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CLEAN ENERGY LEGISLATION AMENDMENT ACT 2012 - SCHEDULE 1

General amendments

Part   1 -- Amendments

Clean Energy Act 2011

1   Section   5 ( paragraph   ( b) of the definition of carbon dioxide equivalence )

Omit " natural gas " , substitute " designated fuel " .

2   Section   5 ( paragraph   ( b ) of the definition of carbon dioxide equivalen ce )

Omit " 2007 ; or " , substitute " 2007 . " .

3   Section   5 ( paragraph   ( c) of the definition of carbon dioxide equivalence )

Repeal the paragraph.

4   Section   5

Insert:

"designated fuel" means:

  (a)   natural gas; or

  (b)   taxable fuel .

5   Section   5

Insert:

"liquefied petroleum gas" has the same meaning as in the National Greenhouse and Energy Reporting Regulations   2008 . For this purpose, a reference in those regulations to liquid petroleum gas is to be read as a reference to liquefied petroleum gas.

6   Section   5 (definition of liquid petroleum gas )

Repeal the definition.

7   Section   5 ( paragraph   ( b ) of the definition of provisional emissions number )

Omit " 11AA, 11AB, " .

8   At the end of section   20

Add:

Compressed natural gas--no double counting

  (10)   If:

  (a)   the facility was under the operational control of the person throughout the eligible financial year; and

  (b)   during the eligible financial year, an amount of covered emissions from the operation of the facility was attributable to the combustion of compressed natural gas; and

  (c)   it is not the case that the compressed natural gas wa s manufactured at the facility using natural gas that was supplied by a natural gas supplier to a person (the recipient ) (who may be the person mentioned in paragraph   ( a)) who quoted the recipient's OTN in relation to the supply of the natural gas;

the amount mentioned in paragraph   ( b):

  ( d )   does not count for the purposes of subsection   ( 1); and

  ( e )   counts for the purposes of paragraph   ( 4)(b).

  (11)   If:

  (a)   the facility was under the operational control of the person for a number of, but not all, days in the eligible financial year (the control days ); and

  (b)   during the control days, an amount of covered emissions from the operation of the facility was attributable to the combustion of compressed natural gas ; and

  (c)   it is not the case that the compressed natural gas was manufactured at the facility using natural gas that was supplied by a natural gas supplier to a person (the recipient ) (who may be the person mentioned in paragraph   ( a)) who quoted the recipient's OTN in relation to the supply of the natural gas;

the amount mentioned in paragraph   ( b):

  (d)   does not count for the purposes of subsection   ( 1); and

  (e)   counts for the purposes of paragraph   ( 5)(b).

9   After subsection   21(8)

Insert:

Compressed natural gas--no double counting

  (8A)   If:

  (a)   a designated joint venture had the facility throughout the eligible financial year; and

  (b)   during the eligible financial year, an amount of covered emissions from the operation of the facility was attributable to the combustion of compressed natural gas ; and

  (c)   it is not the case that the compressed natural gas was manufactured at the facility using natural gas that was supplied by a natural gas supplier to a person (the recipient ) (who may be a participant in the designated joint venture ) who quoted the recipient's OTN in relation to the supply of the natural gas;

the amount mentioned in paragraph   ( b):

  (d)   does not count for the purposes of subsection   ( 1); and

  (e)   counts for the purposes of paragraph   ( 4)(b).

  (8B)   If:

  (a)   the designated joint venture had the facility for a number of, but not all, days in the eligible financial year (the control days ); and

  (b)   during the control days, an amount of covered emissions from the operation of the facility was attributable to the combustion of compressed natural gas ; and

  (c)   it is not the case that the compressed natural gas was manufactured at the facility using natural gas that was supplied by a natural gas supplier to a person (the recipient ) (who may be a participant in the designated joint venture) who quoted the recipient's OTN in relation to the supply of the natural gas;

the amount mentioned in paragraph   ( b):

  (d)   does not count for the purposes of subsection   ( 1); and

  (e)   counts for the purposes of paragraph   ( 5)(b).

10   At the end of section   22

Add:

Compressed natural gas--no double counting

  (8)   If:

  (a)   the person was the holder of the liability transfer certificate throughout the eligible financial year; and

  (b)   during the eligible financial year, an amount of covered emissions from the operation of the facility was attributable to the combustion of compressed natural gas ; and

  (c)   it is not the case that the compressed natural gas was manufactured at the facility using natural gas that was supplied by a natural gas supplier to a person (the recipient ) (who may be the holder) who quoted the recipient's OTN in relation to the supply of the natural gas;

the amount mentioned in paragraph   ( b):

  (d)   does not count for the purposes of subsection   ( 1); and

  (e)   counts for the purposes of paragraph   ( 4)(b).

  (9)   If:

  (a)   the person was the holder of the liability transfer certificate for a number of, but not all, days in the eligible financial year (the certificate days ); and

  (b)   during the certificate days, an amount of covered emissions from the operation of the facility was attributable to the combustion of compressed natural gas ; and

  (c)   it is not the case that the compressed natural gas was manufactured at the facility using natural gas that was supplied by a natural gas supplier to a person (the recipient ) (who may be the holder) who quoted the recipient's OTN in relation to the supply of the natural gas;

the amount mentioned in paragraph   ( b):

  (d)   does not count for the purposes of subsection   ( 1); and

  (e)   counts for the purposes of paragraph   ( 5)(b).

11   After subsection   23(9)

Insert:

Compressed natural gas--no double counting

  (9A)   If:

  (a)   the landfill facility was under the operational control of the person throughout the eligible financial year; and

  (b)   during the eligible financial year, an amount of covered emissions from the operation of the landfill facility was attributable to the combustion of compressed natural gas ; and

  (c)   it is not the case that the compressed natural gas was manufactured at the landfill facility using natural gas that was supplied by a natural gas supplier to a person (the recipient ) (who may be the person mentioned in paragraph   ( a)) who quoted the recipient's OTN in relation to the supply of the natural gas;

the amount mentioned in paragraph   ( b):

  (d)   does not count for the purposes of subsection   ( 1); and

  (e)   counts for the purposes of paragraph   ( 4)(b).

  (9B)   If:

  (a)   the landfill facility was under the operational control of the person for a number of, but not all, days in the eligible financial year (the control days ); and

  (b)   during the control days, an amount of covered emissions from the operation of the landfill facility was attributable to the combustion of compressed natural gas ; and

  (c)   it is not the case that the compressed natural gas was manufactured at the landfill facility using natural gas that was supplied by a natural gas supplier to a person (the recipient ) (who may be the person mentioned in paragraph   ( a)) who quoted the recipient's OTN in relation to the supply of the natural gas;

the amount mentioned in paragraph   ( b):

  (d)   does not count for the purposes of subsection   ( 1); and

  (e)   counts for the purposes of paragraph   ( 5)(b).

12   After subsection   24(8)

Insert:

Compressed natural gas--no double counting

  (8A)   If:

  (a)   the designated joint venture had the landfill facility throughout the eligible financial year; and

  (b)   during the eligible financial year, an amount of covered emissions from the operation of the landfill facility was attributable to the combustion of compressed natural gas ; and

  (c)   it is not the case that the compressed natural gas was manufactured at the landfill facility using natural gas that was supplied by a natural gas supplier to a person (the recipient ) (who may be a participant in the designated joint venture) who quoted the recipient's OTN in relation to the supply of the natural gas;

the amount mentioned in paragraph   ( b):

  (d)   does not count for the purposes of subsection   ( 1); and

  (e)   counts for the purposes of paragraph   ( 4)(b).

  (8B)   If:

  (a)   the designated joint venture had the landfill facility for a number of, but not all, days in the eligible financial year (the control days ); and

  (b)   during the control days, an amount of covered emissions from the operation of the landfill facility was attributable to the combustion of compressed natural gas ; and

  (c)   it is not the case that the compressed natural gas was manufactured at the landfill facility using natural gas that was supplied by a natural gas supplier to a person (the recipient ) (who may be a participant in the designated joint venture) who quoted the recipient's OTN in relation to the supply of the natural gas;

the amount mentioned in paragraph   ( b):

  (d)   does not count for the purposes of subsection   ( 1); and

  (e)   counts for the purposes of paragraph   ( 5)(b).

13   After subsection   25(7)

Insert:

Compressed natural gas--no double counting

  (7A)   If:

  (a)   the person was the holder of the liability transfer certificate throughout the eligible financial year; and

  (b)   during the eligible financial year, an amount of covered emissions from the operation of the landfill facility was attributable to the combus tion of compressed natural gas; and

  (c)   it is not the case that the compressed natural gas was manufactured at the landfill facility using natural gas that was supplied by a natural gas supplier to a person (the recipient ) (who may be the holder) who quoted the recipient's OTN in relation to the supply of the natural gas;

the amount mentioned in paragraph   ( b):

  (d)   does not count for the purposes of subsection   ( 1); and

  (e)   counts for the purposes of paragraph   ( 4)(b).

  (7B)   If:

  (a)   the person was the holder of the liability transfer certificate for a number of, but not all, days in the eligible financial year (the certificate days ); and

  (b)   during the certificate days, an amount of covered emissions from the operation of the landfill facility was attributable to the combustion of compressed natural gas ; and

  (c)   it is not the case that the compressed natural gas was manufactured at the landfill facility using natural gas that was supplied by a natural gas supplier to a person (the recipient ) (who may be the holder) who quoted the recipient's OTN in relation to the supply of the natural gas;

the amount mentioned in paragraph   ( b):

  (d)   does not count for the purposes of subsection   ( 1); and

  (e)   counts for the purposes of paragraph   ( 5)(b).

14   Paragraph 30(2)(b)

Omit "liquid petroleum gas", substitute "liquefied petroleum gas".

15   After subsection   35(6)

Insert:

  (6A)   For the purposes of this section, if:

  (a)   the OTN holder quotes the OTN holder's OTN in relation to a supply to the OTN holder of an amount of natural gas; and

  (b)   during an eligible financial year, an amount of covered emissions from the operation of a facility was attributable to the combustion of an amount of compressed natural gas that was manufactured at the facility using the whole or a part (which whole or part is in this subsection called the relevant portion ) of the amount mentioned in paragraph   ( a) ; and

  (c)   the covered emissions mentioned in paragraph   ( b) count for the purposes of subsection   20(1) , 21 ( 1 ), 22(1), 23(1), 24(1) or 25(1); and

  (d)   the potential greenhouse gas emissions embodied in the relevant portion have a carbon dioxide equivalence of a particular number of tonnes;

t he number mentioned in paragraph   ( d) is a netted - out number of the OTN holder for the eligible financial year.

16   Subsection   35(7)

Omit "liquid petroleum gas" (wherever occurring), substitute "liquefied petroleum gas".

17   Section   58 (heading)

Repeal the heading, substitute:

58   Quotation of OTN --use of natural gas in manufacturing compressed natural gas, liquefied natural gas or liquefied petroleum gas

18   Paragraph 58(1)(d)

Omit "liquid petroleum gas", substitute "liquefied petroleum gas".

19   Subsection   92A(4)

Repeal the subsection , substitute:

  (4)   For the purposes of this section, a designated opt - in person passes the eligibility test in respect of an acquisition, manufacture or import of taxable fuel during a financial year if:

  (a)   in a case where :

  ( i )   the designated opt - in person was a member of a GST group at the start of the financial year; and

  (ii)   if it were assumed that the fuel had been acquired, manufactured or imported, as the case may be, at the start of the financial year--the entity that would have been entitled to a fuel tax credit in respect of that acquisition, manufacture or import, as the case may be, would have consisted of the me mbers of the GST group;

    the fuel was acquired, manufactured or imported, as the case may be, by a person who was a member of the GST group as at the start of the financial year; or

  (b)   in a case where :

  ( i )   the designated opt - in person was a participant in a GST joint venture at the start of the financial year; and

  (ii)   if it were assumed that the fuel had been acquired, manufactured or imported, as the case may be, at the start of the financial year--the entity that would have been entitled to a fuel tax credit in respect of that acquisition, manufacture or import, as the case may be, would have consisted of the participants in the GST joint venture;

    the fuel was acquired, manufactured or imported, as the case may be, by a person who was a participant in the GST joint venture as at the start of the financial year; or

  (c)   in any other case--the designated opt - in person is the entity that was entitled to a fuel tax credit in respect of that acquisition, manufacture or import, as the case may be.

  (4A A )   It is immaterial whether the designated opt - in person is:

  (a)   the person last mentioned in paragraph   ( 4)(a); or

  (b)   the person last mentioned in paragraph   ( 4)(b).

  (4 A B)   For the purposes of subparagraphs   ( 4 ) (a)(ii) and (b)(ii), in determining the entity that would have been entitled to a fuel tax credit in respect of an acquisition, manufacture or import of taxable fuel, disregard :

  (a)   so much of subsection   70 - 5(2) of the Fuel Tax Act 2006 as does not consist of the table; and

  (b)   column 2 of the table in that subsection.

20   After section   92D

Insert:

92DA   Notification requirement

Scope

  (1)   This section applies to a person if the person is a designated opt - in person.

Requirement

  (2)   The Opt - in Scheme may make provision for and in relation to requiring the person to notify matters to the Regulator.

  (3)   Subsection   ( 2) does not, by implication, limit subsection   92A(1).

21   At the end of Division   7 of Part   3

Add:

92H   Compliance with reporting, record - keeping and notification requirements

Reporting requirements

  (1)   If a person is subject to a requirement under the Opt - in Scheme to give a report to the Regulator, the person must comply with that requirement.

Record - keeping requirements

  (2)   If a person is subject to a requirement under the Opt - in Scheme to:

  (a)   make a record of information; or

  (b)   retain such a record or a copy;

the person must comply with that requirement.

Notification requirements

  (3)   If a person is subject to a requirement under the Opt - in Scheme to notify a matter to the Regulator, the person must comply with that requirement.

Ancillary contraventions

  (4)   A person must not:

  (a)   aid, abet, counsel or procure a contravention of subsection   ( 1), (2) or (3); or

  (b)   induce, whether by threats or promises or otherwise, a contravention of subsection   ( 1), (2) or (3); or

  (c)   be in any way, directly or indirectly, knowingly concerned in, or party to, a contravention of subsection   ( 1), (2) or (3); or

  (d)   conspire with others to effect a contravention of subsection   ( 1), (2) or (3).

Civil penalty provisions

  (5)   Subsections   ( 1), (2), (3) and (4) are civil penalty provisions .

Note:   Part   17 provides for pecuniary penalties for breaches of civil penalty provisions.

22   After paragraph   262(1)(r)

Insert:

  ( ra )   subsection   92H(1);

  ( rb )   subsection   92H(2);

  ( rc )   subsection   92H(3);

23   After paragraph   263(2)(g)

Insert:

  ( ga )   subsection   92H(1);

  ( gb )   subsection   92H(3);

National Greenhouse and Energy Reporting Act 2007

24   Section   7 ( paragraph   ( b) of the definition of carbon dioxide equivalence )

Omit " natural gas " , substitute " designated fuel " .

25   Section   7

Insert:

"designated fuel" has the same meaning as in the Clean Energy Act 2011 .

26   Section   7

Insert:

"externally-administered body corporate" has the same meaning as in the Corporations Act 2001 .

27   Section   7

Insert:

"insolvent under administration" has the same meaning as in the Corporations Act 2001 .

28   Section   7 (definition of operational control )

Omit " 11AA, 11AB, " .

29   Section   7 (definition of potential greenhouse gas emissions )

Omit " natural gas " , subst itute " designated fuel " .

30   Section   7

Insert:

"unit shortfall charge" has the same meaning as in the Clean Energy Act 2011 .

31   Section   7

Insert:

"unsatisfactory compliance record" has the meaning given by section   11 D .

32   Section   7B (heading)

Repeal the heading , substitute:

7B   Potential greenhouse gas emissions embodied in an amount of designated fuel

33   Subsection   7B(1)

Omit " of natural gas " , substitute " of a particular kind of designated fuel " .

34   Subsection   7B(1)

Omit " of the natural gas " , substitute " of the designated fuel " .

35   Subsection   7B(2)

Omit " of natural gas " , substitute " of a specified kind of designated fuel " .

36   Subsection   7B(2)

Omit " of the natural gas " , substitute " of the designated fuel " .

37   At the end of subsection   7B(2)

Add " in relation to that kind of designated fuel " .

38   Paragraph 7B(3)(c)

Omit " natural gas " , substitute " a particular kind of designated fuel " .

39   Paragraph 7B (4) (a)

Omit " natural gas " , substitute " a particular kind of designated fuel " .

40   Paragraph 7B(4)(c)

Omit " the natural gas " , substitute " that kind of designated fuel " .

41   Subsection   7B(5)

Omit " natural gas " , substitute " designated fuel of a kind specified in the determination " .

42   At the end of subsection   7B(5)

Add " in relation to that kind of designated fuel " .

43   Section   7C (heading)

Repeal the heading, substitute:

7C   Carbon dioxide equivalence of potential greenhouse gas emissions embodied in an amount of designated fuel

44   Subsection   7C(1)

Omit " natural gas " , substitute " designated fuel " .

45   Subsection   11(4)

Omit " 11AA, 11AB, " .

46   Section s   11AA , 11AB , 11B and 11 C

Repeal the sections, substitute:

11B   Operational control--nominated person

Eligible nomination test

  (1)   For the purposes of t his section , a facility passes the eligible nomination test at a particular time if :

  (a )   2 or more persons (the relevant persons ) could satisfy paragraph   11(1)(a) in relation to the facility at that time ; and

  (b )   no particular person has the greatest authority to introduce and implement the policies mentioned in subparagraphs   11(1)(a)( i ) and (iii) in relation to the facility at that time ; and

  (c )   no declaration under section   55 or 55A applies in relation to the facility at that time; and

  (d)   that time occurs in an eligible financial year.

Nomination

  (2)   2 or more persons may jointly nominate one of them to be the nominated person in relation to a facility throughout the period:

  (a)   beginning at the start of the day specified in the nomination as the day on whi ch the nomination is to come in to force (the start day ); and

  (b)   ending at a later time specified in the nomination.

  (3)   The nomination must:

  (a)   be in writing; and

  (b)   be in a form approved by the Regulator; and

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

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

  (4)   If:

  (a)   any of those persons is a foreign person; and

  (b)   any of those persons is not a foreign person;

a foreign person cannot be nominated.

  (5)   The nomination has no effect unless, at the beginning of the start day:

  (a)   the facility passes the eligible nomination test; and

  (b)   the nominators are the relevant persons.

  (6)   The start day may occur before the nomination is made.

  (7)   If:

  (a)   the start day occurs in the first 9 months o f a fixed charge year; and

  (b)   it may reasonably be expected that a person would have had an interim emissions number for the fixed charge year if it were assumed that:

  ( i )   the person had operational control of the facility throughout a period that is included in, or consists of, the first 9 months of the fixed charge year; and

  (ii)   no other person had operational control of the facility throughout that period;

t he nomination must be made before 1   May in the fixed charge year.

  (8)   I f the start day occurs during a particular eligible financial year, the nomination must not be made after 31   August next following the eligible financial year.

  (9)   The start day may be later than the day on which the nomination is made, so long as:

  (a)   the start day occurs in the same financial year as the day on which the nomin ation is made; or

  (b)   the start day occurs in the financial year next following the financial year in which the nomina tion is made.

Cancel l ation of nomination

  (10)   The Regulator may cancel a nomination that relates to a facility if the Regulator is satisfied that :

  (a)   the facility passes the eligible nomination test, but the nominated person is not a relevant person; or

  ( b )   the facility does not pass the eligible nomination test; or

  (c )   the nominated person has become an externally - administered body corporate; or

  (d)   the nominated person has become an insolvent under administration; or

  (e )   the nominated person has an unsatisfactory compliance record .

Note:   For unsatisfactory compliance record , see section   11D .

  (11)   A cancellation of a nomination takes effect on the day specified in the notice of cancellation as the day on which the cancellation is to take effect.

  (12)   If the Regulator cancels a nomination, the Regulator must give written notice of the cancellation to eac h nominator .

Replacement nomination

  (13)   If:

  (a)   a nomination (the original nomination ) is in force in relation to a facility; and

  (b)   another nomination is made in relation to the facility;

the other nomination has no effect unless it is expressed to replace the original nomination.

Revo cation of nomination

  (14)   If:

  (a)   a nomination (the original nomination ) is in force in relation to a facility; and

  (b)   another nomination is made in relation to the facility; and

  (c)   the other nomination is expressed to replace the original nomination;

the original nomination is taken to have been revoked at the beginning of the start day for the other nomination.

Operational control--nomination made

  (15)   If:

  (a)   a nomination is in force in relation to a facility throughout a particular period ; and

  (b)   the facility passes the eligible nomination test at all times during the period; and

  (c)   the facility i s a facility of a joint venture;

the nominated person is taken, for the purposes of this Act, to have operational control of the facility throughout the period.

  (16)   If:

  (a)   a nomination is in force in relation to a facility throughout a particular period ; and

  (b)   the facility passes the eligible nomination test at all times during the period; and

  (c)   the facility is not a facility of a joint venture ;

the nominated person is taken, for the purposes of this Act and the Clean Energy Act 2011 , to have operational control of the facility throughout the period.

Operational control--nomination not made

  (17)   If:

  (a)   no nomination is in force in relation to a facility at any time during a particular period; and

  (b)   the facility passes the eligible nomination test at all times during the period; and

  (c)   the facility is a facility of a joint venture;

each of the relevant persons is taken , for the purposes of this Act, to have operational control of the facility throughout the period.

  (18)   If:

  (a)   no nomination is in force in relation to a facility at any time during a particular period; and

  (b)   the facility passes the eligible nomination test at all times during the period; and

  (c)   the facility is not a facility of a joint ventu re;

then:

  ( d )   each relevant person is taken, for the purposes of this Act and the Clean Energy Act 2011 , to have operational control of the facility throughout the period; and

  ( e )   if there is a provisional emissions number of such a person for the eligible financial year in relation to greenhouse gases emitted from the operation of the facility during the period-- for the purposes of this Act and the Clean Energy Act 2011 , that provisional emissions number is taken to be the number worked out using the formula set out in subsection   ( 19 ).

  (19)   The formula is:

where:

"unadjusted provisional emissions number" means the number that, apart from paragraph   ( 18)(e ), would be the provisional emissions number of the person for the eligible financial year in relation to greenhouse gases emitted from the operation of the facility during the period.

Notification

  (20)   If:

  (a)   a nomination is in force in relation to a facility; and

  (b)   the facility ceases to pass the eligible nomination test;

each nominat or must, within 30 days after the cessation, notify the cessation to the Regulator unless the cessation has previously been notified to the Regulator.

Civil penalty:   400 penalty units.

Exception s

  (21)   A person is not requi red to comply with subsection   ( 20 ) if the question of who has operational control of the facility is not relevant (whether directly or indirectly) to a requirement under:

  (a)   this Act; or

  (b)   the Clean Energy Act 2011 .

  (22)   A person is not required to comply with subsection   ( 20) if the facility ceases to pass the eligible nomination test because of the making of a declaration under section   55 or 55A.

Definition

  (23)   In this section:

"nomination" means a nomination under subsection   ( 2 ).

11C   Operational control--trust with multiple trustees

Eligible nomination test

  (1)   For the purposes of this section, a facility passes the eligible nomination test at a particular time if:

  (a)   because of section   11, 11A or 11B, a trust has operational control of the facility at that time; and

  (b)   at that time, there are 2 or more trustees (the relevant trustees ) of the trust; and

  (c)   no declaration under section   55 or 55A applies in relation to the facility at that time; and

  (d)   th at time occurs in an eligible financial year.

Nomination

  (2)   2 or more trustees may jointly nominate one of them to be the nominated trustee in relation to a facility throughout the period:

  (a)   beginning at the start of the day specified in the nomination as the day on which the nomination is to come into force (the start day ); and

  (b)   ending at a later time specified in the nomination.

  (3)   The nomination must:

  (a)   be in writing; and

  (b)   be in a form approved by the Regulator; and

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

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

  (4)   If:

  (a)   any of those trustees is a foreign person; and

  (b)   any of those trustees is not a foreign person;

a foreign person cannot be nominated.

  (5)   The nomination has no effect unless, at the beginning of the start day:

  (a)   the facility passes the eligible nomination test; and

  (b)   the nominators are the relevant trustees.

  (6)   The start day may occur before the nomination is made.

  (7)   If:

  (a)   the start day occurs in the first 9 months of a fixed charge year; and

  (b)   it may reasonably be expected that a person would have had an interim emissions number for the fixed charge year if it were assumed that:

  ( i )   the person had operational control of the facility throughout a period that is included in, or consists of, the first 9 months of the fixed charge year; and

  (ii)   no other person had operational control of the facility throughout that period;

the nomination must be made before 1   May in the fixed charge year.

  (8)   If the start day occurs during a particular eligible financial year, the nomination must not be made after 31   August next following the eligible financial year.

  (9)   The start day may be later than the day on which the nomination is made, so long as:

  (a)   the start day occurs in the same financial year as the day on which the nomination is made; or

  (b)   the start day occurs in the financial year next following the financial year in which the nomination is made.

Cancellation of nomination

  (10)   The Regulator may cancel a nomination that relates to a facility if the Regulator is satisfied that:

  (a)   the facility passes the eligible nomination test, but the nominated trustee is not a relevant trustee; or

  (b)   the facility does not pass the eligible nomination test; or

  (c)   the nominated trustee has become an externally - administered body corporate; or

  (d)   the nominated trustee has become an insolvent under administration; or

  (e)   the nominated trustee has an unsatisfactory compliance record.

Note:   For unsatisfactory compliance record , see section   11D .

  (11)   A cancellation of a nomination takes effect on the day specified in the notice of cancellation as the day on which the cancellation is to take effect.

  (12)   If the Regulator cancels a nomination, the Regulator must give written notice of the cancellation to each nominator.

Replacement nomination

  (13)   If:

  (a)   a nomination (the original nomination ) is in force in relation to a facility; and

  (b)   another nomination is made in relation to the facility;

the other nomination has no effect unless it is expressed to replace the original nomination.

Revocation of nomination

  (14)   If:

  (a)   a nomination (the original nomination ) is in force in relation to a facility; and

  (b)   another nomination is made in relation to the facility; and

  (c)   the other nomination is expressed to replace the original nomination;

the original nomination is taken to have been revoked at the beginning of the start day for the other nomination.

Operational control--nomination made

  (15)   If:

  (a)   a nomination is in force in relation to a facility throughout a particular period; and

  (b)   the facility passes the eligible nomination test at all times during the period;

the nominated trustee is taken, for the purposes of this Act and the Clean Energy Act 2011 , to have operational control of the facility throughout the period.

Operational control--nomination not made

  (16)   If:

  (a)   no nomination is in force in relation to a facility at any time during a particular period; and

  (b)   the facility passes the eligible nomination test at all time s during the period;

then:

  (c)   each relevant trustee is taken, for the purposes of this Act and the Clean Energy Act 2011 , to have operational control of the facility throughout the period; and

  (d)   if there is a provisional emissions number of such a trustee for the eligible financial year in relation to greenhouse gases emitted from the operation of the facility during the period--for the purposes of this Act and the Clean Energy Act 2011 , that provisional emissions number is taken to be the number worked out using the formula set out in subsection   ( 17 ).

  (17)   The formula is:

where:

"unadjusted provisional emissions number" means the number that, apart from paragraph   ( 16)(d ), would be the provisional emissions number of the trustee for the eligible financial year in relation to greenhouse gases emitted from the operation of the facility during the period.

Notification

  (18)   If:

  (a)   a nomination is in force in relation to a facility; and

  (b)   the facility ceases to pass the eligible nomination test;

each nominator must, within 30 days after the cessation, notify the cessation to the Regulator unless the cessation has previously been notified to the Regulator.

Civil penalty:   400 penalty units.

Exception s

  (19)   A trustee is not required to comply with subsection   ( 18 ) if the question of who has operational control of the facility is not relevant (whether directly or indirectly) to a requirement under:

  (a)   this Act; or

  (b)   the Clean Energy Act 2011 .

  (20)   A trustee is not required to comply with subsection   ( 18 ) if the facility ceases to pass the eligible nomination test because of the making of a declaration under section   55 or 55A .

Definition

  (21)   In this section:

"nomination" means a nomination under subsection   ( 2 ).

11D   Unsatisfactory compliance record

  (1)   For the purposes of this Act, a person has a n unsatisfactory compliance record if, and only if:

  (a)   at any time during the preceding 5 years, the person has b reached a requirement under this Act to provide a report; or

  (b)   at any time during the preceding 5 years, the person has provided a report under this Act that contains information that is false or misleading in a material particular; or

  (c)   at any time during the preceding 5 years, an amount of unit shortfall char ge payable by the person remained unpaid more than 3 months after it became due for payment; or

  (d)   the following conditions are satisfied:

  ( i )   at any time during the preceding 5 years, a copy of an audit report of a greenhouse and energy audit relating to the person was give n to the Regulator under this Act ;

  (ii)   the report contained an adverse conclusion (within the meaning of the National Greenhouse and Energy Reporting (Audit) Determination   2009 ); or

  (e)   at any time during the preceding 5 years, the person has breached a civil penalty provision of:

  ( i )   this Act; or

  (ii)   the Clean Energy Act 2011 ; or

  (iii)   a determination under section   113 of the Clean Energy Act 2011 ; or

  (f)   if the person is a body corporate--at any time during the preceding 5 years, an executive officer of the body corporate has breached a civil penalty provision of:

  ( i )   this Act; or

  (ii)   the Clean Energy Act 2011 ; or

  (iii)   a determination under section   113 of the Clean Energy Act 2011 ; or

  (g)   both:

  ( i )   at any time during the preceding 5 years , the person has done a particular act; and

  (ii)   the act is of a kind specified in the regulations; or

  (h)   both:

  ( i )   at any time during the preceding 5 years , the person has omitted to do a particular act; and

  (ii)   the omission is of a kind specified in the regulations; or

  ( i )   the person has been convicted of an offence against:

  ( i )   this Act; or

  (ii)   the Clean Energy Act 2011 ; or

  (j)   if the person is a body corporate--an executive officer of the body corporate has been convicted of an offence against:

  ( i )   this Act; or

  (ii)   the Clean Energy Act 2011 .

Spent convictions

  (2)   Nothing in this section affects the operation of Part   VIIC of the Crimes Act 1914 (which includes provisions that, in certain circumstances, relieve persons from the requirement to disclose spent convictions and require persons aware of such convictions to disregard them).

47   Paragraph 22A(1)(c)

Omit " natural gas " , substitute " designated fuel " .

48   Paragraph 22AA(1)(e)

Omit " natural gas " , substitute " designated fuel " .

49   Paragraph 24(1)(c)

Repeal the paragraph, substitute:

  (c)   the totals of net energy consumption for the corporation's group for the previous financial year.

50   Paragraph 24(1A)(c)

Repeal the paragraph, substitute:

  (c)   the totals of net energy consumption for each member of the corporation's group, or each business unit in relation to the corporation's group, for the previous financial year; and

51   Paragraph 24(1AA)(c)

Omit " natural gas " , substitute " designated fuel " .

52   Paragraphs 24(1AD)(a) and (b)

After "regulations)", insert "set out in the report".

53   Paragraph 24(1AD)(c)

Omit "energy consumption;", substitute "net energy consumption derived from the report.".

54   Subsection   24(1AD)

Omit "set out in the report.".

55   Subsection   24(1C)

Omit "or adjusted totals".

56   At the end of section   24

Add:

Net energy consumption

  (7)   For the purposes of subsections   ( 1) and (1A) , net energy consumption for a financial year means energy consumption reported under Part   3 or 3F for the financial year , adjusted in accordance with the regulations.

  (8)   For the purposes of subsection   ( 1AD), the net energy consumption derived from a report under section   22E or 22G means the energy consumption set out in the report, adjusted in accordance with the regulations.

57   Subsection   30(2A )

After " section " , insert " 11B, 11C, " .

58   Before paragraph   56(a)

Insert:

  ( aaa )   cancel a nomination under section   11B;

  ( aa b )   cancel a nomination under section   11C;

Part   2 -- Tran s i tional provisions

59   Transitional--d eterminations under section   7B of the National Greenhouse and Energy Reporting Act 2007

Scope

(1)   This item applies to a determination if :

  (a)   the determination was made under subsection   7B(2), (4) or (5) of the National Greenhouse and Energy Reporting Act 2007 ; and

  (b)   the determination was in force immediately before the commencement of this item.

Determination

(2)   The de termination has e ffect , after the comm encement of this item, as if it:

  (a)   had been made under the corresponding provision of section   7B of the National Greenhouse and Energy Reporting Act 2007 as amended by this Act; and

  (b)   related to a specified kind of designated fuel, namely, natural gas.



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