Recommendations
Recommendation 1
The Committee recommends that non-plantation native forest wood
products and wood wastes be specifically excluded from the list of eligible
renewable energy sources.
Recommendation 2
The Committee recommends that the Renewable Energy (Electricity)
Bill 2000 be amended to include the list of eligible renewable energy sources,
with the provision for more detailed rules and definitions to be included in
the regulations.
Recommendation 3
The Committee recommends that future reviews of the 2 per cent
measure give consideration to mandating a portfolio of sources, a cap on the
contribution of any one source and/or a measure, which recognises the
greenhouse intensities of particular sources.
Recommendation 4
The Committee recommends that the legislation be amended to ensure
that the shortfall charge is recognised as being a penalty, that it should
clearly not be tax deductible and that it be indexed for CPI increases.
Recommendation 5
The Committee recognises that the penalty may not be adequate to
encourage liable entities to purchase Renewable Energy Certificates rather than
pay the penalty, and/or that it may not deliver a diverse range of
technologies, and recommends that the Government consider increasing the penalty.
Failing that, the Committee recommends that the behaviour of wholesalers be
closely monitored to assess whether they are choosing to pay the charge in lieu
of buying available certificates (i.e. for which generation capacity exists).
Should this be the case, the level of the charge should be increased to a level
at which higher cost renewables, such as wind, will be competitive.
Recommendation 6
The Committee recommends that the time available to liable parties
to make up a certificate shortfall and have the charge refunded be reduced from
3 years to 1 year, and that the refund be discounted by 50 per cent for that
year.
Recommendation 7
The Committee recommends a
regular linear phase-in path of at least 950 GWh each year.
Recommendation 8
The Committee recommends consideration of possible upward revision
of the target be included in future reviews of the 2 per cent renewables
measure, with a view to establishing a world-class renewable energy industry
and increasing the proportion of renewable generation in the years after 2010.
Recommendation 9
The Committee recommends that
the Government consult with the Western Australian Government about the
circumstances of small remote communities in the Pilbara.
Recommendation 10
The Committee recommends the
exclusion of legitimate cogeneration projects from liability under the measure.
Recommendation 11
The Committee recommends that the Bills be amended to provide that
the renewable energy liability cannot be incurred twice for the same block of
energy.
Recommendation 12
The Committee recommends that the Government take steps to ensure
that the renewable electricity generation funded by voluntary contributions to
Greenpower schemes in most states is additional to the annual targets and that
agreement be reached with the states as soon as possible on a process to ensure
that this is the case.
Recommendation 13
The Committee recommends that the Government commences discussions
with the States as soon as possible to develop uniform national codes governing
interconnections to power grids and uniform arrangements for net metering,
which would guarantee a fair price for independent generators.
Recommendation 14
The Committee recommends that the legislation be amended
to provide for a wide-ranging review of the measure to be completed within 3
years. The review should be carried out by an independent person or body and
receive public input to both its inquiry and conclusions.
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