Carbon Credits (Carbon Farming Initiative—Facilities) Methodology Determination 2015

I, Greg Hunt, Minister for the Environment, make the following determination.

Dated 24 August 2015

Greg Hunt

Minister for the Environment

 

 

 

 

Contents

Part 1—Preliminary

1 Name

2 Commencement

3 Authority

4 Duration

5 Definitions

6 Meaning of baseline period monitoring requirements

7 Meaning of fixed proportion

8 Meaning of ineligible abatement activity

9 Meaning of material effect

10 Meaning of materially similar

11 Meaning of significant expansion

12 Meaning of significant output variable change

Part 2—Facilities projects

13 Facilities projects

Part 3—Project requirements

Division 1—General requirements

14 Operation of this Division

15 Implementation of activities that aim to reduce emissions from a facility

16 Choosing production variables for facilities—output variables

17 Choosing production variables for facilities—inputs and intermediate products

18 Information to be included in application for declaration

Division 2—Additionality requirements

19 Requirement in lieu of newness requirement

Part 4—Net abatement amount

Division 1—Preliminary

20 Operation of this Part

Division 2—Method for calculating net abatement amount

21 Carbon dioxide equivalent net abatement amount

22 Basis of calculation for certain NGER reporting facilities

Division 3—Method for calculating project abatement

23 Summary

24 Timing of calculation

25 Calculation of project abatement

26 Total facility abatement

27 Onsite facility abatement

28 Adjusted onsite facility abatement

Division 4—Method for calculating crediting baseline

29 Summary

30 Crediting baseline (general)

31 Crediting baseline (electricity)

Division 5—Method for calculating baseline emissions intensity

Subdivision A—Baseline emissions intensity

32 Summary

33 Baseline emissions intensity and baseline year

Subdivision B—Calculations relating to emissions intensity

34 Emissions intensity of a production variable

35 Baseline NGER emissions attributable to a production variable

36 Total baseline NGER emissions

37 Apportioning of total baseline NGER emissions

Subdivision C—Recalculating emissions intensity

38 Application of Subdivision

39 Recalculating emissions intensity

40 Recalculating because of a new factor

41 Recalculating because of an input or output purity change

42 Recalculating because of an error

Division 6—Method for calculating NGER emissions

43 Summary

44 NGER emissions (general)

45 NGER emissions (electricity)

Division 7—Method for calculating electricity abatement adjustments

Subdivision A—Electricity abatement adjustment A

46 Summary

47 Application of Subdivision

48 Calculation of electricity abatement adjustment A

49 Additional electricity exported as a result of improved thermal efficiency of existing generating units

Subdivision B—Electricity abatement adjustment B

50 Summary

51 Application of Subdivision

52 Calculation of electricity abatement adjustment B

53 Emissions intensity of electricity generated using new generating units and exported from a facility

54 Electricity generated using new generating units and exported from a facility

Division 8—General calculations relating to electricity

55 Baseline emissions intensity of electricity generated using existing generating units and exported from a facility

56 Emissions intensity of electricity generated using existing generating units and exported from a facility

57 Emissions intensity of electricity generated using replaced generating units and exported from a facility

58 Total emissions from exported electricity

59 Emissions apportioned to electricity generated using new or existing generating units and exported from a facility

60 Emissions apportioned to electricity generated by a CHP plant

61 Quantity of heat and cooling generated

62 Thermal efficiency of electricity, heat and cooling generation

Part 5—Reporting, record keeping and monitoring requirements

Division 1—Offsets report requirements

Subdivision A—Requirements relating to timing

63 Operation of this Subdivision

64 Timing for final offsets report

Subdivision B—Information that must be included in an offsets report

65 Operation of this Subdivision

66 Information about new production variables

67 Information about biomass used to produce energy, and imported offgrid electricity, heat and cooling generated from biomass

68 Information about greenhouse gas emissions, energy production and energy consumption

69 Information about facilities

70 Determination of certain parameters

Division 2—Notification requirements

71 Operation of this Division

72 Notification requirements

Division 3—Recordkeeping requirements

73 Operation of this Division

74 Recordkeeping requirements

Division 4—Monitoring requirements

75 Operation of this Division

76 Requirement to monitor greenhouse gas emissions, energy production and energy consumption

77 Requirement to monitor abatement activities implemented

78 Requirement to monitor changes relating to operation of a facility

79 Requirement to monitor production variables etc.

80 Requirement to monitor exported electricity

81 Consequences of not meeting certain monitoring requirements

Part 6—Dividing a facilities project

82 Operation of this Part

83 Requirements for division of project

Schedule 1—Industry average emissions intensities

1 Industry average emissions intensities

Part 1Preliminary

 

1  Name

  This is the Carbon Credits (Carbon Farming Initiative—Facilities) Methodology Determination 2015.

2  Commencement

 (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this instrument

The day after this instrument is registered.

 

Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

 (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3  Authority

  This determination is made under subsection 106(1) of the Carbon Credits (Carbon Farming Initiative) Act 2011.

4  Duration

  This determination remains in force for the period that:

 (a) begins when this determination commences; and

 (b) ends on the day before this determination would otherwise be repealed under subsection 50(1) of the Legislative Instruments Act 2003.

5  Definitions

  In this determination:

Act means the Carbon Credits (Carbon Farming Initiative) Act 2011.

Allocation of Emissions from a CHP Plant Guide has the meaning given by subsection 62(2).

amendment Act has the meaning given by subsection 19(5).

applicable monitoring requirements, for electricity exported from a facility, means:

 (a) if electricity is a production variable for the facility—the requirements that apply under sections 79 and 80; or

 (b) otherwise—the requirements that apply under section 80.

appropriate abatement estimation approach has the meaning given by subsection 28(6).

baseline period: the baseline period for a facilities project consists of the 4 consecutive NGER reporting years preceding the NGER reporting year in which the first project abatement activity begins to be implemented.

baseline period monitoring requirements has the meaning given by section 6.

baseline year, for a facility, means the baseline year worked out in accordance with section 33 for each of the facility’s production variables.

Note: The baseline year worked out in accordance with that section will be the same year for each of the facility’s production variables.

biomass means organic matter other than:

 (a) fossil fuels; or

 (b) biofuels.

Note 1: Examples of fossil fuels include coal, lignite, petroleum products and natural gas.

Note 2: Examples of biofuels include ethanol and biodiesel.

byproduct means a saleable output that:

 (a) results from a chemical or physical process undertaken by a facility other than for the purpose of producing the output; and

 (b) will be disposed of, by sale or gift, without any further processing by the facility (other than further processing in accordance with standard industry practice).

calculation year has the meaning given by subsection 38(1).

chief financial officer, of a person that has operational control over a facility, means:

 (a) if the person is a body corporate—the chief financial officer (however described) of the body corporate; or

 (b) otherwise—the individual who is primarily responsible for financial matters in relation to the person.

CHP plant (short for combined heat and power plant) means a combined heat and power plant that:

 (a) generates electricity; and

 (b) uses the waste heat resulting from that generation of electricity for heat or cooling or both heat and cooling.

declaration day, for a facilities project, means the day the project is declared to be an eligible offsets project.

default emission factor means an emission factor specified by number (rather than by reference to a method for determining or estimating the factor) in:

 (a) Schedule 1 to the NGER (Measurement) Determination; or

 (b) an NGER measurement method referred to in subsection 1.4(2) of that determination as method 2.

default energy content factor means an energy content factor specified by number (rather than by reference to a method for determining or estimating the factor) in:

 (a) Schedule 1 to the NGER (Measurement) Determination; or

 (b) an NGER measurement method referred to in subsection 1.4(2) of that determination as method 2.

designated metering point, for a generating unit at a facility, means:

 (a) if, at the time of measurement, the generating unit is connected to the national electricity market—the metering point determined under the National Electricity Rules in force at the time of measurement; or

 (b) if paragraph (a) does not apply and a relevant authority of the State or Territory where the generating unit is located has determined a metering point that applies at the time of measurement—the metering point determined by the relevant authority; or

 (c) if neither paragraph (a) nor (b) applies—a metering point that allows electricity that is generated by the generating unit and exported from the facility to be measured at a time that is as close as possible to when the electricity leaves the facility.

displaced electricity:

 (a) for the purposes of equation 18—has the meaning given by subsection 48(2); and

 (b) for the purposes of equation 20—has the meaning given by subsection 52(2).

distribution network means a network or system that is a distribution network or a distribution system under a law that governs the operation of the network or system.

eligible renewable energy source has the same meaning as in the Renewable Energy (Electricity) Act 2000.

essential component, of a generating unit, means the generator of electricity, and any related equipment, that comprise the generating unit.

excluded heat or cooling emissions has the meaning given by subsection 44(3).

excluded NGER fugitive emissions means fugitive emissions to which any of the following provisions of the NGER (Measurement) Determination apply:

 (a) Part 3.2 (fugitive emissions from coal mining);

 (b) Division 3.3.2 (fugitive emissions from venting or flaring from oil or gas exploration activities);

 (c) Subdivision 3.3.3.3 (fugitive emissions from crude oil production (flared));

 (d) Subdivision 3.3.3.4 (fugitive emissions from crude oil production (nonflared));

 (e) Subdivision 3.3.5.2 (fugitive emissions from deliberate releases from process vents, system upsets and accidents during crude oil refining activities);

 (f) Subdivision 3.3.5.3 (fugitive emissions released from gas flared from oil refineries);

 (g) Division 3.3.9 (fugitive emissions from venting or flaring from natural gas production or processing activities);

 (h) Part 3.4 (fugitive emissions from the transport of captured carbon dioxide).

existing generating unit: a generating unit is an existing generating unit for a facility during an NGER reporting year if:

 (a) the generating unit was used to generate electricity at the facility during the baseline year; and

 (b) the generating unit is used to generate electricity at the facility during the NGER reporting year; and

 (c) no essential component of the generating unit has been added, removed or replaced after the end of the baseline year.

facilities project has the meaning given by subsection 13(2).

facility has the same meaning as in the NGER Act.

facility site means a site at which an activity that is part of a facility is undertaken.

facilityspecific apportioning metric has the meaning given by subsection 37(5).

fixed proportion has the meaning given by section 7.

generating unit means the generator of electricity and all related equipment that is essential to its functioning as a single entity.

Global Warming Potential means a Global Warming Potential for a greenhouse gas, mentioned in regulation 2.02 of the NGER Regulations.

heat means heating or steam.

higher method has the same meaning as in the NGER (Measurement) Determination.

ineligible abatement activity has the meaning given by section 8.

input means anything that undergoes a chemical or physical process to produce an intermediate product or an output.

input or output purity change has the meaning given by subsection 38(3).

input purity means the percentage of the total quantity of an input that represents, or is required to produce, the key substance of value in the output produced from the processing of the input.

intention notice time has the meaning given by subsection 19(5).

intermediate product means a product that:

 (a) results from a chemical or physical process undertaken by a facility using one or more inputs; and

 (b) is then used as an input for the production of an output at the same facility.

Jobs and Competitiveness Program means the Jobs and Competitiveness Program that was in force under the Clean Energy Act 2011 immediately before the repeal of that Act by item 1 of Schedule 1 to the Clean Energy Legislation (Carbon Tax Repeal) Act 2014.

lower method has the same meaning as in the NGER (Measurement) Determination.

major change: a facility undergoes a major change during an NGER reporting year if, during the NGER reporting year:

 (a) the facility undergoes rampup; or

 (b) a major disruption to production occurs at the facility; or

 (c) the facility undergoes a significant expansion; or

 (d) the facility undergoes a significant output variable change.

major disruption to production: a major disruption to production occurs at a facility during an NGER reporting year (the disruption year) if:

 (a) a maintenance activity or a plant shutdown (a disrupting activity) occurs at the facility during the disruption year; and

 (b) there is a change of 10% or more in the emissions intensity of a production variable for the facility for the disruption year when compared with the emissions intensity of the variable for:

 (i) the NGER reporting year that immediately precedes the disruption year; or

 (ii) the NGER reporting year that immediately follows the disruption year.

material effect has the meaning given by section 9.

material emissions source means an emissions source that, on its own or in combination with one or more other emissions sources, has a material effect on project abatement.

materially similar has the meaning given by section 10.

National Electricity Rules means the National Electricity Rules, as in force from time to time, made under the National Electricity Law set out in the Schedule to the National Electricity (South Australia) Act 1996 (SA).

NEM standard metering means the standard of metering mentioned in the National Electricity Rules.

new factor has the meaning given by subsection 38(2).

new generating unit: a generating unit is a new generating unit for a facility during an NGER reporting year if:

 (a) the generating unit includes an essential component that:

 (i) was not used by the generating unit to generate electricity at the facility during the baseline year; and

 (ii) is used by the generating unit to generate electricity at the facility during the NGER reporting year; or

 (b) the following apply:

 (i) the generating unit uses electricity generating equipment (the shared equipment) that either is also used by an existing generating unit at the facility or, if electricity is the only production variable for the facility, is not part of a generating unit at the facility;

 (ii) the shared equipment was not used to generate electricity at the facility during the baseline year;

 (iii) the shared equipment is used to generate electricity at the facility during the NGER reporting year;

 (iv) the emissions resulting from, or required to operate, the shared equipment in the NGER reporting year are at least 10 000 tonnes CO2e or at least 5% of the total emissions associated with any generating unit that uses the shared equipment.

NGA Factors document means the document entitled “National Greenhouse Accounts Factors”, published by the Department and as in force from time to time.

NGER Act means the National Greenhouse and Energy Reporting Act 2007.

NGER facility level emissions data, for a facility, means data about the greenhouse gas emissions from the facility that is included in an NGER report about the operations of the facility.

NGER (Measurement) Determination means the National Greenhouse and Energy Reporting (Measurement) Determination 2008.

NGER measurement method means a method that:

 (a) the NGER (Measurement) Determination provides for the measurement of greenhouse gas emissions; and

 (b) is referred to in subsection 1.4(2) of that determination as method 1, method 2, method 3 or method 4.

NGER Regulations means the National Greenhouse and Energy Reporting Regulations 2008.

NGER report means a report about the operations of a facility that is required to be provided to the Regulator under any of the following sections of the NGER Act:

 (a) section 19;

 (b) section 22G;

 (c) section 22X.

NGER reporting year means a financial year.

nonmonitored period has the meaning given by subsection 81(1).

officer, of a person that has operational control over a facility, means:

 (a) if the person is an individual—the individual; or

 (b) otherwise—an individual who:

 (i) makes, or participates in making, decisions that affect the whole, or a substantial part, of the business or affairs of the person; or

 (ii) has the capacity to affect significantly the person’s financial standing.

operational control has the same meaning as in the NGER Act.

output means a product that is the last product resulting from a chemical or physical process undertaken by a facility using one or more inputs or intermediate products.

output purity means the percentage of the total quantity of an output that represents the key substance of value in the output.

output variable: a product that is produced or processed by a facility is an output variable for the facility if:

 (a) the product is the last saleable output from a chemical or physical process undertaken by the facility; and

 (b) an increase in the quantity of the product produced or processed by the facility would result in an increase in the quantity of greenhouse gas emissions from the facility; and

 (c) a decrease in the quantity of the product produced or processed by the facility would result in a decrease in the quantity of greenhouse gas emissions from the facility; and

 (d) the quantity of the product can be expressed in a unit of measurement that complies with the National Measurement Act 1960; and

 (e) the product is not an intermediate product, a byproduct or a waste product.

person:

 (a) before 1 July 2016—means a group entity within the meaning of the NGER Act; and

 (b) on and after 1 July 2016—has the same meaning as in the NGER Act.

plant shutdown: a plant shutdown occurs at a facility during an NGER reporting year if all or part of the facility is not in operation for a period during the NGER reporting year.

production variable, for a facility, means an output variable, input or intermediate product chosen to be a production variable for the facility in accordance with section 16 or 17.

production variable data, for a facility to which a facilities project relates, means data about the quantity and purity of each production variable that is produced or processed by the facility during an NGER reporting year, being data that is collected as a result of the variable being monitored in accordance with:

 (a) if the NGER reporting year is in a reporting period for the project—the reporting period monitoring requirements for the variable; or

 (b) otherwise—the baseline period monitoring requirements for the variable.

project abatement activity has the meaning given by subsection 13(3).

rampup: a facility undergoes rampup until production at the facility reaches 50% of the facility’s productive capacity over a 6month period for the first time.

replaced generating unit: a generating unit is a replaced generating unit for a facility during an NGER reporting year if:

 (a) in the baseline year, the generating unit included an essential component that:

 (i) was used by the generating unit to generate electricity at the facility during the baseline year; and

 (ii) is not used by the generating unit to generate electricity at the facility during the NGER reporting year; or

 (b) the generating unit includes an essential component that:

 (i) was not used by the generating unit to generate electricity at the facility during the baseline year; and

 (ii) is used by the generating unit to generate electricity at the facility during the NGER reporting year; or

 (c) the following apply:

 (i) in the baseline year, the generating unit used electricity generating equipment (the shared equipment) that either was also used by an existing generating unit at the facility or, if electricity is the only production variable for the facility, was not part of a generating unit at the facility;

 (ii) the shared equipment was used to generate electricity at the facility during the baseline year;

 (iii) the shared equipment is not used to generate electricity at the facility during the NGER reporting year;

 (iv) the emissions resulting from, or required to operate, the shared equipment in the NGER reporting year would have been at least 10 000 tonnes CO2e or at least 5% of the total emissions associated with any generating unit that uses the shared equipment.

reported electricity imports, for a facility during an NGER reporting year, means the quantity of purchased electricity that was consumed by the facility during the NGER reporting year, as reported to the Regulator:

 (a) in an NGER report; or

 (b) in an offsets report in accordance with section 68.

reported scope 1 emissions, for a facility during an NGER reporting year, means the quantity of scope 1 emissions from the facility during the NGER reporting year, as reported to the Regulator:

 (a) in an NGER report; or

 (b) in an offsets report in accordance with section 68.

reported scope 2 emissions, for a facility during an NGER reporting year, means the quantity of scope 2 emissions from the facility during the NGER reporting year, as reported to the Regulator:

 (a) in an NGER report; or

 (b) in an offsets report in accordance with section 68.

reporting period monitoring requirements, for a production variable for a facility, means:

 (a) if the variable is not electricity exported from the facility—the requirements that apply to the variable under section 79; or

 (b) if the variable is electricity exported from the facility—the requirements that apply to the variable under sections 79 and 80.

scope 1 emission has the same meaning as in the NGER Act.

scope 2 emission has the same meaning as in the NGER Act.

shared equipment means electricity generating equipment mentioned in subparagraph (b)(i) of the definition of new generating unit or subparagraph (c)(i) of the definition of replaced generating unit.

significant expansion has the meaning given by section 11.

significant output variable change has the meaning given by section 12.

similar input has the meaning given by subsection 17(4).

similar intermediate product has the meaning given by subsection 17(4).

similar output variable has the meaning given by subsection 16(2).

single site has the same meaning as in the NGER Regulations.

statement of activity intent, for a facility to which a project relates, means a statement, in a form approved by the Regulator for the purpose of this definition, that all project abatement activities that the project proponent intends to implement (or has implemented) at the time the statement is made would not be (or would not have been) implemented at the facility during the crediting period for the project in the absence of a declaration of the project as an eligible offsets project.

substitute newness requirement has the meaning given by subsections 19(2) and (3).

transmission network means a network or system that is a transmission network or a transmission system under a law that governs the operation of the network or system.

transport facility has the same meaning as in the NGER Regulations.

waste product means an output that:

 (a) results from a chemical or physical process undertaken by a facility other than for the purpose of producing the output; and

 (b) will be disposed of without any further processing by the facility (other than further processing in accordance with standard industry practice); and

 (c) is not a byproduct.

6  Meaning of baseline period monitoring requirements

 (1) The baseline period monitoring requirements, for a production variable for a facility that is not electricity exported from the facility, are as follows:

 (a) the variable must have been monitored in the same manner during each NGER reporting year in the baseline period;

 (b) the quantity and purity of the variable produced or processed by the facility during the baseline period must have been measured at a time that is as close as possible to when the variable entered, or left, the production or processing process.

 (2) The baseline period monitoring requirements, for a production variable for a facility that is electricity exported from the facility, are the requirements mentioned in subsection (1), subject to the following:

 (a) if all generating units at the facility had the same designated metering point during the baseline period, the quantity of electricity generated at the facility and exported from the facility must have been measured:

 (i) in megawatt hours, at the designated metering point; and

 (ii) at any time during the baseline period when the facility was connected to the national electricity market, using NEM standard metering;

 (b) if not all generating units at the facility had the same designated metering point during the baseline period, the quantity of electricity generated by a generating unit at the facility and exported from the facility must have been measured:

 (i) in megawatt hours, at the generating unit’s designated metering point; and

 (ii) at any time during the baseline period when the generating unit was connected to the national electricity market, using NEM standard metering;

 (c) at any time during the baseline period when a generating unit at the facility was not connected to the national electricity market, the quantity of electricity generated by the generating unit and exported from the facility must have been measured using metering that allows the Regulator to determine the total quantity of the exported electricity;

 (d) the quantity of electricity generated by particular generating units at the facility must have been measured using equipment that allows the total quantity of exported electricity to be apportioned to each particular generating unit.

7  Meaning of fixed proportion

During the baseline period

 (1) Two inputs, or 2 intermediate products, are used by a facility to which a facilities project relates in a fixed proportion to each other during the project’s baseline period if there is no more than a 5% difference between:

 (a) the ratio of the amount of one of those inputs, or intermediate products, to the amount of the other input, or intermediate product, used by the facility during an NGER reporting year in the baseline period; and

 (b) the ratio of the amount of one of those inputs, or intermediate products, to the amount of the other input, or intermediate product, used by the facility during any other NGER reporting year in the baseline period.

 (2) An output is produced by a facility to which a facilities project relates in a fixed proportion to an input or intermediate product during the project’s baseline period if there is no more than a 5% difference between:

 (a) the ratio of the amount of the output produced, to the amount of the input or intermediate product used, by the facility during an NGER reporting year in the baseline period; and

 (b) the ratio of the amount of the output produced, to the amount of the input or intermediate product used, by the facility during any other NGER reporting year in the baseline period.

During a reporting period

 (3) Two inputs, or 2 intermediate products, are used by a facility to which a facilities project relates in a fixed proportion to each other during a reporting period if there is no more than a 5% difference between:

 (a) the ratio of the amount of one of those inputs, or intermediate products, to the amount of the other input, or intermediate product, used by the facility during an NGER reporting year in the reporting period; and

 (b) the ratio of the amount of one of those inputs, or intermediate products, to the amount of the other input, or intermediate product, used by the facility during any other NGER reporting year in the reporting period or in the project’s baseline period.

 (4) An output is produced by a facility to which a facilities project relates in a fixed proportion to an input or intermediate product during a reporting period if there is no more than a 5% difference between:

 (a) the ratio of the amount of the output produced, to the amount of the input or intermediate product used, by the facility during an NGER reporting year in the reporting period; and

 (b) the ratio of the amount of the output produced, to the amount of the input or intermediate product used, by the facility during any other NGER reporting year in the reporting period or in the project’s baseline period.

8  Meaning of ineligible abatement activity

 (1) An abatement activity that is in operation at a facility to which a facilities project relates is an ineligible abatement activity for the project if:

 (a) the activity is ineligible for the project under subsection (2), (3), (4) or (5); and

 (b) one of the following applies:

 (i) the activity was in operation at the facility for only part of the baseline year;

 (ii) the activity was not in operation at the facility for any part of the baseline year;

 (iii) the activity was in operation at the facility for the whole of the baseline year and there is an increase in abatement from the activity during an NGER reporting year in a reporting period for the project that has a material effect on the project abatement for the project for the NGER reporting year.

 (2) An abatement activity is ineligible for the project under this subsection if:

 (a) the activity is being implemented at the facility as part of another eligible offsets project; or

 (b) the activity was, at any time in the past, implemented at the facility as part of another eligible offsets project and the crediting period for the other project, or if the other project has more than one crediting period, the last crediting period for the other project, has ended.

 (3) An abatement activity is ineligible for the project under this subsection if:

 (a) were the activity to be implemented as a separate offsets project, the activity:

 (i) would not meet the additionality requirements under subsection 27(4A) of the Act; or

 (ii) would be an excluded offsets project; or

 (iii) would be a project covered by the Carbon Credits (Carbon Farming Initiative—Landfill Gas) Methodology Determination 2015; and

 (b) the operation of the activity at the facility, on its own or in combination with one or more activities of a kind mentioned in this subsection or subsection (4) or (5), has a material effect on the project abatement for the project for an NGER reporting year during which the activity is in operation.

 (4) An abatement activity is ineligible for the project under this subsection if:

 (a) the activity results in an increase in the excluded NGER fugitive emissions for the facility; and

 (b) the operation of the activity at the facility, on its own or in combination with one or more activities of a kind mentioned in this subsection or subsection (3) or (5), has a material effect on the project abatement for the project for an NGER reporting year during which the activity is in operation.

 (5) An abatement activity is ineligible for the project under this subsection if:

 (a) the amount by which the activity increases emissions outside the boundary of the facility is more than the amount by which the activity decreases emissions outside the boundary of the facility; and

 (b) were the activity to cause the same overall increase in emissions inside the boundary of the facility, the activity would, on its own or in combination with one or more activities of a kind mentioned in this subsection or subsection (3) or (4), have a material effect on the project abatement for the project for an NGER reporting year during which the activity is in operation; and

 (c) the activity is not an input or output purity change.

 (6) For the purposes of paragraph (5)(a), the following are not to be taken into account in determining whether the amount by which an activity increases emissions outside the boundary of a facility (the relevant facility) is more than the amount by which the activity decreases emissions outside the boundary of the relevant facility:

 (a) increases or decreases in emissions associated with:

 (i) the extraction, transportation, transmission or distribution of fuel to the relevant facility; or

 (ii) the production and installation of new equipment at the relevant facility; or

 (iii) the sale or other disposal of equipment removed from the relevant facility; or

 (iv) the transportation, transmission, distribution, storage, consumption or disposal, outside the relevant facility, of a production variable for the relevant facility; or

 (v) the disposal of waste from the relevant facility;

 (b) increases or decreases in emissions that occur at another facility as a result of changes in the importation or exportation of electricity, heat or cooling from the relevant facility, if the emissions are:

 (i) scope 1 emissions of a category mentioned in subsection 1.3(4) of the NGER (Measurement) Determination; or

 (ii) emissions associated with electricity consumption at the other facility; or

 (iii) emissions of a kind mentioned in paragraph (a) that occur at the other facility;

 (c) decreases in emissions that have, or will be, used to calculate:

 (i) the carbon dioxide equivalent net abatement amount for another eligible offsets project; or

 (ii) the abatement associated with an activity that would not meet the additionality requirements under subsection 27(4A) of the Act if the activity were implemented as a separate offsets project;

 (d) increases or decreases in emissions associated with the use of an eligible renewable energy source used by the relevant facility to produce a production variable, electricity, heat or cooling.

9  Meaning of material effect

  Something has, or would have, a material effect on the project abatement for a project for an NGER reporting year if its occurrence results, would result, or is likely to result, in a change to the project abatement for the project for the NGER reporting year of the smaller of the following:

 (a) 5% or more;

 (b) 25 000 tonnes CO2e or more.

10  Meaning of materially similar

 (1) The emissions per unit of production of 2 output variables, or outputs, for a facility to which a project relates are materially similar if the average emissions per unit of production of one of those variables, or outputs, during the project’s baseline period is no more than 5% greater than the average emissions per unit of production of the other variable, or output, during that period.

 (2) The emissions per unit of each similar input, or similar intermediate product, used by a facility to which a project relates are materially similar if the average emissions per unit of one of the similar inputs, or similar intermediate products, used during the project’s baseline period is no more than 5% greater than the average emissions per unit of any other similar input, or similar intermediate product, used during that period.

11  Meaning of significant expansion

 (1) Subject to subsection (2), a facility to which a facilities project relates undergoes a significant expansion during an NGER reporting year if:

 (a) new equipment is used by the facility during the NGER reporting year to produce or process an output variable; and

 (b) emissions associated with the new equipment have not been included in any NGER reports for the facility provided to the Regulator before the installation of the equipment; and

 (c) the maximum productive capacity of all equipment used to produce or process the output variable during the NGER reporting year is 20% greater than the maximum productive capacity of the equipment that was used to produce or process the output variable in the earliest of the NGER reporting years in the baseline period.

 (2) A facility does not undergo a significant expansion if the new equipment is primarily used to generate electricity (whether or not the new equipment is a CHP plant).

 (3) In working out the maximum productive capacity of the equipment that was used to produce or process the output variable in the baseline year, the productive capacity of equipment that existed at the facility site during the baseline year is not to be included if the equipment:

 (a) was not used to produce or process the output variable during the baseline year; and

 (b) has now been decommissioned.

12  Meaning of significant output variable change

Significant output variable change in the baseline period

 (1) A facility to which a facilities project relates undergoes a significant output variable change during an NGER reporting year (the change year) in the project’s baseline period if:

 (a) during the change year the facility starts to produce or process an output variable (the new variable) not produced or processed by the facility during a previous NGER reporting year in the baseline period; and

 (b) the change results in a 5% or more difference to the emissions from the facility for the change year when compared with the emissions from the facility for the NGER reporting year that immediately precedes the change year; and

 (c) the project proponent cannot choose the new variable and one or more of the facility’s other output variables to be a single production variable for the facility under subsection 16(2).

Significant output variable change in a reporting period

 (2) Subject to subsection (3), a facility to which a facilities project relates undergoes a significant output variable change during an NGER reporting year in a reporting period for the project if:

 (a) during the NGER reporting year the facility starts to produce or process an output variable (the new variable) not produced or processed by the facility during the project’s baseline period; and

 (b) the change has a material effect on the project abatement for the project for the NGER reporting year; and

 (c) the project proponent cannot choose the new variable and one or more of the facility’s other output variables to be a single production variable under subsection 16(2).

 (3) A facility does not undergo a significant output variable change during an NGER reporting year in a reporting period for the project if the new variable is electricity, heat or cooling.

Part 2Facilities projects

 

13  Facilities projects

 (1) For paragraph 106(1)(a) of the Act, this determination applies to an offsets project that involves the implementation of activities that could reasonably be expected to result in eligible carbon abatement from a facility.

 (2) A project covered by subsection (1) is a facilities project.

 (3) An activity mentioned in subsection (1) is a project abatement activity.

Part 3Project requirements

Division 1General requirements

14  Operation of this Division

  For paragraph 106(1)(b) of the Act, this Division sets out requirements that must be met for a facilities project to be an eligible offsets project.

15  Implementation of activities that aim to reduce emissions from a facility

 (1) The project must implement one or more project abatement activities at one or more facilities.

 (2) Each facility must meet the following requirements:

 (a) the facility is identified in the application made under section 22 of the Act in relation to the project;

 (b) NGER reports about the operation of the facility during the project’s baseline period have been provided to the Regulator;

 (c) the facility has one or more production variables;

 (d) the facility has not undergone a major change in the project’s baseline period;

 (e) the project proponent has access to NGER facility level emissions data, and production variable data, for each NGER reporting year in the project’s baseline period;

 (f) the facility is not a transport facility;

 (g) the facility is not a facility to which another facilities project relates;

 (h) the facility does not use biomass that is not an eligible renewable energy source to produce energy;

 (i) the facility does not import offgrid electricity generated from biomass that is not an eligible renewable energy source;

 (j) the facility does not import heat or cooling generated from biomass that is not an eligible renewable energy source.

 (3) NGER reports relating to the operation of each facility during the project’s baseline period or a reporting period for the project must not include amounts for a facility that have been aggregated with amounts for another facility under regulation 4.25 of the NGER Regulations.

 (4) The project abatement activities must not be ineligible abatement activities for the project.

Note: If a facility to which the project relates involves an ineligible abatement activity, the abatement resulting from the activity must be excluded from the total facility abatement for the project by using the adjusted onsite facility abatement, instead of the onsite facility abatement, for the facility to calculate the total facility abatement (see sections 26 and 28).

 (5) The project must not involve the implementation of a project abatement activity that is expected to:

 (a) result in abatement primarily by changing the quantity of a production variable produced or processed by the facility; and

 (b) have a material effect on the project abatement for the project for an NGER reporting year.

16  Choosing production variables for facilitiesoutput variables

 (1) Subject to subsections (2) and (3) and section 17, the project proponent must choose the following to be a production variable for a facility to which the project relates:

 (a) if the facility has one output variable only—that variable;

 (b) if the facility has more than one output variable—each of those variables.

Similar output variables

 (2) If:

 (a) 2 or more of a facility’s output variables (the similar output variables) can be quantified using the same unit of measurement; and

 (b) the emissions per unit of production of each of the similar output variables are materially similar;

the project proponent may choose the similar output variables to be a single production variable for the facility instead of choosing them to be separate production variables for the facility.

Note: If the facility has other output variables that are not similar output variables, the project proponent must also choose the other output variables to be production variables for the facility (see paragraph (1)(b)).

New output variables

 (3) If:

 (a) during an NGER reporting year a facility starts to produce or process an output variable (the new output variable) not produced or processed by the facility during the project’s baseline period; and

 (b) the facility does not undergo a significant output variable change as a result of starting to produce or process the new output variable; and

 (c) the project proponent has not chosen an input, or intermediate product, to be a production variable for the facility under section 17; and

 (d) the project proponent may choose the new output variable and one or more other similar output variables to be a single production variable for the facility under subsection (2);

the project proponent must choose the new output variable and one or more other similar output variables to be a single production variable for the facility.

17  Choosing production variables for facilities—inputs and intermediate products

 (1) If:

 (a) an input or an intermediate product is used to produce a facility’s outputs; and

 (b) the input or intermediate product meets the requirements set out in subsection (5); and

 (c) no other input or intermediate product that meets the requirements set out in subsection (5) is used to produce any of the facility’s outputs;

the project proponent may choose the input, or the intermediate product, to be the production variable for the facility instead of the facility’s output variables.

Note: The input, or the intermediate product, chosen under this subsection will be the only production variable for the facility.

Multiple inputs and intermediate products

 (2) If:

 (a) 2 or more inputs, or 2 or more intermediate products, are used to produce all of a facility’s outputs; and

 (b) the inputs or intermediate products are used in a fixed proportion to each other during the project’s baseline period; and

 (c) the inputs or intermediate products meet the requirements set out in subsection (5);

the project proponent may choose one of the inputs or intermediate products to be the production variable for the facility instead of the facility’s output variables.

Note: The input or intermediate product chosen under this subsection will be the only production variable for the facility.

 (3) Of the inputs or intermediate products that may be chosen under subsection (2), the project proponent must chose the one that is reasonably considered to have made the largest contribution to the facility’s emissions during the baseline period.

Similar inputs and similar intermediate products

 (4) If:

 (a) 2 or more inputs or 2 or more intermediate products are used to produce all of a facility’s outputs; and

 (b) 2 or more of the inputs (the similar inputs), or 2 or more of the intermediate products (the similar intermediate products), can be quantified using the same unit of measurement; and

 (c) the emissions per unit of each similar input, or similar intermediate product, used are materially similar; and

 (d) the similar inputs, or similar intermediate products, meet the requirements set out in subsection (5);

the project proponent may choose the similar inputs, or similar intermediate products, to be a single production variable for the facility instead of the facility’s output variables.

Note: The similar inputs, or similar intermediate products, chosen to be a single production variable under this subsection will be the only production variable for the facility.

Requirements that must be met

 (5) An input, or an intermediate product, that is used by a facility to produce multiple outputs meets the requirements set out in this subsection if:

 (a) either:

 (i) the outputs are produced in a fixed proportion to the input or intermediate product during the project’s baseline period; or

 (ii) each output can be quantified using the same unit of measurement, and the emissions per unit of production of each output are materially similar; and

 (b) an increase in the quantity of the input or intermediate product processed by the facility to produce the outputs would result in an increase in the quantity of greenhouse gas emissions from the facility; and

 (c) a decrease in the quantity of the input or intermediate product processed by the facility to produce the outputs would result in a decrease in the quantity of greenhouse gas emissions from the facility; and

 (d) either:

 (i) the input or intermediate product is an essential component of the production process, and omitting it would prevent the production process working; or

 (ii) omitting the input or intermediate product from the production process during an NGER reporting year would have a material effect on the project abatement for the NGER reporting year; and

 (e) the quantity of the input or intermediate product can be expressed in a unit of measurement that complies with the National Measurement Act 1960; and

 (f) for a facility that is a petroleum refinery—the input or intermediate product is used as an input to a production process (whether or not it is also a fuel that produces energy at the facility); and

 (g) for a facility that is not a petroleum refinery—the input or intermediate product is not a fuel that produces energy at the facility.

18  Information to be included in application for declaration

  The application under section 22 of the Act in relation to the project must include:

 (a) a description of each facility to which the project relates; and

 (b) a description of each production variable for each facility to which the project relates, including details of the following:

 (i) if the production variable is an output variable (other than an output variable that is electricity, heat, cooling or a multicomponent, elaborately transformed product)—the key substance of value in the output variable;

 (ii) if the production variable is an input or intermediate product—the key substance of value in the input or intermediate product; and

 (c) information that shows that each production variable has been chosen in accordance with section 16 or 17; and

 (d) if biomass will be, or is likely to be, used to produce energy at the facility—a declaration that the biomass is an eligible renewable energy source; and

 (e) if the facility will, or is likely to, import offgrid electricity, or heat or cooling, generated from biomass—a declaration that the biomass is an eligible renewable energy source; and

 (f) a statement of activity intent for each facility to which the project relates, that is signed by the chief financial officer, or another officer, of the person that has operational control over the facility.

Note: If the statement of activity intent for a facility is not signed by the chief financial officer of the person that has operational control over the facility, the total facility abatement for the facility for an NGER reporting year may be capped in certain circumstances (see subsection 26(2)).

Division 2Additionality requirements

19  Requirement in lieu of newness requirement

 (1) For subparagraph 27(4A)(a)(ii) of the Act, the substitute newness requirement is in lieu of the newness requirement for a facilities project.

 (2) The project meets the substitute newness requirement if it has not begun to be implemented.

 (3) The project also meets the substitute newness requirement if:

 (a) the project proponent or project proponents for the project:

 (i) gave the Regulator a written notice of intention to make an application in relation to the project that satisfied:

 (A) paragraphs (1)(a) to (d) of item 388B of Schedule 1 to the amendment Act; or

 (B) paragraphs (1)(a) to (d) of item 388C of that Schedule; and

 (ii) made the application under section 22 of the Act, or were taken to have done so under the Act, before 1 July 2016; and

 (b) the project had not begun to be implemented at the intention notice time.

 (4) A determination as to whether a project has begun to be implemented at a particular time is to be done as if for the purposes of subparagraph 27(4A)(a)(i) of the Act (so that subsections 27(4B) to (4E) of the Act apply).

 (5) In this section:

amendment Act means the Carbon Farming Initiative Amendment Act 2014.

intention notice time has the same meaning as in item 388B or 388C of Schedule 1 to the amendment Act, as appropriate.

Note: Transitional provisions in the Carbon Farming Initiative Amendment Act 2014 allowed prospective proponents who gave notice of their intentions before the date of Proclamation of that Act to have the newness of their projects assessed as at the time of their notice, provided that they made the section 22 application before 1 July 2015. The effect of this section is to extend this deadline to 1 July 2016 for this determination.

Part 4Net abatement amount

Division 1Preliminary

20  Operation of this Part

  For paragraph 106(1)(c) of the Act, this Part specifies the method for working out the carbon dioxide equivalent net abatement amount for a reporting period for a facilities project that is an eligible offsets project.

Division 2Method for calculating net abatement amount

21  Carbon dioxide equivalent net abatement amount

  The carbon dioxide equivalent net abatement amount for a reporting period is worked out by adding together the project abatement for each NGER reporting year that ends during the reporting period.

22  Basis of calculation for certain NGER reporting facilities

 (1) This section applies to a facilities project if:

 (a) the project relates to more than one facility; and

 (b) the project’s baseline period includes one or more NGER reporting years that ended on or before 30 June 2014; and

 (c) an NGER report provided to the Regulator in relation to any of those NGER reporting years included aggregated information about the operation of 2 or more facilities to which the project relates (the relevant facilities) under regulation 4.29 of the NGER Regulations as in force on 30 June 2014.

Note: Under regulation 4.29 of the NGER Regulations as in force on 30 June 2014, an NGER report could, in certain circumstances, include aggregated information about facilities involved in a vertically integrated production process.

 (2) For the purposes of working out the carbon dioxide equivalent net abatement amount for a reporting period under this Part, the relevant facilities are to be treated as if they were a single facility.

Division 3Method for calculating project abatement

23  Summary

The project abatement is the amount by which the greenhouse gas emissions from all the facilities to which the project relates have been reduced during an NGER reporting year as a result of the project.

24  Timing of calculation

  The project abatement for an NGER reporting year must be worked out, after the end of the NGER reporting year, in relation to project abatement activities implemented during the NGER reporting year.

25  Calculation of project abatement

 (1) The project abatement for an NGER reporting year, in tonnes CO2e, is worked out using the formula (equation 1):

where:

AP means the project abatement for the NGER reporting year, in tonnes CO2e.

AT,f means the total facility abatement for facility f for the NGER reporting year, in tonnes CO2e, worked out in accordance with section 26.

 (2) However, if the crediting period for the project ends part way through an NGER reporting year (the final NGER reporting year), the project abatement for the final NGER reporting year, in tonnes CO2e, is worked out using the formula (equation 2):

where:

AP means the project abatement for the final NGER reporting year, in tonnes CO2e.

DCP means the number of days in the final NGER reporting year that fall within the crediting period.

DNGER means the number of days in the final NGER reporting year.

AT,f means the total facility abatement for facility f for the NGER reporting year, in tonnes CO2e, worked out in accordance with section 26.

 (3) If the amount worked out under subsection (1) or (2) for an NGER reporting year is less than zero, the project abatement for the NGER reporting year is taken to be zero.

 (4) This section has effect subject to subsection 81(2).

Note: Under subsection 81(2), the project abatement for an NGER reporting year in a reporting period is taken to be zero if the project proponent fails to monitor a production variable, an input, an output or electricity as required by section 79 or 80 for more than 20% of the days in the reporting period.

26  Total facility abatement

 (1) Subject to subsection (2), the total facility abatement for a facility for an NGER reporting year, in tonnes CO2e, is worked out using the formula (equation 3):

where:

AT,f means the total facility abatement, in tonnes CO2e.

AF,f means:

 (a) if the onsite facility abatement for facility f must be adjusted under section 28 for the NGER reporting year—the adjusted onsite facility abatement, in tonnes CO2e, worked out in accordance with that section; or

 (b) otherwise—the onsite facility abatement for facility f for the NGER reporting year, in tonnes CO2e, worked out in accordance with section 27.

AE,f means:

 (a) if Subdivision A of Division 7 applies to facility f for the NGER reporting year—electricity abatement adjustment A for the facility during the NGER reporting year, in tonnes CO2e, worked out in using equation 18; or

 (b) otherwise—zero.

Note: Subdivision A of Division 7 applies to a facility for an NGER reporting year if electricity is a production variable for the facility and additional electricity is exported from the facility during the NGER reporting year as a result of project abatement activities that improve the thermal efficiency of existing generating units at the facility.

AR,f means:

 (a) if Subdivision B of Division 7 applies to facility f for the NGER reporting year—electricity abatement adjustment B for the facility during the NGER reporting year, in tonnes CO2e, worked out in using equation 20; or

 (b) otherwise—zero.

Note: Subdivision B of Division 7 applies to a facility for an NGER reporting year if electricity generated using new generating units at the facility is exported from the facility during the NGER reporting year (whether or not electricity is a production variable for the facility).

 (2) If:

 (a) the amount worked out under subsection (1) for a facility for an NGER reporting year is more than 100 000 tonnes CO2e; and

 (b) a statement of activity intent for the facility, that is signed by the chief financial officer of the person that has operational control over the facility, has not been given to the Regulator;

the total facility abatement for the facility for the NGER reporting year is taken to be 100 000 tonnes CO2e.

 (3) For the purpose of paragraph (2)(b), a statement of activity intent for a facility, that is signed by the chief financial officer of the person that has operational control over the facility, has not been given to the Regulator unless such a statement:

 (a) was, under paragraph 18(f), included in the application under section 22 of the Act in relation to the project; or

 (b) was otherwise given to the Regulator before the offsets report about the project for the reporting period that includes the NGER reporting year was given to the Regulator.

27  Onsite facility abatement

 (1) Subject to subsections (2), (3) and (4), the onsite facility abatement for a facility for an NGER reporting year, in tonnes CO2e, is worked out using the formula (equation 4):

where:

AF means the onsite facility abatement, in tonnes CO2e.

ECB means:

 (a) if the crediting baseline (general) for the facility must be worked out under section 30 for the NGER reporting year—the crediting baseline (general), in tonnes CO2e, worked out using equation 6; or

 (b) otherwise—zero.

ENGER,r means:

 (a) if the NGER emissions (general) for the facility must be worked out under section 44 for the NGER reporting year—the NGER emissions (general), in tonnes CO2e, worked out using equation 16; or

 (b) otherwise—zero.

ECB,Elec means:

 (a) if the crediting baseline (electricity) for the facility must be worked out under section 31 for the NGER reporting year—the crediting baseline (electricity), in tonnes CO2e, worked out using equation 7; or

 (b) otherwise—zero.

EElec,NGER,r means:

 (a) if the NGER emissions (electricity) for the facility must be worked out under section 45 for the NGER reporting year—the NGER emissions (electricity), in tonnes CO2e, worked out using equation 17; or

 (b) otherwise—zero.

 (2) The onsite facility abatement for the facility for an NGER reporting year is taken to be zero if:

 (a) the amount worked out under subsection (1) for the NGER reporting year is less than zero; and

 (b) neither Subdivision A nor Subdivision B of Division 7 applies to the facility for the NGER reporting year.

Note 1: Subdivision A of Division 7 applies to a facility for an NGER reporting year if electricity is a production variable for the facility and additional electricity is exported from the facility during the NGER reporting year as a result of project abatement activities that improve the thermal efficiency of existing generating units at the facility.

Note 2: Subdivision B of Division 7 applies to a facility for an NGER reporting year if electricity generated using new generating units at the facility is exported from the facility during the NGER reporting year (whether or not electricity is a production variable for the facility).

 (3) The onsite facility abatement for the facility for an NGER reporting year in a reporting period is taken to be zero if:

 (a) the project proponent has, under section 17, chosen an input or intermediate product, or similar inputs or similar intermediate products, to be the production variable for the facility; and

 (b) either:

 (i) the outputs that are produced by the facility using the input or intermediate product, or similar inputs or similar intermediate products, are not produced in a fixed proportion to the input or intermediate product, or to each similar input or similar intermediate product, during the reporting period; or

 (ii) the input or intermediate product is an input or intermediate product that was chosen under subsection 17(2), and the input or intermediate product is not used in a fixed proportion to the facility’s other inputs or intermediate products during the reporting period.

 (4) The onsite facility abatement for the facility for an NGER reporting year (the relevant NGER reporting year), and all subsequent NGER reporting years, is taken to be zero if the facility undergoes a significant expansion or a significant output variable change during the relevant NGER reporting year.

28  Adjusted onsite facility abatement

 (1) The onsite facility abatement for a facility must be adjusted for an NGER reporting year if one or more ineligible abatement activities for the project were in operation at the facility during the NGER reporting year.

 (2) Subject to subsection (3), the adjusted onsite facility abatement for the facility for the NGER reporting year, in tonnes CO2e, is worked out using the formula (equation 5):

where:

AA means the adjusted onsite abatement, in tonnes CO2e.

AF means the onsite facility abatement for the facility for the NGER reporting year, in tonnes CO2e, worked out in accordance with section 27.

ENA means:

 (a) if an ineligible abatement activity was not in operation at the facility for any part of the baseline year—the amount of abatement associated with the activity for the NGER reporting year, in tonnes CO2e, worked out in accordance with whichever of subsection (4) or (5) applies; or

 (b) if an ineligible abatement activity was in operation at the facility for only part of the baseline year—the amount of abatement associated with the activity for the NGER reporting year, in tonnes CO2e, worked out as follows:

 (i) work out the amount of the abatement in accordance with whichever of subsection (4) or (5) applies; and

 (ii) adjust that amount on a pro rata basis by reference to the number of days in the baseline year on which the activity was not in operation at the facility; or

 (c) if an ineligible abatement activity was in operation at the facility for the whole of the baseline year and there is an increase (of a kind mentioned in subparagraph 8(1)(b)(iii)) in abatement from the activity during the NGER reporting year—the amount of the increase in abatement from the activity during the NGER reporting year, worked out using an appropriate abatement estimation approach for the activity.

 (3) The adjusted onsite facility abatement for the facility for the NGER reporting year is taken to be zero if:

 (a) the amount worked out under subsection (2) for the NGER reporting year is less than zero; and

 (b) neither Subdivision A nor Subdivision B of Division 7 applies to the facility for the NGER reporting year.

Note 1: Subdivision A of Division 7 applies to a facility for an NGER reporting year if electricity is a production variable for the facility and additional electricity is exported from the facility during the NGER reporting year as a result of project abatement activities that improve the thermal efficiency of existing generating units at the facility.

Note 2: Subdivision B of Division 7 applies to a facility for an NGER reporting year if electricity generated using new generating units at the facility is exported from the facility during the NGER reporting year (whether or not electricity is a production variable for the facility).

Abatement associated with ineligible abatement activity

 (4) If the abatement associated with the ineligible abatement activity is required to be calculated and reported to a government body other than because of this determination, the amount of the abatement for the NGER reporting year, in tonnes CO2e, is the amount that:

 (a) is included in the most recent of those reports for the activity; and

 (b) relates to the operation of the activity on days that fall within the crediting period for the project; and

 (c) has not been used before to calculate the adjusted onsite facility abatement for the facility.

 (5) If subsection (4) does not apply, or the adjusted onsite facility abatement for the NGER reporting year is being calculated for inclusion in the final offsets report about the project and a report mentioned in subsection (4) that covers the NGER reporting year is not available, the amount of the abatement associated with the ineligible abatement activity for the NGER reporting year, in tonnes CO2e, must be estimated:

 (a) using an appropriate abatement estimation approach for the activity; and

 (b) in relation to the operation of the activity on days that fall within the crediting period for the project.

Meaning of appropriate abatement estimation approach

 (6) An appropriate abatement estimation approach, for an activity, is an approach for estimating the abatement associated with the activity that:

 (a) uses data from the records of the facility; and

 (b) is consistent with an estimation approach that applies to the activity under another methodology determination or, if there is no methodology determination that deals with the activity, is consistent with an estimation approach that applies to activities of that kind under another abatement scheme; and

 (c) is consistent with relevant measuring and estimation requirements that apply to facilities under the NGER (Measurement) Determination; and

 (d) results in an estimate that is measurable, capable of being verified and conservative.

Division 4Method for calculating crediting baseline

29  Summary

The crediting baseline for a facility is what the emissions from the facility would have been if the project had not been undertaken.

The crediting baseline (general) must be worked out for a facility if the facility has a production variable that is not electricity (whether or not electricity is also a production variable for the facility).

The crediting baseline (electricity) must be worked out for a facility if electricity is a production variable for the facility (whether or not the facility also has other production variables).

30  Crediting baseline (general)

 (1) The crediting baseline (general) for a facility must be worked out under this section for an NGER reporting year if the facility has a production variable that is not electricity (whether or not electricity is also a production variable for the facility).

 (2) The crediting baseline (general) for the facility for the NGER reporting year, in tonnes CO2e, is worked out using the formula (equation 6):

where:

ECB means the crediting baseline (general), in tonnes CO2e.

In means the baseline emissions intensity of production variable n during the baseline year, in tonnes CO2e per unit of the variable produced or processed, worked out in accordance with Division 5.

Qn,r means the quantity of production variable n produced or processed by the facility during the NGER reporting year, worked out using production variable data.

n means a production variable for the facility other than electricity.

31  Crediting baseline (electricity)

 (1) The crediting baseline (electricity) for a facility must be worked out under this section for an NGER reporting year if electricity is a production variable for the facility (whether or not the facility also has other production variables).

 (2) The crediting baseline (electricity) for the facility for the NGER reporting year, in tonnes CO2e, is worked out using the formula (equation 7):

where:

ECB,Elec means the crediting baseline (electricity), in tonnes CO2e.

IExist,b means the baseline emissions intensity of electricity generated using existing generating units at the facility and exported from the facility, in tonnes CO2e per megawatt hour of electricity exported, worked out using equation 23.

QExist,r means the quantity of electricity generated using existing generating units at the facility and exported from the facility during the NGER reporting year, in megawatt hours, measured in accordance with the applicable monitoring requirements for the electricity.

QTherm means the quantity of additional electricity exported from the facility during the NGER reporting year as a result of project abatement activities that improve the thermal efficiency of existing generating units at the facility, in megawatt hours, worked out using equation 19.

IRep means:

 (a) if the value of INew for the NGER reporting year (worked out using equation 21) multiplied by MLFr (within the meaning of subsection 52(1)) is less than the value of EFElec (within the meaning of subsection 52(1))—the emissions intensity of electricity generated using replaced generating units at the facility and exported from the facility during the baseline year, in tonnes CO2e per megawatt hour of electricity exported, worked out using equation 25; or

 (b) otherwise—zero.

QRep/New means the smaller of the following:

 (a) the value of QRep (within the meaning of subsection 54(1));

 (b) the value of QNew (within the meaning of section 53) for the NGER reporting year.

MLFr means the marginal loss factor for the facility for the NGER reporting year, which is:

 (a) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a distribution network—taken to be 1; or

 (b) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a transmission network—the relevant factor published by the Australian Energy Market Operator Limited (ACN 072 010 327) that is valid at the end of the NGER reporting year; or

 (c) if neither paragraph (a) nor (b) applies, and a relevant authority of the State or Territory in which the facility is located has determined a factor that is valid at the end of the NGER reporting year—the factor determined by the relevant authority; or

 (d) in any other case—taken to be 1.

Division 5Method for calculating baseline emissions intensity

Subdivision ABaseline emissions intensity

32  Summary

The baseline emissions intensity of a production variable is the lowest annual emissions intensity of the variable out of all the NGER reporting years in the project’s baseline period. The NGER reporting year in which the lowest annual emissions intensity occurred is the baseline year.

The baseline emissions intensity will remain the same for all NGER reporting years for which the crediting baseline is calculated, unless a recalculation is required to take account of changed circumstances that would have a material effect on the project abatement.

33  Baseline emissions intensity and baseline year

 (1) The baseline emissions intensity of a production variable, in tonnes CO2e per unit of the variable produced or processed, and the baseline year for the variable are worked out as follows:

 (a) in accordance with Subdivision B, calculate the emissions intensity of the production variable for each NGER reporting year in the project’s baseline period;

 (b) identify the lowest emissions intensity of the production variable and the NGER reporting year to which it relates.

 (2) Subject to subsection (3), the lowest emissions intensity of the production variable is the baseline emissions intensity of the variable, and the NGER reporting year to which the lowest emissions intensity relates is the baseline year.

 (3) If Subdivision C applies to the baseline emissions intensity of a production variable:

 (a) the baseline emissions intensity must be recalculated in accordance with that Subdivision; and

 (b) if either or both of sections 40 and 41 are used for the recalculationthe baseline emissions intensity of the variable is the baseline emissions intensity as recalculated under those sections; and

 (c) if section 42 is used for the recalculation—the lowest emissions intensity of the production variable as identified under that section is the baseline emissions intensity of the variable and the NGER reporting year to which that lowest emissions intensity relates is the baseline year.

Subdivision BCalculations relating to emissions intensity

34  Emissions intensity of a production variable

  The emissions intensity of a production variable for an NGER reporting year, in tonnes CO2e per unit of the variable produced or processed, is worked out using the formula (equation 8):

where:

In means the emissions intensity of production variable n, in tonnes CO2e per unit of the variable produced or processed.

En means the baseline NGER emissions attributable to production variable n for the NGER reporting year, in tonnes CO2e, worked out in accordance with section 35.

Qn,b means the quantity of production variable n produced or processed by the facility during the NGER reporting year, worked out using production variable data.

35  Baseline NGER emissions attributable to a production variable

  The baseline NGER emissions attributable to a production variable (the first variable) for an NGER reporting year are worked out as follows:

 (a) work out the total baseline NGER emissions for the facility for the NGER reporting year using equation 9;

 (b) if the first variable is the only production variable for the facilitythe total baseline NGER emissions are the baseline NGER emissions attributable to the first variable for the NGER reporting year;

 (c) if the facility has more than one production variable—apportion the total baseline NGER emissions to each of the facility’s production variables in accordance with section 37, and the emissions apportioned to the first variable in accordance with that section are the baseline NGER emissions attributable to the first variable for the NGER reporting year.

36  Total baseline NGER emissions

  The total baseline NGER emissions for a facility for an NGER reporting year, in tonnes CO2e, are worked out using the formula (equation 9):

where:

ENGER,b means the total baseline NGER emissions, in tonnes CO2e.

ES1,b means the reported scope 1 emissions for the facility during the NGER reporting year, in tonnes CO2e.

EIb means the reported electricity imports for the facility during the NGER reporting year, in megawatt hours.

EFEP means:

 (a) for electricity obtained from an electricity grid that is a grid in relation to which the NGA Factors document in force on the declaration day includes an emissions factor—that factor, in kilograms CO2e per kilowatt hour; or

 (b) for electricity obtained from an electricity grid not covered by paragraph (a) or from a source other than an electricity grid:

 (i) if the supplier of the electricity is able to provide an emissions factor that reflects the emissions intensity of the electricity and is applicable on the declaration day—that factor, in kilograms CO2e per kilowatt hour; or

 (ii) otherwise—the emissions factor, in kilograms CO2e per kilowatt hour, for offgrid electricity included in the NGA Factors document in force on the declaration day.

MLFb means the marginal loss factor for the facility for the NGER reporting year, which is:

 (a) if, during the NGER reporting year, electricity is imported by the facility from the national electricity market and the facility is directly connected to a distribution network—taken to be 1; or

 (b) if, during the NGER reporting year, electricity is imported by the facility from the national electricity market and the facility is directly connected to a transmission network—the relevant factor published by the Australian Energy Market Operator Limited (ACN 072 010 327) that is valid at the end of the NGER reporting year; or

 (c) if neither paragraph (a) nor (b) applies, and a relevant authority of the State or Territory in which the facility is located has determined a factor that is valid at the end of the NGER reporting year—the factor determined by the relevant authority; or

 (d) in any other case—taken to be 1.

ES2,Other,b means the reported scope 2 emissions from heat or cooling for the facility during the NGER reporting year, in tonnes CO2e.

EFug,b means any excluded NGER fugitive emissions for the facility during the NGER reporting year, in tonnes CO2e, as reported to the Regulator in an NGER report.

37  Apportioning of total baseline NGER emissions

 (1) If a facility has more than one production variable, the total baseline NGER emissions for a facility for an NGER reporting year are apportioned to each production variable using the formula (equation 10):

where:

En means the emissions apportioned to production variable n, in tonnes CO2e.

ADn means the apportioning percentage for production variable n, worked out using equation 11.

ENGER,b means the total baseline NGER emissions for the NGER reporting year, in tonnes CO2e, worked out using equation 9.

 (2) The percentage of the total baseline NGER emissions for the NGER reporting year to be apportioned to a production variable is worked out using the formula (equation 11):

where:

ADn means the apportioning percentage for production variable n.

Mn means:

 (a) if the project proponent provided, or has access to, data about the facility that was used to establish baselines for the Jobs and Competitiveness Program—the weighted average emissions intensity of production variable n for the financial years beginning on 1 July 2006 and 1 July 2007, worked out using equation 12; or

 (b) if paragraph (a) does not apply and production variable n is covered by an item in the table in clause 1 of Schedule 1—the industry average emissions intensity of production variable n, in tonnes CO2e per unit of the variable, worked out using equation 13; or

 (c) if neither paragraph (a) nor (b) applies—the facilityspecific apportioning metric for production variable n.

Qn,b means the quantity of production variable n produced or processed by the facility during the NGER reporting year, worked out using production variable data.

 (3) The weighted average emissions intensity of a production variable for the financial years beginning on 1 July 2006 and 1 July 2007 is worked out using the formula (equation 12):

where:

Mn means the weighted average emissions intensity of production variable n.

En,200607 means the total direct emissions data for the period 1 July 2006 to 30 June 2007, in tonnes CO2e, that:

 (a) was used to establish baselines for the Jobs and Competitiveness Program; and

 (b) is attributable to production variable n.

TCElec,n,200607 means the total electricity consumed data for the period 1 July 2006 to 30 June 2007, in megawatt hours, that:

 (a) was used to establish baselines for the Jobs and Competitiveness Program; and

 (b) is attributable to production variable n.

EFEP means:

 (a) for electricity obtained from an electricity grid that is a grid in relation to which the NGA Factors document in force on the declaration day includes an emissions factor—that factor, in kilograms CO2e per kilowatt hour; or

 (b) for electricity obtained from an electricity grid not covered by paragraph (a) or from a source other than an electricity grid:

 (i) if the supplier of the electricity is able to provide an emissions factor that reflects the emissions intensity of the electricity and is applicable on the declaration day—that factor, in kilograms CO2e per kilowatt hour; or

 (ii) otherwise—the emissions factor, in kilograms CO2e per kilowatt hour, for offgrid electricity included in the NGA Factors document in force on the declaration day.

En,200708 means the total direct emissions data for the period 1 July 2007 to 30 June 2008, in tonnes CO2e, that:

 (a) was used to establish baselines for the Jobs and Competitiveness Program; and

 (b) is attributable to production variable n.

TCElec,n,200708 means the total electricity consumed data for the period 1 July 2007 to 30 June 2008, in megawatt hours, that:

 (a) was used to establish baselines for the Jobs and Competitiveness Program; and

 (b) is attributable to production variable n.

Qn, 200607 means the production data for the period 1 July 2006 to 30 June 2007, that:

 (a) was used to establish baselines for the Jobs and Competitiveness Program; and

 (b) is attributable to production variable n.

Qn, 200708 means the production data for the period 1 July 2007 to 30 June 2008, that:

 (a) was used to establish baselines for the Jobs and Competitiveness Program; and

 (b) is attributable to production variable n.

 (4) The industry average emissions intensity of a production variable covered by an item in the table in clause 1 of Schedule 1, in tonnes CO2e per unit of the variable, is worked out using the formula (equation 13):

where:

Mn means the industry average emissions intensity of production variable n, in tonnes CO2e per unit of the variable.

IS1,n means the scope 1 emissions intensity of production variable n, determined in accordance with the table in clause 1 of Schedule 1.

IEI,n means the electricity intensity of production variable n, determined in accordance with the table in clause 1 of Schedule 1.

EFEP means:

 (a) for electricity obtained from an electricity grid that is a grid in relation to which the NGA Factors document in force on the declaration day includes an emissions factor—that factor, in kilograms CO2e per kilowatt hour; or

 (b) for electricity obtained from an electricity grid not covered by paragraph (a) or from a source other than an electricity grid:

 (i) if the supplier of the electricity is able to provide an emissions factor that reflects the emissions intensity of the electricity and is applicable on the declaration day—that factor, in kilograms CO2e per kilowatt hour; or

 (ii) otherwise—the emissions factor, in kilograms CO2e per kilowatt hour, for offgrid electricity included in the NGA Factors document in force on the declaration day.

 (5) The facilityspecific apportioning metric for a production variable is the apportioning metric determined by the project proponent for the production variable in accordance with the following requirements:

 (a) the apportioning metric must be determined once, for use in relation to all NGER reporting years in the project’s baseline period;

 (b) the apportioning metric must be determined using an approach that:

 (i) includes any material emissions source associated with the production variable; and

 (ii) if an emissions source overlaps 2 or more output variables, including the production variable—apportions emissions from that source between the variables so that the sum of the emissions apportioned to the variables in any year of the baseline period is no more than 5% greater than the total emissions from that source during that year; and

 (iii) if the production variable is electricity generated by a CHP plant at the facility and exported from the facility—apportions emissions to that electricity using equation 27; and

 (iv) measures and apportions emissions in a manner that is consistent with the NGER (Measurement) Determination; and

 (v) only apportions greenhouse gas emissions that are not excluded NGER fugitive emissions; and

 (vi) if the approach converts electricity use to an amount of emissions—uses the same electricity emissions factor that is used to convert purchased electricity in kilowatt hours to emissions in kilograms CO2e for the purpose of calculating the total baseline NGER emissions for the facility (see the parameter EFEP in section 36); and

 (vii) reasonably represents the actual emissions attributable to the production variable;

 (c) if the production variable is electricity generated using existing generating units at the facility and exported from the facility, the apportioning metric must not result in the baseline emissions intensity of the production variable being less than an amount calculated by dividing:

 (i) the emissions from fuel combusted by the existing generating units to generate electricity exported from the facility during the baseline year; by

 (ii) the quantity of electricity generated using the existing generating units and exported from the facility during the baseline year.

Subdivision CRecalculating emissions intensity

38  Application of Subdivision

 (1) This Subdivision applies to the baseline emissions intensity of a production variable for a facility if:

 (a) one or more of the following apply:

 (i) a new factor is used to calculate the NGER facility level emissions data for the facility for the NGER reporting year for which the crediting baseline is being calculated (the calculation year);

 (ii) an input or output purity change occurs at the facility during the calculation year and the production variable is not electricity, heat, cooling or a multicomponent, elaborately transformed product;

 (iii) an error in the data previously used to calculate the baseline emissions intensity is identified during the calculation year; and

 (b) recalculating the baseline emissions intensity in accordance with this Subdivision will have a material effect on the project abatement for the calculation year.

 (2) For the purposes of subparagraph (1)(a)(i), a new factor is used to calculate the NGER facility level emissions data for a facility for an NGER reporting year if:

 (a) a default energy content factor or default emission factor that applies to the calculation is different from the factor that applied to the calculation for the preceding NGER reporting year; or

 (b) a Global Warming Potential that applies to the calculation is different from the Global Warming Potential that applied to the calculation for the preceding NGER reporting year; or

 (c) the NGER measurement method used to measure the emissions is a higher method, or a lower method, that is different from the NGER measurement method used to measure the emissions for the preceding NGER reporting year; or

 (d) a measurement procedure or frequency that applies to the calculation is different from the measurement procedure or frequency (as applicable) that applied to the calculation for the preceding NGER reporting year.

 (3) An input or output purity change occurs at a facility if there is a change to the purity of inputs used by the facility or outputs produced by the facility, other than a change that is, or is part of, a project abatement activity.

39  Recalculating emissions intensity

  The baseline emissions intensity (the original baseline emissions intensity) for a production variable for a facility must be recalculated as follows:

 (a) if this Subdivision applies because of one or more new factors only—in accordance with section 40;

 (b) if this Subdivision applies because of one or more input or output purity changes only—in accordance with section 41;

 (c) if this Subdivision applies because of one or more new factors and one or more input or output purity changesby recalculating the original baseline emissions intensity in accordance with section 40 and then applying section 41 to the recalculated baseline emissions intensity as if it were the original baseline emissions intensity;

 (d) if this Subdivision applies because one or more errors in the data used to calculate the original baseline emissions intensity are identified—in accordance with section 42.

40  Recalculating because of a new factor

 (1) If this Subdivision applies because one or more new factors are used to calculate the NGER facility level emissions data for the calculation year, the baseline emissions intensity of a production variable for the baseline year must be recalculated as follows:

 (a) recalculate the NGER facility level emissions data for the baseline year using the same default energy content factor, default emission factor, Global Warming Potential, NGER measurement method and measurement procedure and frequency as is used for the calculation year;

 (b) using the recalculated NGER facility level emissions data for the baseline year, work out the emissions intensity of the production variable for the baseline year in accordance with Subdivision B.

 (2) If, in recalculating the NGER facility level emissions data for the baseline year, it is not possible to calculate the emissions for a production variable using the same NGER measurement method, measurement procedure or frequency as is used for the calculation year, the emissions are to be worked out using the formula (equation 14):

where:

EP,b means the recalculated emissions for the production variable for the baseline year, in tonnes CO2e.

EP,c means the emissions for the production variable for the calculation year, in tonnes CO2e, calculated using the NGER measurement method, measurement procedure and frequency that applied in the calculation year.

QP,c means the quantity of the production variable produced or processed by the facility during the calculation year, measured using the NGER measurement method, measurement procedure and frequency that applied in the calculation year.

QP,b means the quantity of the production variable produced or processed by the facility during the baseline year, measured using the NGER measurement method, measurement procedure and frequency that applied in the baseline year.

41  Recalculating because of an input or output purity change

 (1) If this Subdivision applies because one or more input or output purity changes occur during the calculation year, the baseline emissions intensity of a production variable for the baseline year must be recalculated as follows:

 (a) adjust the baseline NGER emissions attributable to production variable n in the baseline year using equation 15; and

 (b) use the adjusted baseline NGER emissions attributable to production variable n in the baseline year to recalculate the emissions intensity of the variable for the baseline year using equation 8.

 (2) The baseline NGER emissions attributable to production variable n in the baseline year is to be adjusted using the formula (equation 15):

where:

EAdj,n means the adjusted emissions apportioned to production variable n during the baseline year, in tonnes CO2e.

En,b means the emissions apportioned to production variable n during the baseline year, in tonnes CO2e, worked out using equation 10.

Pn means the lesser of:

 (a) the change in processing factor for production variable n during the baseline year, worked out in accordance with subsection (3); and

 (b) 1.5.

 (3) The change in processing factor for production variable n during the baseline year, to take account of the input or output purity changes, is to be worked out using an approach that:

 (a) is specific to the production process used by the facility; and

 (b) is based on documented historical evidence, including data for the facility, of the relationship between the input or output purity changes and greenhouse gas emissions from the facility; and

 (c) can be shown to accurately reflect the change in greenhouse gas emissions from the facility resulting from the input or output purity changes; and

 (d) takes into account all the relevant variables within the facility that may cause a change in the emissions intensity of production variable n as a result of the input or output purity changes; and

 (e) is independent of any changes at the facility that are not input or output purity changes; and

 (f) is credible, robust and conservative with respect to any effect on project abatement.

42  Recalculating because of an error

  If this Subdivision applies because one or more errors are identified during the calculation year, the baseline emissions intensity of a production variable and the baseline year must be recalculated as follows:

 (a) correct the error and recalculate the NGER facility level emissions data for each NGER reporting year in the project’s baseline period;

 (b) using the recalculated data, work out the emissions intensity of the production variable for each NGER reporting year in the project’s baseline period in accordance with Subdivision B;

 (c) identify the lowest emissions intensity of the production variable and the NGER reporting year to which it relates.

Division 6Method for calculating NGER emissions

43  Summary

The NGER emissions are the emissions from a facility to which the project relates during an NGER reporting year. They are used to calculate the onsite facility abatement for the facility during the NGER reporting year.

The NGER emissions (general) must be worked out for a facility if the facility has a production variable that is not electricity (whether or not electricity is also a production variable for the facility).

The NGER emissions (electricity) must be worked out for a facility if electricity is a production variable for the facility (whether or not the facility also has other production variables).

44  NGER emissions (general)

 (1) The NGER emissions (general) for a facility must be worked out under this section for an NGER reporting year if the facility has a production variable that is not electricity (whether or not electricity is also a production variable for the facility).

 (2) The NGER emissions (general) for the facility for the NGER reporting year, in tonnes CO2e, are worked out using the formula (equation 16):

where:

ENGER,r means the NGER emissions (general), in tonnes CO2e.

ES1,r means the reported scope 1 emissions for the facility during the NGER reporting year, in tonnes CO2e.

EIr means the reported electricity imports for the facility during the NGER reporting year, in megawatt hours.

EFEP means:

 (a) for electricity obtained from an electricity grid that is a grid in relation to which the NGA Factors document in force on the declaration day includes an emissions factor—that factor, in kilograms CO2e per kilowatt hour; or

 (b) for electricity obtained from an electricity grid not covered by paragraph (a) or from a source other than an electricity grid:

 (i) if the supplier of the electricity is able to provide an emissions factor that reflects the emissions intensity of the electricity and is applicable on the declaration day—that factor, in kilograms CO2e per kilowatt hour; or

 (ii) otherwise—the emissions factor, in kilograms CO2e per kilowatt hour, for offgrid electricity included in the NGA Factors document in force on the declaration day.

MLFr means the marginal loss factor for the facility for the NGER reporting year, which is:

 (a) if, during the NGER reporting year, electricity is imported by the facility from the national electricity market and the facility is directly connected to a distribution network—taken to be 1; or

 (b) if, during the NGER reporting year, electricity is imported by the facility from the national electricity market and the facility is directly connected to a transmission network—the relevant factor published by the Australian Energy Market Operator Limited (ACN 072 010 327) that is valid at the end of the NGER reporting year; or

 (c) if neither paragraph (a) nor (b) applies, and a relevant authority of the State or Territory in which the facility is located has determined a factor that is valid at the end of the NGER reporting year—the factor determined by the relevant authority; or

 (d) in any other case—taken to be 1.

ES2,Other,r means the reported scope 2 emissions from heat or cooling for the facility during the NGER reporting year, in tonnes CO2e.

EFug,r means the excluded NGER fugitive emissions for the facility during the NGER reporting year, in tonnes CO2e, as reported to the Regulator:

 (a) in an NGER report; or

 (b) in an offsets report in accordance with section 68.

EElec,r means the total emissions from electricity exported from the facility during the NGER reporting year, in tonnes CO2e, worked out using equation 26.

EHC,r means:

 (a) if heat or cooling is exported from the facility during the NGER reporting year (but not during the baseline year) and the emissions attributable to the heat or cooling exported are excluded heat or cooling emissions for the NGER reporting year—the emissions attributable to the heat or cooling exported, in tonnes CO2e, worked out using an emissions apportioning approach that is not inconsistent with the approach that applies to CHP plants under Division 8; or

 (b) otherwise—zero.

 (3) For paragraph (a) of the definition of EHC,r in subsection (2), emissions are excluded heat or cooling emissions for an NGER reporting year if:

 (a) including the emissions in the NGER emissions (general) would have a material effect on the project abatement for the NGER reporting year; or

 (b) the project proponent chooses to treat the emissions as excluded emissions for the NGER reporting year.

45  NGER emissions (electricity)

 (1) The NGER emissions (electricity) for a facility must be worked out under this section for an NGER reporting year if electricity is a production variable for the facility (whether or not the facility also has other production variables).

 (2) The NGER emissions (electricity) for the facility for the NGER reporting year, in tonnes CO2e, are worked out using the formula (equation 17):

where:

EElec,NGER,r means the NGER emissions (electricity), in tonnes CO2e.

IExist,r means the emissions intensity of electricity generated using existing generating units at the facility and exported from the facility during the NGER reporting year, in tonnes CO2e per megawatt hour of electricity exported, worked out using equation 24.

QExist,r means the quantity of electricity generated using existing generating units at the facility and exported from the facility during the NGER reporting year, in megawatt hours, measured in accordance with the applicable monitoring requirements for the electricity.

QTherm means the quantity of additional electricity exported from the facility during the NGER reporting year as a result of project abatement activities that improve the thermal efficiency of existing generating units at the facility, in megawatt hours, worked out using equation 19.

INew means:

 (a) if the emissions intensity of electricity generated using new generating units at the facility and exported from the facility during the NGER reporting year (worked out using equation 21) multiplied by MLFr (within the meaning of subsection 52(1)), is less than the value of EFElec (within the meaning of subsection 52(1))—the emissions intensity of that electricity, in tonnes CO2e per megawatt hour of electricity exported, worked out using equation 21; or

 (b) otherwise—zero.

QRep/New means the smaller of the following:

 (a) the value of QRep (within the meaning of subsection 54(1));

 (b) the value of QNew (within the meaning of section 53) for the NGER reporting year.

MLFr means the marginal loss factor for the facility for the NGER reporting year, which is:

 (a) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a distribution network—taken to be 1; or

 (b) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a transmission network—the relevant factor published by the Australian Energy Market Operator Limited (ACN 072 010 327) that is valid at the end of the NGER reporting year; or

 (c) if neither paragraph (a) nor (b) applies, and a relevant authority of the State or Territory in which the facility is located has determined a factor that is valid at the end of the NGER reporting year—the factor determined by the relevant authority; or

 (d) in any other case—taken to be 1.

Division 7Method for calculating electricity abatement adjustments

Subdivision AElectricity abatement adjustment A

46  Summary

Electricity abatement adjustment A for a facility is to be calculated under this Subdivision if electricity is a production variable for the facility, and additional electricity is exported from the facility during an NGER reporting year as a result of project abatement activities that improve the thermal efficiency of existing generating units at the facility.

47  Application of Subdivision

  This Subdivision applies to a facility for an NGER reporting year if:

 (a) electricity is a production variable for the facility; and

 (b) additional electricity is exported from the facility during the NGER reporting year as a result of project abatement activities that improve the thermal efficiency of existing generating units at the facility.

48  Calculation of electricity abatement adjustment A

 (1) Electricity abatement adjustment A for a facility during an NGER reporting year, in tonnes CO2e, is worked out using the formula (equation 18):

where:

AE means electricity abatement adjustment A, in tonnes CO2e.

EFElec means:

 (a) for electricity exported to an electricity grid that is a grid in relation to which the NGA Factors document in force on the declaration day includes an emissions factor—that factor, in kilograms CO2e per kilowatt hour; or

 (b) for electricity exported otherwise than in paragraph (a) (whether to a grid or not):

 (i) if the receiver of the electricity is able to provide an emissions factor that reflects the emissions intensity of the displaced electricity (worked out in accordance with subsection (3)) and is applicable on the declaration day—that factor, in kilograms CO2e per kilowatt hour; or

 (ii) otherwise—the emissions factor, in kilograms CO2e per kilowatt hour, for offgrid electricity included in the NGA Factors document in force on the declaration day.

IExist,r means the emissions intensity of electricity generated using existing generating units at the facility and exported from the facility during the NGER reporting year, in tonnes CO2e per megawatt hour of electricity exported, worked out using equation 24.

QTherm means the quantity of additional electricity exported from the facility during the NGER reporting year as a result of project abatement activities that improve the thermal efficiency of existing generating units at the facility, in megawatt hours, worked out using equation 19.

MLFr means the marginal loss factor for the facility for the NGER reporting year, which is:

 (a) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a distribution network—taken to be 1; or

 (b) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a transmission network—the relevant factor published by the Australian Energy Market Operator Limited (ACN 072 010 327) that is valid at the end of the NGER reporting year; or

 (c) if neither paragraph (a) nor (b) applies, and a relevant authority of the State or Territory in which the facility is located has determined a factor that is valid at the end of the NGER reporting year—the factor determined by the relevant authority; or

 (d) in any other case—taken to be 1.

 (2) For the definition of EFElec in subsection (1), displaced electricity is electricity that would have been produced for the receiver if the electricity had not instead been produced by the facility.

 (3) For subparagraph (b)(i) of the definition of EFElec in subsection (1), the emissions factor must:

 (a) be worked out on a sentout basis; and

 (b) be worked out using a measurement or estimation approach that is consistent with the NGER (Measurement) Determination; and

 (c) if the displaced electricity would have been produced from more than one source—reflect the weighted average of the emissions intensity, applicable on the declaration day, of all the sources.

49  Additional electricity exported as a result of improved thermal efficiency of existing generating units

 (1) Subject to subsection (2), the quantity of additional electricity exported from a facility during an NGER reporting year as a result of project abatement activities that improve the thermal efficiency of existing generating units at the facility, in megawatt hours, is worked out using the formula (equation 19):

where:

QTherm means the quantity of additional electricity exported from the facility as a result of project abatement activities that improve the thermal efficiency of existing generating units at the facility, in megawatt hours.

eE,R means the efficiency of electricity generation within the facility during the NGER reporting year, worked out as follows:

 (a) work out the quantity of electricity generated within the facility from existing generating units during the NGER reporting year, in gigajoules;

 (b) divide that quantity by the quantity of fuel consumed by the facility in generating that electricity, in gigajoules.

eE,B means the efficiency of electricity generation within the facility during the baseline year, worked out as follows:

 (a) work out the quantity of electricity generated within the facility from existing generating units during the baseline year, in gigajoules;

 (b) divide that quantity by the quantity of fuel consumed by the facility in generating that electricity, in gigajoules.

QExist,r means the quantity of electricity generated using existing generating units at the facility and exported from the facility during the NGER reporting year, in megawatt hours, measured in accordance with the applicable monitoring requirements for the electricity.

 (2) The quantity of additional electricity exported from the facility during the NGER reporting year as a result of project abatement activities that improve the thermal efficiency of existing generating units at the facility is taken to be zero if:

 (a) the amount worked out under subsection (1) for an NGER reporting year is less than zero; or

 (b) the value of parameter eE,B is zero.

Subdivision BElectricity abatement adjustment B

50  Summary

Electricity abatement adjustment B for a facility is to be calculated under this Subdivision if electricity generated using new generating units at the facility is exported from the facility during an NGER reporting year (whether or not electricity is a production variable for the facility).

51  Application of Subdivision

  This Subdivision applies to a facility for an NGER reporting year if electricity generated using new generating units at the facility is exported from the facility during the NGER reporting year (whether or not electricity is a production variable for the facility).

52  Calculation of electricity abatement adjustment B

 (1) Electricity abatement adjustment B for a facility during an NGER reporting year, in tonnes CO2e, is worked out using the formula (equation 20):

where:

AR means electricity abatement adjustment B, in tonnes CO2e.

EFElec means:

 (a) for electricity exported to an electricity grid that is a grid in relation to which the NGA Factors document in force on the declaration day includes an emissions factor—that factor, in kilograms CO2e per kilowatt hour; or

 (b) for electricity exported otherwise than in paragraph (a) (whether to a grid or not):

 (i) if the receiver of the electricity is able to provide an emissions factor that reflects the emissions intensity of the displaced electricity (worked out in accordance with subsection (3)) and is applicable on the declaration day—that factor, in kilograms CO2e per kilowatt hour; or

 (ii) otherwise—the emissions factor, in kilograms CO2e per kilowatt hour, for offgrid electricity included in the NGA Factors document in force on the declaration day.

INew means the emissions intensity of electricity generated using new generating units at the facility and exported from the facility during the NGER reporting year, in tonnes CO2e per megawatt hour of electricity exported, worked out using equation 21.

QNew,net means the net quantity of electricity generated using new generating units at the facility and exported from the facility during the NGER reporting year, in megawatt hours, worked out using equation 22.

MLFr means the marginal loss factor for the facility for the NGER reporting year, which is:

 (a) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a distribution network—taken to be 1; or

 (b) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a transmission network—the relevant factor published by the Australian Energy Market Operator Limited (ACN 072 010 327) that is valid at the end of the NGER reporting year; or

 (c) if neither paragraph (a) nor (b) applies, and a relevant authority of the State or Territory in which the facility is located has determined a factor that is valid at the end of the NGER reporting year—the factor determined by the relevant authority; or

 (d) in any other case—taken to be 1.

 (2) For the definition of EFElec in subsection (1), displaced electricity is electricity that would have been produced for the receiver if the electricity had not instead been produced by the facility.

 (3) For subparagraph (b)(i) of the definition of EFElec in subsection (1), the emissions factor must:

 (a) be worked out on a sentout basis; and

 (b) be worked out using a measurement or estimation approach that is consistent with the NGER (Measurement) Determination; and

 (c) if the displaced electricity would have been produced from more than one source—reflect the weighted average of the emissions intensity, applicable on the declaration day, of all the sources.

53  Emissions intensity of electricity generated using new generating units and exported from a facility

  The emissions intensity of electricity generated using new generating units at a facility and exported from the facility during an NGER reporting year, in tonnes CO2e per megawatt hour of electricity exported, is worked out using the formula (equation 21):

where:

INew means the emissions intensity of electricity generated using new generating units at the facility and exported from the facility, in tonnes CO2e per megawatt hour of electricity exported.

ENew means the emissions apportioned to electricity generated using new generating units at the facility and exported from the facility during the NGER reporting year, in tonnes CO2e, worked out in accordance with section 59.

QNew means the quantity of electricity generated using new generating units at the facility and exported from the facility during the NGER reporting year, in megawatt hours, measured in accordance with the applicable monitoring requirements for the electricity.

MLFr means the marginal loss factor for the facility for the NGER reporting year, which is:

 (a) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a distribution network—taken to be 1; or

 (b) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a transmission network—the relevant factor published by the Australian Energy Market Operator Limited (ACN 072 010 327) that is valid at the end of the NGER reporting year; or

 (c) if neither paragraph (a) nor (b) applies, and a relevant authority of the State or Territory in which the facility is located has determined a factor that is valid at the end of the NGER reporting year—the factor determined by the relevant authority; or

 (d) in any other case—taken to be 1.

54  Electricity generated using new generating units and exported from a facility

 (1) Subject to subsection (2), the net quantity of electricity generated using new generating units at a facility and exported from the facility during an NGER reporting year, in megawatt hours, is worked out using the formula (equation 22):

where:

QNew,net means the net quantity of electricity generated using new generating units at the facility and exported from the facility, in megawatt hours.

QR means the quantity of electricity exported from the facility during the NGER reporting year, in megawatt hours, measured in accordance with the applicable monitoring requirements for the electricity.

QExist,r means the quantity of electricity generated using existing generating units at the facility and exported from the facility during the NGER reporting year, in megawatt hours, measured in accordance with the applicable monitoring requirements for the electricity.

QRep means the quantity of electricity generated using replaced generating units at the facility and exported from the facility during the baseline year, in megawatt hours, worked out using production variable data.

 (2) If the amount worked out under subsection (1) for the NGER reporting year is less than zero, the net quantity of electricity generated using new generating units at the facility and exported from the facility during the NGER reporting year is taken to be zero.

Division 8General calculations relating to electricity

55  Baseline emissions intensity of electricity generated using existing generating units and exported from a facility

 (1) The baseline emissions intensity of electricity generated using existing generating units at a facility and exported from the facility during the baseline year, in tonnes CO2e per megawatt hour of electricity exported, is worked out using the formula (equation 23):

where:

IExist,b means the baseline emissions intensity of electricity generated using existing generating units at the facility and exported from the facility, in tonnes CO2e per megawatt hour of electricity exported.

EExist,b means the baseline NGER emissions attributable to electricity generated using existing generating units at the facility and exported from the facility during the baseline year, in tonnes CO2e, worked out in accordance with section 35 as that section applies for the purposes of this definition (see subsection (2)).

QExist,b means the quantity of electricity generated using existing generating units at the facility and exported from the facility during the baseline year, in megawatt hours, worked out using production variable data.

MLFb means the marginal loss factor for the facility for the NGER reporting year, which is:

 (a) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a distribution network—taken to be 1; or

 (b) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a transmission network—the relevant factor published by the Australian Energy Market Operator Limited (ACN 072 010 327) that is valid at the end of the NGER reporting year; or

 (c) if neither paragraph (a) nor (b) applies, and a relevant authority of the State or Territory in which the facility is located has determined a factor that is valid at the end of the NGER reporting year—the factor determined by the relevant authority; or

 (d) in any other case—taken to be 1.

 (2) For the purposes of the definition of EExist,b in subsection (1), section 35 applies as if:

 (a) electricity generated using existing generating units at the facility and exported from the facility; and

 (b) electricity generated using replaced generating units at the facility and exported from the facility;

were 2 separate production variables for the facility.

56  Emissions intensity of electricity generated using existing generating units and exported from a facility

  The emissions intensity of electricity generated using existing generating units at a facility and exported from the facility during an NGER reporting year, in tonnes CO2e per megawatt hour of electricity exported, is worked out using the formula (equation 24):

where:

IExist,r means the emissions intensity of electricity generated using existing generating units at the facility and exported from the facility, in tonnes CO2e per megawatt hour of electricity exported.

EExist,r means the emissions apportioned to electricity generated using existing generating units at the facility and exported from the facility during the NGER reporting year, in tonnes CO2e, worked out in accordance with section 59.

QExist,r means the quantity of electricity generated using existing generating units at the facility and exported from the facility during the baseline year, in megawatt hours, measured in accordance with the applicable monitoring requirements for the electricity.

MLFr means the marginal loss factor for the facility for the NGER reporting year, which is:

 (a) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a distribution network—taken to be 1; or

 (b) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a transmission network—the relevant factor published by the Australian Energy Market Operator Limited (ACN 072 010 327) that is valid at the end of the NGER reporting year; or

 (c) if neither paragraph (a) nor (b) applies, and a relevant authority of the State or Territory in which the facility is located has determined a factor that is valid at the end of the NGER reporting year—the factor determined by the relevant authority; or

 (d) in any other case—taken to be 1.

57  Emissions intensity of electricity generated using replaced generating units and exported from a facility

 (1) The emissions intensity of electricity generated using replaced generating units at a facility and exported from the facility during the baseline year, in tonnes CO2e per megawatt hour of electricity exported, is worked out using the formula (equation 25):

where:

IRep means the emissions intensity of electricity generated using replaced generating units at the facility and exported from the facility during the baseline year, in tonnes CO2e per megawatt hour of electricity exported.

ERep means the baseline NGER emissions attributable to electricity generated using replaced generating units at the facility and exported from the facility during the baseline year, in tonnes CO2e, worked out in accordance with section 35 as that section applies for the purposes of this definition (see subsection (2)).

QRep means the quantity of electricity generated using replaced generating units at the facility and exported from the facility during the baseline year, in megawatt hours, worked out using production variable data.

MLFb means the marginal loss factor for the facility for the NGER reporting year, which is:

 (a) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a distribution network—taken to be 1; or

 (b) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a transmission network—the relevant factor published by the Australian Energy Market Operator Limited (ACN 072 010 327) that is valid at the end of the NGER reporting year; or

 (c) if neither paragraph (a) nor (b) applies, and a relevant authority of the State or Territory in which the facility is located has determined a factor that is valid at the end of the NGER reporting year—the factor determined by the relevant authority; or

 (d) in any other case—taken to be 1.

 (2) For the purposes of the definition of ERep in subsection (1), section 35 applies as if:

 (a) electricity generated using existing generating units at the facility and exported from the facility; and

 (b) electricity generated using replaced generating units at the facility and exported from the facility;

were 2 separate production variables for the facility.

58  Total emissions from exported electricity

  The total emissions from electricity exported from a facility during an NGER reporting year, in tonnes CO2e, is worked out using the formula (equation 26):

where:

EElec,r means the total emissions from electricity exported from the facility during the NGER reporting year, in tonnes CO2e.

IExist,r means the emissions intensity of electricity generated using existing generating units at the facility and exported from the facility during the NGER reporting year, in tonnes CO2e per megawatt hour of electricity exported, worked out using equation 24.

QExist,r means the quantity of electricity generated using existing generating units at the facility and exported from the facility during the NGER reporting year, in megawatt hours, measured in accordance with the applicable monitoring requirements for the electricity.

MLFr means the marginal loss factor for the facility for the NGER reporting year, which is:

 (a) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a distribution network—taken to be 1; or

 (b) if, during the NGER reporting year, electricity is exported from the facility to the national electricity market and the facility is directly connected to a transmission network—the relevant factor published by the Australian Energy Market Operator Limited (ACN 072 010 327) that is valid at the end of the NGER reporting year; or

 (c) if neither paragraph (a) nor (b) applies, and a relevant authority of the State or Territory in which the facility is located has determined a factor that is valid at the end of the NGER reporting year—the factor determined by the relevant authority; or

 (d) in any other case—taken to be 1.

ENew means the emissions apportioned to electricity generated using new generating units at the facility and exported from the facility during the NGER reporting year, in tonnes CO2e, worked out in accordance with section 59.

59  Emissions apportioned to electricity generated using new or existing generating units and exported from a facility

 (1) The emissions apportioned to electricity generated using new generating units, or existing generating units, (the relevant units) at a facility and exported from the facility during an NGER reporting year (the relevant NGER reporting year), in tonnes CO2e, are worked out as follows:

 (a) work out the total emissions for the facility during the relevant NGER reporting year, in tonnes CO2e, using equation 9 as it applies for the purposes of this paragraph (see subsection (2));

 (b) apportion those emissions to electricity generated using the relevant units at the facility and exported from the facility during the relevant NGER reporting year, using an apportioning metric determined by the project proponent in accordance with the requirements set out in subsection (3).

 (2) For the purposes of paragraph (1)(a), equation 9 applies as if:

 (a) a reference to the “total baseline NGER emissions” for a facility were a reference to the total emissions for the facility; and

 (b) a reference to an “NGER reporting year” were a reference to the relevant NGER reporting year.

 (3) For the purposes of paragraph (1)(b), the requirements are as follows:

 (a) the apportioning metric must be determined using an approach that:

 (i) includes any material emissions source associated with the electricity generated using the relevant units and exported from the facility during the relevant NGER reporting year; and

 (ii) if the emissions source is associated with electricity generated using shared equipment and exported from the facility during the relevant NGER reporting year—apportions emissions from that source between electricity generated using the relevant units; and

 (iii) if the relevant units include a CHP plant at the facility—apportions emissions to the electricity generated using the relevant units and exported from the facility during the relevant NGER reporting year using equation 27; and

 (iv) measures and apportions emissions in a manner that is consistent with the NGER (Measurement) Determination; and

 (v) reasonably represents the actual emissions attributable to the electricity generated using the relevant units and exported from the facility during the relevant NGER reporting year;

 (b) the apportioning metric must not result in the emissions intensity of the electricity generated using the relevant units and exported from the facility during the relevant NGER reporting year being less than an amount calculated by dividing:

 (i) the emissions from fuel combusted in order for the relevant units to generate the electricity exported from the facility during the relevant NGER reporting year; by

 (ii) the quantity of electricity generated using the relevant units and exported from the facility during the relevant NGER reporting year.

60  Emissions apportioned to electricity generated by a CHP plant

 (1) Subject to subsections (2) and (3), the emissions apportioned to electricity generated by a CHP plant during an NGER reporting year, in tonnes CO2e, are worked out using the formula (equation 27):

where:

EE,p means the emissions apportioned to electricity generated by CHP plant p, in tonnes CO2e.

QE,p means the quantity of electricity generated by CHP plant p during the NGER reporting year, in megawatt hours, worked out in accordance with section 6.2 of the NGER (Measurement) Determination.

FMWh→GJ means 3.6, being the factor to convert megawatt hours to gigajoules.

eE,p means the thermal efficiency of electricity generation by CHP plant p during the NGER reporting year, worked out in accordance with section 62.

QH,p means the quantity of heat generated by CHP plant p during the NGER reporting year, in gigajoules, worked out using equation 28.

eH,p means the thermal efficiency of heat generation by CHP plant p during the NGER reporting year, worked out in accordance with section 62.

QC,p means the quantity of cooling generated by CHP plant p during the NGER reporting year, in gigajoules, worked out using equation 29.

eC,p means the thermal efficiency of cooling generation by CHP plant p during the NGER reporting year, worked out in accordance with section 62.

ET,p means the total emissions from CHP plant p during the NGER reporting year, worked out in accordance with Chapter 2 of the NGER (Measurement) Determination.

 (2) If the value of parameter QH,p is zero, a term in equation 27 that includes that parameter should be excluded from the equation.

 (3) If the value of parameter QC,p is zero, a term in equation 27 that includes that parameter should be excluded from the equation.

61  Quantity of heat and cooling generated

Quantity of heat

 (1) The quantity of heat generated by a CHP plant during an NGER reporting year, in gigajoules, is worked out using the formula (equation 28):

where:

QH,p means the quantity of heat generated by CHP plant p, in gigajoules.

mSO means the mass of the steam produced by the boiler, in kilograms.

hSO means the enthalpy of the steam produced by the boiler, in kilojoules per kilogram.

mSI means the mass of the boiler feedwater, in kilograms.

hSI means the enthalpy of the boiler feedwater, in kilojoules per kilogram.

Quantity of cooling

 (2) The quantity of cooling generated by a CHP plant during an NGER reporting year, in gigajoules, is worked out using the formula (equation 29):

where:

QC,p means the quantity of cooling generated by CHP plant p, in gigajoules.

mWI means the mass of the return water that goes into the absorption chiller of the CHP plant, in kilograms.

hWI means the enthalpy of the return water that goes into the absorption chiller, in kilojoules per kilogram.

mWO means the mass of the cool water outflow from the absorption chiller, in kilograms.

hWO means the enthalpy of the cool water outflow from the absorption chiller, in kilojoules per kilogram.

Enthalpy values

 (3) For the purposes of equations 28 and 29, the enthalpy values used must correspond to the values for the appropriate phase (such as saturated liquid or superheated vapour) for the measured temperature and pressure of the water (or other refrigerant used) in the CHP plant.

62  Thermal efficiency of electricity, heat and cooling generation

 (1) The thermal efficiencies of electricity, heat or cooling generation (as applicable) by a CHP plant during an NGER reporting year are worked out using an approach that is consistent with the efficiency method described in the Allocation of Emissions from a CHP Plant Guide.

 (2) In this section:

Allocation of Emissions from a CHP Plant Guide means the document entitled “Allocation of GHG Emissions from a Combined Heat and Power (CHP) Plant, Guide to calculation worksheets”, version 1, published by the World Resources Institute and the World Business Council for Sustainable Development in September 2006.

Note: The Allocation of Emissions from a CHP Plant Guide could in 2015 be viewed on the Greenhouse Gas Protocol website (http://www.ghgprotocol.org).

Part 5Reporting, record keeping and monitoring requirements

Division 1Offsets report requirements

Subdivision ARequirements relating to timing

63  Operation of this Subdivision

  For subparagraph 76(4)(e)(ii) of the Act, this Subdivision specifies the period within which an offsets report about a facilities project that is an eligible offsets project must be given to the Regulator.

64  Timing for final offsets report

 (1) This section applies if the crediting period for a facilities project ends part way through an NGER reporting year (the final NGER reporting year).

 (2) The offsets report about the project for the reporting period that includes the final NGER reporting year must be given to the Regulator within 6 months after the end of the final NGER reporting year.

Subdivision BInformation that must be included in an offsets report

65  Operation of this Subdivision

  For paragraph 106(3)(a) of the Act, this Subdivision sets out information that must be included in an offsets report about a facilities project that is an eligible offsets project.

66  Information about new production variables

 (1) The offsets report about a facilities project for a reporting period must include a description of any output variable that, in accordance with subsection 16(3), is chosen with one or more other similar output variables to be a single production variable for a facility to which the project relates.

 (2) The description must include details of the key substance of value in the output variable (unless the output variable is electricity, heat, cooling or a multicomponent, elaborately transformed product).

67  Information about biomass used to produce energy, and imported offgrid electricity, heat and cooling generated from biomass

 (1) This section applies to an offsets report about a facilities project for a reporting period if:

 (a) biomass is used during the reporting period to produce energy at a facility to which the project relates; or

 (b) a facility to which the project relates imported offgrid electricity, or heat or cooling, generated from biomass for use at the facility during the reporting period.

 (2) The offsets report must include a declaration that the biomass used during the reporting period is an eligible renewable energy source.

Note: Biomass used to produce energy at a facility to which a facilities project relates, or biomass used to generate offgrid electricity, or heat or cooling, imported by a facility to which a facilities project relates, must be an eligible renewable energy source (see paragraphs 15(2)(h) to (j)).

68  Information about greenhouse gas emissions, energy production and energy consumption

 (1) This section applies to an offsets report about a facilities project for a reporting period if an NGER report about the operation of a facility to which the project relates during an NGER reporting year in the reporting period:

 (a) is not required to be provided to the Regulator; or

 (b) is not required to include information about the greenhouse gas emissions, energy production or energy consumption from the operation of the facility because a threshold in section 13 of the NGER Act is not met.

 (2) The offsets report must include:

 (a) the same information about the greenhouse gas emissions, energy production and energy consumption from the operation of the facility during the NGER reporting year as would be required to be included in an NGER report about the operation of the facility if:

 (i) an NGER report were required to be provided to the Regulator; and

 (ii) a threshold in section 13 of the NGER Act were met; and

 (b) any other information about the greenhouse gas emissions, energy production or energy consumption from the operation of the facility during the NGER reporting year notified in writing by the Regulator.

69  Information about facilities

  The offsets report about a facilities project for a reporting period must, for each facility to which the project relates, set out the following:

 (a) the name of the facility;

 (b) the total facility abatement for the facility, in tonnes CO2e, worked out using equation 3 for each NGER reporting year that ends during the reporting period;

 (c) whether a statement of activity intent for the facility, that is signed by the chief financial officer of the person that has operational control over the facility, has been given to the Regulator as referred to in subsection 26(3).

70  Determination of certain parameters

  If section 81 applies for the purpose of working out the carbon dioxide equivalent net abatement amount for a facilities project for a reporting period, the offsets report about the project for the reporting period must include the following information:

 (a) the name of the parameter that the project proponent failed to monitor;

 (b) the start and end dates of each nonmonitored period;

 (c) if the value of the parameter was determined under subsection 81(3)—the value of the parameter and how that value was estimated;

 (d) the reasons why the project proponent failed to monitor the parameter as required by the monitoring requirements.

Division 2Notification requirements

71  Operation of this Division

  For paragraph 106(3)(b) of the Act, this Division sets out notification requirements for a facilities project that is an eligible offsets project.

72  Notification requirements

 (1) The project proponent for a facilities project must notify the Regulator, in writing, if an NGER report about the operation of a facility to which the project relates during an NGER reporting year in a reporting period for the project:

 (a) will not be required to be provided to the Regulator; or

 (b) will not be required to include information about the greenhouse gas emissions, energy production and energy consumption from the operation of the facility because a threshold in section 13 of the NGER Act will not be met.

 (2) The project proponent must notify the Regulator of a matter mentioned in subsection (1) within 60 days after the project proponent becomes aware of the matter.

Division 3Recordkeeping requirements

73  Operation of this Division

  For paragraph 106(3)(c) of the Act, this Division sets out recordkeeping requirements for a facilities project that is an eligible offsets project.

74  Recordkeeping requirements

  If, as part of a facilities project, equipment or other components at a facility are:

 (a) removed from the facility; and

 (b) disposed of;

the project proponent must keep a record of evidence that the equipment was disposed of in accordance with relevant Commonwealth, State or Territory legislative requirements.

Division 4Monitoring requirements

75  Operation of this Division

  For paragraph 106(3)(d) of the Act, this Division sets out requirements to monitor a facilities project that is an eligible offsets project.

76  Requirement to monitor greenhouse gas emissions, energy production and energy consumption

  The project proponent for a facilities project must monitor the greenhouse gas emissions, energy production and energy consumption (the relevant matters) from the operation of each facility to which the project relates in such a manner as will enable accurate reports about the relevant matters to be provided to the Regulator in accordance with:

 (a) the NGER Act; or

 (b) section 68.

77  Requirement to monitor abatement activities implemented

 (1) This section applies if:

 (a) after the end of the baseline period for a facilities project, an abatement activity is implemented at a facility to which the project relates; and

 (b) the project proponent identifies the abatement activity as potentially having a material effect on the project abatement of the project for an NGER reporting year.

 (2) The project proponent must monitor the abatement activity in such a manner as will enable an assessment to be made as to whether or not the activity has had a material effect on the project abatement of the project for the NGER reporting year.

78  Requirement to monitor changes relating to operation of a facility

 (1) This section applies if:

 (a) after the end of the baseline period for a facilities project, a change is implemented at a facility to which the project relates; and

 (b) the project proponent identifies that, as a result of the change, the facility has potentially undergone a significant expansion, or a significant output variable change, during an NGER reporting year.

 (2) The project proponent must monitor the change in such a manner as will enable an assessment to be made as to whether or not the facility has undergone a significant expansion, or a significant output variable change, during the NGER reporting year.

79  Requirement to monitor production variables etc.

 (1) The project proponent for a facilities project must monitor the quantity and purity of each production variable that is produced or processed by a facility to which the project relates in accordance with the following requirements:

 (a) each variable must be monitored in the same manner as the variable was monitored at the facility during the project’s baseline period;

 (b) the quantity and purity of each variable produced or processed must be measured at a time that is as close as possible to when the variable enters, or leaves, the production or processing process.

 (2) If a production variable consists of similar output variables, similar inputs or similar intermediate products, subsection (1) applies as if each similar output variable, similar input or similar intermediate product were a separate production variable.

 (3) If an input used by, or an output produced by, a facility to which the project relates is not a production variable for the facility, the project proponent must monitor the purity of the input or output in accordance with the following instructions:

 (a) the input or output must be monitored in the same manner as the input or output was monitored at the facility during the project’s baseline period;

 (b) the purity of the input or output must be measured at a time that is as close as possible to when the variable enters, or leaves, the production or processing process.

 (4) This section has effect subject to section 80.

80  Requirement to monitor exported electricity

  The project proponent for a facilities project must monitor any electricity that is exported from a facility to which the project relates in accordance with the following requirements:

 (a) if all generating units at the facility have the same designated metering point, the quantity of electricity generated at the facility and exported from the facility must be measured:

 (i) in megawatt hours, at the designated metering point; and

 (ii) at any time when the facility is connected to the national electricity market, using NEM standard metering;

 (b) if not all generating units at the facility have the same designated metering point, the quantity of electricity generated by a generating unit at the facility and exported from the facility must be measured:

 (i) in megawatt hours, at the generating unit’s designated metering point; and

 (ii) at any time when the generating unit is connected to the national electricity market, using NEM standard metering;

 (c) at any time when a generating unit at the facility is not connected to the national electricity market, the quantity of electricity generated by the generating unit and exported from the facility must be measured using metering that allows the Regulator to determine the quantity of the exported electricity;

 (d) the quantity of electricity generated by particular generating units at the facility must be measured using equipment that allows the total quantity of exported electricity to be apportioned to each particular generating unit.

81  Consequences of not meeting certain monitoring requirements

 (1) This section applies for the purpose of working out the carbon dioxide equivalent net abatement amount for a facilities project for a reporting period if, during one or more periods (a nonmonitored period) in the reporting period, a project proponent for a facilities project fails to monitor a production variable, an input, an output or electricity (a parameter) as required by section 79 or 80.

 (2) If the number of days in all the nonmonitored periods in the reporting period is more than 20% of the number of days in the reporting period, the project abatement for each NGER reporting year in the reporting period is taken to be zero.

 (3) If the number of days in all the nonmonitored periods in the reporting period is equal to or less than 20% of the number of days in the reporting period, the project proponent must make a conservative estimate of the value of the parameter for each nonmonitored period having regard to:

 (a) any relevant measurement or estimation approaches or requirements that apply to the parameter under the NGER (Measurement) Determination; and

 (b) any relevant historical data for the project; and

 (c) any other data for the project that relates to the parameter; and

 (d) any other matter the project proponent considers relevant.

 (4) To avoid doubt, this section does not prevent the Regulator from taking action under the Act, or regulations or rules made under the Act, in relation to the project proponent’s failure to monitor a parameter as required by the monitoring requirements.

Note: Examples of action that may be taken include the following:

(a) if the failure constitutes a breach of a civil penalty provision in section 194 of the Act (which deals with project monitoring requirements), the Regulator may apply for a civil penalty order in respect of the breach;

(b) if false or misleading information was given to the Regulator in relation to the failure, the Regulator may revoke the project’s section 27 declaration under regulations or rules made for the purposes of section 38 of the Act;

(c) if the giving of false or misleading information in relation to the failure led to the issue of Australian carbon credit units, the Regulator may require all or some of those units to be relinquished under section 88 of the Act.

Part 6Dividing a facilities project

 

82  Operation of this Part

  For subsection 77A(2) of the Act, this Part sets out requirements for dividing a facilities project that is an eligible offsets project.

83  Requirements for division of project

 (1) A facilities project may only be divided into parts if the project relates to 2 or more facilities.

 (2) If a facilities project is divided into parts:

 (a) each part must consist of at least one facility to which the project relates; and

 (b) a facility to which the project relates must be included in one part only.

Schedule 1Industry average emissions intensities

Note: See the definitions of IS1,n and IEI,n in subsection 37(4).

 

 

1  Industry average emissions intensities

  The scope 1 emissions intensity and the electricity intensity of a production variable produced from an activity undertaken at a facility site are set out in the following table.

Note: Petroleum refining (see item 43 of the table) and the production of high purity ethanol (see item 62 of the table) are measured in kilolitres. All other activities are measured in tonnes.

 

Industry average emissions intensity

 

Column 1

Column 2

Column 3

Column 4

Item

Activity

Production variable

Scope 1 emissions intensity (tonnes CO2e per tonne or kilolitre of production)

Electricity intensity (megawatts per tonne or kilolitre of production)

1

Production of bulk flat glass

Bulk flat glass of saleable quality

0.841

0.276

2

Production of methanol

100% equivalent methanol

0.389

0.490

3

Production of carbon black

Dry pelletised carbon black of saleable quality

2.66

0.514

4

Production of silicon

Silicon of saleable quality

1.42

11.7

5

Smelting zinc

Zinc of saleable quality

0.120

4.25

6

Manufacture of newsprint

Air dried coated or uncoated newsprint of saleable quality

0.496

0.697

7

Manufacture of newsprint

Bone dried equivalent pulp from either or both of the following:

(a) woodchips;

(b) sawdust

0.0595

2.48

8

Manufacture of newsprint

Bone dried equivalent pulp from recovered paper

0.0404

0.431

9

Aluminium smelting

Primary aluminium (A1)

2.00

15.0

10

Production of magnesia

Dry caustic calcined magnesia of saleable quality

1.44

0.0757

11

Production of magnesia

Dry deadburned magnesia of saleable quality

0.103

0.202

12

Production of magnesia

Dry electrofused magnesia of saleable quality

0.0751

2.45

13

Dry pulp manufacturing

Dry pulp of saleable quality

0.873

0.404

14

Dry pulp manufacturing

Air dried equivalent pulp

0.130

0.448

15

Cartonboard manufacturing

Cartonboard of saleable quality

0.866

0.776

16

Cartonboard manufacturing

Air dried equivalent pulp from either or both of the following:

(a) woodchips;

(b) sawdust

0.130

0.448

17

Packaging and industrial paper manufacturing

Packaging and industrial paper of saleable quality

0.338

0.554

18

Packaging and industrial paper manufacturing

Air dried equivalent pulp from either or both of the following:

(a) woodchips;

(b) sawdust

0.130

0.448

19

Printing and writing paper manufacturing

Printing and writing paper of saleable quality

0.617

0.880

20

Printing and writing paper manufacturing

Air dried equivalent pulp from either or both of woodchips and sawdust

0.130

0.448

21

Printing and writing paper manufacturing

Air dried equivalent pulp from recovered paper

0.0

0.824

22

Alumina refining

Alumina of saleable quality

0.630

0.228

23

Manufacture of carbon steel from cold ferrous feed

Continuously cast carbon steel products and ingots of carbon steel of saleable quality

0.0836

0.532

24

Manufacture of carbon steel from cold ferrous feed

Long products of hotrolled carbon steel of saleable quality

0.0756

0.133

25

Manufacture of carbon steel from cold ferrous feed

Flat products of hotrolled carbon steel of saleable quality

0.0317

0.116

26

Production of clinker

Dry Portland cement clinker of saleable quality

0.886

0.0709

27

Production of copper

Copper cathode produced from copper compounds of saleable quality

0.480

1.69

28

Production of copper

Copper anode produced from copper compounds of saleable quality

0.422

1.31

29

Production of copper

Copper cathode produced from brought in copper anode of saleable quality

0.0573

0.387

30

Production of ethene (ethylene)

100% equivalent ethene (ethylene) of saleable quality

1.83

0.275

31

Production of fused alumina

Fused alumina of saleable quality

0.0138

2.03

32

Integrated iron and steel manufacturing

Dry iron ore sinter

0.227

0.0397

33

Integrated iron and steel manufacturing

Dry iron ore pellets

0.114

0.0742

34

Integrated iron and steel manufacturing

Dry coke oven coke

0.462

0.0397

35

Integrated iron and steel manufacturing

Dry lime

0.825

0.0405

36

Integrated iron and steel manufacturing

Continuously cast carbon steel products and ingots of carbon steel of saleable quality

1.56

0.145

37

Integrated iron and steel manufacturing

Long products of hotrolled carbon steel of saleable quality

0.0756

0.133

38

Integrated iron and steel manufacturing

Flat products of hotrolled carbon steel of saleable quality

0.0317

0.116

39

Production of lime

Dry lime of saleable quality

1.21

0.0476

40

Production of manganese

Manganese sinter of saleable quality

0.264

0.0300

41

Production of manganese

Ferromanganese alloy of saleable quality

1.42

2.61

42

Production of manganese

Silicomanganese alloy of saleable quality

1.85

4.31

43

Petroleum refining

Combined stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks

0.160

0.0421

44

Production of sodium carbonate (soda ash) and sodium bicarbonate

Combined light sodium carbonate, dense sodium carbonate and refined sodium bicarbonate of saleable quality

0.828

0.130

45

Production of synthetic rutile

Synthetic rutile of saleable quality

2.10

0.114

46

Production of ammonium nitrate

100% equivalent ammonium nitrate of saleable quality

2.10

0.114

47

Production of ammonia

100% equivalent anhydrous ammonia of saleable quality

1.79

0.224

48

Production of glass beads

Dry weight glass beads of saleable quality

1.75

0.400

49

Production of sodium silicate glass

Dry weight sodium silicate glass of saleable quality

0.622

0.0205

50

Production of polymer grade propene (polymer grade propylene)

100% equivalent dry sodium hydroxide

0.0732

2.67

51

Production of rolled aluminium

Coiled aluminium sheet of saleable quality

0.469

0.982

52

Production of chlorine gas and sodium hydroxide solution

100% equivalent dry sodium hydroxide

0.0732

2.67

53

Production of coke oven coke

Dry weight coke oven coke of saleable quality

0.775

0.0109

54

Production of fused zirconia

Fused zirconia of saleable quality

0.794

6.07

55

Production of dried distillers grains with solubles

Dried distillers grains with solubles of saleable quality that has a moisture content of equal to or less than 12% and a protein content of equal to or more than 20% (on a dry solids basis)

0.560

0.0785

56

Production of coal char

Dry weight coal char of saleable quality

0.680

0.120

57

Production of glass containers

Blown and pressed glass containers of saleable quality

0.495

0.308

58

Production of white titanium dioxide pigment

White titanium dioxide pigment of saleable quality

1.62

0.986

59

Integrated production of lead and zinc

Lead metal of saleable quality with a concentration of lead of at least 99.97%

1.12

0.355

60

Integrated production of lead and zinc

Lead metal of saleable quality with a concentration of lead of at least 99.5% but less than 99.97%

0.833

0.371

61

Integrated production of lead and zinc

100% equivalent zinc in fume

3.07

0.820

62

Production of high purity ethanol

100% equivalent ethanol

0.728

0.168

63

Tissue paper manufacturing

Uncoated tissue paper of saleable quality

0.646

1.67

64

Tissue paper manufacturing

Air dried equivalent pulp from either or both of woodchips and sawdust

0.130

0.448

65

Production of carbamide (urea)

100% equivalent carbamide of saleable quality

0.315

0.285

66

Production of polyethylene

Pelletised polyethylene of saleable quality

0.129

0.646

67

Production of iron ore pellets

Dry weight iron ore pellets of saleable quality

0.0745

0.0498

68

Production of liquefied natural gas

Liquefied natural gas

0.378

0.0640

69

Production of magnetite concentrate

100% equivalent iron contained in saleable magnetite concentrate

0.000323

0.0826

70

Production of ceramic floor and wall tiles

Ceramic floor and wall tiles of saleable quality

0.316

0.221

71

Manufacture of reconstituted woodbased panels

Raw reconstituted woodbased panel of saleable quality

0.0888

0.372

72

Production of hydrogen peroxide

100% equivalent hydrogen peroxide of saleable quality

0.928

0.858

73

Production of nickel

100% equivalent nickel contained in primary nickel products of saleable quality produced from nickel bearing inputs

13.2

9.29

74

Production of nickel

100% equivalent nickel contained in intermediate nickel products of saleable quality produced from nickel bearing inputs

6.80

6.45

75

Production of nickel

100% equivalent nickel contained in primary nickel products of saleable quality produced from nickel intermediate products

6.41

2.84

76

Production of nickel

100% equivalent cobalt contained in cobalt products of saleable quality

11.4

8.89

77

Production of helium

100% equivalent helium of saleable quality

0.0

36.5

78

Production of glass wool

Glass wool of saleable quality

0.497

1.78

79

Rendering of animal byproducts

Processed animal protein meal of saleable quality

0.440

0.248