4Simplified outline of this Act

4 Simplified outline of this Act

This Act establishes a vehicle efficiency standard to regulate the carbon dioxide emissions of certain road vehicles. The standard works by setting emissions targets for vehicles covered by the standard.

A person to whom the standard applies in a particular year must ensure that their final emissions value for the year is zero or less. Failure to achieve this may result in a civil penalty.

A person’s final emissions value for a year is their interim emissions value for the year minus the number of units they have extinguished for the purpose of reducing their final emissions value.

A person’s interim emissions value for a year measures the performance of the person’s vehicles against the emissions targets set by the standard for the year. A positive value indicates that the vehicles have collectively underperformed against their targets, whereas a negative value indicates overperformance.

If a person has a negative interim emissions value for a year, the Secretary must issue units to the person. The person may extinguish some or all of those units to reduce their final emissions value for another year. Alternatively, they may transfer some or all of those units to another person who may extinguish them to reduce their own final emissions value for that year or another year.

Units may also be issued in respect of vehicles covered by the standard in other, limited circumstances.

All transactions involving units are made through a registry.

There are a number of offences and civil penalties in relation to the vehicle efficiency standard and the registry. A range of compliance and enforcement powers are provided for, primarily by applying the Regulatory Powers Act.

The Minister may make rules and certain legislative instruments in relation to the vehicle efficiency standard and the registry.