22XNHow prescribed carbon units are surrendered

#### 22XN How prescribed carbon units are surrendered (1) A person who is the registered holder of one or more prescribed carbon units may, by electronic notice transmitted to the Regulator, surrender any or all of those units for the purposes of reducing the net emissions number for a facility for a period if: (a) the person has complied with the requirements (if any) specified in the safeguard rules; and (b) the surrender meets the requirements (if any) specified in the safeguard rules; and (c) the period meets the requirements (if any) specified in the safeguard rules. (1A) Safeguard rules made for the purposes of paragraph (1)(b) may provide that a surrender of prescribed carbon units under subsection (1): (a) must include a number of: (i) prescribed carbon units of a specified kind; or (ii) prescribed carbon units that satisfy specified conditions; that is worked out in accordance with those rules; or (b) must not include a number of: (i) prescribed carbon units of a specified kind; or (ii) prescribed carbon units that satisfy specified conditions; that exceeds a number worked out in accordance with those rules. (1B) Subsection (1A) does not limit the safeguard rules that may be made for the purposes of paragraph (1)(b). (2) A notice under subsection (1) must: (a) specify the prescribed carbon unit or units that are being surrendered; and (b) set out a statement to the effect that the prescribed carbon unit or units are being surrendered for the purpose of reducing the net emissions number for the facility for the period; and (c) specify the account number or account numbers of the person’s Registry account, or the person’s Registry accounts, in which there is an entry or entries for the prescribed carbon unit or units that are being surrendered. (3) If an Australian carbon credit unit is surrendered by a person for the purposes of reducing the net emissions number for a facility for a period: (a) the unit is cancelled; and (b) the Regulator must remove the entry for the unit from the person’s Registry account in which there is an entry for the unit. (4) If a prescribed carbon unit (other than an Australian carbon credit unit) is surrendered by a person: (a) the Regulator must take such action in relation to the unit as is specified in the safeguard rules; and (b) the Regulator must remove the entry for the unit from the person’s Registry account in which there is an entry for the unit. (5) The Registry must set out a record of each notice under subsection (1). Deemed surrender—purchased Australian carbon credit units (6) If: (a) a person (the relevant person) was the responsible emitter for a facility throughout a particular period; and (b) during that period, one or more Australian carbon credit units were issued under the Carbon Credits (Carbon Farming Initiative) Act 2011 in respect of an eligible offsets project; and (c) some or all of those Australian carbon credit units are attributable to carbon abatement at the facility; and (d) if the units covered by paragraph (c) were issued to another person: (i) the relevant person consented to the other person carrying out the project; and (ii) the consent was given under regulations or legislative rules made for the purposes of paragraph 15(2)(h) or 27(4)(l) of the Carbon Credits (Carbon Farming Initiative) Act 2011; and (e) some or all of the units covered by paragraph (c) were purchased by the Commonwealth under a carbon abatement contract; section 22XK has effect as if: (f) the units covered by paragraph (e) had been surrendered by electronic notice transmitted to the Regulator under subsection (1) of this section instead of being purchased by the Commonwealth under a carbon abatement contract; and (g) the notice surrendering the units had contained a statement to the effect that the units are being surrendered for the purpose of reducing the net emissions number for the facility for the period. (7) Subsection (6) does not apply in circumstances prescribed by the safeguard rules.