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This is a Bill, not an Act. For current law, see the Acts databases.


RENEWABLE ENERGY (NEW SOUTH WALES) BILL 2007





Renewable Energy (New South Wales)
Bill 2007
No     , 2007


A Bill for

An Act to establish a mandatory renewable energy target in relation to all electricity
consumed in New South Wales; and for other purposes.
Clause 1          Renewable Energy (New South Wales) Bill 2007

Part 1            Preliminary




The Legislature of New South Wales enacts:                                                 1


Part 1         Preliminary                                                                 2

  1      Name of Act                                                                       3

               This Act is the Renewable Energy (New South Wales) Act 2007.                4

  2      Commencement                                                                      5

         (1)   This Act commences on a day or days to be appointed by proclamation,        6
               subject to subsection (2).                                                  7

         (2)   If a provision of this Act has not commenced by 1 January 2008, it is       8
               taken to have commenced on that day.                                        9

  3      Definitions                                                                      10

         (1)   In this Act:                                                               11
               accredited power station means a relevant power station accredited         12
               under Division 3 of Part 2.                                                13
               arrangement means:                                                         14
                (a) any agreement, arrangement, understanding, promise or                 15
                      undertaking, whether express or implied and whether or not          16
                      enforceable, or intended to be enforceable, by legal proceedings,   17
                      and                                                                 18
               (b) any scheme, plan, proposal, action, course of action or course of      19
                      conduct.                                                            20
               business day means a day that is not a Saturday, a Sunday, or a public     21
               holiday or bank holiday throughout New South Wales.                        22
               carried forward surplus has the meaning given by section 64.               23
               certificate means a renewable energy certificate created under Division    24
               4 of Part 2.                                                               25
               certificate surrender notice means a notice issued under section 72.       26
               corresponding Act means:                                                   27
                (a) the Renewable Energy (Electricity) Act 2000 of the                    28
                      Commonwealth, or                                                    29
               (b) the Victorian Renewable Energy Act 2006 of Victoria, or                30
                (c) any Act of the Commonwealth, a State or a Territory declared by       31
                      the regulations to be an Act that corresponds to this Act.          32




Page 2
Renewable Energy (New South Wales) Bill 2007                            Clause 3

Preliminary                                                             Part 1




              corresponding regulator means:                                              1
               (a) in relation to the Renewable Energy (Electricity) Act 2000 of the      2
                     Commonwealth, the Regulator within the meaning of section            3
                     5 (1) of that Act, or                                                4
              (b) in relation to the Victorian Renewable Energy Act 2006 of               5
                     Victoria, the ESC within the meaning of that Act, or                 6
               (c) in relation to any other corresponding Act, the person or body         7
                     prescribed by the regulations.                                       8
              corresponding scheme participant means:                                     9
               (a) a person registered under a corresponding Act, or                     10
              (b) a nominated person within the meaning of a corresponding Act,          11
                     or                                                                  12
               (c) a person declared by the regulations to be a corresponding            13
                     scheme participant.                                                 14
              corresponding scheme power station means a power station that is           15
              accredited or provisionally accredited under a corresponding Act.          16
              Department means the Department of Water and Energy.                       17
              electronic signature of a person means the person's unique                 18
              identification in an electronic form that is approved by the Scheme        19
              Administrator under subsection (2).                                        20
              eligible renewable energy source has the meaning given by section 22.      21
              energy acquisition statement has the meaning given by section 67.          22
              excluded acquisition has the meaning given by section 56.                  23
              exercise a function includes perform a duty.                               24
              function includes a power, authority or duty.                              25
              GWh means gigawatt hour.                                                   26
              MW means megawatt.                                                         27
              MWh means megawatt hour.                                                   28
              NEMMCO means the National Electricity Market Management                    29
              Company Limited (ACN 072 010 327).                                         30
              nominated person, in relation to an accredited power station, means:       31
               (a) if no approvals have been given under section 48 in relation to the   32
                     accredited power station--the person who made the application       33
                     for accreditation, or                                               34
              (b) if one or more approvals have been given under that section in         35
                     relation to the accredited power station--the last person so        36
                     approved.                                                           37
              notional scheme acquisition has the meaning given by section 55.           38




                                                                              Page 3
Clause 3      Renewable Energy (New South Wales) Bill 2007

Part 1        Preliminary




           occupier, in relation to premises, includes a person present at the         1
           premises who is in apparent control of the premises.                        2
           pre-scheme capacity, in relation to an accredited power station, means      3
           that part of the capacity of the power station to generate electricity,     4
           measured in MW, that is specified by the Scheme Administrator under         5
           section 17 to be pre-scheme capacity.                                       6
           premises includes the following:                                            7
            (a) a structure, building or vehicle,                                      8
           (b) a place (whether enclosed or built on or not),                          9
            (c) a part of a thing referred to in paragraph (a) or (b).                10
           produce includes permit access to.                                         11
           protected information means information disclosed to or obtained by a      12
           corresponding regulator, or any other person exercising functions under    13
           a corresponding Act, in the course of exercising those functions.          14
           register of accredited power stations means the register of accredited     15
           power stations maintained by the Scheme Administrator under Part 9.        16
           register of applications for accredited power stations means the           17
           register of applications for accredited power stations maintained by the   18
           Scheme Administrator under Part 9.                                         19
           register of registered persons means the register of registered persons    20
           maintained by the Scheme Administrator under Part 9.                       21
           register of renewable energy certificates means the register of            22
           renewable energy certificates maintained by the Scheme Administrator       23
           under Part 9.                                                              24
           registered person means a person registered under Division 1 of Part 2.    25
           registration number has the meaning given by section 11.                   26
           relevant entity has the meaning given by section 60.                       27
           relevant power station means a power station that is a Market              28
           Generator within the meaning of the National Electricity Rules, as in      29
           force from time to time, referred to in the National Electricity (NSW)     30
           Law.                                                                       31
           renewable energy certificate shortfall has the meaning given by            32
           section 64.                                                                33
           renewable energy shortfall penalty has the meaning given by                34
           section 62.                                                                35
           renewable power percentage means the percentage fixed under                36
           section 65.                                                                37
           required GWh of electricity from eligible renewable energy sources         38
           has the meaning given by section 66.                                       39
           required renewable energy has the meaning given by section 64.             40




Page 4
Renewable Energy (New South Wales) Bill 2007                              Clause 3

Preliminary                                                               Part 1




              scheme acquisition means:                                                     1
               (a) a standard scheme acquisition, or                                        2
              (b) a notional scheme acquisition,                                            3
              but does not include an excluded acquisition.                                 4
              Scheme Administrator means a person or body appointed for the time            5
              being under this Act to exercise any of the functions of a Scheme             6
              Administrator under this Act.                                                 7
              scheme capacity, in relation to an accredited power station, means that       8
              part of the capacity of the power station to generate electricity,            9
              measured in MW, that is specified by the Scheme Administrator under          10
              section 17 to be scheme capacity.                                            11
              scheme rules means rules made by the Minister under section 113.             12
              search warrant means a warrant issued under section 104.                     13
              shortfall penalty rate for a year means the amount determined as             14
              provided for by section 63.                                                  15
              small generation unit means a device that:                                   16
               (a) generates electricity using an eligible renewable energy source,        17
                    and                                                                    18
              (b) is a Market Generator within the meaning of the National                 19
                    Electricity Rules, as in force from time to time, referred to in the   20
                    National Electricity (NSW) Law, and                                    21
               (c) is specified by the scheme rules to be a small generation unit.         22
              stakeholder, in relation to an accredited power station, means:              23
               (a) a person who operates the accredited power station (whether             24
                    alone or together with one or more other persons), or                  25
              (b) a person who owns all, or a part, of the accredited power station        26
                    (whether alone or together with one or more other persons).            27
              standard scheme acquisition has the meaning given by section 54.             28
              trade exposed electricity intensive user has the meaning given by            29
              section 114.                                                                 30
              warrant premises, in relation to a search warrant, means the premises        31
              to which the warrant relates.                                                32
              year means calendar year.                                                    33

       (2)    The Scheme Administrator may, in writing, approve an electronic form         34
              for the purposes of the definition of electronic signature in subsection     35
              (1).                                                                         36




                                                                               Page 5
Clause 4           Renewable Energy (New South Wales) Bill 2007

Part 1             Preliminary




         (3)   In this Act, a reference to a renewable energy certificate created under         1
               a corresponding Act includes a reference to a certificate, credit or other       2
               thing created under a corresponding Act that confers a similar benefit to        3
               the benefit conferred by a renewable energy certificate under this Act.          4

         (4)   Notes included in this Act do not form part of this Act.                         5

  4      Objects                                                                                6

               The objects of this Act are:                                                     7
               (a) to establish a mandatory renewable energy target in relation to all          8
                     electricity consumed in New South Wales, and                               9
               (b) to increase the consumption of renewable energy in New South                10
                     Wales which will reduce the greenhouse gas emissions                      11
                     associated with the production and use of electricity, and                12
               (c) to encourage improvement in the renewable energy industry's                 13
                     capacity to provide renewable energy at a more competitive                14
                     price.                                                                    15

  5      Outline of Act                                                                        16

         (1)   This section provides an outline of the New South Wales renewable               17
               energy target scheme established by this Act. This Act closely follows          18
               the form and structure of the Victorian renewable energy scheme                 19
               implemented under the Victorian Renewable Energy Act 2006 of                    20
               Victoria and is similar in principle to the Commonwealth renewable              21
               energy scheme implemented under the Renewable Energy (Electricity)              22
               Act 2000 of the Commonwealth.                                                   23

         (2)   The scheme facilitates the operation of a renewable energy market               24
               based on tradeable renewable energy certificates created and sold by            25
               persons who generate electricity using renewable energy sources.                26

         (3)   Certain persons who acquire electricity from the national electricity           27
               market for use in New South Wales or who generate electricity for their         28
               own use or for retail supply in New South Wales will be required to             29
               acquire a certain percentage of electricity from renewable energy               30
               sources each year.                                                              31

         (4)   To comply with that renewable energy target, it is necessary to                 32
               surrender certificates that are created by energy generators that generate      33
               electricity using renewable energy sources (such as hydro, wind and             34
               solar). If a power station generates electricity using renewable energy         35
               sources, the power station must be accredited under the Act before              36
               certificates can be created in relation to the generation of the electricity.   37
               A simplified procedure applies in relation to small generation units that       38
               use renewable energy sources.                                                   39




Page 6
Renewable Energy (New South Wales) Bill 2007                                Clause 6

Preliminary                                                                 Part 1




       (5)    Failure to surrender sufficient certificates to meet a target may result in     1
              the imposition of a penalty.                                                    2

       (6)    This section is explanatory only and does not affect any other provision        3
              of this Act, or any other Act, or any instrument made under this or any         4
              other Act.                                                                      5

  6   Crown to be bound                                                                       6

              This Act binds the Crown in right of New South Wales and, so far as the         7
              legislative power of the Parliament permits, the Crown in all its other         8
              capacities.                                                                     9

  7   Extra-territorial operation                                                            10

              It is the intention of the Parliament that the operation of this Act should,   11
              so far as possible, include operation in relation to the following:            12
               (a) land situated outside New South Wales, whether in or outside              13
                      Australia,                                                             14
              (b) things situated outside New South Wales, whether in or outside             15
                      Australia,                                                             16
               (c) acts, transactions and matters done, entered into or occurring            17
                      outside New South Wales, whether in or outside Australia,              18
              (d) things, acts, transactions and matters, (wherever situated, done,          19
                      entered into or occurring) that would, apart from this Act, be         20
                      governed or otherwise affected by the law of the Commonwealth,         21
                      another State, a Territory or a foreign country.                       22




                                                                                 Page 7
Clause 8          Renewable Energy (New South Wales) Bill 2007

Part 2            Renewable energy certificates




Part 2         Renewable energy certificates                                              1


Division 1           Registration of persons                                              2

  8      Who may apply to be registered?                                                  3

         (1)   Any person may apply to the Scheme Administrator to be registered          4
               under this Act.                                                            5

         (2)   An application must:                                                       6
               (a) be made in a form and manner required by the Scheme                    7
                    Administrator, and                                                    8
               (b) contain any information required by the Scheme Administrator,          9
                    and                                                                  10
               (c) be accompanied by any documents required by the Scheme                11
                    Administrator, and                                                   12
               (d) be accompanied by, if required by the Scheme Administrator:           13
                     (i) evidence of the kind referred to in section 9 (1), and          14
                    (ii) a relevant undertaking referred to in section 9 (2) or (3),     15
                           and                                                           16
               (e) be accompanied by the relevant fee (if any) fixed under section       17
                    112.                                                                 18

  9      Scheme Administrator may require further information and undertakings           19
         from applicants                                                                 20

         (1)   The Scheme Administrator may require from an applicant under section      21
               8 who is a corresponding scheme participant, evidence, in writing, that   22
               the applicant has agreed with the relevant corresponding regulator for    23
               the corresponding regulator to divulge or communicate to the Scheme       24
               Administrator:                                                            25
                (a) protected information concerning the applicant, or                   26
               (b) any other information held by the corresponding regulator.            27

         (2)   The Scheme Administrator may require from an applicant under section      28
               8 who is a corresponding scheme participant an undertaking, in such       29
               terms as the Scheme Administrator may require, to the effect prescribed   30
               by the regulations.                                                       31

         (3)   The Scheme Administrator may require from an applicant under section      32
               8 who is not a corresponding scheme participant an undertaking, in such   33
               terms as the Scheme Administrator may require, to the effect prescribed   34
               by the regulations.                                                       35




Page 8
Renewable Energy (New South Wales) Bill 2007                          Clause 10

Renewable energy certificates                                         Part 2




10    Scheme Administrator to approve or refuse application                            1
       (1)   If the Scheme Administrator receives an application that is properly      2
             made under section 8, the Scheme Administrator must approve the           3
             application.                                                              4

       (2)   However:                                                                  5
             (a) if the person is already registered, the Scheme Administrator         6
                 must refuse the application, or                                       7
             (b) if a person's registration has been suspended under Division 8,       8
                 the person cannot be registered during the period of the              9
                 suspension.                                                          10

11    Scheme Administrator to allocate registration numbers                           11

             If the Scheme Administrator approves an application, the Scheme          12
             Administrator must allocate the applicant a unique registration number   13
             and advise the applicant of the number.                                  14

Division 2          Provisional accreditation of power stations                       15

12    Application for provisional accreditation of a relevant power station           16

       (1)   A registered person may apply to the Scheme Administrator for            17
             provisional accreditation of the proposed components of an electricity   18
             generation system that the person considers would, if assembled, be a    19
             single relevant power station.                                           20

       (2)   An application must:                                                     21
             (a) be made in a form and manner required by the Scheme                  22
                  Administrator, and                                                  23
             (b) specify the proposed components, and                                 24
             (c) list the eligible renewable energy sources from which electricity    25
                  is intended to be generated, and                                    26
             (d) contain any other information required by the Scheme                 27
                  Administrator, and                                                  28
             (e) be accompanied by any documents required by the Scheme               29
                  Administrator, and                                                  30
             (f) be accompanied by the relevant fee (if any) fixed under section      31
                  112.                                                                32

       (3)   The Scheme Administrator may also require from an applicant under        33
             this section:                                                            34
              (a) who is a corresponding scheme participant, and                      35




                                                                           Page 9
Clause 13         Renewable Energy (New South Wales) Bill 2007

Part 2            Renewable energy certificates




               (b)   whose application is in respect of components of an electricity      1
                     generation system that are a corresponding scheme power station,     2
               evidence, in writing, that the applicant has agreed with the relevant      3
               corresponding regulator for the corresponding regulator to divulge or      4
               communicate to the Scheme Administrator:                                   5
               (c) information about the corresponding scheme power station, and          6
               (d) protected information concerning the applicant, and                    7
               (e) any other information held by the corresponding regulator.             8

         (4)   The Scheme Administrator may also require from an applicant under          9
               this section who is an applicant for accreditation or provisional         10
               accreditation under a corresponding Act evidence, in writing, that the    11
               applicant has agreed with the relevant corresponding regulator for the    12
               corresponding regulator to divulge or communicate to the Scheme           13
               Administrator:                                                            14
                (a) information about the components of the electricity generation       15
                     system that are also the subject of an application under the        16
                     corresponding Act, and                                              17
               (b) protected information concerning the applicant, and                   18
                (c) any other information held by the relevant corresponding             19
                     regulator.                                                          20

13       Scheme Administrator may give provisional accreditation                         21

         (1)   If:                                                                       22
                (a)  the Scheme Administrator receives an application that is properly   23
                     made under section 12, and                                          24
               (b) the Scheme Administrator is satisfied that some or all of the         25
                     proposed components of the system would, if assembled,              26
                     comprise a relevant power station for the purposes of this Act:     27
               the Scheme Administrator must, by written notice given to the             28
               applicant:                                                                29
                (c) specify which of those proposed components (the provisional          30
                     components) would, if assembled, comprise a relevant power          31
                     station for the purposes of this Act, and                           32
               (d) specify that, if an application is properly made under section 15     33
                     in relation to the relevant power station:                          34
                      (i) the Scheme Administrator will decide that the components       35
                            specified in that application comprise a relevant power      36
                            station for the purposes of this Act if the Scheme           37
                            Administrator is satisfied that they are not materially      38
                            different from the provisional components, and               39




Page 10
Renewable Energy (New South Wales) Bill 2007                              Clause 14

Renewable energy certificates                                             Part 2




                    (ii)   the relevant power station will be eligible for accreditation    1
                           if section 17 (3) is satisfied.                                  2

       (2)   If:                                                                            3
              (a)  the Scheme Administrator receives an application that is properly        4
                   made under section 12, and                                               5
             (b) the Scheme Administrator is not satisfied that some or all of the          6
                   proposed components of the system would, if assembled,                   7
                   comprise a relevant power station for the purposes of this Act,          8
             the Scheme Administrator must, by written notice given to the                  9
             applicant, refuse the application.                                            10

       (3)   Scheme rules made for the purposes of section 17, in relation to              11
             deciding the components of a relevant power station, apply in a               12
             corresponding way to this section.                                            13

14    Time limit for deciding applications                                                 14

       (1)   The Scheme Administrator must decide an application that is properly          15
             made under section 12 within:                                                 16
             (a) the period of 40 business days beginning on the day the Scheme            17
                  Administrator received the application, or                               18
             (b) if, before the end of that period, the Scheme Administrator and           19
                  applicant agree to a longer period--that longer period.                  20

       (2)   However, if, during the period applicable under subsection (1), the           21
             Scheme Administrator, for the purpose of deciding the application,            22
             requests information from an applicant, the period between the request        23
             and the giving of the information must be disregarded for the purpose         24
             of calculating the period applicable under subsection (1).                    25

       (3)   If the Scheme Administrator has not decided the application within the        26
             period applicable under this section, the Scheme Administrator is taken,      27
             at the end of that period, to have made a decision under section 13           28
             refusing the application.                                                     29

Division 3          Accreditation of power stations                                        30

15    Application for accreditation                                                        31

       (1)   A registered person may apply to the Scheme Administrator for                 32
             accreditation, as an accredited power station, of the components of an        33
             electricity generation system that the person considers are a single          34
             relevant power station if the person:                                         35
              (a) operates those components (whether alone or together with one            36
                    or more other persons), or                                             37




                                                                              Page 11
Clause 16         Renewable Energy (New South Wales) Bill 2007

Part 2            Renewable energy certificates




               (b)   owns all, or a part, of those components (whether alone or          1
                     together with one or more other persons).                           2

         (2)   The application must:                                                     3
               (a) be made in a form and manner required by the Scheme                   4
                     Administrator, and                                                  5
               (b) specify those components of the system that the applicant             6
                     considers are a single relevant power station, and                  7
               (c) specify each other person (if any) who:                               8
                      (i) operates those components (whether alone or together with      9
                            one or more other persons), or                              10
                     (ii) owns all, or a part, of those components (whether alone or    11
                            together with one or more other persons), and               12
               (d) list:                                                                13
                      (i) the eligible renewable energy sources from which              14
                            electricity is intended to be generated, and                15
                     (ii) the estimated average annual output from each source (in      16
                            MWh) listed under subparagraph (i), and                     17
                    (iii) the possible scheme capacity, and                             18
                    (iv) the estimated average annual output from each source (in       19
                            MWh) listed under subparagraph (i) utilising the possible   20
                            scheme capacity listed under subparagraph (iii), and        21
               (e) contain any other information required by the Scheme                 22
                     Administrator, and                                                 23
               (f) be accompanied by any documents required by the Scheme               24
                     Administrator, and                                                 25
               (g) if required by the Scheme Administrator, be accompanied by:          26
                      (i) evidence of the kind referred to in section 16 (2), and       27
                     (ii) a relevant undertaking referred to in section 16 (3) or 16    28
                            (4), and                                                    29
               (h) be accompanied by a statement in writing from each other person      30
                     (if any) specified under paragraph (c) indicating that the other   31
                     person agrees to the making of the application, and                32
                (i) be accompanied by the relevant fee (if any) fixed under section     33
                     112.                                                               34

16       Scheme Administrator may require further information and undertakings          35
         from applicants                                                                36

         (1)   Subsections (2) and (3) apply to an applicant under section 15:          37
               (a) who is a corresponding scheme participant, and                       38




Page 12
Renewable Energy (New South Wales) Bill 2007                                Clause 17

Renewable energy certificates                                               Part 2




             (b)    whose application is in respect of components of an electricity         1
                    generation system that are a corresponding scheme power station.        2

       (2)   The Scheme Administrator may require from the applicant evidence, in           3
             writing, that:                                                                 4
             (a) the applicant has agreed with the relevant corresponding                   5
                   regulator for the corresponding regulator to divulge or                  6
                   communicate to the Scheme Administrator information about the            7
                   corresponding scheme power station, and                                  8
             (b) the applicant has agreed with the relevant corresponding                   9
                   regulator for the corresponding regulator to divulge or                 10
                   communicate to the Scheme Administrator:                                11
                     (i) protected information concerning the applicant, or                12
                    (ii) any other information held by the corresponding regulator,        13
                           and                                                             14
             (c) the persons specified in the application in accordance with               15
                   section 15 (2) (c) have agreed with the applicant that they will        16
                   each agree with the relevant corresponding regulator for the            17
                   corresponding regulator to divulge or communicate to the                18
                   Scheme Administrator:                                                   19
                     (i) protected information concerning them, or                         20
                    (ii) any other information held by the corresponding regulator.        21

       (3)   The Scheme Administrator may require from the applicant an                    22
             undertaking, in such terms as the Scheme Administrator may require, to        23
             the effect prescribed by the regulations.                                     24

       (4)   The Scheme Administrator may require from an applicant under section          25
             15 who is not a corresponding scheme participant at the time of the           26
             application an undertaking, in such terms as the Scheme Administrator         27
             may require, to the effect prescribed by the regulations.                     28

17    Scheme Administrator to decide certain matters                                       29

       (1)   If the Scheme Administrator receives an application that is properly          30
             made under section 15, the Scheme Administrator must:                         31
              (a) decide, in accordance with the scheme rules, which components            32
                    of the system comprise a relevant power station for the purposes       33
                    of this Act, and                                                       34
             (b) decide whether the relevant power station is eligible for                 35
                    accreditation.                                                         36
             Note. A decision under subsection (1) (a) may be varied: see Division 10.     37




                                                                                 Page 13
Clause 17         Renewable Energy (New South Wales) Bill 2007

Part 2            Renewable energy certificates




         (2)   If:                                                                           1
                (a)  the Scheme Administrator gave a person a notice under section           2
                     13 (1) in relation to the relevant power station, and                   3
               (b) the Scheme Administrator is satisfied that the components                 4
                     specified in the application under section 15 are not materially        5
                     different from the provisional components specified under               6
                     section 13 (1),                                                         7
               the Scheme Administrator must decide, under subsection (1) (a) of this        8
               section, that the components specified in the application under               9
               section 15 comprise a relevant power station for the purposes of this        10
               Act.                                                                         11

         (3)   A relevant power station is eligible for accreditation if:                   12
               (a) some or all of the electricity generated by the relevant power           13
                     station is generated from an eligible renewable energy source,         14
                     and                                                                    15
               (b) the relevant power station satisfies any requirements specified in       16
                     the scheme rules.                                                      17

         (4)   However, a relevant power station is not eligible for accreditation if the   18
               Scheme Administrator is satisfied that a previous decision under             19
               subsection (1) (a) should be varied to include the components of the         20
               system specified in the application for accreditation.                       21

         (5)   If the Scheme Administrator decides that the relevant power station is       22
               eligible for accreditation, the Scheme Administrator must also specify       23
               in its decision:                                                             24
                (a) in accordance with subsection (6), the pre-scheme capacity (if          25
                       any) of the relevant power station, and                              26
               (b) in accordance with subsection (7), the scheme capacity of the            27
                       relevant power station, and                                          28
                (c) any energy sources used by the relevant power station that are not      29
                       eligible renewable energy sources.                                   30

         (6)   The Scheme Administrator must, in accordance with the scheme rules,          31
               specify that part of the power station's capacity (if any) that has been     32
               utilised to generate electricity on a commercial basis before 1 January      33
               2007.                                                                        34

         (7)   The Scheme Administrator must, in accordance with the scheme rules,          35
               specify the scheme capacity of the power station, being the total of the     36
               following:                                                                   37
                (a) additional capacity, being the amount (if any) by which the power       38
                     station's capacity to generate electricity, measured in MW,            39
                     exceeds the power station's pre-scheme capacity,                       40




Page 14
Renewable Energy (New South Wales) Bill 2007                               Clause 18

Renewable energy certificates                                              Part 2




             (b)    fossil fuel replacement capacity, being the amount (if any) of the       1
                    power station's capacity to generate electricity that is generated       2
                    using eligible renewable energy sources, measured in MW, and             3
                    which immediately before 1 January 2007 was generated using              4
                    fossil fuel (not being capacity that is counted under paragraph          5
                    (a)).                                                                    6

       (8)   To avoid doubt:                                                                 7
             (a) the scheme rules may provide that a relevant power station                  8
                   includes components that are integral to the operation of the             9
                   relevant power station or to the generation of electricity by the        10
                   relevant power station, and                                              11
             (b) the pre-scheme capacity for an accredited power station may be             12
                   nil, and                                                                 13
             (c) a power station's fossil fuel replacement capacity may be counted          14
                   towards scheme capacity even though it is not additional                 15
                   capacity.                                                                16

       (9)   In this section:                                                               17
             commercial basis, in relation to the generation of electricity, means the      18
             generation of electricity:                                                     19
              (a) for sale to another person for the primary purpose of earning             20
                     revenue,                                                               21
             (b) primarily for use by the person generating it or a related body            22
                     corporate.                                                             23
             fossil fuel includes materials or waste products derived from fossil fuel.     24
             related body corporate has the same meaning as in section 50 of the            25
             Corporations Act 2001 of the Commonwealth.                                     26

18    Scheme Administrator to approve or refuse application                                 27

             If the Scheme Administrator decides that a relevant power station is           28
             eligible for accreditation, the Scheme Administrator must approve the          29
             application. In any other case, the Scheme Administrator must refuse           30
             the application.                                                               31
             Note. The accreditation of an accredited power station may be suspended: see   32
             Division 11.                                                                   33

19    Time limit for deciding applications                                                  34

       (1)   The Scheme Administrator must decide an application that is properly           35
             made under section 15 within:                                                  36
             (a) the period of 40 business days beginning on the day the Scheme             37
                  Administrator received the application, or                                38




                                                                               Page 15
Clause 20         Renewable Energy (New South Wales) Bill 2007

Part 2            Renewable energy certificates




               (b)   if, before the end of that period, the Scheme Administrator and            1
                     applicant agree to a longer period--that longer period.                    2

         (2)   However, if, during the period applicable under subsection (1), the              3
               Scheme Administrator, for the purpose of deciding the application,               4
               requests information from an applicant, the period between the request           5
               and the giving of the information must be disregarded for the purpose            6
               of calculating the period applicable under subsection (1).                       7

         (3)   If the Scheme Administrator has not decided the application within the           8
               period applicable under subsection (1), the Scheme Administrator is              9
               taken, at the end of that period, to have made a decision under section 18      10
               refusing the application.                                                       11

20       Nominated person for accredited power station                                         12

               If the Scheme Administrator approves an application, the applicant              13
               becomes the nominated person for the accredited power station.                  14
               Note. The nominated person for the accredited power station is able to create   15
               certificates for electricity generated by the accredited power station: see     16
               section 26. The nominated person may change: see Division 9.                    17

21       Scheme Administrator to allocate identification codes                                 18

               If the Scheme Administrator approves an application, the Scheme                 19
               Administrator must allocate the accredited power station a unique               20
               identification code and advise the applicant of the code.                       21

22       What is an eligible renewable energy source?                                          22

               The following energy sources are eligible renewable energy sources:             23
               (a) hydro,                                                                      24
               (b) wave,                                                                       25
               (c) tide,                                                                       26
               (d) ocean,                                                                      27
               (e) wind,                                                                       28
               (f) solar (other than solar energy used in a device primarily for               29
                     heating water),                                                           30
               (g) geothermal-aquifer,                                                         31
               (h) hot dry rock,                                                               32
                (i) energy crops,                                                              33
                (j) wood waste,                                                                34
               (k) agricultural waste,                                                         35
                (l) waste from processing of agricultural products,                            36




Page 16
Renewable Energy (New South Wales) Bill 2007                             Clause 23

Renewable energy certificates                                            Part 2




             (m)     food waste,                                                           1
              (n)    food processing waste,                                                2
              (o)    bagasse,                                                              3
              (p)    black liquor,                                                         4
              (q)    biomass-based components of municipal solid waste,                    5
              (r)    landfill gas,                                                         6
              (s)    sewage gas and biomass-based components of sewage,                    7
               (t)   any other energy source specified by the regulations under            8
                     section 24.                                                           9

23    What is not an eligible renewable energy source?                                    10

       (1)   Despite section 22, the following energy sources are not eligible            11
             renewable energy sources:                                                    12
              (a) fossil fuel,                                                            13
             (b) materials or waste products derived from fossil fuel,                    14
              (c) native forest bio-material.                                             15

       (2)   In this section:                                                             16
             native forest bio-material means the bio-material comprised in any tree,     17
             of a species that is indigenous to Australia, other than:                    18
              (a) bio-material obtained from a plantation in New South Wales in           19
                    the course of operations that are authorised under the Plantations    20
                    and Reafforestation Act 1999 or in the course of operations that      21
                    do not require the plantation to be authorised under that Act, or     22
             (b) bio-material obtained from a plantation outside of New South             23
                    Wales in the course of operations that are authorised under an Act    24
                    of another State or a Territory that is declared by the regulations   25
                    to be an Act that corresponds to the Plantations and                  26
                    Reafforestation Act 1999, or                                          27
              (c) sawdust or other sawmill waste, or                                      28
             (d) waste arising from wood processing or the manufacture of                 29
                    wooden products, other than waste arising from activities (such       30
                    as woodchipping or the manufacture of railway sleepers) carried       31
                    out at the location at which the tree is harvested.                   32

24    Specification of energy sources as eligible renewable energy sources                33

             The regulations may specify an energy source (other than an energy           34
             source specified in section 22 (a)-(s) or section 23) to be an eligible      35
             renewable energy source.                                                     36




                                                                             Page 17
Clause 25         Renewable Energy (New South Wales) Bill 2007

Part 2            Renewable energy certificates




25       Scheme rules may provide for or in relation to meaning of energy                     1
         sources                                                                              2

         (1)   For the purposes of this Act, the scheme rules may provide that an             3
               energy source referred to in section 22 or 23 (other than an energy            4
               source specified in section 23 (1) (c)) has the meaning specified in the       5
               scheme rules.                                                                  6

         (2)   For the purposes of this Act, the scheme rules may make provision for          7
               and in relation to limiting the meaning of an energy source referred to        8
               in section 22.                                                                 9

         (3)   For the purposes of this Act, the scheme rules may make provision for         10
               and in relation to extending the meaning of an energy source referred to      11
               in section 23.                                                                12

Division 4           Creation of certificates                                                13

Subdivision 1            Electricity generation                                              14

26       Creating certificates for additional renewable electricity                          15

         (1)   The nominated person for an accredited power station may create a             16
               certificate for each whole MWh of electricity generated by the power          17
               station utilising scheme capacity:                                            18
               (a) on and from the day on which this section commences or the day            19
                      on which electricity is first generated utilising scheme capacity      20
                      (whichever is the later), and                                          21
               (b) subject to sections 28 and 37, until the day that is 15 elapsed           22
                      years after the day referred to in paragraph (a).                      23

         (2)   A certificate must not be created in respect of a whole MWh of                24
               electricity generated partly in one year and partly in the following year     25
               utilising scheme capacity.                                                    26

         (3)   If the amount of electricity generated by an accredited power station         27
               during a year utilising scheme capacity is less than 1 MWh but greater        28
               than or equal to 0.5 MWh, the nominated person for the power station          29
               may create 1 certificate in respect of the electricity generated during the   30
               year.                                                                         31

         (4)   The amount of electricity generated by an accredited power station            32
               utilising scheme capacity is to be worked out in accordance with the          33
               scheme rules.                                                                 34

         (5)   Electricity is to be excluded from all calculations under this section:       35
               (a) to the extent that the electricity was generated using any energy         36
                      sources that are not eligible renewable energy sources, or             37




Page 18
Renewable Energy (New South Wales) Bill 2007                                  Clause 27

Renewable energy certificates                                                 Part 2




             (b)    to the extent that the electricity was generated during any period        1
                    of suspension of the accreditation of the accredited power station        2
                    under Division 11.                                                        3

       (6)   The nominated person for an accredited power station must not create             4
             any certificates during any period of suspension of the person's                 5
             registration under Division 8.                                                   6
             Note. See also section 38 (Improper creation of certificates).                   7

27    When certificates may be created                                                        8

             A certificate may be created at any time after the generation of the final       9
             part of the electricity in relation to which it is created and before the end   10
             of the year after the year of generation.                                       11
             Note. For the offence related to the improper creation of certificates, see     12
             section 38.                                                                     13

28    Certificates must not be created if certificates already created under                 14
      other scheme                                                                           15

       (1)   A nominated person must not create a certificate for electricity                16
             generated if:                                                                   17
             (a) a renewable energy certificate under a corresponding Act has                18
                   been created in respect of the generation of that electricity, or         19
             (b) an abatement certificate under Part 8A of the Electricity Supply            20
                   Act 1995 has been created in respect of the generation of that            21
                   electricity, or                                                           22
             (c) a certificate, credit or other thing conferring a similar benefit to        23
                   the benefit conferred by a renewable energy certificate under this        24
                   Act has been created in respect of the generation of that                 25
                   electricity under a voluntary renewable energy scheme.                    26

       (2)   A nominated person, in relation to a power station, must not create a           27
             certificate for electricity generated by the power station if the electricity   28
             was generated utilising scheme capacity (within the meaning of a                29
             corresponding Act) specified in relation to that power station under the        30
             corresponding Act and more than 15 years have elapsed since the day             31
             on which electricity was first generated utilising that scheme capacity.        32

       (3)   The scheme rules may make further provision for scheme switching                33
             (that is, the participation in the scheme provided for by this Act by a         34
             person who is a participant in another renewable energy scheme).                35

       (4)   Without limiting subsection (3), the scheme rules may prohibit or               36
             restrict the creation of certificates under this Act by a person who is a       37
             participant in another renewable energy scheme.                                 38




                                                                                  Page 19
Clause 29         Renewable Energy (New South Wales) Bill 2007

Part 2            Renewable energy certificates




         (5)   For the purposes of this section, a person is a participant in another        1
               renewable energy scheme if:                                                   2
               (a) the person has been or is a corresponding scheme participant, or          3
               (b) the person has been or is a participant in the scheme provided for        4
                     by Part 8A of the Electricity Supply Act 1995 or a voluntary            5
                     renewable energy scheme, or                                             6
               (c) the power station in relation to which the person is a nominated          7
                     person is a corresponding scheme power station or is or has been        8
                     accredited under a scheme referred to in paragraph (b).                 9

         (6)   For the purposes of this section, voluntary renewable energy scheme          10
               means a voluntary scheme to encourage the generation or consumption          11
               (or both) of renewable energy that is determined by the Minister, by         12
               order published in the Gazette, to be a voluntary renewable energy           13
               scheme for the purposes of this Act.                                         14

29       Electricity generation returns                                                     15

         (1)   The nominated person for an accredited power station must give an            16
               electricity generation return for a year to the Scheme Administrator on      17
               or before:                                                                   18
               (a) 14 March in the following year, or                                       19
               (b) any later day allowed by the Scheme Administrator.                       20

         (2)   The return must include details of:                                          21
               (a) the amount of electricity generated by the power station during          22
                     the year utilising scheme capacity, and                                23
               (b) the amount of that electricity that was generated during the year        24
                     using eligible renewable energy sources, and                           25
               (c) the number of certificates created during the year in respect of the     26
                     electricity generated by the power station during the year utilising   27
                     scheme capacity, and                                                   28
               (d) the number of certificates created during the year in respect of         29
                     any electricity generated by the power station during the previous     30
                     year utilising scheme capacity, and                                    31
               (e) any other information specified by the scheme rules.                     32

         (3)   A return must also be audited in accordance with the scheme rules            33
               before it is given to the Scheme Administrator.                              34

         (4)   An electricity generation return is not required in relation to a year in    35
               which a power station was not accredited.                                    36




Page 20
Renewable Energy (New South Wales) Bill 2007                               Clause 30

Renewable energy certificates                                              Part 2




Subdivision 2          Small generation units                                                 1

30    When a certificate may be created                                                       2

       (1)   If a small generation unit is installed on or after 1 January 2007,              3
             certificates may be created on or from the day on which the small                4
             generation unit is installed or the day on which this section commences          5
             (whichever is the later).                                                        6

       (2)   The scheme rules may make provision in relation to the time at which a           7
             small generation unit is taken to have been installed.                           8

       (3)   The scheme rules may make provision in relation to:                              9
             (a) the time when a right to create certificates in relation to a small         10
                   generation unit arises, and                                               11
             (b) the period within which certificates may be created in relation to          12
                   a small generation unit.                                                  13

31    How many certificates may be created                                                   14

             The number of certificates (each representing 1 MWh) that may be                15
             created in relation to a small generation unit is to be determined in           16
             accordance with the scheme rules.                                               17

32    Who may create a certificate?                                                          18

       (1)   The owner of the small generation unit at the time that a right to create       19
             a certificate or certificates arises in relation to the small generation unit   20
             is entitled to create the certificate or certificates.                          21

       (2)   However, the owner may, by written notice, and in accordance with the           22
             scheme rules, assign the right to create the certificate or certificates to     23
             another person. If the owner does this, the owner is not entitled to create     24
             the certificate or certificates but the person to whom the right was            25
             assigned is entitled to create the certificate or certificates.                 26

       (3)   Despite subsections (1) and (2) a person who is not registered must not         27
             create a certificate that relates to the small generation unit.                 28

33    No other certificates to be created                                                    29

             A registered person must not create certificates under Subdivision 1 in         30
             respect of electricity generated by a small generation unit, unless an          31
             election is made under section 35 in relation to that unit.                     32




                                                                                Page 21
Clause 34         Renewable Energy (New South Wales) Bill 2007

Part 2            Renewable energy certificates




34       Certificates must not be created if certificates already created under             1
         other scheme                                                                       2

         (1)   A registered person must not create a certificate for the electricity        3
               generated by a small generation unit if:                                     4
               (a) a renewable energy certificate under a corresponding Act has             5
                     been created in respect of the generation of that electricity, or      6
               (b) an abatement certificate under Part 8A of the Electricity Supply         7
                     Act 1995 has been created in respect of the generation of that         8
                     electricity, or                                                        9
               (c) a certificate, credit or other thing conferring a similar benefit to    10
                     the benefit conferred by a renewable energy certificate under this    11
                     Act has been created in respect of the generation of that             12
                     electricity under a voluntary renewable energy scheme.                13

         (2)   The scheme rules may make further provision for scheme switching            14
               (that is, the participation in the scheme provided for by this Act by a     15
               person who is a participant in another renewable energy scheme).            16

         (3)   Without limiting subsection (2), the scheme rules may prohibit or           17
               restrict the creation of certificates under this Act by a person who is a   18
               participant in another renewable energy scheme.                             19

         (4)   For the purposes of this section, a person is a participant in another      20
               renewable energy scheme if:                                                 21
               (a) the person has been or is a corresponding scheme participant, or        22
               (b) the person has been or is a participant in the scheme provided for      23
                     by Part 8A of the Electricity Supply Act 1995 or a voluntary          24
                     renewable energy scheme, or                                           25
               (c) the small generation unit in relation to which the person is a          26
                     registered person is or has been accredited under a scheme            27
                     referred to in paragraph (b).                                         28

         (5)   In this section, voluntary renewable energy scheme means a voluntary        29
               scheme to encourage the generation or consumption (or both) of              30
               renewable energy that is determined by the Minister, by order published     31
               in the Gazette, to be a voluntary renewable energy scheme for the           32
               purposes of this Act.                                                       33

35       Election to not create certificates under this Subdivision                        34

         (1)   In this section:                                                            35
               qualifying small generation unit means a small generation unit of a         36
               kind specified in the scheme rules for the purposes of this section.        37




Page 22
Renewable Energy (New South Wales) Bill 2007                                   Clause 36

Renewable energy certificates                                                  Part 2




       (2)   The owner of a qualifying small generation unit at the time that it is               1
             installed may give the Scheme Administrator a notice in writing                      2
             electing that this Subdivision does not apply to the creation of                     3
             certificates that relate to the unit.                                                4

       (3)   The owner must make the election within the period of 20 business days               5
             beginning on the day the unit is installed and before any certificates are           6
             created under this Subdivision that relate to the unit.                              7

       (4)   If an election is made, a person must not create certificates under this             8
             Subdivision that relate to the unit.                                                 9
             Note. A person may be able to create certificates under Subdivision 1 that relate   10
             to the unit.                                                                        11

       (5)   An election must not be varied or revoked.                                          12

36    Small generation unit returns                                                              13

       (1)   If the sum of the number of certificates created by a person during a year          14
             under this Subdivision exceeds 250, the person must give a return for               15
             the year to the Scheme Administrator on or before:                                  16
              (a) 14 March in the following year, or                                             17
             (b) any later day allowed by the Scheme Administrator.                              18

       (2)   The return must include details of:                                                 19
             (a) the number of certificates the person created under this                        20
                   Subdivision during the year, and                                              21
             (b) the number of certificates the person is entitled to create under               22
                   this Subdivision because of rights assigned to the person under               23
                   section 32 (2) during the year, and                                           24
             (c) any other information specified by the scheme rules.                            25

       (3)   A return must also be audited in accordance with the scheme rules                   26
             before it is given to the Scheme Administrator.                                     27

Subdivision 3           End of right to create certificates                                      28

37    No certificates can be created on or after 1 January 2031                                  29

             No certificates can be created under:                                               30
             (a) Subdivision 1 in respect of electricity generated, or                           31
             (b) Subdivision 2 in respect of a small generation unit installed,                  32
             on or after 1 January 2031.                                                         33




                                                                                   Page 23
Clause 38         Renewable Energy (New South Wales) Bill 2007

Part 2            Renewable energy certificates




Subdivision 4            Improper creation of certificates                                         1

38       Improper creation of certificates                                                         2

         (1)   A person who is not entitled under this Act to create a certificate must            3
               not create a certificate.                                                           4
               Maximum penalty:                                                                    5
               (a) in the case of a body corporate--240 penalty units, or                          6
               (b) in the case of an individual--60 penalty units.                                 7

         (2)   In determining whether a person was not entitled to create a certificate            8
               under this Act, the fact that the certificate has been registered by the            9
               Scheme Administrator under section 41 is to be disregarded.                        10
               Note. This ensures that a person cannot raise as relevant evidence the fact that   11
               a certificate has been registered.                                                 12

Division 5            Form and registration of certificates                                       13

39       Form and content of certificates--accredited power stations                              14

         (1)   Certificates under Subdivision 1 of Division 4 are to be created in an             15
               electronic form approved in writing by the Scheme Administrator.                   16

         (2)   Each certificate is to contain:                                                    17
               (a) a unique identification code, and                                              18
               (b) the electronic signature of the registered person who created the              19
                     certificate, and                                                             20
               (c) the date on which the final part of the electricity was generated,             21
                     and                                                                          22
               (d) details of the eligible renewable energy source or sources of that             23
                     electricity, and                                                             24
               (e) the date on which the certificate was created.                                 25

         (3)   A certificate's unique identification code is to consist of the following          26
               in the following order:                                                            27
                (a) the registered person's registration number,                                  28
               (b) the accredited power station's identification code,                            29
                (c) the year,                                                                     30
               (d) a number in an unbroken sequence, that is used for all certificates            31
                      issued in respect of electricity generated by the accredited power          32
                      station in that year, that starts at one and has increments of one.         33




Page 24
Renewable Energy (New South Wales) Bill 2007                              Clause 40

Renewable energy certificates                                             Part 2




40    Form and content of certificates--small generation units                              1
       (1)   Certificates under Subdivision 2 of Division 4 are to be created in an         2
             electronic form approved in writing by the Scheme Administrator.               3

       (2)   Each certificate is to contain:                                                4
             (a) a unique identification code, and                                          5
             (b) the electronic signature of the registered person who created the          6
                   certificate, and                                                         7
             (c) the date on which the small generation unit concerned was                  8
                   installed, and                                                           9
             (d) details of the eligible renewable energy source in respect of             10
                   which the certificate was created, and                                  11
             (e) the date on which the certificate was created.                            12

       (3)   A certificate's unique identification code is to consist of the following     13
             in the following order:                                                       14
              (a) the registered person's registration number, and                         15
             (b) a number in an unbroken sequence that is used for all certificates        16
                    created by the registered person in that year and that starts at one   17
                    and has increments of one.                                             18

41    Certificates must be registered                                                      19

       (1)   A certificate is not valid until it has been registered by the Scheme         20
             Administrator.                                                                21

       (2)   If the Scheme Administrator is notified that a certificate has been           22
             created, the Scheme Administrator must decide whether the certificate         23
             is eligible for registration.                                                 24

       (3)   A certificate is not eligible for registration unless the Scheme              25
             Administrator has been paid the relevant fee (if any) fixed under section     26
             112 for the registration of the certificate.                                  27

       (4)   If the Scheme Administrator decides that a certificate is eligible for        28
             registration, the Scheme Administrator must create an entry for the           29
             certificate in the register of renewable energy certificates and record the   30
             person who created the certificate as the owner of the certificate.           31

       (5)   If the Scheme Administrator decides that a certificate is not eligible for    32
             registration, or has been improperly created, the Scheme Administrator        33
             must:                                                                         34
              (a) not register the certificate, and                                        35
             (b) notify the person who created the certificate.                            36




                                                                              Page 25
Clause 42         Renewable Energy (New South Wales) Bill 2007

Part 2            Renewable energy certificates




         (6)   The Scheme Administrator may at any time (whether before or after the               1
               registration of a certificate) require the person who created the                   2
               certificate to provide to the Scheme Administrator a written statement              3
               containing such information as the Scheme Administrator requires in                 4
               connection with the creation of the certificate. The person who created             5
               the certificate must provide the statement within the period (not being a           6
               period of less than 10 business days) specified by the Scheme                       7
               Administrator.                                                                      8

Division 6            Transfer of certificates                                                     9

42       Certificates may be transferred                                                          10

         (1)   Certificates that have been registered under section 41 may be                     11
               transferred to any person.                                                         12

         (2)   To avoid doubt, a certificate may be transferred to a person who does              13
               not acquire the electricity generated to which the certificate relates.            14

43       Scheme Administrator to be notified                                                      15

         (1)   The Scheme Administrator must be notified of each transfer of a                    16
               certificate.                                                                       17

         (2)   The notification must be by electronic transmission in the manner                  18
               specified, in writing, by the Scheme Administrator.                                19

         (3)   The notification must be accompanied by the relevant fee (if any) fixed            20
               under section 112.                                                                 21

         (4)   When the Scheme Administrator is notified, the Scheme Administrator                22
               must alter the register of certificates to show the transferee as the owner        23
               of the certificate.                                                                24

Division 7            Retirement of certificates                                                  25

44       Owner may surrender certificate                                                          26

         (1)   The owner of a certificate may surrender the certificate to the Scheme             27
               Administrator under this section.                                                  28
               Note 1. The register of renewable energy certificates must contain the name of     29
               the current owner of each certificate.                                             30
               Note 2. Certificates must also be surrendered under section 67 and may also        31
               be required to be surrendered in accordance with a certificate surrender notice,   32
               or under section 73 or 74.                                                         33

         (2)   The owner of a certificate must, at the same time, give the Scheme                 34
               Administrator reasons, in writing, why the owner is surrendering the               35
               certificate.                                                                       36




Page 26
Renewable Energy (New South Wales) Bill 2007                                Clause 45

Renewable energy certificates                                               Part 2




       (3)   A certificate surrendered under this section must not be included in an           1
             energy acquisition statement.                                                     2

45    Retirement of certificates                                                               3

       (1)   If a certificate is surrendered under section 44 or 67, or in compliance          4
             with a surrender certificate notice or an order under section 73 or 74, the       5
             certificate ceases to be valid.                                                   6

       (2)   On a certificate ceasing to be valid, the Scheme Administrator must               7
             alter the entry relating to the certificate in the register of certificates to    8
             show that the certificate is no longer valid.                                     9

Division 8          Suspension of registration                                                10

46    Suspension of registration--conviction for improper creation of                         11
      certificates                                                                            12

       (1)   If a registered person has been convicted of an offence under section 38,        13
             the Scheme Administrator may suspend the person's registration for               14
             such period (not exceeding 2 years) as the Scheme Administrator                  15
             considers appropriate in all of the circumstances.                               16

       (2)   If a person whose registration has previously been suspended under               17
             subsection (1) is convicted of another offence under section 38, the             18
             Scheme Administrator may suspend the person's registration for such              19
             period (including permanently) as the Scheme Administrator considers             20
             appropriate in all of the circumstances.                                         21

47    Suspension of registration--other grounds                                               22

       (1)   The Scheme Administrator may, by written notice, suspend the                     23
             registration of a registered person if the Scheme Administrator believes         24
             on reasonable grounds that the person:                                           25
              (a) has committed an offence against this Act, or                               26
             (b) has breached an undertaking given to the Scheme Administrator                27
                    under Division 1.                                                         28

       (2)   A registration that is suspended under subsection (1) is suspended for           29
             such period (not exceeding 12 months) as the Scheme Administrator                30
             considers appropriate in all of the circumstances. That period must be           31
             specified in the notice.                                                         32

       (3)   The Scheme Administrator may, by written notice, suspend the                     33
             registration of a registered person if the registration was obtained             34
             improperly.                                                                      35




                                                                                 Page 27
Clause 48         Renewable Energy (New South Wales) Bill 2007

Part 2            Renewable energy certificates




         (4)   A registration that is suspended under subsection (3) is suspended for                 1
               such period (including permanently) as the Scheme Administrator                        2
               considers appropriate in all of the circumstances. That period must be                 3
               specified in the notice.                                                               4

Division 9            Changing the nominated person for an accredited                                 5
                      power station                                                                   6

48       Changing the nominated person for an accredited power station                                7

         (1)   A registered person who is a stakeholder in relation to an accredited                  8
               power station may apply to the Scheme Administrator for approval to                    9
               become the nominated person for the power station.                                    10
               Note. The nominated person is able to create certificates in respect of electricity   11
               generated by the power station--see section 26.                                       12

         (2)   The application must:                                                                 13
               (a) be made in a form and manner required by the Scheme                               14
                     Administrator, and                                                              15
               (b) contain any information required by the Scheme Administrator,                     16
                     and                                                                             17
               (c) be accompanied by any documents required by the Scheme                            18
                     Administrator, and                                                              19
               (d) if required by the Scheme Administrator, be accompanied by:                       20
                      (i) evidence of the kind referred to in section 16 (2), and                    21
                     (ii) an undertaking in the form of a relevant undertaking                       22
                            referred to in section 16 (3) or 16 (4), and                             23
               (e) be accompanied by a statement in writing from each other                          24
                     stakeholder indicating that the other stakeholder agrees to the                 25
                     making of the application, and                                                  26
               (f) be accompanied by the relevant fee (if any) fixed under section                   27
                     112.                                                                            28

         (3)   If the Scheme Administrator receives an application that is properly                  29
               made, the Scheme Administrator must, by written notice, approve the                   30
               applicant as the nominated person for the accredited power station.                   31

         (4)   Otherwise, the Scheme Administrator must refuse to so approve the                     32
               applicant and must notify the applicant accordingly.                                  33

         (5)   For the purposes of subsection (2) (d) (i) and (ii) section 16 applies to             34
               an application under this section as if:                                              35
               (a) a reference in that section to the applicant were a reference to an               36
                     applicant under this section, and                                               37




Page 28
Renewable Energy (New South Wales) Bill 2007                            Clause 49

Renewable energy certificates                                           Part 2




             (b)    in section 16 (2) (c), a reference to persons specified in the        1
                    application under section 15 (2) (c) were a reference to other        2
                    stakeholders.                                                         3

Division 10         Varying what constitutes a power station                              4

49    Varying what constitutes an accredited power station                                5

       (1)   The Scheme Administrator may, by written notice, vary a decision             6
             under section 17 (1) (a). The Scheme Administrator may do so only in         7
             relation to an accredited power station.                                     8

       (2)   The Scheme Administrator may only do so upon application by the              9
             nominated person for the accredited power station.                          10

       (3)   The application must:                                                       11
             (a) be made in a form and manner required by the Scheme                     12
                   Administrator, and                                                    13
             (b) contain any information required by the Scheme Administrator,           14
                   and                                                                   15
             (c) be accompanied by any documents required by the Scheme                  16
                   Administrator, and                                                    17
             (d) be accompanied by the relevant fee (if any) under section 112.          18

       (4)   If the Scheme Administrator refuses the application, the Scheme             19
             Administrator must notify, in writing, the applicant accordingly.           20

Division 11         Suspending the accreditation of a relevant power                     21
                    station                                                              22

50    Suspending the accreditation of a relevant power station--                         23
      interconnected power stations                                                      24

       (1)   The Scheme Administrator may, by written notice, suspend the                25
             accreditation of an accredited power station if:                            26
             (a) the power station is part of a group of interconnected power            27
                   stations, and                                                         28
             (b) at any time one or more of the power stations (an excess station)       29
                   in the group generates electricity utilising its scheme capacity,     30
                   and                                                                   31
             (c) the Scheme Administrator is satisfied that at the time the excess       32
                   station generates electricity utilising its scheme capacity (the      33
                   relevant time), one or more of the power stations (a shortfall        34
                   station) in the group generates less electricity than it would have   35
                   generated but for a gaming arrangement, and                           36




                                                                            Page 29
Clause 51         Renewable Energy (New South Wales) Bill 2007

Part 2            Renewable energy certificates




               (d)    the Scheme Administrator is satisfied that more certificates were           1
                      able to be created in relation to electricity generated at the              2
                      relevant time than would have been able to be created but for the           3
                      gaming arrangement.                                                         4

         (2)   The accreditation is suspended for such period (including permanently)             5
               as the Scheme Administrator considers appropriate in all of the                    6
               circumstances. That period must be specified in the notice.                        7
               Note. Any electricity generated by the power station while its accreditation is    8
               suspended is to be excluded from all calculations under section 26--see            9
               section 26 (5).                                                                   10

         (3)   Two or more power stations form a group of interconnected power                   11
               stations if:                                                                      12
               (a) each power station is able to generate electricity utilising a                13
                      particular supply (the relevant supply) of an eligible renewable           14
                      energy source, and                                                         15
               (b) each of the power stations is owned or operated by the same                   16
                      person (whether alone or together with another person).                    17

         (4)   In deciding whether or not to suspend the accreditation of an accredited          18
               power station under subsection (1), the Scheme Administrator must                 19
               have regard to:                                                                   20
                (a) any relevant information available that demonstrates whether or              21
                     not the group of interconnected power stations generated less               22
                     electricity than it would have but for a gaming arrangement, and            23
               (b) any matter specified in the scheme rules for the purposes of this             24
                     subsection.                                                                 25

         (5)   The Scheme Administrator may have regard to such other matters as it              26
               thinks appropriate.                                                               27

         (6)   In this section:                                                                  28
               gaming arrangement means an arrangement to coordinate the amount                  29
               of electricity generated by each power station in a group of                      30
               interconnected power stations utilising the relevant supply for the               31
               primary purpose of allowing more certificates to be created than would            32
               have been able to be created but for the arrangement.                             33

51       Suspending the accreditation of a power station--other grounds                          34

         (1)   The Scheme Administrator may, by written notice, suspend the                      35
               accreditation of an accredited power station if:                                  36
               (a) an electricity generation return for a year, in respect of the power          37
                     station, has not been given to the Scheme Administrator in                  38
                     accordance with section 29, or                                              39




Page 30
Renewable Energy (New South Wales) Bill 2007                                 Clause 52

Renewable energy certificates                                                Part 2




             (b)    the Scheme Administrator believes on reasonable grounds that                1
                    the nominated person in relation to the accredited power station,           2
                    has breached an undertaking given to the Scheme Administrator               3
                    under Division 3 or 9, or                                                   4
              (c)   the Scheme Administrator believes on reasonable grounds that                5
                    the power station is being operated in contravention of a law of            6
                    New South Wales, the Commonwealth, another State or a                       7
                    Territory.                                                                  8

       (2)   An accreditation that is suspended under subsection (1) (a) is suspended           9
             until the return is given to the Scheme Administrator in accordance with          10
             section 29. The notice must include a statement to that effect.                   11

       (3)   An accreditation that is suspended under subsection (1) (b) is suspended          12
             for such period (including permanently) as the Scheme Administrator               13
             considers appropriate in all of the circumstances. That period must be            14
             specified in the notice.                                                          15

       (4)   An accreditation that is suspended under subsection (1) (c) is suspended          16
             until the Scheme Administrator believes on reasonable grounds that the            17
             power station is not being operated in contravention of that law. The             18
             notice must include a statement to that effect.                                   19
             Note. Any electricity generated by the power station while its accreditation is   20
             suspended under this section is to be excluded from all calculations under        21
             section 26: see section 26 (5).                                                   22

52    Suspending the accreditation of a power station--regulations                             23

       (1)   The regulations may specify other circumstances in which the Scheme               24
             Administrator may suspend the accreditation of an accredited power                25
             station.                                                                          26

       (2)   If a circumstance specified under subsection (1) arises, the Scheme               27
             Administrator may, by written notice, suspend the accreditation of an             28
             accredited power station.                                                         29

       (3)   An accreditation that is suspended under subsection (2) is suspended for          30
             such period (including permanently) as the Scheme Administrator                   31
             considers appropriate in all of the circumstances. That period must be            32
             specified in the notice.                                                          33
             Note. Any electricity generated by the power station while its accreditation is   34
             suspended under this section is to be excluded from all calculations under        35
             section 26--see section 26 (5).                                                   36




                                                                                  Page 31
Clause 53         Renewable Energy (New South Wales) Bill 2007

Part 2            Renewable energy certificates




Division 12          Varying pre-scheme capacity and scheme                                1
                     capacity                                                              2

53       Varying pre-scheme capacity and scheme capacity                                   3

         (1)   The Scheme Administrator may, by written notice, vary the pre-scheme        4
               capacity or scheme capacity for an accredited power station.                5

         (2)   The Scheme Administrator may do so only on an application by the            6
               nominated person for the accredited power station.                          7

         (3)   If a notice under subsection (1) increases or decreases the pre-scheme      8
               capacity or the scheme capacity (as the case requires) for an accredited    9
               power station, the notice has effect on and from the time the notice is    10
               given.                                                                     11




Page 32
Renewable Energy (New South Wales) Bill 2007                                 Clause 54

Acquisitions of electricity                                                  Part 3




Part 3         Acquisitions of electricity                                                     1

54     What is a "standard scheme acquisition"?                                                2

        (1)    An acquisition of electricity is a standard scheme acquisition if, under        3
               the acquisition, electricity is acquired by a person or body from               4
               NEMMCO, or a person or body specified by the scheme rules, for use              5
               in New South Wales.                                                             6

        (2)    If there is a standard scheme acquisition of electricity under this section,    7
               then no other acquisition in relation to that electricity is a scheme           8
               acquisition (regardless of when the other acquisition occurs).                  9

55     What is a "notional scheme acquisition"?                                               10

        (1)    A person or body that generates electricity for use by them in New             11
               South Wales is taken to have made a notional scheme acquisition of             12
               electricity at the time the person or body uses the electricity.               13

        (2)    A retail supplier (within the meaning of the Electricity Supply Act 1995)      14
               that acquires electricity other than by a standard scheme acquisition, for     15
               use in New South Wales, is taken to have made a notional scheme                16
               acquisition of electricity at the time the acquisition occurs.                 17

56     What is an "excluded acquisition"?                                                     18

               An excluded acquisition is:                                                    19
               (a) an acquisition of electricity under which the electricity that is          20
                    acquired is later acquired by NEMMCO or a person or body                  21
                    specified by the scheme rules, or                                         22
               (b) a standard scheme acquisition or a notional scheme acquisition             23
                    specified by order under section 57, or                                   24
               (c) a standard scheme acquisition or a notional scheme acquisition             25
                    specified by the regulations to be an excluded acquisition.               26

57     Specification of standard scheme acquisitions and notional scheme                      27
       acquisitions as excluded acquisitions                                                  28

        (1)    The Governor may, by order published in the Gazette, specify a                 29
               standard scheme acquisition or a notional scheme acquisition to be an          30
               excluded acquisition.                                                          31

        (2)    In specifying a standard scheme acquisition under an order under               32
               subsection (1), the Governor may specify it by reference to any one or         33
               more of the following:                                                         34
                (a) a minimum amount of electricity to which the acquisition relates,         35




                                                                                 Page 33
Clause 58         Renewable Energy (New South Wales) Bill 2007

Part 3            Acquisitions of electricity




               (b)   the end user acquiring the electricity,                                   1
               (c)   the supply points at which the electricity is used.                       2

         (3)   In specifying a notional scheme acquisition under an order under                3
               subsection (1), the Governor may specify it by reference to:                    4
                (a) a minimum amount of electricity to which the acquisition relates,          5
                     or                                                                        6
               (b) a person or body that generates electricity for use by them in New          7
                     South Wales, or                                                           8
                (c) a class of persons or bodies the members of which each generate            9
                     electricity for use by themselves in New South Wales.                    10

58       Special provision for transactions involving NEMMCO                                  11

               Despite section 56, no acquisition of electricity by NEMMCO is a               12
               scheme acquisition.                                                            13

59       Scheme rules to determine amount of electricity acquired                             14

         (1)   The amount of electricity acquired under a scheme acquisition is to be         15
               determined in accordance with the scheme rules.                                16

         (2)   For the purposes of subsection (1), electricity used for the primary           17
               purpose of generating, transmitting or distributing electricity is not to be   18
               taken into account.                                                            19




Page 34
Renewable Energy (New South Wales) Bill 2007                             Clause 60

Renewable energy certificate shortfall                                   Part 4




Part 4        Renewable energy certificate shortfall                                       1


Division 1           Prohibition of renewable energy certificate                           2
                     shortfall                                                             3

60     Who is a "relevant entity"?                                                         4

              A person who makes a scheme acquisition of electricity is called a           5
              relevant entity.                                                             6

61     Prohibition of renewable energy certificate shortfall                               7

       (1)    A relevant entity must not have a renewable energy certificate shortfall     8
              for a year in which the relevant entity makes a scheme acquisition.          9

       (2)    Subsection (1) does not apply in the year 2031 or any year after that       10
              year.                                                                       11

       (3)    Subsection (1) does not apply in respect of a trade exposed electricity     12
              intensive user.                                                             13

62     Civil penalty for shortfall                                                        14

       (1)    A relevant entity that has a renewable energy certificate shortfall for a   15
              year is liable to pay to the Consolidated Fund a pecuniary penalty          16
              (renewable energy shortfall penalty) determined in accordance with          17
              this section.                                                               18

       (2)    The renewable energy shortfall penalty payable by a relevant entity for     19
              a year is determined by multiplying the relevant entity's renewable         20
              energy certificate shortfall (in MWh) for that year by the shortfall        21
              penalty rate for that year.                                                 22

63     Shortfall penalty rate                                                             23

       (1)    The shortfall penalty rate is $43 per MWh as varied in accordance with      24
              this section.                                                               25

       (2)    The shortfall penalty rate for a year is the amount referred to in          26
              subsection (1) as varied in accordance with the formula:                    27


                                       B
                                   A × ---
                                         -
                                       C
              where:                                                                      28
              A is the amount referred to in subsection (1).                              29




                                                                             Page 35
Clause 64            Renewable Energy (New South Wales) Bill 2007

Part 4               Renewable energy certificate shortfall




               B is the all groups consumer price index for Melbourne published by the             1
               Australian Statistician in respect of the September quarter of the year             2
               preceding the year for which the shortfall penalty rate is being                    3
               determined.                                                                         4
               C is the all groups consumer price index for Melbourne published by the             5
               Australian Statistician in respect of the 2006 September quarter.                   6

         (3)   The Scheme Administrator must cause a notice to be published in the                 7
               Gazette specifying the shortfall penalty rate for a year, as determined in          8
               accordance with this section.                                                       9
               Note. The Melbourne consumer price index is used to retain consistency with        10
               the shortfall penalty rate imposed under the Victorian Renewable Energy Act        11
               2006 of Victoria.                                                                  12

64       Determination of renewable energy certificate shortfall                                  13

              The following steps and result show how to determine whether a                      14
              relevant entity has a renewable energy certificate shortfall for a year:            15
           Step 1. Calculate the total amount, in MWh, of electricity acquired by the             16
                    relevant entity during the year under scheme acquisitions.                    17
                        Note. Section 59 provides that the amount of electricity acquired under   18
                        a scheme acquisition is to be determined in accordance with the scheme    19
                        rules.                                                                    20
           Step 2.      Multiply the total electricity acquired by the renewable power            21
                        percentage for the year and round down to the nearest MWh                 22
                        (assuming there is more than 1 MWh). Subtract any carried                 23
                        forward surplus for the previous year. The result is the relevant         24
                        entity's required renewable energy for the year.                          25
           Step 3.      Subtract the total value, in MWh, of certificates surrendered to          26
                        the Scheme Administrator under section 67 for that year by the            27
                        relevant entity from the required renewable energy for the year.          28
           Result.      If the result is greater than zero, the relevant entity has a             29
                        renewable energy certificate shortfall for the year equal to the          30
                        result.                                                                   31

               If the result is zero or less than zero, the relevant entity does not have a       32
               renewable energy certificate shortfall for the year.                               33

               If the result is less than zero, the relevant entity has a carried forward         34
               surplus for the year.                                                              35




Page 36
Renewable Energy (New South Wales) Bill 2007                              Clause 65

Renewable energy certificate shortfall                                    Part 4




Division 2           Renewable power percentage                                             1

65     Renewable power percentage                                                           2

       (1)    The Governor may, on the recommendation of the Minister, by order             3
              published in the Gazette, fix the renewable power percentage in respect       4
              of a year after 2008.                                                         5

       (2)    In making a recommendation as to the renewable power percentage in            6
              respect of a year, the Minister must have regard to the scheme                7
              acquisitions by each relevant entity in the previous year and the required    8
              GWh of electricity from eligible renewable energy sources for that year.      9

       (3)    An order under subsection (1) fixing the renewable power percentage          10
              for a year must be made on or before 31 May of that year.                    11

       (4)    If a renewable power percentage is not fixed by order for a year, the        12
              percentage is to be calculated in accordance with the method contained       13
              in the scheme rules.                                                         14

       (5)    The renewable power percentage for 2008 is 0.576%.                           15

66     Required GWh of electricity from eligible renewable energy sources                  16

       (1)    The required GWh of electricity from eligible renewable energy sources       17
              for a year is set out in Schedule 1.                                         18

       (2)    The Governor may, by proclamation, amend Schedule 1 by:                      19
              (a) omitting from column 2 of the Schedule the figure that specifies         20
                   the required GWh for a year, and                                        21
              (b) inserting instead a new figure as the required GWh for that year.        22

       (3)    A proclamation under this section may be made only on the                    23
              recommendation of the Minister.                                              24

       (4)    The Minister may recommend the making of a proclamation under this           25
              section only if the purpose of the amendment to Schedule 1 is to             26
              increase the required GWh for a year or years, subject to subsection (5).    27

       (5)    If a change is made to the required GWh of renewable source electricity      28
              under a corresponding Act, the Minister may recommend the making of          29
              a proclamation that amends Schedule 1 for the purpose of increasing or       30
              decreasing the required GWh for a year or years.                             31

       (6)    A proclamation made under this section must be made on or before             32
              30 September in the year before the year in relation to which it has         33
              effect.                                                                      34




                                                                              Page 37
Clause 67         Renewable Energy (New South Wales) Bill 2007

Part 5            Statements and surrender of certificates




Part 5         Statements and surrender of certificates                                         1

67       Annual energy acquisition statements                                                   2

         (1)   A relevant entity that makes an acquisition of electricity under a scheme        3
               acquisition during a year must lodge an energy acquisition statement for         4
               the year on or before:                                                           5
                (a) 30 April in the following year, or                                          6
               (b) any later day allowed by the Scheme Administrator.                           7

         (2)   The statement must set out:                                                      8
               (a) the name and postal address of the relevant entity, and                      9
               (b) the amount of electricity acquired under scheme acquisitions                10
                     during the year, and                                                      11
                     Note. Section 59 provides that the amount of electricity acquired under   12
                     a scheme acquisition is to be determined in accordance with the scheme    13
                     rules.                                                                    14
               (c)   the value, in MWh, of certificates being surrendered for that year        15
                     under this section, and                                                   16
               (d)   any carried forward surplus for the previous year, and                    17
               (e)   any carried forward surplus for the current year, and                     18
               (f)   any other information specified by the scheme rules.                      19

         (3)   The statement must:                                                             20
               (a) be made in a form and manner required by the Scheme                         21
                     Administrator, and                                                        22
               (b) be accompanied by the relevant fee (if any) fixed under section             23
                     112, and                                                                  24
               (c) be signed by or on behalf of the relevant entity making the                 25
                     statement.                                                                26

         (4)   The statement must be accompanied by details of all certificates being          27
               surrendered for that year under this section.                                   28

         (5)   A certificate cannot be specified in the statement unless the relevant          29
               entity is recorded in the register of renewable energy certificates as the      30
               owner of the certificate at the time that the statement is lodged.              31

         (6)   A statement must also be audited in accordance with the scheme rules            32
               before it is lodged under this section.                                         33

         (7)   Subsection (1) does not apply in respect of a trade exposed electricity         34
               intensive user.                                                                 35




Page 38
Renewable Energy (New South Wales) Bill 2007                                Clause 68

Statements and surrender of certificates                                    Part 5




68     Fees for surrender of certificates                                                      1
       (1)    The Scheme Administrator must, by notice in writing given to the                 2
              relevant entity, advise the relevant entity:                                     3
               (a) of the number of certificates specified under section 67 (4) that           4
                    are able to be surrendered for that year, and                              5
              (b) of the relevant fee (if any) fixed under section 112 that is payable         6
                    by the relevant entity in respect of the surrender of those                7
                    certificates.                                                              8
              Note. Section 69 contains restrictions on the certificates that can be           9
              surrendered.                                                                    10

       (2)    The relevant entity must pay the fee within the period of 20 business           11
              days beginning on the day the relevant entity receives the notice under         12
              subsection (1).                                                                 13

       (3)    If the fee is unpaid at the end of that period, it is a debt due to the Crown   14
              and is recoverable by the Scheme Administrator in any court of                  15
              competent jurisdiction.                                                         16

69     Restrictions on certificates that can be surrendered                                   17

              A certificate cannot be surrendered under section 67 unless:                    18
              (a) the certificate is valid, and                                               19
              (b) the certificate was created before 31 January in the year                   20
                    following the year to which the energy acquisition statement              21
                    relates, and                                                              22
              (c) the relevant entity is recorded in the register of renewable energy         23
                    certificates as the owner of the certificate at the time that the         24
                    statement is lodged.                                                      25




                                                                                 Page 39
Clause 70         Renewable Energy (New South Wales) Bill 2007

Part 6            Civil enforcement




Part 6         Civil enforcement                                                             1


Division 1           Renewable energy shortfall penalty                                      2

70       Shortfall statement                                                                 3

         (1)   If the Scheme Administrator believes on reasonable grounds that a             4
               relevant entity is in breach of an obligation under section 61 in respect     5
               of a year, the Scheme Administrator may issue a shortfall statement to        6
               the relevant entity.                                                          7

         (2)   The shortfall statement must set out:                                         8
               (a) the name and postal address of the relevant entity, and                   9
               (b) the relevant entity's renewable energy certificate shortfall for the     10
                     year, and                                                              11
               (c) the renewable energy shortfall penalty that the relevant entity is       12
                     liable to pay under section 62, and                                    13
               (d) the manner in which that penalty is to be paid, and                      14
               (e) the time within which that penalty is to be paid, and                    15
               (f) any other information required by the scheme rules.                      16

         (3)   The shortfall statement must include a statement advising the relevant       17
               entity that if the renewable energy shortfall penalty is not paid in         18
               accordance with the shortfall notice, the Scheme Administrator may           19
               apply to a court for an order requiring the penalty to be paid.              20

71       Application for declaration and order for payment of shortfall penalty             21

         (1)   If a renewable energy shortfall penalty is not paid in accordance with a     22
               shortfall notice, the Scheme Administrator may apply to a court for:         23
                (a) a declaration that the relevant entity has contravened section 61,      24
                      and                                                                   25
               (b) an order requiring the relevant entity to pay the renewable energy       26
                      shortfall penalty.                                                    27

         (2)   If the court is satisfied that the relevant entity has contravened section   28
               61, the court may:                                                           29
                (a) make the declaration sought, and                                        30
               (b) order the relevant entity to pay to the Scheme Administrator for         31
                      payment into the Consolidated Fund the amount of the renewable        32
                      energy shortfall penalty determined in accordance with Part 4.        33

         (3)   An order made by a court under this section is taken, for the purposes of    34
               enforcement, to be an order made by the court in a civil proceeding.         35




Page 40
Renewable Energy (New South Wales) Bill 2007                            Clause 72

Civil enforcement                                                       Part 6




       (4)   In this section, a court means a Local Court, the District Court or the      1
             Supreme Court.                                                               2

       (5)   In proceedings under this section:                                           3
              (a) a Local Court is not to make an order requiring a penalty to be         4
                   paid if the amount of the penalty exceeds its jurisdictional limit     5
                   when sitting in its General Division, and                              6
             (b) the District Court is not to make an order requiring a penalty to        7
                   be paid if the amount of the penalty exceeds its jurisdictional        8
                   limit under the District Court Act 1973.                               9

Division 2          Surrender of additional certificates where                           10
                    undertaking breached                                                 11

72    Certificate surrender notice                                                       12

       (1)   If the Scheme Administrator believes on reasonable grounds that a           13
             nominated person or a registered person is in breach of an undertaking      14
             given under Division 1, 3 or 9 of Part 2 relating to the creation of        15
             certificates, the Scheme Administrator may issue a certificate surrender    16
             notice to that person.                                                      17

       (2)   The Scheme Administrator must not issue a certificate surrender notice      18
             under this section unless the Scheme Administrator has, as the case         19
             requires, suspended:                                                        20
              (a) under section 47 (1) (b), the registration of the registered person,   21
             (b) under section 51 (1) (b), the accreditation of the power station in     22
                   relation to which certificates have been created in breach of the     23
                   undertaking.                                                          24

       (3)   The notice must:                                                            25
             (a) set out the name and postal address of the registered person or         26
                   nominated person, and                                                 27
             (b) specify the number of certificates that must be surrendered to the      28
                   Scheme Administrator, and                                             29
             (c) specify the time within which the certificates specified must be        30
                   surrendered.                                                          31

       (4)   The number of certificates that must be surrendered must be equivalent      32
             to the number of certificates created and registered under this Act:        33
              (a) in the case of a breach of an undertaking under Division 1 of          34
                    Part 2--in relation to the small generation unit in relation to      35
                    which corresponding certificates were also created,                  36




                                                                            Page 41
Clause 73         Renewable Energy (New South Wales) Bill 2007

Part 6            Civil enforcement




               (b)    in the case of a breach of an undertaking under Division 3 or 9 of         1
                      Part 2--utilising the scheme capacity of the accredited power              2
                      station of the nominated person that was also utilised to create           3
                      corresponding certificates.                                                4

         (5)   The certificate surrender notice must include a statement advising the            5
               registered person or nominated person that if the number of certificates          6
               specified in the notice to be surrendered is not surrendered in                   7
               accordance with the notice, the Scheme Administrator may apply to a               8
               court for an order under section 73.                                              9

         (6)   A certificate surrendered in accordance with a certificate surrender             10
               notice is not to be counted toward a person's compliance with                    11
               section 61.                                                                      12

         (7)   To avoid doubt, it is not an excuse for a failure to comply with a               13
               certificate surrender notice that the person to whom the notice is issued        14
               is not, at the time the notice is issued, the registered owner of a sufficient   15
               number of certificates to comply with the notice.                                16

73       Application for declaration and order requiring surrender of certificates              17

         (1)   If certificates are not surrendered in accordance with a certificate             18
               surrender notice, the Scheme Administrator may apply to a court for:             19
                (a) a declaration that a registered person or nominated person has              20
                      breached an undertaking given by that person under Division 1,            21
                      3 or 9 of Part 2, and                                                     22
               (b) an order requiring the registered person or nominated person to              23
                      surrender to the Scheme Administrator the number of certificates          24
                      specified in the order.                                                   25

         (2)   If the court is satisfied that the registered person or nominated person         26
               has breached the undertaking given by the person under Division 1, 3 or          27
               9 of Part 2, the court may:                                                      28
                (a) make the declaration sought, and                                            29
               (b) order the registered person or nominated person to surrender to              30
                      the Scheme Administrator the number of certificates specified in          31
                      the order within the time specified in the order.                         32

         (3)   A certificate surrendered in accordance with an order made under this            33
               section is not to be counted toward a person's compliance with                   34
               section 61.                                                                      35

         (4)   To avoid doubt, it is not an excuse for a failure to comply with an order        36
               under this section that the person who is the subject of the order is not,       37
               at the time the order is made, the registered owner of a sufficient number       38
               of certificates to comply with the order.                                        39




Page 42
Renewable Energy (New South Wales) Bill 2007                              Clause 74

Civil enforcement                                                         Part 6




       (5)   In this section, a court means a Local Court, the District Court or the        1
             Supreme Court.                                                                 2

       (6)   In proceedings under this section:                                             3
              (a) a Local Court is not to make an order requiring the surrender of          4
                   certificates if the total value of the certificates to be surrendered    5
                   exceeds its jurisdictional limit when sitting in its General             6
                   Division, and                                                            7
             (b) the District Court is not to make an order requiring the surrender         8
                   of certificates if the total value of the certificates to be             9
                   surrendered exceeds its jurisdictional limit under the District         10
                   Court Act 1973.                                                         11

Division 3          Surrender of additional certificates following                         12
                    improper creation of certificates                                      13

74    Scheme Administrator may require surrender of certificates following                 14
      improper creation of certificates                                                    15

       (1)   The Scheme Administrator may, by order in writing to a person, require        16
             the person to surrender to the Scheme Administrator, within a period          17
             specified in the order, a number of certificates specified in the order.      18

       (2)   An order may be made against a person under this section only if the          19
             person is found guilty of an offence against section 38.                      20

       (3)   If an order is made against a person found guilty of an offence under         21
             section 38, the Scheme Administrator is to require the surrender of a         22
             number of certificates that is equivalent to the number of certificates       23
             that were created by the person in contravention of section 38 and            24
             registered under this Act.                                                    25

       (4)   A certificate surrendered under this section is not to be counted toward      26
             a person's compliance with section 61.                                        27

       (5)   A person must not fail to comply with an order under this section.            28
             Maximum penalty: 600 penalty units and an additional 1 penalty unit           29
             for each certificate that the person fails to surrender in accordance with    30
             the order.                                                                    31

       (6)   To avoid doubt, it is not an excuse for a failure to comply with an order     32
             under this section that the person who is the subject of the order is not,    33
             at the time the order is made, the registered owner of a sufficient number    34
             of certificates to comply with the order.                                     35




                                                                              Page 43
Clause 75          Renewable Energy (New South Wales) Bill 2007

Part 7             Review of Scheme Administrator decisions




Part 7         Review of Scheme Administrator decisions                                          1

75       Review of decisions                                                                     2

         (1)   An affected person in relation to a reviewable decision may request that          3
               the Scheme Administrator reconsider the decision.                                 4

         (2)   The following Table sets out the reviewable decisions and, for each               5
               decision, sets out the provision under which it is made and the affected          6
               person in relation to it.                                                         7

               Table of reviewable decisions                                                     8


               Item      For a decision...               made            the affected
                                                         under...        person is...
               1         to refuse to register a         section 10      the person
                         person
               2         in relation to an application section 13        the applicant for
                         about provisional                               provisional
                         accreditation of a relevant                     accreditation
                         power station
               3         in relation to an application section 17        the applicant for
                         about accreditation of a                        accreditation
                         relevant power station
               4         to refuse to accredit a         section 18      the applicant for
                         relevant power station                          accreditation
               5         not to register a certificate   section 41      the person who
                                                                         created the
                                                                         certificate
               6         to suspend a person's           section 46 or   the registered person
                         registration                    47
               7         to refuse to approve a          section 48      the person
                         person as the nominated
                         person for an accredited
                         power station
               8         to vary, or refuse to vary, a   section 49      the nominated
                         decision about power                            person for the
                         station components                              accredited power
                                                                         station concerned
               9         to suspend the accreditation section 50 or      the nominated
                         of an accredited power       51                 person for the power
                         station                                         station concerned




Page 44
Renewable Energy (New South Wales) Bill 2007                             Clause 75

Review of Scheme Administrator decisions                                 Part 7




              Item     For a decision...             made         the affected
                                                     under...     person is...
              10       to vary, or refuse to vary,   section 53   the nominated
                       pre-scheme or scheme                       person for the power
                       capacity                                   station concerned

      (3)    The request must be:                                                         1
             (a) in writing setting out the reasons for the request, and                  2
             (b) accompanied by the relevant fee (if any) fixed under section 112,        3
                   and                                                                    4
             (c) given to the Scheme Administrator within 30 business days after          5
                   the making of the decision.                                            6

      (4)    The Scheme Administrator must reconsider the decision and confirm,           7
             vary or set aside the decision.                                              8

      (5)    The Scheme Administrator is taken to have confirmed the decision             9
             under subsection (4) if the Scheme Administrator does not give notice       10
             in writing of the Scheme Administrator's decision under that subsection     11
             within 40 business days after the request.                                  12

      (6)    Not more than one request can be made in respect of each reviewable         13
             decision.                                                                   14




                                                                             Page 45
Clause 76         Renewable Energy (New South Wales) Bill 2007

Part 8            Role of Scheme Administrator




Part 8         Role of Scheme Administrator                                                  1

76       Appointment and role of Scheme Administrator                                        2

         (1)   The Minister is to appoint a person or body to exercise the functions of      3
               the Scheme Administrator under this Act.                                      4

         (2)   The Scheme Administrator has the functions conferred or imposed on it         5
               by or under this Act and under the terms of its appointment as Scheme         6
               Administrator.                                                                7

         (3)   Without limiting subsection (2), the Scheme Administrator's functions         8
               under this Act include:                                                       9
               (a) to register persons who may create certificates under Division 1         10
                     of Part 2, and                                                         11
               (b) to accredit relevant power stations under Divisions 2 and 3 of           12
                     Part 2, and                                                            13
               (c) to approve nominated persons under Division 3 of Part 2, and             14
               (d) to monitor and administer the creation, registration, transfer and       15
                     surrender of certificates under Divisions 4-7 of Part 2, and           16
               (e) to enforce renewable energy shortfall penalties under Part 4, and        17
                (f) to publish certain information and to report on the operations of       18
                     the Act under this Part.                                               19

         (4)   The Minister may appoint more than one person or body to exercise the        20
               functions of the Scheme Administrator and may appoint different              21
               persons or bodies to exercise particular functions of the Scheme             22
               Administrator. In such a case, a reference in this Act to the Scheme         23
               Administrator, in relation to any functions of the Scheme                    24
               Administrator, is a reference to the person or body appointed to exercise    25
               those functions.                                                             26

         (5)   A person or body appointed to exercise the functions of the Scheme           27
               Administrator may divulge or communicate any information obtained            28
               for the purposes of executing this Act to any other person or body           29
               appointed to exercise the functions of the Scheme Administrator.             30

         (6)   Anything done or omitted to be done by a person employed by the              31
               Scheme Administrator in the administration of this Act does not subject      32
               the person personally to any action, liability, claim or demand if the       33
               thing was done, or omitted to be done, in good faith for the purpose of      34
               executing this Act.                                                          35

         (7)   A Scheme Administrator may, with the approval of the Minister,               36
               delegate any of its functions (other than this power of delegation) to any   37
               other person or body.                                                        38




Page 46
Renewable Energy (New South Wales) Bill 2007                               Clause 77

Role of Scheme Administrator                                               Part 8




      (8)    The Minister is to cause a notice to be published in the Gazette advising        1
             of the appointment of a Scheme Administrator under this section.                 2

77    Scheme Administrator must publish certain information                                   3

      (1)    The Scheme Administrator must publish:                                           4
             (a) a list of each relevant entity that has a renewable energy                   5
                  certificate shortfall for a particular year, and                            6
             (b) the amount of each relevant entity's renewable energy certificate            7
                  shortfall for that year, and                                                8
             (c) the total of the renewable energy certificate shortfalls for that            9
                  year, and                                                                  10
             (d) the number of certificates created in a particular year, and                11
             (e) the number of certificates surrendered in a particular year, and            12
             (f) the number of certificates that could have been created in respect          13
                  of renewable energy generated in a particular year and the                 14
                  number that were actually created, and                                     15
             (g) any other information in accordance with the scheme rules.                  16

      (2)    Nothing in Part 12 prevents the publication of the information referred         17
             to in subsection (1).                                                           18

78    Report on operations of Act                                                            19

      (1)    The Scheme Administrator must provide to the Minister a report on the           20
             operation of this Act within the period of 4 months after 30 June in each       21
             year.                                                                           22

      (2)    If the Scheme Administrator is required to make a statutory annual              23
             report, it is sufficient compliance with subsection (1) for the Scheme          24
             Administrator to include a report on the operation of this Act in the           25
             statutory annual report it provides in each year.                               26

      (3)    Section 11 of the Annual Reports (Statutory Bodies) Act 1984 is taken           27
             to apply to a report provided under this Act that is not included in a          28
             statutory annual report as if the report were a statutory annual report         29
             (and as if a reference to the appropriate Minister were a reference to the      30
             Minister administering this Act).                                               31
             Note. Section 11 of the Annual Reports (Statutory Bodies) Act 1984 requires     32
             the appropriate Minister to cause the report to be laid before both Houses of   33
             Parliament.                                                                     34

      (4)    In this section, statutory annual report means an annual report under           35
             the Annual Reports (Departments) Act 1985 or the Annual Reports                 36
             (Statutory Bodies) Act 1984.                                                    37




                                                                                Page 47
Clause 79         Renewable Energy (New South Wales) Bill 2007

Part 9            Registers




Part 9         Registers                                                             1


Division 1           General                                                         2

79       Registers to be maintained                                                  3

               The Scheme Administrator must maintain the following registers:       4
               (a) the register of registered persons,                               5
               (b) the register of accredited power stations,                        6
               (c) the register of renewable energy certificates,                    7
               (d) the register of applications for accredited power stations.       8

Division 2           Register of registered persons                                  9

80       Register of registered persons                                             10

         (1)   The register of registered persons is to contain:                    11
               (a) the name of each registered person, and                          12
               (b) the registration number for each registered person, and          13
               (c) any other information that the Scheme Administrator considers    14
                     appropriate.                                                   15

         (2)   The register must also contain the following information about any   16
               person whose registration is suspended:                              17
               (a) the name of the person, and                                      18
               (b) the person's registration number, and                            19
               (c) the period for which registration is suspended, and              20
               (d) any other information that the Scheme Administrator considers    21
                     appropriate.                                                   22

Division 3           Register of accredited power stations                          23

81       Register of accredited power stations                                      24

               The register of accredited power stations is to contain:             25
               (a) the name of each accredited power station, and                   26
               (b) the name of the nominated person for each accredited power       27
                     station, and                                                   28
               (c) the identification code for each accredited power station, and   29
               (d) the pre-scheme capacity for each accredited power station, and   30
               (e) the scheme capacity for each accredited power station, and       31




Page 48
Renewable Energy (New South Wales) Bill 2007                            Clause 82

Registers                                                               Part 9




             (f)   the total capacity for each accredited power station, and              1
             (g)   any relevant method used to determine the amount of electricity        2
                   generated by each accredited power station utilising scheme            3
                   capacity, and                                                          4
             (h)   any other information that the Scheme Administrator considers          5
                   appropriate.                                                           6

Division 4         Register of renewable energy certificates                              7

82    Register of renewable energy certificates                                           8

             The register of renewable energy certificates is to contain:                 9
             (a) the unique identification code of each valid certificate, and           10
             (b) the year in which the certificate was created, and                      11
             (c) the name of the registered person who created the certificate, and      12
             (d) the name of the current registered owner, and each previous             13
                   registered owner, of each certificate, and                            14
             (e) the eligible renewable energy source or sources of the electricity      15
                   in respect of which the certificate was created, and                  16
             (f) any other information that the Scheme Administrator considers           17
                   appropriate.                                                          18

Division 5         Register of applications for accredited power                         19
                   stations                                                              20

83    Contents of register of applications for accredited power stations                 21

             The register of applications for accredited power stations is to contain:   22
             (a) the name of each applicant for each relevant power station to be        23
                   accredited, and                                                       24
             (b) the name and location of each relevant power station to be              25
                   accredited, and                                                       26
             (c) the eligible renewable energy source or sources proposed to be          27
                   used by each relevant power station to be accredited, and             28
             (d) any other information that the Scheme Administrator considers           29
                   appropriate.                                                          30

Division 6         Form of registers                                                     31

84    Form of registers                                                                  32

       (1)   A register under this Part must be maintained by electronic means.          33




                                                                            Page 49
Clause 84         Renewable Energy (New South Wales) Bill 2007

Part 9            Registers




         (2)   A register is to be made available for inspection on the Scheme          1
               Administrator's internet site.                                           2

         (3)   Any addition to a register must be made available on the Scheme          3
               Administrator's internet site within 20 business days after the Scheme   4
               Administrator registers the person, power station or certificate or      5
               receives the application (as the case requires).                         6




Page 50
Renewable Energy (New South Wales) Bill 2007                            Clause 85

Information-gathering powers                                            Part 10




Part 10 Information-gathering powers                                                      1

85    Scheme Administrator may obtain information and documents                           2

       (1)   This section applies to a person if the Scheme Administrator has reason      3
             to believe that the person has information or a document that is relevant    4
             to the operation of this Act.                                                5

       (2)   The Scheme Administrator may, by written notice given to the person,         6
             require the person:                                                          7
              (a) to give to the Scheme Administrator, within the period and in the       8
                   manner and form specified in the notice, any such information, or      9
             (b) to produce to the Scheme Administrator, within the period and in        10
                   the manner specified in the notice, any such document, or             11
              (c) if the person is an individual, to appear before the Scheme            12
                   Administrator at a time and place specified in the notice to give     13
                   any information, either orally or in writing, and produce any such    14
                   document, or                                                          15
             (d) if the person is a body corporate, to cause a competent officer of      16
                   the body corporate to appear before the Scheme Administrator at       17
                   a time and place specified in the notice to give any such             18
                   information, either orally or in writing, and produce any such        19
                   document.                                                             20

       (3)   A notice under subsection (2) must set out the effect of sections 86 and    21
             87.                                                                         22

86    Failure to comply with notice                                                      23

             A person must not, without reasonable excuse, fail to comply with a         24
             notice given to the person under section 85.                                25
             Maximum penalty:                                                            26
             (a) in the case of a body corporate--240 penalty units, or                  27
             (b) in the case of an individual--60 penalty units.                         28

87    Protection against self-incrimination                                              29

             It is a reasonable excuse for an individual to refuse or fail to give       30
             information or evidence or produce a document under section 85 if the       31
             giving of the information or evidence or the production of the document     32
             would tend to incriminate the person.                                       33

88    Copies of documents                                                                34

             The Scheme Administrator may inspect a document produced under              35
             this Part and may make and retain copies of, or take and retain extracts    36
             from, such a document.                                                      37



                                                                            Page 51
Clause 89          Renewable Energy (New South Wales) Bill 2007

Part 10            Information-gathering powers




89    Scheme Administrator may retain documents                                              1
          (1)   The Scheme Administrator may take, and retain for as long as                 2
                necessary, possession of a document produced under this Part.                3

          (2)   The person otherwise entitled to possession of the document is entitled      4
                to be supplied, as soon as practicable, with a copy certified by the         5
                Scheme Administrator to be a true copy.                                      6

          (3)   The certified copy must be received in all courts and tribunals as           7
                evidence as if it were the original.                                         8

          (4)   Until a certified copy is supplied, the Scheme Administrator must, at all    9
                such times and places as the Scheme Administrator thinks appropriate,       10
                permit the person otherwise entitled to possession of the document, or a    11
                person authorised by that person, to inspect and make copies of, or take    12
                extracts from, the document.                                                13




Page 52
Renewable Energy (New South Wales) Bill 2007                             Clause 90

Powers of authorised officers                                            Part 11




Part 11 Powers of authorised officers                                                      1


Division 1           Appointment of authorised officers and identity                       2
                     cards                                                                 3

90     Appointment of authorised officers                                                  4

       (1)    The Scheme Administrator may, in writing, appoint any of the                 5
              following persons as an authorised officer for the purposes of this Part:    6
               (a) an employee of the Scheme Administrator,                                7
              (b) a person employed under Chapter 1A of the Public Sector                  8
                    Employment and Management Act 2002,                                    9
               (c) any other person employed by the State,                                10
              (d) any other person who the Scheme Administrator considers has             11
                    appropriate skills, qualifications and experience.                    12

       (2)    The Scheme Administrator must not appoint a person as an authorised         13
              officer unless the Scheme Administrator is satisfied that the person has    14
              appropriate skills, qualifications and experience.                          15

       (3)    In exercising functions as an authorised officer, an authorised officer     16
              must comply with any directions of the Scheme Administrator.                17

91     Identity cards                                                                     18

       (1)    The Scheme Administrator must issue an identity card to an authorised       19
              officer.                                                                    20

       (2)    The identity card must contain a recent photograph and the signature of     21
              the authorised officer.                                                     22

       (3)    An authorised officer must carry the identity card at all times when        23
              exercising functions as an authorised officer.                              24

       (4)    An authorised officer must produce his or her identity card for             25
              inspection:                                                                 26
               (a) before exercising a power under this Part other than a                 27
                    requirement made by post, fax, email or other electronic              28
                    communication, and                                                    29
              (b) at any time during the exercise of a power under this Part, if asked    30
                    to do so.                                                             31
              Maximum penalty: 10 penalty units.                                          32




                                                                             Page 53
Clause 92          Renewable Energy (New South Wales) Bill 2007

Part 11            Powers of authorised officers




Division 2             Powers of authorised officer                                                1

Subdivision 1             When may powers be exercised                                             2

92    When may powers be exercised?                                                                3

          (1)   An authorised officer may exercise powers under this Part only to the              4
                extent that it is reasonably necessary to do so for substantiating                 5
                information provided under this Act or for determining whether this Act            6
                has been complied with.                                                            7

          (2)   In exercising powers under this Part, an authorised officer must:                  8
                 (a) cause as little inconvenience as possible, and                                9
                (b) not remain on premises any longer than is reasonably necessary.               10

Subdivision 2             Monitoring powers                                                       11

93    Entry to premises                                                                           12

          (1)   An authorised officer may at any reasonable time:                                 13
                (a) enter any premises, and                                                       14
                (b) exercise the monitoring powers set out in section 97.                         15

          (2)   An authorised officer is not authorised to enter premises under                   16
                subsection (1) unless:                                                            17
                (a) the premises are business premises, the occupier of the premises              18
                      has consented to the entry and the authorised officer has                   19
                      complied with section 95, or                                                20
                (b) the entry is made under a search warrant.                                     21

          (3)   If the authorised officer is on the premises with the consent of the              22
                occupier, the authorised officer must leave the premises if the occupier          23
                asks the authorised officer to do so.                                             24

94    Information to be provided to occupier on entry                                             25

                If the occupier of the premises is present when an authorised officer             26
                exercises a power of entry under this Part, the officer must inform the           27
                occupier of the purpose of the entry.                                             28
                Note 1. The authorised officer must also produce his or her identity card for     29
                inspection--see section 91 (4).                                                   30
                Note 2. If entry is made under a search warrant, section 67 of the Law            31
                Enforcement (Powers and Responsibilities) Act 2002 requires the authorised        32
                officer to serve an occupier's notice on the occupier containing information in   33
                relation to the warrant.                                                          34




Page 54
Renewable Energy (New South Wales) Bill 2007                             Clause 95

Powers of authorised officers                                            Part 11




95     Entry with consent                                                                  1
       (1)    If an occupier consents to an entry under section 93, the authorised         2
              officer must before entering the premises ask the occupier to sign an        3
              acknowledgement stating:                                                     4
               (a) that the occupier has been informed of the purpose of the entry,        5
                     and                                                                   6
              (b) that the occupier has been informed that he or she may refuse to         7
                     consent to the entry, and                                             8
               (c) that the occupier has consented to the entry, and                       9
              (d) the date and time that the occupier consented.                          10

       (2)    An occupier who signs an acknowledgement must be given a copy of            11
              the signed acknowledgement before the authorised officer leaves the         12
              premises.                                                                   13

       (3)    If, in any proceeding, an acknowledgement is not produced to the court      14
              or tribunal, it must be presumed, until the contrary is proved, that the    15
              occupier did not consent to the entry.                                      16

       (4)    An entry of an authorised officer by virtue of the consent of a person is   17
              not lawful unless the person voluntarily consented to the entry.            18

96     Entry with search warrant                                                          19

              Division 4 of Part 5 of the Law Enforcement (Powers and                     20
              Responsibilities) Act 2002 applies if premises are entered under a search   21
              warrant.                                                                    22

97     Monitoring powers of authorised officers                                           23

       (1)    For the purposes of this Part, the following are the monitoring powers      24
              that an authorised officer may exercise in relation to premises under       25
              section 93:                                                                 26
               (a) the power to search the premises for any thing on the premises         27
                     that may relate to:                                                  28
                      (i) the creation or transfer of certificates, or                    29
                     (ii) scheme acquisitions,                                            30
              (b) the power to examine any activity conducted on the premises that        31
                     may relate to information provided for the purposes of this Act,     32
               (c) the power to examine any thing on the premises that may relate         33
                     to information provided for the purposes of this Act,                34
              (d) the power to take photographs or make video or audio recordings         35
                     or sketches on the premises of any such activity or thing,           36




                                                                             Page 55
Clause 97             Renewable Energy (New South Wales) Bill 2007

Part 11               Powers of authorised officers




                (e)      the power to inspect any document on the premises that may           1
                         relate to information provided for the purposes of this Act,         2
                (f)      the power to take extracts from, or make copies of, any such         3
                         document,                                                            4
                (g)      the power to take onto the premises such equipment and materials     5
                         as the authorised officer requires for the purpose of exercising     6
                         powers in relation to the premises,                                  7
                (h)      the power to secure a thing that:                                    8
                          (i) is found during the exercise of monitoring powers on the        9
                                premises, and                                                10
                         (ii) an authorised officer believes on reasonable grounds           11
                                affords evidence of the commission of an offence against     12
                                this Act, and                                                13
                        (iii) the authorised officer believes on reasonable grounds          14
                                would be lost, destroyed or tampered with before a warrant   15
                                can be obtained,                                             16
                         until a warrant is obtained to seize the thing,                     17
                (i)      the powers in subsections (2) and (3).                              18

          (2)   For the purposes of this Part, monitoring powers include the power to        19
                operate equipment at premises to see whether:                                20
                (a) the equipment, or                                                        21
                (b) a disk, tape or other storage device that:                               22
                       (i) is at the premises, and                                           23
                      (ii) can be used with the equipment or is associated with it,          24
                contains information that is relevant to substantiating information          25
                provided under this Act.                                                     26

          (3)   For the purposes of this Part, monitoring powers include the following       27
                powers in relation to information described in subsection (2) found in       28
                the exercise of the power under that subsection:                             29
                 (a) the power to operate facilities at the premises to put the              30
                      information in documentary form and copy the documents so              31
                      produced,                                                              32
                (b) the power to operate facilities at the premises to transfer the          33
                      information to a disk, tape or other storage device that:              34
                        (i) is brought to the premises for the exercise of the power, or     35
                       (ii) is at the premises and the use of which for the purpose has      36
                             been agreed in writing by the occupier of the premises,         37




Page 56
Renewable Energy (New South Wales) Bill 2007                              Clause 98

Powers of authorised officers                                             Part 11




              (c)    the power to remove from the premises a disk, tape or other            1
                     storage device to which the information has been transferred in        2
                     the exercise of the power under paragraph (b).                         3

Subdivision 3           Powers to ask questions and seek production                         4
                        of documents                                                        5

 98    Authorised officer may ask for information                                           6

              An authorised officer may, while on premises entered by the authorised        7
              officer with the consent of the occupier, ask the occupier to do one or       8
              more of the following:                                                        9
              (a) answer any questions related to the creation or transfer of              10
                     certificates, scheme acquisitions or the provision of information     11
                     under this Act that are put by the authorised officer,                12
              (b) produce any document requested by the authorised officer that is         13
                     so related.                                                           14

 99    Authorised officer may require information                                          15

              An authorised officer may, while on premises entered under a search          16
              warrant, require any person in or on the premises to do one or more of       17
              the following:                                                               18
               (a) answer any questions related to the creation or transfer of             19
                     certificates, scheme acquisitions or the provision of information     20
                     under this Act that are put by the authorised officer,                21
              (b) produce any document requested by the authorised officer that is         22
                     so related.                                                           23

100    Failure to produce documents or answer questions                                    24

              A person must not, without reasonable excuse, fail to answer a question      25
              or produce a document as required under section 99.                          26
              Maximum penalty: 60 penalty units.                                           27

101    Protection against self-incrimination                                               28

       (1)    It is a reasonable excuse for an individual to refuse or fail to answer a    29
              question or produce a document under section 99 if the answering of the      30
              question or the production of the document would tend to incriminate         31
              the person.                                                                  32

       (2)    Despite subsection (1), it is not a reasonable excuse for an individual to   33
              refuse or fail to produce a document that the person is required to keep     34
              by this Act, if the production of the document would tend to incriminate     35
              the person.                                                                  36




                                                                              Page 57
Clause 102         Renewable Energy (New South Wales) Bill 2007

Part 11            Powers of authorised officers




Division 3            Occupiers' rights and responsibilities                                1

102   Occupier may be present during execution of warrant                                   2

          (1)   If a search warrant is being executed and the occupier of the warrant       3
                premises, or another person who apparently represents the occupier, is      4
                present at the premises, the person is entitled to observe the execution    5
                of the warrant.                                                             6

          (2)   The right to observe the execution of the warrant ceases if the person      7
                impedes that execution.                                                     8

          (3)   This section does not prevent the execution of the warrant in 2 or more     9
                areas of the premises at the same time.                                    10

103   Occupier to provide authorised officer with assistance                               11

                The occupier of warrant premises, or another person who apparently         12
                represents the occupier, must provide the authorised officer executing     13
                the warrant and any person assisting that officer with all reasonable      14
                facilities and assistance for the effective exercise of their powers.      15
                Maximum penalty:                                                           16
                 (a) in the case of a body corporate--240 penalty units, or                17
                (b) in the case of an individual--60 penalty units.                        18

Division 4            Search warrants                                                      19

104   Search warrants                                                                      20

          (1)   An authorised officer may apply to an authorised officer under the Law     21
                Enforcement (Powers and Responsibilities) Act 2002 for the issue of a      22
                search warrant if the authorised officer under this Act believes on        23
                reasonable grounds that entry to the premises for the purposes of          24
                exercising monitoring powers is necessary for the purpose of:              25
                 (a) substantiating information provided under this Act, or                26
                (b) determining whether this Act has been complied with.                   27

          (2)   An authorised officer under the Law Enforcement (Powers and                28
                Responsibilities) Act 2002 to whom such an application is made may, if     29
                satisfied that there are reasonable grounds for doing so, issue a search   30
                warrant authorising an authorised officer under this Act named in the      31
                warrant:                                                                   32
                (a) to enter the premises, and                                             33
                (b) to exercise any monitoring powers in relation to the premises.         34




Page 58
Renewable Energy (New South Wales) Bill 2007                                 Clause 105

Confidentiality                                                              Part 12




Part 12 Confidentiality                                                                        1

105    Disclosure of information and offence                                                   2

       (1)        A person must not disclose any confidential or commercially-sensitive        3
                  information obtained during the exercise of a power or the performance       4
                  of a function under, or in connection with, this Act.                        5
                  Maximum penalty: 60 penalty units.                                           6

       (2)        A person must not use any such information to obtain directly or             7
                  indirectly any pecuniary or other advantage for himself or herself or any    8
                  other person.                                                                9
                  Maximum penalty: 120 penalty units.                                         10

       (3)        However, the person may disclose or use such information if:                11
                  (a) the disclosure or use is made in the exercise of a power or the         12
                      performance of a function under, or in connection with, this Act,       13
                      or                                                                      14
                  (b) the person has the consent of the person who supplied the               15
                      information, or                                                         16
                  (c) the disclosure or use is made in legal proceedings at the direction     17
                      of a court, or                                                          18
                  (d) the information is in the public domain at the time it is disclosed     19
                      or used.                                                                20

       (4)        To avoid doubt, subsection (3) is not intended to interfere with any        21
                  rights another person may have with regard to the disclosure or use of      22
                  the information.                                                            23

106    Information may be disclosed to specified persons or bodies                            24

       (1)        This Part does not prevent the Scheme Administrator, or a person            25
                  authorised by the Scheme Administrator, from divulging or                   26
                  communicating information to:                                               27
                  (a) a Minister of the Crown, or                                             28
                  (b) a corresponding regulator or an officer of a corresponding              29
                        regulator, or                                                         30
                  (c) any other person or body appointed by the Minister to exercise          31
                        the functions, or particular functions, of the Scheme                 32
                        Administrator under this Act, or                                      33
                  (d) a public authority, or                                                  34
                  (e) NEMMCO, or                                                              35
                   (f) VENCorp established under the Gas Industry Act 2001 of                 36
                        Victoria, or                                                          37




                                                                                 Page 59
Clause 106            Renewable Energy (New South Wales) Bill 2007

Part 12               Confidentiality




                (g)      Sustainability Victoria established under the Sustainability           1
                         Victoria Act 2005 of Victoria, or                                      2
                (h)      the Head of the Australian Greenhouse Office (within the               3
                         meaning of the Renewable Energy (Electricity) Act 2000 of the          4
                         Commonwealth) or an officer of the Australian Greenhouse               5
                         Office authorised by the Head of the Australian Greenhouse             6
                         Office for the purposes of this Part, or                               7
                (i)      an officer of that part of the Department of Agriculture, Fisheries    8
                         and Forestry of the Commonwealth Government known as the               9
                         Australian Bureau of Agricultural and Resource Economics              10
                         (ABARE) for the purposes of the exercise of any of ABARE's            11
                         functions.                                                            12

          (2)   In this section:                                                               13
                public authority means a public authority constituted by or under an           14
                Act, a government department or a statutory body representing the              15
                Crown, but does not include a local authority or a State owned                 16
                corporation.                                                                   17




Page 60
Renewable Energy (New South Wales) Bill 2007                               Clause 107

General                                                                    Part 13




Part 13 General                                                                              1


Division 1         General offences                                                          2

107   False or misleading information                                                        3

             A person must not:                                                              4
             (a) give information to the Scheme Administrator or any person                  5
                   exercising powers under or in connection with this Act that the           6
                   first-mentioned person knows to be false or misleading in a               7
                   material particular, or                                                   8
             (b) produce a document to the Scheme Administrator or any person                9
                   exercising powers under or in connection with this Act that the          10
                   first-mentioned person knows to be false or misleading in a              11
                   material particular without indicating the respect in which it is        12
                   false or misleading and, if practicable, providing correct               13
                   information.                                                             14
             Maximum penalty:                                                               15
             (a) in the case of a body corporate--240 penalty units, or                     16
             (b) in the case of an individual--60 penalty units.                            17

108   Failure to provide documents                                                          18

             If a person is required under this Act to provide a document (including        19
             a statement or return) to the Scheme Administrator within a specified          20
             time or by a specified date, the person, must not, without reasonable          21
             excuse, fail to provide the document by the specified time or the              22
             specified date, as the case requires.                                          23
             Maximum penalty:                                                               24
              (a) in the case of a body corporate--240 penalty units, or                    25
             (b) in the case of an individual--60 penalty units.                            26

109   Offences by bodies corporate                                                          27

      (1)    If a body corporate commits an offence against this Act, any officer of        28
             the body corporate who knowingly authorised or permitted the                   29
             commission of the offence is also guilty of that offence and liable to the     30
             penalty for it.                                                                31

      (2)    A person may be proceeded against and convicted under a provision in           32
             accordance with subsection (1) whether or not the body corporate has           33
             been proceeded against or convicted under that provision.                      34

      (3)    If in a proceeding for an offence against this section it is necessary to      35
             establish the intention of a body corporate, it is sufficient to show that a   36
             servant or agent of the body corporate had that intention.                     37



                                                                               Page 61
Clause 110         Renewable Energy (New South Wales) Bill 2007

Part 13            General




          (4)   In subsection (1), officer, in relation to a body corporate, means:          1
                 (a) a director, secretary or executive officer of the body corporate, or    2
                (b) any person in accordance with whose directions or instructions           3
                      the directors of the body corporate are accustomed to act, or          4
                 (c) a person concerned in the management of the body corporate.             5

Division 2            Evidence and records                                                   6

110   Evidence                                                                               7

          (1)   A document sealed by the Scheme Administrator purporting to be a             8
                copy of a document issued or given by the Scheme Administrator under         9
                this Act is evidence that the second-mentioned document was so issued       10
                or given.                                                                   11

          (2)   A document sealed by the Scheme Administrator purporting to be a            12
                copy of, or an extract from, a renewable energy shortfall statement is      13
                evidence of the matter set out in the document to the same extent as the    14
                original statement would be if it were produced.                            15

111   Records to be kept by registered persons and relevant entities                        16

          (1)   A person who is a registered person or a relevant entity must keep          17
                records that record and explain all transactions and other acts engaged     18
                in, or required to be engaged in, by the registered person or relevant      19
                entity under this Act.                                                      20

          (2)   The records kept by a registered person must include any documents          21
                relevant to ascertaining:                                                   22
                 (a) the amount of electricity generated by an accredited power             23
                      station in relation to which the registered person is the nominated   24
                      person, and                                                           25
                (b) the amount of that electricity that was generated from eligible         26
                      renewable energy sources and from scheme capacity, and                27
                 (c) details of all certificates created by the nominated person during     28
                      the year, and                                                         29
                (d) any other matter required by the scheme rules.                          30

          (3)   The records kept by a relevant entity must include any documents            31
                relevant to ascertaining:                                                   32
                 (a) the amount of electricity acquired by the relevant entity under        33
                      scheme acquisitions during a year, and                                34
                (b) any other matter required by the scheme rules.                          35




Page 62
Renewable Energy (New South Wales) Bill 2007                               Clause 112

General                                                                    Part 13




      (4)    The records must be kept:                                                       1
             (a) in writing in the English language or so as to enable the records           2
                   to be readily accessible and convertible into writing in the              3
                   English language, and                                                     4
             (b) so that the relevant entity's liability under this Act can be readily       5
                   ascertained.                                                              6

      (5)    A registered person or relevant entity who has possession of any records        7
             kept or obtained under or for the purposes of this Act must retain them         8
             until the end of 5 years after those records were prepared or obtained, or      9
             the completion of the transactions or acts to which those records relate,      10
             whichever is the later.                                                        11

      (6)    Nothing in this section requires a registered person or relevant entity to     12
             retain records if:                                                             13
              (a) the Scheme Administrator has notified the registered person or            14
                    relevant entity that the retention of the records is not required, or   15
             (b) the registered person or relevant entity is a company that has gone        16
                    into liquidation and been finally dissolved.                            17

      (7)    A registered person or relevant entity who contravenes this section is         18
             guilty of an offence.                                                          19
             Maximum penalty:                                                               20
             (a) in the case of a body corporate--240 penalty units, or                     21
             (b) in the case of an individual--60 penalty units.                            22

Division 3         Fees                                                                     23

112   Fees                                                                                  24

      (1)    The Minister may fix fees or scales of fees for the purposes of this Act.      25

      (2)    The fees may include:                                                          26
             (a) fees for the registration of certificates, and                             27
             (b) fees for requests for review of reviewable decisions, and                  28
             (c) fees for the lodging of statements, and                                    29
             (d) fees for the surrender of certificates.                                    30

      (3)    In fixing fees, the Minister may have regard to the total amount of the        31
             costs and expenses of the Scheme Administrator that are incurred or are        32
             likely to be incurred in the exercise of its powers, or in connection with     33
             the performance of its functions, under this Act.                              34

      (4)    The fees must be published by notice in the Gazette and on the internet        35
             site of the Scheme Administrator.                                              36




                                                                               Page 63
Clause 113         Renewable Energy (New South Wales) Bill 2007

Part 13            General




          (5)   Fees take effect on the day that the notice is published in the Gazette or    1
                on such later date as is specified in the notice.                             2

          (6)   The regulations may require the Minister to consult a specified person        3
                or body before fixing fees or scales of fees under this section.              4

Division 4            Scheme rules                                                            5

113   Scheme rules                                                                            6

          (1)   The Minister may make rules, not inconsistent with this Act or the            7
                regulations, for or with respect to any matter required or permitted by       8
                this Act to be provided for by the scheme rules or which is necessary or      9
                convenient for carrying out or giving effect to this Act.                    10

          (2)   Without limiting subsection (1), rules made may be for or with respect       11
                to the following matters:                                                    12
                 (a) eligibility of relevant power stations for accreditation,               13
                (b) eligible renewable energy sources,                                       14
                 (c) the amount of energy generated by an accredited power station           15
                       including in respect of pre-scheme capacity and scheme capacity,      16
                (d) electricity generation returns and the audit of those returns,           17
                 (e) scheme acquisitions,                                                    18
                 (f) annual energy acquisition statements and the audit of those             19
                       statements,                                                           20
                (g) records to be kept by registered persons and relevant entities.          21

          (3)   The rules may apply, adopt or incorporate (with or without                   22
                modifications):                                                              23
                (a) the provisions of any document issued or published by any                24
                      person or body, whether as issued or published at the time the         25
                      rules are made or any time before then or as in force from time to     26
                      time, and                                                              27
                (b) the provisions of any Act of the Commonwealth or another State           28
                      or Territory or a subordinate instrument made under any of those       29
                      Acts, whether wholly or partially or as amended by the rules or        30
                      as in force or published at a particular time or from time to time.    31

          (4)   A rule may:                                                                  32
                (a) apply generally or be of limited application,                            33
                (b) apply differently according to differences in time, place or             34
                      circumstance,                                                          35
                (c) authorise any matter or thing to be from time to time approved,          36
                      determined or regulated by a specified person or body.                 37




Page 64
Renewable Energy (New South Wales) Bill 2007                              Clause 114

General                                                                   Part 13




      (5)    In preparing and consulting on any draft rules, the Minister must              1
             provide the public with a reasonable opportunity to comment on the             2
             draft rules.                                                                   3

      (6)    The rules must be published in the Gazette.                                    4

      (7)    Rules take effect on the day that they are published in the Gazette or on      5
             such later date as is specified in the rules.                                  6

      (8)    The Scheme Administrator must make an up to date copy of the rules             7
             available for any person to inspect, free of charge, at its office, during     8
             ordinary office hours, and on its internet site.                               9

      (9)    Section 40 (Notice of statutory rules to be tabled) and section 41            10
             (Disallowance of statutory rules) of the Interpretation Act 1987 apply to     11
             a rule made under this section in the same way as they apply to a             12
             statutory rule.                                                               13

Division 5         Miscellaneous                                                           14

114   Electricity supply arrangements not to increase costs for trade exposed              15
      electricity intensive users                                                          16

      (1)    An arrangement between a relevant entity and a trade exposed                  17
             electricity intensive user for the supply of electricity must not require     18
             the trade exposed electricity intensive user to contribute to any of the      19
             relevant entity's costs of meeting the entity's obligations under this Act.   20

      (2)    A relevant entity must not enter into an arrangement in contravention of      21
             subsection (1).                                                               22
             Maximum penalty:                                                              23
             (a) in the case of a body corporate--240 penalty units, or                    24
             (b) in the case of an individual--60 penalty units.                           25

      (3)    A provision of a contract between a relevant entity and a trade exposed       26
             electricity intensive user that requires, or purports to require, the trade   27
             exposed electricity intensive user to contribute to any of the relevant       28
             entity's costs of meeting the entity's obligations under this Act is void.    29

      (4)    A trade exposed electricity intensive user means a person or body that        30
             is determined by the Minister, by order published in the Gazette, to be       31
             a trade exposed electricity intensive user for the purposes of this Act.      32

      (5)    The regulations may make provision for criteria to be applied by the          33
             Minister for the purposes of determining whether a person or body is a        34
             trade exposed electricity intensive user.                                     35




                                                                              Page 65
Clause 115         Renewable Energy (New South Wales) Bill 2007

Part 13            General




115   Proceedings for offences                                                                1
          (1)   Proceedings for an offence under this Act may be dealt with:                  2
                (a) summarily before a Local Court, or                                        3
                (b) summarily before the Supreme Court in its summary jurisdiction.           4

          (2)   If proceedings are brought in a Local Court, the maximum monetary             5
                penalty that the Local Court may impose for the offence is 100 penalty        6
                units, despite any higher maximum monetary penalty provided in                7
                respect of the offence.                                                       8

116   Delegation                                                                              9

                The Minister may delegate the exercise of any function of the Minister       10
                under this Act to:                                                           11
                (a) any member of staff of the Department, or                                12
                (b) any person, or any class of persons, authorised for the purposes         13
                      of this section by the regulations.                                    14

117   Regulations                                                                            15

                The Governor may make regulations, not inconsistent with this Act, for       16
                or with respect to any matter that by this Act is required or permitted to   17
                be prescribed or that is necessary or convenient to be prescribed for        18
                carrying out or giving effect to this Act.                                   19

118   Consequential amendment of Law Enforcement (Powers and                                 20
      Responsibilities) Act 2002 No 103                                                      21

                The Law Enforcement (Powers and Responsibilities) Act 2002 is                22
                amended as set out in Schedule 2.                                            23

119   Savings, transitional and other provisions                                             24

                Schedule 3 has effect.                                                       25

120   Review of Act                                                                          26

          (1)   The Minister is to review this Act to determine whether the policy           27
                objectives of the Act remain valid and whether the terms of the Act          28
                remain appropriate for securing those objectives.                            29

          (2)   The review is to be undertaken as soon as possible after the period of       30
                5 years from the date of assent to this Act.                                 31

          (3)   A report on the outcome of the review is to be tabled in each House of       32
                Parliament within 12 months after the end of the period of 5 years.          33




Page 66
Renewable Energy (New South Wales) Bill 2007

Required GWh of electricity from eligible renewable energy sources   Schedule 1




Schedule 1              Required GWh of electricity from eligible                    1
                        renewable energy sources                                     2

                                                                      (Section 66)   3




Column 1                                      Column 2
Year                                          Required GWh
2008                                          439
2009                                          878
2010                                          1317
2011                                          1910
2012                                          2503
2013                                          3096
2014                                          3690
2015                                          4283
2016                                          4876
2017                                          5470
2018                                          6063
2019                                          6656
2020                                          7250
2021                                          7250
2022                                          7250
2023                                          7250
2024                                          7250
2025                                          7250
2026                                          7250
2027                                          7250
2028                                          7250
2029                                          7250
2030                                          7250




                                                                        Page 67
                Renewable Energy (New South Wales) Bill 2007

Schedule 2      Consequential amendment of Law Enforcement (Powers and
                Responsibilities) Act 2002



Schedule 2            Consequential amendment of Law                                     1
                      Enforcement (Powers and                                            2
                      Responsibilities) Act 2002                                         3

                                                                         (Section 118)   4

      Schedule 2 Search warrants under other Acts                                        5

      Insert in alphabetical order of Acts:                                              6

                   Renewable Energy (New South Wales) Act 2007, section 104              7




Page 68
Renewable Energy (New South Wales) Bill 2007

Savings, transitional and other provisions                               Schedule 3




Schedule 3               Savings, transitional and other                                   1
                         provisions                                                        2

                                                                          (Section 119)    3

  1    Regulations                                                                         4

       (1)    The regulations may contain provisions of a savings or transitional          5
              nature consequent on the enactment of the following Acts:                    6
              this Act                                                                     7

       (2)    Any such provision may, if the regulations so provide, take effect from      8
              the date of assent to the Act concerned or a later date.                     9

       (3)    To the extent to which any such provision takes effect from a date that     10
              is earlier than the date of its publication in the Gazette, the provision   11
              does not operate so as:                                                     12
               (a) to affect, in a manner prejudicial to any person (other than the       13
                     State or an authority of the State), the rights of that person       14
                     existing before the date of its publication, or                      15
              (b) to impose liabilities on any person (other than the State or an         16
                     authority of the State) in respect of anything done or omitted to    17
                     be done before the date of its publication.                          18




                                                                             Page 69


 


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