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Client Update: Environment – 3 July 2008
New Bill proposes limits on greenhouse gas emissions
for new WA power stations
In brief: A new
Bill introduced into the Western Australian Parliament by the Greens attempts to
set a greenhouse gas emissions intensity standard for new power stations in
Western Australia. Senior Associate Valeria Cooney and Lawyer Lorna Creewel report.
The Greenhouse Gas Emission Reduction (Power Stations) Bill 2008 (WA) was
introduced into the Western Australian Legislative Council on 5 June 2008 by the
Greens. Its aim is to impose a greenhouse gas emissions intensity standard for
new power stations in Western Australia.
'Greenhouse gas emissions intensity standard' is defined in the Bill to mean
500 kilograms of carbon dioxide equivalent per megawatt hour of electricity sent
out or such other amount as is prescribed by regulation.
A 'new power station' means a power station not in existence, or for which
construction had not commenced on the day the Act comes into operation but does
not include:
- a new power station with a nameplate capacity of 50
megawatts or less, or
- a new peak load power station, being a power station that generates
electricity at times of high electricity demand and operates for less than 20
per cent of each year.
For a 'new power station' the subject of the Bill:
- a person is prohibited from constructing or operating
a new power station unless it is of a class or type determined to meet the
'greenhouse gas emissions intensity standard' (a penalty of $500,000 applies);
and
- no approval or authorisation shall be given to facilitate the construction
or operation of a new power station unless it is of a class or type determined
to meet the 'greenhouse gas emissions intensity standard'.
The Bill also provides that the Minister (proposed to be the Minister for
Climate Change) will determine the classes and types of power stations that do
and do not meet the 'greenhouse gas emissions intensity standard'. Such
determination would be made on the advice of the Environmental Protection
Authority and, in the case of a power station generating electricity from
biomass, net emissions from the process of growing, processing and generating
the electricity from the fuel source will be included in the calculation of the
emissions intensity of the proposed power station.
Debate on the Bill has been adjourned under standing orders. As a Private
Members' Bill, it is uncertain whether the Bill will gain sufficient support to
be passed. However, if enacted it may have a significant impact upon the
feasibility of new power stations in WA. We will therefore issue an update once
the Bill is further debated.
For further information, please contact:
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30/09/08
Release of the Garnaut Climate Change Review Final Report |
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25/09/08
Disclosure of political donations in NSW |
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05/09/08
Targets and trajectories: Garnaut's softly softly approach to emission reduction targets |
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