Renewable Energy (Electricity) Amendment Regulations 2010 (No. 1)1
Select Legislative Instrument 2010 No. 46
I, QUENTIN BRYCE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Renewable Energy (Electricity) Act 2000.
Dated 10 March 2010
QUENTIN BRYCE
Governor-General
By Her Excellency’s Command
PENELOPE YING YEN WONG
Minister for Climate Change, Energy Efficiency and Water
1 Name of Regulations
These Regulations are the Renewable Energy (Electricity) Amendment Regulations 2010 (No. 1).
2 Commencement
These Regulations commence on the day after they are registered.
3 Amendment of Renewable Energy (Electricity) Regulations 2001
Schedule 1 amends the Renewable Energy (Electricity) Regulations 2001.
Schedule 1 Amendments
(regulation 3)
[1] After Part 3
insert
Part 3A Partial Exemption Certificates
Division 1 Interpretation
22A Interpretation
(1) In this Part and Schedule 6:
ABN has the same meaning as in the A New Tax System (Australian Business Number) Act 1999.
ACN has the same meaning as in the Corporations Act 2001.
acquired has the meaning given by subregulation 22A (8).
activity group has the meaning given by subregulation 22A (9).
applicant means a prescribed person that makes an application for a partial exemption certificate.
controlling corporation means a corporation to which paragraph 51 (xx) of the Constitution applies that does not have a holding company incorporated in Australia.
Department of Climate Change and Energy Efficiency means the Department administered by the Minister who administers the National Greenhouse and Energy Reporting Act 2007.
facility has the meaning given by section 9 of the National Greenhouse and Energy Reporting Act 2007.
financial control has the meaning given by subregulations 22K (4) and (5).
group has the meaning given by subregulation (2).
highly emissions-intensive has the meaning given in subregulation (3).
joint venture means an unincorporated enterprise carried on by 2 or more entities in common otherwise than as a partnership.
member has the meaning given by subregulation (4).
moderately emissions-intensive has the meaning given in subregulation (5).
operational control has the meaning given by subregulation (6).
product means a product that is specified in Division 3 of a Part in Schedule 6 as the basis for the issue of a partial exemption certificate in relation to the carrying on of an emissions-intensive trade-exposed activity.
REC means a renewable energy certificate.
referrable to a site has the meaning given in subregulation (7).
relevant product means:
(a) in relation to an application for a partial exemption certificate — a product that is identified in the application as meeting the requirements specified in Division 3 of a Part in Schedule 6 as the basis for the issue of the certificate; and
(b) in relation to a partial exemption certificate that has been issued — a product that meets the requirements specified in Division 3 of a Part in Schedule 6 as the basis for the issue of the certificate.
saleable quality has the meaning given in regulation 22C.
(2) Entities are taken to be a group if the entities are a controlling corporation’s group under the National Greenhouse and Energy Reporting Act 2007.
(3) An emissions-intensive trade-exposed activity is highly emissions-intensive if the base rate for calculating the partial exemption for the activity is as set out in column 2 of the table in subregulation 22ZA (2) or (5).
(4) An entity is a member of a controlling corporation’s group if the entity is a member of the controlling corporation’s group under the National Greenhouse and Energy Reporting Act 2007.
(5) An emissions-intensive trade-exposed activity is moderately emissions-intensive if the base rate for calculating the partial exemption for the activity is as set out in column 3 of the table in subregulation 22ZA (2) or (5).
(6) An entity is taken to have operational control over a facility if the entity has operational control of the facility under the National Greenhouse and Energy Reporting Act 2007.
(7) An amount or volume of a relevant product that is identified in an application for a partial exemption certificate is referrable to a site only if:
(a) the site is nominated in the application for the certificate in relation to the product; and
(b) the Regulator is satisfied that the nomination meets the conditions specified in subregulation 22B (1); and
(c) the Regulator is satisfied that the amount or volume of relevant product meets the conditions specified in subregulation 22B (2).
(8) Electricity is acquired for use at a site only if the electricity is used at the site and, in relation to that electricity, there was a relevant acquisition between the point of generation of the electricity and the point of use.
(9) If an emissions-intensive trade-exposed activity is, or is to be, carried on partly at 1 site and partly at 1 or more different sites, then all of those sites constitute an activity group if:
(a) the processes involved in the transformation relevant to the carrying on of the activity occur, or will occur:
(i) at those different sites; and
(ii) as part of the same production process; and
(b) the production of the relevant product from the activity involves the transfer of an intermediate product between the sites in order to produce the relevant product.
22B Conditions for production to be referrable to a site
(1) For paragraph 22A (7) (b), the conditions for the nomination of a site in relation to an amount or volume of a relevant product are as follows:
(a) the relevant product in relation to which a site is nominated is, or will be, the product of an emissions-intensive trade-exposed activity that is, or is to be, carried on wholly or partly at the nominated site;
(b) only 1 site is to be nominated in respect of an amount or volume of relevant product;
(c) the site is not a site at which the emissions-intensive trade‑exposed activity is, or is to be, carried on only in an ancillary way.
(2) For paragraph 22A (7) (c), the conditions that the amount or volume of relevant product must meet are as follows:
(a) if the amount or volume of relevant product is identified in the application as the product of a single site — the site:
(i) is not part of an activity group; or
(ii) if the site is part of an activity group, all other sites in the activity group are sites at which the activity is, or is to be, only carried on in an ancillary way;
(b) if the amount or volume of relevant product is identified in the application as the product of each site nominated in an activity group — the amount or volume is calculated in accordance with the following formula:
where:
PT is the total amount or volume of the relevant product produced, or to be produced, from the emissions-intensive trade-exposed activity at all of the sites that are part of the same activity group.
ES is a reasonable estimate of the following amounts of electricity:
(a) if 80% or more of the electricity used at the site is used for the purpose of carrying on the activity — the amount of electricity (expressed in megawatt hours) acquired for use at the site; or
(b) if less than 80% of the electricity used at the site is used for the purpose of carrying on the activity — the amount of electricity (expressed in megawatt hours) acquired for use in carrying out the activity.
ET is the sum of all the estimated amounts of electricity (ES) for all of the sites in the activity group (other than sites at which the emissions-intensive trade-exposed activity is, or is to be, only carried on in an ancillary way).
22C Meaning of saleable quality
(1) In this Part and Schedule 6, saleable quality is intended to have its ordinary meaning as understood by participants in the relevant market, subject to subregulations (2) to (5).
(2) A product is taken to be of saleable quality if it is produced to a level at which it would ordinarily be considered by participants in the relevant market:
(a) to be the output of a process carried on as part of an emissions-intensive trade-exposed activity; and
(b) to have a commercial value as that output.
Note On this basis, the output may meet particular industry standards or specifications (either general specifications or those set by particular customers). It may also meet internal standards by which it can be used by the firm as part of another process conducted by the firm.
Outputs that are of saleable quality do not need to be sold in the year of production. Therefore, an output that is produced and entered on an inventory can be of saleable quality.
(3) A sub-standard product that is discarded is taken not to be of saleable quality.
(4) A product that is recycled back into the same emissions-intensive trade-exposed activity to produce a new output is taken to be of saleable quality only once.
Examples
1 Metal that is re-melted in the same equipment in which it was produced.
2 Paper that is re-inputted into a paper making process.
(5) Material that is scrapped or lost before it is packaged as a product that is of saleable quality:
(a) is taken not to be of saleable quality; and
(b) is taken not to be included in an amount of product that is of saleable quality that is to be counted for the purpose of calculating a liable entity’s partial exemption.
Division 2 Emissions-intensive trade-exposed activities
22D Emissions-intensive trade-exposed activities
For the purposes of paragraph (b) of the definition of emissions-intensive trade-exposed activity in section 5 of the Act, each activity specified in Division 1 of a Part (other than Part 1) in Schedule 6 is prescribed.
Note 1 Other Divisions in a Part in Schedule 6 set out information that is required for the purposes of calculating the amount of a liable entity’s partial exemption.
Note 2 After regulations (the CPRS Regulations) made for the purposes of subsection 167 (1) of the Carbon Pollution Reduction Scheme Act 2010 come into operation, Division 1 of each Part in Schedule 6 will cease to have effect. At that time, an activity that is taken to be an emissions-intensive trade-exposed activity for the purposes of the emissions-intensive trade-exposed program under the CPRS Regulations will be an emissions-intensive trade-exposed activity for the purposes of these Regulations — see paragraph (a) of the definition on emissions-intensive trade-exposed activity in section 5 of the Act.
Note 3 However, the other Divisions of a Part in Schedule 6 will continue to apply for the purposes of calculating the amount of a liable entity’s partial exemption.
Division 3 Publication of information
22E Information about partial exemptions to be published — section 38C of the Act
(1) For paragraph 38C (1) (c) of the Act, the name of each of the emissions-intensive trade-exposed activities set out in the partial exemption certificates to which the partial exemption relates is required.
(2) For subsection 38C (2) of the Act, for a year, the name of each person to whom a partial exemption certificate is issued and the emissions-intensive trade-exposed activity set out in the partial exemption certificate is required to be published within 14 days after the certificate is issued.
(3) For subsection 38C (2) of the Act, for a year, the total amount of partial exemptions given for each emissions-intensive trade‑exposed activity is required to be published by 1 October in the year to which the partial exemptions relate.
Division 4 Applications for partial exemption certificates
Subdivision A Who may apply — prescribed persons
22F Prescribed persons — subsection 46A (1) of the Act
This Subdivision prescribes persons for subsection 46A (1) of the Act.
22G Prescribed person — person with contract for supply of electricity to site
If:
(a) a person is making an application under subsection 46A (1) of the Act in relation to a site and a year (the application year); and
(b) the person (the contracting person) was a party to a contract for the supply of electricity consumed at the site during the whole, or part of, the year immediately preceding the application year; and
(c) the contract was with the liable entity in relation to electricity consumed at the site during the period mentioned in paragraph (b); and
(d) an emissions-intensive trade-exposed activity is to be carried on at the site during the application year; and
(e) immediately before the day the application is made:
(i) the contracting person is a party to a contract for the supply of electricity consumed at the site; and
(ii) in relation to the site, activity and the application year there is no valid application before the Regulator, and there is no partial exemption certificate issued, for the activity, the site and the application year;
then the contracting person is a prescribed person for the activity, the site and the application year.
22H Prescribed person — liable entity with operational control
If:
(a) a person has operational control of a facility immediately before the person makes an application under subsection46A (1) of the Act in respect of a site and a year; and
(b) an emissions-intensive trade-exposed activity is carried on at the site; and
(c) the facility is the principal facility that is carried on at the site; and
(d) the person is the liable entity for:
(i) over 30% of the electricity consumed at the site; or
(ii) the majority of the electricity consumed at the site that gives rise to a relevant acquisition;
in the 6 months immediately preceding the day the person makes the application; and
(e) immediately before the day the application is made in relation to the activity, the site and the year there is no valid application before the Regulator, and there is no partial exemption certificate issued for the activity, the site and the application year;
then the person is a prescribed person for the activity, the site and the year.
22I Prescribed person — liable entity for future activity
If:
(a) immediately before a person makes an application in respect of a site and a year, an emissions-intensive trade‑exposed activity is not yet carried on at the site; and
(b) the emissions-intensive trade-exposed activity is to be carried on at the site during the application year; and
(c) when the emissions-intensive trade-exposed activity is first to be carried on at the site the person will have operational control of the facility; and
(d) the facility will be the principal facility that is carried on at the site; and
(e) the person will be the liable entity for over 30% of the electricity consumed at the site during the application year; and
(f) immediately before the day the application is made in relation to the activity, the site and the year there is no valid application before the Regulator, and there is no partial exemption certificate issued for the activity, the site and the application year;
then the person is a prescribed person for the activity, the site and the application year.
22J Prescribed person — person with a new contract for supply of electricity
If:
(a) a person is making an application under subsection 46A (1) of the Act in relation to a site and a year; and
(b) an emissions-intensive trade-exposed activity is to be carried on at the site during the year; and
(c) immediately before the day the application is made for the site, there is no prescribed person of a kind mentioned in regulation 22G, 22H or 22I; and
(d) a person is a party to a contract with a liable entity for the first supply of electricity to be consumed at the site in the year; and
(e) immediately before the day the application is made in relation to the activity, the site and the application year there is no valid application before the Regulator, and there is no partial exemption certificate issued, for the activity, the site and the year;
then the person is a prescribed person in relation to the activity, the site and the year.
22K Prescribed person — nominated person
(1) If:
(a) a person is a prescribed person (the first person) under regulation 22G, 22H, 22I or 22J for an emissions-intensive trade-exposed activity to be carried on at a site during a year; and
(b) before the first person makes an application in respect of the site and the year under subsection 46A (1) of the Act, the first person gives the Regulator notice; and
(c) the notice states that another person in relation to the principal facility carried on, or to be carried on, at the site may apply for a partial exemption certificate for the activity, the site and the year; and
(d) the other person is a controlling person (see subregulation (3)) in relation to the principal facility; and
(e) immediately before the day the application is made in relation to the activity, the site and the year there is no valid application before the Regulator, and there is no partial exemption certificate issued, for the activity, the site and the year;
then the other person is taken to be the prescribed person for the activity, the site and the year.
(2) The notice under subregulation (1) must be given in writing.
(3) Controlling person, in relation to the principal facility to be carried on at the site, means 1 of the following:
(a) a person with operational control of the facility;
(b) the controlling corporation that has a member of its group with operational control of the facility;
(c) a person that is not the operator of the facility who has financial control (see subregulation (4)) over the facility.
(4) If a person (the operator) has operational control over a facility, another person (the second person) has financial control over the facility if:
(a) under a contract between:
(i) the operator; and
(ii) the second person;
the operator operates the facility on behalf of the second person; or
(b) under a contract between:
(i) the operator; and
(ii) the second person and 1 or more other persons;
the operator operates the facility on behalf of the second person and those other persons; or
(c) the second person is able to control the trading or financial relationships of the operator in relation to the facility; or
(d) the second person has the economic benefits from the facility; or
(e) all of the following conditions are satisfied:
(i) the second person is a participant in a joint venture;
(ii) there is only 1 other participant in the joint venture;
(iii) the second person shares the economic benefits from the facility with the other participant;
(iv) the second person’s share equals or exceeds the share of the other participant; or
(f) all of the following conditions are satisfied:
(i) the second person is a participant in a joint venture;
(ii) there are 2 or more other participants in the joint venture;
(iii) the second person shares the economic benefits from the facility with the other participants;
(iv) no other participant has a share of the economic benefits from the facility; or
(g) all of the following conditions are satisfied:
(i) the second person is a partner in a partnership;
(ii) there are 2 or more other partners in the partnership;
(iii) the second person shares the economic benefits from the facility with the other partners;
(iv) no other partner has a share that exceeds the share of the second person; or
(h) the second person is able to direct or sell the output of the facility.
(5) In determining whether the second person has that financial control, regard must be had to the economic and commercial substance of the matters mentioned in subregulation (4).
22L Prescribed person — liable entity changes
(1) If:
(a) a prescribed person has been granted a partial exemption certificate in relation to an emissions-intensive trade‑exposed activity, site and year; and
(b) during the year the liable entity set out in the certificate ceases to be the liable entity in relation to the electricity consumed at the site; and
(c) a second liable entity begins to be the liable entity in relation to electricity consumed at the site; and
(d) the prescribed person applies again under subsection 46A (1) of the Act before the end of the year in relation to the activity, site, year and second liable entity;
then the prescribed person is a prescribed person for the activity, the site, the year and the second liable entity.
(2) If during the year:
(a) the second liable entity ceases to be the liable entity in relation to the electricity consumed at the site; and
(b) a third liable entity begins to be the liable entity in relation to electricity consumed at the site; and
(c) the prescribed person applies again under subsection 46A (1) of the Act before the end of the year in relation to the activity, site, year and third liable entity;
then the prescribed person is a prescribed person for the activity, the site, the year and the third liable entity.
22M Prescribed person — multiple liable entities
If:
(a) a prescribed person has been granted a partial exemption certificate in relation to an emissions-intensive trade‑exposed activity, site and year; and
(b) at the start of the year there are 1 or more liable entities in relation to the electricity consumed at the site other than the liable entity set out in the certificate; and
(c) the prescribed person has not been, or has not applied to be, a prescribed person under subregulation 22L (1) for the activity, site and year; and
(d) the prescribed person applies again under subsection 46A (1) of the Act before the end of the year in relation to:
(i) the activity; and
(ii) the site; and
(iii) the year; and
(iv) the liable entity that is likely to be responsible for the most amounts of relevant acquisitions consumed at the site during the year by all the liable entities mentioned in paragraph (b) (other than the liable entity set out in the certificate);
then the prescribed person is a prescribed person for the activity, the site, the year and the second liable entity.
Example
Company A operates a zinc smelter at a site with 2 connection points to the National Electricity Market. The company has a different retailer for each of those connection points. The company would first apply in relation to one of the retailers and obtain the full value of the partial exemption for the emissions-intensive trade-exposed activity. The company would then apply for a second certificate for the second retailer by becoming a prescribed person under regulation 22M. Once approved, the first certificate would be reduced in accordance with regulation 22ZQ.
Subdivision B Information to be included in applications under subsection 46A (1) of the Act
22N Information to be included
(1) This Subdivision prescribes information that must be included in an application under subsection 46A (1) of the Act.
(2) The Subdivision is made for the purposes of paragraph 46A (2) (b) of the Act.
22O Information to be included with all applications
(1) The following information is prescribed in relation to all applications under subsection 46A (1):
(a) the applicant’s name, address and contact details;
(b) the applicant’s ABN and ACN;
(c) the name and work contact details of a contact person for the application;
(d) a description of the basis upon which the applicant is a prescribed person;
(e) an explanation of how the emission-intensive trade‑exposed activity will be carried on at the site in the year and how any requirements relating to the conduct of the activity will be met;
(f) an explanation of the amount or volume of relevant production and other numbers relevant to the application of the method in Division 5, including:
(i) the basis on which such amounts have been calculated; and
(ii) how any amounts or volumes of relevant product have been measured and the frequency of the measurements; and
(iii) how the nomination of amounts or volumes of a relevant product satisfy the conditions in regulation 22B; and
(iv) how any other requirements relating to those amounts have been met;
(g) a statement of the amount of the partial exemption that should be set out in the partial exemption certificate and how that amount should be calculated in accordance with Division 5;
(h) if, for a particular application year, the application is made before the Regulator has published the volume weighted average market price for a REC for the year under regulation 22ZH — the estimate of that price used by the applicant for the purpose of calculating the amount under paragraph (g).
(2) The following information is also prescribed in relation to all applications made under subsection 46A (1) of the Act (other than an application of a kind mentioned in regulation 22S or 22T):
(a) a map that sets out the following:
(i) the site in respect of which the application is made;
(ii) where on the site the emission-intensive trade‑exposed activities are carried on;
(iii) the sources of electricity generation that are part of the site and the nameplate rating (in MW) of each of those sources;
(iv) any point at which electricity is delivered to the site other than by means of an electricity grid with a capacity of 100 MW or more;
(v) how the site is connected to an electricity grid with a capacity that is 100 MW or more;
(b) the name of the liable entity (as referred to in paragraph 46A (1) (b) of the Act);
(c) if:
(i) an emission-intensive trade-exposed activity is proposed to be carried on at the site but is not, at the time of the application, carried on at the site; and
(ii) an approval is necessary to carry out the emission-intensive trade-exposed activity proposed at the site;
a statement of what those approvals are and whether the prescribed person has obtained them at the time of making the application;
(d) information about any generation capacity that exists at the site and whether the generation gives rise to any relevant acquisitions;
(e) information about any electricity used at the site that is not a relevant acquisition because of subsection 31 (2) of the Act;
(f) whether the prescribed person intends to apply to be a prescribed person under regulation 22M in relation to the activity, site and year in respect of a second liable entity at the site.
22P Information to be included in some applications only
If information or audit report provided to Department of Climate Change and Energy Efficiency
(1) If:
(a) information or an audit report have previously been provided to the Department of Climate Change and Energy Efficiency; and
(b) the information or report deals with the amount or volume of relevant product that will be used in the determination of the liable entity’s (being the liable entity mentioned in the application as referred to in paragraph 46A (1) (b) of the Act) partial exemption;
then the information or report is prescribed information in relation to an application under subsection 46A (1) of the Act made in respect of 2010.
Certain applications made for 2010
(2) If:
(a) an application under subsection 46A (1) of the Act is made in respect of 2010; and
(b) there is an amount or volume of production mentioned in the application that will be used to determine the liable entity’s (being the liable entity mentioned in the application as referred to in paragraph 46A (1) (b) of the Act) partial exemption; and
(c) there is information or a report of a kind that under subregulation (1) is prescribed in relation to the application; and
(d) the amount or volume of production specified in the information or report is different to the amount mentioned in the application;
then information as to why those amounts differ is prescribed information in relation to the application.
Certain applications made in 2011 or a later year
(3) In 2011 or a later year, if:
(a) an audit report has been prepared under the emissions-intensive trade-exposed assistance program; and
(b) the report deals with a site mentioned in an application under subsection 46A (1) of the Act;
then the report is prescribed information.
22Q Information to be included in applications for new entrant site
(1) An application under subsection 46A (1) of the Act for a site that meets the criteria for a new entrant specified in subregulation 22ZD (3) must also include:
(a) information about whether any contracts or other arrangements have been entered into to buy the emissions-intensive trade-exposed activity’s output; and
Note The information need not include the price of the output.
(b) information about commissioning or recommissioning of the equipment that is to carry on the emissions-intensive trade-exposed activity, including a description of when and how the equipment will be constructed, commissioned or recommissioned; and
(c) a statement by the person constructing, commissioning or recommissioning the principal equipment that is to be used to carry on the emissions-intensive trade-exposed activity as to whether the equipment:
(i) will be constructed, commissioned or recommissioned as described in the application; and
(ii) is likely to be ready to produce the relevant product; and
(d) information in general terms about the arrangements that are in place to finance the installation of any equipment at the site; and
(e) a statement of any factors of which the applicant is aware that would stop or delay the carrying out of the emissions-intensive trade-exposed activity or the installation of any equipment at the site.
(2) Paragraph (1) (c) applies only to principal equipment that has not been constructed, commissioned or recommissioned at the time of the application.
22R Information to be included in applications for significantly expanded site
(1) An application under subsection 46A (1) of the Act for a year (the application year) and a site that meets the criteria for a significant expansion specified in subregulation 22ZD (4) must:
(a) describe any relevant equipment that has been, or will be, installed or recommissioned and explain how the relevant equipment will increase the production of the relevant product in the financial year that began 6 months before the application year; and
(b) identify any relevant product the production of which is expected to increase in the financial year that began 6 months before the application year; and
(c) set out the amount or volume of the relevant product referrable to the site that was produced during the financial year that ended 6 months before the application year; and
(d) set out the amount or volume of the relevant product that is reasonably likely to be produced during the financial year that began 6 months before the application year and is referrable to the site; and
(e) state whether any other equipment is to be decommissioned or operated at a lower rate after the new equipment is installed or relevant existing equipment is recommissioned; and
(f) state the maximum productive capacity of the equipment that:
(i) is at the site before the installation of the equipment mentioned in paragraph 22ZD (4) (b); and
(ii) may be used to produce the relevant product; and
(g) state the maximum productive capacity of all of the equipment that is to be used to produce the relevant product after:
(i) the commissioning of the equipment that is to be installed; and
(ii) any existing equipment that is to be decommissioned has been decommissioned; and
(h) identify any contracts or other arrangements that have been entered into to buy the output of the facility; and
Note The information need not include the price of the output.
(i) for new equipment that is being installed at the time of the application, give information about the commissioning of the principal equipment that is to be used to carry on the emissions-intensive trade-exposed activity, including a description of when and how the equipment will be commissioned; and
(j) for new equipment that is being installed at the time of the application, include a statement by the person constructing the principal equipment that is to be used to carry on the activity as to whether the equipment:
(i) will be constructed as described in the application; and
(ii) is likely to be ready to produce the relevant product; and
(k) include information in general terms about the arrangements that are in place to finance the installation of any equipment at the site; and
(l) include a statement of any factors of which the applicant is aware that would stop or delay the carrying out of the emissions-intensive trade-exposed activity or the installation of any equipment at the site.
(2) However, if more than 1 relevant product for an emissions-intensive trade-exposed activity is produced at a site, the information in subregulation (1) must relate only to each relevant product, the expected production of which is directly affected by the use of the equipment.
22S Information to be included if prescribed person is a person prescribed under regulation 22L
(1) If an application under subsection 46A (1) of the Act is made by a prescribed person mentioned in subregulation 22L (1), in addition to the information mentioned in subregulation 22O (1), the application must:
(a) specify the circumstances in which the liable entity (the old liable entity) mentioned in paragraph 22L (1) (b) ceased to be the liable entity; and
(b) provide evidence of the date on which the old liable entity ceased to be the liable entity and the date the liable entity mentioned in paragraph 22L (1) (c) (the new liable entity) became the liable entity; and
(c) provide evidence that both the old and new liable entity have been informed of the application.
(2) If an application under subsection 46A (1) of the Act is made by a prescribed person mentioned in subregulation 22L (2), in addition to the information mentioned in subregulation 22O (1), the application must:
(a) specify the circumstances in which the liable entity (the old liable entity) mentioned in paragraph 22L (2) (a) ceased to be the liable entity; and
(b) provide evidence of the date on which the old liable entity ceased to be the liable entity and the date the liable entity mentioned in paragraph 22L (2) (b) (the new liable entity) became the liable entity; and
(c) provide evidence that both the old and new liable entity have been informed of the application.
22T Information to be included if prescribed person is a person prescribed under regulation 22M
If an application under subsection 46A (1) of the Act is made by a prescribed person mentioned in regulation 22M in addition to the information mentioned in subregulation 22O (1), the application must:
(a) include a description of the liable entities in relation to electricity consumed at the site and the amount of relevant acquisitions expected in relation to each liable entity in the year to which the partial exemption certificate relates; and
(b) provide evidence that the liable entity specified in the certificate and the liable entity for the new certificate have been informed of the application.
22U Information to be verified
(1) This regulation is made for the purposes of subsection 46A (3) of the Act.
(2) Information that is required to be included in an application must be verified by statutory declaration by 1 of the following persons:
(a) a director of the applicant;
(b) a chief executive officer (however described) of the applicant;
(c) the chief financial officer (however described) of the applicant;
(d) the secretary of the applicant.
Subdivision C Time and manner of lodging applications under section 46A of the Act
22V Time for lodging
This Subdivision is made for paragraph 46A (2) (c) of the Act.
22W Time for lodging — applications for 2010
(1) An application under subsection 46A (1) of the Act for a partial exemption certificate in relation to 2010 made by a prescribed person mentioned in regulation 22G, 22H, 22I, 22J or 22K must be made on or before 31 October 2010.
(2) An application under subsection 46A (1) of the Act for a partial exemption certificate in relation to 2010 made by a prescribed person mentioned in regulation 22L or 22M must be made before 1 January 2011.
22X Time for lodging — applications after 2010
(1) An application under subsection 46A (1) of the Act for a partial exemption certificate in relation to year occurring after 2010 made by a prescribed person mentioned in regulation 22G, 22H, 22I, 22J or 22K must be made before 1 January of the year to which the application relates.
(2) An application under subsection 46A (1) of the Act for a partial exemption certificate in relation to a year occurring after 2010 made by a prescribed person mentioned in regulation 22L must be made before 1 January of the year immediately following the year to which the application relates.
(3) An application under subsection 46A (1) of the Act for a partial exemption certificate in relation to a year occurring after 2010 made by a prescribed person mentioned in regulation 22M must be made before 1 July of the year to which the application relates.
22Y Manner of lodging
(1) An application under subsection 46A (1) of the Act must be sent by post or fax to the Regulator.
(2) If the application is sent by fax, the original application must also be sent by post to the Regulator.
Division 5 Calculating amount of partial exemption
Subdivision A General
22Z Method for calculating amount of partial exemption
(1) This Division is made for paragraph 46B (1) (a) of the Act and prescribes the method for calculating the amount of a liable entity’s partial exemption for a year in relation to an emissions-intensive trade-exposed activity and site mentioned in an application under subsection 46A (1) of the Act.
(2) For the purpose of calculating the liable entity’s partial exemption in respect of the emissions-intensive trade-exposed activity, Divisions 2 and 3 of a Part in Schedule 6 set out, respectively:
(a) whether the activity is:
(i) highly emissions-intensive; or
(ii) moderately emissions-intensive; and
(b) the electricity baseline for calculating the amount of the liable entity’s partial exemption in respect of the activity.
(3) Subdivision B sets out the method for calculating the amount of the liable entity’s partial exemption. Subregulation 22ZA (1) contains the formula for the calculation.
(4) Subdivision C sets out matters relating to ASP, a factor in the formula.
(5) Subdivision D sets out matters relating to G, a factor in the formula.
(6) Subdivision E sets out the method for calculating the amount of a partial exemption where the applicant is a prescribed person because of regulation 22L or 22M.
(7) Subdivision F requires the Regulator to estimate and publish the weighted average market price for a REC (see regulation 22ZH).
Subdivision B Method for calculation
22ZA Method
(1) Subject to regulations 22ZF and 22ZG, the method for calculating the amount of the liable entity’s partial exemption for the year in relation to the emissions-intensive trade-exposed activity and site mentioned in the application under subsection 46A (1) of the Act is:
where:
PE is the amount of the liable entity’s partial exemption measured in megawatt hours.
irepresents the liable entity.
a represents the emissions-intensive trade-exposed activity carried on at the site and mentioned in the application.
trepresents the year to which the application relates and during which the activity is, or is to be, carried on at the site.
EP is the electricity baseline set out in Division 3 of a Part (other than Part 1) in Schedule 6 in respect of the activity.
ASP is the amount or volume of relevant product produced by the activity as determined under Subdivision C.
kat, in relation to the year, is the partial exemption assistance rate for the activity for the year and is the sum of:
(a) base kat, as set out in subregulation (2); and
(b) additional kat, as worked out under the formula in subregulation (3).
G is an adjustment for the generation or acquisition of electricity (that does not constitute a relevant acquisition) and is worked out under subregulation 22ZE (1) and expressed as a percentage.
(2) For the factor kat in subregulation (1), base kat is, for a year specified in column 1 of the following table, the percentage specified in:
(a) for a highly emissions-intensive activity — column 2 of the table for that year; and
(b) for a moderately emissions-intensive activity — column 3 of the table for that year.
Year
For a highly emissions-intensive activity (%)
For a moderately emissions-intensive activity (%)
2010
21.60
14.40
2011
32.33
21.55
2012
40.15
26.76
2013
45.12
30.08
2014
49.19
32.79
2015
52.58
35.05
2016
58.85
39.23
2017
63.32
42.22
2018
66.67
44.45
2019
69.27
46.18
2020
71.35
47.57
2021
71.00
47.33
2022
71.00
47.33
2023
71.00
47.33
2024
71.00
47.33
2025
71.00
47.33
2026
71.00
47.33
2027
71.00
47.33
2028
71.00
47.33
2029
71.00
47.33
2030
71.00
47.33
(3) For the factor kat in subregulation (1), additional kat:
(a) is 0; or
(b) if the circumstances specified in subregulation (4) apply, is worked out in accordance with the following formula:
where:
estimated REC price is, in relation to the year, the Regulator’s reasonable estimate (as published on the Regulator’s website in accordance with regulation 22ZH) for the volume weighted average market price of a REC for the 12 month period ending on 30 September in the previous year.
additional assistance percentage is the percentage specified in subregulation (5).
(4) For paragraph (3) (b), the specified circumstances are as follows:
(a) the Carbon Pollution Reduction Scheme Act 2010 has received the Royal Assent;
(b) the year is 2011 or a later year;
(c) the estimated REC price is greater than $40.
(5) For the formula in subregulation (3), the additional assistance percentage is, for a year specified in column 1 of the following table, the percentage specified in:
(a) for a highly emissions-intensive activity — column 2 of the table for that year; and
(b) for a moderately emissions-intensive activity — column 3 of the table for that year.
Year
For a highly emissions-intensive activity (%)
For a moderately emissions-intensive activity (%)
2011
68.40
45.60
2012
57.67
38.45
2013
49.85
33.24
2014
44.88
29.92
2015
40.81
27.21
2016
37.42
24.95
2017
31.15
20.77
2018
26.68
17.78
2019
23.33
15.55
2020
20.73
13.82
2021
18.65
12.43
2022
19.00
12.67
2023
19.00
12.67
2024
19.00
12.67
2025
19.00
12.67
2026
19.00
12.67
2027
19.00
12.67
2028
19.00
12.67
2029
19.00
12.67
2030
19.00
12.67
(6) If there are multiple relevant products for the same emissions-intensive trade-exposed activity, the formula in subsection (1) must be applied to each of those products and the result summed to calculate the amount of the partial exemption.
Subdivision C Matters relating to factor ASP
22ZB Factor — ASP
(1) For the factor ASP in subregulation 22ZA (1), the amount or volume of relevant product for 2010 is the amount or volume:
(a) that:
(i) was produced by the applicant in the financial year commencing on 1 July 2006, 1 July 2007 or 1 July 2008; or
(ii) if no relevant product was produced in any of those financial years — is reasonably likely to be produced in the financial year commencing on 1 July 2009; and
(b) that is set out in the application; and
(c) that the Regulator is, in accordance with regulation 22ZC, satisfied is accurate or is the best estimate of the amount or volume possible in all the circumstances; and
(d) is referrable to the site mentioned in the application.
(2) For the factor ASP in subregulation 22ZA (1), the amount or volume relevant product for a year after 2010 is the amount or volume that:
(a) is set out in the application; and
(b) the Regulator is, in accordance with regulation 22ZC, satisfied:
(i) is accurate or the best estimate of the amount or volume possible in all the circumstances; and
(ii) has been correctly calculated using the formula in subregulation (3).
(3) For subparagraph (2) (b) (ii), the formula is:
where:
SPiatfinprev is the amount or volume of the relevant product produced in the financial year that ended 6 months before the year to which the application relates and that is referrable to the site mentioned in the application.
EASPiatfincurr is the new or expected additional production (within the meaning of subregulation 22ZD (1)) for:
(a) the liable entity; and
(b) the site that meets:
(i) for a new entrant — 1 of the criteria specified in subregulation 22ZD (3); or
(ii) for a significant expansion — the criteria specified in regulation 22ZD (4).
STiatfincurr is, subject to subregulation (4), the adjustment for the previous financial year’s production, worked out using the formula:
where:
SPiatfinprev is the amount or volume of the relevant product produced in the financial year that ended 6 months before the year to which the application relates and referrable to the site mentioned in the application.
SPiatfinprev-1 is, subject to subregulation (5), the amount or volume of the relevant product produced in the financial year that began 30 months before the year to which the application relates and that is referrable to the site mentioned in the application.
EASPiatfinprev is the amount or volume that related to expected production for the relevant site in the financial year that began 18 months before the year to which the application relates and was referrable to the site mentioned in the application.
(4) In subregulation (3), the factor STiatfincurr is 0 in relation to a site:
(a) that meets the new entrant criteria specified in subregulation 22ZD (3); or
(b) in respect of which no partial exemption certificate was issued in the year preceding the application for the emissions-intensive trade-exposed activity and site to which the application relates.
(5) For the 2011 year, in the formula for STiatfincurr in subregulation (3), factor SPiatfinprev-1 is the amount or volume of relevant product that was set out in the application for 2010.
22ZC Regulator must be satisfied about amount or volume
(1) For paragraph 22ZB (1) (c), the Regulator must be satisfied that the amount or volume is accurate or the best estimate of the relevant amount or volume possible in all the circumstances.
(2) For paragraph 22ZB (2) (b), the Regulator must be satisfied that the amount or volume:
(a) is accurate or the best estimate of the relevant amount or volume possible in all the circumstances; and
(b) correctly calculated under subregulation 22ZB (3).
(3) Under subregulations (1) and (2), the Regulator must be so satisfied in relation to:
(a) the year to which the application relates; and
(b) the liable entity that is the subject of the application; and
(c) the period during which the emissions-intensive trade‑exposed activity is carried on; and
(d) the site that is mentioned in the application.
(4) The Regulator must, when deciding under subregulation (1) or (2), have regard to the following:
(a) if the amount or volume relates to an amount or volume that was previously provided to the Department of Climate Change and Energy Efficiency in the development of the emissions-intensive trade-exposed assistance program — the amount or volume that was so provided and any audit report that accompanied that information;
(b) if the emissions-intensive trade-exposed assistance program has commenced — the considerations that must be applied under that program in relation to an application for free Australian emissions units in respect of an equivalent amount or volume of relevant product;
(c) if the emissions-intensive trade-exposed assistance program has not commenced — the following matters in relation to the measurement of an amount or volume of relevant product:
(i) any relevant requirements imposed by or under the National Measurement Act 1960;
(ii) the way in which the amount or volume of relevant product is measured by the industry;
(iii) accredited industry test methods for measuring the amount or volume of relevant product;
(iv) whether the measurement of the amount or volume of the relevant product is frequent enough to produce data that is representative and unbiased;
(v) the risk of the relevant product not satisfying the qualities required by Schedule 6;
(vi) the administrative costs in implementing more accurate testing methods for measuring the amount or volume of relevant product at the site;
(d) any other relevant matter.
22ZD Factor — EASPiatfincurr
New or expected additional production
(1) For the factor EASPiatfincurr in subregulation 22ZB (3), new or expected additional production is, if the site meets the criteria for a new entrant, the amount or volume of relevant product that is reasonably likely to be produced in the financial year that began six months before the year to which the application relates and that is referrable to that site.
(2) For the factor EASPiatfincurr in subregulation 22ZB (3), new or expected additional production is, if the site meets the criteria for a significant expansion, the amount or volume of the relevant product that:
(a) is reasonably likely to be produced in the financial year that began six months before the year to which the application relates; and
(b) exceeds the amount of the production of the relevant product produced in the previous financial year; and
(c) is referrable to that site.
Criteria for new entrant site
(3) For subparagraph (b) (i) of the factor EASPiatfincurr in subregulation 22ZB (3), the specified criteria are:
(a) the emissions-intensive trade-exposed activity mentioned in the application in relation to the site has not been carried on at that site in the financial year that began 18 months before the year to which the application relates; or
(b) all of the following:
(i) the emissions-intensive trade-exposed activity mentioned in the application in relation to the site was carried on for the first time at that site in the financial year that began 18 months before the year to which the application relates;
(ii) no application for a partial exemption certificate was made in relation to the carrying on of that activity at that site for the previous year; or
(c) all of the following:
(i) the emissions-intensive trade-exposed activity mentioned in the application in relation to the site commenced to be carried on again at the site in the financial year that began 18 months before the year to which the application relates after a period of more than 12 months during which the activity was not carried on at the site;
(ii) no application for a partial exemption certificate was made in relation to the carrying on of that activity at that site for the previous year.
Criteria for significant expansion site
(4) For subparagraph (b) (ii) of the factor EASPiatfincurr in subregulation 22ZB (3), the specified criteria are:
(a) an emissions-intensive trade-exposed activity was carried on at the site in the year preceding the year to which the application relates; and
(b) equipment has been installed, or is to be installed, at the site to carry on the activity; and
(c) the equipment has not previously been taken into account under these Regulations in relation to the significant expansion of a site; and
(d) for equipment that has been installed — the equipment was first fully installed at the site not more than 4 and a half years before the start of the year to which the application relates; and
(e) for equipment that is to be installed — the equipment is expected to be installed, or substantially installed, within 6 months after the end of the year to which the application relates; and
(f) after the equipment is commissioned, and any existing equipment that is to be decommissioned has been decommissioned, the maximum productive capacity of the equipment used to produce the relevant product will be more than 20% greater than the maximum productive capacity of the equipment that existed before the installation.
(5) In paragraph (4) (f), a reference to the equipment that existed before the installation does not include decommissioned equipment that exists at the site and that:
(a) has not been used since the equipment was installed; and
(b) is not proposed to be used for at least 12 months after the application year.
(6) In subregulation (4), equipment means equipment that is used, or is to be used, to carry on an emission-intensive trade‑exposed activity, including the following:
(a) an apparatus;
(b) an appliance;
(c) a boiler;
(d) a chimney;
(e) a crane;
(f) a device;
(g) a dredge;
(h) a dryer;
(i) an electrolytic cell;
(j) an engine;
(k) a furnace;
(l) a generator;
(m) an incinerator;
(n) an instrument;
(o) a kiln;
(p) a machine;
(q) an oven;
(r) plant;
(s) a retort;
(t) a structure;
(u) a tool.
Subdivision D Matters relating to factor G
22ZE Factor — G
(1) For subregulation 22ZA (1), G is worked out using the following formula:
where:
ECiatfinprevis the amount of electricity (measured in MWh) consumed at the site at which the activity occurs in the financial year that ended 6 months before the year to which the application relates.
EGiatfinprevis, for the financial year that ended 6 months before the year to which the application relates, the sum of the following amounts of electricity (measured in MWh):
(a) the amount of electricity generated and consumed, at the site for which there is no relevant acquisition; and
(b) the amount of electricity delivered to the site for which no relevant acquisition occurs between the point of generation and the point of use.
(2) For the purposes of working out G using the formula in subregulation (1), electricity generation from an electricity generator with a nameplate rating of less than 1 MW may be disregarded.
Subdivision E Method for calculation if liable entity changes and new certificate is issued
22ZF Prescribed method if liable entity changes and new certificate is issued — paragraph 46B (1) (a) of the Act
(1) If:
(a) a prescribed person is issued a partial exemption certificate in relation to the liable entity (the old liable entity) set out in the application made by that person under subsection 46A (1) of the Act; and
(b) during the same year, the prescribed person applies for another partial exemption certificate in relation to another liable entity (the second liable entity) as a prescribed person mentioned in regulation 22L;
the amount of the second liable entity’s partial exemption is calculated in accordance with the following formula:
where:
OL is the amount of the partial exemption, expressed in megawatt hours, set out in the partial exemption certificate issued in relation to the old liable entity.
D is the number of days in the year for which the second liable entity will be the liable entity in relation to the partial exemption.
year’s days is the number of days in the year to which the partial exemption certificates relate.
(2) If:
(a) the Regulator issues a partial exemption certificate mentioned in paragraph (1) (b); and
(b) during the same year, the prescribed person applies for another partial exemption certificate in relation to another liable entity (the third liable entity) as a prescribed person mentioned in regulation 22L;
the amount of the third liable entity’s partial exemption is calculated in accordance with the following formula:
where:
OL is the amount of the partial exemption, expressed in megawatt hours, set out in the partial exemption certificate issued in relation to the second liable entity.
D is the number of days in the year for which the third liable entity will be the liable entity in relation to the partial exemption.
OLD is the number of days used as D in subregulation (1).
22ZG Prescribed method if there is a second liable entity and new certificate is issued — paragraph 46B (1) (a) of the Act
If:
(a) a prescribed person is issued a partial exemption certificate in relation to the liable entity (the first liable entity) set out in the application made by that person under subsection 46A (1) of the Act; and
(b) during the same year, the prescribed person applies for another partial exemption certificate in relation to another liable entity (the second liable entity) as a prescribed person mentioned in regulation 22M;
the amount of the second liable entity’s partial exemption is calculated in accordance with the following formula:
where:
OL is the amount of the partial exemption, expressed in megawatt hours, set out in the partial exemption certificate issued in relation to the first liable entity.
SL is the reasonable estimate of the expected relevant acquisitions of electricity consumed at the site by the second liable entity in the year to which the partial exemption relates.
FL is the reasonable estimate of the expected relevant acquisitions of electricity consumed at the site by the first liable entity in the year to which the partial exemption certificate relates.
Subdivision F Regulator to estimate and publish volume weighted average market price for REC
22ZH Regulator must estimate and publish weighted average market price for REC
(1) The Regulator must, each year (the estimate year), estimate the volume weighted average market price for a REC for the following year.
(2) The Regulator must publish details of the estimate on the Regulator’s website by 31 October of the estimate year.
(3) The Regulator must also publish on the Regulator’s website a brief description of the following:
(a) the methods used by the Regulator to:
(i) arrive at the estimate; and
(ii) weigh the prices and volumes for RECs;
(b) details of the sources of information available to the Regulator to arrive at the estimate.
(4) The information in subregulation (3) must be published:
(a) by 31 October of the first estimate year; and
(b) at such subsequent times as the Regulator considers necessary to maintain the accuracy of the information.
Division 6 Form of partial exemption certificate
22ZI Prescribed information — paragraph 46B (1) (b) of the Act
This Division prescribes information for paragraph 46B (1) (b) of the Act.
22ZJ Partial exemption certificate information
The following information is prescribed information:
(a) a unique identification number for the certificate as determined by the Regulator;
(b) the name of the person to whom the certificate is issued;
(c) the name of the liable entity to whom the application relates (as referred to in paragraph 46A (1) (b) of the Act);
(d) the site and the emissions-intensive trade-exposed activity to which the application relates;
(e) the year to which the application relates;
(f) the date the certificate is issued;
(g) the amount of production that was used in the determination of the liable entity’s partial exemption for the year in relation to the site and the emissions-intensive trade-exposed activity;
(h) the percentage calculated in accordance with subregulation 22ZE (1) and used in the determination of the liable entity’s partial exemption for the year in relation to the site and the emissions-intensive trade-exposed activity;
(i) if the certificate has been amended, the date of the amendments and an indication of the amendments made.
Division 7 Prescribed period for issuing partial exemption certificates
22ZK Prescribed period
This Division is made for subsection 46B (2) of the Act.
22ZL Prescribed period for issuing partial exemption certificates for 2010 and 2011
(1) If:
(a) a prescribed person has applied under subsection 46A (1) of the Act in relation to 2010 or 2011; and
(b) the Regulator did not seek further information in respect of the application;
then the Regulator must issue the partial exemption certificate within the period of 60 days after receiving the application.
(2) If:
(a) a prescribed person has applied under subsection 46A (1) of the Act in relation to 2010 or 2011; and
(b) the Regulator did seek further information in respect of the application;
then the Regulator must issue the partial exemption certificate within the period of 45 days after receiving the further information.
22ZM Prescribed period for issuing partial exemption certificates for 2012 and later years
(1) If:
(a) a person has applied under subsection 46A (1) of the Act in relation to 2012 or a later year (the relevant year); and
(b) an application has also been made under the emissions-intensive trade-exposed assistance program in relation to the emissions-intensive trade-exposed activity that is the subject of the application under subsection 46A (1) of the Act; and
(c) the application under the program was made for the financial year that immediately precedes the relevant year;
then the Regulator must issue the partial exemption certificate within:
(d) 30 days after a decision to approve the application under the program; or
(e) 30 days after receiving the application under subsection 46A (1) of the Act;
whichever occurs later.
(2) If:
(a) a person has applied under subsection 46A (1) of the Act in relation to 2012 or a later year (the relevant year); and
(b) no application of a kind referred to in paragraph (1) (b) has been made in relation to the emissions-intensive trade‑exposed activity the subject of the application under subsection 46A (1) of the Act; and
(c) the Regulator did not seek further information in respect of the application;
then the Regulator must issue the partial exemption certificate within the period of 60 days after receiving the application.
(3) If:
(a) a person has applied under subsection 46A (1) of the Act in relation to 2012 or a later year (the relevant year); and
(b) no application of a kind referred to in paragraph (1) (b) has been made in relation to the emissions-intensive trade‑exposed activity that is the subject of the application; and
(c) the Regulator did seek further information in respect of the application;
then the Regulator must issue the partial exemption certificate within the period of 45 days after receiving the further information.
Division 8 Amending partial exemption certificates
Subdivision A Amendment of partial exemption certificates on application — paragraph 46C (2) (a) of the Act
22ZN Amendment upon request
(1) This regulation prescribes matters for paragraph 46C (2) (a) of the Act.
(2) The matters that the Regulator must have regard to are the following:
(a) whether the information in the partial exemption certificate is inaccurate;
(b) whether the Regulator miscalculated the amount of the partial exemption given the amount of the relevant product that the Regulator had identified in applying the method prescribed in the regulations to the application under subsection 46A (1) of the Act;
(c) whether the liable entity set out in the partial exemption certificate has consented in writing to the amendment;
(d) whether the request for an amendment is based upon issues that were considered in the granting of the partial exemption certificate;
(e) whether the request for an amendment is made before the end of the year to which the partial exemption certificate relates.
Subdivision B Amendment of partial exemption certificate on Regulator’s own initiative — subsection 46C (3) of the Act
22ZO Amendment of partial exemption certificate — subsection 46A (3) of the Act
Regulations 22ZP, 22ZQ, 22ZR and 22ZS each prescribe a circumstance for subsection 46C (3) of the Act.
22ZP Circumstance — if change of liable entity
(1) If:
(a) a partial exemption certificate (the first certificate) is issued in relation to a liable entity (the first liable entity) and a year following an application by a prescribed person; and
(b) the prescribed person becomes a prescribed person under regulation 22L; and
(c) the prescribed person makes an application under subsection 46A (1) of the Act in relation to another liable entity (the second liable entity) and the year; and
(d) in issuing another certificate (the second certificate), the Regulator is satisfied that the evidence referred to in paragraphs 22S (1) (b) and (c) evidences the matters stated in those paragraphs;
then the Regulator may amend the first certificate.
(2) The amendment must reduce the amount of the first liable entity’s partial exemption set out in the certificate that is attributable to the activity by the number calculated in accordance with the following formula:
where:
OL is the amount of the partial exemption set out in the first partial exemption certificate expressed as megawatt hours.
D is the number of days in the year for which the second liable entity will be the liable entity.
year’s days is the number of days in the year to which the partial exemption certificates relate.
(3) If:
(a) the Regulator amends the first certificate under subregulation (1) and issues another certificate as mentioned in paragraph (1) (d) (the second certificate) in relation to the second liable entity; and
(b) the prescribed person again becomes a prescribed person under regulation 22L; and
(c) the prescribed person makes an application under subsection 46A (1) of the Act in relation to another liable entity (the third liable entity) and the year; and
(d) in issuing another certificate (the third certificate) in respect of the third liable entity, the Regulator is satisfied that the evidence referred to in paragraphs 22S (2) (b) and (c) evidences the matters stated in those paragraphs;
then the Regulator may again, on 1 occasion only, amend the second certificate.
(4) The amendment must reduce the amount of the second liable entity’s partial exemption set out in the certificate that is attributable to the activity by the number calculated in accordance with the following formula:
where:
OL is the amount of the partial exemption set out in the first partial exemption certificate expressed as megawatt hours.
D is the number of days in the year for which the third liable entity will be the liable entity in relation to the partial exemption.
OLD is the number of days used as D in subregulation (2).
22ZQ Circumstances — if there is a second liable entity
(1) If:
(a) a partial exemption certificate (the first certificate) is issued in relation to a liable entity (the first liable entity) and a year following an application by a prescribed person; and
(b) the prescribed person becomes a prescribed person under regulation 22M; and
(c) the prescribed person makes an application under subsection 46A (1) of the Act in relation to another liable entity (the second liable entity) and the year; and
(d) in issuing another certificate (the second certificate), the Regulator is satisfied that the second liable entity is the liable entity in respect of the electricity consumed at the site at the beginning of the year;
then the Regulator may amend the first certificate.
(2) The amendment must reduce the amount of the first liable entity’s partial exemption set out in the certificate that is attributable to the activity by the number calculated in accordance with the following formula:
where:
OL is the amount of the partial exemption, expressed as megawatt hours, set out in the first certificate in relation to the first liable entity.
SL is the reasonable estimate of the expected relevant acquisitions of electricity consumed at the site by the second liable entity in the year to which the partial exemption relates.
FL is the reasonable estimate of the expected relevant acquisitions of electricity consumed at the site by the first liable entity in the year to which the partial exemption certificate relates.
22ZR Circumstance — if activity ceases at site
(1) If:
(a) a partial exemption certificate has been issued in respect of an emissions-intensive trade-exposed activity, a site and a year; and
(b) during the year, the Regulator becomes satisfied that:
(i) the activity has not been conducted at the site for a period of at least 3 months; and
(ii) it is unlikely that the activity will be conducted again at the site for at least 9 months from the end of the period mentioned in subparagraph (i); and
then, subject to subregulation (3), the Regulator may amend the certificate.
(2) The amendment must reduce the amount of the partial exemption set out in the certificate that is attributable to the activity by the number calculated in accordance with the following formula:
where:
OL is the amount of the partial exemption set out in the partial exemption certificate expressed as megawatt hours.
D is the number of days in the year that the activity was not, or is not likely to be, conducted.
year’s days is the number of days in the year to which the partial exemption certificate relates.
(3) The Regulator must not amend the certificate if the certificate has previously been amended under regulation 22ZP because the liable entity set out in the certificate ceased to be a liable entity for the site:
(a) in the circumstances mentioned in paragraph 22L (1) (b) or paragraph 22L (2) (a); and
(b) before the last time during the year when the emissions-intensive trade-exposed activity was conducted at the site.
22ZS Circumstance — if partial exemption certificate is inaccurate
(1) If:
(a) the Regulator becomes aware that a partial exemption certificate is inaccurate; and
(b) the Regulator becomes aware during the year to which the certificate relates;
then, subject to subregulation (2), the Regulator may amend the certificate to correct the inaccuracy.
(2) The Regulator must not amend the partial exemption certificate unless the Regulator has, in writing, advised the following persons about the inaccuracy and the proposed correction:
(a) the prescribed person to whom the certificate has been issued;
(b) the liable entity in respect of which the certificate has been issued.
Division 9 Record keeping
22ZT Records to be kept by persons issued with a partial exemption certificate
For paragraph 160 (3A) (b) of the Act, if in relation to a partial exemption certificate, the percentage calculated in accordance with subregulation 22ZE (1) is less than 100%, the following matters are prescribed:
(a) the amount of the electricity consumed at the site during the financial year that started 6 months before the year to which the partial exemption relates;
(b) the amount of electricity generated and consumed, at the site for which there is no relevant acquisition of electricity during that financial year;
(c) the amount of electricity delivered to the site for which no relevant acquisition occurs between the point of generation and the point of use.
[2] After Schedule 5
insert
Schedule 6 Emissions-intensive trade-exposed activities
(regulation 22D)
Part 1 Preliminary
601 Preliminary
(1) In this Schedule:
(a) Division 1 of a Part (other than this Part) specifies activities that are emissions-intensive trade-exposed activities; and
(b) Division 2 of the Part sets out whether the activity is:
(i) highly emissions-intensive; or
(ii) moderately emissions-intensive; and
(c) Division 3 of the Part sets out the electricity baseline for calculating the amount of a liable entity’s partial exemption in respect of the activity.
Note The matters mentioned in paragraphs (b) and (c) are required for the purpose of calculating the amount of a liable entity’s partial exemption for a year in relation to an emissions-intensive trade-exposed activity and site — see paragraph 46B (1) (a) of the Act. The method for calculating the relevant amount is set out in regulations 22Z to 22ZH.
(2) In this Schedule, unless the contrary intention appears:
(a) a concentration of a substance that is expressed as a percentage is a percentage with respect to mass; and
(b) a reference to the moisture content of a substance expressed as a percentage is a percentage with respect to mass.
Part 2 Production of glass containers
Division 1 Production of glass containers
602 Production of glass containers
(1) The production of glass containers is the physical and chemical transformation of silica (silicon dioxide (SiO2)) and other raw and recycled materials (such as cullet) to produce blown or pressed glass containers, by controlled melting and forming in a contiguous process.
(2) The production of glass containers is specified as an emissions‑intensive trade-exposed activity.
Division 2 Classification of activity
603 Classification of activity
The production of glass containers is a moderately emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
604 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity’s partial exemption in respect of the production of glass containers is 0.308 MWh per tonne of blown and pressed glass containers that are:
(a) produced by carrying on the emissions-intensive trade‑exposed activity; and
(b) of saleable quality.
Note Saleable quality is defined in regulation 22C.
Part 3 Production of bulk flat glass
Division 1 Production of bulk flat glass
605 Production of bulk flat glass
(1) The production of bulk flat glass is the physical and chemical transformation of silica (silicon dioxide (SiO2)) and other raw and recycled materials (such as cullet) to produce bulk flat glass products, including wired glass and patterned glass, by controlled melting and forming in a contiguous process.
(2) The production of bulk flat glass is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
606 Classification of activity
The production of bulk flat glass is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
607 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity’s partial exemption in respect of the production of bulk flat glass is 0.276 MWh per tonne of bulk flat glass that is:
(a) produced by carrying on the emissions-intensive trade‑exposed activity; and
(b) of saleable quality.
Note Saleable quality is defined in regulation 22C.
Part 4 Production of methanol
Division 1 Production of methanol
608 Production of methanol
(1) The production of methanol is the chemical transformation of 1 or more of the following:
(a) hydrocarbons;
(b) hydrogen feedstocks;
(c) carbon feedstocks;
(d) oxygen feedstocks;
to produce liquid methanol (CH3OH) in which the concentration of methanol is equal to or greater than 98%.
(2) The production of methanol is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
609 Classification of activity
The production of methanol is specified as a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
610 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity’s partial exemption in respect of the production of methanol is 0.490 MWh per tonne of 100% equivalent methanol (CH3OH) that is produced by carrying on the emissions-intensive trade-exposed activity.
Part 5 Production of carbon black
Division 1 Production of carbon black
611 Production of carbon black
(1) The production of carbon black is the chemical transformation of gaseous or liquid hydrocarbons to produce a colloidal carbon material (known as ‘carbon black’) in the form of spheres or of fused aggregates of the spheres.
(2) The particle size of the colloidal carbon must be below 1 000nm in at least 1 dimension.
(3) The production of carbon black is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
612 Classification of activity
The production of carbon black is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
613 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity’s partial exemption in respect of the production of carbon black is 0.514 MWh per tonne, on a dry weight basis, of pelletised carbon black that is:
(a) produced by carrying on the emissions-intensive trade‑exposed activity; and
(b) of saleable quality.
Note Saleable quality is defined in regulation 22C.
Part 6 Production of white titanium dioxide (TiO2) pigment
Division 1 Production of white titanium dioxide (TiO2) pigment
614 Production of white titanium dioxide (TiO2) pigment
(1) The production of white titanium dioxide (TiO2) pigment is the chemical transformation of 1 or more of the following:
(a) rutile (TiO2);
(b) synthetic rutile (TiO2);
(c) ilmenite (FeTiO3);
(d) leucoxene;
(e) titanium slag that has an iron (Fe) concentration of greater than or equal to 7%;
to produce white titanium dioxide (TiO2) pigment.
(2) The white titanium dioxide (TiO2) pigment must:
(a) conform with ASTM classification D476-00; and
(b) have an iron (Fe) concentration of less than or equal to 0.5%.
(3) The production of white titanium dioxide (TiO2) pigment is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
615 Classification of activity
The production of white titanium dioxide (TiO2) pigment is a moderately emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
616 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity’s partial exemption in respect of the production of white titanium dioxide (TiO2) pigment is 0.986 MWh per tonne of white titanium dioxide pigment that:
(a) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(b) conforms with ASTM classification D476-00; and
(c) has an iron (Fe) concentration of less than or equal to 0.5%; and
(d) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
Part 7 Production of silicon
Division 1 Production of silicon
617 Production of silicon
(1) The production of silicon is the chemical transformation of silica (silicon dioxide (SiO2)) to produce silicon (Si) with a concentration of silicon equal to or greater than 98.0%, conducted in accordance with the overall chemical equation:
(2) The production of silicon is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
618 Classification of activity
The production of silicon is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
619 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity’s partial exemption in respect of the production of silicon is 11.7 MWh per tonne of silicon that:
(a) has a concentration of silicon equal to or greater than 98.0%; and
(b) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(c) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
Part 8 Smelting zinc
Division 1 Smelting zinc
620 Smelting zinc
(1) Smelting zinc is the chemical transformation of either or both of:
(a) concentrated mineralised zinc compounds; and
(b) zinc-bearing secondary materials;
to produce zinc metal (Zn) with a concentration of zinc equal to or greater than 99.95%.
(2) Smelting zinc is specified as an emissions-intensive trade‑exposed activity.
Division 2 Classification of activity
621 Classification of activity
Smelting zinc is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
622 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity’s partial exemption in respect of smelting zinc is 4.25 MWh per tonne of zinc that:
(a) has a concentration of zinc equal to or greater than 99.95%; and
(b) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(c) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
Part 9 Integrated production of lead and zinc
Division 1 Integrated production of lead and zinc
623 Integrated production of lead and zinc
(1) The integrated production of lead and zinc is the chemical transformation of either or both of:
(a) concentrated mineralised lead compounds, with or without additional lead-bearing secondary materials; and
(b) concentrated mineralised zinc compounds, with or without additional zinc-bearing secondary materials;
to produce:
(c) lead metal (Pb) with a concentration of lead equal to or greater than 99.97%; and
(d) zinc in fume (Zn) with a concentration of zinc equal to or greater than 60%.
(2) The integrated production of lead and zinc is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
624 Classification of activity
The integrated production of lead and zinc is a moderately emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
625 Electricity baseline for product
(1) For the production of lead metal (Pb), the basis for calculating the amount of a liable entity’s partial exemption is 0.355 MWh per tonne of lead metal that:
(a) has a concentration of lead equal to or greater than 99.97%; and
(b) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(c) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
(2) For the production of zinc in fume (Zn), the basis for calculating the amount of a liable entity’s partial exemption is 0.820 MWh per tonne of zinc in fume that:
(a) has a concentration of zinc equal to or greater than 60%; and
(b) is produced by carrying on the emissions-intensive trade‑exposed activity.
Part 10 Aluminium smelting
Division 1 Aluminium smelting
626 Aluminium smelting
(1) Aluminium smelting is the physical and chemical transformation of alumina (aluminium oxide (Al2O3)) into saleable aluminium metal (Al).
(2) Aluminium smelting is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
627 Classification of activity
Aluminium smelting is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
628 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity’s partial exemption in respect of aluminium smelting is 15.0 MWh per tonne of primary aluminium (Al) that:
(a) has a concentration of aluminium equal to or greater than 98%; and
(b) is produced as part of carrying on the emissions-intensive trade-exposed activity; and
(c) is weighed after electrolysis but before casting.
Part 11 Production of high purity ethanol
Division 1 Production of high purity ethanol
629 Production of high purity ethanol
(1) The production of high purity ethanol is the chemical transformation of fermentable sugars (such as C6H12O6, C5H10O5, C12H22O11 or C18H32O16) to ethanol (C2H5OH) and subsequent purification process to obtain a solution of high purity ethanol where the concentration of ethanol is equal to or greater than 95% with respect to volume.
(2) The production of high purity ethanol is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
630 Classification of activity
The production of high purity ethanol is a moderately emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
631 Electricity baseline for product
The electricity baseline for calculating the amount of a liable entity’s partial exemption in respect of the production of high purity ethanol is 0.168 MWh per kilolitre of 100% equivalent ethanol (C2H5OH) at 20 °C that is produced by carrying on the emissions-intensive trade-exposed activity, assuming a density of ethanol of 789.24 kg/m3 at 20 °C.
Part 12 Production of magnesia
Division 1 Production of magnesia
632 Production of magnesia
(1) The production of magnesia is the chemical and physical transformation of magnesite (magnesium carbonate (MgCO3)) into 1 or more of the following magnesia products:
(a) caustic calcined magnesia that:
(i) has a concentration of magnesium oxide (MgO) equal to or greater than 75%; and
(ii) is burned between 650 °C and 1 200 °C;
(b) deadburned magnesia that:
(i) has a concentration of magnesium oxide equal to or greater than 85%; and
(ii) has grain density of 2.85 g/cm3 to 3.45 g/cm3; and
(iii) is burned between 1 300 °C and 2 200 °C;
(c) electrofused magnesia that:
(i) has a concentration of magnesium oxide equal to or greater than 90%; and
(ii) has grain density of greater than 3.45 g/cm3; and
(iii) is fused at temperatures in excess of 2 750 °C.
(2) The production of magnesia is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
633 Classification of activity
The production of magnesia is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
634 Electricity baseline for product
(1) For the production of caustic calcined magnesia, the basis for calculating the amount of a liable entity’s partial exemption is 0.0757 MWh per tonne of caustic calcined magnesia on a dry weight basis that:
(a) has a concentration of magnesium oxide (MgO) equal to or greater than 75%; and
(b) is produced by, or as part of, carrying on the emissions-intensive trade-exposed activity; and
(c) is of saleable quality;
whether or not it is later transformed into deadburned magnesia or electrofused magnesia.
Note Saleable quality is defined in section 22C.
(2) For the production of deadburned magnesia, the basis for calculating the amount of a liable entity’s partial exemption is 0.202 MWh per tonne of deadburned magnesia on a dry weight basis that:
(a) has a concentration of magnesium oxide equal to or greater than 85%; and
(b) has grain density of 2.85 g/cm3 to 3.45 g/cm3; and
(c) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(d) is of saleable quality.
Note Saleable quality is defined in section 22C.
(3) For the production of electrofused magnesia, the basis for calculating the amount of a liable entity’s partial exemption is 2.45 MWh per tonne of electrofused magnesia on a dry weight basis that:
(a) has a concentration of magnesium oxide equal to or greater than 90%; and
(b) has grain density of greater than 3.45 g/cm3; and
(c) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(d) is of saleable quality.
Note Saleable quality is defined in section 22C.
Part 13 Manufacture of newsprint
Division 1 Manufacture of newsprint
635 Manufacture of newsprint
(1) The manufacture of newsprint is the physical or chemical transformation of any or all of woodchips, sawdust, wood pulp and recovered paper into rolls of uncoated newsprint that:
(a) has a grammage range of 30 g/m2 to 80 g/m2; and
(b) has a moisture content in the range of 6% to 11%; and
(c) is generally usable for newspaper products;
through an integrated process.
(2) The manufacture of newsprint is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
636 Classification of activity
The manufacture of newsprint is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
637 Electricity baseline for product
(1) For the manufacture of uncoated newsprint that:
(a) has a grammage range of 30 g/m2 to 80 g/m2; and
(b) has a moisture content in the range of 6% to 11%; and
(c) is generally usable for newspaper products;
the electricity baseline for calculating the amount of a liable entity’s partial exemption is 0.697 MWh per air dried tonne of rolls of uncoated newsprint of saleable quality produced by carrying on the emissions-intensive trade-exposed activity.
Note saleable quality is defined in regulation 22C.
(2) For the production of pulp from either or both of woodchips and sawdust, the basis for calculating the amount of a liable entity’s partial exemption is 2.48 MWh per tonne of bone dried equivalent pulp that is:
(a) used in the integrated process of manufacturing newsprint; and
(b) produced as part of carrying on the emissions-intensive trade-exposed activity.
(3) For the production of pulp from recovered paper, the basis for calculating the amount of a liable entity’s partial exemption is 0.431 MWh per tonne of bone dried equivalent pulp that is:
(a) used in the integrated process of manufacturing newsprint; and
(b) produced as part of carrying on the emissions-intensive trade-exposed activity.
(4) For this Part, an amount of pulp or paper that is used as a basis for calculating the amount of a liable entity’s partial exemption for 1 of the following emissions-intensive trade-exposed activities:
(a) the manufacture of newsprint;
(b) dry pulp manufacturing;
(c) cartonboard manufacturing;
(d) packaging and industrial paper manufacturing;
(e) printing and writing paper manufacturing;
(f) tissue paper manufacturing;
does not count for the purpose of the basis for allocation of another of those emissions-intensive trade-exposed activities.
Part 14 Dry pulp manufacturing
Division 1 Dry pulp manufacturing
638 Dry pulp manufacturing
(1) Dry pulp manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into either or both of rolls and bales of dry pulp that:
(a) has a moisture content in the range of 4% to 14%; and
(b) is generally useable in either or both of:
(i) paper manufacturing; and
(ii) the production of sanitary products (such as a fluff pulp layer in sanitary products).
(2) Dry pulp manufacturing is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
639 Classification of activity
Dry pulp manufacturing is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
640 Electricity baseline for product
(1) For dry pulp manufacturing, the basis for calculating the amount of a liable entity’s partial exemption is 0.404 MWh per tonne of either or both of rolls and bales of dry pulp that:
(a) has a moisture content in the range of 4% to 14%; and
(b) is generally useable in either or both of:
(i) paper manufacturing; and
(ii) the production of sanitary products (such as a fluff pulp layer in sanitary products); and
(c) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(d) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
(2) For the production of pulp from either or both of woodchips and sawdust as part of dry pulp manufacturing, the basis for calculating the amount of a liable entity’s partial exemption is 0.448 MWh per total air dried tonne (applying a 10% moisture content) of equivalent pulp that is:
(a) produced from either or both of woodchips and sawdust;
(b) used in the process of manufacturing dry pulp; and
(c) produced as part of carrying on the emissions-intensive trade-exposed activity.
(3) For this Part, an amount of pulp or paper that is used as a basis for calculating the amount of a liable entity’s partial exemption for 1 of the following emissions-intensive trade-exposed activities:
(a) the manufacture of newsprint;
(b) dry pulp manufacturing;
(c) cartonboard manufacturing;
(d) packaging and industrial paper manufacturing;
(e) printing and writing paper manufacturing;
(f) tissue paper manufacturing;
does not count for the purpose of the basis for allocation of another of those emissions-intensive trade-exposed activities.
Part 15 Cartonboard manufacturing
Division 1 Cartonboard manufacturing
641 Cartonboard manufacturing
(1) Cartonboard manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into rolls of cartonboard that:
(a) has a grammage range of 150 g/m2 to 500 g/m2; and
(b) has a moisture content in the range of 4% to 11%, and
(c) is coated; and
(d) is generally useable as cartonboard product such as coated kraft liner, coated multiply and other coated paperboard.
(2) Cartonboard manufacturing is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
642 Classification of activity
Cartonboard manufacturing is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
643 Electricity baseline for product
(1) For cartonboard manufacturing, the basis for calculating the amount of a liable entity’s partial exemption is 0.775 MWh per total tonne of rolls of cartonboard that:
(a) has a grammage range of 150 g/m2 to 500 g/m2; and
(b) has a moisture content in the range of 4% to 11%; and
(c) is coated; and
(d) is generally useable as cartonboard product such as coated kraft liner, coated multiply and other coated paperboard; and
(e) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(f) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
(2) For the production of pulp from either or both of woodchips and sawdust as part of cartonboard manufacturing, the basis for calculating the amount of a liable entity’s partial exemption is 0.448 MWh per total air dried tonne (applying a 10% moisture content) of equivalent pulp that is:
(a) produced from either or both of woodchips and sawdust; and
(b) used in the process of cartonboard manufacturing; and
(c) produced as part of carrying on the emissions-intensive trade-exposed activity.
(3) For this Part, an amount of pulp or paper that is used as a basis for calculating the amount of a liable entity’s partial exemption for 1 of the following emissions-intensive trade-exposed activities:
(a) the manufacture of newsprint;
(b) dry pulp manufacturing;
(c) cartonboard manufacturing;
(d) packaging and industrial paper manufacturing;
(e) printing and writing paper manufacturing;
(f) tissue paper manufacturing;
does not count for the purpose of the basis for allocation of another of those emissions-intensive trade-exposed activities.
Part 16 Packaging and industrial paper manufacturing
Division 1 Packaging and industrial paper manufacturing
644 Packaging and industrial paper manufacturing
(1) Packaging and industrial paper manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into rolls of packaging and industrial paper that
(a) is produced from wholly or partially unbleached input fibre; and
(b) has a grammage range of 30 g/m2 to 500 g/m2; and
(c) has a moisture content in the range of 4% to 11%; and
(d) is uncoated; and
(e) is generally useable as a packaging or industrial paper, including products such as kraft liner, recycled or multiply liner, medium, sack and bag paper, wrapping paper, plasterboard liner, horticultural paper and building paper.
(2) Packaging and industrial paper manufacturing is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
645 Classification of activity
Packaging and industrial paper manufacturing is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
646 Electricity baseline for product
(1) For packaging and industrial paper manufacturing, the basis for calculating the amount of a liable entity’s partial exemption is 0.554 MWh per total tonne of rolls of packaging and industrial paper that:
(a) is produced from wholly or partially unbleached input fibre; and
(b) has a grammage range of 30 g/m2 to 500 g/m2; and
(c) has a moisture content in the range of 4% to 11%; and
(d) is uncoated; and
(e) is generally useable as a packaging or industrial paper product, including products such as kraft liner, recycled or multiply liner, medium, sack and bag paper, wrapping paper, plasterboard liner, horticultural paper and building paper.
(e) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(f) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
(2) For the production of pulp from either or both of woodchips and sawdust as part of packaging and industrial paper manufacturing, the basis for calculating the amount of a liable entity’s partial exemption is 0.448 MWh per total air dried tonne (assuming a 10% moisture content) of equivalent pulp that is:
(a) produced from either or both of woodchips and sawdust; and
(b) used in the process of manufacturing packaging and industrial paper; and
(c) produced as part of carrying on the emissions-intensive trade-exposed activity.
(3) For this Part, an amount of pulp or paper that is used as a basis for calculating the amount of a liable entity’s partial exemption for 1 of the following emissions-intensive trade-exposed activities:
(a) the manufacture of newsprint;
(b) dry pulp manufacturing;
(c) cartonboard manufacturing;
(d) packaging and industrial paper manufacturing;
(e) printing and writing paper manufacturing;
(f) tissue paper manufacturing;
does not count for the purpose of the basis for allocation of another of those emissions-intensive trade-exposed activities.
Part 17 Printing and writing paper manufacturing
Division 1 Printing and writing paper manufacturing
647 Printing and writing paper manufacturing
(1) Printing and writing paper manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into rolls of coated or uncoated printing and writing paper that:
(a) is produced from 100% bleached or brightened input fibre; and
(b) has a grammage range of 42 g/m2 to 350 g/m2; and
(c) has a moisture content in the range of 4% to 11%; and
(d) is generally useable as a printing and writing paper product, including products such as offset paper, copy paper, laser printing paper, magazine paper, filing card paper, manilla, book printing paper, envelope paper, forms paper, scholastic paper, cheque paper and security paper.
(2) Printing and writing paper manufacturing is specified as an emissions-intensive trade-exposed activity.
Division 2 Classification of activity
648 Classification of activity
Printing and writing paper manufacturing is a highly emissions-intensive activity.
Note See subregulations 22ZA (2) and (5).
Division 3 Electricity baseline for calculating partial exemption
649 Electricity baseline for product
(1) For printing and writing paper manufacturing, the basis for calculating the amount of a liable entity’s partial exemption is 0.880 MWh per total tonne of rolls of coated or uncoated printing and writing paper that:
(a) is produced from 100% bleached or brightened input fibre; and
(b) has a grammage range of 42 g/m2 to 350 g/m2; and
(c) has a moisture content in the range of 4% to 11%; and
(d) is generally useable as a printing and writing paper product, including products such as offset paper, copy paper, laser printing paper, magazine paper, filing card paper, manilla, book printing paper, envelope paper, forms paper, scholastic paper, cheque paper and security paper; and
(e) is produced by carrying on the emissions-intensive trade‑exposed activity; and
(f) is of saleable quality.
Note Saleable quality is defined in regulation 22C.
(2) For the production of pulp from either or both of woodchips and sawdust as part of printing and writing paper manufacturing, the basis for calculating the amount of a liable entity’s partial exemption is 0.448 MWh per total air dried tonne (assuming a 10% moisture content) of equivalent pulp that is:
(a) produced from either or both of woodchips and sawdust; and
(b) used in the process of manufacturing printing and writing paper; and
(c) produced as part of carrying on the emissions-intensive trade-exposed activity.
(3) For this Part, an amount of pulp or paper that is used as a basis for calculating the amount of a liable entity’s partial exemption for 1 of the following emissions-intensive trade-exposed activities:
(a) the manufacture of newsprint;
(b) dry pulp manufacturing;
(c) cartonboard manufacturing;
(d) packaging and industrial paper manufacturing;
(e) printing and writing paper manufacturing;
(f) tissue paper manufacturing;
does not count for the purpose of the basis for allocation of another of those emissions-intensive trade-exposed activities.
Note
1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See http://www.frli.gov.au.
