National greenhouse and energy reporting system now detailed: National Greenhouse and Energy Reporting Regulations 2008
On 26 June 2008 the National Greenhouse and Energy Reporting Regulations 2008 (NGER Regs) were released by the Federal Government. The NGER Regs provide important details regarding the reporting obligations set out in the National Greenhouse and Energy Reporting Act 2007 (Cth) (NGER Act). The NGER Regs commenced on 1 July 2008.
The NGER Act imposes reporting obligations on Australian corporations who meet specified thresholds regarding greenhouse gas emissions, energy consumption and energy production. The NGER Regs deal with such matters as:
- interpretation of key terms used in the NGER Act such as ‘greenhouse gas emissions’ and ‘industry sector’
- registration and deregistration requirements for affected corporations
- rules for nominating a responsible entity for reporting in relation to a joint venture or partnership
- information to be included in the public register
- circumstances in which an activity or activities will constitute a single undertaking or enterprise, and
- details required in annual reports in relation to greenhouse gas emissions, energy consumption and energy production for various industries.
For corporations, the NGER Act and NGER Regs are important from a compliance and legal risk management perspective. Also, the allocation of reporting responsibilities under the new scheme may be relevant in determining which companies within a corporate group will have responsibilities to acquire and acquit emissions permits under any future emissions trading system.
Complying with the national greenhouse and energy reporting system: National Greenhouse and Energy Reporting (Measurement) Determination 2008
The National Greenhouse and Energy Reporting (Measurement) Determination 2008 (NGER Determination) has also been released.
The 216-page NGER Determination provides details to enable corporations to comply with the NGER Regulations. It provides methodologies for estimating greenhouse gas emissions, energy production and energy consumption.
The NGER Determination commenced on 1 July 2008.
Correcting the national greenhouse and energy reporting system: National Greenhouse and Energy Reporting Amendment Bill 2008
The National Greenhouse and Energy Reporting Amendment Bill 2008 (NGERA Bill) was introduced into the House of Representatives on 26 June 2008.
The NGERA Bill proposes to make amendments to the NGER Act, which establishes a mandatory framework for reporting energy production and consumption and greenhouse gas emissions for corporate groups which exceed specified thresholds.
Key amendments to the NGER Act would include:
- increasing the amount of information which will be disclosed to the public to include separate publication of a corporation’s direct and indirect greenhouse gas emissions
- allowing the minister to specify conditions for the use of alternative methods to calculate greenhouse gas emissions
- allowing corporations to apply for registration before meeting the emission and energy thresholds if the CEO of the corporation is satisfied that the corporation’s group is likely to meet one or more of the thresholds for a financial year
- allowing separate reporting of offsets and other projects (currently the NGER Act prevents a corporation from reporting offsets which could be generated by activities carried out outside the corporation’s group)
- confirming that a corporation and each member of a corporation’s group must provide an external auditor with all reasonable facilities and assistance necessary for the effective exercise of the external auditor’s duties, with civil penalties applying for a breach of this requirement, and
- allowing publication of the methods used by corporations to measure emissions and the rating given to each of those methods.
The NGERA Bill will lead to a more efficient administration of the NGER Act, and the additional publication requirements are likely to result in a quick consolidation of the reporting market.
Regulating carbon capture and storage: Offshore Petroleum Amendment (Greenhouse Gas Storage) Bill 2008
The Offshore Petroleum Amendment (Greenhouse Gas Storage) Bill 2008 (OPAGGS Bill) was introduced into the House of Representatives on 18 June 2008. Tabling of the Bill follows the release of draft legislation in May 2008.
The OPAGGS Bill seeks to amend the Offshore Petroleum Act 2006 (Cth) (OP Act) to establish a system of offshore titles that will permit the transportation, injection and storage of greenhouse gas substances in deep geological formations under the seabed in adjacent areas.
Among other things, the OPAGGS Bill seeks to:
- establish a system of greenhouse gas titles and access to greenhouse gas storage formations
- provide for the variation, cancellation or transfer registration of such titles
- provide the minister with extensive discretionary powers in relation to greenhouse titles and activities, including allowing the minister to give directions to greenhouse gas title holders
- amend the existing petroleum titles regime to accommodate the greenhouse gas transportation and storage activities, and
- make amendments relating to the dual operation of the petroleum and greenhouse gas systems of title, including that the minister must have regard to potential impacts on greenhouse gas operations when determining the approval of key petroleum operations undertaken in pursuance of certain ‘declared’ petroleum titles.
The OPAGGS Bill would also result in the renaming of the Act to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth).
The exposure draft of the OPAGGS Bill was referred to the House of Representatives Standing Committee on Primary Industries and Resources (the committee) on 19 May 2008. The committee is considering a range of issues including who is responsible for any liability after a site is closed, security and safety, and managing potentially diverging interests between injecting and extracting industries. Submissions were due by 30 June 2008 and the committee is due to report by mid August 2008.
Three instruments to assist with the administration of the greenhouse gas storage regulatory regime are also before the House of Representatives:
- the Offshore Petroleum (Annual Fees) Amendment (Greenhouse Gas Storage) Bill 2008
- the Offshore Petroleum (Registration Fees) Amendment (Greenhouse Gas Storage) Bill 2008, and
- the Offshore Petroleum (Safety Levies) Amendment (Greenhouse Gas Storage) Bill 2008.
Indications are that the regulatory framework will be finalised by parliament’s spring session.
Streamlining energy reporting: Energy Efficiency Opportunities Amendment Regulations 2008
Amendments to the Energy Efficiency Opportunities Regulations (EEO Regulations) coincide with the commencement of the National Greenhouse and Energy Reporting Scheme (NGER Scheme) on 1 July 2008. The amendments are intended to streamline energy reporting. The amendments include:
- attributing responsibility for energy use based on operational control of the facility where energy is used (in the same manner as the NGER Scheme). Transitional provisions allow corporations to continue to use the previous reporting rules but corporations who choose this option will lose the benefit of streamlined reporting
- replacing the list of energy sources in the EEO Regulations with a reference to the energy sources in the NGER Regulations
- reporting energy production as well as gross energy use, as required to be reported under the NGER Regulations, and
- transitional arrangements to enable corporations to align their EEO program reporting timing and periods with NGER Scheme requirements.
Release of Senator Wong’s Green Paper on Carbon Pollution Reduction
As reported on 16 July 2008, Senator Penny Wong has released the Australian Government’s Green Paper on Carbon Pollution Reduction Scheme (Green Paper) for public comment. More information on the Green Paper can be found here.
Garnaut draft report released
On 4 July 2008, the Garnaut Review released its Draft Report (report) on the need for, timetable towards, and design features of an Australian emissions trading scheme (AETS).
The report stresses the need for Australia to take action without delay, urging that any delay will simply result in the loss of low-cost abatement opportunities. Accordingly, the report favours a 2010 start date for the AETS, but with the possibility that the first two years will be transitional in nature.
As expected, the report also advocates a wide coverage for the AETS, including in particular liquid transport fuels.
Key features of the AETS as advocated in the report include the following:
Cap
The emissions cap in the period 2010–12 will be equivalent to Australia’s obligation under the Kyoto Protocol to maintain its emissions at 108 per cent of 1990 levels.
Caps in subsequent periods will be based on corresponding commitments by other developed (and, if possible, developing) countries. The government will be obliged to give five years’ notice of any move to a more stringent cap.
Coverage
The scheme will cover all six internationally recognised greenhouse gases and all sectors except, in the initial stage, agriculture and forestry. The only valid reason for exclusion of a sector is technical difficulty in achieving adequate measurement, monitoring and verification in a cost-effective way (as is currently the case with agriculture and forestry). Accordingly, liquid transport fuels (that is, petrol) will be included from the start.
Permit allocation
All permits will be auctioned. There will be no free allocation of permits except possibly as a mechanism for compensating trade-exposed emissions-intensive industries (see under Compensation below). Permit auctions will be regular and possibly quite frequent, to minimise cash-flow problems.
Point of obligation
Liability for acquiring and surrendering emissions permits will fall at the point of emission wherever economically efficient. Where that is not the case, the point of obligation will be upstream or downstream of the emission point. In the case of liquid transport fuels, the appropriate point of obligation is the point of excise liability.
Penalty
The penalty will be high enough to encourage compliance, and in any event will be accompanied by a make-good obligations.
Banking and borrowing
Unlimited banking or ‘hoarding’ of emissions will be permitted. Borrowing against future permit allocations will be permitted at the discretion of the regulatory authority and for a maximum of five years.
Offsets
Domestic offsets will be freely usable in lieu of emissions permits. However, because of the wide coverage of the scheme, there will be little scope for the creation of domestic offsets outside the forestry area.
International offsets (such as from the Kyoto Protocol’s Clean Development Mechanism) will be allowed with restrictions.
International linkage
International linkages should be sought in a ‘judicious and calibrated’ manner, balancing the economic benefits of a larger emissions trading market against the danger of importing the defects of other systems. Particular attention should be paid to linkage with the proposed New Zealand scheme and to the creation of regional arrangements involving Papua New Guinea, other south-west Pacific developing nations and Indonesia. Linkage with the post-2012 Phase 3 of the European Union emissions trading scheme should also be sought.
Compensation
The substantial funds generated by the auctioning of permits will be spent as to at least half in the form of compensation to households (particularly low-income households). Much of the remainder of the funds will be used to compensate trade-exposed emissions-intensive industries that meet a threshold until relevant competing foreign markets are subject to an equivalent carbon price (the compensation to be made either in cash or through the free allocation of permits of a particular cash value). Industries and enterprises disproportionately affected in asset value (including coal-fired electricity generators) will not have any special claim to compensation.
Scheme administration
Major policy decisions, including the setting of caps, the identification of principles for compensation, and linkage with overseas schemes, will be made by the government. Otherwise, the administration of the scheme will be in the hands of an independent body modelled on the Reserve Bank.
Transitional arrangements
Consideration may be given to softening the impact of the scheme in the period 2010–12. Measures to achieve this may include admitting emissions permits created under the European Union emissions trading scheme or fixing the price of permits for that period. In the latter case, permits purchased at the fixed price would not be able to be banked for later periods.
Federal Budget – $2.3 billion in climate change funding
The Federal Budget 2008–09 was released on 13 May 2008. The Labor Government announced $3.8 billion in funding for climate change, water and the environment for the period 2007–08 to 2011–12. $2.3 billion of this funding is to tackle climate change through a raft of initiatives including:
- $68.8 million over five years for the introduction of the domestic emissions trading scheme in 2010
- $150 million over four years for the government’s Energy Innovation Fund
- $500 million over eight years for the National Clean Coal Fund
- $500 million over six years from 2009–10 for the Renewable Energy Fund, and
- $240 million over four years from 2008–09 for the Clean Business Australia initiative which includes a Green Building Fund to subsidise part of the cost of retro-fitting and retro-commissioning existing commercial office buildings.
The budget also allocated funding for its 10-year $12.9 billion Water for the Future plan. Between 2007–08 and 2009–10, $400 million is being brought forward to accelerate water purchase and infrastructure projects in the Murray-Darling Basin. Commentators have noted that the budget announcements are likely to delay the establishment of the Murray-Darling Basin Authority.
Clean Coal Council to be announced
The Minister for Resources and Energy (minister) will soon announce a ‘Clean Coal Council’ (council). The council will comprise mining industry representatives and officials from the federal, state and territory governments.
The minister’s statements in parliament on 17 June 2008 also hinted at a new taskforce to look at aspects of carbon storage and transport.
Greenhouse emissions and energy reporting has begun
The National Greenhouse and Energy Reporting regime commenced on 1 July 2008. Although affected corporations have until August 2009 to register and October 2009 to submit their first annual report, affected entities should be measuring their energy consumption and production and emissions as of 1 July 2008. The Department of Climate Change has developed an online calculator to assist businesses to determine if the new reporting regime applies to them.
This ties in with the release of new greenhouse gas emission results for Australia on 24 June 2008 by Minister for Climate Change and Water. The minister confirmed that Australia’s greenhouse gas emission results for 2006 and a preliminary result for 2007 indicate that Australia remains poised to meet its Kyoto target of 108 per cent of 1990 levels averaged during 2008–12.
Australia’s emissions in 2007 were estimated to be 585 million tonnes, or 106 per cent of 1990 levels. This is a 1.6 per cent increase from 2006.
ACCC addresses carbon offset claims
On 27 June 2008 the Australian Competition and Consumer Commission (ACCC) Chairman launched a range of ACCC guidance notes on carbon offset claims. Recognising the growing trend of such marketing claims and consumer concerns over the truth of carbon offset claims has spurred the ACCC to develop guidance for consumers and industry. A business and industry guide titled Carbon claims and the Trade Practices Act is now available.
Rudd commissions national infrastructure climate change adaptation risk assessment
The Federal Government is inviting tenders for a combined assessment of the impacts of climate change on significant infrastructure. The assessment is to assist the government to develop and deliver appropriate policy for infrastructure investment and maintenance and to assist infrastructure owners and managers to adapt to the impacts of climate change. The analysis will focus on the power, water, transport, communications, and buildings and settlement sectors.
Tenders close on 22 July 2008. The assessment is to be completed by 31 May 2009.
Clean coal technologies receive a boost: Clean Coal Administration Act 2008
The Clean Coal Administration Act 2008 (NSW) (CCA Act) was assented to, and commenced, on 1 July 2008.
The CCA Act establishes a Clean Coal Fund (CCF) with the purpose of providing funding for research, development, demonstration, promotion and commercialisation of clean coal technologies. The New South Wales Government will contribute to the fund and there is provision for voluntary contributions.
The CCA Act also establishes a Clean Coal Council (CCC). The CCC’s functions include giving advice and making recommendations to the Minister for Mineral Resources on project funding and policies to encourage the development and implementation of clean coal technologies. It will consist of five government officials and five members jointly nominated by the Australian Coal Association and the New South Wales Minerals Council and any other person the minister may appoint from time to time.
Unlike similar Queensland legislation reported in the August 2007 edition of Environment Quarterly (Clean Coal Technology Special Agreement Act 2007), the CCA Act does not commit the New South Wales Government to have any voluntary contributions to be treated as offsets under a National Emissions Trading Scheme.
Parliament issues Carbon Capture and Storage Briefing Paper
The Parliament of New South Wales released a Carbon Capture and Storage Briefing Paper (paper) in May 2008. The paper examines the capability of geo-sequestration technologies to reduce Australia's greenhouse gas emissions.
The paper concludes that carbon capture and storage will only be part of the solution and that it should be ‘considered as a promising but still somewhat unproven option that potentially offers very significant abatement potential and good integration into the existing energy industry. However, its abatement is likely to come at a significant cost, and it is unlikely to be able to make a significant contribution for well over a decade.’
Clean Coal Summit
The New South Wales Clean Coal Summit was held at Parliament House on 7 May 2008. The summit was attended by around 150 delegates from the mining, investment, infrastructure and research industries, together with state and Federal Government department officials. Keynote speaker at the summit was Professor Ross Garnaut.
Outcomes from the summit include:
- a proposal for a National Emissions Coal Council Carbon Storage Taskforce
- support for a coordinated national approach in the assessment and identification of potential storage sites and transport options
- near term targets to be established to drive technical innovation
- acknowledgment that there is an urgent need to accelerate clean coal technologies, and
- acknowledgement that the world will continue to rely on coal as an energy resource for many generations because of its abundance and importance as an energy source.
This follows the New South Wales Government’s announcement in April 2008 to establish a Clean Coal Council to help drive research and funding.
Government’s Energy Efficiency Strategy includes mandatory implementation of energy savings action plans by top 200 energy users
On 18 June 2008, the New South Wales Premier and the Minister for Climate Change and the Environment released the Energy Efficiency Strategy: 6 Step Action Plan. This is a $150 million initiative to help increase the state's energy efficiency.
This initiative follows the announcement by the New South Wales Premier on 8 May 2008 of new standards for government buildings. The premier said that by July 2011 all government-owned or tenanted buildings will need to have a minimum 4.5-star environment performance rating.
Some of the Energy Efficiency Strategy’s proposals include:
- supporting low income households to help improve their energy practices
- improving the energy efficiency of businesses
- improving governmental sustainability to reduce emissions by government departments to 2000 levels, and
- an energy saving trading scheme and target for New South Wales to be implemented by 1 January 2009.
Under the energy efficiency action plan the government will introduce legislation requiring the state’s top 200 energy users to implement the cost effective savings measured they have identified in their energy savings action plans. Currently the government only requires these users to prepare energy savings action plans to identify measures to be implemented over four years.
A key aspect of the Energy Efficiency Strategy will be the New South Wales Energy Efficiency Trading Scheme (NEET Scheme). The Department of Environment and Climate Change and the Department of Water and Energy held a joint Stakeholder Consultation Forum (forum) on 4 July 2008 to outline the proposed scheme and provide an opportunity for stakeholder feedback on the design of the NEET Scheme. The key messages emerging from the forum included that:
- the NEET Scheme is an attempt to revitalise the energy efficiency component of the existing Greenhouse Gas Reduction Scheme (GGAS)
- harmonisation of the NEET Scheme with existing energy efficiency trading schemes in Victoria and South Australia, and other regulatory reporting obligations (for example the National Greenhouse Energy Reporting Scheme) is an important consideration
- the New South Wales Government will set an economy-wide energy efficiency target and the NEET Scheme targets will contribute to this overall target, and
- the New South Wales Government’s ultimate objective is to work towards the implementation of a national energy efficiency trading scheme.
However, the primacy of the Carbon Pollution Reduction Scheme was emphasised and the forum indicated that a national energy efficiency trading scheme is extremely unlikely in the near future.
Design elements for the NEET Scheme were identified at the forum, but it was noted that these may change following consultation and further work by the New South Wales Government. It is proposed that the NEET Scheme will:
- cover energy efficiency activities in residential, commercial and industrial sectors (compared with the Victorian scheme which is confined to the residential sphere)
- initially only cover electricity (compared with the Victorian and South Australian schemes which include natural gas)
- make New South Wales electricity retailers, electricity generators operating as retailers, and market customers that take supply directly from the NEM, ‘liable parties’
- not provide for elective participants, unlike the current New South Wales GGAS
- cover all non-exempt grid-connected electricity used by customers in New South Wales
- exempt electricity sales to Trade Exposed Emissions Intensive Industry
- impose a CPI-adjusted penalty on those who fail to comply (although there is not expected to be a ‘make good’ provision if a liable party pays the penalty)
- allow anyone who is accredited for an ‘eligible activity’ to create a New South Wales Energy Efficiency Certificate
- require an ‘eligible activity’ to go beyond other mandatory requirements, not be claimed under any other scheme (for example, greenhouse friendly), and must take place on or after 1 January 2009, and
- be legislated to operate until 2020 (although the New South Wales Government would prefer to see a national scheme develop).
It is likely that the NEET Scheme will be implemented by amendments to the Electricity Supply Act 1995 (NSW) and additional regulations (if required). A NEET Rule will be approved by the Minister for Energy to provide details of the operation of the NEET Scheme.
A very strict timetable for the NEET Scheme’s introduction is emerging. Input from stakeholders is required by 6 August 2008 with the New South Wales Government intending to table legislation in the spring session of parliament. The NEET Scheme is to commence on 1 January 2009, and this will mark the end of the GGAS.
Trade Exposed Emissions Intensive Industry (TEEII) Summit held to discuss National Emissions Trading Scheme
The New South Wales Government hosted a major industry summit on 17 June 2008 to discuss the Commonwealth’s introduction of a National Emissions Trading Scheme (NETS) in 2010. About 150 government and industry representatives attended the summit.
Key issues and outcomes raised at the summit included:
- importance of getting the NETS and Mandatory Renewable Energy Target (MRET) schemes correct in order to minimise the cost of introduction
- industry calls for assistance to TEEIIs to adjust to carbon trading until competitor nations adopt similar scheme, and
- recognition that Australian export industries should not be left unfairly exposed to international competitors.
Carbon capture and storage set for trial in the Otway Basin
Australia’s first Carbon Capture and Storage (CCS) demonstration project has commenced in the Otway Basin (project). The project proposes to inject 100,000 tonnes of compressed carbon dioxide into a reservoir approximately 2,000 metres underground.
The project has been developed by the Cooperative Research Centre for Greenhouse Gas Technologies and is estimated to cost $40 million.
One of the key outcomes of the project is to demonstrate that the geological storage of carbon dioxide is a sustainable long-term solution to sequester carbon dioxide emissions. It is expected that if this project is successful, CCS technology will play a key role in achieving the Australian Government’s commitment to a 60 per cent reduction of carbon dioxide emissions by 2050 from 2000 levels. The project is therefore expected to be a significant driver in shaping the future of the CCS market.
CCS exploration in the Gippsland Basin
The Victorian State Budget included an allocation of $127 million towards CCS projects in the La Trobe Valley. This funding allocation provides another indication of the key role that the Victorian Government anticipates for CCS technology in reducing carbon dioxide emissions.
Energy efficiency mandated for home alterations
Home alterations will now be required to comply with five-star energy efficiency requirements. The standards came into effect in early May 2008 through the Building Code of Australia.
The requirements complement the five-star energy efficiency standard which has applied to the construction of new Victorian homes since 2005. They also complement various other Victorian Government initiatives, such as the ‘Make Your Home Green’ online resource.
This reform is in line with the move towards mandating green building requirements in Victoria.
Gearing the gas industry for the national emissions trading scheme, and the Solar Bonus Scheme: Clean Energy Act 2008
The Clean Energy Act 2008 (CE Act) received assent on 21 May 2008. The CE Act makes amendments to the Electricity Act 1994 (Electricity Act), the Mineral Resources Act 1989, the Petroleum and Gas (Production and Safety) Act 2004, the Petroleum Act 1923, the Coal Mining Safety and Health Act 1999 and the Mining and Quarrying Safety and Health Act 1999.
The CE Act makes amendments to the Electricity Act to increase the target under the 13 per cent Gas Scheme to 15 per cent in 2010 and create a power to allow further increases up to 18 per cent by 2019. This increase in target is conditional on the implementation of an emissions trading scheme into which the 13 per cent Gas Scheme would be transitioned.
The CE Act also creates a Solar Bonus Scheme, which requires the payment of 44 cents per kWh to all customers who have installed small photovoltaic systems to produce electricity and who use no more than 100MWh of electricity per year.
New standards proposed for new power stations: Greenhouse Gas Emission Reduction (Power Stations) Bill 2008
The Greenhouse Gas Emission Reduction (Power Stations) Bill 2008 (GGERPS Bill) is a private member's Bill and received a second reading in the Legislative Council on 5 June 2008. The GGERPS Bill proposes to limit the greenhouse gas intensity of new power stations constructed in Western Australia.
Specifically, the GGERPS Bill:
- prescribes a greenhouse gas emissions intensity standard
- prescribes a $500,000 penalty for constructing or operating a new power station that is not of a class or type that has been determined to meet this standard
- provides an exemption for peak load power stations and power stations with a nameplate capacity of 50 megawatts or less
- provides for an operational review of the proposed Act within five years, and
- makes related and consequential provisions, including providing for the publication and amendment of certain determinations on advice of the Environmental Protection Authority.
No developments for this quarter.
Tasmania may legislate state-based carbon emissions targets: Climate Change (State Action) Bill 2008
The Tasmanian Government released a Draft Climate Change (State Action) Bill 2008 (CCSA Bill) for public comment throughout the month of June 2008. The CCSA Bill is set to be introduced into parliament in July 2008. Among other things, the CCSA Bill proposed to:
- set a target to reduce Tasmania’s greenhouse gas emissions by 60 per cent by December 2050
- allow for the setting of interim or section-based targets through regulation, and
- establish an independent Tasmanian Climate Action Council (TCAC) which will:
- provide expert advice to government
- assess the actions and progress made toward achieving the 2050 target, and
- provide parliament with a report every two years.
The CCSA Bill would make Tasmania the second state to legislate specific targets for the reduction of carbon emissions.
Climate Change Policy out for comment
As advised in the May 2008 edition of Environment Quarterly, the Northern Territory Government committed itself in early 2008 to the creation of the territory’s first Climate Change Policy. Further to this, the services of Deloitte Touche Tohmatsu were secured in April 2008 and a Discussion Paper on NT Climate Change Issues was released for public consideration in June 2008.
The final strategy is due for release in early 2009.
Gross solar feed-in tariffs to commence: Electricity Feed-in (Renewable Energy Premium) Act 2008 (ACT)
The Electricity Feed-in (Renewable Energy Premium) Act 2008 (ACT) (EFIREP Act) was enacted on 9 July 2008. The EFIREP Act implements a renewable energy feed-in scheme into the ACT.
The purpose of a feed-in scheme is to create an incentive for homeowners to purchase and install solar photovoltaics. This is achieved by obliging electricity utilities to purchase energy generated by homeowners at a rate above the market price. Under the ACT scheme, the rate is set at almost four times the retail energy price.
A significant feature of the ACT scheme is that participants will receive remuneration for the gross amount of energy they supply to the grid. In South Australia, the feed-in scheme provides returns on the net amount of electricity supplied (the net amount being gross production minus household load). The benefit of the ACT gross metering approach is that it provides significantly better returns on investment for households.
Participants are guaranteed a fixed premium rate for a 20-year period. This offers participants certainty that their capital investment will generate long-term commercial returns. Participants can also re-sign to a new rate determined by the minister at the end of the 20-year period.
ACT may legislate state-based carbon emissions targets: Climate Change (Greenhouse Gas Emissions Targets) Bill 2008
The Climate Change (Greenhouse Gas Emissions Targets) Bill 2008 (CCGGET Bill) is a private members Bill which received its second reading in the Legislative Assembly on 2 July 2008. The CCGGET Bill proposes to set medium and long-term targets for the reduction of greenhouse gas emissions. The CCGGET Bill also outlines mechanisms for reporting and reviewing these targets.
The CCGGET Bill sets an interim target of 70 per cent of 1990 CO2e levels by 2020, and a long-term target of 40 per cent of 1990 CO2e levels by 2050. The minister is to determine how greenhouse gas emissions will be measured and is to produce an annual report which must include a report on the progress of achieving these targets. Regulation-making power is assigned to the Executive.
The CCGGET Bill is notably thin on how these targets are to be achieved. Debate about the merits of the CCGGET Bill is likely to continue, especially in light the national emissions trading scheme.
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