Amendments to the legislation

Most of the amendment Act changes take effect from 1 January 2011, however, Office of the Renewable Energy Regulator encourages all participants to seek their own legal advice and strongly recommend that they read the amendments in full.

General amendments to the Act include:

• referring to Renewable Energy Certificates (RECs) as Large-scale Generation Certificates (LGCs) or Small-scale Technology Certificates (STCs)
• separating the Register of RECs into the Register of LGCs and Register of STCs.  The Register of STCs will also include statements that confirm what installation STCs were created for. This includes solar water heater, heat pump water heaters and small generation units
• amending and including new definitions under section 5 of the Act
• introducing new requirements that will enforce non-compliance.  This includes:
  • civil penalty provisions, injunctions, enforceable undertaking and other actions that can be taken by the ORER under Part 15A and 15B of the Act
  • introducing new requirements for improper creation of certificates and providing false information (section 24A and 24B).
• allowing the Minister by legislative instrument to determine emerging renewable energy technology as eligible under the Act
• updating and introducing requirements for liable entities to lodge annual energy acquisition statements and surrendering certificates for LRET and SRES (section 44 – 48B of the Act)
• updating requirements for partial exemption certificates and providing the Minister with the ability to obtain data from or penalise companies that carry on an emission intensive trade exposed activity – section 46A to 46F of the Act
• removing reference to the Carbon Pollution Reduction Scheme Act 2010 in the regulations;
• automatically reflecting revised documents or standards that are referenced in the regulations;
• various transitional requirements relating to the creation and registration of RECs, including timelines for contracts
  
  
• reviewing the Act every two years from 30 June 2012 – section 162 of the Act. A report detailing the outcomes of the review must be provided to the Minister by 31 December in that year, ie 31 December 2012.  After receiving the report the Minister then has 15 parliamentary sitting days to table the report in parliament.

Amendments that support LRET under the Act include:

• adjusting the renewable energy targets (section 40) to give consideration to:
  • the amount of LGCs that will be valid by the end of the 2010 calendar year
  • the commencement of waste coal mine gas, if it becomes eligible in the future.
• allowing waste coal mine gas to be eligible from a day prescribed by the regulations rather than 30 June 2010
• allowing the regulator to accredit waste coal mine gas power stations within six months of the regulations prescribed day
• allows the regulator in certain circumstances to provide additional time to create LGCs for power stations from the 2008 generation year.

Amendments that support SRES under the Act include:

• the introduction of the clearing house under Part 2A of the Act.  The clearing house allows agents and individuals that are registered owners of STCs to trade STCs in the clearing house for a set price of $40 per STC plus GST (if applicable).  Note this does not preclude agents and individuals trading STCs outside the clearing house
• limiting the amount of STCs that can be created by solar water heaters and heat pump water heaters – section 21 (1A)
• allows the regulator to determine the number of STCs that may be created for a particular solar water heater installation – section 22 (2)
• allows the regulations to limit the amount of STCs that can be created by small generation unit – section 23A (1A)
• establishing a scheme for inspection of new small generation unit installations – section 23AAA
• allows the regulations to amend the solar credit multiplier and the first kW of rated power output that can be used for the solar credit multiplier – section 23B
• introduces new eligibly requirements for off-grid small generation unit installations, including solar credit multiplier requirements and caps – section 23B
• allowing the regulator to create STCs for liable entities if there are no STCs in the market to meet their compliance obligations under the Act (section 30P of the Act)
• introducing quarter surrender requirements for liable entities (section 38AA – 38AI of the Act)
• the regulator to give an estimate of the liable entity’s first, second and third quarter STP surrender for the given year by 15 April if the liable entity provides a energy acquisition station by 1 April or not if the regulator has not assessed they energy acquisition statement by 1 April – section 40C of the Act
• introducing the small-scale technology percentage (STP) – section 40A of the Act
• the regulator to publish an estimate of the STP for each of the next 2 years by 31 March after the given STP has been set – section 40B of the Act
• introducing requirements for paying the small-scale technology shortfall charge (SRESC) – section 67 of the Act and paying the penalty charge – section 99A of the Act.  Note, if the STSC is paid there is no redemption clauses in the Act
• allowing the regulator to publish liable entities that have STC shortfalls for a year – section 134 of the Act.

Amendments to the LCharge Act

Amendments to the Renewable Energy (Electricity) (Charge) Act 2000 apply from 1 January 2011 and:

• has been changed to administer the large-scale generation shortfall charge (LRESC) under the LRET
• changes the renewable energy shortfall charge reference to the LRESC
• changes the title of the Renewable Energy (Electricity) (Charge) Act 2000 to Renewable Energy (Electricity) (Large-scale Generation Shortfall Charge) Act 2000.

Inclusion of new SCharge Act

The Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Act 2010 has been implemented to administer the small-scale technology shortfall charge (SRESC) under the SRES.  The SRESC is $65 per STC that is not surrendered per quarter and will apply from 1 January 2011.

Amendments to the regulations

In addition to the legislation changes, consequential amendments are required to the Renewable Energy (Electricity) Regulations 2001 (the Regulations). 

For administrative information on these changes contact the Clean Energy Regulator via email at retscheme@cleanenergyregulator.gov.au

For policy information on these changes contact the RET policy at the Department of Climate Change and Energy Efficiency

The expanded Renewable Energy Target (RET) scheme was proposed in 2009 to encourage additional generation of electricity from renewable energy sources to meet the Government’s commitment to achieving a 20% share of renewables in Australia’s electricity supply in 2020.

Two amendment bills were passed on 20 August 2009 and received Royal Assent on 8 September 2009. The legislation commenced on the 9 September 2009.

Amendments to the Renewable Energy (Electricity) Act 2000 included:

• Increase in and extension of the renewable energy target
  • The target increases from 9,500 GWh to 45,000 GWh by 2020
  • The target is extended from 2020 to 2030.
• Solar Credits (REC Multiplier) – eligible small generation units (small-scale solar PV, wind and hydro electricity systems) can receive Solar Credits
  • Solar credits is a mechanism under the expanded RET scheme which multiplies the number of RECs able to be created for the system
  • Solar Credits applies to eligible systems installed on or after 9 June 2009.
• Partial exemption from liability under the scheme in respect of emissions intensive trade exposed activities. Transition of existing and proposed state renewable energy target schemes into the RET
• Existing waste coal mine gas power projects that meet RET eligibility criteria will be able to create RECs up to an annual cap, for a limited period, as a transitional measure to underpin the continued viability of these projects. Annual targets have been increased to ensure no renewable energy is displaced
• Folding state based certificate schemes into the national RET
• COAG to examine some of the eligibility provisions of the RET for new small-scale technologies as well as heat pumps and rules for off-grid resource projects to ensure that the eligibility rules remain relevant over time to reflect new technologies and recent developments in renewable technology and resource project development structures
• A review of the operation of the RET as soon as practicable after 31 December 2013. This includes:
  • a review of the Act, Charge Act and Regulations by a person, that in the Minister’s opinion, possesses appropriate qualification to undertake the review
  • providing a report of the review to the Minister before 30 June 2014
  • the Minister must then table the report in Parliament within 15 sittings days of receiving the report.

Amendments to the Renewable Energy (Electricity) Charge Act 2000 included:

• An increase of the shortfall charge from $40 per MWh to $65 per MWh.
  • The shortfall charge encourages compliance with the RET as liable entities who do not meet their obligations to purchase renewable energy certificates will need to pay this shortfall charge.

Amendments to the regulations

In addition to the legislation changes, consequential amendments are required to the Renewable Energy (Electricity) Regulations 2001 (the Regulations).

The first amendment incorporates changes that allow eligible small generation units (small photovoltaic, wind and electric hydro) to claim additional RECs under a multiplier rule. This amendment is generally referred to as the Solar Credits scheme. The Amendment Regulations were registered on 9 September 2009.

The second amendment incorporates changes that expand the eligible requirements for solar water heaters with a volumetric storage capacity over 700 litres. As part of these requirements eligible installations must be accompanied by a statutory declaration otherwise the installation will not be eligible for RECs. The Amendment Regulations were registered on 9 September 2009. Further amendments to the Regulations are expected and detail will be provided on the ORER website.

For administrative information on these changes contact the Clean Energy Regulator 1300 553 542 or via email at retscheme@cleanenergyregulator.gov.au

For policy information on these changes contact the Renewable Electricity Markets, Strategies and Coordination Division of the Department of Climate Change and Energy Efficiency

A review to assess the efficiency and effectiveness of the Mandatory Renewable Energy Target (MRET), and its implementation, administration and operation of the Act, was conducted during 2003, the third year of operation of the MRET. The review was conducted by a panel independent of the Australian Government.

As part of the Australian Government's response to the review, an Amendment Bill was introduced into the parliament in 2006. The Renewable Energy (Electricity) Amendment Act 2006 was passed by the parliament on 22 June 2006 and received Royal Assent on 30 June 2006. The legislation commenced on 11 September 2006.

Amendments to the Renewable Energy (Electricity) Act 2000 included:

• allowing for recent reforms in the National Electricity Market and potential new market operators;
• setting time-limits for the creation of renewable energy certificates and providing the opportunity to voluntarily surrender certificates
• providing for provisional accreditation of proposed generation projects, establishing timeframes for determining the eligibility of proposed projects by the Renewable Energy Regulator and clarifying the components of a power station
• allowing for the publication of additional data on baselines and renewable electricity generation;
• clarifying the provisions and definitions in the Act for Eligible Renewable Energy Sources and providing increased opportunities for bioenergy
• clarifying the provisions with respect to the claiming of renewable energy certificates associated with solar water heaters and small generation units
• clarifying the provisions in relation to the eligibility of solar water heaters and expediting the process by which certificates can be claimed for new solar water heater models as they become commercially available
• clarifying the provisions in relation to a relevant acquisition of electricity to ensure that only one entity is made liable in relation to the purchase of a particular quantum of electricity
• providing the Renewable Energy Regulator with the power to vary a number of assessments and determinations under the Act, including varying the annual energy acquisition statement, renewable energy shortfall statement and the 1997 eligible renewable energy baselines for accredited power stations
• providing the Renewable Energy Regulator with information gathering powers to enable the effective monitoring and compliance with the provisions of the legislation
• allowing for the suspension of an accredited power station under a number of circumstances including where gaming is suspected; that is, whereby power station outputs are manipulated to increase the number of renewable energy certificates that can be created without increasing renewable energy generation
• removing a statutory requirement to expose new or amended regulations to a 30-day public consultation process.

Amendments to the regulations

In addition to the legislation changes, consequential amendments are required to the Renewable Energy (Electricity) Regulations 2001 (the Regulations).
The first amendment was conducted by the Australian Greenhouse Office and allows for the commencement of new electricity market arrangements in Western Australian that commenced on 21 September 2006. This amendment provides a definition of the Independent Market Operator (IMO) in Western Australia and inserts Regulation 21A to provide that the IMO is a prescribed body for paragraphs 31(2)(c) and 32(1)(a) and Section 34 of the Renewable Energy (Electricity) Act 2000. This has the effect that an acquisition of electricity by IMO is not a relevant acquisition, and that an acquisition of electricity from the IMO is a relevant acquisition for the purposes of the Act.
The second and final amendment process for the Regulations as part of the legislation review changes was conducted by the Australian Greenhouse Office and come into effect on 6 October 2007. The amendment process includes:

• clarifying definitions
• further defining requirements for Energy Generation Returns
• providing requirements for Solar Water Heater and Small Generation Unit Returns
• clarifying the meanings of eligible renewable energy sources and sources that are not eligible renewable energy sources
• clarifying the eligibility criteria relevant to the treatment of native forest wood waste
• redefining plantations as energy crops and broadening the definition of municipal solid waste
• clarifying the circumstances under which the Regulator can suspend an accredited power station
• clarifying the circumstances under which a variation of 1997 eligible renewable power baselines is possible
• clarifying the components for a power station and calculation of the electricity generation for a power station
• clarifying the determination of fees for the provisional accreditation of power stations;
• providing details for a register of solar water heaters
• clarifying the arrangements in respect to when a solar water heater and small generation unit is taken to have been installed
• clarifying the arrangements in respect to claiming renewable energy certificates for solar water heaters and small generation units
• clarifying the determination of administration fees for the surrender of renewable energy certificates when a renewable energy shortfall charge is redeemed
• allowing for reforms in the National Electricity Market.