Our Compliance Update keeps you informed of activities related to our Compliance and Enforcement Priorities.
Australian Carbon Credit Unit (ACCU) Scheme
Human-induced regeneration gateway audit framework
From 6 May 2023, we will procure gateway audits for all offsets reports from human-induced regeneration (HIR) projects that are subject to regeneration and forest cover attainment checks (gateway checks).
The gateway audits will provide additional information and assurance to satisfy us that all requirements, including forest potential/forest cover attainment, under the HIR method have been met for all the carbon estimation areas (CEAs) included in the relevant offsets report.
If a project receives a qualified or adverse gateway audit opinion, we may use our monitoring and inspection powers to obtain further information. We may also use our regulatory powers to require a project to re-stratify, pause crediting, or refuse a crediting application. Serious non-compliance can lead to further investigation, enforceable undertakings, loss of fit and proper person status, and potential relinquishment of ACCUs. We may also pursue civil action or refer the matters for criminal prosecution.
Independent reviewer appointed for HIR gateway checks
We have engaged Associate Professor (Honorary) Cris Brack from the Australian National University to commence a review of gateway checks for HIR projects.
The regular reviews of gateway checks will provide additional independent assurance on the performance of the HIR project portfolio. Assoc Prof Brack will consider the information and evidence for each project (including evidence from the proponent, gateway audits and our assessment) and come to a view about whether the outcomes of the gateway check are reasonable. The outcomes for each project will also inform our compliance response for individual projects and inform general process improvement for scheme administration.
The outcomes of these reviews will be aggregated and published on our website to provide scheme transparency and confidence in the integrity of the HIR project portfolio.
An initial review report is expected to be published by the end of the year on a subset of already completed gateway checks. A review report will then be prepared approximately every 6 months for projects that subsequently have gateway checks.
Soil carbon issuances
Information provided by ACCU Scheme participants to support claims for ACCUs must be accurate and complete. To support the commencement of ACCU issuances under the 2021 soil carbon method, we have put in place several tools including a new crediting application tool and a net abatement calculator. These tools are designed to ensure that crediting applications include all evidence and assurance required to demonstrate that the method requirements have been met and the number of ACCUs claimed have been calculated in accordance with the method. The applications are then subject to our rigorous review prior to any ACCUs being issued.
Renewable Energy Target (RET)
Importance of correct small-scale technology certificate (STC) assignment
Registered agents must ensure correct STC assignment and creation. Under the law, certificates may only be assigned to an agent by the system owner. Solar system retailers and system owners must ensure that STC assignment information, including agent details, are correct and consistent across all documentation. Registered agents must only create certificates that they have been assigned the right to create by the system owner.
STCs identified with multiple assignments risk being ineligible and consequently failed. Registered agents who create certificates they are not entitled to create may face civil or criminal penalties.
Compliance and enforcement outcomes
We continue to focus on solar photovoltaic system retailers and accredited installers (in the Small-scale Renewable Energy Scheme) providing false and misleading information, particularly in relation to statements made regarding installer on-site attendance. Recent investigations into installers found to have made false and misleading statements have resulted in significant civil penalties and a criminal conviction. We have made it clear to industry that we have zero tolerance for deliberate non-compliance and will take enforcement action against those that do.
Substantial civil penalties
On 13 September 2023, the Federal Court ordered civil penalties totalling $240,000 against a solar retailer and a current and former director of the company. The court found deliberate contraventions of the Renewable Energy (Electricity) Act 2000 (REE Act) in late 2019 and early 2020 by E Connect Solar & Electrical Pty Ltd, Benjamin Airey and Quinton Doody. These resulted from claims that solar panel systems were installed by an accredited installer when in fact they were not. Further information can be found here.
Installer convicted of criminal charges
A second investigation has resulted in the conviction of Mr Aaron Ware, Director of Pedley’s Electrical Services Pty Ltd. Between October 2018 and January 2020, Mr Ware received a financial benefit by falsely claiming to have installed or supervised the installation of 13 solar panel systems when in fact he was overseas. On 4 August 2023, Mr Ware was convicted in the Brisbane Magistrates court and released on a 12- month good behaviour bond. You can read more about it here.
Permanent suspension of Renewable Electricity Certificate (REC) Agent
Registered agents are the primary point of control for correct creation of certificates and must ensure that they are fit and proper to participate in the RET. Failure to meet these requirements can result in the loss of their Renewable Energy (Electricity) Act 2000 (REE Act) Registration and as a result, their REC Registry accounts.
Following a recent fit and proper person assessment of Voltex Trading Pty Ltd, we have permanently suspended its registration and REC Registry account as it is no longer fit and proper under the REE Act.
Completed Enforceable Undertaking - Trina Solar
Trina Solar has completed all commitments with its enforceable undertaking and is no longer subject to any compliance action.
National Greenhouse and Energy Reporting (NGER) Scheme and Safeguard Mechanism
Late reporters and audit outcomes
Registered NGER reporters must ensure that they submit complete and accurate reports by the reporting deadline. Reports for the 2022-23 period are due by 31 October 2023.
For the 2021–22 reporting period onwards, we will publish a list of those who submit a late report if they have a history of late reporting. Late reporters for the 2021-22 reporting period have been published here.
In line with our Compliance Priorities for the 2021-22 NGER reporting period, the 2022-23 audit program focussed on ensuring that reporters in the oil and gas industries reported consistently with legislative amendments applying from that reporting year.
The audit program covered 15% of all oil and gas facilities. No material, systematic issues were identified in those audits. We are engaging with individual reporters to ensure they resolve minor issues that were identified. The 2022-23 NGER reports for these facilities will also be subject to detailed assessment. We may take further action where a clean audit opinion is not provided.
To support reporters submitting accurate and complete NGER reports on time, we have updated our forms and resources. We also held a webinar series.
Scheme auditors
We have recently placed conditions on the registration of auditors who have not demonstrated knowledge of the legislation and obligations related to our schemes. For example, if an auditor does not demonstrate knowledge of the RET legislation, we will place a condition on their registration disallowing them from conducting RET audits.
If you have information on potential fraudulent or non-compliant behaviour, report it today.