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Carbon Pollution Reduction Scheme Bill 2009

Part 11 Destruction of synthetic greenhouse gases

Division 1 Introduction

244   Simplified outline

                   The following is a simplified outline of this Part:

•      Free Australian emissions units may be issued in respect of the destruction of synthetic greenhouse gases.

•      The synthetic greenhouse gas must be destroyed at an approved synthetic greenhouse gas destruction facility.

•      Free units may be issued to:

               (a)     a recognised synthetic greenhouse gas destruction customer; or

              (b)     the operator of an approved synthetic greenhouse gas destruction facility.



 

Division 2 Issue of free Australian emissions units in respect of the destruction of synthetic greenhouse gases

245   Issue of free Australian emissions units in respect of the destruction of synthetic greenhouse gases

Scope

             (1)  This section applies if a certificate of eligible synthetic greenhouse gas destruction is in force in respect of an eligible financial year.

Issue of free units

             (2)  As soon as practicable after the day on which the certificate was issued, the Authority must issue to the holder of the certificate a number of free Australian emissions units equal to the number specified in the certificate as the unit entitlement for that certificate.

             (3)  Free Australian emissions units issued in accordance with subsection (2) during an eligible financial year are to have a vintage year of the eligible financial year.

             (4)  The Authority must not issue a free Australian emissions unit to a person in accordance with subsection (2) unless the person has a Registry account.



 

Division 3 Certificate of eligible synthetic greenhouse gas destruction

246   Application for certificate of eligible synthetic greenhouse gas destruction

             (1)  A person may, within 4 months after the end of an eligible financial year, apply to the Authority for the issue to the person of a certificate of eligible synthetic greenhouse gas destruction in respect of the eligible financial year.

             (2)  A person is not entitled to make an application unless the person is:

                     (a)  a recognised synthetic greenhouse gas destruction customer; or

                     (b)  the operator of an approved synthetic greenhouse gas destruction facility.

             (3)  An application must state:

                     (a)  that the application is made in the applicant’s capacity as a recognised synthetic greenhouse gas destruction customer; or

                     (b)  that the application is made in the applicant’s capacity as the operator of an approved synthetic greenhouse gas destruction facility.

             (4)  An application must specify one or more synthetic greenhouse gas destruction events that occurred during the eligible financial year.

247   Form of application

             (1)  An application must:

                     (a)  be in writing; and

                     (b)  be in a form approved, in writing, by the Authority; and

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

                     (d)  be accompanied by such documents (if any) as are specified in the regulations.

             (2)  The approved form of application may provide for verification by statutory declaration of statements in applications.

248   Further information

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

             (2)  If the applicant breaches the requirement, the Authority may, by written notice given to the applicant:

                     (a)  refuse to consider the application; or

                     (b)  refuse to take any action, or any further action, in relation to the application.

249   Issue of certificate of eligible synthetic greenhouse gas destruction

Scope

             (1)  This section applies if an application under section 246 has been made for the issue of a certificate of eligible synthetic greenhouse gas destruction in respect of an eligible financial year.

Issue of certificate

             (2)  After considering the application, the Authority may issue a certificate of eligible synthetic greenhouse gas destruction in respect of the eligible financial year.

Note:          See section 250 (criteria for issuing certificate).

             (3)  A certificate of eligible synthetic greenhouse gas destruction must state that a specified number is the unit entitlement in respect of the certificate.

Note:          See section 251 (unit entitlement).

Timing

             (4)  The Authority must take all reasonable steps to ensure that a decision is made on the application:

                     (a)  if the Authority requires the applicant to give further information under subsection 248(1) in relation to the application—within 90 days after the applicant gave the Authority the information; or

                     (b)  otherwise—within 90 days after the application was made.

Refusal

             (5)  If the Authority decides to refuse to issue a certificate of eligible synthetic greenhouse gas destruction, the Authority must give written notice of the decision to the applicant.

250   Criteria for issuing certificate of eligible synthetic greenhouse gas destruction

Scope

             (1)  This section applies if an application under section 246 has been made for the issue of a certificate of eligible synthetic greenhouse gas destruction in respect of an eligible financial year.

Recognised synthetic greenhouse gas destruction customer

             (2)  If the application is made in the applicant’s capacity as a recognised synthetic greenhouse gas destruction customer, the Authority must not issue the certificate unless:

                     (a)  the Authority is satisfied that the following conditions are satisfied in relation to each synthetic greenhouse gas destruction event specified in the application:

                              (i)  the event occurred during the eligible financial year;

                             (ii)  the applicant was a recognised synthetic greenhouse gas destruction customer at the time of the occurrence of the event;

                            (iii)  the synthetic greenhouse gas was destroyed at an approved synthetic greenhouse gas destruction facility under a contract between the applicant and the operator of the facility;

                            (iv)  the applicant incurred expenditure under the contract in respect of the destruction of the synthetic greenhouse gas;

                             (v)  the approved synthetic greenhouse gas destruction facility was authorised under the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 to carry out the destruction of the synthetic greenhouse gas;

                            (vi)  the destruction of the synthetic greenhouse gas complied with the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 ;

                           (vii)  the synthetic greenhouse gas was eligible waste; and

                     (b)  the total quantity of synthetic greenhouse gas covered by the synthetic greenhouse gas destruction events specified in the application exceeds the quantity specified in the regulations.

Operator of an approved synthetic greenhouse gas destruction facility

             (3)  If the application was made in the applicant’s capacity as the operator of an approved synthetic greenhouse gas destruction facility, the Authority must not issue the certificate unless:

                     (a)  the Authority is satisfied that the following conditions are satisfied in relation to each synthetic greenhouse gas destruction event specified in the application:

                              (i)  the event occurred during the eligible financial year;

                             (ii)  the synthetic greenhouse gas was destroyed at an approved synthetic greenhouse gas destruction facility operated by the applicant;

                            (iii)  the destruction of the synthetic greenhouse gas was not carried out under a contract between the applicant and another person;

                            (iv)  the applicant was not entitled to receive any consideration for carrying out the destruction of the synthetic greenhouse gas;

                             (v)  the approved synthetic greenhouse gas destruction facility was authorised under the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 to carry out the destruction of the synthetic greenhouse gas;

                            (vi)  the destruction of the synthetic greenhouse gas complied with the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 ;

                           (vii)  the synthetic greenhouse gas was eligible waste; and

                     (b)  the total quantity of synthetic greenhouse gas covered by the synthetic greenhouse gas destruction events specified in the application exceeds the quantity specified in the regulations.

251   Unit entitlement

             (1)  The number to be specified in a certificate of eligible synthetic greenhouse gas destruction as the unit entitlement in respect of the certificate is to be worked out as follows:

                     (a)  calculate the provisional number for each synthetic greenhouse gas destruction event specified in the application for the certificate;

                     (b)  the number to be specified as the unit entitlement is the sum of those provisional numbers.

Provisional number—synthetic greenhouse gas destruction event

             (2)  For the purposes of this section, the provisional number of a synthetic greenhouse gas destruction event is the number (calculated to zero decimal places) worked out using the following formula:

where:

destruction efficiency factor means the factor specified in the regulations in relation to the approved synthetic greenhouse gas destruction facility concerned.

252   Certificate of eligible synthetic greenhouse gas destruction is not transferable

                   A certificate of eligible synthetic greenhouse gas destruction is not transferable.



 

Division 4 Recognised synthetic greenhouse gas destruction customers

253   Application for recognition as a synthetic greenhouse gas destruction customer

                   A company may apply to the Authority for recognition as a synthetic greenhouse gas destruction customer.

254   Form of application

             (1)  An application must:

                     (a)  be in writing; and

                     (b)  be in a form approved, in writing, by the Authority; and

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

                     (d)  be accompanied by such documents (if any) as are specified in the regulations; and

                     (e)  be accompanied by the fee (if any) specified in the regulations.

             (2)  The approved form of application may provide for verification by statutory declaration of statements in applications.

             (3)  A fee specified under paragraph (1)(e) must not be such as to amount to taxation.

255   Further information

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

             (2)  If the applicant breaches the requirement, the Authority may, by written notice given to the applicant:

                     (a)  refuse to consider the application; or

                     (b)  refuse to take any action, or any further action, in relation to the application.

256   Recognition as a synthetic greenhouse gas destruction customer

Scope

             (1)  This section applies if an application under section 253 has been made for recognition as a synthetic greenhouse gas destruction customer.

Recognition

             (2)  After considering the application, the Authority may, by written notice given to the applicant, recognise the applicant as a synthetic greenhouse gas destruction customer.

Criteria for recognition

             (3)  The Authority must not recognise the applicant as a recognised synthetic greenhouse gas destruction customer unless:

                     (a)  the Authority is satisfied that the applicant is a fit and proper person, having regard to the following:

                              (i)  whether the applicant has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to dishonest conduct;

                             (ii)  whether the applicant has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to the conduct of a business;

                            (iii)  whether the applicant has been convicted of an offence against section 136.1, 137.1 or 137.2 of the Criminal Code ;

                            (iv)  whether an executive officer of the applicant has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to dishonest conduct;

                             (v)  whether an executive officer of the applicant has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to the conduct of a business;

                            (vi)  whether an executive officer of the applicant has been convicted of an offence against section 136.1, 137.1 or 137.2 of the Criminal Code ;

                           (vii)  whether the applicant has breached this Act or the associated provisions;

                          (viii)  whether an executive officer of the applicant has breached this Act or the associated provisions;

                            (ix)  such other matters (if any) as the Authority considers relevant; and

                     (b)  the Authority is satisfied that the applicant is not an externally-administered body corporate; and

                     (c)  if the regulations specify one or more other eligibility requirements—the Authority is satisfied that those requirements are met.

             (4)  Subparagraphs (3)(a)(i) to (viii) do not limit subparagraph (3)(a)(ix).

Timing

             (5)  The Authority must take all reasonable steps to ensure that a decision is made on the application:

                     (a)  if the Authority requires the applicant to give further information under subsection 255(1) in relation to the application—within 90 days after the applicant gave the Authority the information; or

                     (b)  otherwise—within 90 days after the application was made.

Refusal

             (6)  If the Authority decides to refuse to recognise the applicant as a synthetic greenhouse gas destruction customer, the Authority must give written notice of the decision to the applicant.

257   Cancellation of recognition

             (1)  The Authority may cancel the recognition of a company as a synthetic greenhouse gas destruction customer if:

                     (a)  the Authority is satisfied that the company is not a fit and proper person, having regard to the following:

                              (i)  whether the company has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to dishonest conduct;

                             (ii)  whether the company has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to the conduct of a business;

                            (iii)  whether the company has been convicted of an offence against section 136.1, 137.1 or 137.2 of the Criminal Code ;

                            (iv)  whether an executive officer of the company has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to dishonest conduct;

                             (v)  whether an executive officer of the company has been convicted of an offence against a law of the Commonwealth, a State or Territory, where the offence relates to the conduct of a business;

                            (vi)  whether an executive officer of the company has been convicted of an offence against section 136.1, 137.1 or 137.2 of the Criminal Code ;

                           (vii)  whether the company has breached this Act or the associated provisions;

                          (viii)  whether an executive officer of the company has breached this Act or the associated provisions;

                            (ix)  such other matters (if any) as the Authority considers relevant; or

                     (b)  the Authority is satisfied that the company is an externally-administered body corporate; or

                     (c)  if the regulations specify one or more other grounds for cancellation—the Authority is satisfied that at least one of those grounds is applicable to the company.

             (2)  Subparagraphs (1)(a)(i) to (viii) do not limit subparagraph (1)(a)(ix).

258   Surrender of recognition

Scope

             (1)  This section applies if a company is recognised as a synthetic greenhouse gas destruction customer.

Surrender

             (2)  The company may, by written notice given to the Authority, surrender the company’s recognition.

             (3)  The surrender takes effect on the day the notice is received by the Authority or, if a later day is specified in the notice, on that later day.

259   Recognition is not transferable

                   If a company is recognised as a synthetic greenhouse gas destruction customer, the company’s recognition is not transferable.