House debates

Wednesday, 29 November 2006

Energy Efficiency Opportunities Amendment Bill 2006

Second Reading

9:28 am

Photo of Ian MacfarlaneIan Macfarlane (Groom, Liberal Party, Minister for Industry, Tourism and Resources) Share this | Hansard source

I move:

That this bill be now read a second time.

The purpose of the Energy Efficiency Opportunities Amendment Bill 2006 is to make technical amendments to the Energy Efficiency Opportunities Act 2006 to correct a small number of anomalies to properly align the act with the original publicly understood policy intent and to improve its administration.

The bill amends the act, which took effect on 1 July 2006, to clarify that corporations do not need to register if they are already registered; to make clear that the period allowed for program participants to submit their assessment plans and the consequential timing of the five-year assessment cycle starts immediately after the end of the energy-use trigger year; and that, for efficient administration, the secretary’s powers and responsibilities may be delegated to acting Senior Executive Service employees.

These amendments are consistent with the intended obligations explained in the explanatory memorandum to the Energy Efficiency Opportunities Act 2006, set out in the Energy Efficiency Opportunities Regulations 2006 and published in the Energy Efficiency Opportunities Industry Guidelines. They do not represent new policy and do not affect the budgeted cost of the program.

Energy Efficiency Opportunities is a significant achievement flowing from the government’s 2004 energy policy statement, Securing Australia’s energy future.  It requires Australia’s largest energy-using businesses to undertake energy efficiency opportunities assessments and publicly report on the outcomes. This applies to an estimated 250 corporations that use more than half a petajoule of energy per year, covering around 40 per cent of Australia’s total energy use.

For the first program cycle, firms that use more than half a petajoule in the 2005-06 financial year of energy per year must register by 31 March 2007 and must complete their first assessment by June 2008 and publicly report by December 2008.

The aim of Energy Efficiency Opportunities is to stimulate the business sector to take a more rigorous and effective approach to energy management, reduce unnecessary demand on energy infrastructure and contribute to reducing greenhouse gas emissions, while improving the competitiveness and productivity of business.

Companies that used over half a petajoule in 2005-06 have until March 2007 to register. By late November 2006, six companies—Alcoa World Alumina Australia, Hanson Australia, New Hope Mining, Queensland Alumina, Rio Tinto Ltd and Leighton Holdings Ltd—have registered for the EEO program, and more are expected to register shortly. These companies, and others who are preparing to apply, are to be commended for their involvement. There is a high level of interest, with many companies already enquiring about registration, assessment and reporting for the program.

The companies who have been trialling the program assessment have found that they have been able to identify between 30 and 50 energy-saving opportunities by following the EEO assessment process. Orica has identified opportunities that could save it up to $1.2 million and reduce greenhouse emissions by 30,000 tonnes per year. Xstrata Copper plans to implement opportunities at one site that will save it an estimated $300,000 per year and is considering opportunities to save an additional $300,000 annually.

I believe that every company that participates will find opportunities that will deliver them cost-effective energy savings and will be able to make very positive changes in how they manage their energy use.

The government is working with industry and other experts to build on the best of what works for business in identifying significant energy savings. The government will continue to work closely with industry leaders to develop guidelines, materials, training and support to undertake effective assessments. Recognising and learning from leading companies and their innovative approaches to identifying and implementing energy savings will be an important strategy for achieving a major shift in Australia’s energy efficiency performance. I commend the bill to the House.

Debate (on motion by Mr Crean) adjourned.

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