Guidelines for applications for a certificate of eligibility for coal-fired generation

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Part 1: Introduction to the Guidelines

These guidelines cover the following:

Part 2: Background to the Energy Security Fund Cash Payments

Part 3: Timeframe and Submission sets out the timeframe and submission requirements for Energy Security Fund Cash Payments

Part 4: Application requirements sets out requirements to use the combined application form for applications.

Part 5: Applicant and generation complex details outlines general information required to be provided to determine eligibility (Section C of the combined application form).

Part 6: Generation complex assistance eligibility test outlines the criteria for the generation complex assistance eligibility test (Section D of the combined application form).

Part 7: Annual assistance factor outlines the emissions intensity and historical energy numbers and how the department will use these numbers to calculate an annual assistance factor (Section E and Section F of the combined application form).

Part 8: Audit information sets out audit requirements for applications (Section G of the combined application form).

Part 9: Issuing assistance outlines how the department will determine the entity to receive the assistance and how cash payments will be made.

Part 10: Important information outlines important information, including the use and disclosure of information, tax treatment, review rights and contact details for further information.

Part 11: Key definitions a glossary of key terms used in these guidelines.

Part 2: Background to Energy Security Fund Cash Payments

On 10 July 2011, the Government announced its plan for a clean energy future, Securing a clean energy future: the Australian Government's climate change plan, including: introducing a carbon price; promoting innovation and investment in renewable energy; encouraging energy efficiency; and creating opportunities in the land sector to cut pollution.

The Australian Government has identified that a carbon price is likely to have significant transformational implications for the electricity generation sector. The Government's clean energy plan includes a package of measures to address energy security under carbon pricing. The package comprises three key elements to address energy security: the Energy Security Fund, Government loans and an Energy Security Council.

The Energy Security Fund comprises:

  • Energy Security Fund Cash Payments - assistance to highly emissions-intensive coal-fired generators in the form of $1 billion in cash payments in 2011-12;
  • Energy Security Fund Free Carbon Units - assistance to highly emissions-intensive coal-fired generators in the form of 41.705 million free carbon units provided annually from 2013-14 to 2016-17 under Part 8 of the Clean Energy Act 2011 (the Act); and
  • Contract for Closure program possible payments for the closure of some of Australia's most emissions-intensive generation capacity, which the Government will seek to negotiate to make room for investment in lower pollution plant.

The $1 billion in cash payments to highly emission-intensive coal-fired generators under the Energy Security Fund will be administered by the department. These guidelines establish the eligibility requirements and assistance formula and set out how the department will assess and deliver cash payments.

The Energy Security Fund Cash Payments measure is an administrative scheme under the executive power in section 61 of the Constitution and does not have any legislative basis. Although the Energy Security Fund Cash Payments measure uses the same application form and a similar process as Energy Security Fund Free Carbon Units in assessing eligibility and applying formulas, they are separate schemes.

Part 8 of the Act and the Clean Energy Regulations 2011 (the 'Regulations') implement the Government's policy in relation to assistance to highly emissions-intensive coal-fired generators in the form of free carbon units under the Energy Security Fund.

The Contract for Closure program is dealt with through a separate Expression of Interest process led by the Department of Resources, Energy and Tourism. Details of this program are available on the website of the Department of Resource, Energy and Tourism.

The other elements of the broader Energy Security Package, that is, Government loans to emissions-intensive coal-fired generators and the Energy Security Council, will be administered by the Treasury.

Further information on the Energy Security Package incorporating the Energy Security Fund is available in Securing a clean energy future: the Australian Government's climate change plan.

Part 3: Timeframe and Submission

The Government has announced that Energy Security Fund Cash Payments will be made in 2011/2012. The timeframe for the Energy Security Fund Cash Payments is set out below.

Table 3.1: Timeframe
1 December 2011 Applications open for a certificate of eligibility for coal-fired generation assistance (cash payments)
31 January 2012* Applications close for a certificate of eligibility for coal-fired generation assistance (cash payments)
16 February 2012 Deadline for resubmission of applications which are not mutually exclusive
30 March 2012 Final decisions on applications, applicants are advised of the outcomes
2 May 2012 Interim decision on the entity to receive the cash payments
30 May 2012 Final decision on the entity to receive the cash payments
June 2012 Cash payments made

*The department may request further information or documents from applicants after this date.

Submission

Applicants must provide at least 1 hard copy of their application for a certificate of eligibility for coal-fired generation assistance (cash payments) by 5pm Canberra Time, 31 January 2012.

Applications must be sent to:

Brad Archer
Assistant Secretary, Energy Markets and Renewables Branch
Department of Climate Change and Energy Efficiency
GPO Box 854
Canberra ACT 2601

The time recorded by the department for receipt of applications is final. It is the applicant's responsibility to ensure that the documentation submitted by the closing date and time above is complete and meets the application requirements specified in these guidelines and the combined application form.

Applicants may include an additional CD or electronic device with duplicate documentation. Applicants are responsible for ensuring that any electronic copy documentation corresponds with the hard copy documentation supplied and is virus free. Electronic documents must be in a format that can be accessed by a Microsoft office application 2007.

Part 4: Application Requirements

Application form requirements

Section 163(1)(b) of the Act provides for the Minister to approve an application form, known as the 'approved combined form' that must be used for:

  • applications for payments from the Energy Security Fund (applications to the department for a certificate of eligibility for coal-fired generation assistance in relation to cash payments); and
  • applications under section 162 of the Act (applications to the Regulator for a certificate of eligibility for coal-fired generation assistance in relation to free carbon units).

The application form allows for an applicant to indicate that it is both an application for a certificate of eligibility for coal-fired generation assistance (cash payments), and an application for a certificate of eligibility for coal-fired generation assistance (free carbon units) under section 162 of the Act. If the applicant so indicates, the department will forward the application form and associated information, documents and reports submitted to the department to the Regulator on its establishment for consideration in regard to a certificate of eligibility for coal-fired generation assistance (free carbon units). This may streamline the process for applicants and may reduce compliance requirements, including in relation to auditing of applications.

Applicants should note that if they do not explicitly provide this indication in the application form, any application for a certificate of eligibility for coal-fired generation assistance (free carbon units) will need to be separately provided to the Regulator.

Information, document and report requirements

The information, document and report requirements for free carbon units are established under section 163 of the Act and in the Regulations made for under Part 8 of that Act. The same requirements apply in relation to applications for a certificate of coal-fired generation assistance (cash payments).

Applicants should note that an application must:

  1. be in writing; and
  2. be in the approved combined form; and
  3. be accompanied by such information as is specified in the Regulations; and
  4. be accompanied by such documents including reports made under the NGER Act 2007, as is specified in Regulations and the combined application form; and
  5. be accompanied by an audit report as is specified in Regulations and combined application form.

In addition, the department may, by written notice given to an applicant, require the applicant to give the department within the period specified in the notice further information in connection with the application. If the applicant fails to comply with this requirement, the department may by written notice given to the applicant:

  1. refuse to consider the application; or
  2. refuse to take any action, or further action, in relation to the application.

Applications must be mutually exclusive

An application must be mutually exclusive in so far as the coverage of generation units is concerned. The department will not issue a certificate of eligibility for coal-fired generation assistance (cash payments) for the same generation unit in more than one generation complex.

If the department receives two or more applications from one or more persons qualified to make an application that are not mutually exclusive so far as their coverage of generation units is concerned, the department will not consider any of those applications. The department will notify in writing all relevant applicants, advising them that the applications have been rejected as the applications are not mutually exclusive and advising the applicants of the date by which new, mutually exclusive, applications must be submitted. If one or more new applications are made by the date notified to the applicants that are mutually exclusive, the department will consider those new applications.

Part 5: The applicant and generation complex

A person is not entitled to make an application to the department for a certificate of eligibility for coal-fired generation assistance (cash payments) in respect of a generation complex unless the person owns, controls or operates the generation complex.

The concept of 'owning, controlling or operating' a generation complex is intended to have the same meaning as the equivalent terms in laws on the regulation of energy markets that require the registration of electricity generators. The primary laws (and subordinate instruments) relevant to the department's decisions are:

  • for the National Electricity Market (NEM), the National Electricity Rules as made and amended under Part 7 of the Schedule to the National Electricity (South Australia) Act 1996 (SA) and given force of law in other jurisdictions through application legislation; and
  • for the Western Australian Wholesale Electricity Market (WA WEM), the Wholesale Electricity Market Rules provided for under section 123 of the Electricity Industry Act 2004 (WA) and the Electricity Industry (Wholesale Electricity Market) Regulations 2004 (WA).

Application in respect of a generation complex

An application must be made in respect of a 'generation complex'. It is important to note that the act of applying for a certificate of eligibility for coal-fired generation assistance (cash payments) in respect of a generation complex that is deemed to be eligible does not necessarily mean that the applicant will be the recipient of the cash payment. The recipient of a cash payment will be determined by the department. Information on how the department will determine the recipient is in Part 9.

The concept of a generation complex is not the same as the concept of a 'facility' as defined in the National Greenhouse and Energy Reporting Act 2007 (the NGER Act). Cash payments will be made in relation to coal-fired electricity generators that meet certain eligibility criteria. However, a facility under the NGER Act could include, for example, the activities of a co-located coal fired generator and coal mine. For this reason, the separate definition of a 'generation complex' is used to capture only those elements of a facility that may be eligible for cash payments.

For operational reasons, equipment used for the generation of electricity is often engineered such that at a given location, there are multiple sets of equipment that can generate electricity independently of one another (although they may share some common infrastructure, such as cooling systems or coal conveyor belts). Each independent set of equipment for the generation of electricity is known as a 'generation unit', whilst one or more generation units at the same location are known as a 'generation complex'. A certificate of eligibility for coal-fired generation assistance (cash payments) is provided in respect of generation complexes rather than individual generation units.

A generation complex may comprise a single generation unit or a set of two or more generation units at the same location. There is no requirement on persons applying for a certificate of eligibility for coal-fired generation assistance (cash payments) to aggregate multiple generation units at the same location together to form a single generation complex, although this may be practical for some applicants.

Information requirements relating to generation complex details

Applicants must provide information, documents and reports with the application to allow the department to verify the applicant's relationship to the generation complex and claims made about the generation complex within the application.

These requirements are set out in Section C of the combined application form.

Part 6: Generation Complex Assistance Eligibility Test

A cash payment will only be made in respect of a generation complex in relation to which a certificate of eligibility for coal-fired generation assistance (cash payments) has been issued by the department. Before a certificate of eligibility for coal-fired generation assistance (cash payments) can be issued, the department must be satisfied that the generation complex which is subject to the application passes the generation complex assistance eligibility test. The criteria for meeting the generation complex assistance eligibility test are set out below1.

A generation complex passes the generation complex assistance eligibility test if:

  • at any time during the period beginning on 1 July 2008 and ending on 30 June 2010, the generation complex was:
    • in operation; and
    • connected to a grid with grid capacity2 of at least 100 megawatts; and
  • during the period beginning on 1 July 2008 and ending on 30 June 2010, at least 95% of the electricity generated by the generation complex was attributed to the combustion of coal; and
  • the emissions intensity of the generation complex is greater than 1.0 kilotonnes of carbon dioxide equivalence per gigawatt hours (kt CO2-e per GWh) of electricity generated. The emissions intensity of a generation complex is calculated in accordance with Part 7.

Information requirements relating to the Generation complex assistance eligibility test

Applicants must provide information, documents and reports with the application to allow the department to assess whether the generation complex passes the generation complex assistance eligibility test.

These requirements are set out in Section D of the combined application form.

Part 7: Annual Assistance Factor

Each certificate of eligibility for coal-fired generation assistance (cash payments) will include an annual assistance factor. This annual assistance factor will be used to determine the correct cash payment in respect of a particular generation complex.

The formula used to calculate the annual assistance factor3 is:

Historical energy x 0.86)

Where:

Historical energy is calculated in accordance with section 167 of the Act, that is:

  • if the generation complex is a generation complex that entered service on or before 1 July 2008 the total number of gigawatt hours of electricity generated by the generation complex during the period beginning on 1 July 2008 and ending on 30 June 2010, as measured at all generator terminals of the generation complex; or
  • if the generation complex is a generation complex that entered service after 1 July 2008 14.016 multiplied by the number of megawatts in the nameplate rating of the generation complex as at the day the generation complex entered service

Emissions intensity is calculated in accordance with section 168 of the Act, that is the emissions intensity of the generation complex worked out to three decimal places using the formula:

Carbon dioxide equivalence of emissions
Gigawatt hours of electricity generated

Where:

Carbon dioxide equivalence of emissions has the same meaning as set out in section 168 of the Act, that is the total number of kilotonnes of the carbon dioxide equivalence of the greenhouse gases emitted from the combustion of fuel in the generation complex for the purposes of the generation of electricity during the period beginning on 1 July 2008 and ending on 30 June 2010.

Gigawatt hours of electricity generated has the same meaning as section 168 of the Act, that is the total number of gigawatt hours of electricity generated by the generation complex during the period beginning on 1 July 2008 and ending on 30 June 2010 as measured at all generator terminals of the generation complex.

However the emissions intensity of a generation complex is taken to be 1.3 kt CO2-e per GWh if the number worked out to 3 decimal places using the formula above is greater than 1.3 kt CO2-e per GWh.

Calculating the annual assistance factor for a generation complex

There may be a degree of uncertainty in an estimation of both historical energy and emissions intensity. The annual assistance factor to be specified in a certificate of eligibility for coal-fired generation assistance (cash payments) in respect of a generation complex is the department?s reasonable estimate of the number worked out to three decimal places. The department may at its discretion consult with an applicant in relation to the application prior to finalisation of the annual assistance factor. The departments decision on the annual assistance factor once made will be final and not subject to review.

Example 7.1 A generation complex that entered service on or before 1 July 2008

Historical energy -The applicant is required to provide historical data concerning the generation of electricity by that generation complex over the period from 1 July 2008 to 30 June 2010.

The department may verify this data through comparison with data publicly available from independent bodies such as the market operator in the market in which the generation complex operates.

Emissions intensity - The applicant is required to provide historical information concerning the emissions produced by the generation complex over the period 1 July 2008 to 30 June 2010.

The primary source for this information is likely to be information reported to the Australian Government as required under the NGER Act.

Calculation of annual assistance factor - Assume that, based on the information contained in an application (and subject to any additional information), the department estimates in relation to a particular generation complex historical energy of 16,000 GWh of electricity, with the production of 20,000 kt CO2-e over the two year period in question.

Based on these estimates, the department's estimate of the generation complex's emissions intensity will be:

20,000 kt of CO2-e per GWh / 16,000 GWh = 1.250 kt of CO2-e per GWh

Accordingly, the generation complex's annual assistance factor will be:

16,000 x (1.250 - 0.86) = 6,240

Example 7.2 A generation complex that entered service after 1 July 2008

Historical energy - The applicant is required to provide the department with the nameplate rating of the generation complex as registered with the relevant market operator as of 1 July 2010.

For example, the generation complex's nameplate rating might be 500 MW. This being the case, the department's estimate of the historical energy of the generation complex over a notional two year period would be:

500 × 14.016 = 7,008 GWh

The applicant is required to provide historical data concerning the generation of electricity by that generation complex over the period from 1 July 2008 to 30 June 2010. Note that this may be different to the 'historical energy' determined by reference to the nameplate rating (as the generation complex may not have been in service for the entire 2 year period).

Emissions intensity - The applicant is required to provide historical information concerning the emissions produced by the generation complex over the period 1 July 2008 to 30 June 2010.

Calculation of the annual assistance factor - Assume that actual electricity generated is 3,750 GWh, with the production of 4,000 kt of CO2-e over the two year period in question.

Based on these estimates, the department's estimate of the generation complex's emissions intensity would be:

4,000 kt of CO2-e per GWh / 3,750 GWh = 1.067 kt of CO2-e per GWh

Accordingly, the generation complex's annual assistance factor will be:

7,008 x (1.067- 0.86) = 1,450.656

Information requirements relating to the annual assistance factor

Applicants must provided detailed information, documents and reports with the application to allow the department to calculate an annual assistance factor in respect of a generation complex.

These requirements are set out in Section E and Section F of the combined application form.

Part 8: Audit Information

Audit requirements

The Regulations establish specific requirements for audit reports that must accompany applications for coal-fired generation assistance (free carbon units). These same requirements are set out in the combined application form and apply to the audit report that must accompany applications for coal-fired generation assistance (cash payments). The requirements of the audit report established in the Regulations are (in summary):

  • an audit of the application must be done by a registered auditor; a company authorised under section 1299C of the Corporations Act 2001 or a person registered under section 1280 of the Corporations Act 1999 ; or a registered greenhouse and energy auditor who is registered in Category 2 or 3 under the National Greenhouse and Energy Reporting Regulations 2008;
  • the auditor must be independent to the extent that a conflict of interest (as defined by the National Greenhouse and Energy Reporting Regulations 2008) does not arise in relation to the auditing of the application;
  • the audit must be done in accordance with the reasonable assurance framework set out in the National Greenhouse and Energy Reporting (Audit) Determination 2009 (the Audit Determination), except that the definition of misstatement in the Audit Determination to the Act or the Regulations is to be read as a reference to the Clean Energy Act 2011 and the Clean Energy Regulations 2011;
  • the audit report must set out the auditor's opinion as to whether:
    • the application properly presents, in all material respects, the historical energy of the generation complex (see section 167 of the Act); and
    • the application properly presents, in all material respects, the emissions intensity of the generation complex (see section 168 of the Act); and
    • the application discloses, in all material respects, the basis on which the historical energy and emissions intensity have been estimated; and
    • the generation complex passes the generation complex assistance eligibility test (see section 166 (2) of the Act).

Where the auditor within the audit report includes a qualified reasonable assurance conclusion, an adverse conclusion or a conclusion that the registered auditor is unable to form an opinion about the matter being audited (in the terms of paragrahs 3.17 (1) (c) or (d) of the Audit Determination), the applicant is required to provide comment on the auditor's conclusion.

Information requirements relating to audit information

The information, document and report requirements relating to audit information are set out in Section G of the combined application form.

Part 9: Issuing Assistance

Determining the quantum of assistance in respect to individual generation complexes

The total quantum of cash payments is capped at $1 billion. Cash payments are allocated in respect of individual eligible generation complexes based on the follow formula:

Represents an equation. Annual assistance factor specified in an individual certificate of eligibility for coal-fired generation assistance (cash payments), over, total annual assistance factors specified in all certificates of eligibility for coal-fired generation assistance (cash payments), times, one billion dollars.

Issuing cash payments

The department will assess each application against the eligibility requirements to determine whether a certificate of eligibility for coal-fired generation assistance (cash payments) can be issued in relation to the relevant generation complex and, if so, what the annual assistance factor for each certificate should be based on the specified formula.

Calculating the amount of a cash payment for a particular generation complex

Examples 7.1 and 7.2 provide calculations of annual assistance factors for two hypothetical generation complexes. These generation complexes, 'Generation complex A' and 'Generation complex B', had annual assistance factors of 6,240 and 1,450.656 respectively. Other generation complexes are likely to be found to be eligible for assistance, and to be issued certificates of eligibility for coal-fired generation assistance (cash payments) containing annual assistance factors. For example, these annual assistance factors, including those of Generation complex A and Generation complex B, might add up to 39,100.000. In this case, Generation complex A and Generation complex B would receive cash payments:

Generation complex A = (6240 / 39,100) x $1 billion
= $159.6 million

Generation complex B = (1 450.646 / 39,100) x $1 billion
= $37.1million

Determining the entity to receive cash payments

The department will determine the entity to receive cash payments based on the criteria established under the Act for determining the liability for emissions. This reflects the Government's policy that cash payments are delivered in 2011-12 in relation to eligible generation complexes instead of free carbon units in 2012-13.

Under Part 8 of the Act, free carbon units are issued to the entity that was liable for the emissions created from the operation of the generation complex as of the end of the previous financial year. Cash payment for a particular generation complex will be made by the department to the entity or entities that, in the department's opinion, would have been liable for the emissions created from the operation of that complex at 30 June 2011 assuming that a carbon price had been in place for the 2010-11 financial year. In making an application the applicant acknowledges that a person other than the applicant may be the recipient of the cash payment. The department expects that the recipient is most likely to be an entity that owns, controls or operates the generation complex that is the subject of the application. An applicant is required to identify all such entities in the application.

The department will inform the applicant and proposed recipient of its interim decision on the entity to which the cash payment will be made prior to making a final decision. In making an application, an applicant acknowledges that the department's final decision on the entity to receive the payment is final and not subject to review.

Provision of information that may assist in determining the recipient of assistance

Applicants may provide information to accompany their application that they believe could be of assistance to the department in determining the entity that would have been liable for the emissions had a carbon price been in place through the 2010-11 financial year. Provision of such information is not mandatory.

Receiving assistance

Recipients of cash payments will be required to enter into a deed with the department before the cash payment is made. Recipients will also be required to advise the department in writing of appropriate banking details prior to payment. Upon receipt of the electronic funds transfer the department will require written acknowledgement from the recipient.

Interaction with the Contract for Closure program

The Department of Resources, Energy and Tourism is separately managing the Contract for Closure program.

Any closure payment under a Contract for Closure will be additional to the Energy Security Fund transitional assistance to which a generation complex is entitled.

In the event that a Contract for Closure is successfully negotiated in relation to a generation complex or part thereof, the transitional assistance entitlement for that generation complex will be provided under the terms of the Contract for Closure. This potentially allows greater flexibility in the delivery of transitional assistance, including timing of the payment of that assistance and the replacement of some or all of the free carbon units provided under the transitional assistance arrangement with cash payments (as part of any negotiated outcome).

It is anticipated that the Contract for Closure would provide that Energy Security Fund Cash Payments be made by the department in accordance with these guidelines rather than being combined with the Contract for Closure process given that the timing of the two processes is closely aligned.

Part 10: Important Information

INFORMATION USE AND DISCLOSURE

Information requirements

Together with the combined application form, these guidelines, implement the Government?s policy in relation to cash payments to coal-fired generators and specify certain information, documents and reports to be provided as part of applications to the department. These are the same requirements as set out in the Regulations for making an application for a certificate of eligibility for coal-fired generation assistance (free carbon units).

The cash payment component of Government's assistance to coal-fired generators policy is an administrative scheme and does not have a specific legislative basis. The free carbon unit component of that policy is given effect by the Act with details of application requirements set out in the Regulations . These two measures both use the combined application form. The following table provides an outline of the suite of documentation available to inform the application process.

Applicants must note that the provision of false or misleading information in an application is an offence under Division 137 of the Criminal Code Act 1995 (the Criminal Code).

TABLE 10.1 Key documents relevant to the Energy Security Fund Cash Payments
Guidelines Acts Regulations Other Information Documents Documents for Application
  • Certificate of eligibility for coal-fired generation assistance (cash payments)
  • Part 8, Clean Energy Act 2011
  • National Greenhouse and Energy Reporting Act 2007
  • Clean Energy Regulations 2011
  • National Greenhouse and Energy Reporting Regulations 2008
  • National Greenhouse and Energy Reporting (Audit) Determination 2009
  • National Greenhouse and Energy Reporting (Measurement) Determination 2008
  • Explanatory Memorandum to the Clean Energy Act 2011
  • Discussion Paper on the coal-fired electricity generation regulations
  • Combined application form
  • NGER Reports: 1 July 2008 to 30 June 2009 and 1 July 2009 to 30 June 2010
  • Audit report
  • Other documents used in the application to calculate historical energy or emissions intensity

Privacy

The information in the application form may include personal information, that is, information or an opinion about an individual whose identity is apparent, or can reasonably be ascertained. Information provided to the department is handled in accordance with the Commonwealth Privacy Act 1988.

Information collected in the combined application form will be used for determining eligibility for a certificate of eligibility for coal-fired generator assistance (cash payments) and for related purposes. The application form, including any personal information, may also be disclosed to the Regulator to assist in determining an application for a certificate of eligibility for coal-fired generation assistance (free carbon units). In certain circumstances personal information in the application form may be disclosed to the Treasury and the Energy Security Council and the Department of Resources, Energy and Tourism in connection with determining eligibility for loan programs under the Energy Security Package and in connection with the Contract for Closure Program.

For more information on how personal information is handled, refer to the full privacy statement.

Confidentiality

Subject to these guidelines, the department will treat applications as confidential.

The department will not be taken to have breached any obligation to keep information provided by applicants confidential to the extent that the information:

  1. is used in accordance with these guidelines;
  2. is shared by the department to its advisers, officers, employees or subcontractors, or with another Commonwealth agency, in order to assess the applications or where this otherwise serves the Commonwealth's legitimate interests;
  3. is disclosed to a Minister;
  4. in response to a request by a House or a Committee of the Parliament of the Commonwealth of Australia;
  5. is authorised or required by law to be disclosed; or
  6. is in the public domain otherwise than due to a breach of the relevant obligations of confidentiality.

All applications become the property of the department upon submission. Ownership of intellectual property in the information contained in an application remains unchanged. However, the department may use any material contained in an application, or otherwise provided by the applicant, for the purposes of assessing the applications.

If an application is subsequently made in relation to the same generation complex for a certificate of eligibility for coal-fired generation assistance (free carbon units) under section 162 of the Clean Energy Act 2011, the department may provide the application for a certificate of eligibility for coal-fired generation assistance (cash payments) and all information, documents and reports submitted with that application, and any assessment of that material, to the Regulator for the purpose of assisting the Regulator to determine the application for a certificate of eligibility for coal-fired generation assistance (free carbon units).

The application form also allows for consent to be given for certain information to be provided by the department to other agencies as specified in the following circumstances:

  • the department providing the application form and all information, documents and reports submitted with the application, and any assessments of that material, to the Treasury and the Energy Security Council for the purpose of determining eligibility for loan programs under the Energy Security Package; and
  • the department providing the application form and all information, documents and reports submitted with the application, and any assessments of that material to the Department of Resources, Energy and Tourism for the purpose of determining eligibility for the generation complex to participate in the Contract for Closure program.

Publication

The department will publish a copy of each certificate of eligibility for coal-fired generation assistance (cash payments) on the department's website as soon as practical after issue. The certificate will state the annual assistance factor in respect of the generation complex. The department will also publish on its website the following information:

  • the name of the applicant; and
  • the name of the relevant generation complex; and
  • the name of the person to which cash payments will be made in relation to generation complex; and
  • the amount of the cash payment.

By making an application for a certificate of eligibility for coal-fired generation assistance (cash payments), the applicant is consenting to the publication of the above information.

Tax treatment

Applicants will need to consider the taxation implications of applying for a certificate of eligibility for coal-fired generation assistance (cash payments), including the recipient of payments.

Review rights

Decisions by the department in relation to issuing a certificate of eligibility for coal-fired generation assistance (cash payments) or the determination of the amount of cash payment are not subject to review. This includes, but is not limited to, decisions on:

  • whether the application is 'mutually exclusive';
  • whether the generation complex passes the generation complex assistance eligibility test;
  • the issue of a certificate of eligibility for coal-fired generation assistance (cash payments);
  • the carbon dioxide equivalence of emission number;
  • the historical energy number;
  • the gigawatt hours of electricity generated number;
  • the annual assistance factor within a certificate of eligibility for coal fired generation assistance;
  • the total annual assistance factors specified in all certificates of eligibility for coal-fired generation assistance (cash payments)
  • the share of assistance; and
  • the recipient of cash payments.

Communicating with the department

All communication with the department in relation to an application for a certificate of eligibility for coal fired generation assistance (cash payments) must be made to the following contact:

Brad Archer
Assistant Secretary, Energy Markets and Renewables Branch
Department of Climate Change and Energy Efficiency
Email: Energy Security Fund
Telephone: +61 2 6159 7592

Where the department receives a question that raises an issue of significance to all potential applicants, the department will, subject to the following, send the question and response to all potential applicants that have registered with the department to receive email updates by email. Questions that relate specifically to a potential applicant's individual commercial circumstance will be answered confidentially.

Potential applicants are strongly encouraged to communicate with the department to ensure timely responses can be provided, and may register to receive email updates.

Part 11: Key Definitions

Terms used within this document have defined meanings. Important definitions used within these guidelines are:

ABN has the same meaning as in the A New Tax System (Australian Business Number) Act 1999

Act means the Clean Energy Act 2011

Annual Assistance Factor means the annual assistance factor determined in accordance with section 167 of the Act

Appropriate energy market operator in relation to a generation complex, means:

  1. if Australian Energy Market Operator Limited (ACN 072 010327) performs the functions of the energy market operator in the place where the generation complex is located?Australian Energy Market Operator Limited; and
  2. if the Independent Market Operator established under the Electricity Industry (Independent Market Operator) Regulations 2004 of Western Australia performs the functions of the energy market operator in the place where the generation complex is located?the Independent Market Operator

Carbon dioxide equivalence of emissions has the same meaning as section 168 of the Act—the total number of kilotonnes of the carbon dioxide equivalence of the greenhouse gases emitted from the combustion of fuel in the generation complex for the purposes of the generation of electricity

Carbon unit means a unit issued under section 94 of the Act

Certificate of eligibility for coal-fired generation assistance (cash payments) means a certificate issued by the department under these guidelines

Certificate of eligibility for coal-fired generation assistance (free carbon units) means a certificate issued by the Regulator under section 165 of the Act.

Controlling corporation has the same meaning as in the National Greenhouse and Energy Reporting Act 2007

Department means the Department of Climate Change and Energy Efficiency

Eligible Financial year means

  1. The financial year beginning 1 July 2010

Emissions Intensity has the meaning given by section 168(1) or (2) of the Act

Facility has the same meaning as in the NGER Act

Free carbon units means carbon units issued free of charge.

Generation complex means:

  1. a generation unit; or
  2. a set of 2 or more generation units at the same location

Generation complex assistance eligibility test means the test established under section 166(2) of the Act

Generation unit means a generator of electricity, and includes:

  1. the boiler (if any); and
  2. any other related equipment essential to the generator's functioning as a generator.

Gigawatt hours of electricity generation has the same meaning as section 168 of the Act

Greenhouse gas has the same meaning as in the NGER Act

Historical Energy has the same meaning as section 167 of the Act

Liable entity means a person who, under section 20a provision of the Act, is a liable entity

Nameplate rating of a generation complex means:

  1. if the appropriate energy market operator is Australian Energy Market Operator Limited (ACN 072 010 327)—the maximum generation capacity in megawatts of the generation complex, published by Australian Energy Market Operator Limited as at 1 July 2010; and
  2. if the appropriate energy market operator is the Independent Market Operator established under the Electricity Industry (Independent Market Operator) Regulations 2004 of Western Australia?the maximum generation capacity in megawatts of the generation complex specified in a written determination made by the Department for the purposes of this paragraph.

NGER Act means the National Greenhouse end Energy Reporting Act 2007

Person means any of the following:

  1. an individual;
  2. a body corporate;
  3. a trust;
  4. a corporation sole;
  5. a body politic;
  6. a local governing body.

Registry means the Australian National Registry of Emissions Units continued in existence under the Australian National Registry of Emissions Units Act 2011

Registry account has the same meaning as in the Australian National Registry of Emissions Units 2011

Regulations means the Clean Energy Regulations 2011

Regulator means the Clean Energy Regulator

Footnotes

  1. This test is consistent with the test set out in Part 8 Division 3 of the Act for a certificate of eligibility for coal-fired generation assistance (free carbon units).
  2. The capacity of a grid is to be determined in accordance with regulations made for the purposes of subsection 31(3) of the Renewable Energy (Electricity) Act 2000.
  3. This formula is the same as set out in section 167 of the Act in relation to a certificate of eligibility for coal-fired generation assistance (free carbon units).