Clean Energy Amendment (International Emissions Trading and Other Measures) Act2012 (204 of 2012)

Schedule 1  

Part 1   General amendments

Clean Energy Act 2011

86   After section 196

Insert:

196A Per-tonne carbon price equivalent

(1) Within 7 business days after the end of each designated 6-month period, the Regulator must publish on its website the per-tonne carbon price equivalent for the designated 6-month period.

Note: For designated 6-month period , see subsection (18).

Per-tonne carbon price equivalent - basic rule

(2) The per-tonne carbon price equivalent for a designated 6-month period is to be worked out to 2 decimal places (rounding up if the third decimal place is 5 or more) using the formula:

where:

average carbon unit auction price means the average carbon unit auction price for the designated 6-month period.

total of adjusted reference prices means the total of the adjusted reference prices for the designated 6-month period.

total of designated limit percentages means the total of the designated limit percentages for the classes of eligible international emissions units that are subject to designated limits for the financial year in which the designated 6-month period ends.

(3) Subsection (2) has effect subject to subsection (4).

Per-tonne carbon price equivalent - special rule

(4) If:

(a) no instrument is in force under subsection (6) at the end of a particular designated 6-month period; or

(b) the per-tonne carbon price equivalent worked out under subsection (2) for a particular designated 6-month period is greater than the average carbon unit auction price for the designated 6-month period;

the per-tonne carbon price equivalent for the designated 6-month period is equal to the average carbon unit auction price for the designated 6-month period.

Reference prices

(5) If:

(a) a particular class of eligible international emissions units is subject to a designated limit for a particular financial year; and

(b) a designated 6-month period ends in the financial year;

then, within 7 days after the end of the designated 6-month period, the Regulator must, by writing, declare that a specified amount is the reference price for the class of units for the designated 6-month period.

(6) The Minister may, by legislative instrument, determine the method that is to be used by the Regulator in making a declaration under subsection (5).

(7) In making a determination under subsection (6), the Minister must have regard to:

(a) prices paid (whether in or outside Australia) for eligible international emissions units included in each of the relevant classes of eligible international emissions units; and

(b) such other matters (if any) as the Minister considers relevant.

(8) In making a declaration under subsection (5), the Regulator must comply with a determination in force under subsection (6).

(9) The Regulator must publish a copy of a declaration under subsection (5) on the Regulator’s website.

(10) A declaration made under subsection (5) is not a legislative instrument.

Adjusted reference price

(11) For the purposes of this section, if there is a reference price for a class of eligible international emissions units for a designated 6-month period, the adjusted reference price for the class of eligible international emissions units for the designated 6-month period is worked out using the formula:

where:

designated limit percentage means the designated limit percentage for the class of eligible international emissions units for the financial year in which the designated 6-month period ends.

reference price means the reference price for the class of eligible international emissions units for the designated 6-month period.

Modifications of formula etc.

(12) If:

(a) there is a reference price for a class of eligible international emissions units for a designated 6-month period; and

(b) the reference price is higher than the average carbon unit auction price for the designated 6-month period;

then:

(c) the adjusted reference price for the class of eligible international emissions units for the designated 6-month period is to be disregarded for the purposes of the total of adjusted reference prices component of the formula in subsection (2); and

(d) the designated limit percentage for the class of eligible international emissions units for the financial year in which the designated 6-month period ends is to be disregarded for the purposes of the total of designated limit percentages component of the formula in subsection (2).

(13) If:

(a) a class of eligible international emissions units (the principal class ) is subject to a designated limit for a particular financial year; and

(b) there is a class of eligible international emissions units (the secondary class ) that:

(i) is included in the principal class; and

(ii) is subject to another designated limit for the financial year;

the designated limit percentage for the secondaryclass of eligible international emissions units for the financial year is to be disregarded for the purposes of the total of designated limit percentages component of the formula in subsection (2).

(14) If:

(a) a class of eligible international emissions units (the principal class ) is subject to a designated limit for a particular financial year; and

(b) a designated 6-month period ends in the financial year; and

(c) there is a class of eligible international emissions units (the secondary class ) that:

(i) is included in the principal class; and

(ii) is subject to another designated limit for the financial year; and

(d) the reference price for the secondaryclass of units for the designated 6-month period is greater than or equal to the reference price for the principal class of units for the designated 6-month period;

the adjusted reference price for the secondaryclass of units for the designated 6-month period is to be disregarded for the purposes of the total of adjusted reference prices component of the formula in subsection (2).

(15) For the purposes of this section, if:

(a) a class of eligible international emissions units (the principal class ) is subject to a designated limit for a particular financial year; and

(b) a designated 6-month period ends in the financial year; and

(c) there are one or more classes of eligible international emissions units (the secondary classes ) each of which:

(i) is included in the principal class; and

(ii) is subject to another designated limit for the financial year; and

(iii) has a reference price for the designated 6-month period that is less than the reference price for the principal class of units for the designated 6-month period;

the adjustedreference price for the principal class of units for the designated 6-month period is taken to be the amount worked out using the following formula (instead of the amount worked out under subsection (11)):

where:

designated limit percentage for principal class means the designated limit percentage for the principalclass of units for the financial year.

reference price for principal class meansthe reference price for the principalclass of units for the designated 6-month period.

total of designated limit percentages for secondary classes means the total of the designated limit percentages for the secondaryclasses of units for the financial year.

Interpretation

(16) For the purposes of this section, if:

(a) a particular class of eligible international emissions units is subject to a designated limit for a particular financial year; and

(b) a designated limit percentage is applicable to that designated limit;

then:

(c) the designated limit percentage is taken to be the designated limit percentage for the class of eligible international emissions units for the financial year; and

(d) the class of eligible international emissions units is taken to be subject to the designated limit percentage.

(17) For the purposes of this section, listed units form a single class of eligible international emissions units.

(18) In this section:

adjusted reference price :

(a) has the meaning given by subsection (11); and

(b) has a meaning affected by subsection (15).

class of eligible international emissions units means:

(a) the class mentioned in subsection (17); or

(b) a class specified in regulations made for the purposes of subsection 123A(1).

designated 6-month period means:

(a) the 6-month period ending at the end of May 2015; or

(b) each later 6-month period ending at the end of May; or

(c) the 6-month period ending at the end of November 2015; or

(d) each later 6-month period ending at the end of November.

listed unit has the same meaning as in section 123A.

reference price has the meaning given by subsection (5).