House debates

Thursday, 4 June 2009

Carbon Pollution Reduction Scheme Bill 2009

Consideration in Detail

9:54 am

Photo of Greg CombetGreg Combet (Charlton, Australian Labor Party, Parliamentary Secretary for Climate Change) Share this | Hansard source

by leave—I present a supplementary explanatory memorandum and move government amendments (1) to (144):

(1)    Clause 5, page 8 (line 1), omit the definition of carbon sequestration right, substitute:

carbon sequestration right:

             (a)    when used in relation to a reforestation project—has the meaning given by section 239A; or

             (b)    when used in relation to an area of land—has the meaning given by section 240.

(2)    Clause 5, page 9 (after line 21), after the definition of controlling corporation, insert:

control: a person has control of a reforestation project if:

             (a)    the person is the holder of the forestry right in relation to the project area or each of the project areas; or

             (b)    under a contract, or an arrangement, of a kind specified in the regulations, the person is entitled or required to establish, manage and maintain:

                   (i)    a forest on the project area; or

                  (ii)    a forest on each of the project areas.

(3)    Clause 5, page 11 (after line 1), after the definition of eligible financial year, insert:

eligible interest, in relation to an area of land, has the meaning given by section 241A or 241B.

(4)    Clause 5, page 14 (after line 27), after the definition of foreign person, insert:

forest maintenance obligation has the meaning given by section 226.

forest restoration order means an order under section 226C.

(5)    Clause 5, page 15 (after line 15), at the end of the definition of forest stand, add:

The regulations may provide that, for the purposes of this definition, trees and crown cover have the respective meanings given by the regulations.

(6)    Clause 5, page 21 (after line 21), after the definition of penalty unit, insert:

permitted forest activity has the meaning given by section 226.

(7)    Clause 5, page 22 (after line 8), after the definition of premises, insert:

prescribed non-CPRS reforestation scheme has the meaning given by the regulations.

(8)    Clause 5, page 22 (after line 28), after the definition of project area, insert:

project manager, in relation to a reforestation project, has the meaning given by section 197A.

(9)    Clause 5, page 24 (lines 27 and 28), omit the definition of relinquishment obligation transfer agreement.

(10)  Clause 5, page 25 (after line 12), after the definition of scheme, insert:

scheme obligation transfer agreement has the meaning given by section 197B.

(11)  Clause 5, page 26 (lines 23 and 24), omit the definition of transferee, substitute:

transferee, in relation to a scheme obligation transfer agreement, has the meaning given by section 197B.

(12)  Clause 35, page 84 (after line 8), after paragraph (1)(c), insert:

           (ca)    the supply mentioned in paragraph (a) was not into a prescribed wholesale gas market; and

(13)  Clause 49, page 94 (line 1), omit “Authority.”, substitute “Authority; and”.

(14)  Clause 49, page 94 (after line 1), at the end of subclause (5), add:

             (c)    if the person has an ABN—the person’s ABN.

(15)  Clause 79, page 124 (after line 28), after subparagraph (2)(b)(i), insert:

                 (ia)    if a controlling corporation of a group consented under subsection 74(3) to the making of the application for the certificate—the person is not a member of the group; or

(16)  Page 155 (after line 21), after clause 116B, insert:

116BA Equitable interests in relation to a Kyoto unit

        (1)    This Act does not affect:

             (a)    the creation of; or

             (b)    any dealings with; or

             (c)    the enforcement of;

equitable interests in relation to a Kyoto unit.

        (2)    Subsection (1) is enacted for the avoidance of doubt.

(17)  Page 162 (after line 2), after clause 122A, insert:

122AA Equitable interests in relation to a non-Kyoto international emissions unit

        (1)    This Act does not affect:

             (a)    the creation of; or

             (b)    any dealings with; or

             (c)    the enforcement of;

equitable interests in relation to a non-Kyoto international emissions unit.

        (2)    Subsection (1) is enacted for the avoidance of doubt.

(18)  Clause 129, page 171 (after line 3), after subclause (5), insert:

  (5AA)    An Australian emissions unit must not be surrendered in relation to the eligible financial year beginning on 1 July 2011 unless the unit has a vintage year of that eligible financial year.

(19)  Heading to subclause 143(3), page 184 (line 29), omit “Free”.

(20)  Clause 143, page 184 (line 33), omit “free”.

(21)  Clause 146, page 190 (lines 10 to 11), omit subclause (5).

(22)  Clause 173B, page 211 (after line 8), after paragraph (1)(a), insert:

           (aa)    the corporation is capable of complying with the request; and

(23)  Clause 173B, page 211 (line 9), omit “request.”, substitute “request; and”.

(24)  Clause 173B, page 211 (after line 9), at the end of subclause (1), add:

             (c)    the Minister notifies the Authority, in writing, that the Minister considers that the non-compliance is significant.

(25)  Clause 190, page 240 (line 16), omit “holder”, substitute “project manager (who may be the holder)”.

(26)  Clause 190, page 240 (lines 25 and 26), omit “on the holder of the forestry right”.

(27)  Clause 192, page 243 (lines 3 to 11), omit subclause (1), substitute:

        (1)    If:

             (a)    a person gives a reforestation report to the Authority; and

             (b)    the reforestation report is in respect of an eligible reforestation project for a reforestation reporting period;

the person may apply to the Authority for the issue to:

             (c)    if the person holds the carbon sequestration right in relation to the project—the person; or

             (d)    otherwise—the person who holds the carbon sequestration right in relation to the project;

of a certificate of reforestation in respect of the project for the period.

Note 1:  For reforestation report, see section 225.

Note 2:  For eligible reforestation project, see section 209.

Note 3:  For reforestation reporting period, see section 223 or 224.

Note 4:  For carbon sequestration right, see section 239A.

(28)  Clause 193, page 243 (line 18), before “An”, insert “(1)”.

(29)  Clause 193, page 243 (line 20), omit “Authority.”, substitute “Authority; and”.

(30)  Clause 193, page 243 (after line 20), after paragraph (b), insert:

             (c)    be accompanied by the fee (if any) specified in the regulations.

(31)  Clause 193, page 243 (before line 21), at the end of the clause, add:

        (2)    A fee specified under paragraph (1)(c) must not be such as to amount to taxation.

(32)  Clause 195, page 244 (line 8), omit “the Authority is satisfied that”.

(33)  Clause 195, page 244 (lines 10 and 11), omit “holds the carbon sequestration right in relation to”, substitute “is the project manager for”.

(34)  Clause 195, page 244 (after line 23), after paragraph (2)(f), insert:

            (fa)    the number that, under the regulations, is taken to be the carbon stock number for the project is greater than the number that, under the regulations, is taken to be the 2008 carbon stock number for the project; and

(35)  Clause 195, page 244 (line 30), omit “Note 1”, substitute “Note”.

(36)  Clause 195, page 244 (line 31), omit note 2.

(37)  Clause 195, page 245 (after line 9), after subclause (3), insert:

     (3A)    For the purposes of subsection (3), if:

             (a)    a forest stand is situated wholly or partly on Torrens system land; and

             (b)    the Authority is not satisfied that appropriate entries or notations have been made under section 236 in relation to the land by the relevant land registration official referred to in that section;

disregard the forest stand.

(38)  Clause 195, page 245 (after line 23), after subclause (6), insert:

Copy of certificate to be given to project manager if project manager does not hold the carbon sequestration right

     (6A)    If:

             (a)    the Authority issues a certificate of reforestation to the person who holds the carbon sequestration right in relation to the project; and

             (b)    that person is not the project manager for the project;

the Authority must give a copy of the certificate to the project manager for the project.

(39)  Clause 195, page 246 (lines 1 to 5), omit subclause (8).

(40)  Clause 196, page 247 (after line 2), after subclause (3), insert:

     (3A)    For the purposes of subsection (2), if:

             (a)    a forest stand became part of an eligible reforestation project as the result of a variation of a section 209 declaration; and

             (b)    the variation took effect after the day the section 209 declaration took effect;

then, for the purposes of the application of that subsection to the eligible reforestation project, disregard anything that occurred in relation to the forest stand before the day on which the variation took effect.

(41)  Clause 196, page 247 (lines 3 to 6), omit subclause (4).

(42)  Page 247 (after line 8), after Division 3, insert:

Division 3A—Project managers

197A Project manager for a reforestation project

        (1)    For the purposes of this Act, the project manager for a reforestation project is:

             (a)    if a scheme obligation transfer agreement is in force in relation to the project—the person who, under that agreement, accepts responsibility for complying with any requirements that may be imposed by or under this Act or the associated provisions on the person in the person’s capacity as project manager for the project; or

             (b)    otherwise—the person who holds the carbon sequestration right in relation to the project.

        (2)    To avoid doubt, the continuity of a person’s status as the project manager for a reforestation project is not affected by:

             (a)    a transfer of the carbon sequestration right in relation to the project; or

             (b)    if the project is an eligible reforestation project—the variation of the section 209 declaration of the eligible reforestation project.

        (3)    To avoid doubt, if:

             (a)    a person becomes subject to a requirement to relinquish Australian emissions units in the person’s capacity as project manager for an eligible reforestation project; and

             (b)    before that requirement was met, the person ceased to be the project manager for the project;

the cessation does not affect the continuity of the requirement.

197B Scheme obligation transfer agreement

        (1)    For the purposes of this Act, a scheme obligation transfer agreement in relation to a reforestation project is an agreement, where:

             (a)    the agreement is between:

                   (i)    the person who, immediately before the agreement was entered into, was the project manager for the project; and

                  (ii)    another person (the transferee); and

             (b)    the agreement states that the transferee accepts responsibility for complying with any requirements that may be imposed by or under this Act or the associated provisions on the transferee in the transferee’s capacity as project manager for the project; and

             (c)    the Authority has given written approval to the agreement; and

             (d)    if the Authority, in accordance with the regulations, requires the transferee to give security to the Commonwealth in relation to the fulfilment by the transferee of any requirements to relinquish Australian emissions units that may be imposed on the transferee under this Part in relation to the project—the transferee has given that security; and

             (e)    the holder of the carbon sequestration right in relation to the project:

                   (i)    has consented, in writing, to the making of the agreement; or

                  (ii)    is a party to the agreement; and

              (f)    such other conditions (if any) as are specified in the regulations are satisfied.

Criteria for approval of agreement

        (2)    The Authority must not, under paragraph (1)(c), give approval to an agreement that relates to a reforestation project unless:

             (a)    the transferee is a recognised reforestation entity; and

             (b)    if the transferee neither holds, nor is likely to hold, the carbon sequestration right in relation to the project:

                   (i)    the transferee is not an individual; and

                  (ii)    the Authority is satisfied that the transferee has, or is likely to have, control of the project; and

             (c)    the Authority is satisfied that the transferee has, and is likely to continue to have:

                   (i)    the capacity; and

                  (ii)    the financial resources;

                      necessary for the transferee to comply with any requirements that may be imposed by or under this Act or the associated provisions on the transferee in the transferee’s capacity as project manager for the project; and

             (d)    if:

                   (i)    the project is or was an eligible reforestation project; and

                  (ii)    a notice was given under section 232 or 233 in relation to the reforestation project; and

                 (iii)    the notice required a person to relinquish a particular number of Australian emissions units; and

                 (iv)    the person did not comply with the requirement within 90 days after the notice was given;

                      the penalty payable under section 287 in respect of the non-compliance with the requirement (including any late payment penalty payable under section 288 in relation to the section 287 penalty) has been paid in full.

Duration of agreement

        (3)    A scheme obligation transfer agreement:

             (a)    comes into force:

                   (i)    at the time when the agreement is approved by the Authority under paragraph (1)(c); or

                  (ii)    at such later time as is specified by the Authority in the instrument of approval; and

             (b)    remains in force until whichever of the following happens first:

                   (i)    the agreement is cancelled under section 197C;

                  (ii)    another scheme obligation transfer agreement comes into force, and the other agreement is expressed to replace the first-mentioned agreement;

                 (iii)    the transferee ceases to exist.

        (4)    To avoid doubt, if:

             (a)    a scheme obligation transfer agreement is in force in relation to a reforestation project; and

             (b)    the carbon sequestration right in relation to the project is transferred;

the transfer does not affect the continuity of the agreement.

        (5)    To avoid doubt, if:

             (a)    a scheme obligation transfer agreement is in force in relation to an eligible reforestation project; and

             (b)    the relevant section 209 declaration is varied;

the variation does not affect the continuity of the agreement.

Agreement is not a legislative instrument

        (6)    A scheme obligation transfer agreement is not a legislative instrument.

197C Holder of carbon sequestration right may elect to assume scheme obligations

                 If:

             (a)    a scheme obligation transfer agreement is in force in relation to a reforestation project; and

             (b)    the person who holds the carbon sequestration right in relation to the project is a recognised reforestation entity;

then:

             (c)    the holder may, by written notice given to the Authority, elect to accept responsibility for complying with any requirements that may be imposed by or under this Act or the associated provisions on the holder in the holder’s capacity as project manager for the project; and

             (d)    if the holder does so—the agreement is cancelled.

(43)  Clause 209, page 256 (lines 1 to 3), omit paragraph (4)(b).

(44)  Clause 209, page 256 (line 4), omit “applicant”, substitute “project manager for the project”.

(45)  Clause 209, page 256 (lines 5 and 6), omit paragraph (4)(d), substitute:

             (d)    the applicant is the project manager for the project; and

           (da)    a single person (who may be the applicant) holds the carbon sequestration right in relation to the project; and

           (db)    if the applicant does not hold the carbon sequestration right in relation to the project—the holder of the carbon sequestration right in relation to the project has consented, in writing, to the making of the application; and

(46)  Clause 209, page 256 (lines 7 to 18), omit paragraph (4)(e), substitute:

             (e)    each of the following has consented, in writing, to the making of the application:

                   (i)    each person (other than the applicant) who holds an eligible interest in the project area or any of the project areas;

                  (ii)    a person specified in the regulations; and

(47)  Clause 209, page 256 (after line 21), after subparagraph (4)(f)(i), insert:

                 (ia)    the project area is not, or the project areas are not, Torrens system land; and

(48)  Clause 209, page 256 (lines 26 and 27), omit subparagraph (4)(f)(iii), substitute:

                 (iii)    the person identified in the application as the holder of the carbon sequestration right in relation to the project holds that right; and

(49)  Clause 209, page 256 (line 36), omit “, or the project areas are,”.

(50)  Clause 209, page 257 (line 2), omit “or project areas”.

(51)  Clause 209, page 257 (line 3), omit “, or the project areas are not,”.

(52)  Clause 209, page 257 (line 5), omit “, or the project areas are not,”.

(53)  Clause 209, page 257 (after line 8), after subclause (5), insert:

     (5A)    A consent under paragraph (4)(e) must be in a form approved, in writing, by the Authority.

(54)  Clause 209, page 257 (lines 29 to 32), omit subclause (9), substitute:

Notification of declaration

        (9)    As soon as practicable after making a declaration under subsection (2), the Authority must give a copy of the declaration to:

             (a)    the applicant; and

             (b)    if the applicant does not hold the carbon sequestration right in relation to the project—the person who holds the carbon sequestration right in relation to the project.

(55)  Clause 212, page 260 (lines 14 to 16), omit paragraph (3)(b).

(56)  Clause 212, page 260 (line 17), omit “applicant”, substitute “project manager for the project”.

(57)  Clause 212, page 260 (lines 18 and 19), omit paragraph (3)(d), substitute:

             (d)    the applicant is the project manager for the varied project; and

           (da)    a single person (who may be the applicant) holds the carbon

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