Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

This amendment is not supported by the government. We are concerned that the way it is currently worded could extend beyond the factual circumstances put by the senator. There could be a range of people asserting that they are a non-commercial pilot project and who thereby seek a legislative exemption from the scheme. We do not believe that is the most sensitive or efficient way forward. We have put in place specific grant programs to provide additional assistance to these technologies. That includes the $4.5 billion Clean Energy Initiative, of which just under $2½ billion is for the CCS Flagship Program. In addition, facilities that develop the sorts of technologies which are referenced in this amendment are obviously increasingly advantaged in a world where there is a carbon price. So our policy mechanism is to put in place a carbon price and then to target assistance more effectively. The government does not support this amendment.

Question negatived.

by leave—I move government amendments (8) to (14) on sheet BE 242 together:

(8)    Clause 33, page 82 (lines 12 to 17), omit subclause (2), substitute:

Provisional emissions number

        (2)    For the purposes of this Act, that number is a provisional emissions number of the supplier for the eligible financial year.

Note:   See also section 37A, which deals with the exclusion of exported fuel.

(9)    Clause 33, page 82 (line 21) to page 83 (line 2), omit subclause (4).

(10)  Clause 35, page 85 (lines 14 to 19), omit subclause (2), substitute:

Provisional emissions number

        (2)    For the purposes of this Act, that number is a provisional emissions number of the supplier for the eligible financial year.

Note:   See also section 37A, which deals with the exclusion of exported fuel.

(11)  Clause 35, page 85 (line 23) to page 86 (line 5), omit subclause (4).

(12)  Clause 37, page 87 (lines 18 to 24), omit subclause (2), substitute:

Provisional emissions number

        (2)    For the purposes of this Act, that number is a provisional emissions number of the OTN holder for the eligible financial year in which the re-supply occurs.

Note:   See also section 37A, which deals with the exclusion of exported fuel.

(13)  Clause 37, page 87 (line 28) to page 88 (line 13), omit subclause (4).

(14)  Page 88 (after line 13), after clause 37, insert:

37A  Exclusion of exported eligible upstream fuel

Object

        (1)    The object of this section is to ensure that there is no liability under the carbon pollution reduction scheme for exported eligible upstream fuel.

Reduction of provisional emissions numbers—section 33 or 35

        (2)    If:

             (a)    under section 33 or 35, or both, a person (the supplier) has one or more provisional emissions numbers for an eligible financial year; and

             (b)    the supplier has one or more netted-out numbers for the eligible financial year;

the total of those provisional emissions numbers is to be reduced (but not below zero) by the total of those netted-out numbers.

        (3)    For the purposes of subsection (2), if:

             (a)    during an eligible financial year, the supplier supplied an amount of eligible upstream fuel to another person (the recipient); and

             (b)    as a result of the supply, the supplier has, under section 33 or 35, a provisional emissions number for the eligible financial year; and

             (c)    after the supply, the supplier or recipient exported the fuel; and

             (d)    the fuel has been entered for export (within the meaning of section 113 of the Customs Act 1901); and

             (e)    the supplier has prescribed documentary evidence to show that the fuel was exported; and

              (f)    the potential greenhouse gas emissions embodied in the amount mentioned in paragraph (a) have a carbon dioxide equivalence of a particular number of tonnes;

the number mentioned in paragraph (f) is a netted-out number of the supplier for the eligible financial year.

Reduction of provisional emissions numbers—section 37

        (4)    If:

             (a)    under section 37, a person (the OTN holder) has one or more provisional emissions numbers for an eligible financial year; and

             (b)    the OTN holder has one or more netted-out numbers for the eligible financial year;

the total of those provisional emissions numbers is to be reduced (but not below zero) by the total of those netted-out numbers.

        (5)    For the purposes of subsection (4), if:

             (a)    during an eligible financial year, the OTN holder re-supplied an amount of eligible upstream fuel to another person (the recipient); and

             (b)    as a result of the re-supply, the OTN holder has, under section 37, a provisional emissions number for the eligible financial year; and

             (c)    after the re-supply, the OTN holder or the recipient exported the fuel; and

             (d)    the fuel has been entered for export (within the meaning of section 113 of the Customs Act 1901); and

             (e)    the OTN holder has prescribed documentary evidence to show that the fuel was exported; and

              (f)    the potential greenhouse gas emissions embodied in the amount mentioned in paragraph (a) have a carbon dioxide equivalence of a particular number of tonnes;

the number mentioned in paragraph (f) is a netted-out number of the OTN holder for the eligible financial year.

The amendments are technical amendments. They are to put beyond doubt what the government previously already considered was clear in the bill. They are to put it beyond doubt because it has been raised with us that there is no liability for a person such as a coal exporter for the emissions associated with the combustion of that fuel overseas.

Question agreed to.