19Simplified outline

#### 19 Simplified outline The following is a simplified outline of this Part: • This Part sets out rules for: (a) identifying the persons who are liable entities for a financial year (liable entities are liable to pay unit shortfall charge if they do not surrender sufficient eligible emissions units); and (b) the provisional emissions numbers of those liable entities (provisional emissions numbers are used to work out the number of eligible emissions units that must be surrendered by a liable entity to avoid being liable to pay unit shortfall charge). • If a person is responsible for covered emissions of greenhouse gas from the operation of a facility during a financial year: (a) the person is a liable entity for the financial year; and (b) the number of tonnes of carbon dioxide equivalence of the gas is a provisional emissions number of the person for the financial year. • A person can be responsible for covered emissions of greenhouse gas from the operation of a facility because: (a) the person has operational control of the facility; or (b) the person is a participant in a designated joint venture that has the facility; or (c) the person is the holder of a liability transfer certificate in relation to the facility. • A covered emission of greenhouse gas from the operation of a facility is a scope 1 emission (within the meaning of the National Greenhouse and Energy Reporting Regulations 2008), but does not include: (a) emissions attributable to the combustion of certain fossil fuels; and (b) emissions attributable to the combustion of biomass, biofuel or biogas; and (c) agricultural emissions; and (d) fugitive emissions from decommissioned underground mines; and (e) emissions from legacy waste; and (f) emissions from closed landfill facilities; and (g) emissions of certain synthetic greenhouse gases. • If a natural gas supplier supplies natural gas during a financial year: (a) the supplier is a liable entity for the financial year; and (b) the number of tonnes of carbon dioxide equivalence of the potential greenhouse gas emissions embodied in the natural gas is a provisional emissions number of the supplier for the financial year. • If a person imports or produces liquefied petroleum gas or liquefied natural gas, during a financial year, for non‑transport use: (a) the person is a liable entity for the financial year; and (b) the number of tonnes of carbon dioxide equivalence of the potential greenhouse gas emissions embodied in the liquefied petroleum gas or liquefied natural gas is a provisional emissions number of the person for the financial year. • If a person supplies an amount of natural gas, liquefied petroleum gas or liquefied natural gas to another person (the recipient) who quotes the recipient’s Obligation Transfer Number (OTN) in relation to the supply, the supply will not count towards the supplier’s liability for the financial year. • If a person (the OTN holder) quotes the OTN holder’s OTN in relation to the supply of an amount of natural gas, liquefied petroleum gas or liquefied natural gas, the OTN holder may be a liable entity. • There is to be an Opt‑in Scheme under which a designated opt‑in person will be a liable entity because of the acquisition, manufacture or importation of taxable fuel.