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Clean Energy Bill 2011

Part 2 Carbon pollution cap

   

13   Simplified outline

                   The following is a simplified outline of this Part:

•      The regulations may declare that:

               (a)     a quantity of greenhouse gas that has a carbon dioxide equivalence of a specified number of tonnes is the carbon pollution cap for a flexible charge year; and

              (b)     that number is the carbon pollution cap number for that flexible charge year.

Note:          The carbon pollution cap limits the sum of:

(a)    the total number of auctioned carbon units; and

(b)    the total number of free carbon units issued in accordance with the Jobs and Competitiveness Program; and

(c)    the total number of free carbon units issued in accordance with Part 8 (coal-fired electricity generation).

14   Carbon pollution cap

Carbon pollution cap

             (1)  The regulations may declare that:

                     (a)  a quantity of greenhouse gas that has a carbon dioxide equivalence of a specified number of tonnes is the carbon pollution cap for a specified flexible charge year; and

                     (b)  that number is the carbon pollution cap number for that flexible charge year.

Regulations

             (2)  In making a recommendation to the Governor-General about regulations to be made for the purposes of this section, the Minister:

                     (a)  must have regard to Australia’s international obligations under international climate change agreements; and

                     (b)  must have regard to the most recent report that:

                              (i)  was given to the Minister by the Climate Change Authority under section 292; and

                             (ii)  dealt with carbon pollution caps and carbon budgets; and

                     (c)  may have regard to the following matters:

                              (i)  undertakings relating to the reduction of greenhouse gas emissions that Australia has given under international climate change agreements;

                             (ii)  Australia’s medium-term and long-term targets for reducing net greenhouse gas emissions;

                            (iii)  progress towards reduction of greenhouse gas emissions;

                            (iv)  global action to reduce greenhouse gas emissions;

                             (v)  estimates of the global greenhouse gas emissions budget;

                            (vi)  the economic and social implications associated with various levels of carbon pollution caps;

                           (vii)  voluntary action to reduce Australia’s greenhouse gas emissions;

                          (viii)  estimates of greenhouse gas emissions that are not covered by this Act;

                            (ix)  estimates of the number of Australian carbon credit units that are likely to be issued;

                             (x)  the extent (if any) of non-compliance with this Act and the associated provisions;

                            (xi)  the extent (if any) to which liable entities have failed to surrender sufficient units to avoid liability for unit shortfall charge;

                           (xii)  any acquisitions, or proposed acquisitions, by the Commonwealth of eligible international emissions units;

                          (xiii)  such other matters (if any) as the Minister considers relevant.

15   Disallowance of regulations

Scope

             (1)  This section applies to regulations made for the purposes of section 14.

Disallowance

             (2)  Either House of the Parliament may, following a motion upon notice, pass a resolution disallowing the regulations. For the resolution to be effective:

                     (a)  the notice must be given in that House within 15 sitting days of that House after the copy of the regulations was tabled in the House under section 38 of the Legislative Instruments Act 2003 ; and

                     (b)  the resolution must be passed, in pursuance of the motion, within 15 sitting days of that House after the giving of that notice.

             (3)  If neither House passes such a resolution, the regulations take effect on the day immediately after the last day upon which such a resolution could have been passed if it were assumed that notice of a motion to disallow the regulations was given in each House on the last day of the 15 sitting day period of that House mentioned in paragraph (2)(a).

             (4)  Section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the regulations.

Note 1:       The 15 sitting day notice period mentioned in paragraph (2)(a) of this section is the same as the 15 sitting day notice period mentioned in paragraph 42(1)(a) of the Legislative Instruments Act 2003 .

Note 2:       The 15 sitting day disallowance period mentioned in paragraph (2)(b) of this section is the same as the 15 sitting day disallowance period mentioned in paragraph 42(1)(b) of the Legislative Instruments Act 2003 .

16   When regulations must be tabled

             (1)  The Minister must take all reasonable steps to ensure that a set of regulations that:

                     (a)  declares the carbon pollution cap, and the carbon pollution cap number, for the flexible charge year beginning on 1 July 2015; and

                     (b)  declares the carbon pollution cap, and the carbon pollution cap number, for each of the next 4 flexible charge years;

is tabled in each House of the Parliament under section 38 of the Legislative Instruments Act 2003 not later than 31 May 2014.

             (2)  A set of regulations covered by subsection (1) must not be made, or tabled in a House of the Parliament, after 31 May 2014.

             (3)  If, at the start of the month of May that is 14 months before the start of a particular flexible charge year beginning on or after 1 July 2016, no regulations made for the purposes of section 14 have previously taken effect, the Minister must take all reasonable steps to ensure that a set of regulations that:

                     (a)  declares the carbon pollution cap, and the carbon pollution cap number, for the flexible charge year; and

                     (b)  declares the carbon pollution cap, and the carbon pollution cap number, for each of the next 4 flexible charge years;

is tabled in each House of the Parliament under section 38 of the Legislative Instruments Act 2003 not later than the end of that May.

             (4)  A set of regulations covered by subsection (3) must not be made, or tabled in a House of the Parliament, after the end of the May mentioned in that subsection.

             (5)  If a set of regulations that:

                     (a)  declares the carbon pollution cap, and the carbon pollution cap number, for a particular flexible charge year; and

                     (b)  declares the carbon pollution cap, and the carbon pollution cap number, for each of the next 4 flexible charge years;

has taken effect, the Minister must take all reasonable steps to ensure that:

                     (c)  regulations declaring the carbon pollution cap, and the carbon pollution cap number, for the flexible charge year (the relevant flexible charge year ) next following the last flexible charge year covered by paragraph (b) are tabled in each House of the Parliament under section 38 of the Legislative Instruments Act 2003 at least 5 years before the end of the relevant flexible charge year; and

                     (d)  regulations declaring the carbon pollution cap, and the carbon pollution cap number, for a flexible charge year that is later than the relevant flexible charge year are tabled in each House of the Parliament under section 38 of the Legislative Instruments Act 2003 at least 5 years before the end of the later flexible charge year.

             (6)  Regulations covered by paragraph (5)(c) must not be made, or tabled in a House of the Parliament, after the start of the 5-year period mentioned in that paragraph.

             (7)  Regulations covered by paragraph (5)(d) must not be made, or tabled in a House of the Parliament, after the start of the 5-year period mentioned in that paragraph.

             (8)  If:

                     (a)  either:

                              (i)  a set of regulations covered by subsection (1) or (3) is made; or

                             (ii)  regulations covered by paragraph (5)(c) or (d) are made; and

                     (b)  on a particular day (the tabling day ), a copy of the regulations is tabled in a House of the Parliament under section 38 of the Legislative Instruments Act 2003 ;

then, on or as soon as practicable after the tabling day, the Minister must cause to be tabled in that House a written statement setting out the Minister’s reasons for making the recommendation to the Governor-General about those regulations.

17   Default carbon pollution cap for 2015-16

Scope

             (1)  This section applies if there are no regulations in effect that declare the carbon pollution cap, and the carbon pollution cap number, for the flexible charge year beginning on 1 July 2015.

Carbon pollution cap

             (2)  The carbon pollution cap for the flexible charge year is a quantity of greenhouse gas that has a carbon dioxide equivalence of a number of tonnes equal to the number worked out using the following formula:

where:

total emissions numbers for the eligible financial year beginning on 1 July 2012 means the estimate entered in the Information Database under section 186 in relation to the eligible financial year beginning on 1 July 2012.

Carbon pollution cap number

             (3)  The number worked out using that formula is the carbon pollution cap number for the flexible charge year.

18   Default carbon pollution cap for a later flexible charge year

Scope

             (1)  This section applies if there are no regulations in effect that declare the carbon pollution cap, and the carbon pollution cap number, for a particular flexible charge year beginning on or after 1 July 2016.

Carbon pollution cap

             (2)  The carbon pollution cap for the flexible charge year is a quantity of greenhouse gas that has a carbon dioxide equivalence of a number of tonnes equal to the number worked out using the following formula:

Carbon pollution cap number

             (3)  The number worked out using that formula is the carbon pollution cap number for the flexible charge year.