Commonwealth: Renewable Energy (Electricity) Amendment Act 2010 (Cth)

Renewable Energy (Electricity) Amendment Act 2010 Act No. 69 of 2010 as amended This compilation was prepared on 26 November 2012 taking into account amendments up to Act No. 136 of 2012 The text of any of those amendments not in force on that date is appended in the Notes section The operation of amendments that have been incorporated may be affected by application provisions that are set out in the Notes section Prepared by the Office of Parliamentary Counsel, Canberra Contents 1 Short title [see Note 1]........................... 2 Commencement 3 Schedule(s) Schedule 1—Amendments Part 1—Main amendments Renewable Energy (Electricity) Act 2000 Part 2—Other amendments Renewable Energy (Electricity) Act 2000 Renewable Energy (Electricity) Regulations 2001 Schedule 2—Application, saving and transitional provisions Part 1—Provisions relating to main amendments Part 2—Provisions relating to other amendments Part 3—Regulations Part 4—Other matters Notes An Act to amend the Renewable Energy (Electricity) Act 2000, and for related purposes 1 Short title [see Note 1] This Act may be cited as the Renewable Energy (Electricity) Amendment Act 2010. 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 2010 2. Schedule 1, Part 1 1 January 2011. 1 January 2011 3. Schedule 1, Part 2 The day after this Act receives the Royal Assent. 29 June 2010 4. Schedule 2 The day after this Act receives the Royal Assent. 29 June 2010 Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent. (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act. 3 Schedule(s) (1) Each Act, and each set of regulations, that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. (2) The amendment of any regulation under subsection (1) does not prevent the regulation, as so amended, from being amended or repealed by the Governor-General. Schedule 1—Amendments Part 1—Main amendments Renewable Energy (Electricity) Act 2000 1 Subsection 5(1) Insert: additional surrender notice has the meaning given by section 45C. 2 Subsection 5(1) Insert: assessment year's reduced acquisitions has the meaning given by section 38AA. 3 Subsection 5(1) (definition of certificate) Omit "created under Division 4 of Part 2". 4 Subsection 5(1) Insert: clearing house has the meaning given by section 30J. 4A Subsection 5(1) Insert: clearing house price has the meaning given by section 30LA. 5 Subsection 5(1) Insert: clearing house transfer list has the meaning given by subsection 30L(2). 6 Subsection 5(1) Insert: first quarter has the meaning given by section 38AA. 7 Subsection 5(1) Insert: fourth quarter has the meaning given by section 38AA. 8 Subsection 5(1) Insert: 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. 8A Subsection 5(1) Insert: GST inclusive clearing house price has the meaning given by section 30LA. 9 Subsection 5(1) Insert: 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. 10 Subsection 5(1) Insert: large‑scale generation shortfall has the meaning given by section 38. 11 Subsection 5(1) Insert: large‑scale generation shortfall charge has the meaning given by section 36. 12 Subsection 5(1) Insert: large‑scale generation shortfall statement has the meaning given by section 46. 13 Subsection 5(1) (definition of partial exemption) Omit "renewable energy certificate shortfall for the year under section 38", substitute "large‑scale generation shortfall or small‑scale technology shortfall for the year". 14 Subsection 5(1) Insert: previous year's reduced acquisitions has the meaning given by section 38AA. Note: See also sections 38AF, 38AG and 38AH. 15 Subsection 5(1) Insert: quarter has the meaning given by section 38AA. 16 Subsection 5(1) Insert: quarterly shortfall has the meaning given by section 38AE. 17 Subsection 5(1) Insert: quarterly surplus has the meaning given by section 38AE. 18 Subsection 5(1) Insert: register of large‑scale generation certificates has the meaning given by section 140. 19 Subsection 5(1) (definition of register of renewable energy certificates) Repeal the definition. 20 Subsection 5(1) Insert: register of small‑scale technology certificates has the meaning given by section 141AA. 21 Subsection 5(1) (definition of renewable energy certificate) Repeal the definition, substitute: renewable energy certificate means a large‑scale generation certificate or a small‑scale technology certificate. 22 Subsection 5(1) (definition of renewable energy certificate shortfall) Repeal the definition. 23 Subsection 5(1) (definition of renewable energy shortfall charge) Repeal the definition, substitute: renewable energy shortfall charge means large‑scale generation shortfall charge or small‑scale technology shortfall charge. 24 Subsection 5(1) (definition of renewable energy shortfall statement) Repeal the definition, substitute: renewable energy shortfall statement means a large‑scale generation shortfall statement or a small‑scale technology shortfall statement. 25 Subsection 5(1) Insert: required large‑scale renewable energy has the meaning given by section 38. 26 Subsection 5(1) (definition of required renewable energy) Repeal the definition. 27 Subsection 5(1) Insert: required surrender amount has the meaning given by section 38AE. 28 Subsection 5(1) Insert: second quarter has the meaning given by section 38AA. 29 Subsection 5(1) Insert: 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. 30 Subsection 5(1) Insert: small‑scale technology percentage has the meaning given by section 40A. 31 Subsection 5(1) Insert: small‑scale technology shortfall has the meaning given by section 38AD. 32 Subsection 5(1) Insert: small‑scale technology shortfall charge has the meaning given by section 38AB. 33 Subsection 5(1) Insert: small‑scale technology shortfall statement has the meaning given by section 46. 34 Subsection 5(1) Insert: surrendered amount has the meaning given by section 38AE. 35 Subsection 5(1) Insert: surrender instrument has the meaning given by subsection 45(1). 36 Subsection 5(1) Insert: surrender period has the meaning given by section 38AA. 37 Subsection 5(1) Insert: 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. 38 Subsection 5(1) Insert: third quarter has the meaning given by section 38AA. 39 Section 8 After: This Part provides for the creation, trading and extinguishing of renewable energy certificates. Insert: 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. 40 At the end of section 8 Add: 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. 41 Division 4 of Part 2 (heading) Repeal the heading, substitute: 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 B 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. 42 Subdivision A of Division 4 of Part 2 (heading) Repeal the heading, substitute: 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. 43 Subdivision B of Division 4 of Part 2 (heading) Repeal the heading, substitute: 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. 44 Subdivision BA of Division 4 of Part 2 (heading) Repeal the heading, substitute: 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. 45 Subsection 25(1) Omit "Certificates under Subdivision A of Division 4", substitute "Large‑scale generation certificates". Note: The heading to section 25 is replaced by the heading "Form and content of large‑scale generation certificates". 46 Subsection 25A(1) Omit "Certificates under Subdivision B or BA of Division 4", substitute "Small‑scale technology certificates. Note: The heading to section 25A is replaced by the heading "Form and content of small‑scale technology certificates". 47 Paragraph 25A(2)(f) Repeal the paragraph, substitute: (f) a statement that the certificate was created in relation to a solar water heater, or that it was created in relation to a small generation unit (as appropriate); and 48 At the end of section 25A Add: (3) This section does not apply in relation to a small‑scale technology certificate created by the Regulator under section 30P. 49 Subsection 26(4) Omit "register of renewable energy certificates", substitute "register of large‑scale generation certificates or the register of small‑scale technology certificates (as appropriate)". 50 At the end of section 26 Add: (7) This section does not apply in relation to a small‑scale technology certificate created by the Regulator under section 30P. 51 Section 27 After "26", insert "or subsection 30P(3)". 52 At the end of section 27 Add: Note: Subsection 30P(3) deals with registration of small‑scale technology certificates created by the Regulator for purchase through the clearing house. 53 At the end of section 28 Add: (4) This section does not apply in relation to a transfer of a small‑scale technology certificate by or to the Regulator under subsection 30N(2) or 30P(4). 54 Section 28A (notes 1 and 2) Repeal the notes, substitute: Note 1: The name of the current registered owner of each certificate is in the register of large‑scale generation certificates or the register of small‑scale technology certificates (as appropriate). Note 2: Certificates can also be surrendered: (a) under Subdivision A of Division 1 of Part 5; or (b) if they are large‑scale generation certificates—under section 95. 55 Subsection 29(1) Omit "44 or", substitute "Subdivision A of Division 1 of Part 5, or section". 56 Paragraphs 30D(1)(d) and (3)(b) Omit "certificates", substitute "large‑scale generation certificates". 57 Subsection 30D(6) Omit "certificates", substitute "large‑scale generation certificates". 58 After Part 2 Insert: Part 2A—Clearing house for small‑scale technology certificates Division 1—Preliminary 30H Overview of Part This Part provides for the Regulator to establish and operate a clearing house for the transfer of small‑scale technology certificates. Division 2—Regulator to establish and operate clearing house 30J Regulator to establish and operate clearing house The Regulator is to establish and operate a facility (the clearing house) for the transfer of small‑scale technology certificates in accordance with this Part. Division 3—Entering certificates into the clearing house 30K Application for certificate to be entered into the clearing house (1) A person who: (a) is the registered owner of a small‑scale technology certificate; or (b) has both: (i) created a small‑scale technology certificate; and (ii) advised the Regulator of the creation of the certificate under subsection 26(2); may apply to the Regulator for the certificate to be entered into the clearing house. (2) The application must: (a) be in writing; and (b) be in a form approved, in writing, by the Regulator; and (c) be accompanied by any information required by the regulations; and (d) be accompanied by any documents required by the regulations. 30L Regulator to enter certificate into the clearing house (1) If: (a) an application is made in accordance with section 30K in relation to a small‑scale technology certificate; and (b) the certificate is or becomes registered in the register of small‑scale technology certificates; the Regulator must enter the certificate into the clearing house by including the certificate on the clearing house transfer list in accordance with the regulations. (2) The clearing house transfer list is a list, maintained by the Regulator in accordance with the regulations, of the certificates that are available for transfer through the clearing house. The list must be maintained so that: (a) subject to paragraph (b), certificates are included on the list in the order in which applications relating to the certificates are received (with the certificates to which the most recent applications relate at the bottom of the list); and (b) if a certificate to which an application relates does not become registered until after the application was received, paragraph (a) applies as if the application was received when the certificate was registered; and (c) a certificate must be removed from the list if: (i) the certificate is withdrawn from the clearing house; or (ii) the certificate is transferred under section 30N; or (iii) the certificate is cancelled under section 30P. Note: Regulations under section 30U may allow the Regulator to remove certificates from the list in other circumstances. (3) If the Regulator includes a certificate on the clearing house transfer list, the Regulator must: (a) alter the register of small‑scale technology certificates to show that the certificate is in the clearing house; and (b) take such other steps as are prescribed by the regulations. (4) While a certificate is on the clearing house transfer list, the certificate may still be transferred by its registered owner to another person otherwise than under this Part. Despite that transfer, the certificate will remain on the clearing house transfer list, and may be dealt with under this Part, unless the new registered owner withdraws the certificate from the clearing house. Note: See also sections 27 (certificates may be transferred) and 28 (Regulator to be notified of transfer). (5) The clearing house transfer list is not a legislative instrument. Division 4—Purchase of certificates through the clearing house 30LA Clearing house price etc. (1) The clearing house price is: (a) subject to paragraph (b)—$40; or (b) if the Minister, by legislative instrument, specifies a lesser amount as being the clearing house price for the purpose of this subsection—the amount so specified. (2) The GST inclusive clearing house price is the amount equal to 110% of the clearing house price. (3) Before making an instrument under paragraph (1)(b), the Minister: (a) must take into consideration: (i) whether the total value, in MWh, of small‑scale technology certificates created in 2015 exceeded or is expected to exceed 6,000,000; and (ii) any changes to the costs of small generation units and solar water heaters; and (iii) the extent to which owners of small generation units and solar water heaters contribute to the costs of small generation units and solar water heaters; and (iv) the impact of the clearing house price, and the number of small generation units and solar water heaters installed, on the electricity market, including on electricity prices; and (b) may take into consideration any other matters that the Minister considers relevant. (4) If the Minister is considering a matter mentioned in paragraph (3)(a), the Minister must obtain, and take into consideration, independent advice about that matter. (5) An instrument made under paragraph (1)(b) must not be expressed to commence earlier than the first 1 April following the making of the instrument. (6) If: (a) an instrument is made under paragraph (1)(b); and (b) on a particular day (the tabling day), a copy of the instrument is tabled before a House of the Parliament under section 38 of the Legislative Instruments Act 2003; then, on or as soon as practicable after the tabling day, the Minister must cause to be tabled before that House a written statement setting out the Minister's reasons for making the instrument. 30M Application for purchase of certificate through the clearing house (1) Subject to subsection (2), a person may apply to the Regulator to purchase a small‑scale technology certificate. (2) The regulations may provide that certain persons are not entitled (either generally or in particular circumstances) to make an application. (3) An application must: (a) be in writing; and (b) be in a form approved, in writing, by the Regulator; and (c) be accompanied by the GST inclusive clearing house price; and (d) be accompanied by any fee required by the regulations. 30N If there is a certificate on the clearing house transfer list—Regulator to transfer certificate Scope (1) This section applies if: (a) a person (the purchaser) has made an application in accordance with section 30M to purchase a small‑scale technology certificate; and (b) there is a small‑scale technology certificate on the clearing house transfer list. Regulator to transfer certificate at top of clearing house transfer list (2) The Regulator must transfer the certificate that is at the top of the clearing house transfer list to the purchaser on behalf of the person (the seller) who, immediately before the transfer, was the registered owner of that certificate. (3) If the Regulator transfers a certificate under subsection (2), the Regulator must, as soon as practicable: (a) give the purchaser notice in writing of the transfer; and (b) pay the seller the amount specified in subsection (4); and (c) alter the register of small‑scale technology certificates to show the purchaser as the owner of the certificate. (4) For the purposes of paragraph (3)(b), the amount is: (a) if the transfer of the certificate is a taxable supply by the seller to the purchaser—the GST inclusive clearing house price; or (b) if the transfer of the certificate is not a taxable supply by the seller to the purchaser—the clearing house price. (5) Ownership of the certificate transfers to the purchaser when the register of small‑scale technology certificates is altered in accordance with paragraph (3)(c). 30P If there is no certificate on the clearing house transfer list—Regulator to create certificate Scope (1) This section applies if: (a) a person (the purchaser) has made an application in accordance with section 30M to purchase a small‑scale technology certificate; and (b) there is no small‑scale technology certificate on the clearing house transfer list. Regulator to create certificate (2) The Regulator must create a small‑scale technology certificate for the purchaser. (3) If the Regulator creates a certificate under subsection (2): (a) the certificate is valid; and (b) the Regulator must, as soon as practicable: (i) give the purchaser notice in writing of the creation of the certificate; and (ii) create an entry for the certificate in the register of small‑scale technology certificates and record the purchaser as the owner of the certificate. Cancellation of next certificate included on clearing house transfer list (4) If a certificate is created under subsection (2), the following provisions apply: (a) the next small‑scale technology certificate (the transferred certificate) that is included on the clearing house transfer list is, immediately after being so included, taken to be transferred to the Regulator by the person (the seller) who was its registered owner immediately before it was included on the list; (b) the Regulator must, as soon as practicable: (i) cancel the transferred certificate; and (ii) pay the seller the amount specified in subsection (5); and (iii) alter the entry relating to the transferred certificate in the register of small‑scale technology certificates to show that the transferred certificate is no longer valid. (5) For the purposes of subparagraph (4)(b)(ii), the amount is: (a) if the transfer to the Regulator of the transferred certificate constitutes a taxable supply by the seller to the Regulator—the GST inclusive clearing house price; or (b) if the transfer to the Regulator of the transferred certificate does not constitute a taxable supply by the seller to the Regulator—the clearing house price. 30Q Form and content of certificates created by the Regulator (1) Certificates created by the Regulator under subsection 30P(2) are to be created in an electronic form approved in writing by the Regulator. (2) Each certificate is to contain: (a) the year; and (b) a statement to the effect that the certificate was created by the Regulator under section 30P; and (c) a number in an unbroken sequence that is used for all certificates created by the Regulator in that year and that starts at one and has increments of one; and (d) the date on which the certificate was created. Division 5—Renewable Energy Special Account 30R Renewable Energy Special Account (1) The Renewable Energy Special Account is established by this section. (2) The Renewable Energy Special Account is a Special Account for the purposes of the Financial Management and Accountability Act 1997. 30S Credits to the Renewable Energy Special Account There must be credited to the Renewable Energy Special Account amounts equal to amounts received by the Regulator under paragraph 30M(3)(c) in relation to the purchase of certificates. Note: An Appropriation Act may contain a provision to the effect that, if any of the purposes of a Special Account is a purpose that is covered by an item in the Appropriation Act (whether or not the item expressly refers to the Special Account), then amounts may be debited against the appropriation for that item and credited to that Special Account. 30T Purposes of the Renewable Energy Special Account The purposes of the Renewable Energy Special Account are as follows: (a) paying amounts under paragraph 30N(3)(b) in relation to the transfer of certificates; (b) paying amounts under subparagraph 30P(4)(b)(ii) in relation to the transfer of certificates; (c) refunding amounts under regulations made for the purpose of paragraph 30U(2)(i); (d) paying amounts of GST for which the Regulator is liable because of the creation of certificates for purchasers under section 30P. Note: See section 21 of the Financial Management and Accountability Act 1997 (debits from Special Accounts). Division 6—Other matters 30U Regulations about the operation of the clearing house (1) The regulations may prescribe the policies, procedures and rules that apply in relation to the establishment and operation of the clearing house. (2) In particular, the regulations may deal with any or all of the following matters: (a) the time when applications may be made; (b) the time within which, and the manner by which, applications must be dealt with; (c) the withdrawal of certificates from the clearing house; (d) the circumstances in which the Regulator may remove a certificate from the clearing house transfer list other than under paragraph 30L(2)(c); (e) the timing and methods of payment of amounts; (f) the publication of information about the clearing house, including publication of the clearing house transfer list; (g) the keeping of records by the Regulator in relation to the operation of the clearing house; (h) the fees that are payable in relation to matters connected with the clearing house (including matters connected with the Regulator's powers and functions in relation to the clearing house and the clearing house transfer list); (i) the payment of refunds in the following circumstances: (i) a small‑scale technology certificate is transferred to a purchaser under section 30N but the transfer is not a taxable supply by the seller to the purchaser; (ii) a small‑scale technology certificate is created for a purchaser under section 30P but the creation of the certificate is not a taxable supply by the Regulator to the purchaser. 59 Before Division 1 of Part 4 Insert: Division 1AA—Preliminary 34A Overview of Part This Part deals with liability to renewable energy shortfall charge. Subdivision A of Division 1 defines who is a liable entity. There are 2 types of renewable energy shortfall charge: (a) large‑scale generation shortfall charge (see Subdivision B of Division 1), which is calculated by reference to a liable entity's relevant acquisitions of electricity, its partial exemptions, the number of large‑scale generation certificates it surrenders and the renewable energy power percentage; and (b) small‑scale technology shortfall charge (see Subdivision C of Division 1), which is calculated by reference to a liable entity's relevant acquisitions of electricity, its partial exemptions, the number of small‑scale technology certificates it surrenders and the small‑scale technology percentage. Division 1A deals with the determination of the amount (if any) of a liable entity's partial exemption from charge. Division 2 deals with the renewable power percentage for large‑scale generation shortfall charge. Division 2A deals with the small‑scale technology percentage for small‑scale technology charge. Division 3 deals with other matters related to renewable energy shortfall charge. 60 Before section 35 Insert: Subdivision A—Liable entities 61 Sections 36 to 38 Repeal the sections, substitute: Subdivision B—Large‑scale generation shortfall charge 36 Large‑scale generation shortfall charge payable by liable entity (1) Subject to subsection (2), if a liable entity has a large‑scale generation shortfall for a year, large‑scale generation shortfall charge is payable in respect of the shortfall. (2) No large‑scale generation shortfall charge is payable by a liable entity for a year if its large‑scale generation shortfall for the year is less than 10% of the liable entity's required large‑scale renewable energy for the year. However, the large‑scale generation shortfall becomes a carried forward shortfall for the year. (3) Large‑scale generation shortfall charge imposed in respect of a liable entity's large‑scale generation shortfall for a year is payable by the liable entity. Note: Large‑scale generation shortfall charge is imposed by the Renewable Energy (Electricity) (Large‑scale Generation Shortfall Charge) Act 2000. 37 Amount of charge The amount of large‑scale generation shortfall charge payable by a liable entity is worked out using the formula: where: rate of charge is the rate of charge as specified in section 6 of the Renewable Energy (Electricity) (Large‑scale Generation Shortfall Charge) Act 2000. 38 Determination of large‑scale generation shortfall The following method statement shows how to work out a liable entity's large‑scale generation shortfall for a year: Method statement Step 1. Work out the total amount, in MWh, of electricity acquired by the liable entity during the year under relevant acquisitions. Step 2. Subtract from the total electricity acquired the amount of the liable entity's partial exemption for the year. Step 3. Multiply the result of step 2 by the renewable power percentage for the year and round the result to the nearest MWh (rounding 0.5 upwards). Add to the result any carried forward shortfall from the previous year or subtract any carried forward surplus for the previous year. The result is the liable entity's required large‑scale renewable energy for the year. Step 4. Subtract the total value, in MWh, of large‑scale generation certificates surrendered for that year, under Subdivision A of Division 1 of Part 5, by the liable entity from the required large‑scale renewable energy for the year. Result: If the result is greater than zero, the liable entity has a large‑scale generation shortfall for the year equal to the result. If the result is zero, the liable entity does not have a large‑scale generation shortfall for the year. If the result is less than zero, the liable entity has a carried forward surplus for the year equal to the result (expressed as a positive). Subdivision C—Small‑scale technology shortfall charge 38AA Interpretive provisions relating to liability for small‑scale technology shortfall charge etc. (1) This section defines expressions that are used in provisions that deal with the determination of a liable entity's liability to small‑scale technology shortfall charge for a year (the assessment year), and related matters. Assessment year's reduced acquisitions (2) The assessment year's reduced acquisitions is the amount worked out by subtracting the amount of the liable entity's partial exemption (if any) for the assessment year from the total amount, in MWh, of electricity acquired during the assessment year by the liable entity under relevant acquisitions. Previous year's reduced acquisitions (3) The previous year's reduced acquisitions is the amount worked out by subtracting the amount of the liable entity's partial exemption (if any) for the previous year from the amount, in MWh, of electricity acquired by the liable entity during the previous year under relevant acquisitions. (4) For the purpose of subsection (3): (a) the amount, in MWh, of electricity acquired during the previous year by the liable entity under relevant acquisitions is taken to be the amount stated as having been so acquired in the liable entity's energy acquisition statement for the previous year (taking account of any amendments to that statement that were made before 1 April in the assessment year); and (b) the amount of the liable entity's partial exemption for the previous year is taken to be the total amount of partial exemption claimed in the liable entity's energy acquisition statement for the previous year (taking account of any amendments to that statement that were made before 1 April in the assessment year); and (c) if, for any reason, the liable entity has not lodged an energy acquisition statement for the previous year before 1 April in the assessment year, the liable entity is taken not to have any previous year's reduced acquisitions. Note: If paragraph (4)(c) applies, the liable entity may make an application under section 38AG to have an amount apply as if it were the previous year's reduced acquisitions. If the entity does not do so, the default rule in section 38AH will apply. The quarters of a year (5) Each year consists of quarters as follows: (a) January, February and March in the year (the first quarter); (b) April, May and June in the year (the second quarter); (c) July, August and September in the year (the third quarter); (d) October, November and December in the year (the fourth quarter). The surrender period for a quarter (6) The surrender period for a quarter of a year is as follows (inclusive of the specified dates): (a) for the first quarter—the period from 15 February to 28 April in the year; (b) for the second quarter—the period from 29 April to 28 July in the year; (c) for the third quarter—the period from 29 July to 28 October in the year; (d) for the fourth quarter—the period from 29 October in the year to the time by which the liable entity is required to lodge an energy acquisition statement for the year. Note: The period described in paragraph (6)(d) will end on 14 February in the next year, unless the Regulator allows a later day under paragraph 44(1)(b). (7) Section 36 of the Acts Interpretation Act 1901 does not affect the time when the surrender period for the first, second or third quarter of a year ends. 38AB Small‑scale technology shortfall charge payable by liable entity (1) If a liable entity has a small‑scale technology shortfall for a year, small‑scale technology shortfall charge is payable in respect of the shortfall. (2) Small‑scale technology shortfall charge imposed in respect of a liable entity's small‑scale technology shortfall for a year is payable by the liable entity. Note: Small‑scale technology shortfall charge is imposed by the Renewable Energy (Electricity) (Small‑scale Technology Shortfall Charge) Act 2010. 38AC Amount of charge The amount of small‑scale technology shortfall charge payable by a liable entity is worked out using the formula: where: rate of charge is the rate of charge as specified in section 6 of the Renewable Energy (Electricity) (Small‑scale Technology Shortfall Charge) Act 2010. 38AD Determination of small‑scale technology shortfall (1) A liable entity's small‑scale technology shortfall for a year is to be worked out by adding together the quarterly shortfalls (if any) calculated in relation to the entity for the quarters of the year under section 38AE. (2) If the result is a positive amount, the liable entity has a small‑scale technology shortfall for the year equal to the result. (3) If the result is zero, the liable entity does not have a small‑scale technology shortfall for the year. 38AE Quarterly shortfalls for the quarters of a year First quarter of year (1) The following method statement shows how to work out a liable entity's quarterly shortfall for the first quarter of a year (the assessment year). Method statement Step 1. Work out 35% of the previous year's reduced acquisitions. Multiply this by the small‑scale technology percentage for the assessment year and round the result to the nearest MWh (rounding 0.5 upwards). The result is the required surrender amount. Step 2. Add together: (a) the total value, in MWh, of small‑scale technology certificates surrendered, under Subdivision A of Division 1 of Part 5, by the liable entity during the surrender period for the first quarter; and (b) the amount of any quarterly surplus that the liable entity has for the fourth quarter of the previous year. The result is the surrendered amount. Step 3. Subtract the surrendered amount from the required surrender amount. Result: If the result is greater than zero, the liable entity has a quarterly shortfall for the first quarter of the assessment year equal to the result. If the result is zero, the liable entity does not have a quarterly shortfall for the first quarter of the assessment year. If the result is less than zero, the liable entity has a quarterly surplus for the first quarter of the assessment year equal to the result (expressed as a positive). Second quarter of the assessment year (2) The following method statement shows how to work out a liable entity's quarterly shortfall for the second quarter of the assessment year. Method statement Step 1. Work out 25% of the previous year's reduced acquisitions. Multiply this by the small‑scale technology percentage for the assessment year and round the result to the nearest MWh (rounding 0.5 upwards). The result is the required surrender amount. Step 2. Add together: (a) the total value, in MWh, of small‑scale technology certificates surrendered, under Subdivision A of Division 1 of Part 5, by the liable entity during the surrender period for the second quarter; and (b) the amount of any quarterly surplus that the liable entity has for the first quarter of the assessment year. The result is the surrendered amount. Step 3. Subtract the surrendered amount from the required surrender amount. Result: If the result is greater than zero, the liable entity has a quarterly shortfall for the second quarter of the assessment year equal to the result. If the result is zero, the liable entity does not have a quarterly shortfall for the second quarter of the assessment year. If the result is less than zero, the liable entity has a quarterly surplus for the second quarter of the assessment year equal to the result (expressed as a positive). Third quarter of the assessment year (3) The following method statement shows how to work out a liable entity's quarterly shortfall for the third quarter of the assessment year. Method statement Step 1. Work out 25% of the previous year's reduced acquisitions. Multiply this by the small‑scale technology percentage for the assessment year and round the result to the nearest MWh (rounding 0.5 upwards). The result is the required surrender amount. Step 2. Add together: (a) the total value, in MWh, of small‑scale technology certificates surrendered, under Subdivision A of Division 1 of Part 5, by the liable entity during the surrender period for the third quarter; and (b) the amount of any quarterly surplus that the liable entity has for the second quarter of the assessment year. The result is the surrendered amount. Step 3. Subtract the surrendered amount from the required surrender amount. Result: If the result is greater than zero, the liable entity has a quarterly shortfall for the third quarter of the assessment year equal to the result. If the result is zero, the liable entity does not have a quarterly shortfall for the third quarter of the assessment year. If the result is less than zero, the liable entity has a quarterly surplus for the third quarter of the assessment year equal to the result (expressed as a positive). Fourth quarter of the assessment year (4) The following method statement shows how to work out a liable entity's quarterly shortfall for the fourth quarter of the assessment year. Method statement Step 1. Work out the assessment year's reduced acquisitions. Multiply this by the small‑scale technology percentage for the assessment year and round the result to the nearest MWh (rounding 0.5 upwards). Step 2. Subtract from the amount worked out under step 1 the total of the required surrender amounts for the first, second and third quarters of the assessment year. The result (which may be less than zero) is the required surrender amount. Step 3. Add together: (a) the total value, in MWh, of small‑scale technology certificates surrendered, under Subdivision A of Division 1 of Part 5, by the liable entity during the surrender period for the fourth quarter; and (b) the amount of any quarterly surplus that the liable entity has for the third quarter of the assessment year. The result is the surrendered amount. Step 4. If the required surrender amount is zero or greater, subtract the surrendered amount from the required surrender amount. Result: If the result is greater than zero, the liable entity has a quarterly shortfall for the fourth quarter of the assessment year equal to the result. If the result is zero, the liable entity does not have a quarterly shortfall for the fourth quarter of the assessment year. If the result is less than zero, the liable entity has a quarterly surplus for the fourth quarter of the assessment year equal to the result (expressed as a positive amount). Step 5. If the required surrender amount is less than zero, add together that amount (expressed as a positive) to the surrendered amount. Result: The liable entity has a quarterly surplus for the fourth quarter of the assessment year equal to the result. 38AF Energy acquisition statement lodged for previous year: application to have amount apply instead of previous year's reduced acquisitions (1) If the liable entity lodged an energy acquisition statement for the previous year before 1 April in the assessment year, the liable entity may apply to the Regulator to have an amount (the proposed amount) apply instead of the previous year's reduced acquisitions for the purpose of applying section 38AE to the assessment year. (2) The application must: (a) specify the proposed amount; and (b) be made before 1 October in the assessment year. Note: For other provisions relating to the making of applications, see section 38AI. (3) The Regulator must consider the application and must, in writing: (a) determine that the proposed amount, or a different amount, is to apply instead of the amount of the previous year's reduced acquisitions; or (b) refuse to make such a determination. (4) A determination under subsection (3) is not a legislative instrument. (5) In relation to the Regulator's power to determine an amount that is different from the proposed amount: (a) a different amount determined by the Regulator must not be less than the proposed amount and must not exceed the previous year's reduced acquisitions; and (b) before determining a different amount, the Regulator must: (i) invite the liable entity to comment on the amount that the Regulator proposes to determine; and (ii) consider the liable entity's comments (if any). (6) If the Regulator determines an amount under paragraph (3)(a) then, subject to subsection (7), section 38AE applies to the entity and the assessment year as if the amount determined were the previous year's reduced acquisitions. (7) If the assessment year's reduced acquisitions exceed the amount determined by more than the prescribed percentage of the amount determined, then: (a) subsection (6) does not apply; and (b) references in section 38AE to the previous year's reduced acquisitions are instead taken to be references to the assessment year's reduced acquisitions. For this purpose, the prescribed percentage is the percentage prescribed by the regulations for the purpose of this subsection. (8) The Regulator must give the liable entity written notice of the Regulator's decision in relation to the application. (9) The Regulator must comply with any requirements prescribed by the regulations in relation to the exercise of the Regulator's functions or powers under this section. 38AG No energy acquisition statement lodged for previous year: application to have amount apply as if it were previous year's reduced acquisitions (1) If, for any reason, the liable entity did not lodge an energy acquisition statement for the previous year before 1 April in the assessment year, the liable entity may apply to the Regulator to have an amount (the proposed amount) apply as if it were the previous year's reduced acquisitions for the purpose of applying subsection 38AE(1), (2) or (3) to a quarter (the relevant quarter) of the assessment year. Note 1: Different amounts may be proposed by the liable entity, and different amounts may be determined by the Regulator, in relation to different quarters of the assessment year. Note 2: If the liable entity does not make an application under this section, the default rule in section 38AH will apply. (2) The application must: (a) specify the proposed amount for the relevant quarter; and (b) be made before the end of the assessment year. Note: For other provisions relating to the making of applications, see section 38AI. (3) The Regulator must consider the application and must, in writing: (a) determine that the proposed amount, or a different amount, is to apply for the relevant quarter as if it were the previous year's reduced acquisitions; or (b) refuse to make such a determination. (4) A determination under subsection (3) is not a legislative instrument. (5) In relation to the Regulator's power to determine an amount that is different from the proposed amount for the relevant quarter: (a) a different amount determined by the Regulator must not be less than the proposed amount; and (b) before determining a different amount, the Regulator must: (i) invite the liable entity to comment on the amount that the Regulator proposes to determine; and (ii) consider the liable entity's comments (if any). (6) If the Regulator determines an amount for the relevant quarter under paragraph (3)(a), then subsection 38AE(1), (2) or (3) (as the case requires) applies to the relevant quarter as if the amount determined were the previous year's reduced acquisitions. (7) The Regulator must give the liable entity written notice of the Regulator's decision in relation to the application. (8) The Regulator must comply with any requirements prescribed by the regulations in relation to the exercise of the Regulator's functions or powers under this section. 38AH No energy acquisition statement lodged for previous year: default rule (1) This section applies, in relation to the first, second or third quarter (the relevant quarter) of the assessment year, if: (a) for any reason, the liable entity did not lodge an energy acquisition statement for the previous year before 1 April in the assessment year; and (b) either: (i) the liable entity did not make an application under section 38AG before the end of the assessment year in relation to the relevant quarter; or (ii) the liable entity made such an application in relation to the relevant quarter, but the Regulator refused to make a determination under paragraph 38AG(3)(a) in relation to that quarter. (2) If this section applies, then subsection 38AE(1), (2) or (3) (as the case requires) applies to the relevant quarter as if the amount specified in whichever of the following paragraphs applies were the previous year's reduced acquisitions: (a) if the liable entity made relevant acquisitions of electricity in the relevant quarter—the amount of the assessment year's reduced acquisitions; (b) if the liable entity did not make any relevant acquisitions of electricity in the relevant quarter—zero. 38AI General provisions relating to applications under sections 38AF and 38AG Requirements for applications (1) An application under section 38AF or 38AG must: (a) be in writing; and (b) be in a form approved, in writing, by the Regulator; and (c) include any information required by the regulations; and (d) be accompanied by any documents required by the regulations; and (e) be accompanied by any report required by the regulations; and (f) be accompanied by any fee required by the regulations. (2) The approved form of application may provide for verification by statutory declaration of statements in applications. Regulator may require further information (3) The Regulator may, by written notice given to a liable entity that has made an application under section 38AF or 38AG, require the entity to give the Regulator, within the period specified in the notice, further information in connection with the application. (4) If the entity breaches the requirement, the Regulator may, by written notice given to the entity: (a) refuse to consider the application; or (b) refuse to take any action, or any further action, in relation to the application. 62 Section 38A Omit "the renewable energy shortfall charge", substitute "large‑scale generation shortfall charge and small‑scale technology shortfall charge". 63 Division 2 of Part 4 (heading) Repeal the heading, substitute: Division 2—Renewable power percentage for large‑scale generation shortfall charge 64 Subsection 39(1) After "specified in the regulations", insert "for the purpose of this subsection". 65 Paragraph 39(3)(d) Repeal the paragraph, substitute: (d) the amount estimated as the amount of all partial exemptions that will be claimed for the year. 66 After Division 2 of Part 4 Insert: Division 2A—Small‑scale technology percentage for small‑scale technology shortfall charge 40A Regulations to specify small‑scale technology percentage (1) The small‑scale technology percentage for a year is the percentage prescribed by the regulations for the purpose of this subsection. The regulations prescribing a percentage for a year must be made on or before 31 March in the year. (2) If the regulations do not prescribe a percentage for the year starting on 1 January 2012 or a later year, the small‑scale technology percentage for that year is the rate worked out using the formula: where: certificate value for previous year is the total value, in MWh, of small‑scale technology certificates created in the previous year. certificate value for year before previous year is the total value, in MWh, of small‑scale technology certificates created in the year before the previous year. (3) Before the Governor‑General makes a regulation under subsection (1) specifying the small‑scale technology percentage for a year (the current year), the Minister must take into consideration: (a) the estimated value, in MWh, of small‑scale technology certificates that will be created in the current year under Subdivisions B and BA of Division 4 of Part 2; and (b) the amount estimated as the amount of electricity that will be acquired under relevant acquisitions during the current year; and (c) the amount estimated as the amount of all partial exemptions that will be claimed for the current year; and (d) if the current year is the year commencing on 1 January 2012 or a later year: (i) the amount by which the previous year's estimate under paragraph (a) exceeded, or was exceeded by, the value, in MWh, of small‑scale technology certificates that were created in that year under Subdivisions B and BA of Division 4 of Part 2; and (ii) the amount by which the previous year's estimate under paragraph (b) exceeded, or was exceeded by, the amount of electricity that was acquired under relevant acquisitions during that year; and (iii) the amount by which the previous year's estimate under paragraph (c) exceeded, or was exceeded by, the amount of partial exemptions that were claimed for the previous year. (4) If, at the time the Minister takes into consideration the matters referred to in subsection (3), the amount referred to in subparagraph (3)(d)(i), (ii) or (iii) is not known, then the Minister may take into consideration an estimate of that amount instead. (5) A failure to comply with subsection (3) does not affect the validity of the regulations. 67 Division 3 of Part 4 (heading) Repeal the heading, substitute: Division 3—Other provisions related to renewable energy shortfall charge 40B Regulator to publish estimate of small‑scale technology percentage (1) Before 31 March in each year, the Regulator must publish on its website an estimate of the small‑scale technology percentage for each of the next 2 years. (2) An estimate published under this section: (a) does not in any way bind the Regulator, the Commonwealth or any other person; and (b) does not in any way affect the determination of a liable entity's liability to small‑scale technology shortfall charge for a year. 40C Regulator to give liable entity estimate of current year's required surrender amounts for first 3 quarters (1) If a liable entity lodges an energy acquisition statement for a year before 1 April in the next year (the current year), the Regulator must, before 15 April in the current year, give the liable entity written notice of the amounts that the Regulator estimates will be the liable entity's required surrender amounts under section 38AE for the first, second and third quarters of the current year. (2) In making an estimate under subsection (1), the Regulator is to disregard any determination made by the Regulator under section 38AF on or after 1 April in the current year. (3) An estimate given to a liable entity under this section: (a) does not in any way bind the Regulator, the Commonwealth or any other person; and (b) does not in any way affect the determination of the liable entity's liability to small‑scale technology shortfall charge for a year. 68 Paragraph 41(b) Omit "renewable energy certificate shortfall", substitute "large‑scale generation shortfall or small‑scale technology shortfall". 69 Division 1 of Part 5 Repeal the Division, substitute: Division 1AA—Preliminary 43A Overview of Part This Part deals with various matters relating to the determination of a liable entity's liability to renewable energy shortfall charge. Subdivision A of Division 1 requires the lodgment of annual energy acquisition statements by liable entities. The entity may surrender renewable energy certificates for the year (or for the quarters of the year) in the statement. The entity may surrender additional certificates in certain circumstances. Subdivision B of Division 1 requires the lodgment of annual renewable energy shortfall statements by entities that have large‑scale generation shortfalls or small‑scale technology shortfalls. Division 1A deals with the issue and amendment of partial exemption certificates. Division 2 deals with the assessment of liability to renewable energy shortfall charge, and for the amendment of assessments. It also deals with other related matters. Division 1—Statements Subdivision A—Annual energy acquisition statements 44 Annual energy acquisition statements (1) A liable entity that acquired electricity under a relevant acquisition during a year (the assessment year) must lodge an energy acquisition statement for the year on or before: (a) 14 February in the next year; or (b) any later day allowed by the Regulator. Note: For amendment of such statements, see section 45A. (2) The statement must set out: (a) the name and postal address of the liable entity; and (b) the amount, in MWh, of electricity acquired by the liable entity under relevant acquisitions during the assessment year; and (c) whether the liable entity wishes to claim a partial exemption for the assessment year (see also subsection (3)); and (d) the large‑scale charge information (see subsection (4)); and (e) the small‑scale charge information (see subsection (5)); and (f) any other information required by the regulations. (3) If the liable entity wishes to claim a partial exemption for the assessment year, the statement must be accompanied by: (a) a copy of each partial exemption certificate issued to the liable entity for the assessment year in relation to an emissions‑intensive trade‑exposed activity carried on by the liable entity during the year; and (b) a copy of each partial exemption certificate issued to another person in relation to the liable entity for the assessment year and given to the liable entity. (4) For the purpose of paragraph (2)(d), the large‑scale charge information is: (a) the value, in MWh, of large‑scale generation certificates being surrendered for the assessment year under section 44A; and (b) the amount of any carried forward shortfall or carried forward surplus that the liable entity had for the previous year; and (c) the amount of any carried forward surplus that the liable entity has for the assessment year. (5) For the purpose of paragraph (2)(e), the small‑scale charge information is: (a) for each of the quarters of the assessment year—the value, in MWh, of small‑scale technology certificates that have been or are being surrendered for the quarter under section 45 during the surrender period for the quarter; and (b) the amounts of any quarterly surpluses and quarterly shortfalls that the liable entity has for the quarters of the assessment year; and (c) the amount of any quarterly surplus that the liable entity had for the fourth quarter of the previous year; and (d) if the Regulator has, under section 38AF, determined an amount that is to apply instead of the previous year's reduced acquisitions—the amount so determined; and (e) if the Regulator has, under section 38AG, determined an amount that is to apply, for a quarter of the assessment year, as if it were the previous year's reduced acquisitions—the amount so determined for that quarter; and (f) if section 38AH applies in relation to a quarter of the assessment year—a statement as to whether the liable entity made any relevant acquisitions of electricity in that quarter. (6) The statement must: (a) be in a form approved by the Regulator; and (b) be lodged with the Regulator in accordance with the regulations; and (c) be signed by or on behalf of the liable entity making the statement. 44A Surrender of large‑scale generation certificates in energy acquisition statement (1) A liable entity may surrender large‑scale generation certificates for a year by including details of the large‑scale generation certificates (the identified certificates) that it is surrendering for the year in its energy acquisition statement for the year. Note: For limitations on the certificates that can be surrendered, see section 45D. (2) The identified certificates are taken to be surrendered when the energy acquisition statement is lodged, other than any of those certificates that cannot be surrendered because of section 45D. (3) The Regulator must, by notice in writing given to the liable entity, advise the entity of: (a) the number of the identified certificates that (taking account of section 45D) are able to be surrendered for the year; and (b) the fee payable by the entity under section 45E in respect of the surrender of those certificates. (4) A notice under subsection (3) is not a legislative instrument. 45 Surrender of small‑scale technology certificates in quarterly surrender instrument Surrender of small‑scale technology certificates on a quarterly basis (1) A liable entity may surrender small‑scale technology certificates for a quarter of a year by including details of the small‑scale technology certificates (the identified certificates) that it is surrendering for the quarter in whichever of the following (the surrender instrument) applies: (a) for the first, second or third quarter of the year—a notice that: (i) is in a form approved by the Regulator; and (ii) is lodged, before the end of the surrender period for the quarter, in accordance with the regulations; and (iii) is signed by or on behalf of the liable entity; (b) for the fourth quarter of the year—the liable entity's energy acquisition statement for the year. Note: For limitations on the certificates that can be surrendered, see section 45D. (2) The identified certificates are taken to be surrendered when the surrender instrument is lodged, other than any of those certificates that cannot be surrendered because of section 45D. Regulator to give liable entity notice relating to surrenders for first, second or third quarter (3) After the liable entity has lodged the surrender instrument for the first, second or third quarter, the Regulator must, by notice in writing given to the liable entity, advise the liable entity of the number of the identified certificates for the quarter that (taking account of section 45D) are able to be surrendered for the quarter. Regulator to give liable entity notice relating to total surrenders for the year (4) After the liable entity has lodged its energy acquisition statement for the year, the Regulator must, by notice in writing given to the liable entity, advise the liable entity of: (a) the number of the identified certificates for each quarter of the year that (taking account of section 45D) are or were able to be surrendered for the quarter; and (b) the fee payable by the entity under section 45E in respect of the surrender of those certificates. Notices are not legislative instruments (5) A notice under subsection (3) or (4) is not a legislative instrument. 45A Amending energy acquisition statement at request of liable entity (1) The Regulator may amend an energy acquisition statement for a year if the liable entity requests, in writing, an amendment within 12 months of lodging the statement. Note: An amendment of an energy acquisition statement under this section may also result in the Regulator issuing an assessment under section 48 or 48B or amending an assessment under section 49. (2) If the Regulator refuses to amend an energy acquisition statement under subsection (1) upon a request by a liable entity, the Regulator must notify the entity accordingly. Amendment to surrender additional certificates (3) The liable entity may, under subsection (1), request an amendment to its energy acquisition statement for a year to: (a) surrender additional large‑scale renewable energy certificates for the year (subject to section 45D); or (b) surrender additional small‑scale technology certificates for the fourth quarter of the year (subject to section 45D). Note 1: Small‑scale technology certificates for the first 3 quarters of the year are surrendered by notices under paragraph 45(1)(a). Those notices cannot be amended. Note 2: This subsection does not limit the kinds of amendment that the liable entity may request. (4) The request must include details of the additional certificates (the identified certificates) that the liable entity wishes to surrender for the year or the quarter. (5) If the Regulator agrees to the request (in whole or in part) the Regulator must, by notice in writing to the liable entity, advise the entity of: (a) the number of the identified certificates in relation to which the following subparagraphs are satisfied: (i) the Regulator agrees to make the amendment to surrender the certificates; (ii) the certificates (taking account of section 45D) are able to be surrendered for the year or the quarter; and (b) the fee payable by the entity under section 45E in respect of the surrender of the certificates (the agreed certificates) in relation to which subparagraphs (a)(i) and (ii) are satisfied. (6) A notice under subsection (5) is not a legislative instrument. (7) Subject to subsection (8), the agreed certificates are taken to have been surrendered when the Regulator makes the amendmen