Commonwealth: Renewable Energy (Electricity) Act 2000 (Cth)

Renewable Energy (Electricity) Act 2000 No. 174, 2000 Compilation No. 32 Compilation date: 1 January 2025 Includes amendments: Act No. 60, 2024 About this compilation This compilation This is a compilation of the Renewable Energy (Electricity) Act 2000 that shows the text of the law as amended and in force on 1 January 2025 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Part 1—Preliminary 1 Short title 2 Commencement 3 Object/outline 4 Years to which this Act applies 5 Definitions 6 Act binds Crown 7 Application to the external Territories 7A Tax deductibility 7B Constitutional basis 7C Immunity from State laws Part 2—Renewable energy certificates Division 1—Preliminary 8 Overview of Part Division 2—Registration of persons 9 Who can register 10 Applying for registration 11 Regulator to refuse or approve application 12 Regulator to allocate registration numbers Division 2A—Provisional accreditation of power stations 12A Application for provisional accreditation of a power station 12B Regulator may give provisional accreditation 12C Time limit for deciding applications Division 3—Accreditation of eligible power stations 13 Application for accreditation 14 Regulator to determine certain matters 15 Regulator to approve or refuse application 15A Time limit for deciding applications 15B Nominated person for power station 16 Regulator to allocate identification codes 17 What is an eligible renewable energy source? 17A What is eligible WCMG? Division 4—Creation of renewable energy certificates Subdivision AA—Preliminary 17B Overview of Division Subdivision A—Large‑scale generation certificates for accredited power stations 17C Large‑scale generation certificates 18 Creating certificates for additional renewable electricity 19 When certificates may be created 20 Electricity generation return 20A Amending electricity generation returns Subdivision B—Small‑scale technology certificates for solar water heaters 20B Small‑scale technology certificates 21 When a certificate may be created 22 How many certificates may be created 23 Who may create a certificate 23AA Register of solar water heaters Subdivision BA—Small‑scale technology certificates for small generation units 23AB Small‑scale technology certificates 23A When a certificate may be created 23AAA Regulations to establish scheme for inspection of new installations of small generation units 23B How many certificates may be created 23C Who may create a certificate 23D No other certificates to be created 23E Election to not create certificates under this Subdivision Subdivision BB—Solar water heater and small generation unit return 23F Solar water heater and small generation unit return Subdivision C—Improper creation of certificates 24 Improper creation of certificates—offences 24A Improper creation of certificates—civil penalty 24B False etc. information resulting in improper creation of certificates under Subdivision B or BA—civil penalty Division 5—Form and registration of certificates 25 Form and content of large‑scale generation certificates 25A Form and content of small‑scale technology certificates 26 Certificates must be registered Division 6—Transfer of certificates 27 Certificates may be transferred 28 Regulator to be notified Division 7—Retirement of certificates 28A Registered owner may surrender certificate 29 Retirement of certificates Division 8—Suspension of registration 30 Suspension of registration—conviction of offence 30A Suspension of registration—other grounds Division 9—Changing the nominated person for an accredited power station 30B Changing the nominated person for an accredited power station Division 10—Varying what constitutes a power station 30C Varying what constitutes a power station Division 11—Suspending the accreditation of a power station 30D Suspending the accreditation of a power station—interconnected power stations 30E Suspending the accreditation of a power station—other grounds Division 12—Varying 1997 eligible renewable power baselines and 2008 WCMG limits 30F Varying 1997 eligible renewable power baselines 30G Varying 2008 WCMG limits Part 2A—Clearing house for small‑scale technology certificates Division 1—Preliminary 30H Overview of Part Division 2—Regulator to establish and operate clearing house 30J Regulator to establish and operate clearing house Division 3—Entering certificates into the clearing house 30K Application for certificate to be entered into the clearing house 30L Regulator to enter certificate into the clearing house Division 4—Purchase of certificates through the clearing house 30LA Clearing house price etc. 30M Application for purchase of certificate through the clearing house 30N If there is a certificate on the clearing house transfer list—Regulator to transfer certificate 30P If there is no certificate on the clearing house transfer list—Regulator to create certificate 30Q Form and content of certificates created by the Regulator Division 5—Renewable Energy Special Account 30R Renewable Energy Special Account 30S Credits to the Renewable Energy Special Account 30T Purposes of the Renewable Energy Special Account Division 6—Other matters 30U Regulations about the operation of the clearing house Part 3—Acquisition of electricity 31 What are relevant acquisitions? 32 Wholesale acquisitions 33 Notional wholesale acquisitions 34 Special provision relating to transactions involving AEMO or a person or body prescribed by the regulations Part 4—Renewable energy shortfall charge Division 1AA—Preliminary 34A Overview of Part Division 1—Liability to charge Subdivision A—Liable entities 35 Liable entities Subdivision B—Large‑scale generation shortfall charge 36 Large‑scale generation shortfall charge payable by liable entity 37 Amount of charge 38 Determination of large‑scale generation shortfall Subdivision C—Small‑scale technology shortfall charge 38AA Interpretive provisions relating to liability for small‑scale technology shortfall charge etc. 38AB Small‑scale technology shortfall charge payable by liable entity 38AC Amount of charge 38AD Determination of small‑scale technology shortfall 38AE Quarterly shortfalls for the quarters of a year 38AF Energy acquisition statement lodged for previous year: application to have amount apply instead of previous year's reduced acquisitions 38AG No energy acquisition statement lodged for previous year: application to have amount apply as if it were previous year's reduced acquisitions 38AH No energy acquisition statement lodged for previous year: default rule 38AI General provisions relating to applications under sections 38AF and 38AG Division 1A—Exemption from liability to charge 38A Object 38B Amount of exemption 38C Information about exemptions to be published on Regulator's website Division 2—Renewable power percentage for large‑scale generation shortfall charge 39 Regulations to specify renewable power percentage 40 Required GWh of renewable source electricity Division 2A—Small‑scale technology percentage for small‑scale technology shortfall charge 40A Regulations to specify small‑scale technology percentage Division 2AA—Emerging renewable energy technologies 40AB Inclusion of emerging renewable energy technologies Division 3—Other provisions related to renewable energy shortfall charge 40B Regulator to publish estimate of small‑scale technology percentage 40C Regulator to give liable entity estimate of current year's required surrender amounts for first 3 quarters 41 Arrangements to avoid or reduce renewable energy shortfall charge 42 Application of Act to Commonwealth 43 Cancellation of exemptions from charges Part 5—Statements, certificates and assessments Division 1AA—Preliminary 43A Overview of Part Division 1—Statements Subdivision A—Annual energy acquisition statements 44 Annual energy acquisition statements 44A Surrender of large‑scale generation certificates in energy acquisition statement 45 Surrender of small‑scale technology certificates in quarterly surrender instrument 45A Amending energy acquisition statement at request of liable entity 45B Amending energy acquisition statement on Regulator's own initiative 45C Surrender of additional certificates if energy acquisition statement amended on Regulator's own initiative 45D Limitations on certificates that can be surrendered under this Subdivision 45E Fees for surrender of certificates under this Subdivision Subdivision B—Annual renewable energy shortfall statements 46 Annual renewable energy shortfall statements Division 1A—Exemption certificates 46A Application for exemption certificate 46B Exemption certificates 46C Amending exemption certificates 46D Minister may obtain information from corporation 46E No exemption certificates to be issued to corporation for 5 years if Minister's request not complied with 46F Disclosure of information to the Regulator Division 2—Assessments Subdivision A—Large‑scale generation shortfall charge 47 First large‑scale generation shortfall statement taken to be assessment of large‑scale generation shortfall charge 48 Default assessments of large‑scale generation shortfall charge Subdivision B—Small‑scale technology shortfall charge 48A First small‑scale technology shortfall statement taken to be assessment of small‑scale shortfall charge 48B Default assessments of small‑scale technology shortfall charge Subdivision C—Other provisions relating to assessments 49 Amendment of assessments 50 Refund of overpaid amounts 51 Amended assessment to be an assessment 52 Notice of assessment 53 Validity of assessment 53A Application of Division Part 6—Objections, reviews and appeals Division 1—Objections to and review of assessments 54 Objections 55 How objections are to be made 56 Limited objection rights in the case of certain amended assessments 57 Requests for extension of time 58 Regulator to decide objections 59 Person may require Regulator to make an objection decision 60 Liable entity may seek review of, or appeal against, Regulator's decision 61 Grounds of objection and burden of proof 62 Time limit for appeals 63 Order of Federal Court on objection decision 64 Implementation of Federal Court order in respect of objection decision 65 Pending appeal not to affect implementation of decisions Division 2—Review of other decisions 66 Review of decisions Part 7—Collection and recovery of charge Division 1—General rules about collection and recovery 67 When renewable energy shortfall charge is payable 68 When penalty charge becomes due and payable 69 Extension of time for payment 70 Penalty for unpaid renewable energy shortfall charge or unpaid penalty charge 71 Recovery of renewable energy shortfall charge related liability 72 Service of documents if a person is absent from Australia or cannot be found Division 2—Special rules about collection and recovery Subdivision A—Recovery from a third party 73 Regulator may collect amounts from third party 74 Notice to Commonwealth, State or Territory 75 Indemnity 76 Offence Subdivision B—Recovery from liquidator 77 Liquidator's obligation 78 Offence 79 Joint liability of 2 or more liquidators 80 Liquidator's other obligation or liability Subdivision C—Recovery from receiver 81 Receiver's obligation 82 Offence 83 Joint liability of 2 or more receivers 84 Receiver's other obligation or liability Subdivision D—Recovery from agent winding up business for non‑resident principal 85 Obligation of agent winding up business for non‑resident principal 86 Offence 87 Joint liability of 2 or more agents 88 Agent's other obligation or liability Subdivision E—Recovery from deceased person's estate 89 Administered estate 90 Unadministered estate Division 3—Other matters 91 What this Division is about 92 Right of recovery if another person is liable 93 Right of contribution if persons are jointly liable 94 Regulator may authorise amount to be recovered Part 8—Refunding large‑scale generation shortfall charge 95 Refunding large‑scale generation shortfall charge in later years 96 Value of certificates surrendered 97 Certificates can only be surrendered if there is no shortfall 98 Refund of charge where certificates surrendered Part 9—Penalty charge 99 Penalty charge for failure to provide statements or information relevant to large‑scale generation shortfall charge 99A Penalty charge for failure to provide statements or information relevant to small‑scale technology shortfall charge 100 False or misleading statements 101 Penalty charge where arrangement to avoid renewable energy shortfall charge 102 Assessment of penalty charge 103 Remitting penalty charge Part 10—Administration 104 General administration of Act 105 Annual report Part 11—Audit Division 1—Overview 106 Overview of Part Division 2—Appointment of authorised officers and identity cards 107 Appointment of authorised officers 108 Identity cards 109 Offences related to identity cards Division 3—Powers of authorised officer Subdivision A—Monitoring powers 110 Entry to premises 111 Monitoring powers of authorised officers Subdivision B—Power of authorised officer to ask questions and seek production in certain circumstances 112 Authorised officer may request or require persons to answer questions etc. 113 Failure to provide information to authorised officer Division 4—Obligations and incidental powers of authorised officers 116 Authorised officer must produce identity card on request 117 Consent 118 Announcement before entry 119 Details of monitoring warrant to be given to occupier etc. before entry 120 Use of electronic equipment in exercising monitoring powers 121 Compensation for damage to electronic equipment Division 5—Occupier's rights and responsibilities 122 Occupier entitled to be present during execution of monitoring warrant 123 Occupier to provide authorised officer with all facilities and assistance 124 Offences related to warrants Division 6—Warrants 125 Monitoring warrants Part 11A—Information‑gathering powers 125A Regulator may obtain information and documents 125B Self‑incrimination 125C Copies of documents 125D Regulator may retain documents 125E False or misleading evidence Part 12—Publication of information 134 Regulator may publish certain information Part 13—Registers Division 1—General 135 Registers to be maintained Division 2—The register of registered persons 136 Contents of register of registered persons 137 Form of register Division 3—The register of accredited power stations 138 Contents of register of accredited power stations 139 Form of register Division 4—The register of large‑scale generation certificates 140 Contents of register of large‑scale generation certificates 141 Form of register Division 4A—The register of small‑scale technology certificates 141AA Contents of register of small‑scale technology certificates 141AB Form of register Division 5—The register of applications for accredited power stations 141A Contents of register of applications for accredited power stations 141B Form of register Part 15—Offences for failure to provide documents 154 Failure to provide documents Part 15A—Civil penalties Division 1—Civil penalty orders 154A Definitions 154B Civil penalty orders 154C Who may apply for a civil penalty order 154D Two or more proceedings may be heard together 154E Time limit for application for an order 154F Civil evidence and procedure rules for civil penalty orders 154G Civil proceedings after criminal proceedings 154H Criminal proceedings during civil proceedings 154J Criminal proceedings after civil proceedings 154K Evidence given in proceedings for a civil penalty order not admissible in criminal proceedings 154L Mistake of fact 154M State of mind Division 2—Liability of executive officers of bodies corporate 154N Civil penalties for executive officers of bodies corporate 154P Reasonable steps to prevent contravention Part 15B—Other remedies Division 1—Enforceable undertakings 154Q Acceptance of undertakings 154R Enforcement of undertakings Division 2—Injunctions 154S Injunctions Part 16—Miscellaneous 155 Contracting outsiders 156 Delegation 157 Appropriation 159 Evidence 160 Records to be kept and preserved by registered persons, liable entities and holders of exemption certificates 160A Prescribing matters by reference to other instruments 160B Administrative decisions under the regulations 161 Regulations Part 17—Application of Act to 2001 163 Object of Part 164 Modification of references to a year 165 Modification of other references Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act for the establishment and administration of a scheme to encourage additional electricity generation from renewable energy sources, and for related purposes Part 1—Preliminary 1 Short title This Act may be cited as the Renewable Energy (Electricity) Act 2000. 2 Commencement This Act commences 28 days after the day on which it receives the Royal Assent. 3 Object/outline The objects of this Act are: (a) to encourage the additional generation of electricity from renewable sources; and (b) to reduce emissions of greenhouse gases in the electricity sector; and (c) to ensure that renewable energy sources are ecologically sustainable; and (d) to contribute to the achievement of Australia's greenhouse gas emissions reduction targets. This is done through the issuing of certificates for the generation of electricity using eligible renewable energy sources and requiring certain purchasers (called liable entities) to surrender a specified number of certificates for the electricity that they acquire during a year. Where a liable entity does not have enough certificates to surrender, the liable entity will have to pay renewable energy shortfall charge. An exemption relating to one or more emissions‑intensive trade‑exposed activities may be taken into account in working out a liable entity's renewable energy certificate shortfall for a year. If it is, it will reduce the renewable energy shortfall charge otherwise payable. 4 Years to which this Act applies This Act applies to the year commencing on 1 January 2001 and to all subsequent years. However, no certificates can be created, and no liability arises, in respect of electricity generated on or after 1 January 2031. 5 Definitions (1) In this Act, unless the contrary intention appears: 1997 eligible renewable power baseline has the meaning given by section 14. 2008 WCMG limit has the meaning given by section 14. accredited power station means a power station accredited under Division 3 of Part 2. additional surrender notice has the meaning given by section 45C. AEMO has the same meaning as in the National Electricity Law set out in the Schedule to the National Electricity (South Australia) Act 1996 of South Australia. Agriculture Department means the Department responsible for administering the Primary Industries Levies and Charges Collection Act 2024. air source heat pump water heater means a device that uses a vapour compression cycle incorporating a compressor, an evaporator that collects energy from the latent and sensible heat of the atmosphere and a condenser that delivers heat either directly or indirectly to a hot water storage container. arrangement means: (a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and (b) any scheme, plan, proposal, action, course of action or course of conduct. assessment year's reduced acquisitions has the meaning given by section 38AA. Australia, when used in a geographical sense, includes all the external Territories. Australia's greenhouse gas emissions reduction targets means: (a) if: (i) Australia's current nationally determined contribution was communicated in accordance with Article 4 of the Paris Agreement in June 2022; and (ii) that nationally determined contribution has not been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement; the greenhouse gas emissions reduction targets set out in paragraphs 10(1)(a) and (b) of the Climate Change Act 2022; or (b) in any other case—the greenhouse gas emissions reduction targets included in: (i) Australia's current nationally determined contribution communicated in accordance with Article 4 of the Paris Agreement; or (ii) if that nationally determined contribution has been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement—that nationally determined contribution, as adjusted and in force from time to time. authorised Commonwealth contractor means a person who: (a) provides, or proposes to provide, services to the Commonwealth under a contract; and (b) is authorised, in writing, by the Regulator for the purposes of this definition. carried forward shortfall has the meaning given by subsection 36(2). carried forward surplus has the meaning given by section 38. certificate means a renewable energy certificate. civil penalty order has the meaning given by subsection 154B(2). civil penalty provision means a provision declared by this Act to be a civil penalty provision. clearing house has the meaning given by section 30J. clearing house price has the meaning given by section 30LA. clearing house transfer list has the meaning given by subsection 30L(2). constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies. CSC (short for Commonwealth Superannuation Corporation) has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011. ecologically sustainable means that an action is consistent with the following principles of ecologically sustainable development: (a) decision‑making processes should effectively integrate both long‑term and short‑term economic, environmental, social and equitable considerations; (b) if there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation; (c) the principle of inter‑generational equity, which is that the present generation should ensure that the health, diversity and productivity of the environment is maintained or enhanced for the benefit of future generations; (d) the conservation of biological diversity and ecological integrity should be a fundamental consideration in decision‑making; (e) improved valuation, pricing and incentive mechanisms should be promoted. electricity generation return has the meaning given by section 20. electronic signature of a person means the person's unique identification in an electronic form that is approved by the Regulator under subsection (3). eligible energy sources means: (a) eligible renewable energy sources; or (b) eligible WCMG. eligible renewable energy source has the meaning given by section 17. eligible WCMG has the meaning given by section 17A. emissions‑intensive trade‑exposed activity means an activity prescribed by regulations made for the purposes of this definition. energy acquisition statement has the meaning given by section 44. engage in conduct means: (a) do an act; or (b) omit to do an act. executive officer of a body corporate means: (a) a director of the body corporate; or (b) the chief executive officer (however described) of the body corporate; or (c) the chief financial officer (however described) of the body corporate; or (d) the secretary of the body corporate. exemption, in relation to a liable entity, means an exemption for a year, calculated under section 38B, that is used in working out the entity's large‑scale generation shortfall or small‑scale technology shortfall for the year. exemption certificate means a certificate issued under section 46B. Federal Court means the Federal Court of Australia. Finance Minister means the Minister administering the Public Governance, Performance and Accountability Act 2013. first quarter has the meaning given by section 38AA. fourth quarter has the meaning given by section 38AA. general interest charge rate, for a day, is the rate that is the general interest charge rate for that day for the purposes of the Taxation Administration Act 1953. government body means the Commonwealth, a State, a Territory or an authority of the Commonwealth or of a State or Territory. GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 (including as provided by section 177‑1 of that Act). Note: Section 177‑1 of the A New Tax System (Goods and Services Tax) Act 1999 provides for the Commonwealth's notional liability to pay GST. GST inclusive clearing house price has the meaning given by section 30LA. GWh means gigawatt hour. interest charge means the charge payable under section 70. kW means kilowatt. large‑scale generation certificate means a certificate created under Subdivision A of Division 4 of Part 2. Note: These certificates relate to generation of electricity by accredited power stations. large‑scale generation shortfall has the meaning given by section 38. large‑scale generation shortfall charge has the meaning given by section 36. large‑scale generation shortfall statement has the meaning given by section 46. liable entity has the meaning given by section 35. monitoring warrant means a warrant issued under section 125. MW means megawatt. MWh means megawatt hour. National Electricity Rules means the National Electricity Rules, as in force from time to time, made under the National Electricity Law set out in the Schedule to the National Electricity (South Australia) Act 1996 of South Australia. nominated person, for an accredited power station, means: (a) if no approvals have been given under section 30B in relation to the power station—the person who made the application for accreditation; or (b) if one or more approvals have been given under that section in relation to the power station—the last person so approved. objection decision has the meaning given by section 58. occupier, in relation to premises, includes a person present at the premises who is in apparent control of the premises. offence against this Act includes: (a) an offence against the regulations; and (b) an offence against section 134.1, 134.2, 135.1, 135.2, 135.4, 136.1, 137.1 or 137.2 of the Criminal Code that relates to this Act or the regulations. official of the Regulator has the same meaning as in the Clean Energy Regulator Act 2011. outstanding renewable energy shortfall charge related liability of a person at a particular time means a renewable energy shortfall charge related liability of the person: (a) that has arisen at or before that time (whether or not it is due and payable at that time); and (b) an amount of which has not been paid before that time. Paris Agreement means the Paris Agreement, done at Paris on 12 December 2015, as amended and in force for Australia from time to time. Note: The Agreement is in Australian Treaty Series 2016 No. 24 ([2016] ATS 24) and could in 2022 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au). penalty charge means the charge payable under Part 9. premises includes the following: (a) a structure, building or vehicle; (b) a place (whether enclosed or built on or not); (c) a part of a thing referred to in paragraph (a) or (b). previous year's reduced acquisitions has the meaning given by section 38AA. Note: See also sections 38AF, 38AG and 38AH. produce includes permit access to. quarter has the meaning given by section 38AA. quarterly shortfall has the meaning given by section 38AE. quarterly surplus has the meaning given by section 38AE. registered person means a person registered under Division 2 of Part 2. register of accredited power stations has the meaning given by section 138. register of applications for accredited power stations has the meaning given by section 141A. register of large‑scale generation certificates has the meaning given by section 140. register of registered persons has the meaning given by section 136. register of small‑scale technology certificates has the meaning given by section 141AA. registration number has the meaning given by section 12. Regulator means the Clean Energy Regulator. relevant acquisition has the meaning given by section 31. renewable energy certificate means a large‑scale generation certificate or a small‑scale technology certificate. renewable energy shortfall charge means large‑scale generation shortfall charge or small‑scale technology shortfall charge. renewable energy shortfall charge related liability means a pecuniary liability to the Commonwealth (including a liability the amount of which is not yet due and payable) being: (a) renewable energy shortfall charge; or (b) interest charge; or (c) penalty charge. renewable energy shortfall statement means a large‑scale generation shortfall statement or a small‑scale technology shortfall statement. renewable power percentage means the percentage prescribed under section 39. required GWh of renewable source electricity has the meaning given by section 40. required large‑scale renewable energy has the meaning given by section 38. required surrender amount has the meaning given by section 38AE. second quarter has the meaning given by section 38AA. senior employee, in relation to an authorised Commonwealth contractor, means an employee of the contractor, where the skills and responsibilities that are expected of the employee are equivalent to, or exceed, the skills and responsibilities expected of at least one of the senior officers of the Regulator. senior officer of the Regulator means a person who: (a) is a member of the staff of the Regulator; and (b) either: (i) is an SES employee or acting SES employee; or (ii) holds or performs the duties of an Executive Level 2 position or an equivalent position. small generation unit means a device that generates electricity that is specified by the regulations to be a small generation unit. small‑scale technology certificate means a certificate created under Subdivision B or BA of Division 4 of Part 2 or under section 30P. Note 1: Certificates created under Subdivision B or BA of Division 4 of Part 2 relate to the installation of solar water heaters and small generation units. Note 2: Certificates created under section 30P are created by the Regulator for purchase through the clearing house. small‑scale technology percentage has the meaning given by section 40A. small‑scale technology shortfall has the meaning given by section 38AD. small‑scale technology shortfall charge has the meaning given by section 38AB. small‑scale technology shortfall statement has the meaning given by section 46. solar water heater means a device that heats water using solar energy that satisfies any conditions set out in the regulations. staff of the Regulator has the same meaning as in the Clean Energy Regulator Act 2011. stakeholder, in relation to an accredited power station, means: (a) a person who operates the power station (whether alone or together with one or more other persons); or (b) a person who owns all, or a part, of the power station (whether alone or together with one or more other persons). surrendered amount has the meaning given by section 38AE. surrender instrument has the meaning given by subsection 45(1). surrender period has the meaning given by section 38AA. taxable supply has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 (including as provided by section 177‑1 of that Act). Note: Section 177‑1 of the A New Tax System (Goods and Services Tax) Act 1999 provides for the Commonwealth's notional liability to pay GST. third quarter has the meaning given by section 38AA. warrant premises, in relation to a monitoring warrant, means the premises to which the warrant relates. (2) For the purposes of this Act, electricity is taken to be a good that can be acquired. (3) The Regulator may, in writing, approve an electronic form for the purposes of the definition of electronic signature in subsection (1). 6 Act binds Crown (1) This Act binds the Crown in each of its capacities. (2) This Act does not make the Crown liable to a pecuniary penalty or to be prosecuted for an offence. 7 Application to the external Territories This Act extends to every external Territory. 7A Tax deductibility To avoid doubt, a charge or penalty under this Act is not tax deductible for the purposes of any law dealing with income tax. 7B Constitutional basis To the extent that this Act applies in relation to a constitutional corporation, the operation of this Act is based on the following legislative powers: (a) the legislative power that the Commonwealth Parliament has under paragraph 51(xx) of the Constitution; (b) any other legislative power that the Commonwealth Parliament has under the Constitution. 7C Immunity from State laws A constitutional corporation need not comply with any law of a State that substantially corresponds to this Act. Part 2—Renewable energy certificates Division 1—Preliminary 8 Overview of Part This Part provides for the creation, trading and extinguishing of renewable energy certificates. There are 2 types of renewable energy certificates: (a) large‑scale generation certificates, which are created in relation to the generation of electricity by accredited power stations; and (b) small‑scale technology certificates, which are created in relation to the installation of solar water heaters and small generation units. The certificates are used to avoid or reduce the amount of renewable energy shortfall charge that liable entities who acquire electricity have to pay. The liable entities will generally acquire the certificates by purchasing them. The certificates are created by people who generate power from accredited power stations using eligible energy sources where the amount generated exceeds the relevant 1997 eligible renewable power base line. The certificates are also created for approved installations of solar water heaters or small generation units. A person needs to be registered under Division 2 before they can create a certificate. Division 2A provides for provisional accreditation of power stations. A power station needs to be accredited under Division 3 before a certificate can be issued in relation to power generated by it. A certificate must be registered when it is created. Every transfer of the certificate must also be registered. When a certificate has been surrendered by a liable party, it ceases to be valid. See also Part 2A (clearing house for small‑scale technology certificates), which: (a) provides a clearing house facility for the transfer of small‑scale technology certificates; and (b) gives the Regulator a limited power to create or cancel small‑scale technology certificates. Division 2—Registration of persons 9 Who can register (1) Any person may be registered under this Act. (2) However, if a person's registration has been suspended under section 30 or 30A, the person cannot be registered during the period of the suspension. 10 Applying for registration (1) A person may apply to the Regulator to be registered. (2) The application must: (a) be made in a form and manner required by the Regulator; and (b) contain any information required by the Regulator; and (c) be accompanied by any documents required by the Regulator; and (d) be accompanied by the fee (if any) prescribed by the regulations for the making of applications for registration. 11 Regulator to refuse or approve application (1) If the Regulator receives an application that is properly made under section 10, the Regulator must: (a) approve the application; or (b) refuse the application. (2) The Regulator may refuse the application if the Regulator is satisfied that the applicant is not a fit and proper person. (2A) For the purposes of subsection (2), in determining whether the applicant is a fit and proper person, the Regulator: (a) must have regard to the matters specified in regulations made for the purposes of this subsection; and (b) may have regard to such other matters (if any) as the Regulator considers relevant. (3) The Regulator must refuse the application if the Regulator is satisfied that the applicant has previously been a registered person. 12 Regulator to allocate registration numbers If the Regulator approves an application, the Regulator must allocate the applicant a unique registration number and advise the applicant of the number. Division 2A—Provisional accreditation of power stations 12A Application for provisional accreditation of a power station (1) A registered person may apply to the Regulator for provisional accreditation of the proposed components of an electricity generation system that the person considers would, if assembled, be a single power station. Form of application (2) The application must: (a) be made in a form and manner required by the Regulator; and (b) specify the proposed components; and (c) list the eligible energy sources from which power is intended to be generated; and (d) contain any other information required by the Regulator; and (e) be accompanied by any documents required by the Regulator; and (f) be accompanied by the fee (if any) prescribed by the regulations for the making of applications for provisional accreditation. 12B Regulator may give provisional accreditation (1) If: (a) the Regulator receives an application that is properly made under section 12A (about an application for provisional accreditation of a power station); and (b) the Regulator is satisfied that some or all of the proposed components of the system would, if assembled, be a power station for the purposes of this Act; the Regulator must, by written notice given to the applicant: (c) specify which of those proposed components (the provisional components) would, if assembled, be a power station for the purposes of this Act; and (d) specify that, if an application is properly made under section 13 in relation to the power station: (i) the Regulator will determine that the components specified in that application are taken to be a power station for the purposes of this Act if the Regulator is satisfied that they are not materially different from the provisional components; and (ii) the power station will be eligible for accreditation if subsection 14(2) is satisfied. Refusal (2) If: (a) the Regulator receives an application that is properly made under section 12A; and (b) the Regulator is not satisfied that some or all of the proposed components of the system would, if assembled, be a power station for the purposes of this Act; the Regulator must, by written notice given to the applicant, refuse the application. Regulations (3) Regulations made for the purposes of section 14, in relation to determining the components of a power station, apply in a corresponding way to this section. 12C Time limit for deciding applications (1) The Regulator must decide an application that is properly made under section 12A within: (a) the period of 6 weeks beginning on the day the Regulator received the application; or (b) if, before the end of that period, the Regulator and applicant agree to a longer period—that longer period. (2) If the Regulator has not decided the application within the period applicable under subsection (1), the Regulator is taken, at the end of that period, to have made a decision under section 12B refusing the application. Division 3—Accreditation of eligible power stations 13 Application for accreditation (1) A registered person may apply to the Regulator for accreditation, as an accredited power station, of the components of an electricity generation system that the person considers are a single power station if the person: (a) operates those components (whether alone or together with one or more other persons); or (b) owns all, or a part, of those components (whether alone or together with one or more other persons). (2) The application must: (a) be made in a form and manner required by the Regulator; and (b) specify those components of the system that the applicant considers are a single power station; and (baa) specify each other person (if any) who: (i) operates those components (whether alone or together with one or more other persons); or (ii) owns all, or a part, of those components (whether alone or together with one or more other persons); and (ba) list: (i) the eligible energy sources from which power is intended to be generated; and (ii) the estimated average annual output of each source listed under subparagraph (i); and (c) contain any other information required by the Regulator; and (d) be accompanied by any documents required by the Regulator; and (e) be accompanied by the fee (if any) prescribed by the regulations for the making of applications for accreditation; and (f) be accompanied by a statement in writing from each other person (if any) specified under paragraph (baa) indicating that the other person agrees to the making of the application. (2A) An application that lists eligible WCMG as an eligible energy source from which power is intended to be generated cannot be made after the day prescribed by the regulations for the purpose of this subsection. (3) The Regulator must enter details of the application on the register of applications for accredited power stations. 14 Regulator to determine certain matters (1) If the Regulator receives an application that is properly made under section 13, the Regulator must: (a) determine which components of the system are to be taken to be a power station for the purposes of this Act; and (b) determine whether the power station is eligible for accreditation. Note: A determination under paragraph (a) may be varied: see Division 10. (1A) If: (a) the Regulator gave a person a notice under subsection 12B(1) in relation to the power station; and (b) the Regulator is satisfied that the components specified in the application under section 13 are not materially different from the components specified under subsection 12B(1); the Regulator must determine, under paragraph (1)(a) of this section, that the components specified in the application under section 13 are taken to be a power station for the purposes of this Act. (2) A power station is eligible for accreditation if: (a) some or all of the power generated by the power station is generated from an eligible energy source; and (b) the power station satisfies any prescribed requirements. (2A) However, a power station is not eligible for accreditation if the Regulator is satisfied that a previous determination under paragraph (1)(a) should be varied to include the components of the system specified in the application for accreditation. (3) If the Regulator determines that the power station is eligible for accreditation, the Regulator must also determine: (a) the 1997 eligible renewable power baseline for the power station; and (b) any energy sources used by the power station that are not eligible energy sources; and (c) if some or all of the power generated by the power station is generated from eligible WCMG—the 2008 WCMG limit for the power station. Note: The 1997 eligible renewable power baseline or the 2008 WCMG limit for a power station may be varied: see Division 12. (4) The Regulator must determine the matters specified in paragraphs (1)(a), (3)(a) and (3)(c) in accordance with guidelines prescribed in the regulations. (5) To avoid doubt: (a) the regulations may provide that a power station includes components that are integral to the operation of the power station or to the generation of electricity by the power station; and (b) the 1997 eligible renewable power baseline for a power station may be nil. 15 Regulator to approve or refuse application If the Regulator determines that a power station is eligible for accreditation, the Regulator must approve the application. In any other case, the Regulator must refuse the application. Note: The accreditation of an accredited power station may be suspended: see Division 11. 15A Time limit for deciding applications General rule (1) Subject to subsection (3), the Regulator must decide an application that is properly made under section 13 within: (a) the period of 6 weeks beginning on the day the Regulator received the application; or (b) if, before the end of that period, the Regulator and applicant agree to a longer period—that longer period. (2) If the Regulator has not decided the application within the period applicable under subsection (1), the Regulator is taken, at the end of that period, to have made a decision under section 15 refusing the application. Applications that list eligible WCMG as an eligible energy source (3) If an application that is properly made under section 13 lists eligible WCMG as an eligible energy source from which power is intended to be generated, the Regulator must decide the application before the end of the period of 6 months starting on the day referred to in subsection 13(2A). (4) If the Regulator does not decide the application on or before that day, the Regulator is taken, on the following day, to have made a decision under section 15 refusing the application. 15B Nominated person for power station If the Regulator approves an application, the applicant becomes the nominated person for the accredited power station. Note: The nominated person for the power station is able to create certificates for electricity generated by the power station: see section 18. The nominated person may change: see Division 9. 16 Regulator to allocate identification codes If the Regulator approves an application, the Regulator must allocate the power station a unique identification code and advise the applicant of the code. 17 What is an eligible renewable energy source? (1) The following energy sources are eligible renewable energy sources: (a) hydro; (b) wave; (c) tide; (d) ocean; (e) wind; (f) solar; (g) geothermal‑aquifer; (h) hot dry rock; (i) energy crops; (j) wood waste; (k) agricultural waste; (l) waste from processing of agricultural products; (m) food waste; (n) food processing waste; (o) bagasse; (p) black liquor; (q) biomass‑based components of municipal solid waste; (r) landfill gas; (s) sewage gas and biomass‑based components of sewage; (t) any other energy source prescribed by the regulations. (2) Despite subsection (1), the following energy sources are not eligible renewable energy sources: (a) fossil fuels; (b) materials or waste products derived from fossil fuels. Regulations (3) For the purposes of this Act, the regulations may provide that an energy source referred to in subsection (1) or (2) has the meaning prescribed by the regulations. (4) For the purposes of this Act, the regulations may make provision for and in relation to limiting the meaning of an energy source referred to in subsection (1). (5) For the purposes of this Act, the regulations may make provision for and in relation to extending the meaning of an energy source referred to in subsection (2). 17A What is eligible WCMG? (1) Waste coal mine gas is eligible WCMG if: (a) the waste coal mine gas is used in the generation of electricity by a power station in the period: (i) starting on the day prescribed by the regulations for the purpose of this subparagraph; and (ii) ending on 31 December 2020; and (b) either: (i) the power station was generating electricity from waste coal mine gas at any time in May 2009; or (ii) if subparagraph (i) does not apply—the power station had generated electricity from waste coal mine gas before May 2009, and, as at the end of May 2009, the owner or operator of the power station has a plan for the power station to resume generating electricity from waste coal mine gas before the end of September 2009. (2) For the purposes of this Act, the regulations may provide that waste coal mine gas has the meaning prescribed by the regulations. (3) For the purposes of this Act, the regulations may prescribe limitations (in addition to those in subsection (1)) that apply in order for waste coal mine gas to be eligible WCMG. (4) If the regulations do not prescribe a day for the purpose of subparagraph (1)(a)(i), no waste coal mine gas is eligible WCMG. Division 4—Creation of renewable energy certificates Subdivision AA—Preliminary 17B Overview of Division This Division deals with the creation of certificates, known as renewable energy certificates. There are 2 types of renewable energy certificates: (a) large‑scale generation certificates, which are created in relation to the generation of electricity by accredited power stations (see Subdivision A); and (b) small‑scale technology certificates, which are created in relation to the installation of solar water heaters and small generation units (see Subdivisions B and BA). Small‑scale technology certificates can also be created by the Regulator under Part 2A (clearing house for small‑scale technology certificates). Subdivision BB requires people who create certificates under Subdivision B or BA to submit returns relating to the creation of the certificates. Subdivision C contains offence and civil penalty provisions relating to the improper creation of certificates. Subdivision A—Large‑scale generation certificates for accredited power stations 17C Large‑scale generation certificates Certificates created under this Subdivision are large‑scale generation certificates. 18 Creating certificates for additional renewable electricity (1) The nominated person for an accredited power station may create a certificate for each whole MWh of electricity generated by the power station during a year that is in excess of the power station's 1997 eligible renewable power baseline. (1A) A certificate must not be created in respect of a whole MWh of electricity generated partly in 1 year and partly in the following year. (2) If the amount of electricity generated by an accredited power station during a year that is in excess of the power station's 1997 eligible renewable power baseline is less than 1 MWh but greater than or equal to 0.5 MWh, the nominated person for the power station may create 1 certificate in respect of the electricity generated during the year. (3) The amount of electricity generated by an accredited power station is to be worked out in accordance with the regulations. (4) Electricity is to be excluded from all calculations under this section: (a) to the extent that the electricity was generated using any energy sources that are not eligible energy sources; or (b) to the extent that the electricity was generated during any period of suspension of the accreditation of the accredited power station under section 30D or 30E; or (c) to the extent that the electricity was generated from eligible WCMG and is in excess of the accredited power station's 2008 WCMG limit. (5) The nominated person for an accredited power station must not create any certificates during any period of suspension of the person's registration under section 30 or 30A. 19 When certificates may be created A certificate may be created at any time after the generation of the final part of the electricity in relation to which it is created and before: (a) the end of the year after the year of generation; or (b) any later day allowed by the Regulator. Note: For offences and civil penalties related to the creation of certificates, see Subdivision C. 20 Electricity generation return (1) The nominated person for an accredited power station must give an electricity generation return for a year to the Regulator on or before: (a) 14 February in the following year; or (b) any later day allowed by the Regulator. (2) The return must include details of: (a) the amount of electricity generated by the power station during the year; and (b) the amount of that electricity that was generated using eligible energy sources; and (c) the number of certificates created during the year in respect of the electricity generated by the power station during the year; and (ca) the number of certificates created during the year in respect of any electricity generated by the power station during the previous year; and (d) any other information specified by the regulations. 20A Amending electricity generation returns (1) The Regulator may amend an electricity generation return if the nominated person for the accredited power station concerned requests, in writing, an amendment within 12 months of the return being given. (2) The Regulator may also amend an electricity generation return on his or her own initiative if the amendment is made within 4 years of the return being given. (3) If the Regulator refuses to amend an electricity generation return upon a request by a nominated person for an accredited power station, the Regulator must notify the person accordingly. Subdivision B—Small‑scale technology certificates for solar water heaters 20B Small‑scale technology certificates Certificates created under this Subdivision are small‑scale technology certificates. 21 When a certificate may be created (1) If a solar water heater is installed on or after 1 April 2001, certificates may be created after the heater is installed. Note: For offences and civil penalties related to the creation of certificates, see Subdivision C. (1A) The regulations: (a) may provide that certificates cannot be created in relation to a solar water heater unless particular conditions are satisfied in relation to the solar water heater or its installation; and (b) without limiting paragraph (a), may: (i) require information or documents to be given to the Regulator in relation to a solar water heater or its installation; and (ii) provide that information or documents required to be given to the Regulator must be verified by statutory declaration. (2) The certificates may only be created within 12 months after the installation of the solar water heater. (3) The regulations may make provision in relation to the time at which a solar water heater is taken to have been installed. (4) If a solar water heater is an air source heat pump water heater, certificates may only be created for the installation of such an air source heat pump water heater if it has a volumetric capacity of not more than 425 litres. 22 How many certificates may be created (1) The number of certificates (each representing 1 MWh) that may be created for a particular installation of a solar water heater is to be determined in accordance with the regulations. (2) Without limiting subsection (1), regulations made for the purpose of that subsection may: (a) provide for the Regulator to determine the number of certificates that may be created for a particular installation of a solar water heater; and (b) prescribe requirements to be complied with in relation to the making of such a determination, which may include a requirement that a determination is to be made in accordance with a legislative instrument made by the Regulator; and (c) prescribe other matters relating to such a determination or legislative instrument. 23 Who may create a certificate (1) The owner of the solar water heater at the time that it is installed is entitled to create the certificate or certificates that relate to the solar water heater. (2) However, the owner may, by written notice, assign the right to create the certificate or certificates to another person. If the owner does this, the owner is not entitled to create the certificate or certificates but the person to whom the right was assigned is entitled to create the certificate or certificates. (3) Despite subsections (1) and (2), a person who is not registered may not create a certificate that relates to the solar water heater. 23AA Register of solar water heaters The regulations may make provision for and in relation to the Regulator keeping a Register of solar water heaters. Subdivision BA—Small‑scale technology certificates for small generation units 23AB Small‑scale technology certificates Certificates created under this Subdivision are small‑scale technology certificates. 23A When a certificate may be created (1) If a small generation unit is installed on or after 1 April 2001, certificates may be created after the small generation unit is installed. Note: For offences and civil penalties related to the creation of certificates, see Subdivision C. (1A) The regulations: (a) may provide that certificates cannot be created in relation to a small generation unit unless particular conditions are satisfied in relation to the small generation unit or its installation; and (b) without limiting paragraph (a), may: (i) require information or documents to be given to the Regulator in relation to a small generation unit or its installation; and (ii) provide that information or documents required to be given to the Regulator must be verified by statutory declaration. (1B) To avoid doubt, regulations under subsection (1A) may impose conditions to be complied with in relation to a small generation unit after its installation. Note: For example, conditions may be imposed so that certificates cannot be created in relation to a small generation unit unless the unit remains functional. (2) The regulations may make provision in relation to the time at which a small generation unit is taken to have been installed. (3) The regulations may make provision in relation to: (a) the time when a right to create certificates in relation to a small generation unit arises; and (b) the period within which certificates may be created in relation to a small generation unit. 23AAA Regulations to establish scheme for inspection of new installations of small generation units (1) The regulations must establish a scheme for the inspection of the installation of small generation units for which certificates have been created. (2) Without limiting subsection (1), regulations made under that subsection must provide, for small generation units installed after the commencement of this section: (a) that each year a statistically significant selection of small generation units that were installed during that year must be inspected for conformance with Australian standards and any other standards or requirements relevant to the creation of certificates in relation to that small generation unit; (b) that an inspection of a small generation unit is to be carried out by a person or organisation who: (i) is independent of the person or organisation who designed and/or installed that small generation unit; and (ii) does not have a conflict of interest in relation to that small generation unit or administration of the matters being inspected; (c) for the transfer of information, about any failures to comply with standards or other requirements relevant to the creation of certificates in relation to small generation units, to State, Territory or Commonwealth bodies with responsibility for the enforcement and administration of those standards or requirements. (3) A report of an inspection carried out in accordance with regulations made under subsection (1) may set out: (a) conclusions; or (b) recommendations; or (c) other material; that is or are relevant to the performance of the functions, or the exercise of the powers, conferred on the Regulator by section 26. (4) Subsection (3) does not limit the matters that may be set out in a report. Note: Inspections carried out in accordance with regulations made under subsection (1): (a) may be relevant in determining whether a certificate is eligible for registration under section 26 (see subsection 26(3AA)); and (b) provide an indication of the effectiveness of the process for the registration of certificates. 23B How many certificates may be created Number of certificates (1) The number of certificates (subject to subsection (2), each representing 1 MWh) that may be created in relation to a small generation unit is to be determined in accordance with the regulations. Regulations may multiply number of certificates (2) The regulations may provide that, in the circumstances specified by the regulations, the number of certificates that may be created in relation to a small generation unit that is installed during a period specified in column 1 of an item in the following table is to be multiplied by a number that does not exceed the number specified in column 2 of the item. Note: The regulations may make provision in relation to the time at which a small generation unit is taken to have been installed (see subsection 23A(2)). Multiplier for certificates for small generation units Item Column 1 Column 2 Period Number 1 9 June 2009 to 30 June 2010 5 2 1 July 2010 to 30 June 2011 5 3 1 July 2011 to 30 June 2012 5 4 1 July 2012 to 30 June 2013 4 5 1 July 2013 to 30 June 2014 3 6 1 July 2014 to 30 June 2015 2 (3) However, subject to subsections (3A) and (3C), the regulations may provide for a number of certificates to be multiplied only if the certificates relate to not more than the first 3kW of the rated power output of the small generation unit. (3A) However, in the case of an off‑grid small generation unit, the regulations must provide for a number of certificates to be multiplied only if the certificates relate to the first 20kW of the rated power output of the unit. (3B) In subsection (3A): off‑grid small generation unit means: (a) a small generation unit at least 1 kilometre from the nearest main‑grid line; or (b) in the case of a small generation unit less than 1 kilometre from a main‑grid line—the owner has provided written evidence from the local network service provider that the total cost of connecting the unit to the main‑grid is more than $30,000, making it uneconomic to connect the unit to the main‑grid. (3C) The regulations must provide that the number of certificates that may be created under subsection (3A) as a result of a multiplier in subsection (2) for a period specified in column 1 of an item in the following table must not exceed the number specified in column 2 of the item. Maximum number of certificates created under subsection (3A) Item Column 1 Column 2 Period Number 1 1 July 2010 to 30 June 2011 250,000 2 1 July 2011 to 30 June 2012 250,000 3