Gary Gray (Brand, Australian Labor Party, Parliamentary Secretary for Western and Northern Australia) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Renewable Energy (Electricity) (Charge) Amendment Bill 2010 amends the Renewable Energy (Electricity) (Charge) Act 2000.

Together with the related Renewable Energy (Electricity) Amendment Bill 2010 and the Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Bill 2010, it implements changes to enhance the Renewable Energy Target (RET) Scheme to separate the existing scheme into two parts—the Small-scale Renewable Energy Scheme and the Large-scale Renewable Energy Target from 1 January 2011.

Combined, the three bills further strengthen the government’s commitment to ensure that at least the equivalent of 20 per cent of Australia’s electricity is supplied from renewable sources by 2020.

This bill establishes a separate rate of shortfall charge of $65 per megawatt hour to encourage compliance with obligations to surrender renewable energy certificates created from large-scale renewable energy power generation.

The related Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Bill 2010 establishes a similar shortfall charge in relation to the obligation to surrender certificates created from the installation of small-scale renewable energy systems.

Both shortfall charges encourage compliance with the Renewable Energy Target Scheme, as liable parties who do not meet their obligations to submit certificates from small-scale or large-scale renewable sources will need to pay a charge.

The level of the shortfall penalty will be monitored to ensure it remains effective as an incentive for investment in renewable energy.

Along with the two other related bills I am introducing today, this bill represents a major step toward the transformation of the Australian economy and the building of Australia’s low pollution future. I commend it to the House.

Debate (on motion by Mrs Gash) adjourned.