Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Bill

15 Section 161C amended (Eligible industrial activities)

(1)

Replace section 161C(1) with:

(1)

For the purposes of section 161A(1)(b)(ii), (2)(b), and (3), an activity is—

(a)

moderately emissions-intensive if the specified emissions from the activity (measured in whole tonnes per $1 million of specified revenue from the activity) are equal to or greater than the moderately emissions-intensive threshold, but less than the highly emissions-intensive threshold:

(b)

highly emissions-intensive if the specified emissions from the activity (measured in whole tonnes per $1 million of specified revenue from the activity) are equal to or greater than the highly emissions-intensive threshold:

(c)

trade-exposed unless, in the Minister’s opinion,—

(i)

there is no international trade of the output of the activity across oceans; or

(ii)

it is not economically viable to import or export the output of the activity.

(1A)

For the purposes of subsection (1), the moderately emissions-intensive threshold must be calculated in accordance with the following formula:

M = 800 × ( 25 ÷ n )

where—

M

is the moderately emissions-intensive threshold

n

is the specified price of carbon.

(1B)

For the purposes of subsection (1), the highly emissions-intensive threshold must be calculated in accordance with the following formula:

H = 1,600 × ( 25 ÷ n )

where—

H

is the moderately emissions-intensive threshold

n

is the specified price of carbon.

(2)

In section 161C(2), replace “section 161A(3)” with “section 161A(2)”.

(3)

After section 161C(3)(d), insert:

(e)

the specified price of carbon, in respect of an activity (activity A), is the price specified for carbon in regulations made under section 30W at the time, after 1 July 2023, when the Minister first issues a notice under section 161D(1) in respect of any activity, in respect of the years specified in the notice under section 161D(1) that contained a description of activity A.

(4)

Replace section 161C(4) with:

(4)

Despite subsection (3)(c), the Minister may adjust the number of whole tonnes of included emissions shown in the information referred to in section 161D(1)(e)(i)(C) provided by any persons carrying out an activity specified in a notice given under section 161D(1)—

(a)

after taking into account—

(i)

any electricity-related contract that—

(A)

affects the electricity cost increase that any of the persons will face due to the obligation imposed by this Act on participants to surrender units; and

(B)

was in force on the date of the notice; or

(ii)

any information relating to any such contracts:

(b)

as a consequence of any change that occurred on or after the date of the notice to any 1 or more of the following:

(i)

an emissions factor:

(ii)

an electricity allocation factor:

(iii)

an exemption set out in an order made under section 60.