In our newsletter of 17 July 2013, we informed you of the proposed design changes to the Carbon Pricing Mechanism to change FY15 from a “fixed charge year” to a “flexible charge year”.
Draft legislation has been prepared to give effect to these changes and can be viewed here.
The draft Clean Energy Legislation Amendment (Emissions Trading Scheme) Bill 2013 (Cth) sets out amendments to:
- the Clean Energy Act 2011 (Cth);
- the Australian National Registry of Emissions Units Act 2011 (Cth); and
- the Fuel Tax Act 2006 (Cth).
The draft Excise Tariff Amendment (Emissions Trading Scheme) Bill 2013 (Cth) sets out amendments to the Excise Tariff Act 1921 (Cth).
The explanatory note accompanying the Draft Bills provides commentary on the additional amendments that will need to be made (if the Bills are passed by Parliament) to:
- the Clean Energy Regulations 2011 (Cth);
- the Clean Energy (Reference Price Method) Determination 2013 (Cth); and
- the Clean Energy (Auction of Carbon Units) Determination 2013 (Cth).
The deadline for submissions is Thursday 15 August 2013 (which is also the deadline for eligible coal-fired generators to submit their Annual Clean Energy Investment Plans to the Minister for Resources and Energy in order to receive a free allocation of carbon units on 1 September 2013).
Please do not hesitate to contact us for assistance in understanding these developments and the potential risks and opportunities for your activities.
At a minimum, for those of you that haven’t already done so, please check your relevant contracts to ensure that they adequately deal with each potential change-in-law scenario that could occur following the Federal election later this year.