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