Lyn Allison (Victoria, Australian Democrats) Share this | Hansard source

by leave—On behalf of the Democrats I move amendments (1) to (4), (6) and (8) on sheet 5180 together:

(1)    Schedule 1, page 2 (after line 4), before item 1, insert:

1A  At the end of subsection 3(2)

Add:

; and (c) to implement cost-effective energy efficiency opportunities, noting that they will achieve cost savings.

(2)    Schedule 1, page 3 (after line 4), before item 1, insert:

1B  Section 4 (after the definition of controlling corporation)

Insert:

cost-effective, in relation to energy efficiency opportunities, meansthe benchmark for financial feasibility will generally be a payback period of up to three years. The discount rate/internal rate of return to be used in making an assessment of financial feasibility should be the current bank bill rate. For long-lived assets (more than 10 years) a full lifecycle analysis should be undertaken. The payback periods should include consideration of savings achieved through reduced energy bills, operational cost savings and enhanced productivity.

(3)    Schedule 1, page 3 (after line 4), before item, 1 insert:

1C  Section 4 (after the definition of Court)

Insert:

energy efficiency opportunities means activities that result in the reduction of energy use or the improvement of energy efficiency.

(4)    Schedule 1, page 3 (after line 4), before item 1, insert:

1D  Section 4 (after the definition of energy use threshold)

Insert:

greenhouse gas emissions includes but is not limited to the following gases: carbon dioxide, methane, nitrous oxide, hydroflurocarbons, perflurocarbons and sulfur hexafluoride.

(6)    Schedule 1, page 4 (after line 23), after item 5, insert:

5A  Paragraph 20(3)(b)

After “use”, insert “and greenhouse related emissions associated with energy use”.

(8)    Schedule 1, page 4 (after line 23), after item 5, insert:

5C After Part 7

Insert:

Part 7A—Implementation of Energy Efficiency Opportunities Assessments

23A  Implementation of the assessment plan

        (1)    The object of this section is to require registered corporations to implement assessment plans required by Part 5.

        (2)    A registered corporation must:

             (a)    implement the cost-effective energy efficiency opportunities identified in the assessment plan submitted under Part 5; and

             (b)    complete the implementation of the energy efficiency opportunities identified in the assessment plan before the expiration of the 5 year period commencing 1 July 2007.

        (3)    The extent of implementation of the energy efficiency opportunities identified in the assessment plan is a matter which inspectors authorised under Part 8 are authorised to monitor and report on.

        (4)    A registered corporation contravenes this section if it fails to comply with subsection (2).

Note:   Clause 3 of Schedule 1 provides for a civil penalty for failing to comply with this section.

These amendments are in two groups. The second group relates to the threshold participation, which I mentioned in my contribution to the second reading debate. The amendments require corporations that are within the energy use threshold to implement identified cost-effective energy efficiency opportunities when cost-effectiveness is defined as those energy efficiency opportunities with less than a four-year payback period. It should be noted, as I said in my second reading contribution, that 60 per cent of these cost-effective energy efficiency opportunities can be implemented at little or no cost at all, that a lot of these cost-effective energy efficiency opportunities will pay for themselves, on average, within 2½ years and that after this time there are accrued energy savings.

The first group of amendments relates to the objective of realising a range of national economic, social and environmental benefits to be gained from improving energy efficiency through the economy. Implementation of cost-effective energy efficiency opportunities results in gains in economic growth, consumer welfare and employment. Energy efficiency is the most cost-effective greenhouse gas abatement activity that there is. It will also ensure improved energy infrastructure utilisation and reduce energy supply costs. Energy efficiency means that you can defer new capital investment until such time as cleaner energy technologies become less expensive.

I urge the committee to support these amendments. As I said, the bill as presented to us is a minor bill but it does give us a chance to capitalise on the opportunities that energy efficiency could provide. At present corporations, despite the audits, are not taking up the measures that they could, even though the payback period is quite short. Our amendments would require them to do that. They will also reduce the threshold for participation, and I will come to that when I move the next group of amendments.