills. The government has decided to set the initial prescribed distance at zero so that operators of small landfills will not be liable on 1 July 2012 and for at least the first three years of the scheme. This will provide time to gather evidence rather than projections of waste diversion to smaller landfills and to have the prescribed distance rule reviewed by the Climate Change Authority no later than 2015-16. Any future increases in the prescribed distance could bring additional small landfills into the mechanism for the first time. It is also possible that small landfills will become liable for the first time because another landfill within the prescribed distance will start to pass the 25,000-tonne threshold.

The amendments I have moved will reduce the regulatory uncertainty for landfill operators regarding the future operation of the prescribed distance rule. These amendments will ensure that, if the prescribed distance is increased following the review, small landfills brought into the carbon price mechanism will not be liable for emissions from waste deposited retrospectively. The small landfill will only be liable for emissions from the waste that is deposited in the financial year that coverage of the landfill commences and subsequent years. They will not face liabilities as a result of these factors beyond their control.

The amendments also provide for legacy and exempt landfill emissions to be measured using the NGER determination under section 10 (3) of the National Greenhouse and Energy Reporting Act rather than regulations. Amendment (3) is a minor technical amendment which is consequential on the amendments in (1), (3) to (6) and (9) of sheet 257. Those amendments deal with situations where no person has clear operational control of a facility. Amendments (4) to (9), (12), (13), (16), (17), (20), (21) and (26) to (45) are technical amendments to ensure that natural gas liability works the same way whether or not the end user of the gas owned the gas. These amendments respond to comments made by some stakeholders during the inquiry of the Joint Select Committee on Australia's Clean Energy Future Legislation. In some cases, gas is provided for use without transfer of ownership of the gas. For instance, the owner of a facility might buy gas for the facility and make it available for use at the facility without transferring ownership in the gas to the contracted operator of the facility.

Amendment (46) on sheet 267 is a technical amendment to the opt-in scheme to ensure that aviation fuel users can use the opt-in scheme as intended. The amendment seeks to clarify that fuel users may opt into the carbon-pricing mechanism, even if the user or another entity becomes entitled to a fuel tax credit after opting in. The amendment will ensure that the opt-in scheme operates as intended and will remove any doubt as to the validity of aviation fuel users. Amendments (47) and (48) on sheet 267 will allow local councils and other landfill operators to discharge a larger proportion of their emissions using eligible CFI credits than currently permitted during the fixed price years of the carbon price mechanism. The surrender limit will be raised by these amendments from five per cent to 100 per cent of an operator's liability if the majority of liability is attributable to landfill emissions. The amendments are restricted to emitters in the landfill sector because they are in the unusual position of being able to generate CFI credits by implementing projects to capture legacy emissions at the same time as they have to surrender emissions units to discharge their liabilities. The added flexibility under these amendments will reduce the compliance burden on local councils and commercial landfill operators. Mr Deputy Speaker, if it is convenient to the House, and I understand it may be so with the Leader of the Opposition, it may be useful for me to move the remaining government amendments together.

The DEPUTY SPEAKER ( Mr S Sidebottom ): Permission is granted.

Mr COMBET: I thank the Leader of the Opposition for that courtesy. I present the supplementary explanatory memorandum for the Clean Energy (Consequential Amendments) Bill 2011, the Clean Energy Regulator Bill 2011 and the Clean Energy (Household Assistance Amendments) Bill 2011 and I move government amendments (1) to (13) to the Clean Energy (Consequential Amendments) Bill 2011, government amendments (1) to (22) to the Clean Energy (Household Assistance Amendments) Bill 2011 and the government amendment (1) to the Clean Energy Regulator Bill 2011:

(1) Schedule 1, item 307, page 58 (line 17), after "11A,", insert "11AA, 11AB,".

(2) Schedule 1, page 65 (after line 12), after item 339, insert:

339AA At the end of section 10

Add:

(4) A determination under subsection (3) may also deal with matters required or permitted by section 32 or 32A of the Clean Energy Act 2011 to be dealt with by such a determination.

(3) Schedule 1, item 348, page 66 (line 8), after "11A,", insert "11AA, 11AB,".

(4) Schedule 1, item 349, page 66 (after line 27), after section 11A, insert:

11AA Operational control during part of fixed charge year—nominated person

Scope

(1) This section applies if the following conditions are satisfied in relation to a period that is included in, or consists of, the first 9 months of a fixed charge year:

(a) 2 or more persons could satisfy paragraph 11(1)(a) in relation to a facility throughout the period;

(b) no particular person has the greatest authority to introduce and implement the policies mentioned in subparagraphs 11(1)(a)(i) and (iii) in relation to the facility throughout the period;

(c) no declaration under section 55 or 55A applies in relation to the facility at any time during the period;

(d) as at the start of 1 April in the fixed charge year, it may reasonably be expected that a person would have had an interim emissions number for the fixed charge year if it were assumed that:

(i) the person had operational control over the facility throughout the period; and

(ii) none of the persons mentioned in paragraph (a) of this subsection had operational control over the facility throughout the period.

Nomination

(2) The persons mentioned in paragraph (1)(a) must, before the end of 30 April in the fixed charge year, jointly nominate one of them to be the nominated person in relation to the facility for the period.

Civil penalty: 1,000 penalty units.

(3) A nomination must:

(a) be in writing; and

(b) be in a form approved by the Regulator; and

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

(4) If:

(a) any of those persons is a foreign person; and

(b) any of those persons is not a foreign person;

a foreign person cannot be nominated.

Operational control—nomination made

(5) If a nomination is made and the facility is a facility of a joint venture, the nominated person is taken, for the purposes of this Act, to have operational control over the facility throughout the period.

(6) If a nomination is made and the facility is not a facility of a joint venture, the nominated person is taken, for the purposes of this Act and the Clean Energy Act 2011, to have operational control over the facility throughout the period.

Operational control—nomination not made

(7) If no nomination is made and the facility is a facility of a joint venture, each of the persons mentioned in paragraph (1)(a) is taken, for the purposes of this Act, to have operational control over the facility throughout the period.

(8) If no nomination is made and the facility is not a facility of a joint venture:

(a) each of the persons mentioned in paragraph (1)(a) is taken, for the purposes of this Act and the Clean Energy Act 2011, to have operational control over the facility throughout the period; and

(b) if there is a provisional emissions number of such a person for the fixed charge year in relation to greenhouse gases emitted from the operation of the facility during the period—for the purposes of this Act and the Clean Energy Act 2011, that provisional emissions number is taken to be the number worked out using the formula set out in subsection (9).

(9) The formula is:

Unadjusted provisional emissions number

Total Number of persons mentioned in

paragraph (1)(a)

where:

unadjusted provisional emissions number means the number that, apart from paragraph (8)(b), would be the provisional emissions number of the person for the fixed charge year in relation to greenhouse gases emitted from the operation of the facility during the period.

Exception

(10) A person is not required to comply with subsection (2) if the question of who has operational control of the facility is not relevant (whether directly or indirectly) to a requirement under:

(a) this Act; or

(b) the Clean Energy Act 2011.

11AB Operational control during part of fixed charge year—trust with multiple trustees

Scope

(1) This section applies if the following conditions are satisfied in relation to a period that is included in, or consists of, the first 9 months of a fixed charge year:

(a) because of section 11, 11A or 11AA, a trust has operational control over a facility throughout the period;

(b) throughout the period, there are 2 or more trustees of the trust;

(c) no declaration under section 55 or 55A applies in relation to the facility at any time during the period;

(d) as at the start of 1 April in the fixed charge year, it may reasonably be expected that a person would have had an interim emissions number for the fixed charge year if it were assumed that:

(i) the person had operational control over the facility throughout the period; and

(ii) the trust did not have operational control over the facility throughout the period.

Nomination

(2) The trustees must, before the end of 30 April in the fixed charge year, jointly nominate one of them to be the nominated trustee in relation to the facility for the period.

Civil penalty: 1,000 penalty units.

(3) A nomination must:

(a) be in writing; and

(b) be in a form approved by the Regulator; and

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

(4) If:

(a) any of those trustees is a foreign person; and

(b) any of those trustees is not a foreign person;

a foreign person cannot be nominated.

Operational control

(5) If a nomination is made, the nominated trustee is taken, for the purposes of this Act and the Clean Energy Act 2011, to have operational control over the facility throughout the period.

(6) If no nomination is made:

(a) each of those trustees is taken, for the purposes of this Act and the Clean Energy Act 2011, to have operational control over the facility throughout the period; and

(b) if there is a provisional emissions number of such a trustee for the fixed charge year in relation to greenhouse gases emitted from the operation of the facility during the period—for the purposes of this Act and the Clean Energy Act 2011, that provisional emissions number is taken to be the number worked out using the formula set out in subsection (7).

(7) The formula is:

Unadjusted provisional emissions number

Total Number of trustees mentioned in

paragraph (1)(b)

where:

unadjusted provisional emissions number means the number that, apart from paragraph (6)(b), would be the provisional emissions number of the trustee for the fixed charge year in relation to greenhouse gases emitted from the operation of the facility during the period.

Exception

(8) A trustee is not required to comply with subsection (2) if the question of who has operational control of the facility is not relevant (whether directly or indirectly) to a requirement under:

(a) this Act; or

(b) the Clean Energy Act 2011.

(5) Schedule 1, item 349, page 67 (line 13), omit "period.", substitute "period;".

(6) Schedule 1, item 349, page 67 (after line 13), at the end of subsection 11B(1), add:

(d) if the period is included in a fixed charge year—section 11AA does not apply to the facility for the period.

(7) Schedule 1, item 349, page 68 (lines 16 to 24), omit paragraph 11B(8)(b), substitute:

(b) if there is a provisional emissions number of such a person for the eligible financial year in relation to greenhouse gases emitted from the operation of the facility during the period—for the purposes of this Act and the Clean Energy Act 2011, that provisional emissions number is taken to be the number worked out using the formula set out in subsection (9).

(8) Schedule 1, item 349, page 68 (lines 30 and 31), omit "or the controlling corporation, as the case may be,".

(9) Schedule 1, item 349, page 69 (line 17), omit "period.", substitute "period;".

(10) Schedule 1, item 349, page 69 (after line 17), at the end of subsection 11C(1), add:

(d) if the period is included in a fixed charge year—section 11AB does not apply to the facility for the period.

(11) Schedule 3, item 1, page 174 (lines 12 and 13), omit subsection 11(2), substitute:

(2) The Regulator may refuse the application if the Regulator is satisfied that the applicant is not a fit and proper person.

(2A) For the purposes of subsection (2), in determining whether the applicant is a fit and proper person, the Regulator:

(a) must have regard to the matters specified in regulations made for the purposes of this subsection; and

(b) may have regard to such other matters (if any) as the Regulator considers relevant.

(12) Schedule 3, item 5, page 176 (lines 4 and 5), omit subsection 30A(5), substitute:

(5) The Regulator may, by written notice, suspend the registration of a registered person if the Regulator is satisfied that the registered person is not a fit and proper person.

(5A) For the purposes of subsection (5), in determining whether the registered person is a fit and proper person, the Regulator:

(a) must have regard to the matters specified in regulations made for the purposes of this subsection; and

(b) may have regard to such other matters (if any) as the Regulator considers relevant.

(13) Schedule 4, page 189 (after line 3), after item 25, insert:

25A After subsection 47(1)

Insert:

Effect of transmission

(1A) The transmission is of no force until the Administrator transfers the unit under subsection (7) or (8).

(1) Schedule 1, item 1, page 5 (after line 18), after paragraph 914(1)(b), insert:

(ba) the person is residing in Australia; and

(2) Schedule 1, item 1, page 5 (after line 26), after paragraph 914(2)(b), insert:

(ba) the person is residing in Australia; and

(3) Schedule 1, item 1, page 6 (line 4), omit "and (b)", substitute ", (b) and (ba)".

(4) Schedule 1, item 1, page 6 (after line 34), after paragraph 914A(1)(b), insert:

(ba) the person is residing in Australia; and

(5) Schedule 1, item 1, page 7 (after line 8), after paragraph 914A(2)(b), insert:

(ba) the person is residing in Australia; and

(6) Schedule 1, item 1, page 7 (after line 16), after paragraph 914A(3)(b), insert:

(ba) the person is residing in Australia; and

(7) Schedule 1, item 1, page 7 (line 22), omit "and (b)", substitute ", (b) and (ba)".

(8) Schedule 2, page 66 (after line 31), after item 15, insert:

15A At the end of section 62

Add:

(5) For the purposes of working out an individual's rate of family tax benefit, if the individual is an absent overseas recipient on a day (disregarding section 63A), then the following provisions do not apply in relation to that day:

(a) paragraph (cb) of step 1 of the method statement in clause 3 of Schedule 1;

(b) paragraph (e) of step 1 of the method statement in clause 25 of Schedule 1;

(c) paragraph 29(1)(c) of Schedule 1;

(d) paragraph (c) of step 1 of the method statement in subclause 29(2) of Schedule 1;

(e) paragraph 29A(2)(c) of Schedule 1.

(9) Schedule 2, page 66, after proposed item 15A, insert:

15B At the end of section 63

Add:

(5) For the purposes of working out an individual's rate of family tax benefit, if an FTB child of the individual is an absent overseas FTB child on a day (disregarding section 63A), then disregard that child in working out the amount applicable in relation to that day under the following provisions:

(a) paragraph (cb) of step 1 of the method statement in clause 3 of Schedule 1;

(b) paragraph (e) of step 1 of the method statement in clause 25 of Schedule 1;

(c) paragraph 29(1)(c) of Schedule 1;

(d) paragraph (c) of step 1 of the method statement in subclause 29(2) of Schedule 1;

(e) paragraph 29A(2)(c) of Schedule 1.

(10) Schedule 2, item 34, page 77 (line 13), omit "16", substitute "15A".

(11) Schedule 3, item 6, page 85 (after line 20), after paragraph 61A(1)(b), insert:

(ba) the person is residing in Australia; and

(12) Schedule 3, item 6, page 85 (after line 29), after paragraph 61A(2)(b), insert:

(ba) the person is residing in Australia; and

(13) Schedule 3, item 6, page 86 (line 4), omit "and (b)", substitute ", (b) and (ba)".

(14) Schedule 4, item 9, page 119 (after line 9), after paragraph 424A(1)(a), insert:

(aa) the person is residing in Australia on the test day; and

(15) Schedule 4, item 9, page 119 (after line 16), after paragraph 424A(2)(a), insert:

(aa) the person is residing in Australia on the test day; and

(16) Schedule 4, item 9, page 119 (line 19), after "met", insert ", the person is residing in Australia".

(17) Schedule 4, item 9, page 120 (after line 11), after paragraph 424B(1)(a), insert:

(aa) the person is residing in Australia on the test day; and

(18) Schedule 4, item 9, page 120 (after line 18), after paragraph 424B(2)(a), insert:

(aa) the person is residing in Australia on the test day; and

(19) Schedule 4, item 9, page 120 (line 21), after "met", insert ", the person is residing in Australia".

(20) Schedule 4, item 9, page 121 (after line 11), after paragraph 424C(1)(a), insert:

(aa) the person is residing in Australia on the test day; and

(21) Schedule 4, item 9, page 121 (after line 19), after paragraph 424C(2)(a), insert:

(aa) the person is residing in Australia on the test day; and

(22) Schedule 4, item 9, page 121 (line 22), after "met", insert ", the person is residing in Australia".

(1) Clause 49, page 26 (after line 23), after paragraph (1)(t), insert:

(ta) the Energy Security Council;

Sheet 257 deals with amendments to the Clean Energy (Consequential Amendments) Bill 2011. Items (1), (3) to (6), (9) and (10) of sheet 257 bring forward the deadline for nominating a person with operational control of a facility from 31 August to 30 April. The basic provisions deal with situations where no single person has operational control of a facility and a person must be nominated from those who have some operational control. The items correct an oversight which meant that nominations would have been required after the provisional surrender obligation on 15 June. The amendment I am moving will allow the person who is going to be liable for emissions from the facility to register by 1 May and meet their progressive surrender obligations on 15 June of each charge year.

Item (2) of sheet 257 clarifies that the measurement determination made under the National Greenhouse and Energy Reporting Act will be used to measure legacy emissions and exempt landfill emissions for the purposes of clauses 32 and 32A of the Clean Energy Bill. This is a technical amendment to ensure that all emissions from landfill facilities, including covered emissions, legacy emissions and exempt landfill emissions, are measured in accordance with a single consistent set of methods under the NGER Act.

Items (7) and (8) of sheet 257 correct an error in proposed section 11B of the NGER Act. They ensure that liability applies to liable entities as defined in the Clean Energy Bill 2011, instead of controlling corporations as a result of a nomination.

Items (11) and (12) of sheet 257 clarify the new provisions for refusing or suspending registration under the renewable energy target in light of the issues raised by the Senate Scrutiny of Bills Committee. In its current form the Clean Energy (Consequential Amendments) Bill includes an amendment that provides for the regulator to refuse or suspend the registration of persons under the renewable energy target legislation which enables them to create renewable energy certificates. This provision responds to stakeholder concerns around alleged unscrupulous conduct by agents selling certificates on behalf of owners and installers of small-scale renewable energy systems.

The government is moving a further amendment to clarify that the additional powers to refuse or suspend registration of an entity under the renewable energy legislation are to be constrained to situations where the regulator is satisfied that the entity is not a fit and proper person. Regulations will prescribe matters to be considered by the regulator in determining whether or not the applicant or registered entity is a fit and proper person.

Item (13) of sheet 257 provides that a transmission of Kyoto units by force of law is of no force until the units are registered in the account of the transferee. This amendment makes it clear that changes in title over Kyoto units must be effected through the Australian National Registry of Emissions Units so there is no ambiguity about legal ownership of units. There is similar provision for the transmission of carbon units, Australian carbon credit units and prescribed international units. This amendment ensures the same situation applies to Kyoto units.

Sheet 269 amends the Clean Energy Regulator Bill 2011 to allow information to be shared with the Energy Security Council. Sheet 238 amends the Clean Energy (Household Assistance Amendments) Bill 2011 to clarify in legislation the government's policy in relation to residency for household assistance. Items (1) to (21) address inconsistencies in the drafting process.