Safeguard Mechanism (Crediting) Amendment Act 2023 (14 of 2023)

Schedule 1   Safeguard mechanism

Part 1   Amendment of the National Greenhouse and Energy Reporting Act 2007

National Greenhouse and Energy Reporting Act 2007

37   After subsection 22XS(1)

Insert:

(1A) The Minister must not make safeguard rules unless the Minister is satisfied that those rules:

(a) are consistent with each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d); and

(b) take into account the safeguard outcomes in paragraphs 3(2)(e) and (f).

(1B) If the Minister makes safeguard rules, the Minister must publish on the Department's website the Minister's reasons for being satisfied that the safeguard rules:

(a) are consistent with each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d); and

(b) take into account the safeguard outcomes in paragraphs 3(2)(e) and (f).

(1C) If safeguard rules are in force and the Minister receives advice under subsection 14(1) of the Climate Change Act 2022 that:

(a) safeguard emissions, or net safeguard emissions, for a financial year are not declining consistently with a safeguard outcome in paragraph 3(2)(b), (c) or (d) of this Act; and

(b) the safeguard rules need to be amended in order to achieve each of those safeguard outcomes;

the Minister must:

(c) undertake public consultation in relation to whether the safeguard rules need to be amended in order to achieve the safeguard outcomes and the content of any such amendment; and

(d) if satisfied that the safeguard rules need to be amended in order to achieve the safeguard outcomes - amend the safeguard rules.

(1D) If safeguard rules are in force and the Secretary is satisfied, having regard to:

(a) an estimate given to the Secretary under section 15A of the Climate Change Act 2022; or

(b) information published under subsection 24(3B) of this Act; or

(c) information given to the Secretary, by an agency or authority of the Commonwealth, a State or a Territory, relating to the likely covered emissions of a designated large facility for a financial year;

that the safeguard rules need to be amended in order to achieve each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d) of this Act, then:

(d) the Secretary must advise the Minister that the Secretary is so satisfied; and

(e) the Minister must:

(i) undertake public consultation in relation to whether the safeguard rules need to be amended in order to achieve the safeguard outcomes and the content of any such amendment; and

(ii) if satisfied that the safeguard rules need to be amended in order to achieve the safeguard outcomes - amend the safeguard rules.

(1E) Subsections (1C) and (1D) do not limit section 17 of the Legislation Act 2003 (rule-makers should consult before making legislative instruments).