VEU program legislation

The Victorian Energy Efficiency Target Act 2007 establishes the Victorian Energy Upgrades program and confers responsibilities and powers on us to administer the program. The primary objectives of the VEET Act are to:

• reduce greenhouse gas emissions
• encourage the efficient use of electricity and gas
• encourage investment, employment and technology development in industries that supply goods and services which reduce the use of electricity and gas by consumers.

The VEET Act commenced on 1 January 2009 and provides for the program to operate to the end of 2029.

The VEET Regulations support the VEET Act. These regulations outline:

• the activities included in the program
• the activity requirements
• the conditions and circumstances under which a Victorian energy efficiency certificate (VEEC) cannot be created
• the requirement for us to maintain a Register of Products, listing products which are able to create VEECs under the program
• the power for the commission to make determinations in relation to certain matters
• the shortfall penalty that is applicable where a relevant entity fails to surrender enough certificates to meet their liability under the Act.
• transitional provisions which apply to manage the transition from the 2008 VEET Regulations to the 2018 VEET Regulations
• a list of addresses of premises which are determined to be scheduled activity premises for the purposes of the VEU program. 

The VEU specifications supports the VEET Regulations and specifies:

• the eligible activities under the VEET Regulations. 
• the minimum energy efficiency requirements for these activities
• the methods and variables required to determine the amount of greenhouse gas equivalent emissions reduced by each activity prescribed in the VEET Regulations
• other matters for these activities, where required by the VEET Regulations.

The PBA Regulations also support the VEET Act. These regulations outline project-based activities as an additional prescribed activity.

The PBA Regulations introduced a new specification document, the 'Measurement and Verification in the Victorian Energy Upgrades Program - Specifications'.

This document outlines:

• the requirements for undertaking a project-based activity using the measurement and verification method
• the calculation of greenhouse gas savings (in tonnes) achieved by activities that are carried out according to the measurement and verification method.

The PBA Regulations introduced a further new specification document, the 'Benchmark Rating in Victorian Energy Upgrades - Specifications'. 

This document outlines: 

• the requirements for undertaking project-based activities using the benchmark rating method 
• the calculation of greenhouse gas savings (in tonnes) achieved by activities that are carried out according to the benchmark rating method. 

The VEET Act empowers the commission to make guidelines about any matter required. The guidelines were made to commence from 1 January 2009. The current version took effect on 1 June 2018.

Under 'A New Tax System (Goods and Services Tax) (Exempt Taxes, Fees and Charges) Determination 2009 (No. 2)' the fees listed under Schedule 1, Part 3, Items 8.45 to 8.58 in relation to the program are GST exempt.

Persons who deal in instruments under this program should seek their own legal advice on their tax obligations.