Nick Xenophon (SA, Independent) Share this | Hansard source

I withdraw amendment (3) on sheet 6116 because it has effectively been dealt with by Senator Birmingham’s amendment. I move amendment (4) on sheet 6116:

(4)    Schedule 1, page 63 (after line 29), after item 119, insert:

119A  At the end of Subdivision B of Division 4 of Part 2

Add:

        (1)    The regulations must provide for air source heat pump water heaters to be phased out of the scheme constituted by this Act by the end of 31 December 2012.

        (2)    For the purposes of subsection (1), the regulations must provide that, after the commencement of this section, each month the number of certificates that can be created for the installation of an air source heat pump water heater are proportionally reduced, so that no certificates can be created for such an installation after the end of 31 December 2012.

This amendment provides for electric heat pumps to be phased out of the renewable energy target by the end of 2012. I believe it is somewhat of a contradiction that electric heat pumps are eligible for renewable energy certificates. They can certainly be considered as energy efficient, but not renewable.

I know Senator Milne’s contribution on this—on a number of occasions—is that we ought to be looking at a separate energy efficiency scheme with respect to electric heat pumps in particular. I would urge the government to establish a separate energy efficiency scheme to deal with subsidising such technologies and leave the RET scheme to deal purely with renewable technologies.

I am also a realist, and I do have an alternative amendment in relation to the deeming rate for electric heat pumps. I will not be seeking to divide on this, but I would be grateful if my colleagues could indicate their views on this. I think there are some important principles at stake here with respect to electric heat pumps and whether they ought to be included in a renewable energy scheme as distinct from an energy efficiency scheme in the first place.