Commonwealth: Clean Energy Legislation Amendment Act 2012 (Cth)

Clean Energy Legislation Amendment Act 2012 No. 84, 2012 as amended Compilation start date: 1 July 2012 Includes amendments up to: Act No. 103, 2013 About this compilation The compiled Act This is a compilation of the Clean Energy Legislation Amendment Act 2012 as amended and in force on 1 July 2012. It includes any amendment affecting the compiled Act to that date. This compilation was prepared on 4 July 2013. The notes at the end of this compilation (the endnotes) include information about amending Acts and instruments and the amendment history of each amended provision. Uncommenced provisions and amendments If a provision of the compiled Act is affected by an uncommenced amendment, the text of the uncommenced amendment is set out in the endnotes. Application, saving and transitional provisions for amendments If the operation of an amendment is affected by an application, saving or transitional provision, the provision is identified in the endnotes. Modifications If a provision of the compiled Act is affected by a textual modification that is in force, the text of the modifying provision is set out in the endnotes. Provisions ceasing to have effect If a provision of the compiled Act has expired or otherwise ceased to have effect in accordance with a provision of the Act, details of the provision are set out in the endnotes. Contents 1 Short title 2 Commencement 3 Schedule(s) Schedule 1—General amendments Part 1—Amendments Clean Energy Act 2011 National Greenhouse and Energy Reporting Act 2007 Part 2—Transitional provisions Schedule 2—Amendments relating to gaseous fuel Clean Energy Act 2011 Fuel Tax Act 2006 Schedule 3—Amendments relating to the carbon farming initiative Carbon Credits (Carbon Farming Initiative) Act 2011 Schedule 4—Amendments relating to the Australian National Registry of Emissions Units Australian National Registry of Emissions Units Act 2011 Schedule 5—Amendments relating to the Clean Energy Finance Corporation Australian Renewable Energy Agency Act 2011 Clean Energy Regulator Act 2011 Endnotes Endnote 1—Legislation history Endnote 2—Amendment history Endnote 3—Uncommenced amendments [none] Endnote 4—Misdescribed amendments [none] An Act to amend legislation relating to clean energy, and for other purposes 1 Short title This Act may be cited as the Clean Energy Legislation Amendment Act 2012. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 28 June 2012 2. Schedule 1 The later of: 1 July 2012 (a) the start of the day after this Act receives the Royal Assent; and (b) immediately after the commencement of Part 2 of Schedule 1 to the Clean Energy (Consequential Amendments) Act 2011. 3. Schedule 2 The latest of: 1 July 2012 (a) the start of the day after this Act receives the Royal Assent; and (b) immediately after the commencement of Schedule 1 to the Clean Energy (Fuel Tax Legislation Amendment) Act 2011; and (c) immediately after the commencement of the provision(s) covered by table item 2. 4. Schedules 3 and 4 The day after this Act receives the Royal Assent. 29 June 2012 5. Schedule 5 At the same time as section 3 of the Clean Energy Finance Corporation Act 2012 commences. 3 August 2012 Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act. (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act. 3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. 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 equivalence) 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 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 (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 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 (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; the 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 members 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. (4AA) 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). (4AB) 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", substitute "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 11D. 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 Sections 11AA, 11AB, 11B and 11C Repeal the sections, substitute: 11B Operational control—nominated person Eligible nomination test (1) For the purposes of this 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 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 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 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 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 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; and (c) the facility is 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 venture; 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 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. Exceptions (21) A person is not required 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) that 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 times 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. Exceptions (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 an unsatisfactory compliance record if, and only if: (a) at any time during the preceding 5 years, the person has breached 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 charge 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 given 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; (aab) cancel a nomination under section 11C; Part 2—Transitional provisions 59 Transitional—determinations 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 determination has effect, after the commencement 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. Schedule 2—Amendments relating to gaseous fuel Clean Energy Act 2011 1 Section 4 After: • If a natural gas supplier supplies natural gas, and does not surrender one eligible emissions unit for each tonne of carbon dioxide equivalence of the potential greenhouse gas emissions embodied in the natural gas, the supplier is liable to pay unit shortfall charge. insert: • If a person imports or produces liquefied petroleum gas or liquefied natural gas for non‑transport use, and does not surrender one eligible emissions unit for each tonne of carbon dioxide equivalence of the potential greenhouse gas emissions embodied in the liquefied petroleum gas or liquefied natural gas, the person is liable to pay unit shortfall charge. 2 Section 5 (at the end of the definition of designated fuel) Add: ; or (c) liquefied natural gas; or (d) liquefied petroleum gas. 3 Section 5 Insert: gaseous fuel supplier means a person who supplies: (a) liquefied natural gas; or (b) liquefied petroleum gas; or (c) natural gas. 4 Section 5 Insert: non‑transport combustion means combustion that does not occur in: (a) an internal combustion engine in a motor vehicle; or (b) an internal combustion engine in a vessel. 5 Section 5 (definition of taxable fuel) After "Fuel Tax Act 2006", insert "(for this purpose, disregard paragraph (b) of the definition of taxable fuel in section 110‑5 of that Act)". 6 Section 19 Omit: • If a natural gas supplier supplies an amount of natural gas to another person (the recipient) who quotes the recipient's Obligation Transfer Number (OTN) in relation to the supply, the supply will not count towards the supplier's liability for the financial year. • If a person (the OTN holder) quotes the OTN holder's OTN in relation to the supply of an amount of natural gas, the OTN holder may be a liable entity. substitute: • If a person imports or produces liquefied petroleum gas or liquefied natural gas, during a financial year, for non‑transport use: (a) the person is a liable entity for the financial year; and (b) the number of tonnes of carbon dioxide equivalence of the potential greenhouse gas emissions embodied in the liquefied petroleum gas or liquefied natural gas is a provisional emissions number of the person for the financial year. • If a person supplies an amount of natural gas, liquefied petroleum gas or liquefied natural gas to another person (the recipient) who quotes the recipient's Obligation Transfer Number (OTN) in relation to the supply, the supply will not count towards the supplier's liability for the financial year. • If a person (the OTN holder) quotes the OTN holder's OTN in relation to the supply of an amount of natural gas, liquefied petroleum gas or liquefied natural gas, the OTN holder may be a liable entity. 7 At the end of section 20 Add: Gaseous fuel—no double counting (12) 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 non‑transport combustion of liquefied petroleum gas or liquefied natural gas that was supplied by a gaseous fuel supplier to a person (the recipient) (who may be the person mentioned in paragraph (a)); and (c) the recipient did not quote the recipient's OTN in relation to the supply of the liquefied petroleum gas or liquefied natural gas; and (d) the gaseous fuel supplier has, under section 36B or 36C, a preliminary emissions number for an eligible financial year; and (e) the preliminary emissions number is wholly or partly attributable to the import, manufacture or production of the liquefied petroleum gas or liquefied natural gas; the amount mentioned in paragraph (b): (f) does not count for the purposes of subsection (1); and (g) counts for the purposes of paragraph (4)(b). (13) 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 non‑transport combustion of liquefied petroleum gas or liquefied natural gas that was supplied by a gaseous fuel supplier to a person (the recipient) (who may be the person mentioned in paragraph (a)); and (c) the recipient did not quote the recipient's OTN in relation to the supply of the liquefied petroleum gas or liquefied natural gas; and (d) the gaseous fuel supplier has, under section 36B or 36C, a preliminary emissions number for an eligible financial year; and (e) the preliminary emissions number is wholly or partly attributable to the import, manufacture or production of the liquefied petroleum gas or liquefied natural gas; the amount mentioned in paragraph (b): (f) does not count for the purposes of subsection (1); and (g) counts for the purposes of paragraph (5)(b). 8 After subsection 21(8B) Insert: Gaseous fuel—no double counting (8C) 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 non‑transport combustion of liquefied petroleum gas or liquefied natural gas that was supplied by a gaseous fuel supplier to a person (the recipient) (who may be a participant in the designated joint venture); and (c) the recipient did not quote the recipient's OTN in relation to the supply of the liquefied petroleum gas or liquefied natural gas; and (d) the gaseous fuel supplier has, under section 36B or 36C, a preliminary emissions number for an eligible financial year; and (e) the preliminary emissions number is wholly or partly attributable to the import, manufacture or production of the liquefied petroleum gas or liquefied natural gas; the amount mentioned in paragraph (b): (f) does not count for the purposes of subsection (1); and (g) counts for the purposes of paragraph (4)(b). (8D) 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 non‑transport combustion of liquefied petroleum gas or liquefied natural gas that was supplied by a gaseous fuel supplier to a person (the recipient) (who may be a participant in the designated joint venture); and (c) the recipient did not quote the recipient's OTN in relation to the supply of the liquefied petroleum gas or liquefied natural gas; and (d) the gaseous fuel supplier has, under section 36B or 36C, a preliminary emissions number for an eligible financial year; and (e) the preliminary emissions number is wholly or partly attributable to the import, manufacture or production of the liquefied petroleum gas or liquefied natural gas; the amount mentioned in paragraph (b): (f) does not count for the purposes of subsection (1); and (g) counts for the purposes of paragraph (5)(b). 9 At the end of section 22 Add: Gaseous fuel—no double counting (10) 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 non‑transport combustion of liquefied petroleum gas or liquefied natural gas that was supplied by a gaseous fuel supplier to a person (the recipient) (who may be the holder); and (c) the recipient did not quote the recipient's OTN in relation to the supply of the liquefied petroleum gas or liquefied natural gas; and (d) the gaseous fuel supplier has, under section 36B or 36C, a preliminary emissions number for an eligible financial year; and (e) the preliminary emissions number is wholly or partly attributable to the import, manufacture or production of the liquefied petroleum gas or liquefied natural gas; the amount mentioned in paragraph (b): (f) does not count for the purposes of subsection (1); and (g) counts for the purposes of paragraph (4)(b). (11) 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 non‑transport combustion of liquefied petroleum gas or liquefied natural gas that was supplied by a gaseous fuel supplier to a person (the recipient) (who may be the holder); and (c) the recipient did not quote the recipient's OTN in relation to the supply of the liquefied petroleum gas or liquefied natural gas; and (d) the gaseous fuel supplier has, under section 36B or 36C, a preliminary emissions number for an eligible financial year; and (e) the preliminary emissions number is wholly or partly attributable to the import, manufacture or production of the liquefied petroleum gas or liquefied natural gas; the amount mentioned in paragraph (b): (f) does not count for the purposes of subsection (1); and (g) counts for the purposes of paragraph (5)(b). 10 After subsection 23(9B) Insert: Gaseous fuel—no double counting (9C) 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 non‑transport combustion of liquefied petroleum gas or liquefied natural gas that was supplied by a gaseous fuel supplier to a person (the recipient) (who may be the person mentioned in paragraph (a)); and (c) the recipient did not quote the recipient's OTN in relation to the supply of the liquefied petroleum gas or liquefied natural gas; and (d) the gaseous fuel supplier has, under section 36B or 36C, a preliminary emissions number for an eligible financial year; and (e) the preliminary emissions number is wholly or partly attributable to the import, manufacture or production of the liquefied petroleum gas or liquefied natural gas; the amount mentioned in paragraph (b): (f) does not count for the purposes of subsection (1); and (g) counts for the purposes of paragraph (4)(b). (9D) 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 non‑transport combustion of liquefied petroleum gas or liquefied natural gas that was supplied by a gaseous fuel supplier to a person (the recipient) (who may be the person mentioned in paragraph (a)); and (c) the recipient did not quote the recipient's OTN in relation to the supply of the liquefied petroleum gas or liquefied natural gas; and (d) the gaseous fuel supplier has, under section 36B or 36C, a preliminary emissions number for an eligible financial year; and (e) the preliminary emissions number is wholly or partly attributable to the import, manufacture or production of the liquefied petroleum gas or liquefied natural gas; the amount mentioned in paragraph (b): (f) does not count for the purposes of subsection (1); and (g) counts for the purposes of paragraph (5)(b). 11 After subsection 24(8B) Insert: Gaseous fuel—no double counting (8C) 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 non‑transport combustion of liquefied petroleum gas or liquefied natural gas that was supplied by a gaseous fuel supplier to a person (the recipient) (who may be a participant in the designated joint venture); and (c) the recipient did not quote the recipient's OTN in relation to the supply of the liquefied petroleum gas or liquefied natural gas; and (d) the gaseous fuel supplier has, under section 36B or 36C, a preliminary emissions number for an eligible financial year; and (e) the preliminary emissions number is wholly or partly attributable to the import, manufacture or production of the liquefied petroleum gas or liquefied natural gas; the amount mentioned in paragraph (b): (f) does not count for the purposes of subsection (1); and (g) counts for the purposes of paragraph (4)(b). (8D) 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 non‑transport combustion of liquefied petroleum gas or liquefied natural gas that was supplied by a gaseous fuel supplier to a person (the recipient) (who may be a participant in the designated joint venture); and (c) the recipient did not quote the recipient's OTN in relation to the supply of the liquefied petroleum gas or liquefied natural gas; and (d) the gaseous fuel supplier has, under section 36B or 36C, a preliminary emissions number for an eligible financial year; and (e) the preliminary emissions number is wholly or partly attributable to the import, manufacture or production of the liquefied petroleum gas or liquefied natural gas; the amount mentioned in paragraph (b): (f) does not count for the purposes of subsection (1); and (g) counts for the purposes of paragraph (5)(b). 12 After subsection 25(7B) Insert: Gaseous fuel—no double counting (7C) 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 non‑transport combustion of liquefied petroleum gas or liquefied natural gas that was supplied by a gaseous fuel supplier to a person (the recipient) (who may be the holder); and (c) the recipient did not quote the recipient's OTN in relation to the supply of the liquefied petroleum gas or liquefied natural gas; and (d) the gaseous fuel supplier has, under section 36B or 36C, a preliminary emissions number for an eligible financial year; and (e) the preliminary emissions number is wholly or partly attributable to the import, manufacture or production of the liquefied petroleum gas or liquefied natural gas; the amount mentioned in paragraph (b): (f) does not count for the purposes of subsection (1); and (g) counts for the purposes of paragraph (4)(b). (7D) 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 non‑transport combustion of liquefied petroleum gas or liquefied natural gas that was supplied by a gaseous fuel supplier to a person (the recipient) (who may be the holder); and (c) the recipient did not quote the recipient's OTN in relation to the supply of the liquefied petroleum gas or liquefied natural gas; and (d) the gaseous fuel supplier has, under section 36B or 36C, a preliminary emissions number for an eligible financial year; and (e) the preliminary emissions number is wholly or partly attributable to the import, manufacture or production of the liquefied petroleum gas or liquefied natural gas; the amount mentioned in paragraph (b): (f) does not count for the purposes of subsection (1); and (g) counts for the purposes of paragraph (5)(b). 13 After Division 3 of Part 3 Insert: Division 3A—Liquefied petroleum gas, and liquefied natural gas, for non‑transport use 36B Liable entity—import of liquefied petroleum gas or liquefied natural gas for non‑transport use Preliminary emissions number (1) For the purposes of this section, if: (a) an amount of liquefied petroleum gas or liquefied natural gas is imported; and (b) that amount is entered for home consumption during an eligible financial year; and (c) the eligible financial year begins on or after 1 July 2013; and (d) apart from any remission of customs duty, customs duty is or was payable by a person on that amount; and (e) the customs duty is remitted on the grounds that the liquefied petroleum gas or liquefied natural gas is not used, or intended for use, in an internal combustion engine in either a motor vehicle or a vessel; and (f) that amount is not an amount that, under the regulations, is exempt from this subsection; and (g) the potential greenhouse gas emissions embodied in the amount mentioned in paragraph (a) have a carbon dioxide equivalence of a particular number of tonnes; that number is a preliminary emissions number of the person for the eligible financial year. Provisional emissions number and liable entity (2) If the person has, under subsection (1), one or more preliminary emissions numbers for the eligible financial year, then, for the purposes of this Act: (a) the sum of the preliminary emissions numbers is a provisional emissions number of the person for the eligible financial year; and (b) the person is a liable entity for the eligible financial year. Reduction of provisional emissions number (3) If: (a) the person has, under subsection (2), a provisional emissions number for an eligible financial year; and (b) the person has one or more netted‑out numbers for the eligible financial year (see subsections (4) and (5)); the provisional emissions number is to be reduced (but not below zero) by the total of those netted‑out numbers. Netted‑out numbers (4) The regulations may provide that, for the purposes of this section, a number ascertained in accordance with the regulations is a netted‑out number of a person for an eligible financial year ascertained in accordance with the regulations. (5) If: (a) a person has, under subsection (1), a preliminary emissions number for an eligible financial year; and (b) the preliminary emissions number is attributable to the import of an amount of liquefied petroleum gas or liquefied natural gas; and (c) during an eligible financial year, the person supplies an amount of liquefied petroleum gas or liquefied natural gas to another person (the OTN holder) who quotes the OTN holder's OTN in relation to the supply; and (d) the supplied amount is the whole or a part of the amount mentioned in paragraph (b); and (e) the potential greenhouse gas emissions embodied in the supplied amount have a carbon dioxide equivalence of a particular number of tonnes; that number is a netted‑out number of the first‑mentioned person for the eligible financial year mentioned in paragraph (c). 36C Liable entity—production of liquefied petroleum gas or liquefied natural gas for non‑transport use Preliminary emissions number (1) For the purposes of this section, if: (a) an amount of liquefied petroleum gas or liquefied natural gas is manufactured or produced in Australia; and (b) that amount is entered for home consumption during an eligible financial year; and (c) the eligible financial year begins on or after 1 July 2013; and (d) apart from any remission of excise duty, excise duty is or was payable by a person on that amount; and (e) the excise duty is remitted on the grounds that the liquefied petroleum gas or liquefied natural gas is not used, or intended for use, in an internal combustion engine in either a motor vehicle or a vessel; and (f) that amount is not an amount that, under the regulations, is exempt from this subsection; and (g) the potential greenhouse gas emissions embodied in the amount mentioned in paragraph (a) have a carbon dioxide equivalence of a particular number of tonnes; that number is a preliminary emissions number of the person for the eligible financial year. Provisional emissions number and liable entity (2) If the person has, under subsection (1), one or more preliminary emissions numbers for the eligible financial year, then, for the purposes of this Act: (a) the sum of the preliminary emissions numbers is a provisional emissions number of the person for the eligible financial year; and (b) the person is a liable entity for the eligible financial year. Reduction of provisional emissions number (3) If: (a) the person has, under subsection (2), a provisional emissions number for an eligible financial year; and (b) the person has one or more netted‑out numbers for the eligible financial year (see subsections (4) and (5)); the provisional emissions number is to be reduced (but not below zero) by the total of those netted‑out numbers. Netted‑out numbers (4) The regulations may provide that, for the purposes of this section, a number ascertained in accordance with the regulations is a netted‑out number of a person for an eligible financial year ascertained in accordance with the regulations. (5) If: (a) a person has, under subsection (1), a preliminary emissions number for an eligible financial year; and (b) the preliminary emissions number is attributable to the manufacture or production of an amount of liquefied petroleum gas or liquefied natural gas; and (c) during an eligible financial year, the person supplies an amount of liquefied petroleum gas or liquefied natural gas to another person (the OTN holder) who quotes the OTN holder's OTN in relation to the supply; and (d) the supplied amount is the whole or a part of the amount mentioned in paragraph (b); and (e) the potential greenhouse gas emissions embodied in the supplied amount have a carbon dioxide equivalence of a particular number of tonnes; that number is a netted‑out number of the first‑mentioned person for the eligible financial year mentioned in paragraph (c). 36D Liable entity—supply of liq