The Rudd Government today released updated draft regulations for the Carbon Pollution Reduction Scheme (CPRS).

The updated regulations include the second group of activities to be eligible for assistance under the emissions intensive, trade exposed (EITE) assistance program.

The Government has also today released draft regulations to deliver partial exemptions from Renewable Energy Target (RET) liability to all activities that would qualify for the EITE assistance under the CPRS.

The Government is seeking feedback from stakeholders on the draft CPRS and RET regulations by Monday 11 January 2010.

 

Carbon Pollution Reduction Scheme regulations

The updated draft EITE regulations include the following new activities that have been assessed as eligible for EITE assistance: aluminium smelting, alumina refining, cartonboard manufacturing, dry pulp manufacturing, high purity ethanol production, integrated lead and zinc production, magnesia production, packaging and industrial paper manufacturing, tissue paper manufacturing and printing and writing paper manufacturing.

The draft EITE regulations released today also take into account comments made by stakeholders in submissions on the first draft of these regulations in June 2009.

The three key changes that have been made in the revised draft regulations are: the inclusion of a universal ‘true-up’ mechanism to more closely align permit allocations with production levels in each year; amendments to provisions relating to large electricity user certificates; and the inclusion of a provision to ensure that permits are not provided in excess of an entity’s direct and indirect emissions costs under the CPRS.  

The draft regulations and commentary as well as the accompanying explanatory paper are available on the Department of Climate Change website at www.climatechange.gov.au

The Government remains committed to providing certainty to entities regarding the free permit allocations they would receive under the CPRS as early as possible.

The Government encourages firms conducting potential EITE activities to submit audited data to the Government as soon as possible so that the eligibility of their activity can be assessed. The Government will endeavour to make and announce decisions on the eligibility of the remaining EITE activities within 8 weeks of the receipt of audited data from all Australian entities conducting a given activity.

 

Renewable Energy Target regulations

The draft Renewable Energy Target (RET) regulations reflect the Government’s policy to provide assistance to eligible EITE activities for the additional cost impacts of the expansion of the RET.

The approach to determining partial exemptions under the RET is consistent with that applying under CPRS EITE assistance program where practicable, using information provided through that program’s reporting processes.

The draft regulations and accompanying commentary, along with details of the consultation process, are also available on the Department of Climate Change website at www.climatechange.gov.au