Clean Energy Amendment Regulation 2012 (No. 3)

Link to law: https://www.comlaw.gov.au/Details/F2012L01230

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now
Clean Energy Amendment Regulation 2012 (No. 3)1
Select Legislative Instrument 2012 No. 100
I, QUENTIN BRYCE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulation under the Clean Energy Act 2011.
Dated 14 June 2012
QUENTIN BRYCE
Governor-General
By Her Excellency’s Command
GREG COMBET
Minister for Climate Change and Energy Efficiency
1              Name of regulation
                This regulation is the Clean Energy Amendment Regulation 2012 (No. 3).
2              Commencement
                This regulation commences on the day after it is registered.
3              Amendment of Clean Energy Regulations 2011
                Schedule 1 amends the Clean Energy Regulations 2011.
Schedule 1        Amendments
(section 3)
 
[1]           Regulation 4.10
substitute
4.10        Buy‑back of certain free carbon units—specified factor
         (1)   If a request mentioned in subsection 116 (2) of the Act is received by the Regulator during a period set out in an item of the table in subregulation (3), this provision applies to the buy‑back of free carbon units in a vintage year for the item.
         (2)   The factor specified for the formula in subsection 116 (2) of the Act is:
where:
r is the per annum yield (expressed as a percentage) for BBB rated corporate bonds with 1 to 5 years maturity, as published by the Reserve Bank of Australia, that is the latest daily rate published prior to the day the request to the Regulator was received.
n is the number of days before 15 June in the fixed charge year that the request to the Regulator was received.
         (3)   For subregulation (1), the table is the following.
Item
Period
Vintage year of carbon unit starting on:

1
1 September 2012 to 14 June 2013
1 July 2012

2
1 September 2013 to 14 June 2014
1 July 2013

3
1 September 2014 to 14 June 2015
1 July 2014

         (4)   For a request mentioned in subsection 116 (2) of the Act that is received by the Regulator during a period mentioned in the following table, the factor specified for the formula in subsection 116 (2) of the Act is one.
Item
Period

1
15 June 2013 to 1 February 2014

2
15 June 2014 to 1 February 2015

3
15 June 2015 to 1 February 2016

4.11        Buy-back of certain free carbon units—day for cancellation and entry removal
                For paragraph 116 (3) (a) of the Act, the day for cancelling a unit and removing the entry from the person’s Registry account is the earlier of:
                (a)    the day on which the Regulator is satisfied that the request is made in accordance with subsection 116 (2) of the Act and is one to which subsection 116 (1) of the Act applies; and
               (b)    the day that is 5 working days after the day the Regulator receives the request.
[2]           Schedule 1, paragraphs 306 (2) (a) and (5) (b)
omit
D476-00
insert
D476-00, 2005
[3]           Schedule 1, after Division 37
insert
Division 38     Production of glass beads
338   (1)   The production of glass beads is the physical and chemical transformation of either or both of the following:
                (a)    recycled materials (such as cullet);
               (b)    all of the following:
                          (i)    silicon dioxide (SiO2, silica);
                         (ii)    sodium carbonate (Na2CO3, soda ash);
                        (iii)    any other raw materials;
through a crushing, sieving and firing process into saleable, solid, spherical glass beads where the refractive index is at least 1.50 and the size is smaller than 2 millimetres.
         (2)   The production of glass beads is specified as an emissions‑intensive trade-exposed activity.
         (3)   The production of glass beads is a highly emissions‑intensive activity.
         (4)   The basis for the issue of free carbon units for the production of glass beads is by a tonne of solid glass beads on a dry weight basis that:
                (a)    have a refractive index of at least 1.50; and
               (b)    have a size smaller than 2 millimetres; and
                (c)    are produced by carrying on the emissions-intensive trade‑exposed activity; and
               (d)    are of saleable quality.
Note   Saleable quality is explained in Part 2.
Division 39     Production of sodium silicate glass
339   (1)   The production of sodium silicate glass is the physical and chemical transformation of silicon dioxide (SiO2, silica) and sodium carbonate (Na2CO3, soda ash) into saleable sodium silicate glass where the concentration of sodium silicate (Na2SiO3) is at least 99% with respect to mass.
         (2)   The production of sodium silicate glass is specified as an emissions-intensive trade-exposed activity.
         (3)   The production of sodium silicate glass is a highly emissions‑intensive activity.
         (4)   The basis for the issue of free carbon units for the production of sodium silicate glass is by a tonne of sodium silicate glass on a dry weight basis that:
                (a)    has a concentration of sodium silicate (Na2SiO3) that is at least 99% with respect to mass; and
               (b)    is produced by carrying on the emissions-intensive trade‑exposed activity; and
                (c)    is of saleable quality.
Note   Saleable quality is explained in Part 2.
Division 40     Production of polymer grade propene (polymer grade propylene)
340   (1)   The production of polymer grade propene (C3H6, polymer grade propylene) is the physical transformation of hydrocarbons that have a concentration of propene (C3H6, propylene) between 45% and 85% with respect to mass (inclusive) to polymer grade propene (polymer grade propylene) that has a concentration of propene (propylene) of at least 98% with respect to mass.
         (2)   The production of polymer grade propene (polymer grade propylene) is specified as an emissions-intensive trade-exposed activity.
         (3)   The production of polymer grade propene (polymer grade propylene) is a highly emissions‑intensive activity.
         (4)   The basis for the issue of free carbon units for the production of polymer grade propene (polymer grade propylene) is by a tonne of 100% equivalent propene contained within polymer grade propene (propylene) that:
                (a)    has a concentration of propene that is at least 98% with respect to mass; and
               (b)    is produced by carrying on the emissions-intensive trade‑exposed activity.
Division 41     Production of rolled aluminium
341   (1)   The production of rolled aluminium is the chemical and physical transformation of either or both of primary aluminium metal and secondary aluminium metal with alloying metals into coiled aluminium sheet of saleable quality with a concentration of aluminium of at least 90% with respect to mass, and with a thickness no more than 6 millimetres.
         (2)   The production of rolled aluminium is specified as an emissions-intensive trade-exposed activity.
         (3)   The production of rolled aluminium is a highly emissions‑intensive activity.
         (4)   The basis for the issue of free carbon units for the production of rolled aluminium is by a tonne of coiled aluminium sheet that:
                (a)    has a concentration of aluminium of at least 90% with respect to mass; and
               (b)    has a thickness no more than 6 millimetres measured after the finishing process is complete; and
                (c)    is produced by carrying on the emissions-intensive trade‑exposed activity; and
               (d)    is of saleable quality.
Note   Saleable quality is explained in Part 2.
Division 42     Production of chlorine gas and sodium hydroxide (caustic soda) solution
342   (1)   The production of chlorine gas and sodium hydroxide solution (caustic soda solution (NaOH(aq))) is the chemical transformation of sodium chloride solution (NaCl(aq)) brine to chlorine (Cl2(1,g)) and sodium hydroxide solution (caustic soda solution (NaOH(aq))) that has a concentration of sodium hydroxide (NaOH) of at least 14%.
         (2)   The production of chlorine gas and sodium hydroxide solution (caustic soda solution (NaOH(aq))) is specified as an emissions-intensive trade-exposed activity.
         (3)   The production of chlorine gas and sodium hydroxide solution (caustic soda solution (NaOH(aq))) is a highly emissions‑intensive activity.
Note   See Part 4.
         (4)   The basis for the issue of free carbon units for the production of chlorine gas and sodium hydroxide solution (caustic soda solution (NaOH(aq))) is by a tonne of 100% equivalent sodium hydroxide (caustic soda (NaOH)) on a dry weight basis that:
                (a)    is not recycled back into the emissions-intensive trade‑exposed activity (such as a stream of sodium hydroxide solution (caustic soda solution NaOH(aq)) recycled back into the chemical treatment step); and
               (b)    is contained within the sodium hydroxide solution produced by carrying on the emissions-intensive trade‑exposed activity.
Division 43     Production of fused zirconia
343   (1)   The production of fused zirconia is the physical and chemical transformation of zircon (ZrSiO4) by:
                (a)    the removal of silica (silicon dioxide (SiO2)) using a reductant such as carbon; and
               (b)    heating the zircon to its fusion point;
to produce fused zirconia (zirconium dioxide (ZrO2)) that has a concentration of zirconium dioxide (ZrO2) of at least 96%.
         (2)   The production of fused zirconia is specified as an emissions-intensive trade-exposed activity.
         (3)   The production of fused zirconia is a moderately emissions‑intensive activity.
         (4)   The basis for the issue of free carbon units for the production of fused zirconia is by a tonne of fused zirconia (zirconium dioxide (ZrO2)) that:
                (a)    has a concentration of zirconium dioxide (ZrO2) of at least 96%; and
               (b)    is produced by carrying on the emissions-intensive trade-exposed activity; and
                (c)    is of saleable quality.
Note   Saleable quality is explained in Part 2.
[4]           Schedule 1, subclause 401 (1), table, after item 1.26
insert
1.27
Production of glass beads
Dry weight glass beads of saleable quality
1.75
0.400
n/a

1.28
Production of sodium silicate glass
Dry weight sodium silicate glass of saleable quality
0.622
0.0205
n/a

1.29
Production of polymer grade propene (polymer grade propylene)
100% equivalent propene contained within polymer grade propene
0.0607
0.220
n/a

1.30
Production of rolled aluminium
Coiled aluminium sheet of saleable quality
0.469
0.982
n/a

1.31
Production of chlorine gas and sodium hydroxide solution
100% equivalent dry sodium hydroxide
0.0795
2.65
n/a

[5]           Schedule 1, subclause 401 (1), table, after item 2.10
insert
2.11
Production of fused zirconia
Fused zirconia of saleable quality
0.0787
4.88
n/a
[6]           Schedule 1, clauses 504 to 506
substitute
504          A person is eligible if:
                (a)    for the financial year commencing on 1 July 2012—the following apply:
                          (i)    on 1 July 2012:
                                   (A)     the person had operational control over the facility; and
                                   (B)     there was no mandatory designated joint venture in relation to the facility;
                         (ii)    at the time the person applies for free carbon units:
                                   (A)     no liability transfer certificate has been issued in relation to the facility with a start day of 1 July 2012 (even if a liability transfer certificate is later issued in relation to the facility with a start day of 1 July 2012); and
                                   (B)     there is no declared designated joint venture in relation to the facility with a start day of 1 July 2012 (even if a declaration is later made under section 70 of the Act in relation to the facility with a start day of 1 July 2012); and
                                   (C)     no application has been made or, if an application was made it was refused, under section 68, 81 or 85 of the Act in relation to the facility; or
               (b)    for any other financial year—on 30 June of the previous financial year, the following apply:
                          (i)    the person had operational control over the facility;
                         (ii)    no liability transfer certificate was issued in relation to the facility;
                        (iii)    there was no designated joint venture in relation to the facility.
505          A person is eligible if:
                (a)    for the financial year commencing on 1 July 2012—either:
                          (i)    both of the following apply:
                                   (A)     on 1 July 2012 the person was a participant in a mandatory designated joint venture in relation to the facility;
                                   (B)     at the time the person applies for free carbon units, the person has a participating percentage with a start day of 1 July 2012 in relation to that facility that is greater than zero; or
                         (ii)    both of the following apply:
                                   (A)     the person was a participant in a declared designated joint venture in relation to the facility under a declaration that had a start day of 1 July 2012;
                                   (B)     the person had a participating percentage with a start day of 1 July 2012 in relation to that facility that is greater than zero;
               (b)    for any other financial year—both of the following apply on 30 June of the previous financial year:
                          (i)    the person was a participant in a designated joint venture in relation to the facility;
                         (ii)    the person has a participating percentage in relation to that facility that is greater than zero.
Note   A participating percentage is determined by the Regulator under section 76 or 77 of the Act.
506          A person is eligible if the person is the holder of a liability transfer certificate in relation to the facility and the certificate:
                (a)    for the financial year commencing on 1 July 2012:
                          (i)    was in force at the time the person applies for free carbon units; and
                         (ii)    had a start day of 1 July 2012; or
               (b)    for any other financial year—was in force on 30 June of the previous financial year.
Note   If this Division does not apply to a person, see Division 3.
[7]           Schedule 1, paragraph 708 (1) (e)
substitute
                (e)    in the previous financial year, the applicant did not choose to use method 2 in clause 912 to work out the sub-threshold emissions adjustment.
[8]           Schedule 1, subclause 911 (2)
after
For paragraph (1) (c),
insert
disregard any sub-threshold emissions adjustment under subclause 912 (8), then
[9]           Schedule 1, subclauses 912 (2) and (3)
substitute
         (2)   This Division applies if:
                (a)    a facility involves carrying on one or more activities identified in Part 3; and
               (b)    either:
                          (i)    an application was approved for free carbon units in relation to the carrying on of the same activities at the same facilities or series of facilities in the financial year before the financial year to which the current application relates; or
                         (ii)    an event mentioned in subclause 1305 (2) occurred in relation to the carrying on of the same activities at the same facilities or series of facilities in the financial year before the financial year to which the current application relates; and
                (c)    for the financial year before the financial year to which the current application relates—both of the following apply:
                          (i)    the facility did not pass the relevant threshold test under sections 20 to 25 of the Act; and
                         (ii)    the person mentioned in those sections did not have a provisional emissions number in relation to the facility.
         (3)   To work out the sub‑threshold emissions adjustment for the facility:
                (a)    if the applicant chooses to use method 2 (set out in subclause (8))—use that method; and
               (b)    in all other cases—use method 1 (set out in subclauses (4) to (7)).
[10]         Schedule 1, subclause 912 (4)
omit
subclause (3)
insert
subclause (2)
[11]         Schedule 1, subclause 912 (5)
substitute
         (5)   The number of carbon units that are required to be issued in accordance with method 1 in relation to the current application:
                (a)    if, in the previous financial year, the applicant chose to use method 2 to work out the sub-threshold emissions adjustment for the facility—is reduced to zero; and
               (b)    in all other cases—is reduced by the sub-threshold emissions adjustment worked out by adding together the result for each facility under subclause (4) that relates to the application.
[12]         Schedule 1, subclauses 912 (8) and (9)
substitute
Method 2
         (8)   For an application:
                (a)    EIat, mentioned in subclause 907 (5), is taken to be zero; and
               (b)    the sub-threshold emissions adjustment is:
                          (i)    if, in the previous financial year, the applicant did not choose to use method 2 to work out the sub‑threshold emissions adjustment for the facility—the number worked out under method 1; or
                         (ii)    in all other cases—zero.
If this Division does not apply
         (9)   If the facility is not a facility to which this Division applies, the sub-threshold emissions adjustment is zero.
Note
1.       All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See www.comlaw.gov.au.