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Carbon Pollution Reduction Scheme Bill 2009

Part 8 Emissions-intensive trade-exposed assistance program

Division 1 Introduction

165   Aim and objects

             (1)  The aim of this Part is to recognise issues relating to the impact of the carbon pollution reduction scheme on the international competitiveness of activities that are:

                     (a)  identified as emissions-intensive trade-exposed activities; and

                     (b)  carried on in Australia.

             (2)  The objects of this Part are:

                     (a)  to enable the identification of activities as emissions-intensive trade-exposed activities; and

                     (b)  to reduce the incentives for such an activity to be located in, or re-located to, foreign countries; and

                     (c)  to provide transitional assistance in respect of such an activity if carried on in Australia;

until such assistance is no longer warranted, having regard to:

                     (d)  whether sufficient measures to reduce emissions of carbon dioxide and other greenhouse gases have been implemented in respect of markets:

                              (i)  that are outside Australia; and

                             (ii)  that are for goods produced as a result of such an activity (whether carried on in or outside Australia); and

                            (iii)  in which persons who carry on such an activity in Australia compete; or

                     (e)  whether foreign countries that are responsible for the substantial majority of the world’s emissions of carbon dioxide and other greenhouse gases have implemented sufficient measures to reduce those emissions; or

                      (f)  any other relevant matters.

166   Simplified outline

                   The following is a simplified outline of this Part:

•      The regulations may formulate a program, to be known as the emissions-intensive trade-exposed assistance program, for the issue of free Australian emissions units in respect of activities that:

               (a)     under the program, are taken to be emissions-intensive trade-exposed activities; and

              (b)     are, or are to be, carried on in Australia during a financial year specified in the program.

•      The emissions-intensive trade-exposed assistance 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 emissions-intensive trade-exposed assistance program

167   Emissions-intensive trade-exposed assistance program

             (1)  The regulations may formulate a program (to be known as the emissions-intensive trade-exposed assistance program ) for the issue of free Australian emissions units in respect of activities that:

                     (a)  under the program, are taken to be emissions-intensive trade-exposed activities; and

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

             (2)  The emissions-intensive trade-exposed 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.

168   Relinquishment requirement

             (1)  The emissions-intensive trade-exposed 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.

Note:          An administrative penalty is payable under section 287 for non-compliance with a relinquishment requirement under the emissions-intensive trade-exposed assistance program.

             (2)  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).

169   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 emissions-intensive trade-exposed assistance program.

Requirement

             (2)  The emissions-intensive trade-exposed assistance program may make provision for and in relation to requiring the person to give one or more written reports to the Authority.

170   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 emissions-intensive trade-exposed assistance program.

Requirement

             (2)  The emissions-intensive trade-exposed 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.

171   Other matters

             (1)  The emissions-intensive trade-exposed 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 emissions-intensive trade-exposed assistance program may provide that an application for free Australian emissions units must be accompanied by a prescribed report.

             (3)  The emissions-intensive trade-exposed assistance program may provide for verification by statutory declaration of statements in applications for free Australian emissions units.

172   Ancillary or incidental provisions

                   The emissions-intensive trade-exposed assistance program may contain ancillary or incidental provisions.



 

Division 3 Compliance with reporting and record-keeping requirements under the emissions-intensive trade-exposed assistance program

173   Compliance with reporting and record-keeping requirements

Reporting requirements

             (1)  If a person is subject to a requirement under the emissions-intensive trade-exposed 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 emissions-intensive trade-exposed 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.



 

Division 4 Special information-gathering powers

173A   Minister may obtain information

Scope

             (1)  This section applies to a constitutional corporation if:

                     (a)  a person (who may be the corporation) has indicated to the Commonwealth that the person believes that an activity may be, or should be, eligible for emissions-intensive trade-exposed assistance; and

                     (b)  that activity is not an activity that, under the emissions-intensive trade-exposed assistance program, is taken to be an emissions-intensive trade-exposed activity; and

                     (c)  the Minister believes on reasonable grounds that the corporation has information that:

                              (i)  relates to the activity; and

                             (ii)  is likely to assist the Commonwealth to formulate or vary the policy embodied in the emissions-intensive trade-exposed assistance program.

Request for information and report

             (2)  The Minister may, by written notice given to the corporation:

                     (a)  request the corporation to give to the Minister, within the period and in the manner and form specified in the notice, any such information; and

                     (b)  request that the information be accompanied by a report specified in the notice.

             (3)  A period specified under subsection (2) must not be shorter than 60 days after the notice is given.

Request for information

             (4)  The Minister may, by written notice given to the corporation, request the corporation to give to the Minister, within the period and in the manner and form specified in the notice, any such information.

             (5)  A period specified under subsection (4) must not be shorter than 30 days after the notice is given.

173B   No assistance for 2 eligible financial years if corporation refuses or fails to comply with request for information

Scope

             (1)  This section applies if:

                     (a)  a constitutional corporation is given a request under subsection 173A(2) or (4) at a particular time; and

                     (b)  the corporation refuses or fails to comply with the request.

No assistance for 2 eligible financial years

             (2)  No free Australian emissions units that have a vintage year of:

                     (a)  the first eligible financial year that begins after that time; or

                     (b)  the eligible financial year that next follows the eligible financial year mentioned in paragraph (a);

are to be issued to the corporation in accordance with the emissions-intensive trade-exposed assistance program.

173C   Disclosure of information to the Authority

Scope

             (1)  This section applies to information obtained under section 173A.

Disclosure

             (2)  The Minister may disclose the information to the Authority for the purposes of, or in connection with, the performance of the functions, or the exercise of the powers, of the Authority.

Other powers of disclosure not limited

             (3)  This section does not, by implication, limit the Minister’s powers to disclose the information to a person other than the Authority.