Acquittal Liability? Look To Financial Control

Key Point

• The White Paper provides significantly more flexibility in relation to the allocation of acquittal liability within corporate groups, partnerships and joint ventures than was originally provided under the Green Paper.

Following various submissions by the mining and petroleum industry sectors, the White Paper proposes that in addition to the operational control approach to acquittal liability as set out in the Green Paper, entities may apply to use a financial control approach.

The Green Paper proposed that the allocation of acquittal liability under the CPRS should follow the approach in the National Greenhouse Emissions Reporting Act (NGER Act) by placing acquittal liability with entities which have operational control over covered facilities. Operational control is defined under the NGER Act as the entity which has the power to initiate and implement environment, health, and safety and operating policies. Although this approach provides