39Application for determination that a facility is a trade‑exposed baseline‑adjusted facility

39 Application for determination that a facility is a trade‑exposed baseline‑adjusted facility

(1) The responsible emitter for a facility may apply to the Regulator for a determination that the facility is a trade‑exposed baseline‑adjusted facility in a particular financial year (the first financial year) and the next 2 financial years. (2) The application must be made: (a) in a manner and form approved, in writing, by the Regulator; and (b) before the end of the due date for the application, unless the Regulator agrees to accept the application after that date.

Note 1: For the due date for the application, see section 52.

Note 2: For withdrawal of the application, see section 53.

(3) The application must include the following information: (a) if the facility was not a manufacturing facility in the first financial year—all of the following: (i) subject to subsection 36(2), the revenue of the facility in the first financial year, calculated in accordance with: (A) the Australian accounting standards as in force at the end of the first financial year; and (B) any EBIT Guidelines that are in force at that time; (ii) information about the assumptions made when working out that revenue; (b) if the facility was a manufacturing facility in the first financial year—all of the following: (i) the earnings before interest and tax (the EBIT) of the facility in the first financial year, calculated in accordance with section 37; (ii) information about the assumptions made when working out the EBIT under that section; (iii) each depreciation factor used in the depreciation schedule used for calculating the EBIT; (iv) if the depreciation schedule used for calculating the EBIT uses an accelerated depreciation factor—an explanation for why the accelerated depreciation factor is used; (c) both of the following: (i) the assessed cost impact for the facility for the first financial year; (ii) information about the assumptions made when working out that assessed cost impact; (d) the amount of covered emissions of greenhouse gases from the operation of the facility in the first financial year; (e) the hypothetical baseline for the facility for the first financial year; (f) the emissions reduction contribution, and the baseline emissions number, for the facility for the first financial year if: (i) the determination were made; and (ii) those numbers were worked out using the assessed cost impact for the facility for the first financial year; (g) an estimate of the emissions reduction contribution for the facility for each of the next 2 financial years after the first financial year if the determination were made. (3A) For the purposes of subsection (3)(a)(i), EBIT Guidelines prevail over the Australian accounting standards to the extent of any inconsistency. (4) The application must include a declaration that the amount of covered emissions of greenhouse gases from the operation of the facility in the first financial year was not increased for the sole or substantial purpose of: (a) achieving the result that the Regulator makes the determination; or (b) achieving the result that the emissions reduction contribution for the facility for the first financial year and the next 2 financial years is higher than it would have been but for that increase. (5) The application, and the declaration under subsection (4), must be signed by: (a) if the responsible emitter is a body corporate—the chief financial officer (however described) of the responsible emitter; or (b) otherwise—a person whose duties in relation to the responsible emitter are equivalent to those of the chief financial officer of a body corporate. (6) The responsible emitter for a facility may make an application under this section even if the facility is already a trade‑exposed baseline‑adjusted facility in the first financial year.