72CRequirements for surrender of prescribed carbon units

72C Requirements for surrender of prescribed carbon units

(1) For the purposes of paragraph 22XN(1)(b) of the Act, this section creates requirements for a surrender by a person of prescribed carbon units for the purposes of reducing the net emissions number for a facility for a period. No ACCUs surrendered (2) The surrender meets the requirements of this section if none of the prescribed carbon units are Australian carbon credit units. Total number of ACCUs surrendered less than 30% of baseline emissions number (3) The surrender also meets the requirements of this section if: (a) some or all of the prescribed carbon units are Australian carbon credit units; and (b) the total number of: (i) those Australian carbon credit units; and (ii) any Australian carbon credit units that were previously surrendered for the purposes of reducing the net emissions number for the facility for the period; is less than 30% of the baseline emissions number for the facility for the period. Total number of ACCUs surrendered equal to or greater than 30% of baseline emissions number (with explanation) (4) The surrender also meets the requirements of this section if: (a) some or all of the prescribed carbon units are Australian carbon credit units; and (b) the surrender causes the total number of: (i) those Australian carbon credit units; and (ii) any Australian carbon credit units that were previously surrendered for the purposes of reducing the net emissions number for the facility for the period; to be equal to or greater than 30% of the baseline emissions number for the facility for the period; and (c) the responsible emitter for the facility gives the Regulator, in accordance with subsection (5), a written explanation of why more carbon abatement was not undertaken at the facility during the period. Explanation requirements (5) A written explanation of why more carbon abatement was not undertaken at a facility during a period must: (a) be given to the Regulator in the form approved, in writing, by the Regulator; and (b) address the following matters: (i) whether limitations in available technologies affected the level of carbon abatement undertaken at the facility during the period; (ii) whether there are barriers, including regulatory barriers, to undertaking carbon abatement at the facility; and (c) include information about future opportunities for undertaking carbon abatement at the facility; and (d) identify any information included in the explanation that is commercially sensitive. Publication of explanation (6) The Regulator must publish an explanation given to the Regulator in accordance with paragraph (5)(a) on the Regulator’s website as soon as practicable after receiving it. The published explanation must not include any commercially sensitive information identified in accordance with paragraph (5)(d).